Union Cabinet Approves INR 1,000 Cr Space Tech Venture Fund to Propel Space Startup Ecosystem With an estimated INR 150 crore set for FY 2025-26, followed by INR 250 crore annually for the subsequent three years and INR 100 crore in FY 2029-30, the fund will fuel around 40 startups, advancing space technologies critical to national priorities.
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The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an INR 1,000-crore venture capital fund to bolster India's space tech sector, managed under IN-SPACe.
Announced by Finance Minister Nirmala Sitharaman in the 2024–25 Union Budget, this fund aims to foster innovation and drive economic growth within the space sector. The investment period spans five years, with an annual deployment target of INR 150-200 crore.
With an estimated INR 150 crore set for FY 2025-26, followed by INR 250 crore annually for the subsequent three years and INR 100 crore in FY 2029-30, the fund will fuel around 40 startups, advancing space technologies critical to national priorities.
Each investment will range from INR 10 crore to INR 60 crore, depending on a company's growth stage and potential impact on national space capabilities. Growth-stage startups could secure INR 10-30 crore, while those in late growth stages may receive INR 30-60 crore.
Designed to support startups across the space supply chain—upstream, midstream, and downstream—the fund is anticipated to enhance R&D, aid in scaling operations, and boost employment in the sector.
This strategic support signals India's commitment to solidifying its position in the global space arena, creating a dynamic ecosystem of homegrown space tech startups that contribute to India's technological and economic landscape.
