New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has formally approved Rs 1,000 crore for a Venture Capital Fund to encourage NewSpace startups under the aegis of IN-SPACe, the single window clearing agency for authorising all space operations from Indian actors, both public and private, that is also tasked with supervising and promoting Indian activities in the space domain. The Rs 1,000 crore fund will be allocated over a period of five years, and ranges between Rs 150 and 250 crore every year, with a proposed breakup below by financial year.
| S.No.
|
Financial Year
|
Estimate (In Rs.Crores)
|
| I
|
2025-26
|
150.00
|
| 2
|
2026-27
|
250.00
|
| 3
|
2027-28
|
250.00
|
| 4
|
2028-29
|
250.00
|
| 5
|
2029-30
|
100,00
|
|
|
Total Envelope (VC)
|
1000.00 |
The fund is expected to support around 40 startups. There are planned equity investment ranges depending on how mature the technology and the company is. An early stage startup can get between Rs 10 and 30 crore while a late growth stage startup can get between Rs 30 and 60 crore. Being an active space actor is a capital heavy endeavour, with the fund expected to help retain innovative startups within the country. The fund is also designed to make the Indian space ecosystem globally competitive, and drive job creation. The government hopes to induce a multiplier effect and attract more funding for the startups, and build confidence among private investors.
India is depending on the private sector for its future ambitions
India plans to expand the space economy by five times over the next ten year, to reach $44 billion in 2033, starting from a current value of $8.4 billion. There are already 250 NewSpace startups in the country. The fund is expected to help business scale and invest in research and development. India aims to assemble its own space station by 2035, and land a human mission on the surface of the Moon by 2040. These ambitions will necessarily require the participation of the private sector through public-private partnerships.
