New Delhi: Apart from establishing a venture capital fund worth Rs 1,000 crore to boost India’s space sector, the Union Budget presented by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday has made an allocation of Rs 13,042.75 crore to ensure the country's growth in this critical sector.
“With our continued emphasis on expanding the space economy by five times in the next 10 years, a venture capital fund of Rs 1,000 crore will be set up,” Sitharaman said in the Lok Sabha.
Significantly, the allocation marks a notable rise from last year’s Rs 12,543.91 crore. Although it falls slightly short of the Rs 13,700.00 crore earmarked two years ago.
Talking on the increasing budget allocation in India’s space sector, Lt Gen AK Bhatt (Retd), Director General, Indian Space Association (ISpA) said that the Union budget’s vision to grow India’s space economy by fivefold in the next decade demonstrates the government's strong commitment to this sector.
“We previously advocated for increased financial incentives to support the burgeoning space startups in the country. The announcement of a Rs 1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain,” he said.
Additionally, the proposal for establishment of 12 industrial parks across India we hope will include the space sector as this will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks.
“These measures are pivotal for the growth and development of India's space ecosystem,” said Lt Gen Bhatt.
