Budget 2024: Centre Allocates ₹1000 Crore Venture Fund to Boost Space Economy ‘Five-Fold in Next Decade’
Union Finance Minister Nirmala Sitharaman announced the creation of a ₹1,000 crore venture capital fund in the Budget 2024 aimed at expanding India’s space economy fivefold over the next decade. This strategic move follows the government’s 2020 decision to open the space sector to private companies, which has resulted in over 200 space startups emerging in the industry.
India has set ambitious goals, including establishing the ‘Bharatiya Antariksha Station’ by 2035 and sending the first Indian to the Moon by 2040. The new venture capital fund is expected to stimulate private sector involvement in space activities, supporting both startups and established firms in advancing innovative space technologies.
Additionally, the creation of 12 industrial parks across India will significantly boost the space and satellite manufacturing industry, addressing longstanding calls for dedicated space parks.
Private Companies React
Several stakeholders, including the Indian Space Association (ISpA) and leaders from the Indian National Space Promotion and Authorization Center (IN-SPACe) and Pixxel Space, have welcomed the Budget 2024-25 provisions. They note that these measures will significantly enhance the sector’s growth and development.
Pawan Goenka, Chairperson of IN-SPACe, expressed that the introduction of a ₹1,000 crore dedicated venture fund will greatly benefit new entrepreneurs and non-government entities (NGEs) in the space sector. He emphasized enthusiasm for supporting the expansion of the space economy and fostering an environment conducive to the growth of NGEs.
Awais Ahmed, CEO of Bengaluru-based startup Pixxel Space, highlighted that the venture capital fund will offer essential financial support to innovative startups and companies, helping them scale their technologies and contribute to India’s space goals.
ISRO Chairman on Private Sector Participation in Space Activities
According to news agency PTI, in May, Indian Space Research Organisation (ISRO) Chairman S. Somanath highlighted the significant opportunity the Indian space industry presents for the private sector, marking it as a new area for growth and development. He mentioned that the union government envisions the space sector expanding to a $9 to $10 billion industry within the next 5 to 10 years, up from its current value of $2 billion.
Chandrayaan 3 and Aditya L1 Missions
In 2023, India achieved remarkable milestones with the successful soft landing of Chandrayaan-3 on the Moon’s South Pole and the launch of Aditya-L1, the country’s first solar mission. These accomplishments have solidified India’s position in the global space economy and energized the country’s private space sector.
India was the first nation to land the Chandrayaan-3 spacecraft on the Moon’s south pole. Named “Chandrayaan-3,” meaning “Mooncraft” in Sanskrit, this mission successfully touched down near the less-explored lunar south pole, following the unsuccessful Chandrayaan-2 mission in 2019.
The Aditya-L1 mission is designed to explore the Sun’s upper atmosphere, specifically the chromosphere and corona. Its goals include studying heating mechanisms, ionised plasma physics, coronal mass ejections, and solar flares.
Important Upcoming ISRO Space Missions
Gaganyaan 1 Human Spaceflight: The initial test flight of the Gaganyaan spacecraft, designed to carry three astronauts and includes capabilities for rendezvous and docking.
2024 NISAR Earth Observation: A collaborative project with NASA to launch a dual-frequency synthetic aperture radar satellite for remote sensing. This mission is notable for being the first satellite to use dual-band radar imaging.
Chandrayaan-4 Lunar Exploration: The fourth mission in the Chandrayaan series, aimed at lunar exploration. It is a sample-return mission featuring multiple modules to support various stages of the mission.
The Budget 2024 initiatives underscore India’s commitment to becoming a major player in the global space industry and reflect a comprehensive strategy to foster innovation, collaboration, and significant growth in the space economy.