Union Budget 2024-25 proposes to set up ₹1000 crore venture capital fund for space economy ‘five-fold in next decade’ | Current Affairs | Vision IAS
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Union Budget 2024-25 proposes to set up ₹1000 crore venture capital fund for space economy ‘five-fold in next decade’

Posted 26 Jul 2024

2 min read

Proposed Venture Capital Fund envisions to expand the space economy by 5 times in the next 10 years.

  • Venture Capital Fund invests in early-age startups with long term growth potential.

Indian Space Economy 

  • Present Indian space economy values around ₹6,700 crore and with a 2% share in global space economy in 2021.  
    • This share is expected to rise to 8% by 2030 and further to 15% by 2047.
  • Space Start-ups have increased to nearly 200 in 2024 from 1 in 2022. 
  • Investment in Indian Space Start-Ups increased to $124.7 Million in 2023.
  • Implementation of Indian Space Policy 2023 is expected to build $44 billion Indian space economy.

Key initiatives for growth of Space Economy

  • Indian National Space Promotion and Authorisation Centre (IN-SPACe) – a single window nodal agency to promote and authorize space activities.  
  • Space sector reform 2020 which opened the sector for private sector participation. 
  • Indian Space Policy and 100% FDI in some sub-sectors of space.
  • Rising private sector participation with startups such as Skyroot Aerospace (Vikram-S, Prarambh mission), Agnikul Cosmos (Dhanush - first private launchpad) etc.
  • Transfer of technology to private players by ISRO, NSIL/IN-SPACe. 
  • International collaborations such as NISAR programme and Artemis Accords. 

Challenges to Indian Space Economy

  • Increase in space debris pose significant challenges in space operations and require technological sophistication to avoid collisions.
  • Growing militarisation of space.
  • Disruption risks in global technology supply chains due to geopolitical tensions and concentration of resources
  • Absence of substantial domestic investor pool interested in space ventures. 
  • Tags :
  • Space
  • Indian Space Policy
  • Space Economy
  • SPACE
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