On Thursday, the Union Cabinet approved the establishment of a Rs 1,000 crore venture capital fund for the space sector under the aegis of the Indian National Space Promotion and Authorization Center (IN-SPACe).
Union Information and Broadcasting Minister Ashwini Vaishnav gave this information on Thursday. It is noteworthy that the Government of India set up IN-SPACe to promote and monitor private sector participation in space activities as part of space sector reforms.
IN-SPACe proposed a Rs 1,000 crore venture capital fund to support the development of India’s space economy, currently valued at $8.4 billion, with a target to reach $44 billion by 2033. The government-backed fund will boost investor confidence, attract private capital and serve as the government’s commitment to pursue space reforms.
#WATCH | Delhi | Union Minister Ashwini Vaishnaw says, "The Union Cabinet today approved the setting up of Rs 1,000 crore Venture Capital Fund for promoting startups in the Space sector." pic.twitter.com/DJHeiOwIzS
— ANI (@ANI) October 24, 2024
It will serve as an alternative investment fund under SEBI regulations, providing early-stage equity to startups and enabling them for further private equity investment. In Space aims to boost employment in the Indian space sector by supporting startups in the upstream, midstream and downstream.
This will help expand businesses, invest in R&D and expand the workforce. Each investment can create hundreds of direct jobs in sectors such as engineering, software development, data analysis and manufacturing, as well as thousands of indirect jobs in supply chain, logistics and professional services. This will boost innovation and boost India’s global competitiveness in the space market.
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