BENGALURU: Space tech companies will now be able to secure the much-required early-stage capital, under the government’s new allocation in the Union Budget-24.
Finance Minister Nirmala Sitharaman on Tuesday announced that a venture capital fund of Rs 1,000 crore will be set up to fuel the growth of space economy by five times in the next 10 years. This comes after the Economic Survey 2023-24 highlighted India’s growing prowess in space. The move has been welcomed by space startups, venture capitalists and related industries. Experts said the allocation will work as a strong catalyst for startups in deeptech and space tech.
“The government’s announcement is a strong testament to the recognition that the space economy will be at the forefront of India’s ascent in the deep tech economy. This initiative underscores the success of ventures like Agnikul, Skyroot and provides significant momentum to their ambitious plans to launch a rocket a week and dominate the global nanosatellite delivery market,” Artha Venture Fund Managing Partner Anirudh A Damani said.
Meanwhile, Agnikul Cosmos Co-founder and CEO Srinath Ravichandran said this fund will help larger players emerge out of India’s space startup ecosystem. This also shows that India can contribute and have a larger stake on the global space economy. The FM also announced the Anusandhan National Research Fund for basic research and prototype development, which will offer startups a much-needed respite. “We will set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of 1 lakh crore in line,” she said.
Ajai Chowdhry, Co-Founder, HCL, and Chairman - Mission Governing Board, National Quantum Mission said the support for small nuclear reactors is commendable. “The abolishing of the Angel Tax will go a long way in bringing greater investments, making it a big win for startups. Similarly, there’s great support for MSMEs and an impressive job-linked incentive scheme,” he said.