Industry commends budget for boosting India's global presence in space industry

New Delhi [India], July 24 (ANI): Union Finance Minister Nirmala Sitharaman announced an initiative aimed at transforming India's space sector in Union Budget 2024-25 on Tuesday. The government will establish a Rs 1,000 crore venture capital fund dedicated to expanding the country's space economy, to increase its size fivefold over the next decade.
The venture capital fund is expected to attract additional investments from private sectors, further stimulating growth in the space economy. This move aligns with the broader objective of boosting India's global presence in the space industry.
Siddharth Mody, Partner at JSA Advocates and Solicitors, lauded the initiative, noting its potential impact on the industry, said, "The announcement of a Rs 1,000 crore venture capital fund dedicated to the space economy marks a significant commitment by the government to advance India's burgeoning space sector. With the space economy expected to grow from USD 8.4 billion to USD 44 billion by 2033, this initiative is a timely boost."
He added, "The fund will not only help mobilize additional capital but also create a more conducive environment for early-stage space tech companies to thrive. By supporting private sector-led initiatives, India is well-positioned to increase its share of the global space economy and drive significant advancements in satellite manufacturing, launch vehicle production, and satellite services. It's a solid step towards achieving our target of a 10 per cent share in the global space economy by 2030 and a 15 per cent share by 2047."
The newly announced venture capital fund is set to play a pivotal role in propelling India's space economy from its current valuation of USD 8.4 billion to an impressive USD 44 billion by 2033.
Sanjay Kumar, CEO, Geospatial World, "Geospatial plays an indispensable role across all these pillars of citizen participation, social development, and engines of economic transformation. The budgetary outlay has enhanced the role and scope of geospatial in India's developmental journey. Geospatial and its convergence with next-gen technologies will be critical towards achieving the milestone of Viksit Bharat by 2047."
He added, "Through investment, hand-holding, market access, state-of-the-art technology development, and start up incubation, we can foster a conducive New Space ecosystem that will turn India into a global innovation and R&D hub for NewSpace, catapulting the country to greater heights, and diversifying our space offerings."
The initiative is designed to provide critical funding for early-stage space technology companies and startups, thereby nurturing a thriving ecosystem for space exploration, satellite manufacturing, launch vehicle production, and satellite services.
Saurabh Rai, CEO of Arahas, highlights transformative opportunities from Union Budget 2024-25 for space economy, saying, "The Indian government's commitment to the space economy is evident with the proposal to set up a venture capital fund of Rs 1,000 crore. This fund is designed to support private sector-driven research and innovation at a commercial scale."
He added, "The establishment of a venture capital fund for the space economy opens new avenues for collaboration and innovation. Arahas is excited about the possibilities this creates for developing advanced space technologies and contributing to India's growing presence in space exploration."
By facilitating access to capital and creating a supportive environment for private sector involvement, the fund aims to accelerate advancements in these high-tech areas. (ANI)