Government Launches ₹1,000 Crore Initiative for Space Sector Startups​

​Union Minister Jitendra Singh on Tuesday announced a ₹1,000 crore funding plan to infuse fresh funds into India’s burgeoning space Sector startups to help propel growth and global competitiveness of Indian space technology companies. ​

Government Initiative to Propel Space Startups

However, in the spirit of fostering the Indian space sector, the Indian government has launched a ₹1,000 crore funding scheme that will support startups in developing the space sector startups. In this the government wants to promote innovation and self-reliance in space technology. The plan is that SIDBI Venture Capital Limited (SVCL) will manage the fund and invest ₹10,000 crores over five years to provide desperately needed risk capital to emerging space enterprises. ​

Funding Details and Deployment Strategy

The funding scheme sets out a structured roll out of resources over five years:​

• 2025-26: ₹150 crore​
• 2026-27: ₹250 crore​
• 2027-28: ₹250 crore​
• 2028-29: ₹250 crore​
• 2029-30: ₹100 crore

It is designed to offer continual financial support to the startups to scale up operations, invest in research and development as well as strengthen technological boundaries. ​

Impact on the Space Startup Ecosystem

This infusion of ₹1,000 crore would substantially affect the space startup ecosystem in India. This is expected by providing access to a large amount of capital.​

• This helps develop innovative cutting edge technologies.​
• Increase Global Competitiveness: Empower Indian startups to participate among the major players in the international market.​
• Serve as a catalyst for additional private sector investments in space technology, particularly to attract private investment.​

But this funding is very much in sync with India’s larger vision of increasing its share in the global space economy and reducing dependence on foreign technology.​

Government’s Vision and Commitment

Taking note of the initiative, Union Minister Jitendra Singh said that the government is committed to the space sector and mentioned that the budgetary allocation of the Department of Space grew by 138% and stood at ₹ 13,416 crore as compared to ₹ 5,615 crore. However, India has emerged as a late entrant (in space) and has become a leading player in the space domain very soon. ​

Industry Response and Future Outlook

Industry stakeholders have praised the announcement. According to the space startups, with these funds, this funding will tackle key challenges of the space startups to access the risk capital. It is expected that the initiative will create an exciting ecosystem for the startups to flourish and help India become a hub for space innovation in the world.​

Strengthening the Space Startup Ecosystem

In 2020, the first crucial step towards integration of private enterprises into India’s space industry was taken by the establishment of Indian National Space Promotion and Authorization Centre (IN–SPACe). IN-SPACe is the autonomous single window agency under the Department of Space for promoting private sector participation in space activities. This funding initiative is in line with IN-SPACe’s objective, as it helps in supplementing funding to startups to bolster the ecosystem. 

Addressing Previous Funding Challenges

India’s space sector startups have notable achievements, and at some time, its space sector is suffering from funding issues. Space industry funding in India fell 55 percent to $59.1 million in 2024 from the previous year’s recorded $130.2 million. However, this decline called for strong financial support mechanisms. Such challenges are responded to with strategic initiatives to revitalize investment and confidence in the sector through the ₹1,000 crore funding scheme. ​

The Outcome

The ₹1,000 crore funding scheme marks a huge leap towards India’s journey towards becoming a self-reliant and globally competitive player in the space sector startups. In order to foster long term innovation and leadership in space technology, the government is nurturing home grown startups. Apart from helping the sector startups deal with some immediate financial challenge, this initiative also paves way for their long term development, so that they grow and thrive in the international arena.​