Budget 2024: Finance Minister Announces Rs 1,000 crore For Space Sector By CIOTechOutlook Team

Budget 2024: Finance Minister Announces Rs 1,000 crore For Space Sector

CIOTechOutlook Team | Tuesday, 23 July 2024, 10:33 IST

In a bold initiative to advance India's space industry, Finance Minister, Nirmala Sitharaman revealed the creation of a Rs 1000 crore VC fund aimed at promoting progress and creativity in space technology. This statement is part of the government's larger plan to establish India as a prominent figure in the international space sector.

The significant funding shows that the government acknowledges the potential of the space industry to boost the economy, generate skilled employment, and improve India's technological abilities.

The venture capital fund is anticipated to stimulate involvement from the private sector in space endeavors, aiding both new and established companies in advancing innovative space technologies. This effort is in line with the current pattern of greater private sector participation in India's space program, which came after the government allowed private companies to enter the sector.

The fund is expected to tackle a major obstacle for space tech companies - obtaining funding for developing advanced space technologies. The growth of India's space industry is anticipated to have broad effects on different areas. The space industry's expansion is set to spark innovation in various sectors, from agricultural and disaster management services using satellites to advanced communication systems and space exploration missions.

Reacting to the announcement, Srinath Ravichandran, Co-Founder and CEO, Agnikul Cosmos said, "Wonderful news for all of us in the sector. This will help larger players emerge out of India’s space startup ecosystem. This also shows that the government is continuing to strongly back its vision of making India have a larger chunk of the global space economy."