India Boosts Space Sector with $119 Million Fund, aiming 2033 Market Share By CIOTechOutlook Team

India Boosts Space Sector with $119 Million Fund, aiming 2033 Market Share

CIOTechOutlook Team | Friday, 25 October 2024, 05:32 IST

The Indian government allocated a 10 billion rupee ($119 million) fund to support the growing space sector, aiming to boost 40 startups and increase its presence in the commercial space market by 2033. The proposal for the fund, initially suggested in July, will be overseen by India's space regulator, the Indian National Space Promotion and Authorisation Centre.

The government stated that the fund will vary from 100 million to 600 million rupees based on the startup's maturity level, aiding in job creation, advancing space technology, strengthening supply chains, and backing research and development.

"Capital infusion (will) create a multiplier effect by attracting additional funding for later-stage developments," it added.

India is one of the top five countries with space capabilities globally, holding just a 2% share of the commercial space market. The government led by Prime Minister Narendra Modi is working towards transforming the industry by allowing foreign investment and aiming to increase market share to $44 billion by 2033.

At the moment, there are around 250 space companies in the country, with a focus on offering affordable services and products to industries like communications, agriculture, and commodities, which rely on valuable data.

Other people are constructing the initial private rockets of the nation. According to Tracxn data, private equity investment in the industry has increased by 7% to $126 million in 2023 from $118 million in 2022, and has seen a 235% increase from the $37.6 million raised in 2021.