Key Takeaways
- The Indian government has allocated Rs 211 crore (around $25 million) to support the space-tech sector under the Fund of Funds for Startups scheme.
- The initiative aims to enhance local innovation and entrepreneurship, positioning India as a global leader in space technology.
- India’s space sector is rapidly expanding, with significant funding and a goal to increase annual rocket launches significantly in the next five years.
Investment in Space-Tech Sector
The Union Government has announced a substantial investment of Rs 211 crore (approximately $25 million) aimed at bolstering India’s burgeoning space-tech sector through the Fund of Funds for Startups (FFS) scheme. Union Minister Piyush Goyal emphasized that this investment would equip local innovators in space technology with essential resources, aligning with Prime Minister Narendra Modi’s vision of promoting innovation and youth-led entrepreneurship.
The FFS scheme, managed by SIDBI, serves to catalyze venture capital investments by providing support to SEBI-registered Alternative Investment Funds (AIFs). These funds are obligated to invest double the amount of public investment into startups. By June 30, 2025, a total of Rs 9,994 crore has been pledged to 141 AIFs, strengthening the funding landscape for innovative startups.
India’s space sector has seen remarkable growth, with more than 350 startups actively engaged in various innovations. In the past decade, the government’s space budget has nearly tripled, increasing from Rs 5,615 crore in FY14 to Rs 13,416 crore projected for FY26. This surge in funding reflects the government’s commitment to enhancing the space sector.
Earlier initiatives include a Rs 1,000 crore funding scheme announced by Union Minister Jitendra Singh to further support space sector startups. Prime Minister Modi has also challenged Indian spacetech startups to aspire to create five unicorns within the next five years and to escalate annual rocket launches from the current range of 5–6 to an ambitious 50.
Engagement from major corporations underscores the potential of this sector, with Reliance Industries in discussions to lead a $50 million (around Rs 430 crore) funding round in Digantara Research & Technologies. This positions Digantara among the top-funded spacetech startups in India, along with other notable companies such as Skyroot, Pixxel, NewSpace, Agnikul Cosmos, and SatSure.
The strategic investments and bold challenges set forth by the government and industry leaders illustrate a dynamic and rapidly evolving landscape in India’s space technology sector, aiming to solidify its status on the global stage.
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