Lok Sabha Question No. 273 (UNSTARRED), answered on 2024-11-27
Subject: Space Sector Start-ups Fund
Ministry: SPACE
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta

## GOVERNMENT OF INDIA DEPARTMENT OF SPACE

## LOK SABHA

TO BE ANSWERED ON WEDNESDAY, NOVEMBER 27, 2024

## UNSTARRED QUESTION NO. 273 SPACE SECTOR START-UPS FUND

273. SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: SHRI SUDHEER GUPTA:

Will the PRIME MINISTER be pleased to state:

- (a) whether Union Government has approved a 1000 crore venture capital  fund  under  IN-SPACE  programme  to  support  space sector focused start-ups in the country and if so, the details thereof;
- (b) the manner in which this approved fund is likely to be spent and the criteria followed for selecting start-ups;
- (c) the manner in which the proposed fund will boost employment in the Indian space sector through various start-ups across the entire space supply chain;
- (d) the steps taken/being taken by the Government to cultivate a skilled workforce, drive innovation and boost India's competitiveness in the global space market through this fund; and
- (e) the  manner  in  which  the  said  fund  will  help  in  nurturing  the talent  in  the  country  and  prevent  the  loss  of  talent  to  other countries?

## ANSWER GRIEVANCES & PENSIONS AND IN THE PRIME MINISTER'S OFFICE

## MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, PUBLIC (DR. JITENDRA SINGH):

****

- The  Union  Cabinet  has  approved  a  Rs.1000  crores  Venture Capital fund dedicated to Indian Space Sector. The Rs.1000 Cr. VC fund  is  structured  to  align  with  Indian  strategic  vision  for the space sector and supports the goals set forth in the 2020 space  reforms.  The  fund  is  designed  to  address  the  unique needs  of  private  companies  operating  in  the  high-risk,  high-
- (a) reward field of space technology.
- (b) The modalities and section of fund managers are being worked out.
- (c) One  of  the  primary  goals  of  the  fund  is  to  create  a  robust ecosystem  that  promotes  job  creation  and  enhances  India's standing in the space technology sector. The fund is expected to generate,

Direct employment: jobs in engineering, data analysis, software development,  manufacturing,  and  other  technical  fields  are potentially generate hundreds of direct job opportunities within these high- expected to increase. Each investment could skill areas.

Indirect employment opportunities: Additional employment will also be generated in fields associated with logistics, professional  services,  and  supply  chain  management.  These

- (d)
- (e)

jobs  will  arise  from  the  increased  demand  created  by  scaling business manufacturing units. By fostering a skilled workforce in the space sector, the fund aims to build sustainable talent pool, enhancing India's global standing and driving innovation through skill professionals. Many  Indian  startups  relocate  abroad  due  to  better  financial opportunities. The fund will work to retain talent within India, preventing brain drain and fostering the growth of homegrown space companies. The fund aims to address the critical need for risk capital, as traditional lenders are hesitant to fund startups in this high-tech sector.  With  nearly  250  space  startups  emerging  across  the value chain, timely financial support is crucial to ensure their growth and prevent talent loss overseas. The proposed government-backed fund will boost investor confidence, attract private  capital,  and  signal  the  government's  commitment  to advancing  space  reforms. !t will serve as an Alternative lnvestment Fund under SEBI regulations, providing early-stage equity to startups and enabling them to scale for further private equity investments.

****