The cabinet on October 24 gave its nod to a Rs 1,000-crore venture capital (VC) fund to fuel the growth of space startups by providing crucial early-stage funds.

"The deployment period of the proposed Rs 1,000 crore VC fund is planned to be up to five years from the actual date of start of the fund operations," the government said in a statement.

With an expected deployment of Rs 150-250 crore annually, the fund, under the aegis of Indian National Space Promotion and Authorisation Centre IN-SPACe), is designed aims to invest in startups showing proof of concept and commercialisation potential.

The indicative investment range is expected to be between Rs 10-60 crore, depending on the stage of the company.

Briefing the media on cabinet decisions, information and broadcasting minister Ashwini Vaishnaw said, "The VC fund is expected to drive innovation in satellite technology, launch vehicles, and space applications."

Private investors may also be allowed to co-invest, thereby creating a multiplier effect, the minister said. The fund is expected to support around 40 startups in all.

The initiative focuses on capital infusion, retaining companies within India, growing the space economy, and accelerating space technology development. It also seeks to drive job creation and foster a vibrant innovation ecosystem, aligning with India's Atmanirbhar Bharat initiative.

"The proposed fund will position India as one of the leading space economies," the statement said.

The VC fund, which will be managed by a professional manager, is expected to boost employment across the entire space supply chain—upstream, midstream, and downstream.

The investments could create hundreds of direct jobs in engineering, software development, data analysis, and manufacturing, along with thousands of indirect jobs in related sectors like logistics and professional services.

The government’s vision is to expand the space economy from its current value of $8.4 billion to $44 billion by 2033. By providing early-stage risk capital, the fund aims to prevent talent loss and foster innovation, making India a global leader in space technology.