New Rs 5 Bn Fund To Support Space Tech SMEs & Start-ups upto 60% of Project Cost

New Delhi, Feb 20 (KNN) The Indian National Space Promotion and Authorisation Centre (IN-SPACe) has unveiled a Rs 5 billion (USD 57.58 million) Technology Adoption Fund aimed at accelerating the commercialisation of early-stage space technologies.

This strategic move seeks to reduce India’s reliance on imports and strengthen its position in the global space industry.

The fund, launched on Wednesday, is designed to bridge the gap between government bodies and the private sector, fostering innovation and enhancing India’s role as a trusted player in the competitive global space market.

“The fund will offer financial support of up to 60 per cent of the project cost for startups and small to medium-sized enterprises (SMEs), and 40 per cent for larger industries, with a funding cap of Rs 250 million per project,” said Pawan Goenka, chairman of IN-SPACe.

“This will help companies refine technologies, scale up production, and meet market demands both domestically and internationally.”

India’s space sector has witnessed a surge in private investment following the government's liberalisation efforts last year, aimed at unlocking the sector’s commercial potential.

Traditionally dominated by the state-run Indian Space Research Organisation (ISRO), the industry is now attracting significant private participation.

High-profile collaborations have already begun shaping the landscape. A joint venture between Reliance Industries’ Jio Platforms and Luxembourg-based SES has secured approval to offer gigabit fiber internet services, while global giants like Elon Musk’s Starlink and Amazon’s Kuiper await regulatory clearance.

To further bolster the sector, the government has also sanctioned a ₹10 billion venture capital fund dedicated to space startups and has awarded private firms contracts for ISRO’s primary launch vehicles. Efforts to forge international partnerships are also gaining momentum.

“We’re seeing a wave of pioneering startups with groundbreaking ideas for the space industry,” said AK Bhatt, director general of the Indian Space Association. “However, to turn these concepts into market-ready products, sufficient funding—especially from government institutions—is essential at this stage.”

With the new fund, India aims to capitalise on its growing space capabilities and expand its share in the thriving global space economy.

(KNN Bureau)