Investment Support for Space-Tech Startups in India

Investment in the space-tech sector is being bolstered significantly by the Union Government, which has declared an injection of Rs 211 crore (approximately $25 million) under the Fund of Funds for Startups (FFS) initiative. Union Minister Piyush Goyal highlighted that this investment aims to provide essential resources to local innovators in space technology, strengthening India’s status as an emerging contender in the global space arena. With guidance from Prime Minister Narendra Modi’s vision, the government is dedicated to fostering innovation, encouraging youth-led entrepreneurship, and enhancing the transformative applications of space technology.

Overview of the Fund of Funds for Startups Scheme

The Fund of Funds for Startups scheme, administrated by SIDBI, facilitates venture capital investments by supporting SEBI-registered Alternative Investment Funds (AIFs). These funds are required to channel at least twice the investment back into startups. As of June 30, 2025, commitments totaling Rs 9,994 crore have been committed to 141 AIFs, underscoring the government’s commitment to the sector.

Rapid Expansion of India’s Space Sector

Research indicates that India’s space sector has exhibited remarkable growth, with over 350 startups engaged in innovative activities within the domain. Furthermore, the nation’s space budget has seen a nearly threefold increase over the last decade, climbing from Rs 5,615 crore in FY14 to Rs 13,416 crore in FY26.

Recent Funding Initiatives and Challenges

This March, Union Minister Jitendra Singh announced an additional funding scheme worth Rs 1,000 crore to amplify support for startups within the space sector. Prime Minister Narendra Modi has also challenged India’s space-tech startups to establish five unicorns within the next five years and to escalate annual rocket launches from the current 5–6 to a substantial 50.

Corporate Investments in Space-Tech Startups

Recently, Reliance Industries has engaged in discussions to lead a substantial $50 million (Rs 430 crore) funding round for Digantara Research & Technologies. This move positions it amongst the most well-funded Indian space-tech startups, alongside prominent companies such as Skyroot, Pixxel, NewSpace, Agnikul Cosmos, and SatSure.