The Union Government will set aside ₹211 crore (approximately $25 million) to solidify India’s position in the global space technology market through the Fund of Funds for Startups (FFS) program. Announced by Union Cabinet Minister of Commerce and Industry Piyush Goyal on August 24, 2025, funding is part of an earlier initiative for Startup India which seeks to aid domestic innovators develop capabilities with respect to space.

Minister Goyal stressed that this investment will speed up the building out of advanced space technology, enable youth entrepreneurship and innovation, and ensure self-reliance in an increasingly competitive global field. As per the vision of Prime Minister Narendra Modi, the decision is expected to enhance India’s private space ecosystem immensely.

How the FFS Scheme Works

The FFS scheme, managed by SIDBI as a facilitator of venture capital, invests in SEBI-regulated Alternative Investment Funds (AIFs) which are required to invest double the amount of the Government’s contribution in start-up companies to optimize private sector funding.

As of June 30, 2025, commitments worth ₹9,994 crore have been made to 141 AIFs under the scheme, with these funds deploying capital into thousands of startups across sectors, including space technology. The latest ₹211 crore allocation is one of the largest dedicated infusions into the country’s growing spacetech ecosystem.

The Launchpad for India’s Private Space Sector

India’s private space sector has been gaining remarkable traction since the government opened the industry to private participation in 2020. Today, more than 350 startups are innovating across satellite design, launch vehicles, space-based data services, and propulsion systems.

This surge comes alongside steady public-sector support. Over the past ten years, India’s space budget has grown from ₹5,615 crore in FY 2013-14 to ₹13,416 crore in FY 2025-26, demonstrating a long-term national commitment to space innovation.

Prime Minister Modi, during National Space Day celebrations in 2025, highlighted that private entities are no longer on the sidelines but are shaping the future of India’s space ecosystem. He also challenged the sector to produce at least five unicorns in the next five years and scale annual rocket launches from the current 5-6 to 50.

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Complementary Government Schemes

The ₹211 crore injection is part of a broader framework of initiatives designed to make India a global hub for space technology. Recent measures include:

• Antariksh Venture Capital Fund: A ₹1,000 crore fund to attract private investment into the spacetech ecosystem.
• Technology Adoption Fund (TAF): With a corpus of ₹500 crore, it supports startups and MSMEs in developing and commercializing cutting-edge space technologies.
• Seed Fund Scheme: Provides grants of up to ₹1 crore for early-stage space-tech startups focused on R&D.
• Satellite-Bus-as-a-Service (SBaaS): Four entities, including startups, will receive ₹5 crore each to develop spacecraft bus platforms, expanding India’s satellite manufacturing capacity.
• IN-SPACe Initiatives: The Indian National Space Promotion and Authorization Centre acts as a single-window agency, enabling startups to access ISRO facilities, mentorship, and technology licenses.

Growing Private Participation

India’s spacetech startups are rapidly making their mark on the global stage. Skyroot Aerospace, which became the first private Indian company to launch a rocket in 2022, recently signed an MoU with U.S.-based Axiom Space to expand access to low Earth orbit. Pixxel, another Bengaluru-based startup, has launched hyperspectral imaging satellites that provide data for agriculture, climate monitoring, and urban planning. Agnikul Cosmos, NewSpace India, and SatSure are also emerging as significant players.

Investment interest has surged accordingly. Reliance Industries is reportedly in talks to lead a $50 million (₹430 crore) funding round in Digantara Research & Technologies, which specializes in space debris tracking. Such deals are propelling startups into the global spotlight, enhancing India’s competitiveness against space economies like the U.S. and Europe.

A Visionary Growth Path

The government’s funding announcement comes at a time of exponential increase in global demand for space services. Researchers of the market have identified a pathway for India’s space economy to grow to $44 billion by 2033 driven many areas including satellite launches, commercial application in space, and data derived services.

India has a remarkably innovative startup ecosystem, a budgetary cycle that is providing increased levels of support, and the presence of multiple government backed and supported initiatives that are giving India multiple concurrent routes to innovating in spacetech consistently and at scale. With a combination of private capabilities, and government assisted funding we have created a multi layered foundation of innovation that is making India one of the world’s most interesting space powers.

The ₹211 crore FFS funding is financial but also symbolic in its assertion of intent by the government. Its intention is to demonstrate India’s intention to win the global technology race for space, and to develop generations of innovators who will take the country beyond our horizon.

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