Chennai, Jul 23 (IANS): In order to take the Indian space sectors to a higher orbit, Union Finance Minister Nirmala Sitharaman on Tuesday said the government will set up a Rs 1,000 crore venture capital (VC) fund.

Presenting her seventh budget for the country, she said the Union government will set up a Rs 1,000 crore venture capital fund to finance the space economy.

Reacting to the announcement, Vishesh Rajaram, Managing Partner, Speciale Invest said: "We strongly believe that an INR1000 crore fund for space startups and space economy will catalyse India's dominance in the global space market!"

"We believe the trust and focus from the government combined with the FDI policy announced earlier this year will lead to more investment participation in the sector from India and internationally," Rajaram added.

Speciale Invest is an early investor and has been one of the most active investors in this domain since 2018. Its portfolio includes investments in rocket maker Agnikul Comos, satellite manufacturing & earth observation companies Galaxeye Space, Kawa Space, communication player Astrogate Labs, and in-orbit economy InspeCity.

Welcoming the Union Finance Minister's announcement, Lt. Gen. (Retd) AK Bhatt, Indian Space Association (ISpA) Director General, said: "The Union Budget's vision to grow India's space economy by fivefold in the next decade demonstrates the government's strong commitment to this sector."

He also stated that establishing 12 industrial parks across India would substantially boost the space and satellite manufacturing industry, which has long called for creation of space parks.

He said these measures are crucial for the growth and development of India's space ecosystem.