•   Government invests Rs 211 Cr under Fund of Funds to strengthen India’s spacetech ecosystem.
•   Support to be channelled via SIDBI-managed AIFs, with commitments already crossing Rs 9,994 Cr.
•   India’s spacetech sector surges with 350+ startups and a tripled space budget over the past decade.

The Union Government has announced an investment of Rs 211 crore (approximately $25 million) under the Fund of Funds for Startups (FFS) scheme, providing a major thrust to India’s rapidly expanding space-tech sector.

Union Minister Piyush Goyal highlighted that this support will equip domestic innovators with vital resources, reinforcing India’s position as an emerging global space power. He added that the initiative is aligned with Prime Minister Narendra Modi’s vision of fostering innovation, youth-driven entrepreneurship, and transformative applications of space technology.

The FFS scheme, managed by SIDBI, acts as a catalyst for venture capital investment by backing SEBI-registered Alternative Investment Funds (AIFs), which subsequently fund startups. As of June 30, 2025, total commitments of Rs 9,994 crore have been made to 141 AIFs, each required to invest at least double the committed amount into startups.

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India’s spacetech ecosystem has seen rapid growth, now home to more than 350 startups. The nation’s space budget has also nearly tripled in the last decade  from Rs 5,615 crore in FY14 to Rs 13,416 crore projected for FY26.

Earlier this year, Union Minister Jitendra Singh announced a Rs 1,000 crore fund to further accelerate space innovation. Prime Minister Modi also challenged India’s spacetech startups to build five unicorns in the next five years and scale rocket launches from the current 5–6 annually to 50.

In parallel, Reliance Industries is reportedly in talks to lead a $50 million (Rs 430 crore) funding round in Digantara Research & Technologies, which would position it among India’s top-funded spacetech startups, alongside Skyroot, Pixxel, NewSpace, Agnikul Cosmos, SatSure, and others.