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In a significant move to boost India's burgeoning space sector, Finance Minister Nirmala Sitharaman announced a ₹1,000 crore fund dedicated to space technology development during her Union Budget 2024 speech on Tuesday.
The newly announced fund in the Union Budget 2024 is poised to provide substantial support to more than 180 government-recognized space technology startups in India. This initiative aims to foster innovation and development in the space sector.
Discussing the fund, Finance Minister Sitharaman said, "The success of Chandrayaan-3 has showcased India's potential in space technology. This ₹1,000 crore fund will not only support our existing startups but also inspire new ones to take bold steps in space exploration and technology."
The announcement follows the Economic Survey 2023-24, which was tabled in Parliament by FM Sitharaman on Monday. The survey highlighted the remarkable progress made by India's space sector in recent years, particularly in the development of rockets, satellites, and ground infrastructure.
According to the survey, India currently has 55 active space assets, comprising 18 communication satellites, nine navigation satellites, five scientific satellites, three meteorological satellites, and 20 Earth observation satellites. These assets play a crucial role in various applications, from communication and navigation to weather forecasting and scientific research.
The Economic Survey also shed light on the achievements of New Space India Limited (NSIL), a public sector enterprise under the Department of Space. NSIL has successfully executed contracts to launch 72 satellites for OneWeb into Low Earth Orbit through the LVM3, M2, and M3 missions. These missions have established the LVM3 as a reliable launch vehicle in the global commercial launch services market.
The ₹1,000 crore fund announced in the Union Budget 2024 is expected to provide a significant boost to India's space technology sector. By supporting startups and fostering innovation, the government aims to create an ecosystem that encourages cutting-edge research and development.
FM Sitharaman outlined the broader vision for India's space sector, stating, "Our goal is to transform India into a global leader in space technology by 2047, as part of our vision for 'Viksit Bharat.' This fund is a step towards achieving that vision, enabling our startups to thrive and contribute to our space missions."
Despite the optimistic outlook, the Economic Survey 2023-24 also highlighted some challenges facing India's space sector. The report noted that India's growth trajectory is influenced by global developments and geopolitical tensions. These things can impact the country's ability to export goods and services.
Additionally, the rise of artificial intelligence (AI) poses a challenge to employment, particularly in the services sector. AI's impact on cost competitiveness for countries exporting digital services is a concern that needs to be addressed as part of the broader strategy for economic growth.
The announcement of a ₹1,000 crore fund for space technology development in the Union Budget 2024 marks a significant milestone for India's space sector. With the support of this fund, more than 180 startups will have the opportunity to innovate and contribute to the nation's space missions. The challenges ahead are real, but so are the opportunities. With the right support and resources, India's space sector is poised for a bright future.
