The Union Budget 2024-25 has introduced a Rs 1,000 crore venture capital fundto stimulate India's burgeoning space sector. This initiative follows the successful Chandrayaan-3 and Aditya L-1 missions, which have catalysed growth in the industry. The fund is designed to promote innovation and expansion in the space economy. India's space sector is projected to grow from $8.4 billion to $44billion by 2033, with the government aiming to increase its global market share from 2% to 10% by 2030, and 15% by 2047. The country currently operates 55 active space assets and has witnessed a remarkable increase in space startups,from one in 2022 to approximately 200 in 2024.
We observe that this venture capital fund represents a significant policy shift,which would reshape the regulatory landscape for space-related activities in India in coming years. It may necessitate amendments to existing space laws and regulations to accommodate increased private sector participation and investment. The fund could also lead to new legal frameworks governing public private partnerships in space technology development and commercialization. As the sector expands, legal practitioners may need to address novel issues related to space asset ownership, liability, and intellectual property rights in space technologies.
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