The Union Government has announced an investment support of ₹211 crore (around $25 million) under the Fund of Funds for Startups (FFS) scheme, giving a major boost to India’s rapidly growing space-tech sector.
Union Minister Piyush Goyal said the investment will empower homegrown innovators with critical resources and help position India as a rising global space power. “Guided by Prime Minister Narendra Modi’s vision, the government is committed to driving innovation, youth-led entrepreneurship, and transformative use of space technology,” he stated.
The FFS scheme, managed by SIDBI, catalyzes venture capital by supporting SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups. As of June 30, 2025, commitments worth ₹9,994 crore have been made to 141 AIFs, which are mandated to invest at least twice the amount in startups.
India’s space-tech sector is witnessing unprecedented momentum, with over 350 startups now active in the field. The country’s space budget has also nearly tripled in the past decade, from ₹5,615 crore in FY14 to ₹13,416 crore in FY26.
The announcement follows earlier commitments, including ₹1,000 crore funding support announced in March 2025 and PM Modi’s call for five spacetech unicorns in five years. The sector is also attracting private capital, with Reliance reportedly in talks to lead a $50 million round in Digantara Research & Technologies, joining top-funded players like Skyroot, Pixxel, NewSpace, Agnikul Cosmos, and SatSure.
With this move, the government is not only infusing capital but also laying the foundation for India’s leadership in the global spacetech race.
By: Arushi Agarwal
