- ByStartupStory | May 6, 2024
the Asian Development Bank (ADB) has expressed its willingness to fund India’s burgeoning space sector, alongside a focus on climate financing to mitigate associated risks. Vice President Bhargav Dasgupta emphasized the ADB’s readiness to explore opportunities in India’s space industry, aligning with sustainable development objectives.
Dasgupta mentioned, “We have not done much till now. We are always open to look at new areas…we understand it has been opened up and there is lot of interest on startup side…if we find alignment with our objectives in terms of Sustainable Development Goals (SDGs), we will look at it.”
Established in 1966 and supported by 68 members, including India as a founding member, the ADB aims to foster a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region, with ongoing efforts to eradicate extreme poverty.
India stands as the ADB’s fourth largest shareholder and its top borrower since 2010.
This announcement follows recent Indian government initiatives to liberalize the Foreign Direct Investment (FDI) policy in the space sector, permitting up to 100% FDI via the automatic route for specific sub-segments, fulfilling a longstanding demand of spacetech startups.
Last month, the Indian National Space Promotion and Authorisation Centre (IN-SPACe) unveiled guidelines for implementing the Indian Space Policy 2023, outlining regulations for space activities and authorization processes within the country.
The Indian spacetech startup landscape has witnessed remarkable growth, with over 150 startups securing more than $285 million in funding between 2014 and 2023. Noteworthy investors such as Pi Ventures, Speciale Invest, Peak XV, Mumbai Angels, Artha India Ventures, and 9Unicorns have been actively supporting this sector.
The entry of private players into the space industry, alongside the establishment of IN-SPACe in 2020, has further catalyzed growth. Recent policies like the Space Communication Policy, Space Remote Sensing Policy, and the Indian Space Policy of 2023 have bolstered technological access and private sector integration, propelling the sector’s expansion.
The ADB’s openness to financing India’s space sector underscores growing international interest and support for India’s ambitious space endeavors, particularly amidst a dynamic landscape marked by rapid innovation and strategic partnerships.
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