The Asian Development Bank (ADB) is keen to offer financial assistance to India’s burgeoning space sector while also focusing on climate financing to tackle related challenges. Vice President Bhargav Dasgupta emphasized the ADB’s readiness to explore opportunities within India’s space industry, aligning with sustainable development objectives.
Dasgupta stated, “We are open to exploring new areas, especially given the recent liberalization of India’s space policy and the increasing interest from startups. If we find alignment with our Sustainable Development Goals (SDGs), we will consider providing funding.”
Established in 1966 with 68 member countries, including India as a founding member, the ADB aims to promote prosperity, inclusivity, resilience, and sustainability in the Asia-Pacific region, with a focus on eradicating extreme poverty.
India, the ADB’s fourth-largest shareholder and top borrower since 2010, has recently relaxed its Foreign Direct Investment (FDI) policy in the space sector, allowing up to 100% FDI through the automatic route for specific sub-segments, a move welcomed by space technology startups.
This announcement comes after the Indian National Space Promotion and Authorisation Centre (IN-SPACe) unveiled guidelines for implementing the Indian Space Policy 2023, which aims to regulate space activities and authorization processes within the country.
India’s space technology startup ecosystem has seen significant growth, attracting over $285 million in funding between 2014 and 2023, with prominent investors such as Pi Ventures, Speciale Invest, and Mumbai Angels actively supporting the sector.
The involvement of private players in the space industry, combined with recent policies like the Space Communication Policy and Space Remote Sensing Policy, has accelerated technological access and integration of the private sector, driving sectoral expansion.
The ADB’s willingness to finance India’s space sector reflects growing international support for the country’s ambitious space initiatives, amid a dynamic landscape characterized by rapid innovation and strategic partnerships.
