The Indian government on Thursday approved a 10 billion Indian rupee ($119 million) fund for its burgeoning space sector, with 40 startups expected to benefit as the country strives to win a significant share of the commercial space market by 2033.

With funding ranging from 100-600m Indian rupees depending on how mature each startup is, the fund will help generate employment, boost space technology development, fortify supply chains and support research and development, the Indian government said in a statement.

“Capital infusion [will] create a multiplier effect by attracting additional funding for later-stage developments,” it added.

The fund, first proposed in July, will be managed by the country’s space regulator, the Indian National Space Promotion and Authorisation Centre.

India is among the top five space-faring nations in the world but only holds about a two per cent market share of the commercial space market.

Prime Minister Narendra Modi’s government has been pushing to change that, opening up the industry to foreign investment and targeting a five-fold increase in market share to $44bn by 2033.

The country currently has nearly 250 space startups, many of which are in the business of providing cost-effective services and hardware to sectors such as communications, agriculture and commodities, where high-quality data is a precious resource.

Others are building the country’s first private rockets.

Private equity investment in the industry has risen to $126m in 2023, a 7pc increase from the $118m raised in 2022 and an increase of 235pc from the $37.6m raised in 2021, according to Tracxn data.