NEW DELHI

Indian Prime Minister Narendra Modi said Thursday that the country is setting up a $119 million fund dedicated to the development of the space sector.

The decision to establish a venture capital fund dedicated to the space sector will have a "phenomenal impact on the youth," he wrote on X.

A statement by the government said the proposed fund is expected to boost employment in the space sector and will help businesses scale, invest in research and development, and expand the sector’s workforce.

It said the deployment period of the proposed fund is “planned to be up to five years from the actual date of start of the fund operations.”

India recently achieved some feats in the space sector by becoming the first country to land on the lunar south pole last year, and it also conducted several space missions.

The size of India’s space economy is estimated at around $8.4 billion.

Global estimates indicate the sector is projected to grow at 6% to 8 % in the coming years.

For nearly six decades, India's space program has seen the country evolve from a nation relying on foreign launch vehicles to becoming fully self-reliant with its indigenous launch capabilities, according to the government.​​​​​​​