New Delhi: India’s spacetech startups have emerged as the biggest beneficiaries of the first disbursal round under its ₹1 trillion research, development and innovation (RDI) fund, as the government ramps up efforts to build domestic prowess in strategic technologies.
Under the first round of approvals, spacetech companies secured ₹833.89 crore in assistance, the highest among all sectors, according to a document reviewed by Mint.
The government approved 22 startups for a total assistance of ₹2,192.32 crore under the inaugural cohort of the scheme launched last year. Dhruva Space, Astrome, The ePlane Company, Agnikul, GalaxEye, and Manastu Space are among the companies that have been selected for funding.
The companies are currently undergoing due diligence and other post-approval formalities, according to several executives familiar with the matter. “Agreements will be signed and funds disbursed in accordance with the scheme guidelines upon completion of the requisite processes,” a spokesperson for the Department of Science and Technology (DST) under the Union ministry of science and technology, said.
This funding is particularly important for the , which is still at a relatively early stage of development. The Indian government officially opened the space technology (spacetech) sector to private participation and startups in June 2020.
Globally, however, the biggest buyers of spacetech services and hardware from private players remain government agencies, and not the private sector.
“The private sector globally is still warming up to buying from private space companies. proved that private markets can work in the sector, but that’s SpaceX. Every other startup has to build its own foothold and address that market risk itself. So for spacetech, this capital does double duty. It funds the engineering scale-up, but it also provides the runway to build customer confidence, win anchor orders, and prove to a cautious market that an Indian private space company can deliver,” said Vishnu Rajeev, partner at Speciale Invest, an early-stage deeptech venture capital (VC) firm.
Outside the space sector, listed drone manufacturer ideaForge Technology has been sanctioned ₹151 crore under the scheme for YETI, a heavy-lift, long-range autonomous aerial logistics UAV (unmanned aerial vehicle) featuring a VTOL (vertical take-off and landing) fixed-wing design for operations in difficult terrain and demanding conditions, reads the document
Strategic focus
While spacetech companies emerged as key beneficiaries in the first cohort of approvals, the government said the selection process was not designed to favour any particular sector, including space technology.
“The RDI scheme does not provide preferential treatment to any specific sector. Eligible proposals from identified sunrise and strategic technology sectors are evaluated on their merits as per the approved framework and prescribed procedures,” the DST spokesperson said.
Experts argue that the rollout of the RDI Fund could significantly boost innovation and strengthen India’s competitiveness in strategic technologies.
“R&D and innovation should help companies scale globally and become more competitive. The only way to compete globally is through innovation; it is not just about price competition. Citizens are exposed to a range of disruptions, whether related to fuel supplies or future crises. Investment in R&D, science, and technology is ultimately about strengthening our ability to respond proactively to these challenges,” said Janak Nabar, chief executive of the Centre for Technology Innovation and Economic Research (CTIER), a think-tank that studies the impact of policies aimed at promoting research and development.
Of the 124 proposals reviewed under the scheme, 22 projects have been selected across sectors including quantum computing, robotics and space technology, healthcare, biotechnology and medical devices, energy security, climate action, artificial intelligence (AI) for healthcare, and the digital economy, including digital agriculture. The approved assistance will be disbursed through the Technology Development Board (TDB).
The ₹1 trillion RDI Fund was first announced by finance minister Nirmala Sitharaman in the Union Budget presented in July 2024. In the Budget for 2025-26, Sitharaman allocated ₹20,000 crore to operationalise the initiative.
Under the RDI scheme, the government channels funding through designated second-level fund managers (SLFMs), which support approved projects using a mix of debt, equity, or other financial instruments based on the needs of the applicant. The scheme covers up to 50% of a project’s approved cost, while the beneficiary company is required to fund the remainder. To date, the government has appointed two such fund managers: the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC).
Industry experts believe the RDI Fund could also catalyse greater private investment into .
“The key thing to remember is that it won’t invest directly in startups. Instead, it stimulates the capital available to them by investing in fund managers, who in turn invest in startups,” said Ashwin Raghuraman, co-founder and partner at Bharat Innovation Fund.
“What it is really achieving is encouraging the creation of more fund managers focused on deeptech and motivating managers operating in other sectors to seriously consider deeptech as an investment opportunity. Both developments help channel more capital into the ecosystem,” he added.
The impact is already becoming visible. According to Tracxn data, Indian deeptech startups raised $1.1 billion during the first half of 2025, compared with $1.4 billion in the whole of 2024.