India’s Space Legislation

India celebrates its second National Space Day on August 23, 2025, marking Chandrayaan-3’s success and upcoming missions, but lacks a comprehensive national space legislation to regulate and promote its growing space sector.

India’s Expanding Space Sector and Legal Gaps

Background

• India has emerged as a major space power with missions like Chandrayaan-3, Gaganyaan, and the proposed Bharat Antariksh Station.
• Despite progress, the absence of comprehensive national space legislation creates uncertainty for commercial and private actors.
• India has ratified major UN space treaties, but has not yet enacted a domestic law aligning with these obligations.

Global Space Legislation Framework

• Outer Space Treaty, 1967 (OST):
  • Declares space as the “province of all mankind.”
  • Prohibits national appropriation of outer space.
  • States bear responsibility for space activities of both government and private entities.
  • Companion treaties establish liability, rescue, registration, and moon agreements.
• National Legislations:
  • U.S., Japan, Luxembourg have enacted laws facilitating licensing, commercial rights, and liability coverage.
  • Such frameworks ensure legal predictability and attract private investment.

India’s Current Approach

• Incremental and Methodical Strategy:
  • Authorisation Frameworks Developed:
    • Indian Space Policy, 2023 – encourages private participation.
    • IN-SPACe Norms, Guidelines, and Procedures (NPG) – sets authorisation processes.
    • Catalogue of Indian Standards for Space Industry – ensures safety standards.
  • Pending Aspect:
    • A comprehensive “Space Activities Law” covering liability, licensing, accident investigation, debris management, and intellectual property rights.

Industry Perspectives

• Statutory Authority for IN-SPACe: Needs clear legal mandate to function as regulator.
• Licensing and Clearances: Current system causes delays due to multiple ministries.
• FDI Rules: Demand for 100% FDI in satellite component manufacturing via automatic route.
• Liability and Insurance:
  • India bears international responsibility, but private firms need mandatory third-party insurance.
  • Affordable insurance frameworks crucial for startups.
• Intellectual Property (IP) Protection: To prevent brain-drain and ensure investor trust.
• Operational Needs:
  • Mandatory accident investigation procedures.
  • Space debris management laws.
  • Unified framework for space-related data and satellite communication.
  • Independent appellate body to avoid conflicts of interest.

Challenges

• Dual-use technologies create regulatory complexities.
• Fragmented institutional authority slows private sector approvals.
• Lack of a comprehensive liability framework increases risks for startups and investors.
• Absence of statutory backing for IN-SPACe reduces regulatory certainty.

Way Forward

• Enact National Space Legislation integrating UN treaty principles with India-specific needs.
• Provide statutory status to IN-SPACe as the central regulator.
• Establish clear licensing and FDI norms to attract investment.
• Introduce comprehensive liability and insurance frameworks for private actors.
• Codify IP protection and incentivise R&D partnerships among academia, industry, and government.
• Mandate space debris mitigation, accident investigations, and safety protocols.
• Create an independent appellate body for dispute resolution.