Space Law and India’s Private Sector Boom: Time for a New Regulatory Code?

Introduction

India’s space journey, once monopolized by ISRO, is entering a new era. With private companies like Skyroot Aerospace, Agnikul Cosmos, and Bellatrix Aerospace making headlines for innovative launches and satellite technologies, the space industry is no longer a government-only domain. This shift, while encouraging, raises an urgent question: Is India’s legal and regulatory framework ready for the private space boom?

The Changing Landscape of Indian Space Sector

India’s reputation in space exploration is impressive. ISRO has successfully executed missions like Chandrayaan, Mangalyaan, and more recently, Aditya L-1 and Chandrayaan-3. This global recognition is now encouraging private players to enter the ecosystem, especially after the government’s 2020 announcement allowing private participation in all aspects of space missions—from satellites to rockets and ground infrastructure.

Entities like IN-SPACe (Indian National Space Promotion and Authorization Center) were created to facilitate this growth. However, policy facilitation is not the same as legal regulation. The country still lacks a binding, enforceable law that covers private participation, licensing, liability, and compliance.

Existing Legal Framework: Inadequate and Outdated

Currently, India’s space sector functions under a patchwork of policies and international obligations. These include:

Satellite Communication Policy (2000)
Remote Sensing Data Policy (2011)
Telecom Regulatory Authority of India (TRAI) Guidelines
International Treaties: India is a signatory to treaties like the Outer Space Treaty (1967), Liability Convention (1972), and Registration Convention (1976).

While these provide general direction, they lack enforceable legislative backing and do not specifically account for private commercial space activities.

The Problem: Legal Vacuum and Global Responsibility

Under the Outer Space Treaty, a country is internationally liable for any damage caused by objects launched from its territory—whether by a public or private entity. In the absence of a domestic legal framework:

Who is responsible if a private Indian rocket crashes into a foreign satellite?
Who approves or rejects private launch proposals?
What are the compensation mechanisms for third-party damage?
How are national security and dual-use technologies monitored?

These are not hypothetical concerns. With space becoming increasingly crowded and contested, any legal misstep could have serious diplomatic and financial consequences for India.

The Pending Space Activities Bill

The Space Activities Bill, first introduced in 2017, aimed to:

Establish a licensing system for private players
Define liability and penalties
Ensure compliance with international obligations
Create mechanisms for IP protection, insurance, and safety standards

However, the Bill has not yet been passed, and no updated version has been tabled since. The delay is worrying because the private space sector is already operational, and investors seek legal certainty before committing large sums to R&D and infrastructure.

The Way Forward: Time for Reform

India urgently needs a comprehensive space law that addresses:

Licensing & Authorization: Clear procedures for private launches, satellite manufacturing, and foreign collaborations.
Liability & Insurance: A system to determine fault, damages, and compensation.
National Security: Guidelines to screen dual-use technologies and sensitive partnerships.
IP Rights & Commercial Use: Rules on how companies can own and monetize discoveries or satellite data.
Environmental & Safety Norms: Standards to avoid space debris and ensure sustainability.

Conclusion

India’s private space sector has shown extraordinary promise. But legal ambiguity could become its biggest roadblock. A forward-looking, clear, and investor-friendly regulatory code is not just necessary—it is non-negotiable. If India wants to lead the new space economy, it must build legal systems as strong as its rockets.