On August 23, India marked its second National Space Day, a celebration underscored by the words of A.P.J. Abdul Kalam: “A nation with a strong base in science and technology is a nation with a strong backbone.” The occasion came at a time when India’s space programme is accelerating, from the triumph of Chandrayaan-3 in 2023 to the forthcoming Gaganyaan human spaceflight mission, the planned Bharat Antariksh Station, and deep-space exploration initiatives. Alongside these state-led efforts, more than 190 space-tech startups are developing launch vehicles, satellites, and downstream applications, signalling a vibrant private sector. Yet, one foundational element remains absent — a comprehensive national space law.
India is a signatory to the 1967 Outer Space Treaty (OST), the bedrock of international space law. The treaty enshrines principles such as the non-appropriation of celestial bodies, the peaceful use of space, state responsibility for all national space activities, liability for damages caused by space objects, and the prevention of harmful contamination. However, the OST provides only broad guidelines, leaving it to individual nations to enact domestic legislation that operationalises these commitments. Without such a law, obligations remain loosely defined and enforcement mechanisms weak.
For countries with active space sectors, national legislation serves multiple purposes. It ensures compliance with international agreements, regulates private sector activities, and provides clarity on licensing, safety, and liability. It builds investor confidence by creating predictable legal frameworks and manages liability risks, particularly given that under the OST, a state is internationally liable for any object launched from its territory, regardless of whether it is state-owned or privately operated. It also supports space security, environmental stewardship, and enhances a nation’s standing in global space governance. Nations such as the United States, Luxembourg, and the United Arab Emirates have used robust domestic frameworks to attract investment and strengthen diplomatic influence.
India’s approach to date has been cautious. The Indian Space Policy, 2023, opened the sector to private players and defined the roles of ISRO, IN-SPACe, and NewSpace India Ltd. But as a policy document, it lacks the binding force of law. The Draft Space Activities Bill of 2017, which proposed licensing regimes, liability caps, and insurance mechanisms, lapsed without being introduced in Parliament. Regulation currently relies on executive orders, guidelines, and memoranda of understanding, creating uncertainty for entrepreneurs and foreign collaborators.
Several interim measures provide partial governance. The Catalogue of Standards for the Space Industry (2023) sets technical and operational benchmarks for safety, reliability, and debris mitigation, enabling Indian companies to meet international norms. The Indian Space Policy (2023) encourages non-governmental entities in satellite communications, remote sensing, planetary missions, and reusable launch technologies, with IN-SPACe serving as a single-window regulator. The IN-SPACe Norms, Procedures and Guidelines (2024) detail authorisation processes for activities such as satellite deployment, ground station operations, spectrum coordination, and compliance monitoring.
One pressing gap is in insurance frameworks for space startups. Space missions carry high costs and risks; a failed launch can result in losses of hundreds of crores. Collisions or debris incidents could trigger international liability claims against India. Current insurance premiums are prohibitively high for many startups, and the absence of clear liability caps discourages foreign investment. Affordable, structured insurance models — such as public-private risk pools, reinsurance mechanisms, and government-backed liability caps — are essential to foster innovation while safeguarding national interests. Other spacefaring nations have adopted such measures, balancing compliance with the OST against the need to protect emerging private players.
A national space law for India would codify licensing requirements, liability allocation, insurance provisions, dispute resolution mechanisms, and environmental safeguards. It could set liability caps for startups, encourage satellite manufacturing and space resource utilisation, and promote reusable launch vehicle development. Beyond economic benefits, such a law would strengthen India’s position in space diplomacy, particularly in leading inclusive governance discussions among the Global South.
India stands at a pivotal moment in its space journey. Its scientific achievements have earned global recognition, but without a robust legal foundation, the momentum could falter. A well-crafted national space law would align India’s domestic framework with its international obligations, provide certainty to investors and innovators, and help secure its place as a leader in the global space economy by 2047.