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Space Law and India: Regulation of Outer Space Activities and Private Sector Participation

September 6, 2025

The twenty-first century has been described as the century of space exploration. Countries across the world are investing in satellite technology, space mining, interplanetary missions, and even commercial tourism. India, with its strong base in science and technology, has emerged as a significant player in this new space race. From the early days of launching sounding rockets in Thumba to the success of the Chandrayaan-3 mission that placed India on the lunar south pole, the nation has demonstrated remarkable capabilities. Yet, as activities multiply, the need for a coherent legal and regulatory framework becomes pressing. This is where space law in India comes into focus — a field that remains nascent but is fast evolving.

The Origins of International Space Law

Space law globally is rooted in international treaties developed under the United Nations. The most important of these is the Outer Space Treaty, 1967, to which India is a signatory. This treaty lays down broad principles: space shall be free for exploration by all, it shall not be subject to national appropriation, and activities in space shall be conducted for the benefit of all humankind. Other treaties include the Rescue Agreement, 1968, the Liability Convention, 1972, and the Registration Convention, 1976. These treaties form the backbone of obligations for states, but they leave many questions unanswered, especially about private activities, resource exploitation, and commercialization.

For decades, outer space activities were the monopoly of governments. However, with technological progress and the rise of private enterprises like SpaceX, Blue Origin, and Virgin Galactic, the frontier has shifted. India too has entered this new era, and its legal framework must now grapple with regulating not only public but also private ventures.

India’s Journey in Space Exploration

India’s space journey began in the 1960s, driven by the vision of Dr. Vikram Sarabhai, who believed that space technology should be harnessed for development. The establishment of the Indian Space Research Organisation (ISRO) in 1969 laid the foundation for indigenous capability. Over the years, ISRO developed launch vehicles such as the PSLV and GSLV, placed satellites in orbit for communication and weather monitoring, and sent missions to the Moon (Chandrayaan-1 and Chandrayaan-3) and Mars (Mangalyaan).

Despite these scientific achievements, India lacked a dedicated space law. The activities were governed largely by government policies and guidelines, with ISRO functioning as both operator and regulator. This dual role was adequate when space was state-controlled, but it became problematic once private sector interest grew.

The Push for Private Sector Participation

A watershed moment came in 2020 when the Government of India announced major reforms in the space sector. These reforms aimed to open the sector to private participation and separate the roles of policymaking, regulation, and operation.

The creation of the Indian National Space Promotion and Authorization Centre (IN-SPACe) was central to this vision. IN-SPACe acts as a single-window facilitator for private companies, enabling them to use ISRO’s facilities, participate in satellite launches, and even develop their own systems. Alongside, the New Space India Limited (NSIL) was established to commercialize ISRO’s technologies.

These changes meant that private startups like Skyroot Aerospace, Agnikul Cosmos, and Pixxel could now enter the field. In fact, in 2022, Skyroot became the first Indian private company to launch a rocket (Vikram-S), marking a milestone in the country’s space sector liberalization.

The Indian Space Policy, 2023

Recognizing the need for clarity, the Government unveiled the Indian Space Policy, 2023. This policy sets the vision for space activities in the coming decades. Its key features include:

  • Defining roles for different stakeholders — ISRO focuses on research and development, IN-SPACe handles regulation and authorization, and private entities engage in operations and commercialization. 
  • Emphasizing capacity building, technology development, and innovation. 
  • Encouraging international cooperation in line with India’s treaty obligations. 
  • Promoting responsible and sustainable use of outer space, keeping in mind issues such as space debris. 

While the policy is a step forward, it is still not a comprehensive law. Critics argue that without parliamentary legislation, questions of liability, dispute resolution, and ownership of resources remain unresolved.

The Need for a Comprehensive Space Law

India currently regulates space activities through policies, guidelines, and executive orders. However, this fragmented approach leaves gaps. For instance, what happens if a private Indian satellite collides with another country’s spacecraft? Under the Liability Convention, 1972, India as a state would be internationally liable, but who bears responsibility domestically — the government or the private company?

A national space law would clarify such issues. It would also address:

  • Licensing and authorization: How private players obtain permission and under what conditions. 
  • Liability and insurance: Allocation of risks between government and private entities. 
  • Intellectual property: Rights over technologies developed in collaboration with ISRO. 
  • Space mining: The legal status of extracting resources from asteroids or the Moon. 
  • Space debris management: Obligations of operators to avoid contributing to orbital clutter. 

Countries like the United States and Luxembourg have already passed laws enabling private space mining and commercialization. India must decide whether to adopt a similar approach or align with the global principle of space as the “province of all mankind.”

Judicial Silence and Constitutional Dimensions

Interestingly, Indian courts have not yet had the opportunity to pronounce on issues of space law. However, constitutional principles such as Article 51 (promotion of international peace and security) and Article 21 (right to life and environment) could be invoked in future disputes. For instance, if space debris from a satellite causes damage on Earth, victims may rely on the right to life and environment for compensation.

The judiciary may also be called upon to balance national security interests with commercial freedoms, much as it has done in telecom and internet cases.

International Cooperation and Geopolitical Role

India’s space program has always had an element of diplomacy. Through projects like the South Asia Satellite, India has provided services to neighboring countries, enhancing regional cooperation. With private participation, India could emerge as a global hub for affordable satellite launches, competing with SpaceX and Arianespace.

However, this also raises geopolitical concerns. Militarization of space, anti-satellite weapons (ASAT), and dual-use technologies blur the lines between peaceful and military activities. India conducted its first ASAT test in 2019 (Mission Shakti), joining the club of space powers, but this also drew criticism for creating space debris. Any national space law must therefore integrate security considerations with commercial ambitions.

Challenges Ahead

Despite optimism, several hurdles remain:

  • Regulatory clarity: The Indian Space Policy is still only an executive document. Parliamentary legislation is required for legal certainty. 
  • Investment climate: Private players need assurance of property rights, intellectual property protection, and stable regulatory frameworks. 
  • Technology transfer: ISRO must balance national security with the need to share technology. 
  • Sustainability: With increasing launches, space debris poses a serious risk to satellites and human missions. 
  • Global governance: India must navigate tensions between developed countries that promote commercialization and developing countries that stress equity in access. 

Conclusion

India’s space journey has been one of extraordinary achievement, driven by visionaries and powered by scientific excellence. But as the country steps into a new era where private companies, startups, and even universities participate in space activities, the law must keep pace. A comprehensive space law is no longer optional; it is essential to regulate activities, protect national interests, and fulfill international obligations.

The coming decade may see not only more Indian missions to the Moon and Mars but also private satellites, commercial launches, and perhaps even asteroid mining ventures. If India succeeds in marrying its scientific strength with a robust legal framework, it could become not just a spacefaring nation but a leader in shaping the global order of outer space.

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