In News:

India’s space programme has made remarkable strides in recent years, with missions such as Chandrayaan-3, the upcoming Gaganyaan human spaceflight, and plans for the Bharat Antariksh Station. Alongside, private participation in launch services, satellite communication, and space-based applications has grown significantly. However, despite being a signatory to key international treaties like the Outer Space Treaty (OST) 1967, India still lacks a comprehensive national space legislation. This gap creates uncertainty for private enterprises, investors, and regulators, making a space law an urgent necessity.

International Context and Treaty Obligations

The OST of 1967 provides foundational principles:

• Outer space as the common heritage of mankind with no claims of sovereignty.
• Activities limited to peaceful purposes and free scientific exploration.
• State responsibility for activities conducted by both government and non-government actors.
• Liability of states for damage caused by space objects launched from their territory.

While India is bound by these obligations, the treaty is not self-executing. National legislation is required to translate these commitments into enforceable domestic rules. Many countries such as the U.S., Luxembourg, Japan, and UAE have enacted laws clarifying ownership, licensing, and liability frameworks, thereby attracting global investments in their space sectors.

India’s Current Approach

India has followed an incremental strategy, relying on policies and guidelines rather than legislation:

• Indian Space Policy, 2023 → opens space activities to private players.
• IN-SPACe Norms and Guidelines, 2024 → provides authorization mechanisms.
• Catalogue of Indian Standards for Space Industry, 2023 → ensures safety and quality.

However, these are executive measures without statutory authority. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) currently functions without legal backing, undermining its ability to act as a credible single-window regulator.

Key Challenges in the Absence of a Law

• Regulatory Fragmentation: Space activities involve multiple ministries (Defence, Telecom, Commerce, DoS), leading to duplication and delays. For instance, satellite communication projects require parallel clearances from DoT, Defence, and ISRO.
• Liability Concerns: Under OST, India is internationally liable for damages caused by private launches. Without domestic liability-sharing norms, startups face prohibitive insurance costs.
• FDI Uncertainty: India allows partial FDI in satellite manufacturing, but unclear automatic routes deter investors. Competitor nations offer liberal FDI frameworks, drawing startups away.
• Intellectual Property Issues: Ambiguity in IP ownership discourages innovation and risks talent migration to IP-friendly jurisdictions.
• Innovation Barriers: Overlapping clearances and unclear rules delay project timelines, stifling private-sector growth.

Way Forward

• Comprehensive Space Activities Law: Clearly define licensing, liability, insurance, IP rights, and dispute resolution in line with OST.
• Statutory Empowerment of IN-SPACe: Grant it legal authority as an independent single-window regulator with transparent, time-bound processes.
• Insurance Framework: Establish government-backed reinsurance pools to make liability coverage affordable for startups.
• Liberalised FDI Norms: Allow 100% FDI in satellite component manufacturing under the automatic route with safeguards for national security.
• IP and Innovation Ecosystem: Protect private patents, encourage industry–academia collaboration, and retain domestic talent.

Conclusion

India stands at a decisive moment in its space journey. The absence of a comprehensive space law risks slowing down private participation, deterring investment, and exposing the country to unmitigated liability under international law. Enacting robust legislation would not only provide clarity and predictability but also align India with global best practices, nurture its commercial space ecosystem, and position it as a trusted global leader in space governance. With India aspiring to host major international space events and expand its presence in global markets, the urgency for a national space law has never been greater.