National Space Law: Why India needs a space legislation?

The Indian space programme is leaping bounds with a crucial element missing- a national space law that provides a clear legal, regulatory, and commercial framework for space activities. Read here to know why India needs a National Space Law Urgently.

“A nation with a strong base in science and technology is a nation with a strong backbone”, these words of A.P.J. Abdul Kalam ring truer than before as India celebrated its second National Space Day on August 23.

India’s space programme has achieved remarkable milestones, from the success of Chandrayaan-3 in 2023 to the upcoming Gaganyaan human spaceflight mission and ambitious projects like the Bharat Antariksh Station and deep-space explorations.

India is also nurturing a booming private space ecosystem, with over 190 space-tech startups working on launch vehicles, satellites, and downstream applications.

What does the Outer Space Treaty (1967) stipulate?

India is a signatory to the Outer Space Treaty (OST), 1967, which forms the cornerstone of international space law.
Key provisions:

• Non-appropriation principle: Outer space, including the Moon and celestial bodies, cannot be claimed by any country (no sovereignty).
• Peaceful use: Space is to be used only for peaceful purposes, prohibiting placement of nuclear weapons or WMDs in orbit.
• Responsibility & liability: States are internationally responsible for all space activities carried out by both government and private entities. They are liable for damages caused by space objects launched from their territory.
• Non-contamination: Space exploration must avoid harmful contamination of celestial bodies and Earth.

Is it self-executing?

No. The OST provides broad principles but does not prescribe detailed rules or mechanisms for national implementation.

• Countries are expected to enact domestic legislation to regulate private space actors, assign responsibility, and manage liability.
• Without national law, obligations remain vague, and enforcement is weak.

Why must countries enact their own national space legislations?

• Compliance with International Law: To meet obligations under OST and related treaties (Liability Convention 1972, Registration Convention 1976).
• Private Sector Regulation: With private players entering the fields of satellite launches, space mining, and tourism, national law is needed to regulate licensing, safety, and liability.
• Investor Confidence: Clear laws ensure ease of doing business for startups, investors, and foreign collaborations.
• Liability Management: Under the OST, the Indian state is liable for damages caused by any object launched from India — even if it is launched by a private startup. Law is needed to assign risk and liability properly.
• Space Security & Governance: To prevent misuse of space for militarisation or environmental damage.
• Global Standing: Countries with strong domestic frameworks (like the US, Luxembourg, and UAE) attract global investment and enhance diplomatic credibility.

What has been India’s approach to space legislation?

India has been cautious and slow-moving when it comes to space legislation.

• Indian Space Policy, 2023, opened the sector to private players and set roles for ISRO, IN-SPACe, and NSIL. However, this is a policy document, not a law.
• Draft Space Activities Bill (2017): Proposed licensing of private entities, liability caps, and insurance mechanisms. But it lapsed without being tabled in Parliament.
• Currently, regulation relies on executive decisions, guidelines, and MOUs, creating uncertainty for startups and foreign collaborators.

India’s Current Space Regulatory Framework (Pre-Space Law)

Even though India lacks a comprehensive national space legislation, a few policy instruments and guidelines provide interim governance for space activities:

1. Catalogue of Standards for the Space Industry (2023)

• Aimed at the safety and reliability of space operations.
• Provides technical standards and best practices for the design, testing, and operation of space systems.
• Covers areas such as satellite integrity, launch safety, ground station operations, and debris mitigation.
• Ensures that Indian private players meet international benchmarks, allowing integration into the global space supply chain.

2. Indian Space Policy (2023)

• First comprehensive policy framework to encourage non-governmental entities (NGEs) in space.
• Defines the roles of key institutions:
  • ISRO– focus on R&D, advanced missions, and strategic projects.
  • IN-SPACe– single-window authorisation and regulator for the private sector.
  • NSIL (NewSpace India Ltd.)- commercial arm for ISRO’s technologies.
• Encouraged activities:
  • Satellite communication & remote sensing.
  • Space exploration & planetary missions.
  • Launch vehicle and reusable space tech development.
• Objective: Promote innovation, private investment, and international partnerships.

3. IN-SPACe Norms, Procedures and Guidelines (NPG) for Authorisation (2024)

• Implements the Indian Space Policy, 2023.
• Provides a detailed authorisation framework for private sector participation.
• Covers:
  • Establishing satellites in orbit (communication, Earth observation, R&D).
  • Ground segment activities (ground stations, control centres, tracking systems).
  • Spectrum coordination and orbital slot management.
  • Ensuring compliance with national security and international obligations.
• Establishes step-by-step processes for approvals, licensing, and compliance monitoring.

Why is creating affordable insurance frameworks for space startups crucial?

Space activities involve high risk and high cost- a failed satellite launch can cause losses of hundreds of crores.

Collisions or debris can trigger international liability claims against India under the OST.

Challenges:

• Insurance premiums for launches are extremely high, often unaffordable for startups.
• Lack of clarity on liability caps deters foreign investors and partners.

Importance of affordable frameworks like a national space law:

1. Risk-sharing: Distributes risk between government, private actors, and insurers.
2. Boosting Startups: Encourages innovation by reducing the fear of catastrophic financial loss.
3. Investor Confidence: Insurance-backed ventures are more attractive to investors.
4. Global Competitiveness: Countries like the US cap liability for private players, with the government providing backup. India needs similar mechanisms.

Way Forward

• Enact a National Space Law: Clearly define licensing, liability, insurance, dispute resolution, and environmental safeguards.
• Cap Liability for Startups: Protect private entities while ensuring compliance with OST obligations.
• Affordable Insurance Models: Create public-private insurance pools, reinsurance mechanisms, and risk-sharing agreements.
• Encourage Innovation: Provide incentives for satellite manufacturing, space mining, and reusable launch vehicles.
• Promote Space Diplomacy: India can lead the Global South in shaping inclusive space governance.

Conclusion

India is at a critical juncture in its space journey. Its scientific achievements are globally celebrated, but without a robust legal launchpad, progress risks stalling.

A national space law would not only safeguard India’s international obligations but also unlock the economic potential of space startups, ensuring India becomes not just a spacefaring nation but a space leader by 2047.