This article is written by Nwokorie Sophia Chukwudumebi of University of Benin(Nigeria) during her internship at Ledroit India
Abstract
Once confined to government-led missions and geopolitical competition, outer space has emerged as a significant arena for commercial activity driven by private enterprises. This shift has transformed space exploration into a viable economic frontier, raising complex legal questions concerning regulation, liability and governance. In India, recent policy initiatives, particularly the establishment of IN-SPACe, have enabled private participation in satellite launching and plans for private space infrastructure, positioning the country within the global space economy. Private space companies in India are making a significant impact on the global stage, attracting attention for their advanced technologies and innovative services that are setting new global standards.
With the involvement of private players in satellite development, launch services, and ambitious space exploration projects, India’s space infrastructure is being utilised to push the nation to the forefront of the global space race. Nevertheless, this exciting change comes with its fair share of difficulties. Thus, this article examines the legal framework governing space commerce, with a focus on an analysis on private space stations and satellite frameworks, and highlights the urgent need for comprehensive domestic regulation to support commercial growth while ensuring compliance with international obligations. Vis a vis propose recommendations and solutions to challenges faced by these ventures.
Keywords
Space Commerce, Private Space Enterprises, Satellite frameworks,Space Station, IN-SPACe, Space Law and Regulation.
INTRODUCTION AND HISTORY
“A Space Act would help the government deal with legal issues arising from objects put up in space and for what happens to them in orbit, or because of them.”
In India, space has traditionally been the exclusive province of the government. It has only been opened up to the private sector, as it will assist in getting objects into orbit and possibly beyond, allowing the private sector to provide commercial services. While the government will oversee and supervise what goes into space, it will make certain that the industry is not too regulated, as this will discourage investment or cause it to crash in jurisdictions with less severe regulatory standards.
It was past time for India to gain a foothold in the international space community. With the launch of Sputnik in 1957 by the then-Soviet Union, all nations began to explore deeper. In the post-independence period, India has focused on developing, launching, and operating satellites using indigenous technologies. In 1962, it established the Indian National Committee for Space Research, which is now known as the Indian Space Research Organization (hereinafter referred to as ISRO).
By 2007, it had paid off, as India had launched Chandrayan-I, the world’s first unmanned spacecraft, to the moon. The Memorandum of Understanding between India and the National Aeronautics and Space Agency (NASA), the European Space Agency (ESA), Bulgaria, and several other accords demand for India to establish and reform its national space strategy. As a result, in the last half-century, ISRO has launched over 300 satellites for 33 different countries, which is a great achievement.
BACKGROUND TO ISRO
The Indian Space Program is organized in a hierarchical framework, with the Office of the Prime Minister overseeing all operations and exercising control over the program through the Space Commission and the Department of Space. The Department of Space is in charge of enforcing this policy. ISRO is primarily responsible for space research and development. The Indian Space Program’s major goal is to apply space technology to national development while also performing space science research and planetary exploration.
With its world-shocking inexpensive space expeditions and ground-breaking accomplishments, the Indian Space Research Organisation (ISRO) has recently risen to fame. However, now ISRO is doing something even more thrilling, powering private businesses to unprecedented heights and igniting an uproar in the nation’s space sector. ISRO, which was once the only space agency in the country, is now actively supporting a thriving entrepreneurship and privately owned ecosystem. A new era of creative thinking and entrepreneurial endeavour is being propelled by ISRO through the inauguration of its state-of-the-art facilities, the passing on of millennia of knowledge, and the implementation of revolutionary programs such as the Space Entrepreneurship and Enterprise Development (SEED) program.
THE OUTER SPACE TREATY, 1967
State Parties to the Outer Space Treaty bear international responsibility for national activities in outer space including the moon and other celestial bodies, whether such activities are carried out by governmental or non-governmental entities (NGO) and for assuring that national activities are carried out in conformity with the provisions set forth in the Outer Space Treaty. In other words a ratifying State is bound to the principles of exploration and use of outer space for peaceful purposes, international cooperation, no national appropriation and no weaponization. Furthermore, the State is bound to ensure that all such activities are duly authorized and carried out under its continuing supervision.
The Outer Space Treaty imposes liability for damage by making a launching state internationally liable for damage to another State Party, its own natural or juridical person on earth, air and outer space, if its space object or component causes damage.
- The Rescue agreement, 1968:
The agreement on the rescue of the astronauts, the return of astronauts and the return of objects launched into space gives detailed resolution on the duty imposed on the State parties in Article V of Outer Space Treaty.
- The Liability convention, 1972:
Article 7 of the Outer Space Treaty details the liability of the launching state, which is liable to pay compensation for damages caused by its space objects on the surface of Earth or to aircraft and liable for damage due to its faults in space.
In this context, the most important thing to be noted is that under the liability convention, it is not the private person who is held liable but the State to which it belongs is held internationally liable. Thus, the States should have national laws to ensure that their specific interests are protected while entering into a contract with any other international entity in areas which call for collaborative space R&D and also to limit liability in cases of damage. But, non-existence of national laws does not absolve liability under this convention.
- The Registration convention, 1974:
The registration convention requires the launching State to address issues relating to State Parties Responsibilities concerning space objects and requires the launching State to maintain the register of the object launched by them in space.
- The Moon agreement, 1979:
The agreement details and reaffirms that the celestial bodies should be used exclusively for peaceful purposes and that their environment should not be disturbed. It states that the moon and other celestial bodies are the common heritage of mankind and no country should assert claim on it.
It is to be well noted that India is a signatory to all these conventions and treaties which forms the main corpus of international law on outer space. India has also been actively participating and extending support to a variety of International forums such as United Nations Committee on Peaceful Uses of Outer Space (UNCOPUOS), International Council of Scientific Unions (ICSU), and International Astronautical Federation (IAF) etc. in shaping global space and law policy. Even though India is a member to all these treaties it still has no comprehensive legislation on space related matters.
India’s space sector as mentioned above has been under the control of the government which did not necessitate the need for comprehensive space laws in India. But, as India takes a leap towards privatization it becomes imperative for India to have a dedicated space law.The existing regime of Indian space law is non-extant to say for time being as the entire space law in India is contained in the following policies: –
A POLICY FRAMEWORK FOR SATELLITE COMMUNICATIONS IN INDIA (SATCOM)
In 1997, the Department of Space framed the Satellite Communication policy, 1997 (SATCOM Policy). Considering the expanse and future possibilities of space activities in India, one would expect this document to be voluminous, running into hundreds of pages containing guidelines for advancement of satellite, telecommunication, broadcasting and exploration of space and other service but what the government released what a meagre 2-page 5-pointer policy. It remains the only policy governing satellite communication in India.
It laid inter alia the development of satellite communication, launch capabilities and encouraging private investment in the space industry. But, the government soon realized the insufficiency of the policy and framed the norms, guidelines & procedure for the SATCOM policy.
Norms, Guidelines and procedure (SATCOM) policy, 2000:
The norms laid the procedures to be followed for setting up the satellite system by private Indian companies having less than 74 per cent foreign equity. The policy formed various sub-committees to sanction and authorize the use and rules on sharing of the INSAT satellite system by private companies on a commercial basis on capacity and capability of transponders and satellite networks.
Remote data sensing policy, 2011:
The government allowed the transfer of high resolution imaging services up to 1 meter to be distributed on a non-discriminatory and on as requested basis freely to be readily available for private use excluding the sensitive imagery data of crucial defense installation in the countryThe policy, apart from opening the remote sensing sector, will remove restrictions to facilitate more users’ access to high resolution data for developmental activities.
The technology transfer policy of ISRO: The technology transfer policy of ISRO is aimed at increasing the private participation and investment in the space sector by outsourcing the manufacturing of satellite components, space radars, rocket engines, batteries, space electrical components and optical camera components to national as well as international companies. This will help ISRO focus its entire manpower on R&D thereby opening better avenues for the country in outer space.
SPACE ACTIVITIES BILL
An ambitious move towards improving and standardising India’s strategy for space, the Space Activities Bill is poised to revolutionise India’s space economy. The purpose of this bill, which is now in the legislative process, is to establish clear rules for all space operations in India, whether they are carried out by the state or independent businesses.
The main goal of the Space Activities Bill is to promote creativity while guaranteeing the safe and sustainable execution of space operations. To ensure that missions to explore the universe and satellite deployments comply with international treaties and serve India’s national interests, it seeks to control all of these things. Excitingly, the Bill encourages private sector involvement, which is a big change from the conventional government-dominated approach to space.
The goal of the legislation is to encourage private ventures and creative thinking in the field of space exploration so that India can take the lead in the international space race[6]. Building a thriving space environment is more important than merely launching rockets; it will allow both new and existing businesses to flourish, make contributions to innovative technology, and increase India’s presence in space.
On the other hand, the bill guarantees that space activities do not endanger national security or world peace and imposes stringent licensing prerequisites. Fostering development while guaranteeing that all participants maintain rigorous levels of accountability and protection is an intricate dance.
The Space Activities Bill is expected to play a pivotal role in India’s upcoming space program, opening the door to increased investment, technological advancement, and research in the country’s space industry.
CHALLENGES IN REGULATING PRIVATE SPACE VENTURES
India faces significant regulatory challenges in governing private space ventures, primarily due to the absence of a clear and comprehensive legal framework. Although the proposed Space Activities Bill seeks to regulate private participation, ambiguities surrounding licensing requirements, regulatory standards and risk allocation continue to create uncertainty for private actors. As a party to international instruments such as the Outer Space Treaty and the Liability Convention, India remains internationally accountable for space activities conducted by private entities, making the licensing process cautious, complex and highly supervised.
Institutional overlap further complicates authorisation procedures. The historically dominant role of ISRO, coupled with the regulatory functions of IN-SPACe and the Department of Space, often results in bureaucratic delays and jurisdictional uncertainty. Prolonged approval timelines, extensive risk assessments and overlapping supervision discourage timely private sector participation and investment. In addition, the existing framework does not sufficiently address risk-sharing mechanisms between the state and private operators, thereby affecting the commercial viability of private space activities.
Liability remains another critical challenge. Under international space law, states bear responsibility for damage caused by space objects launched under their authority, regardless of private involvement. The distinction under the Liability Convention between absolute liability for damage on Earth and fault-based liability in outer space exposes private operators to significant legal and financial risks. Securing adequate insurance coverage for such high-risk operations remains difficult, highlighting the need for domestic legislation that clearly allocates liability, mandates insurance standards and establishes effective supervisory mechanisms.
PROPOSED SOLUTIONS AND RECOMMENDATIONS
To provide the statutory certainty required for India’s burgeoning space sector, the legal framework must move beyond discretionary policy to a robust ‘regulatory lock’ of parliamentary law. The following analysis outlines strategic solutions for satellite frameworks and private space stations, drawing upon the visual metaphors of authority and exclusion found in your references.
Firstly, the transition of India’s space sector from a state monopoly to a ‘New Space’ ecosystem requires a legal architecture as secure as the digital locks used to protect high-stakes terrestrial interests. Commercial value in orbit is inherently tied to sovereign control and legal certainty. To protect the projected $44 billion space economy, India must move beyond the ‘legislative void’ of executive policy and implement a three-tiered statutory framework.
The primary solution to licensing hurdles is the enactment of a comprehensive National Space Act. Reliance on the Indian Space Policy (ISP) 2023 is currently insufficient because executive policies lack the permanence of parliamentary law, leaving authorizations by the Indian National Space Promotion and Authorization Centre (IN-SPACe) vulnerable to ultra vires challenges. A statutory framework must codify a ‘single-window’ interface with time-bound licensing and transparent fee structures, streamlining the bureaucratic overlap between the Department of Space and ISRO.
Secondly, to address the unmanageable risks imposed by the 1972 Liability Convention, India should adopt a ‘socialization of risks’ model.Just as the judge’s gavel in the provided images symbolizes the authority to balance competing interests, the state must balance its international liability with the economic survival of startups. India should implement a ‘Maximum Probable Loss’ (MPL) methodology to set reasonable insurance caps. This system comprising mandatory private insurance and state-backed indemnification for excess claims, shields satellite providers from the ‘unlimited liability’ that currently deters global investors.
Thirdly, mirroring the digital ‘lock’ seen in your visual references, India requires a robust jurisdictional framework for its orbital assets. For future private space stations, India should advocate for the principle of Lex Loci Originis (the law of the place of origin), ensuring that Indian domestic criminal, civil, and labor laws apply on board registered modules.This provides the jurisdictional clarity needed to ensure that high-altitude environments remain governed by Indian safety standards, shielding residents and operators from the legal ambiguity of the global commons.
COMPARATIVE ANALYSIS WITH OTHER COUNTRIES
The transition of the global space industry toward “New Space” is characterized by a shift from state-led exploration to a commercially driven ecosystem.
The United States: The United States serves as the universal forerunner, utilizing a robust legislative structure to foster private innovation. The Commercial Space Launch Act (CSLA) of 1984 established the foundational licensing framework, granting the FAA jurisdiction to oversee safety while providing the legal predictability necessary for private capital. This was further strengthened by the U.S. Commercial Space Launch Competitiveness Act (CSLCA) of 2015, which granted private entities ownership rights over resources extracted from asteroids and celestial bodies.
The U.S. success is largely attributed to its public-private partnerships, where NASA leverages agreements like the Commercial Crew Program to support entities such as SpaceX and Blue Origin. Unlike India’s current policy-driven approach, the U.S. provides a statutory “lock” that codifies liability limits and property rights, making it the most investor-friendly jurisdiction in the world.
The European Union: The European Union (EU) adopts a collaborative approach, balancing member-state sovereignty with regional standards. Governance is channeled through the European Space Agency (ESA) and the European Union Agency for the Space Programme (EUSPA). These bodies ensure that commercial satellite launches and private space data usage adhere to strict sustainability and security norms.
The EU framework focuses on harmonizing national laws such as those of France and Germany with international treaties. This ensures a competitive but well-regulated marketplace where private firms must secure specific permissions that mandate liability coverage and safety compliance, mirroring the protective mechanisms seen in the “portrait lock” of intellectual property law.
China: China maintains a more centralized strategy, though it is gradually opening to private participation. Current operations are governed by minimal regulations, such as the Measures for the Administration of Registration of Objects Launched into Outer Space (2001) and the Interim Measures on Licensing (2002). Oversight remains strictly within the Chinese National Space Administration (CNSA) and SASTIND.
While the regulatory environment has historically been opaque, there are ongoing debates regarding the enactment of a comprehensive national space law. This proposed legislation aims to provide the clarity needed for private sector expansion while ensuring that China meets its international obligations under the Liability Convention.
In comparison, India’s space governance framework remains fragmented and largely policy-driven, lacking the statutory certainty seen in the United States, the coordinated regional approach of the European Union, and the centralized clarity emerging in China. While India has taken commendable steps through IN-SPACe and the Indian Space Policy 2023, the absence of binding legislation continues to create uncertainty for private actors. Drawing from these jurisdictions, India should enact a comprehensive national space statute that codifies licensing, liability allocation and regulatory oversight, while promoting structured public–private partnerships and sustainable practices. Such reforms would align India with global best practices and provide the legal certainty necessary to support a competitive and resilient commercial space sector.
Conclusion.
As India seeks to emerge as a significant player in the global space economy, the need for comprehensive national space and satellite legislation has become imperative. The absence of a clear legal framework governing licensing, liability and security creates regulatory uncertainty, discouraging private investment and innovation. Enacting dedicated space and satellite legislations would also enable India to effectively fulfil its obligations under international instruments such as the Outer Space Treaty and the Liability Convention, in line with global best practices.
Furthermore, the growth of India’s space and satellite sector depends heavily on structured public–private partnerships. While recent policy initiatives encouraging private participation are commendable, clear statutory guidelines are necessary to facilitate collaboration between private enterprises and state institutions such as ISRO. Equally important is the incorporation of sustainability principles, particularly in relation to space debris management and responsible use of space resources, to ensure the long-term viability of space activities.
Ultimately, by establishing a robust legal framework that promotes private participation, regulatory certainty and sustainability, India can attract investment, strengthen innovation and secure its position among leading satellite and spacefaring nations.
