India’s decision in 2020 to open its space sector to private players has spawned startups, private investment and a widening repertoire of authorised activities. Yet, despite the growth, the country does not have a single, overarching Space Act enacted by Parliament to give statutory backing to the regulatory framework, raising fundamental questions about regulatory authority, legal rights, liability and India’s ability to meet international commitments.
Framework without a foundation
The government has taken a number of steps to enable non-governmental participation. The creation of IN-SPACe as the authorising and regulatory body, together with the Indian Space Policy, 2023, and supporting administrative norms, has provided a structure under which private activity can proceed. But those measures are administrative instruments and policy statements, not legislation.
That distinction matters. Without an Act passed by Parliament, there is no single statute defining the powers of the regulator, the legal process for granting or withdrawing clearances, or the rights of firms that face regulatory action. Other unresolved issues include the apportionment of liability when incidents occur, the scope and enforceability of insurance or financial guarantees, and the treatment of ownership and transfer of space assets.
Why the gap matters now
When the sector was nascent, a reliance on policy and administrative authorisations may have been tolerable. With private capital now flowing and a commercial ecosystem developing, the absence of statutory safeguards has moved from an inconvenience to a structural problem, according to the analysis in the source material.
Key concerns that are raised by the continued reliance on executive instruments include:
- Clarity on the scope of IN-SPACe’s powers and the legal basis for authorisations.
- Procedures for appeals, enforcement and dispute resolution when authorisations are modified or revoked.
- Rules on liability, insurance and financial guarantees in the event of launch failures, debris or cross-border damages.
- Legal definitions concerning ownership, transfer and registration of spacecraft and related assets.
- Mechanisms to ensure India can meet its international obligations when private entities conduct space activities.
International practice and India’s position
Most major spacefaring nations have placed their commercial and civil space regimes on statutory foundations. The source notes that the United States has developed its framework through several Acts covering civil space, commercial launch and re-entry, and remote sensing. Several other countries — including France, Japan, Australia, Russia, South Korea and the UAE — have also enacted legislation dealing with authorisation, launches, spacecraft safety and liability.
| Country | Legislation noted in analysis |
|---|---|
| United States | Multiple Acts (civil, commercial launch, remote sensing) |
| France | Has enacted space legislation |
| Japan | Has enacted space legislation |
| Australia | Has enacted space legislation |
| Russia | Has enacted space legislation |
| South Korea | Has enacted space legislation |
| UAE | Has enacted space legislation |
| India | No single Space Act; relies on policy and administrative norms |
Being without a statute can make India an outlier among peers, the source argues, and complicates how India will discharge its international responsibilities under treaties and customary law when private actors undertake space operations.
What a Space Act would do
A dedicated law would codify the authority of the regulator, set transparent processes for authorisation and revocation, define liability regimes, prescribe insurance and financial-security requirements, and clarify ownership and transfer rules. It would also create legal certainty for investors and entrepreneurs and provide a predictable legal environment for international cooperation.
Policy-makers in New Delhi have debated the need for legislation prior to opening the sector; the source notes that planning for a Space Act predates the 2020 reforms. The current policy instruments — while enabling rapid growth — are not a substitute for parliamentary legislation, the analysis concludes.
As private activity expands and the stakes rise, the call for a statutory foundation for India’s space governance is likely to grow louder from industry, legal experts and international partners.
