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24 Apr 2025

Navigating-the-Cosmos-India-Legal-Framework-for-Private-Space-Ventures-and-International-Obligations

Navigating-the-Cosmos-India-Legal-Framework-for-Private-Space-Ventures-and-International-Obligations

Navigating the Cosmos: India's Legal Framework for Private Space Ventures and International Obligations

By Sura Anjana Srimayi

India’s space industry is undergoing a historic transformation. What was once an exclusive domain of the Indian Space Research Organisation (ISRO) has now evolved into a dynamic ecosystem with active private sector participation. This expansion, however, has outpaced the evolution of the legal and regulatory framework governing outer space activities in the country. The need for a robust, future-proof legal regime is more pressing than ever—not just for ensuring compliance with international obligations, but also to foster innovation, attract investment, and ensure sustainable exploration and use of outer space.

This article explores the emerging private space sector in India, examines India’s obligations under international space treaties, delves into the legal challenges of space debris and resource extraction, and offers a roadmap to secure India's role as a spacefaring nation in the 21st century.

I. The Rise of Private Space Enterprises in India: Confronting the Legal Vacuum

From ISRO Monopoly to Private Participation

India’s space sector was historically dominated by ISRO, a premier government-run organization known for cost-effective and successful missions. However, the landscape has shifted. Private companies are now venturing into satellite development, launch services, space-based applications, and remote sensing.

The Current Legal Landscape

Despite this progress, India lacks a comprehensive space law that governs private space activities. The principal legislative proposal, the Space Activities Bill, remains in draft form and has not been enacted. The absence of clear laws creates ambiguity around:

  • Licensing and authorization

  • Liability for damage

  • Intellectual property rights

  • Export control and security protocols

The establishment of IN-SPACe (Indian National Space Promotion and Authorization Centre) marks a strategic effort to integrate private participation, but its role remains underdefined in legal terms, limiting its effectiveness as a regulatory body.

Economic Implications

A fragmented regulatory environment hinders foreign direct investment and venture capital interest in Indian space startups. According to a joint report by the Indian Space Association (ISpA) and Ernst & Young, the Indian space economy could grow to $13 billion by 2025, provided there is a conducive legal and policy framework. Legal uncertainty reduces India’s competitiveness in the global space market, deterring potential collaborations and market access.

II. India and International Space Law: Commitments and Compliance

Treaties Ratified by India

India is a signatory to major international space treaties, including:

  • The Outer Space Treaty (1967): Declares outer space as the “province of mankind” and prohibits national appropriation.

  • The Liability Convention (1972): Assigns liability for damage caused by space objects.

  • The Registration Convention (1975): Requires states to register objects launched into outer space.

Domestic Implementation: Gaps and Opportunities

While India respects these treaty obligations, there is an urgent need to codify them within domestic law. The long-pending Space Activities Bill must ensure alignment with these treaties while addressing the operational realities of private players.

India’s active participation in UNCOPUOS (United Nations Committee on the Peaceful Uses of Outer Space) reflects its diplomatic commitment, but this needs to translate into actionable policy and regulation at home.

Challenges in Treaty Compliance

  • Monitoring private entities: Ensuring private actors follow international norms requires effective oversight mechanisms.

  • Reconciling national ambition and global norms: Balancing commercial interests with global peace, safety, and sustainability is complex but essential.

III. The Legal and Environmental Challenge of Space Debris and Resource Extraction

Space Debris: A Growing Threat

The proliferation of satellites and increased launch frequency have led to an exponential rise in space debris. According to the European Space Agency (ESA), over 36,500 objects larger than 10 cm are being tracked in Earth’s orbit.

India currently lacks a national legal framework to address:

  • Space debris mitigation protocols

  • Post-mission disposal

  • Remediation mechanisms for defunct satellites

Resource Extraction: Legal Grey Zones

Mining celestial bodies like asteroids or the Moon presents new frontiers—and new legal dilemmas. While the Outer Space Treaty prohibits appropriation, it remains silent on ownership of extracted resources, leaving room for interpretation.

International Instruments and India’s Role

India is not a part of the Artemis Accords, a U.S.-led initiative proposing non-binding principles for lunar exploration and resource use. Nevertheless, India should actively engage in:

  • Multilateral negotiations to shape global consensus on resource rights.

  • Drafting legal frameworks that address ethical, environmental, and commercial concerns.

Economic Stakes and Liability

Space resource extraction holds massive economic potential. However, without:

  • Clear liability clauses

  • Regulatory norms for private missions

  • Risk management protocols (including insurance)

Investments in this area may remain speculative. India must define how liability will be shared between government and private actors in case of damage from debris or failed missions.

IV. The Road Ahead: Policy Recommendations for India’s Space Future

To ensure a sustainable, competitive, and responsible space program, India must act decisively. The following steps are crucial:

1. Fast-Track the Enactment of the Space Activities Bill

This will:

  • Provide legal certainty to private players.

  • Define regulatory powers and processes.

  • Align domestic laws with international treaties.

2. Empower and Define IN-SPACe's Regulatory Role

  • IN-SPACe must have legal authority to issue licenses, enforce compliance, and monitor activities.

  • A statutory framework is needed for its functioning.

3. Develop National Guidelines for Space Debris

  • Create enforceable debris mitigation and remediation rules.

  • Collaborate with ISRO and private actors for tracking and managing debris.

4. Join Global Debates on Resource Exploitation

  • India should advocate for an inclusive and fair international legal framework.

  • Engage in treaties or protocols that define permissible activities and benefits-sharing mechanisms.

5. Promote Public-Private Partnerships (PPPs)

  • Allow private firms to collaborate with ISRO for R&D, launch capabilities, and joint missions.

  • Foster a culture of innovation and reduce public expenditure through shared risks.

6. Invest in Research & Development

  • Develop indigenous technologies for:

    • Debris removal

    • In-space manufacturing

    • Resource mining and utilization

7. Establish Robust Insurance Mechanisms

  • Encourage the development of specialized insurance products for space missions.

  • Define liability insurance requirements for private operators under law.

Conclusion: India's Moment in Space

India stands at a pivotal moment in its space journey. The transition from a state-led space program to a collaborative ecosystem involving private players demands a forward-looking and coherent legal framework. By harmonizing domestic regulations with international obligations, mitigating environmental risks like debris, and clarifying ownership of space resources, India can secure its place as a major global space power.

A well-regulated, innovation-friendly legal regime will be the rocket fuel for India’s ambition to lead not only in space exploration but also in shaping the future of space law and policy.

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Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.