India is entering a new era of space exploration with  lunar success, Gaganyaan, and the proposed Bharat Antariksh Station. Yet, one critical element is missing, a national space law. While India has ratified global treaties like the Outer Space Treaty (1967), it lacks a domestic legal framework to regulate private participation, ensure liability, and attract investment. As space activities expand beyond government agencies to startups and private players, the absence of clear laws poses risks to accountability, innovation, and global competitiveness.

The Urgency of a National Space Law

1. Major milestone vs. missing law: India’s scientific achievements are unmatched, but the legal architecture remains absent, risking accountability gaps.
2. Private participation: With startups entering, lack of clarity on licensing, FDI rules, liability, and insurance creates operational hurdles.
3. International responsibility: Under the Outer Space Treaty, India is responsible for both governmental and private activities, yet it lacks the domestic framework to enforce compliance.
4. Global contrast: Countries like the U.S., Japan, and Luxembourg already have national legislation that provides legal certainty and attracts investment.

Principles of the Outer Space Treaty

1. Foundational principles: Space is the province of all mankind, prohibiting national appropriation and militarisation.
2. State responsibility: Nations are responsible for activities in space, whether by state or private entities.
3. Liability framework: Countries bear liability for damages caused by their space objects.
4. Not self-executing: According to UNOOSA, national laws are essential to translate treaty principles into enforceable domestic regulations.

India’s Incremental Approach to Space Legislation

1. Methodical strategy: India is incremental and cautious, ensuring technical regulations precede overarching law.
2. Catalogue of Indian Standards: A framework to ensure safety of space operations.
3. Indian Space Policy (ISP), 2023: Encourages non-governmental participation in space activities.
4. IN-SPACe Norms, Guidelines and Procedures (NPG): Provide procedures for authorisation of space activities.
5. Pending gap: The broader Space Activities Law that incorporates treaty obligations is still not enacted.

Industry Concerns and Operational Challenges

1. Statutory authority gap: IN-SPACe lacks formal legal backing, leaving decisions open to procedural challenges.
2. Licensing and delays: Companies face multiple ministry clearances, creating uncertainty.
3. FDI rules: Industry demands clarity, such as 100% automatic FDI in satellite components to attract capital.
4. Liability and insurance: While India is internationally liable, companies need affordable third-party insurance to cover risks.
5. Intellectual property protection: Current frameworks risk talent and tech migration to IP-friendly nations.
6. Space debris management: Absence of mandatory accident investigations and debris laws increases operational risks.

The Importance of Affordable Insurance for Space Startups

1. High-value assets: Satellites and payloads involve massive investments; startups cannot absorb losses alone.
2. Global liability: India bears responsibility internationally, so private players must secure third-party insurance.
3. Investor confidence: Insurance frameworks encourage investors, reducing risk aversion.
4. Innovation support: Affordable insurance ensures startups can experiment and grow, without fear of crippling liability.

Conclusion

India’s space programme has made historic strides, but without a comprehensive national space law, its progress risks being undermined by regulatory gaps. A forward-looking framework ensuring clarity, liability management, insurance, IP protection, and statutory backing for IN-SPACe is essential to balance innovation with responsibility. The future of India’s space leadership will depend as much on strong laws as on strong rockets.

Mapping Microthemes

• GS Paper II (Governance, International Relations):

• • Outer Space Treaty (1967) – India’s obligations and global responsibility
  • Role of UNOOSA – multilateral governance of outer space
  • Need for National Legislation – predictability, legal clarity, statutory backing for IN-SPACe

• GS Paper III (Science & Technology, Economy, Security):

• • Growth of India’s Space Economy – Chandrayaan-3, Gaganyaan, startups, private players
  • Insurance and Liability – affordability for startups, international responsibility for damages
  • Intellectual Property Rights – preventing brain drain, encouraging innovation
  • Space Debris Management – sustainability and accident investigation procedures
  • Dual-Use Technology Challenge – balancing civilian and defence aspects

• GS Paper IV (Ethics & Governance):

• • Accountability in Outer Space – who bears liability for damage?
  • Ethics of Space Exploration – sustainability, “province of mankind” principle
  • Equitable Access – preventing monopolisation of space resources by few nations

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