Need for a National Space Law in India | 22 Aug 2025

Source:TH 

Why in News?

On 23^rd August, India will observe its second National Space Day, highlighting upcoming missions such as Gaganyaan and the Bharat Antariksh Station.  

• However, while India’s space achievements continue to grow, the absence of a national space law threatens to slow its commercial, innovative, and global ambitions.

Why Does India Need a National Space Law? 

• Operationalise Global Commitments: India is a signatory to the Outer Space Treaty, 1967 and related UN agreements. These treaties establish principles like peaceful use of space, state responsibility for national activities, and liability for damages. 
  • United Nations Office for Outer Space Affairs (UNOOSA) treaties are not self-executing, countries must enact domestic space laws.   
  • The US, Japan, and Luxembourg have laws for licensing, liability, and commercial use. Without one, India risks non-compliance and falling behind globally. 
• Balance Domestic Gaps with Geopolitical Realities: While the Outer Space Treaty has held firm globally, rising tensions among space superpowers (US, Russia, China) threaten space governance. 
  • India must strengthen its domestic legal framework to safeguard its commercial interests, even as international uncertainties persist. 
• Provide Legal Certainty for Industry: Policies (like the Indian Space Policy 2023 and IN-SPACe Guidelines 2024) show intent but lack statutory force. 
  • A national space law would give Indian National Space Promotion and Authorization Center (IN-SPACe) legal authority as the central regulator, streamline licensing, reduce delays, and build investor confidence in India’s space sector. 
• Support Startups and Innovation: Startups face high risks with satellites and launch vehicles but lack affordable insurance. 
  • A law can mandate third-party liability coverage, establish clear frameworks for claims and accident investigations, provide affordable insurance for startups, and enforce strong IP protections to encourage R&D and prevent brain drain. 
• Manage Safety and Sustainability: A comprehensive law can set safety standards, manage space debris, establish accident procedures, and unify satellite frameworks, ensuring responsible space use and protecting India’s credibility. 

What Challenges Does India's Space Industry Face Without a National Space Law? 

• Regulatory Hurdles: Multiple ministries (Defence, Telecom, Commerce, Department of Space) handle approvals, causing duplication and delays. Satellite communication projects, for example, require simultaneous clearance from DoT, DoS, and Defence, hindering operations. 
  • IN-SPACe operates through executive orders, lacking formal legislative authority. This reduces investor confidence as regulatory decisions can be legally challenged. 
• Liability Concerns: Under the Outer Space Treaty, India is internationally liable for all space activities, including private launches. 
  • Startups face high entry barriers due to costly liability insurance requirements. 
• Foreign Direct Investment (FDI) Concerns: Limited FDI allowed in satellite manufacturing; unclear automatic approval routes deter foreign investors. 
  • India’s space industry seeks clear 100% automatic FDI in satellite components to attract investment. 
  • Competitor nations like Luxembourg and UAE attract space startups with more liberal investment policies. 
• Cybersecurity Threats: Satellites are vulnerable to hacking, GPS spoofing, and space-based espionage. India lacks an independent Space Cybersecurity Command or autonomous ISRO cybersecurity division, posing national security risks. 
• Climate Change and Infrastructure Risks: Coastal launch sites like Sriharikota and Thumba face climate threats. No legal requirement exists for climate adaptation measures, leaving infrastructure vulnerable to extreme weather. 
• Strategic Military Gaps: Delays in establishing space-based defense assets and integrated commands are exacerbated by lack of statutory support. 

What Measures are Needed to Enhance India’s Space Industry? 

• Provide Legal Backing: Enact a comprehensive space law to align with OST, define roles of government and private actors, and establish liability norms. 
• Expand Private Sector and Startup Participation: Fully implement New Space Policy 2023 to enable private development of launch vehicles, satellites, and deep-space tech. 
  • Strengthen IN-SPACe to streamline approvals and reduce bureaucratic delays. 
• Strengthen Space Traffic Management and Debris Mitigation: Establish an independent Space Traffic Management (STM) system to track and mitigate debris. 
  • Deploy active debris removal satellites using laser ablation and robotic arms. 
  • Enhance international cooperation via UNOOSA and IADC (Inter-Agency Space Debris Coordination Committee)  for sustainable space operations. 
• Enhance Cybersecurity and Space Asset Protection: Create a dedicated Space Cybersecurity Command under ISRO and DRDO. 
  • Strengthen satellite defenses with quantum encryption, AI-driven anomaly detection, and satellite firewalls.

Conclusion 

India’s scientific and technological achievements are undeniable, but a national space law is needed to ensure regulatory clarity, attract investment, protect startups, and promote sustainable, globally aligned space development.