With Skyroot Aerospace's successful Vikram-1 rocket launch, India has become the third nation where a private entity has independently developed and successfully launched an orbital rocket into the outer space.
An equally significant story lies behind the launch, which is the legal framework that allows private participation in India's space sector. At present, in absence of a comprehensive statutory enactment, the India's Space sector is only regulated by the following executive policies, norms and guidelines:-
1. Indian National Space Promotion and Authorization Centre (IN-SPACe) (2022)
2. Indian Space Policy (2023)
3. Liberated FDI Policy (2024)
4. Norms, Guidelines and Procedures for Authorization [NGP] (2024)
5. IN-SPACe Seed Fund Scheme (2023)
6. IN-SPACe Pre-incubation Entrepreneurship (PIE) Program (2024)
7. Establishment of Rs.1000 Cr. Venture Capital Fund (2024)
8. Establishment of Rs. 500 Crores Technology Adoption Fund (TAF) (2025)
9. Technology Transfer of Small Satellite Launch Vehicle (SSLV) to HAL (2025)
10. Establishment of Earth Observation (EO) satellite constellation on PPP model (2026).
The direct impact of these policy decisions has led to rapid expansion of India's commercial space ecosystem within a remarkably short time-frame. For instance, the number of start-ups involved in space related activities have reached to more than 400 as on date. The investment in space start-ups crossed more than USD 500 million, with nearly USD 150 million attracted in 2025 alone. India's space economy, is currently valued at USD 8 billion with a share of 2–3% in the global space economy.
However, despite these dedicated policies and procedural guidelines, India still does not have a dedicated 'Space Act' enacted by the Legislature. Such a statute is essential to safeguard the interests of both, the Government and the NGEs. Although a Space Activities Bill was first proposed in 2017 but the said Bill came under heavy criticism from both industry representatives and independent analysts, and never passed muster. After 8 years, the said Bill came to be re-drafted, which is currently under inter-ministerial consultation and is yet to receive Cabinet approval for introduction in the Parliament.
Legal complications rarely arise when a regulatory framework functions smoothly. However, the true test of the regulatory framework is only when practical issues arise:-
1. What is the legal remedy where a Private entity's application for authorization is refused by IN-SPACe after it has made substantial financial and technological investments in developing a launch vehicle?
2. What procedural safeguards which govern the suspension, modification or revocation of an existing authorisation, particularly where such action is taken days before the launch, on grounds of national security, public safety or public interest?
3. What are the legal consequences where a launch vehicle suffers a mission failure due to reasons beyond the private entity's control, resulting in third-party damage or international claims against India under the Outer Space Treaty, 1967 and the Liability Convention, 1972?
4. What remedies are available to a private entity challenging regulatory decisions relating to licence conditions, insurance requirements, financial guarantees, operational restrictions imposed by IN-SPACe?
5. What remedies are available to the Government when a private entity claims ownership over a celestial object, which is in direct conflict with international treaties?
6. What is the statutory and constitutional source of IN-SPACe's powers?
7. In the absence of a dedicated appellate mechanism, what is the appropriate forum for seeking judicial review for challenging decisions of IN-SPACe?
8. Where India incurs international liability on account of the activities of a private entity, what domestic legal mechanism enables the Government to recover compensation from the operator, particularly where such liability exceeds the insured amount?
9. Who exercises jurisdiction over incidents occurring in outer space, including collisions between space objects, generation of debris, loss of command and what powers exist to direct de-orbiting, disposal or termination of a space object?
10. What is the legal position where a private entity becomes insolvent, undergoes liquidation, restructuring, merger, acquisition or a change in ownership during the subsistence of the space activity, particularly where control passes to a foreign entity?
These are some of the practical difficulties which may arise in the future, which only a statute enacted by the Parliament can provide legal sanctity to. India's upcoming Space Act can draw a statutory blueprint from the United State of America's enactment of 2010 i.e. Title 51 of the United States Code (National and Commercial Space Programs), which codifies solutions for some of these issues.
US Code (Title 51 U.S.C.) | Framework |
§ 50912 (Administrative Hearings & Judicial Review) | A right of hearing before the Secretary of Transportation has been provided to an Applicant with respect to issues arising out of the issuance or denial or revocation of license. It is also provided that the final action of the Secretary is also subject to Judicial Review. |
§ 50914 (Liability Insurance & Financial Responsibility) | It provides for specific amounts of insurance requirements, fixes definite liability and also prescribes Maximum Liability Insurance. It also provides for reciprocal waiver of claims and grants exclusive jurisdiction to the federal courts in relation to any claim by a third party for any damage or loss. |
§ 51303 (Asteroid resource and space resource rights) | It grants private citizens to possess, own, transport, and sell extracted space resources, in accordance with applicable law, including the international obligations of the United States.. |
§ 50917 (Enforcement and penalty) | The Secretary of Transportation is authorized to conduct investigations, inspect relevant facilities, and seize evidence when there is probable cause of a violation. Violators are subject to civil penalties of up to $100,000 per violation. |
§ 50919 (Relationship to other executive agencies, laws, and international obligations) | It provides that launching or re-entering a space vehicle or payload does not legally constitute an export or an import under trade laws. |
51 U.S. Code Subtitle VII Chapter 707 (Human Space Flight Independent Investigation Commission) | It is provided that an independent and non-partisan Commission shall be established which shall convene within 7 days of any incident involving the loss of a space shuttle, ISS, space vehicle, crew member etc., to investigate, hear and report to the Government. |
The success of Vikram-1 demonstrates that executive policies can promote innovation, but it is only a legislation that can sustain it. The next milestone in India's space journey is an enactment of a comprehensive Space Act, which promotes participation of more private players, provides legal certainty and makes India a global hub for commercial space activities.
Author is an Advocate-on-record at Supreme Court India. Views are personal.