[Answered] India urgently needs a national space law. Examine how such legislation can balance international obligations with the promotion of a robust private space economy and affordable insurance frameworks for startups.

Introduction

As India transitions from a state-driven space programme to a dynamic public-private ecosystem, the absence of a national space law risks regulatory ambiguity, undermining international obligations and private sector growth.

Why a National Space Law is Urgently Needed

1. India is among the world’s top five spacefaring nations, with ISRO’s budget at ₹13,042 crore (2024–25) and 150+ private startups (e.g., Skyroot, Agnikul, Dhruva).
2. Yet, without statutory backing, policies like the Indian Space Policy 2023 and IN-SPACe guidelines lack enforceability, leaving investors and startups vulnerable.
3. India has ratified UN space treaties (OST 1967, Liability Convention 1972, Registration Convention 1976) but has not translated them into binding domestic law, unlike the US, Luxembourg, or Japan.

Outer Space Treaty (OST) and India’s Obligations

1. OST stipulates: Space is the “province of all humankind”; no national appropriation (Art. II). States are responsible for both governmental and private activities (Art. VI). States are internationally liable for damage caused by national space objects (Art. VII).
2. OST is not self-executing → national legislation is needed for compliance, licensing, liability sharing, and sustainability enforcement. Example: the US Commercial Space Launch Competitiveness Act (2015) and Luxembourg’s Space Resources Law (2017) operationalise OST while enabling private mining and insurance frameworks.

Balancing International Commitments with Private Growth

1. Licensing & Oversight: Law should empower IN-SPACe with statutory authority, ensuring transparent rules for licensing, FDI, launch approvals, and liability.
2. Insurance & Liability: Under the Liability Convention, India is absolutely liable for damage caused by its space objects. Without compulsory insurance, startups risk crippling losses. Affordable insurance pools, public–private reinsurance models, and capped liability (as in US launch laws) can balance responsibility and innovation.
3. Intellectual Property & Innovation: Clear IP rights for space technologies, protection from excessive state control, and data-sharing frameworks will prevent talent flight and attract foreign capital.
4. Debris & Safety: Binding debris mitigation norms and accident investigation mechanisms are needed to align with UN COPUOS guidelines.

India’s Current Approach and Gaps

1. Progressive steps: Indian Space Policy (2023), IN-SPACe NPG (2024), Catalogue of Standards (2023).
2. Missing: A comprehensive “Space Activities Bill” (earlier draft introduced in 2017, never passed).
3. Current ambiguity causes delays — e.g., startups often need multiple ministry approvals for dual-use technologies, slowing innovation.

Insurance and Startups – A Crucial Link

1. Space assets are high-risk, with launch insurance premiums at 15–20% of mission cost globally.
2. For Indian startups with limited capital, such costs are prohibitive.
3. A law enabling affordable insurance pools, government-backed reinsurance, and partial liability sharing would encourage entrepreneurship while protecting India from treaty-based liabilities.

Conclusion

A national space law is India’s missing launchpad — harmonising global obligations with private enterprise growth, safeguarding liability risks, and creating affordable insurance frameworks essential for a competitive, innovative space economy.