| UPSC Relevance: GS Paper II – Governance, Regulatory Frameworks, International Treaties GS Paper III – Science & Technology, Space Sector, Startups, FDI |
Why in News?
India will celebrate its second National Space Day on August 23, marking the success of Chandrayaan-3’s soft landing near the lunar south pole in 2023. With upcoming missions like Gaganyaan (India’s first human spaceflight) and the Bharat Antariksh Station (India’s planned space station), the Indian space programme is expanding rapidly.
However, one critical piece is missing — a comprehensive National Space Law. India has strong policies and institutions like ISRO (Indian Space Research Organisation) and IN-SPACe (Indian National Space Promotion and Authorisation Centre), but lacks a single law that gives legal clarity, accountability, and investor confidence for both government and private space activities.
Background: Global Space Legislation
What is the Outer Space Treaty (OST), 1967?
- It is the main international treaty on space activities signed by more than 110 countries, including India.
- Key principles:
- Space belongs to all mankind – no country can claim ownership of the Moon, planets, or any part of outer space.
- Peaceful use only – space cannot be used for placing nuclear weapons or military bases.
- State responsibility – countries are responsible for both government and private activities in space.
- Liability for damage – if a satellite or rocket from one country causes damage to another, the launching country is liable to pay compensation.
👉 Important point: The OST is not self-executing. This means the treaty lays down global principles, but each country must create its own national laws to enforce them at home.
Why do countries enact national space laws?
- To implement the OST in their domestic system.
- To create legal clarity for private companies and startups.
- To ensure safety, sustainability, and responsibility in space operations.
Example: U.S. allows private mining of lunar resources under its Space Act (2015).Luxembourg and Japan have created laws for private companies to operate in space legally.
India’s Approach to Space Legislation
India has ratified the Outer Space Treaty and other UN space treaties but has not yet enacted a full National Space Law. Instead, India is following an incremental approach:
- Indian Space Policy (2023) – outlines the roles of ISRO, IN-SPACe, and private companies.
- IN-SPACe (Indian National Space Promotion and Authorisation Centre) – a regulator that authorises private space activities.
- Catalogue of Indian Standards for Space Industry – ensures safety in designing and launching satellites.
- IN-SPACe Norms, Guidelines and Procedures (NPG) – rules for private companies to get authorisation for space projects.
However, the second part of the law — an overarching framework (a clear legal text) — is still missing. This would give statutory (legal) power to IN-SPACe and make India’s commitments under OST legally enforceable.
Industry Perspectives and Challenges
Private sector and startups are entering India’s space sector, but face regulatory confusion because of the absence of a clear law.
- IN-SPACe lacks statutory power: Without a legal mandate, its approvals can be challenged.
- Licensing delays: Multiple ministries are involved due to the dual-use nature of space technology (can be used for both civilian and defence purposes).
- FDI (Foreign Direct Investment) hurdles: Current policy is restrictive. For example, 100% FDI in satellite component manufacturing under the automatic route would attract foreign capital, but rules are unclear.
- Insurance gaps: India is internationally responsible for any damage caused by satellites or rockets launched from its soil. But private companies must also hold third-party insurance. Affordable insurance frameworks are necessary, especially for startups handling expensive satellites.
- Intellectual Property Rights (IPR): Startups fear losing innovation to government control. Laws should protect IP, encourage partnerships, and prevent talent migration abroad.
- Safety and debris management: India needs laws for space debris clearance, accident investigations, and data sharing rules for satellites.
Why Insurance is Crucial for Startups
Space missions are high-risk and high-cost. A single satellite can cost hundreds of crores. If a private company’s satellite crashes and causes damage (e.g., falling debris or collision in orbit), India will be held liable under international law.
- Affordable insurance ensures startups are not bankrupted by accidents.
- It also attracts investors by reducing risk.
- Example: In the U.S., private space companies are required to carry liability insurance before launches.
Way Forward
- Enact a comprehensive National Space Law – cover licensing, liability, insurance, debris management, and FDI rules.
- Give statutory power to IN-SPACe – make it the central regulatory authority.
- Streamline approvals – avoid delays by creating a single-window system.
- Support startups – through affordable insurance, IP protection, and investor-friendly rules.
- Sustainability – enforce debris clearance laws and accident investigation protocols.
- Global alignment – ensure Indian law reflects UN treaties while promoting India’s commercial interests.
Conclusion
India’s space journey is moving fast, from Chandrayaan-3 to Gaganyaan and beyond. But without a clear legal foundation, private players face uncertainty, investors hesitate, and international liability risks remain high.
A National Space Law will ensure that India’s space programme grows in a safe, sustainable, and globally respected manner, while also supporting startups, protecting innovation, and strengthening investor confidence.
In short: India’s rockets are ready, but its space law must also take off. 🚀
UPSC Prelims practice questions-
Q1. Which of the following international treaties governs activities in outer space?
- Outer Space Treaty, 1967
- Moon Agreement, 1979
- Antarctic Treaty, 1959
- Liability Convention, 1972
Select the correct answer using the codes below:
- (A) 1 and 2 only
- (B) 1, 2 and 4 only
- (C) 2 and 3 only
- (D) 1, 2, 3 and 4
| Answer: (B) 1, 2 and 4 only Outer Space Treaty (1967): The main framework for international space law. Moon Agreement (1979): Deals with the use of the Moon and celestial resources. Liability Convention (1972): Provides rules for liability in case of damage caused by space objects. Antarctic Treaty (1959): Relates to Antarctica, not outer space. |
Q2. Consider the following statements about India’s space activities:
- At present, India does not have a dedicated National Space Law governing commercial and private space activities.
- The Indian Space Research Organisation (ISRO) is the sole body responsible for regulating private space enterprises.
- International liability for damage caused by private Indian space entities falls on the Government of India under international treaties.
Which of the statements given above is/are correct?
- (A) 1 and 2 only
- (B) 2 and 3 only
- (C) 1 and 3 only
- (D) 1, 2 and 3
| Answer: (C) 1 and 3 only Statement 1: Correct. India has draft bills but no final law yet. Statement 2: Incorrect. ISRO conducts missions, but regulation of private companies is shifting to IN-SPACe (Indian National Space Promotion and Authorisation Centre). Statement 3: Correct. Under the Liability Convention, 1972, liability rests with the State, not the private company. |
UPSC MAINS PRACTICE QUESTION
Q1. India has emerged as a leading space-faring nation but still lacks a comprehensive national space law. Examine the need for such legislation in the context of private sector participation, liability concerns, and international obligations.(10 MARKS, 150 WORDS)
SOURCE- THE HINDU
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