Why India needs a national space law

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Outer Space Treaty (OST), 1967:
- Forms the cornerstone of international space law.
- Ratified by 114+ countries, including India.
- Key stipulations:
  - Outer space is the “province of all mankind” → no national appropriation (no sovereignty, no ownership claims).
  - Peaceful uses only → bans placement of nuclear weapons or weapons of mass destruction in orbit.
  - States bear international responsibility for all space activities, whether by government or private entities.
  - States are liable for damage caused by space objects (to other states or international property).
  - Encourages international cooperation and sharing of benefits from space exploration.
Other companion treaties:
- Rescue Agreement (1968).
- Liability Convention (1972).
- Registration Convention (1976).
- Moon Agreement (1979 – not widely adopted).

Relevance : GS 2(Governance , International Relations)

Not self-executing:
- International treaties only provide principles.
- They need domestic legislation to become enforceable within countries.
- Example: OST says states are responsible for private space activities → but how private firms are licensed, regulated, and insured must be defined by national law.
UNOOSA’s stance:
- National legislations “give effect” to OST principles, ensuring space activities remain safe, sustainable, and responsible.

Legal certainty: Provides clear rules for licensing, approvals, liability, insurance, and dispute resolution.
Encourages investment: Foreign investors and domestic startups require predictable regulatory environments.
Dual-use dilemma: Space technologies often have military as well as civilian uses → needs robust oversight.
FDI attraction: Clear rules on foreign investment in space manufacturing (e.g., 100% FDI in satellite components) crucial for growth.
Liability & insurance: Internationally, states are liable → but domestically, operators/startups must carry insurance to cover accidents.
Innovation protection: Secure Intellectual Property Rights (IPR) prevents brain drain and builds investor confidence.
Debris management & sustainability: National laws can enforce debris mitigation, accident investigations, and data-sharing frameworks.
Independent regulator: Avoids conflicts of interest, builds credibility.

Status: India has signed/ratified OST and related treaties but lacks a comprehensive national space law.
Current framework:
- Space activities governed mainly through policy guidelines (e.g., Space Policy 2023).
- IN-SPACe (Indian National Space Promotion and Authorization Centre) set up as nodal body to regulate private sector participation, but lacks statutory backing.
- Licensing, approvals, and FDI rules remain fragmented across ministries.
Incremental strategy:
- India has gradually opened space to private participation (satellite launches, component manufacturing).
- Still in the process of drafting national space legislation to provide full legal clarity.
Priorities identified (Gp. Capt. T.H. Anand Rao, Indian Space Association):
- Grant statutory authority to IN-SPACe.
- Create a single-window licensing system (clear timelines, fees, reasons for approval/rejection).
- Define liability & accident investigation mechanisms.
- Strengthen FDI and IPR rules to support startups.
- Establish an independent appellate body for disputes.

International liability: Under OST & Liability Convention, India as a state is liable for damages caused by its space objects.
Domestic burden-sharing: Without insurance, taxpayers may have to bear damages from private sector accidents.
High-value assets: Satellites and payloads worth hundreds of millions → startups cannot sustain losses without affordable insurance.
Third-party coverage: Mandatory insurance ensures compensation for damage caused to foreign entities or global commons.
Encourages private sector participation: Affordable insurance lowers entry barriers for startups and SMEs in the space ecosystem.
Prevents flight of talent/companies: If India lacks protection frameworks, startups may migrate to jurisdictions with better IPR and insurance regimes.

Enact a comprehensive National Space Law aligned with OST principles.
Grant statutory authority to IN-SPACe as a regulator.
Develop affordable insurance pools (possibly public-private) to support startups.
Ensure IPR protection and transparent FDI rules.
Enforce space debris mitigation & sustainability laws.
Create an independent appellate body for space-related disputes.

India is transitioning from a state-driven space programme (ISRO monopoly) to a mixed ecosystem with private players.
Without robust space legislation:
- International commitments cannot be effectively enforced.
- Investor confidence will remain low.
- Space startups may shift abroad, slowing India’s ambitions.
A strong law would secure India’s position as a global space power and support its ambitions for 100+ startups, lunar missions, Gaganyaan, and a space station by 2047.