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A revised draft of the Space Activities Bill that would establish a comprehensive legal framework for space operations remains under inter-ministerial review according to government updates and reports from The Indian Express in 2025. The legislation is intended to grant statutory authority to the Indian National Space Promotion and Authorisation Centre while addressing licensing liability insurance and alignment with international treaties. Officials have indicated that the bill will undergo public consultation once cleared by ministries before advancing to the cabinet and parliament for introduction.
The original 2017 version of the bill drew criticism from industry representatives for provisions viewed as overly restrictive on private enterprise and was subsequently shelved after failing to advance. A fresh draft prepared in 2025 reflects input from more than 400 private space companies and shifts toward a demand-driven model for sector participation according to Wikipedia entries drawing on official statements. This iteration aims to replace reliance on executive policies with enforceable statute that codifies India’s commitments under the 1967 Outer Space Treaty and related conventions.
India’s space economy currently stands at 8.4 billion dollars and holds a 2 to 3 percent share of the global market with projections targeting 44 billion dollars by 2030 according to statements from the Department of Space and industry analyses published by LiveLaw. Private investment in the sector has crossed 600 million dollars including 187 million dollars recorded in 2026 alone as Union Minister Jitendra Singh informed Parliament in recent submissions. The investor base now includes sovereign wealth funds global asset managers and strategic corporates backing entities that have conducted sub-orbital launches placed more than 30 satellites in orbit and maintained 45 payloads on various platforms.
IN-SPACe established in 2021 as a single-window regulator has issued 113 authorisations to 52 non-government entities including 18 startups since the sector opened to private participation the minister reported in August 2026. The centre operates under the Department of Space and implements the Norms Guidelines and Procedures notified in 2024 that set timelines for approvals debris mitigation standards and third-party liability insurance requirements. NewSpace India Limited the commercial arm of ISRO has transferred 118 technologies to private firms and signed multiple agreements to support commercialisation of ISRO-developed systems.
Absence of overarching legislation leaves IN-SPACe functioning primarily on executive orders without full statutory powers creating potential vulnerabilities in regulatory enforcement and investor confidence according to legal assessments in The Hindu and Chambers and Partners guides. The forthcoming act is expected to define clear processes for licensing qualifications application timelines and dispute resolution while capping certain liabilities to encourage startup involvement. Experts cited in these reports emphasise that statutory backing would reduce fragmentation across ministries handling defence telecommunications and commerce approvals for satellite and launch activities.
India has ratified key United Nations space treaties including the Liability Convention and Registration Convention yet lacks domestic law to fully operationalise those obligations in a manner that protects both state and private actors a point reiterated in analyses from ClearIAS and Ekam IAS Academy. The Indian Space Policy of 2023 opened the entire value chain to non-government entities but remains a policy document rather than binding legislation. With the number of registered space startups rising from one in 2014 to approximately 440 today the push for a dedicated statute has intensified to sustain momentum in areas such as launch vehicles earth observation and satellite communications.
Recent private sector milestones include the successful orbital insertion by Skyroot Aerospace’s Vikram-1 vehicle and growing activity in manufacturing hubs established through state-level policies in Tamil Nadu and other regions according to updates from OpenGov Asia and Swarajya magazine. These developments occur against a regulatory stack completed between 2020 and 2024 that includes liberalised foreign direct investment norms allowing up to 100 percent in certain space activities. Government officials have noted that the bill’s eventual passage would further accelerate commercial launches with more than eight private rocket missions anticipated over the next two years.
