Recent international developments indicate national expansion and consolidation of domestic legal frameworks, increasing attention to orbital sustainability, and emerging governance arrangements beyond the traditional treaty systems. As the commercial space economy grows and private operators assume a greater role in launch, satellite, and exploration activities, states are recalibrating regulatory frameworks to address contemporary operational realities. Continuing momentum from 2025, several countries are discussing legislative reforms to their space frameworks largely geared towards technological innovation, streamlining oversight, regulating dual-use technologies, defence and security considerations, and sustainability of space activities. Space diplomacy driven by strategic autonomy is gaining momentum, as countries increasingly forge multilateral and bilateral alliances to promote shared national and international goals and interests.

Against this backdrop, India has positioned itself globally as a reliable space partner. It actively participates in international space governance discussions, is party to the major space treaties, and maintains longstanding space partnerships with several nations and regional blocs, including France, the United States, the European Union, and Japan (see 2.7 Commitment to International Treaties and Multilateral Discussions). India’s evolving policy landscape, particularly the Indian Space Policy 2023 (ISP 2023) and Norms, Guidelines and Procedures for Implementation of ISP 2023 in respect of Authorization of Space Activities (NGP 2024), aligns with the broader international trends favouring commercial participation, innovation, and regulatory clarity (see 2.1 Characteristics of Space Industry).

In 2025–2026, India further strengthened its space and launch infrastructure, developed funding frameworks for the private sector, deliberated on policy guidelines for the sector, such as the Department of Space’s draft Policy Framework and Guidelines Addressing State’s Liability Towards Third-Party Damages Arising Due to Indian Space Objects, and enhanced commercial capabilities (see 2.1 Characteristics of Space Industry).

Since the liberalisation of the space sector in 2020, India has witnessed a structural shift from a government-led model to a commercially driven “NewSpace” ecosystem, enabled by policy reforms allowing end-to-end private participation across the space value chain. The establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe) as the single-window regulatory authority, together with the notification of the ISP 2023 and the NGP 2024, has provided the foundational legal and regulatory architecture for private entities to develop and operate launch vehicles, satellites, and satellites and providing space-based services.

The Government of India (GoI) projects that the country’s space economy, currently valued at approximately USD8 billion, could expand to USD40–45 billion over the next decade, reflecting global NewSpace growth trends. This is buttressed by a clear division of roles under India’s NewSpace framework. Indian Space Research Organisation (ISRO) is transitioning towards research, innovation, and technology development, while enabling capacity building through technology transfer and infrastructure access. NewSpace India Limited (NSIL) is focused on commercialisation of space technologies and assets, and bridging industry participation. Private entities and start-ups are emerging as independent operators across the entire value chain (see 2.3 Role of the State in Space Law and Regulations).

The expansion of India’s NewSpace economy has directly and significantly shaped its regulatory framework. All space activities require prior authorisation from IN-SPACe, while adhering to detailed eligibility criteria, application and vetting processes, and ongoing compliances under the NGP 2024 (see 2.2 Legal System and Sources of Space Law and Regulation). The growing scale and sophistication of commercial transactions have also led to the emergence of bespoke contractual frameworks for launch services agreements, satellite lease contracts, and data sharing and usage agreements, etc, reflecting a maturing commercial space sector.

The space sector in India resembles a high-growth start-up industry, driven by progressive policy reforms, private participation, and growing global demand for commercial space services. The number of space start-ups has grown from single-digits to 399 by early 2026, with companies operating across launch vehicles, satellites, space situational awareness (SSA) capabilities, propulsion systems, earth observation applications, and space-grade electronics. Space capabilities have also become integral to India’s national security, with sustained investments in dual-use technologies such as satellite communications, navigation, and Earth observation strengthening both strategic autonomy and addressing regional security challenges.

ISRO remains at the core of India’s space programme under the Department of Space (DoS). Specialised entities, including NSIL, drive commercialisation of space technologies and infrastructure, while IN-SPACe functions both as a regulator and facilitator of private participation.

India’s space economy targets USD44 billion in economic growth by 2033 (~8% of the global space economy) and USD100 billion by 2040 (~10%). India’s Space Vision 2047 roadmap targets the establishment of the Bharatiya Antariksh Station (BAS) by 2035 and the landing of an Indian on the Moon by 2040. Government support continues to stimulate innovation through targeted financial and institutional support promoting R&D and commercialisation of space technologies. Public sector units (Hindustan Aeronautics Limited and Bharat Electronics Limited), private pioneers (Skyroot and Agnikul), and MSMEs supplying subsystems and electronics together form the backbone of this high-growth ecosystem. In 2025, India became the fourth nation to demonstrate autonomous satellite docking through the SPADEX mission and successfully launched NISAR, its first joint mission with NASA.

International collaboration remains central to India’s space vision. The country has established and maintains strategic partnerships with major spacefaring nations and agencies for joint missions, technology access, and data-sharing arrangements. This outward engagement is balanced with the longer-term objective of achieving technological self-reliance.

In the absence of a dedicated space law, India’s space sector is governed through a policy-led regulatory framework comprising executive policies, guidelines, and sector-specific laws.

• ISP 2023 provides an overarching framework governing the sector, setting out the permitted space activities, enabling the participation of non-governmental entities (NGEs) across the entire space value chain, and delineating roles of key stakeholders.
• The NGP 2024 operationalises ISP 2023 and establishes a framework for authorising space activities, regulating and supervising NGEs in the sector, ensuring compliance with defined technical, financial and regulatory conditions.
• Consolidated FDI Policy Circular of 2020 (FDI Policy) prescribes caps for maximum permitted foreign investment in the space sector and specifies whether investments may be permitted under the automatic or government approval route, depending on the avenue for investment.

Certain activities also trigger additional sectoral regulations:

• Satellite communications are governed by the Telecommunication Act, 2023, Satcom Reforms 2022, and the National Frequency Allocation Plan (NFAP 2025).
• Use, access, and commercialisation of geospatial data are regulated under the National Geospatial Policy, 2022 (Geospatial Policy), and Remote Sensing Data Policy, 2011.
• Propulsion systems, explosives, fuels and hazardous materials are subject to applicable industrial safety standards.
• Space-related imports and exports are regulated under the Foreign Trade (Development and Regulation) Act, 1992, the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) framework, and customs laws.
• All space activities are subject to corporate, employment, environmental, and real estate laws, and related compliances.

In addition, several Indian states have rolled out state-level space policies, complementing the broader national framework and providing incentives such as land allocation, fiscal support, space infrastructure, subsidies for manufacturing, and R&D support.

In terms of judicial precedents, disputes in the Indian space sector have largely been limited to tax and contractual/private arbitration matters, with limited jurisprudence on core space law issues (see 9.3 Space Litigation).

The GoI has also drafted a comprehensive Space Activities Bill, which is currently pending public comments. Once enacted, it is expected to streamline authorisations, clarify insurance requirements, and provide greater certainty to the sector and investors.

India’s space sector is anchored in five key institutions, which collectively perform regulatory, developmental, and commercial functions:

• DoS – the central policymaking authority under the direct supervision of the Prime Minister’s Office (DoS oversees ISRO, NSIL, and IN-SPACe);
• ISRO – India’s national space agency that focuses on technological innovation, and international collaborations;
• IN-SPACe – an autonomous single-window agency and regulator under the DoS; and
• Antrix Corporation Limited and NSIL – public sector enterprises responsible for the market deployment of space technologies and services. 

Several other ministerial departments and agencies play important roles in the space sector. The Department of Telecommunications, through its Wireless Planning and Coordination Wing (WPC Wing) and the Standing Advisory Committee on Frequency Allocation, manages spectrum and frequency. The Ministry of Defence, through the Defence Space Agency and Defence Research and Development Organisation, oversees defence and strategic space assets. The Department of Science and Technology (DST) regulates the framework for geospatial data, while the Department for Promotion of Industry and Internal Trade (DPIIT) governs foreign capital inflows through the FDI policy into the sector. The Ministry of Information and Broadcasting (MIB) regulates satellite-based broadcasting, while the Ministry of Home Affairs handles national security clearances for space activities.

All governmental entities and NGEs must obtain prior authorisation from IN-SPACe under the NGP 2024 to undertake space activities in India. The ISP 2023 allows NGEs to pursue space-based communication services, ground facilities, launch infrastructure, remote sensing satellite systems, SSA capabilities, space transportation systems, R&D, commercial recovery of asteroid resources, and other prescribed activities.

Authorisation Process

• Only Indian entities may, by authorisation, undertake space activities. Non-Indian entities must partner with an Indian entity, through a subsidiary, joint venture, or such other arrangements to be authorised.
• Applications are filed online and assessed on multiple parameters, including operational, infrastructural and financial abilities, safety, national security, technical viability, frequency interference, compliance with regulatory guidelines, state liability for third-party damage, international obligations, geopolitical considerations, trade regulations, foreign shareholding, and such other factors deemed necessary.
• Depending on the nature of their activities, approvals from other sectoral regulators may be required. For example, satellite communication operators require frequency authorisations from DoT, while satellite broadcasting operators require uplinking and downlinking licences from MIB.
• Finally, following review, IN-SPACe may issue a non-transferable authorisation, require modification of the application, or reject the application.

The authorisation process takes around 75–120 days depending on the space activity and additional approvals. Applicants are encouraged to apply six months in advance.

IN-SPACe supervises compliance with the NGP 2024, which prescribes ongoing audits, and intimations. Authorised entities must disclose material changes in management, control, or shareholding and notify IN-SPACe, within prescribed timelines, of events affecting validity or continuance of an authorisation, accidents or malfunctions in operations, and the filing or receipt of any criminal complaint/case against the entity or its key persons where such matters may affect the authorisation. IN-SPACe may also conduct inspections or physical audits of premises and operations. IN-SPACe may also require access to telemetry, tracking and command (TT&C) data and Mission Control Centre (MCC) information, within or outside India, including where national security or other critical considerations are involved. IN-SPACe may terminate, suspend, or revoke authorisation in cases of non-compliance (particularly non-disclosure), misrepresentation, or breach of conditions. Non-compliance may also result in operational restrictions and penalties.

India’s radio frequency spectrum is governed under the NFAP 2025, a central telecommunications regulatory framework aligned with the International Telecommunication Union (ITU) Radio Regulations and administered by the WPC Wing. The WPC Wing issues licences, formulates NFAP 2025, collaborates with national and international organisations, and oversees the domestic utilisation of radio frequency spectrum. The WPC Wing and IN-SPACe ensure that allocated frequency and orbital slot allocations do not cause harmful interferences. India’s spectrum governance is further strengthened by frameworks such as the Global Mobile Personal Communication by Satellite (GMPCS) licensing for mobile satellite services, Satellite Communication Network (SCN) authorisation for satellite communication networks, and the SACFA clearance framework for wireless infrastructure and aviation safety compliance (see 3.2 Principles of Non-Interference and Prevention of Harmful Interference).

The GoI is a provider, facilitator, and user of launch assets in different capacities. Consistent with its historical mandate, ISRO designs, develops, tests, and operates launch vehicles. It owns and operates India’s only space port, the Satish Dhawan Space Centre, at Sriharikota and is building a launch complex for small satellite launch vehicles, primarily for launches into Sun-Synchronous Polar Orbit. NSIL commercialises ISRO technology and infrastructure through private contracts, executes launch services agreements with industry participants, providing them with launch services for satellites using ISRO’s launch vehicles on competitive terms.

Although launch infrastructure in India has historically been state-owned, the FDI Policy and the NGP 2024 encourage private participation by international and domestic players. IN-SPACe is empowered to grant approvals for the launch and operation of launch vehicles and the establishment and operation of launch pads. NSIL drives industry-led manufacturing models for launch vehicles through technology transfer agreements, supporting an industry-partnered ecosystem. At the sub-national level, Indian states provide fiscal and infrastructural support for launch services, vehicles, and sites.

India is a founding member of the United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS) and party to the key international space treaties:

• Outer Space Treaty (1967): Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and other Celestial Bodies;
• Rescue Agreement (1968): Agreement on the Rescue of Astronauts, the Return of Astronauts, and the Return of Objects Launched into Outer Space;
• Liability Convention (1972): Convention on International Liability for Damage Caused by Space Objects;
• Registration Convention (1974): the Convention on Registration of Objects Launched into Outer Space; and
• Moon Agreement (1984): The Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (India is a signatory, but has not yet ratified this agreement).

The Outer Space Treaty and the Liability Convention impute international responsibility for both governmental and non-governmental space activities conducted to nation states. Under the Constitution of India, international treaty obligations must be legislated upon to be enforceable. Consequently, the NGP 2024 incorporates India’s international obligations and empowers IN-SPACe to enforce them against authorised entities (see 2.2 Legal System and Sources of Space Law and Regulation).

India actively engages in the development of international space governance frameworks, most notably through its engagement in the UNCOPUOS Legal Subcommittee and Scientific and Technical Subcommittee. India also contributes to the UN’s Conference on Disarmament (CD); advocates for a universal, non-discriminatory, and internationally verifiable Fissile Material Cut-off Treaty; and supports multilateral approaches to nuclear disarmament, strategic stability, and international security. India has also consistently emphasised the principle of “due regard” in the UNCOPUOS, advocating that space activities be conducted with due consideration for other States and for the sustainability of the outer space environment, particularly in low Earth orbit. This approach is consistent with the ISP 2023 and the NGP 2024’s call to action to conduct space activities sustainably.

The NGP 2024 incorporates India’s indemnification obligations under the Outer Space Treaty and Liability Convention by requiring authorised entities to indemnify the GoI against claims and liabilities arising from their space activities. As a condition of authorisation, applicants must furnish evidence of insurance coverage by submitting the draft insurance policy. They are required to obtain third-party liability insurance coverage naming the GoI, the launch operators, and payload owners as insured parties. The scope, duration, and quantum of such insurance is determined by IN-SPACe on a case-by-case basis, depending on the nature of the launch, launch vehicle characteristics, mission profile, and the risk of damage from launch. Under the NGP 2024, authorised entities have uncapped liability. The GoI is working on a separate policy framework and guidelines to address third-party liability arising from Indian space objects, including the insurance obligations of launch operators and the management of State liability exposure.

India does not have a dedicated legal framework governing near-space or very high-altitude zones; however, it has made significant progress in the development of dual-use technologies such as high-altitude platform systems (HAPS) and high-altitude pseudo-satellites for applications across communications, disaster management, and agriculture. In 2025, India’s apex defence procurement body approved the procurement of airship-based HAPS to support sustained intelligence, surveillance, and reconnaissance missions for military operations. In May 2026, Red Balloon Aerospace, a private participant, launched Mission SANA, India’s first indigenous commercial super-pressure balloon platform carrying payloads for domestic and international partners. Operating at an altitude of 25 kilometres, the platform is designed to support a range of applications, including telecommunications, disaster monitoring, earth observation, navigation validation, and surveillance.

Civil aviation is regulated by the Bharatiya Vayuyan Adhiniyam, 2024, administered by the Directorate General of Civil Aviation (DGCA). However, Indian aviation laws do not prescribe a clear upper altitude limit beyond which DGCA jurisdiction ceases or accedes to another regulatory regime, causing regulatory challenges for indigenous HAPS technologies wherein progression to higher altitudes beyond 25,000 remains subject to DGCA approvals.

All space activities in India are governed through a centralised authorisation regime. Sector-specific approvals are required in applications pertaining to specialised activities in defence, satellite communications, downstreaming Earth observational data, and broadcasting. These additional approvals are obtained through IN-SPACe from the relevant ministries (see 2.2 Legal System and Sources of Space Law and Regulation). Space data acquisition and its processing are governed through a combination of subject-specific policies and the NGP 2024 (see 4.1 Data Protection and Regulation Space).

The NGP 2024 and the terms of authorisation govern the tenure, renewal, cancellation, transferability, and enforcement of authorisations. Authorisations are valid for a defined period, and the continuity/extension of such authorisation is contingent upon ongoing compliance. Authorisations are non-transferable without prior written approval from IN-SPACe. Such approval may be granted subject to prescribed conditions, including the provision of unconditional performance guarantees by the existing authorisation holder. IN-SPACe may suspend or cancel an authorisation in the event of a breach of conditions, non-compliance with applicable laws, unauthorised changes in ownership or control, or where continued operations are considered contrary to national security interests. Authorised entities may also discontinue or terminate their authorisation after obtaining prior consent from IN-SPACe and be in accordance with applicable conditions.

India manages satellite communication interference through domestic spectrum controls aligned with international guidelines. The IN-SPACe authorisation process requires applicants to submit a non-interference analysis demonstrating that proposed operations will not cause harmful interference, along with a coexistence strategy. Alternatively, IN-SPACe may grant authorisation on a “non-protection, non-interference” basis and may require applicants to negotiate and execute frequency co-ordination or coexistence arrangements with incumbent or other authorised satellite operators serving India to ensure operations remain free from harmful interference.

Where harmful interference remains unresolved, IN-SPACe may refuse, suspend, or terminate authorisation, particularly where an operator has failed to collaborate with or negotiate in good faith. Where harmful interference persists beyond the stipulated notice period, IN-SPACe, in co-ordination with the WPC Wing, Network Operations Control Centre, and the Wireless Monitoring Organisation, is empowered to direct operational measures and issue directions to the operator concerned, requiring them to cease emissions from the relevant satellite or constellation.

The NGP 2024 regulates and authorises the operation of space transportation systems, including launch vehicles and planned reentry of space objects. Operators are required to comply with the conditions stipulated in their authorisation, the NGP 2024, and applicable domestic laws (see 2.2 Legal System and Sources of Space Law and Regulation). ESG-related compliances are embedded within the ISP 2023 and the NGP 2024 framework, international space debris mitigation standards, and domestic initiatives such as ISRO’s System for Safe and Sustainable Space Operations Management (IS4OM) (see 5.1 Environmental Protection in Space). These obligations primarily constitute space debris mitigation and the obligation to observe safety in space operations imposed on operators (see 5 Environmental Protection and Impact on Climate Change).

In the absence of domestic legislation, India’s obligations to use outer space peacefully, avoid national appropriation, and prevent harmful contamination stem from India’s obligations under the Outer Space Treaty and the Artemis Accords, which reinforce the concept of safety zones and preservation of outer space heritage.

Operators undertaking space activities in India are subject to national intelligence, security, defence, foreign relations, and public interest considerations under the NGP 2024. IN-SPACe is empowered to modify, suspend, or cancel authorisations where such interests are affected (see 2.4 Role of the State in the Licensing Process for Space Activities). To establish TT&C and MCC stations abroad, applicants must demonstrate that such facilities pose no threat to India’s national security, foreign relations, intelligence, or security operations. Lastly, restrictions on ownership structures and foreign participation are imposed through applicable regulatory conditions to safeguard national interests.

In India, “space data” is regulated through sector-specific instruments. Earth observation or remote sensing data/geospatial data are governed by the ISP 2023 and the NGP 2024, the Guidelines for Acquiring and Producing Geospatial Data and Geospatial Data Services including Maps, 2021(DST Guidelines). Where space data contains personal data, the Digital Personal Data Protection Act, 2023 (DPDPA) applies. In addition, satellite operators holding telecom authorisations are subject to additional obligations (see 2.2 Legal System and Sources of Space Law and Regulation).

The NGP 2024 regulates dissemination of raw data received from an earth observation satellite (“Primary Data”). Primary data may only be shared by Indian entities registered with IN-SPACe (“Data Disseminator(s)”). Any change (of control or shareholding pattern) in either the Data Disseminator or the satellite must be notified to IN-SPACe and may, in some cases, trigger a fresh authorisation requirement for the Data Disseminator.

Sharing high-resolution Primary Data (GSD ≤30 cm) of the Indian territory requires prior approval from IN-SPACe. Additional obligations include verifying credentials of user/recipient, taking measures to prevent further unauthorised dissemination, ensuring safe custody, and reporting every dissemination of Primary Data to IN-SPACe. Lower-resolution Primary Data (GSD > 30 cm) may be shared without prior approval, though where it is shared for commercial purposes, IN-SPACe must be notified periodically.

DST Guidelines regulate “geospatial data”, broadly defined as data of any point in India, irrespective of whether it is enriched with additional attributes. They define specific thresholds of spatial and vertical accuracy and gravity anomaly for geospatial data. Geospatial data of a finer accuracy than the thresholds (“Finer Data”) specified can only be created and/or owned by Indian entities and must be stored and processed in India. Geospatial data of a coarser accuracy than thresholds (“Coarser Data”) is exempt from these restrictions. However, additional restrictions apply to the reverse-engineering of Coarser Data to produce Finer Data, and access to Coarser Data may be restricted for entities associated with a designated “country of concern”. Regardless of the accuracy of data, certain “sensitive attributes” must not be labelled, tagged, or identified in geospatial datasets.

State Access and Control Over Space Data

The NGP 2024 permits the GoI to declare as “sensitive” any Primary Data (irrespective of resolution) pertaining to Indian territory and prohibit its dissemination. Data Disseminators may be compelled to provide access to such data to the GoI on demand on a non-discriminatory basis.

In addition, the NGP 2024 mandates that applicants seeking authorisation to establish and operate a (i) satellite/constellation for communication services (irrespective of whether Indian orbital resources are used); (ii) remote sensing or amateur use satellites; or (iii) ground infrastructure, upon demand, make available data received or transmitted from TT&C and MCC stations for national security or other critical considerations.

Space Data Processing

The NGP 2024, DST Guidelines, and DPDPA support Space Data-as-a-Service (SDaaS) models, with contractual and technical controls embedded to restrict re-use, onward sharing, and reconstruction of higher-precision data, including through API-based access and threshold-compliant outputs for maps/geospatial data, as opposed to unrestricted transfer of underlying datasets. 

The DST Guidelines encourage interoperability at a technical level by enabling the creation, processing, and sharing of geospatial datasets without prior approval for most use cases, subject to regulations on attributes in the negative list. Geospatial map-making activities, other than those involving the negative list, are fully deregulated for Indian entities and do not require prior approvals, security clearances, or licences. 

Transfer of Space Data to a Third Country

Under the NGP 2024, only Indian entities may be authorised as Data Disseminators, meaning that dissemination must be routed through Indian-incorporated entities, even where foreign participation exists through subsidiaries, joint ventures, or other collaboration structures.

High-resolution Primary Data pertaining to the Indian territory under the NGP 2024 framework is subject to prior authorisation and dissemination controls, which may limit its transfer to third parties, including overseas recipients. The DST Guidelines also impose restrictions on the ownership, storage and processing of, and access to, Finer Data, including cross-border access.

Under ISP 2023, ISRO is mandated to enable free and open access to satellite data with GSD of ≥ 5 m for all users and data with GSD <5 m for private entities on fair and transparent pricing. ISP 2023 also mandates ISRO to share archived satellite data. The Geospatial Policy proposes a National Geospatial Data Registry to improve access to geospatial datasets, while the DST Guidelines require publicly funded geospatial data (other than security agency data) to be made accessible to Indian entities for scientific, economic and developmental purposes.

ISRO operates platforms such as Bhoonidhi, Bhuvan and MOSDAC to disseminate earth observation datasets subject to platform-specific access conditions. The Survey of India is also developing a National Geospatial Platform to standardise sharing of foundational geospatial datasets.

Cybersecurity and data protection for space infrastructure are addressed through a combination of general cybersecurity and data protection laws supplemented by emerging space-specific guidance rather than a single comprehensive statute. These include the Information Technology Act, 2000 (IT Act), CERT-In Directions, DPDPA and rules, and the Cybersecurity Framework and Guidelines for Space Including Satellite Communication (Cybersecurity for Space Guidelines 2026).

On Earth

On earth (ground segment and data infrastructure), satellite operators, ground station providers, and related entities are subject to the IT Act and CERT In Directions. These require the implementation of cybersecurity policies and technical safeguards, periodic security audits, mandatory reporting of cybersecurity incidents, maintenance of network integrity, and compliance with government directions issued to mitigate cyber risks. DPDPA applies when space data constitutes personal data, imposing obligations concerning lawful processing, purpose limitation, security safeguards, and breach response. The GoI is notifying the DPDPA in a phased manner, with complete implementation expected by May 2027.

In Space

The Cybersecurity for Space Guidelines 2026 provides a structured advisory framework of security controls across satellite assets, communication links, supply chains, and user terminals, including measures on authentication, encryption, and intrusion detection. The guidelines emphasise the security of onboard satellite systems, firmware integrity, and command-and-control functions, incident detection and recovery, and alignment with CERT-In reporting requirements.

Back to Earth

At the data dissemination stage, Data Disseminators handling space data are subject to the IT Act and CERT-In Directions, requiring reasonable security practices, maintenance of system and network logs, and reporting of specified cyber incidents within prescribed timelines. The Cybersecurity for Space Guidelines 2026 apply across the space ecosystem, including downlink infrastructure, ground stations, and data processing systems.

Environmental protection on earth regarding space activities is governed by environmental statutes such as the Environmental Protection Act, 1986, pollution control statutes, and state-specific regulations. However, outer-space environmental sustainability is integral to India’s domestic space governance framework.

ISP 2023 sets out “protection of environment and lives” in its vision/goal statement. The NGP 2024 mandates that applicants take all possible measures to limit the generation of space debris, mitigate adverse environmental effects on Earth or in outer space or adverse changes to the atmosphere. Applicants are also required to take immediate measures to mitigate and avoid any damage from “material adverse effects”, including events or incidents that threaten human life, environment, or property in the territory of the Earth or pose a threat to other objects in space. Applicants must also report such events and mitigation measures to IN-SPACe.

India currently has no dedicated legislation that governs the extraction or procurement of critical space minerals. Under the ISP 2023, NGEs are permitted to commercially recover, own, and sell space resources subject to IN-SPACe guidelines, applicable law and India’s international obligations. While the NGP 2024 mandates that applicants should not assert sovereign claims over resources extracted from outer space, it also recognises that not all forms of extraction and utilisation of resources in space qualify as appropriation. Accordingly, entities may extract resources, subject to the necessity of the extraction and utilisation of resources, and the extraction causing no harmful interference to space activities (see 3.3 Operators’ Responsibilities).

India participates in several international initiatives that utilise space technologies to address climate change and environmental challenges. These include the NASA ISRO Synthetic Aperture Radar (NISAR) launched in 2025, to monitor changes in land, glaciers, forests, and oceans; the National Information System for Climate and Environment Studies established by ISRO for climate change impact assessment and mitigation through Earth observation satellites; and the BIMSTEC Space Programme, under which India has proposed regional nano-satellites, and shared Earth observation data for climate and disaster management.

India does not have a specific legislative framework governing orbital debris. Instead, its regulatory approach is aligned with the UNCOPUOS Space Debris Mitigation Guidelines and other internationally accepted debris-mitigation standards. ISRO’s IS4OM is the nodal centre for space sustainability and SSA activities. It implements the Debris Free Space Mission (DFSM) initiative, which aims to achieve debris-free space missions and a post-mission disposal compliance rate of 99% by 2030.

India’s framework is, therefore, broadly aligned with international best practices on orbital debris mitigation. IN-SPACe, under the NGP 2024, requires authorised entities to adhere to applicable safety, sustainability, and debris-mitigation standards. India also co-operates with international partners, including the National Aeronautics and Space Administration (NASA), the European Space Agency (ESA), and the Japan Aerospace Exploration Agency (JAXA), on space sustainability and space traffic management initiatives.

The Indian Income-tax Act, 2025 (“Income Tax Act”), taxes Indian tax residents on their global income, whereas non-residents are taxed only on their Indian-sourced income, subject to the beneficial provisions of the applicable double taxation avoidance agreements (DTAAs). Non-residents are liable to pay tax in India if they conduct any business activity in India through a permanent establishment (PE). Depending on the relevant DTAA, the following may constitute PEs: (i) fixed-place PE requiring physical location and permanence; (ii) service PE based on employee-based services in client state; (iii) construction PE being project and time-specific; and (iv) agency PE based on agents in the client state. India also taxes certain India-sourced income such as royalty and fees for technical services (FTS) even though such income is received by a non-resident.

India does not have separate space-specific tax laws, but the Income Tax Act specifically includes satellite signal transmission as “process” under the definition of royalty, bringing transponder charges within the purview of royalty income. Indian courts have held that satellite footprints over India do not give rise to a PE and, therefore, are not taxable in India. Fees paid to non-residents for space-related service arrangements are generally not taxable as FTS, as no technical knowledge is “made available” to the Indian payer for independent future use, which is a condition for FTS in several DTAAs.

India’s indirect tax framework is transaction-driven. The Customs Act, 1962 (Customs Act), regulates and classifies cross-border trades, the Goods and Service Tax (GST) legislation taxes all internal consumption and imports, while special incentives are allowed to businesses operating in Special Economic Zones (SEZs). The Foreign Trade Policy (FTP) also waives certain taxes to keep exports competitive.

India does not have a dedicated incentive framework for entities operating in the space sector. Entities may, however, avail of general incentives under the Income Tax Act, including claiming a 100% deduction on in-house R&D expenditure, enhanced deductions on payments made to sanctioned scientific research programmes, and accelerated depreciation benefits for specified instruments and equipment.

On the indirect tax front, satellite launch services enjoy complete GST exemption. This exemption, which was initially available only to governmental entities, has now been extended to NGEs. The Customs Act extends generous exemptions to satellites, payloads, and ground equipment, exempting them from basic customs duty and IGST. Import of scientific instruments, tools, and modules deployed in the development and assembly of space products attracts a nil rate of basic customs duty and concessional GST treatment.

Beyond these reliefs, several broader mechanisms pertaining to lower corporate tax rates and forex-related flexibilities are also available. The Export Promotion Capital Goods scheme under FTP permits duty-free import of capital goods against export obligations. Entities establishing units in SEZs enjoy duty-free import of capital goods and raw materials, provided the output is exported.

Additionally, there are several state-level tax concessions for space technology companies. The industry continues to advocate for wider GST exemptions across all space activities, but a comprehensive scheme has not yet been rolled out.

Under the Income Tax Act, tax treatment of space asset transfers depends on the characterisation of the asset. Non-depreciable capital assets held for more than 24 months attract long-term capital gains tax, while others attract short-term capital gains tax. Where the asset is held as inventory, the gains from sales are treated as business income taxable at applicable tax rates. For depreciable capital assets, the sale consideration is deducted from the relevant block of assets, and the seller is entitled to claim depreciation on the remainder. If the sale consideration exceeds the written down value, or the block ceases to exist, such surplus is treated as short-term capital gains and taxed accordingly.

On the indirect tax side, the sale of a space asset to a foreign entity qualifies as a zero-rated export, attracting neither customs duty nor GST. Spacecraft, satellites, and launch vehicles attract nil GST and nil customs duty. Parts and components used in spacecraft manufacture attract concessional GST on domestic supply. Space manufacturing, development, maintenance, and repair services, however, attract GST at the normal rate.

India’s NewSpace ecosystem has expanded significantly following the space sector reforms announced in 2020, when regulatory certainty, access to public infrastructure, allowance of foreign investment and technology inspired investor confidence (see 2.1 Characteristics of Space Industry).

Now India has nearly 400 space start-ups operating across launch vehicles, satellite manufacturing, propulsion systems, earth observation, satellite communications, and space-grade electronics. Private companies are attracting domestic and international investments and developing commercially deployable launch, satellite, propulsion, and SSA technologies.

The 2020 reforms catalysed investment in the NewSpace economy, with over two-thirds of historical capital deployed thereafter. Industry projections now estimate USD3–5 billion in private investment inflows. Government support (through seed funding, adoption grants, launch support, and dedicated venture financing) spans the NewSpace life cycle, from ideation, R&D, and technology adoption to IP creation, commercialisation, and scale-up. These measures have helped de-risk private capital, encourage fundraising, and attract growing participation from venture capital and strategic investors (see 7.2 Finance Sources of Space Activities). While spin-offs are not common in the space sector yet, these may follow with the growth and maturity of companies in the sector.

The space sector relies on government-backed funding and private equity and venture capital funding as its main sources of financing. The GoI has dedicated funds:

• INR 500 crore Technology Adoption Fund (TAF) – to help commercialise space technology, development of innovative products, import substitution of certain components;
• INR 1,000 crore Antariksh Venture Capital Fund – to strengthen the space industry in line with India’s Space Vision 2047;
• IN‑SPACe Seed Fund Scheme – to develop innovative technology for space applications; and
• INR 1 lakh crore Research Development and Innovation Fund – to support commercialisation of indigenous technology through risk-sharing and equity-linked financing options.

Indian space-tech start-ups have generally raised early-stage equity funding through venture capital, private equity, and angel investments. Debt financing and late-stage funding remain underexplored.

India has adopted a range of measures to attract investment into the space sector through streamlined authorisations, liberalisation of foreign investment, technology transfer agreements, access to ISRO infrastructure, and regulatory certainty (see 2.2 Legal System and Sources of Space Law and Regulation). In addition, GoI’s fiscal support through dedicated funds have de-risked private capital, and stimulated growth and innovation in the sector (see 7.2 Finance Sources of Space Activities). These measures are complemented by steady state-level monetary incentives and industrial ecosystems for space manufacturing and innovation.

Foreign investment in India’s space sector is governed by the FDI Policy. The revised regime permits up to 74% FDI under the automatic route in satellite manufacturing and operation, satellite data products, and ground and user segment activities, while investments beyond 74% require GoI approval. For launch vehicles, associated systems and subsystems, and creation of spaceports, FDI is permitted up to 49% under automatic route, with investments above this threshold requiring GoI approval. Further, manufacturing components and systems/sub-systems for satellites as well as ground-segment and user-segment activities is open to 100% FDI under the automatic route.

In India, NewSpace constitutes technology start-ups and high-growth enterprises relying primarily on government support and private capital (see 7.2 Finance Sources for Space Activities). In the private sector, fundraising comprises the standard suite of documents, including term sheets, shareholders’ agreements, investment agreements, share subscription and share purchase agreements, and necessary amendments to the target’s constitutional documents.

Transaction documents contain regulatory and compliance-centric provisions, including conditions precedent linked to necessary approvals, and representations, warranties, and covenants ensuring compliance with the applicable law and terms of licences and continuity of authorisations. They also typically address the use of proceeds to ensure alignment with investor expectations and include provisions capturing comprehensive insurance coverage covenants that promoters of NewSpace often obtain. Such provisions are further shaped by sector-specific considerations, depending on the nature of space activity and associated regulatory sensitivities.

As a result, while the core investment documentation remains consistent with that used in standard start-up fundraising, NewSpace documentation is differentiated by approval-linked structuring, regulatory dependencies, and technology, IP, and compliance-driven covenants, making these more nuanced than conventional fundraising transactions.

Regulatory compliances, ownership of IP of the underlying technology and R&D, and material contracts with key stakeholders assume significance in the due diligence process for fundraising in NewSpace deals. A thorough review of existing commercial arrangements with customers, vendors, and strategic partners is essential to evaluate contractual obligations, material dependencies, and risk allocation. Given the regulated, high-risk, and strategic nature of space operations, particular emphasis is placed on governmental authorisations, including scope, duration, conditions, and compliance history, to ensure that the incoming investor is not exposed to historical non-compliances.

At an operational level, due diligence must confirm that the target holds valid operating licences, spectrum rights, satellite registrations, and launch authorisations. This includes compliance with export control and environmental frameworks, adequacy of safety measures and protocols for handling hazardous substances, and insurance coverage for approved activities. Where defence or security approvals are applicable, changes in shareholding or control may trigger fresh approvals.

Separately, intellectual property (IP) due diligence warrants careful examination where technology has been developed under or is linked to government programmes or under technology transfer frameworks, as these may be subject to restrictions on ownership, transfer, or downstream use. Cybersecurity frameworks and data protection compliance should also be independently assessed given the sensitivity of space-related data and systems.

Subject to regulatory and commercial considerations, all Indian companies may generally avail themselves of the same liquidity and exit pathways. These may be through initial public offerings (IPOs), strategic mergers and acquisitions (M&A), secondary sales of shares, share buybacks, or liquidation and winding-up.

• IPOs may yield significant returns, but involve high listing costs and ongoing governance obligations.
• Strategic M&A, secondary sale of shares are, fundamentally, privately negotiated transactions, with their structure, valuation, timing and consideration determined by commercial negotiations.
• Liquidation and wind-up are statutorily prescribed processes that result in the dissolution of the company and the distribution of remaining assets to shareholders and creditors in accordance with a prescribed priority waterfall constituting a final exit for shareholders.

Each of these exit mechanisms is subject to applicable corporate, securities, and foreign exchange laws. Additionally, NewSpace entities remain subject to sectorial regulations. Any changes in ownership or control may necessitate fresh approvals or regulatory review, including by IN-SPACe, given the associated strategic and national security sensitivities.

India has a robust securities market, which has thus far played a limited but gradually evolving role in financing space activities. India’s NewSpace ecosystem is currently characterised by privately held start-ups in early to growth stages, predominantly funded through private capital, and government grants (see 7.2 Finance Sources for Space Activities).

While India does not have any listed “pure-play” space companies, several publicly listed entities are involved in various processes across the space products and services value chain, particularly in defence, aerospace, space components manufacturing, and other defence-linked segments. These entities raise capital through public markets for general corporate purposes and allocate a portion therefrom to space-related activities within a diversified business portfolio rather than for dedicated space-related verticals.

Unlike certain global markets, India’s securities markets have not yet witnessed IPOs of space companies; however, with sectoral growth, space companies are expected to list, leading to more direct participation of securities markets in space financing.

India’s IP framework is principally governed by the Patents Act, 1970 (Patent Act), which does not address outer space activities. The Patent Act operates within the territory of India, preventing enforcement against infringing activities in outer space. It restricts the patentee’s exclusive rights, being the right to prevent unauthorised making, using, offering for sale, selling, or importing, to acts carried out “in India”. The ISP 2023 provides broad policy directions but does not create specific IP entitlements or rules.

Under Article VIII of the Outer Space Treaty, the state of registry exercises jurisdiction and control over a space object, implying that the laws of the registering state would govern IP protection aboard that object. The NGP 2024 mandates registration of space objects, but it does not address any IP-related aspects; therefore, this principle remains uncodified.

Section 49 of the Patents Act incorporates the “doctrine of temporary presence” derived from Article 5ter of the Paris Convention for the Protection of Industrial Property, 1883, exempting foreign-registered vessels and aircraft entering Indian territory temporarily or accidentally from infringement liability. However, WIPO has taken no firm position on whether space objects fall within Article 5ter’s scope, leaving Section 49’s applicability to spacecraft legally untested. Section 47 allows GoI to use patented inventions for its own purposes.

Inventions (products or processes) that are new, involve an inventive step, and are capable of industrial applications can be protected under the Patents Act. Space-related inventions, including propulsion system, satellite components, remote sensing instruments, etc, would be considered patentable in India, the same as any other invention, provided they satisfy the statutory prerequisites and are not “not patentable” under the Patent Act.

Indian NewSpace companies generally seek to protect their inventions through trade secrets and confidentiality. This approach is driven by practical considerations like the speed of iteration, disclosure risk, etc. Patent filings are pursued for core differentiating technologies, such as novel propulsion systems, and sensing payloads. For example, Agnikul Cosmos filed patent applications for its single-piece, 3D-printed semi-cryogenic Agnilet engine, mobile orbital launcher in India, the United States, and the European Patent Office.

NewSpace companies pursue Patent Cooperation Treaty, 1970 (PCT), filings in principal markets and aggressive deployment of trade secrets for mission-critical software and algorithms. The prevailing practice is to build a “geographical moat” by securing patents only in key manufacturing hubs and dominant commercial markets. Mission-critical guidance algorithms and flight-proven operational code are withheld from patent disclosure and protected as trade secrets, relying on equity, non-disclosure agreements under the Indian Contract Act, 1872, and the IT Act.

In addition, ISRO has a structured technology transfer mechanism operating on a non-exclusive basis, with approximately 400 technologies spanning lithium-ion cell technology, NavIC receivers, distress alert transmitters, and special materials. Further, NSIL signed 78 agreements for the transfer of ISRO technology to industry participants.

Under TAF, NGEs retain full ownership of the developed IP, with prior IN-SPACe approval required for subsequent third-party licensing and revenue-sharing obligations until the grant is recovered. State-level incentives include reimbursement of a percentage of Indian IP filing costs.

India has no specific IP enforcement framework for space activities. In the absence of any statutory extraterritoriality, enforcement relies on the terrestrial manufacturing nexus, contractual protections, and the as-yet-uncodified quasi-territoriality analogy.

The Draft Space Activities Bill, 2017, attempted to clarify aspects of protection and ownership of IP developed in the course of space activities and stated that such IP would vest in the GoI. This state monopoly over on-orbit IP was widely condemned as discouraging space investors and omitting key provisions on orbital patents and flags of convenience. The draft was never introduced in Parliament and eventually lapsed, leaving the question unanswered.

As per reports, India is now drawing up a comprehensive redraft of the Space Activities Bill, which abandons the state-appropriation clause in favour of private IP ownership. The new draft has not been publicly released as of the time of writing.

Arbitration agreements are the preferred dispute resolution mechanism for commercial contracts in the space sector as per NGP 2024. NGP 2024 contains an arbitration clause in its terms of authorisation for any disputes arising therein and provides a tiered dispute resolution mechanism where mediation is followed by arbitration. The arbitration process is as per the Arbitration and Conciliation Act, 1996 (Arbitrations Act), with a three-arbitrator tribunal administered by the Gujarat High Court Arbitration Centre and the seat of arbitration at Ahmedabad.

Further, arbitration provisions also feature in contracts executed by NSIL. NSIL’s public procurement documents include arbitration clauses under the Arbitration Act, with the arbitral seat typically designated at Bengaluru.

The Antrix–Devas dispute is the most prominent instance of a private party/foreign investor claim arising from a space-related transaction in India. In 2005, Antrix Corporation Limited (Antrix) executed a contract with Devas Multimedia Limited (Devas) to lease S-band spectrum capacity for broadcasting digital multimedia services. In 2011, Antrix terminated the contract, claiming force majeure, following the GoI’s decision to reserve S-band spectrum for strategic and public purposes. Devas and its foreign shareholders challenged the termination in three proceedings through an ICC arbitration and investor–state arbitrations, each under the India–Mauritius bilateral investment treaty (BIT) and India–Germany BIT. Devas was awarded damages in all three instances. The incident set off a chain of multi-forum, multi-jurisdictional adjudications and enforcement proceedings spanning over a decade, with a few still under resolution.

A recently evolving dispute is linked to IN-SPACe’s restrictions on Chinese-owned satellite operators. In August 2025, the MIB together with IN-SPACe withdrew authorisation for the use of certain foreign satellite capacity operated by Asia Satellite Telecommunications Company Limited (“AsiaSat”) and other operators. Reports indicate that AsiaSat has responded by issuing trigger notices to the GoI and DoS under a BIT challenging this regulatory action. AsiaSat also issued arbitration notices to its broadcaster customers seeking contractual fulfilment. Broadcasters have invoked force majeure in their defence. As the situation is still developing, the outcome remains uncertain. 

TheAntrix–Devasincident is the principal exception in an otherwise sparse landscape of space-related litigation in India. Since India does not have a dedicated statute for the space sector, most disputes have likely been resolved privately through contractually agreed methods of dispute resolution or arbitrations.

However, with the emergence of IN-SPACe as a nodal agency for licensing, cohesive regulations, and increased funding in commercial space ventures, litigations, and jurisprudence thereunder are expected to evolve. Moreover, the AsiaSat matter (see 9.2 Investor-State Arbitration) signals an emergence of disputes arising from IN-SPACe’s exercise of its powers as regulator, its collaboration with other regulators, and the impact of regulations on foreign operators.