For decades, India’s space story revolved around ISRO, a state-led model focused on research, exploration, and national missions. While this framework delivered scientific success, it left limited room for private enterprise. As global space commerce accelerated and Indian startups emerged with satellite and launch capabilities, the need for a clear regulatory pathway became evident.
The Indian Space Policy 2023[1] answers that call. It shifts India’s space governance from a government-centric system to a collaborative, market-driven framework, where private entities can design, build, and operate space infrastructure under defined oversight. This transition from monopoly to market marks the beginning of a new orbit in India’s spacetech evolution — one that blends innovation with regulation.
The Policy in Context – Why Now?
Globally, the space industry has moved from government laboratories to private launchpads. Companies like SpaceX and Rocket Lab have shown that innovation and scale often thrive outside traditional state systems. India, with its strong scientific base and rising startup ecosystem, could not remain on the sidelines of this commercial revolution.
The timing of the Indian Space Policy 2023 reflects both opportunity and necessity: the opportunity to attract private investment and technology, and the necessity to align India’s framework with global norms of authorization, liability, and commercialization. By formally opening the sector, the policy signals that India is ready to transform its scientific success into economic leadership, ensuring that space is not just explored but also responsibly and profitably utilized.
Evolution of India’s Space Governance:
India’s space governance has progressed through clear and deliberate stages, from scientific exploration to institutional maturity, and now toward regulatory reform:
1. Early Framework (1960s–1970s):
The Indian Space Research Organisation (ISRO) was established in 1969, followed by the Department of Space (DoS) in 1972. ISRO functioned as both operator and regulator, reflecting a state-led model suited to an era focused on research, self-reliance, and strategic objectives.
2. Emergence of Private Capability (2000s–2010s):
Over time, Indian enterprises began developing expertise in satellites, payload components, and launch technologies. However, their role remained limited to being suppliers or subcontractors to ISRO, with no independent regulatory framework enabling private operations.
3. Shift Toward Institutional Reform (2020):
Recognising the potential of private participation, the Government established the Indian National Space Promotion and Authorisation Centre (IN-SPACe) as a single-window interface to promote, authorise, and regulate non-governmental space activities.
4. Commercialisation of ISRO Functions (2020 onward):
The creation of NewSpace India Limited (NSIL) marked ISRO’s transition of commercial activities such as launch services and satellite operations to a dedicated corporate arm.
5. Codification through Policy (2023):
The Indian Space Policy 2023 consolidates these reforms by clearly delineating institutional roles: ISRO as researcher, IN-SPACe as regulator, NSIL as commercial executor, and private entities as authorised operators.
Together, these developments signify India’s shift from a centralised mission-led model to a multi-actor governance framework that encourages innovation, investment, and accountability.
Key Pillars of the Indian Space Policy 2023
The Indian Space Policy 2023 establishes a clear, multi-stakeholder framework designed to promote private participation while retaining national oversight. It rests on a few defining pillars that together mark a shift from control to collaboration.
1. Clarity of Institutional Roles:
The Policy distinctly separates functions that were earlier concentrated within ISRO.
(a) ISRO will focus on research, technology development, and national missions.
(b)IN-SPACe acts as the nodal body for authorising and supervising private space activities.
(c) NSIL serves as ISRO’s commercial arm, handling satellite launches, services, and technology transfers.
(d) Private Entities may independently build, launch, and operate space systems with prior authorisation.
2. Promotion of Private Participation:
The Policy encourages industry-led growth by allowing non-government entities to participate across the entire value chain, from satellite design to downstream data services thereby creating a competitive domestic spacetech ecosystem.
3. Ease of Doing Business:
IN-SPACe operates as a single-window interface to streamline authorisations, promote transparency, and facilitate technology access through ISRO and NSIL.
4. National Oversight and Security:
All activities remain subject to India’s international obligations and national security safeguards, ensuring that commercialisation does not compromise strategic interests.
By defining roles and responsibilities with precision, the Policy establishes the foundation for a regulated, innovation-driven space economy built on partnership rather than exclusivity.
The Legal Layer – Policy Without Statute
While the Indian Space Policy 2023 outlines a governance framework, it remains an executive policy rather than a statutory enactment. Its implementation derives authority from the executive powers of the Union Government but lacks legislative enforceability. Consequently, matters such as liability, insurance, and dispute resolution rest on administrative discretion rather than legal mandate.
India is a signatory to the Outer Space Treaty (1967) and the Liability Convention (1972), which make the State internationally responsible for activities conducted by its nationals in outer space. In the absence of enabling legislation, the mechanism for allocating such liability between the government and private operators remains undefined. A dedicated Space Activities Act is therefore essential to translate policy intent into binding legal certainty.
Commercial and Regulatory Implications
The Indian Space Policy 2023 unlocks significant commercial potential while introducing a structured compliance regime for private entities. All non-government participants must obtain authorisation from IN-SPACe before undertaking any space activity including satellite manufacturing, launch operations, or data services.
Private entities are expected to bear liability for damages caused by their space objects, aligning with India’s international obligations. They must also maintain adequate insurance and risk management mechanisms once prescribed under future regulations. Intellectual property generated from privately funded activities remains with the developer, subject to national security and contractual terms.
By defining these parameters, the Policy lays the groundwork for a transparent and accountable space economy. It encourages private investment and innovation while ensuring that commercial operations remain consistent with India’s international commitments and sovereign control.
Challenges and Road Ahead
While the Indian Space Policy 2023 sets a strong policy foundation, its success will depend on how effectively it transitions from executive intent to legislative and institutional reality. Several structural and operational challenges persist.
The foremost gap is the absence of a comprehensive Space Activities Act to give statutory force to the policy. Without such legislation, authorisations issued by IN-SPACe remain administrative, not legally enforceable. Liability sharing between the government and private operators, mandatory insurance coverage, and dispute-resolution procedures lack definitive legal backing.
Operationally, overlapping functions among ISRO, IN-SPACe, and NSIL could lead to procedural ambiguity unless coordinated through clear standard operating frameworks. Similarly, technical areas such as orbital debris management, data utilisation, and cross-border technology transfers demand codified rules aligned with international best practices.
For private players, predictable licensing timelines, clarity on risk indemnification, and transparent commercial norms will be critical to sustaining investor confidence.
Looking ahead, the government’s challenge lies in transforming this policy into a codified regulatory regime that balances innovation with accountability. If complemented by legislation and robust institutional coordination, India could evolve from a scientific powerhouse to a commercial spacetech hub anchoring its next phase of growth on lawful governance, investor trust, and global competitiveness.
[1] https://www.isro.gov.in/media_isro/pdf/IndianSpacePolicy2023.pdf