LEGAL GAPS IN INDIA’S SPACE LIABILITY REGIME: A STUDY OF EMERGING PRIVATE SECTOR PARTICIPATION

The ongoing increase in the growth of private participation in the Indian space industry is a change in thinking from the traditionally state-centric model started by the Indian Space Research Organisation (ISRO) to a more commercialized industry with the support of organizations such as Sky root Aerospace, IN-SPACe. With the rise of private players in the field of satellite manufacturing, launch services, and space-based data services, the issue of legal accountability and liability assumes great significance.
The current international legal framework on space liability, as reflected in international treaties such as the Outer Space Treaty and the Liability Convention, highlights the responsibility of nation-states for various space-related activities, including those conducted by private players. The effectiveness of this international legal framework, which was set up in a traditionally state-centric model of space exploration, is questionable.
In the context of India, the lack of legislation, which is comprehensive and enforceable national regulations, despite the Draft Space Activities Bill 2017, represents a challenge. Issues related to indemnification, insurance obligations, risk allocation, and dispute resolution mechanisms have not been adequately addressed. This represents a challenge not only for the private players but also for the state, as it bears international liability, this also includes the life of people inside a Nation-state.
This research points out the existing loopholes in the Indian system, which need to be addressed by providing clarity on the division of liabilities between the government and private players, lack of compensive methods, and the absence of risk-sharing models. In addition, this research highlights the need for an effective balance between encouraging innovation in the space sector by using the comparative method with other developed space-surfing countries.
This research concludes with the proposed legal and policy reforms necessary for creating an effective framework for private space companies. These reforms include the formulation of an overarching space law, creating licensing and insurance schemes, and the adoption of a “tiered system” for sharing liabilities between the government and private players. These reforms are necessary for promoting sustainable growth in the emerging space economy while fulfilling international legal obligations.