The Indian government has finalized a new draft of the Space Activities Bill, marking a significant step toward realizing its ambitious goal of expanding the country’s space economy to $44 billion by 2033. This legislative initiative is designed to facilitate greater private sector participation in the space sector and to grant statutory powers to the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which currently acts as a regulator for private space companies but lacks formal legislative authority.

The bill, originally drafted in 2017, was never introduced in Parliament due to evolving industry dynamics and feedback. Since then, the government has established IN-SPACe in 2020 and unveiled the Indian Space Policy 2023, both aimed at encouraging private sector involvement. However, the absence of a comprehensive legislative framework has become increasingly apparent with the rapid proliferation of private space companies and the need to align with international treaties, which hold the Indian government accountable for all space activities conducted under its jurisdiction.

Key features of the new draft bill include:

Statutory Powers for IN-SPACe: The bill will provide IN-SPACe with legal backing to authorize and regulate private space activities, moving away from the current ad hoc, policy-based system.

Industry-Friendly Provisions: Earlier provisions, such as mandatory government ownership of intellectual property created in space and stringent penalties for violations, have been revised following industry feedback. The new draft offers more balanced penalties and improved protection of intellectual property rights.

Insurance For Space Assets: Responding to a major demand from private industry, the bill will include provisions to facilitate affordable insurance for high-value space systems, addressing a significant barrier for start-ups and new entrants.

Consultative Process: The draft will first be circulated among stakeholder ministries for feedback, followed by broader consultations with other ministries and the public. After incorporating relevant inputs, the final draft will be submitted to the Prime Minister, then the Cabinet, and finally Parliament for approval.

The bill is also expected to support the creation of state-level space manufacturing hubs. States such as Tamil Nadu, Gujarat, and Karnataka have already announced their own space policies and are establishing specialized manufacturing parks. Tamil Nadu’s hub will focus on launch vehicles, Gujarat on satellites and payloads, and Karnataka, home to Bengaluru’s thriving space ecosystem, will serve as a general hub for diverse space activities. IN-SPACe is also in talks with Maharashtra and potentially another state for similar initiatives, with a cap of four to five hubs initially to match sector growth.

India’s space market, valued at $8.4 billion in 2022, is expected to reach $44 billion by 2033, with exports contributing $11 billion. The new bill is seen as a critical enabler for this growth, providing the legal certainty and regulatory clarity needed to attract investment, foster innovation, and ensure compliance with international obligations.

Agencies