1 Introduction
1.1 India’s space sector has moved from a government monopoly to a rapidly opening market in under five years. To catalyse private participation, the Government has launched a seed fund scheme, an INR 1,000 crore venture capital fund, and an INR 500 crore Technology Adoption Fund.[1] The Indian space economy is estimated to be worth USD 8.4 billion as of January 2026, with nearly 400 start-ups operating across various segments of the industry.[2] As of July 2026, private companies in India have demonstrated launch capability, with two companies having flown sub-orbital launch vehicles and more than 30 satellites placed in orbit.

1.2 Prior to 2020, the Indian space sector was monopolised by the Government, with the Indian Space Research Organisation (“ISRO”) being the only agency authorised to conduct activities in space. Subsequently, the Government instituted reforms to encourage participation of non-government entities (“NGEs”) in carrying out end-to-end activities in the space sector. To facilitate and regulate such participation, the Indian National Space Promotion and Authorisation Centre (“IN-SPACe”) was established in 2021 as an autonomous agency under the Department of Space. Today, the sector is governed through a layered framework of policy, executive guidelines, and activity-specific approvals.

1.3 The Indian Space Policy, 2023 (the “ISP”) is the primary policy framework governing space activities to or from Indian territory or within the Indian jurisdiction. Pursuant to the ISP, NGEs may undertake various end-to-end activities in the space sector, including the establishment and operation of any objects in space (i.e. space objects), ground-based assets and provision of related services, such as communication, remote sensing, navigation and other commercial space activities. The ISP also sets out the roles of key Government agencies in the space sector:

1.3.1 Department of Space, which is the nodal department of the Government responsible for implementing the ISP, establishing the framework for space activities and overseeing international cooperation in the space sector;

1.3.2 IN-SPACe, which is the autonomous Government agency responsible for promoting and regulating space activities and facilitating NGE access to ISRO’s infrastructure. In furtherance of the same, IN-SPACe in May 2024 released the Norms, Guidelines and Procedures for Implementation of the Indian Space Policy-2023 in respect of authorisation of space activities (the “NGP”);

1.3.3 ISRO, which is the Government’s agency for developing space technologies and their applications. The ISP also authorises NGEs to benefit from certain satellite data obtained by ISRO; and

1.3.4 NewSpace India Limited, which is a public sector undertaking under the Department of Space responsible for commercialising space technologies developed using public infrastructure.

1.4 Private entities may now undertake the following categories of space activities:

1.4.1 provision of launch and space transportation services, including sub-orbital or orbital launches from Indian territory or outside India, and the establishment and operation of launch infrastructure (“Launch Activities”);

1.4.2 manufacture, establishment and operation of satellites and satellite systems, including communication satellites, remote sensing satellites and hosted payload arrangements where one entity’s payload is carried on another entity’s satellite platform (“Satellite Activities”);

1.4.3 establishment and operation of ground segment infrastructure, including telemetry, tracking and command stations, satellite control centres, mission control centres and data reception stations, whether for self-use or as ground station as a service (“Ground Station Activities”);

1.4.4 dissemination of space-based data pertaining to Indian territory, particularly remote sensing / earth observation data and value-added products derived from such data and development of downstream applications based on such data, communication systems and navigation systems (“Dissemination Activities”);

1.4.5 development and provision of space situational awareness (SSA) services and associated observational infrastructure (“SSA Activities”); and

1.4.6 other ancillary and emerging commercial space activities, including in-orbit support services, operational support, mission support, end-of-life support, technology development, orbital resource filings, and any additional activities that IN-SPACe may recognise from time to time.

2 The Regulatory Regime

2.1 India does not yet have a dedicated statute governing space activities. In 2017, a space activities bill was circulated but not passed by Parliament. Press reports indicated that the Government was preparing a revised draft of the bill as of 2025, which was expected to grant statutory powers to IN-SPACe.[1] However, no such bill has been presented to the Parliament. In the absence of an enacted statute, space activities are addressed principally through executive frameworks such as the ISP and the NGP.

2.2 The NGP is the key operational framework for space activities in India. Each authorisation granted by IN-SPACe under the NGP is activity-specific, meaning a separate authorisation must be obtained for each space activity undertaken. As of 15 October 2026, IN-SPACe had issued 119 authorisations for space activities by NGEs.[2]

2.3 NGEs incorporated as: (i) a company under the Companies Act, 2013; (ii) a limited liability partnership (LLP); (iii) a trust under the Indian Trusts Act, 1882; or (iv) an association of persons or body of individuals incorporated under relevant statutes in India, may undertake space activities.

2.4 Launch Activities

2.4.1 IN-SPACe may authorise NGEs to: (i) conduct orbital or sub-orbital launches; (ii) establish and operate owned, leased or mobile launch facilities; and / or (iii) plan the re-entry of space objects with or without recovery. The operation of low-power rocket launch vehicles for sub-orbital launches is exempt from authorisation requirements, but must comply with IN-SPACe’s guidelines on Sub-Orbital Launches including Model Rocketry issued in April 2026.

2.4.2 Depending on the mission, additional clearances may be required from the Petroleum and Explosives Safety Organisation and maritime authorities, and if the launch is to be undertaken outside India, the relevant foreign administration. A launch requiring the use of wireless telecommunication, may require a separate authorisation from the Wireless Planning and Coordination Wing of the Department of Telecommunications (“WPC”).

2.4.3 Launch Activities as a service

NGEs may launch space objects of other entities or provide their launch facility to other entities, provided that such entities have received requisite authorisations from IN-SPACe. If the space object launched by the NGE is owned by a foreign entity, specified risks and liabilities must be allocated in the contract with that foreign entity.

2.5 Satellite Activities

2.51. IN-SPACe authorisation is required for the establishment and/or operation of satellites. The authorisation is typically valid until the end of the satellite’s life, unless non-Indian orbital resources are utilised.

2.5.2 Communication satellites

(i) NGEs typically provide the following communications services through satellites:

(a) telecommunications services, including services provided to telephone companies and wireless, mobile and cellular network providers;

(b) broadcasting services, including radio and television services delivered directly to the consumer and mobile broadcasting services; or

(c) data communications services, involving the transfer of data from one point to another. Corporations may also use satellites to facilitate global information exchange (whether for commercial or captive use) through small-aperture terminal (VSAT) networks.

(ii) IN-SPACe authorisations for satellites providing communication services depend on their ownership and purpose. NGEs may additionally be required to make filings with the International Telecommunications Union through the WPC to register orbital positions and radio frequencies. Alternatively, NGEs may take advantage of any unutilised allotment / assignment to the Indian administration or unutilised filings in the coordination stage.

(iii) Authorisation under the Telecommunications Act, 2023 must also be obtained from the Department of Telecommunications (DoT) through the Saral Sanchar portal for the provision of satellite-based communication services. The relevant authorisation depends on the type of communications service and the use of frequency or spectrum. Broadcasting services also require authorisations from the Ministry of Information and Broadcasting (MIB) through the Broadcast Seva Portal.

(iv) Both the DoT and the MIB prescribe conditions for applicants depending on the type of authorisation sought, including change of control intimations and data localisation requirements in certain instances.

2.5.3 Hosted payload arrangements

NGEs conducting Satellite Activities may host payloads of other entities on their satellite. IN-SPACe authorisation is required for: (i) payloads owned by Indian entities hosted on foreign satellites; and (ii) payloads of Indian or foreign entities hosted on Indian satellites.

2.5.4 Manufacture of satellites

Manufacture of satellites or their components does not typically require IN-SPACe authorisation, but details of the process. may need to be disclosed as part of seeking authorisation for the satellite. Certain satellite components may also be regulated under the SCOMET regime and require authorisation from the Directorate General of Foreign Trade for export.

2.6 Ground Station Activities

2.6.1 Ground stations are terrestrial radio facilities established to facilitate communication with space objects. IN-SPACe authorisation is required for the establishment and/or operation of ground stations, including: (i) satellite control centres, including telemetry, tracking and command stations and mission control centres; (ii) remote sensing data reception stations; and (iii) ground stations supporting SSA Activities, astronomical, space science or navigation missions.

2.6.2 IN-SPACe authorisation is not required for setting up gateways or hubs to support satellite communication services (such as direct-to-home or VSAT services), which are governed by regulations prescribed by the DoT and MIB. Approval is also not required for the establishment and operation of ground stations operating on amateur frequencies; however, such stations must be registered with IN-SPACe prior to use.

2.6.3 NGEs may also establish ground stations to provide commercial services (i.e. ground station as a service). NGEs must maintain complete records of the satellites and satellite owners being supported and provide same to IN-SPACe upon request.

2.6.4 Ground stations may be established outside India only where the applicant NGE can demonstrate that significant technical or business advantages are gained by choosing a foreign location. Authorisation is also subject to such stations not posing a threat to national security, foreign relations, national intelligence or security operations of India.

2.6.5 Depending on the station type and service model, the ground station may also require separate approvals or spectrum assignments from the DoT / WPC.

2.7 Dissemination Activities

2.7.1 Authorisation from IN-SPACe is required for the dissemination of space-based earth observation or remote sensing primary data that is: (i) at a ground sampling distance (GSD) of 30 cm at nadir or lesser; or (ii) at a GSD of more than 30 cm at nadir and commercially transacted (collectively, this data is referred to as “Primary Data”). NGEs need only obtain a one-time registration as a data disseminator for the intended satellite or payload.

2.7.2 Dissemination covers the supply, sale, or distribution of Primary Data to a user for further usage, processing, or development of data products, applications, or application interfaces, whether for commercial or free-of-cost use. It includes the direct download of Primary Data through cloud, website, portal, internet or any other means. Dissemination or use of value-added products developed from Primary Data sourced from authorized NGEs does not require further authorisation from IN-SPACe.

2.7.3 Where data obtained from space is used for the generation, preparation, publication, updating, dissemination or storage of geospatial data, geospatial data services or maps, the NGE will also need to comply with the Guidelines for Acquiring and Producing Geospatial Data And Geo Spatial Data Services Including Maps, 2021 issued by the Department of Science and Technology.

2.8 SSA Activities

2.8.1 SSA Activities cover the acquisition and maintenance of comprehensive knowledge and continual awareness about the current status and future evolution of space objects and the space environment. IN-SPACe has separately issued Norms, Guidelines and Procedures for Implementation of the Indian Space Policy-2023 in respect of authorisation for undertaking Space Situational Awareness (SSA) related Activities (“NGP-SSA”) in June 2026. The NGP-SSA requires NGEs to seek separate authorisation for each SSA Activity, including: (i) establishment and/or operation of space-based SSA sensors; (ii) establishment and/or operation of ground-based SSA sensors; and (iii) provision of SSA services.

2.8.2 Authorisation is not required for ground-based astronomy or non-commercial activities by individual hobbyists, amateurs, formal or informal groups, or academic entities, provided that such activities meet the criteria set out in the NGP-SSA.

2.8.3 The NGP-SSA provides for differentiated regulatory treatment depending on the sensitivity of the data, including “restricted” and “controlled” tiers and obligations relating to controls on remote access, dissemination restrictions, end-use certificate requirements and audit and reporting obligations.

2.9 Other obligations of NGEs

2.9.1 Registration of space objects

Any space objects owned and controlled by an Indian NGE must be registered in the Registry of Space Objects maintained by India, as required by the Convention on Registration of Objects Launched into Outer Space.

2.9.2 Standards for manufacture

Components, technologies and hardware used by NGEs for conducting space activities must adhere, where applicable, to the Catalogue of Indian Standards for the Space Industry, established by the Bureau of Indian Standards and IN-SPACe.

2.9.3 Terms and conditions of authorisation

The NGP sets out the general terms and conditions applicable to each authorisation, including: (i) non-transferability of registration; (ii) intimations regarding changes in shareholding and control; (iii) adherence to IN-SPACe guidelines; (iv) intimations regarding changes in the terms of operations of space objects or criminal liabilities of stakeholders of NGEs; and (v) the manner of conducting space activities.

2.9.4 Cybersecurity in the Satellite Communication Sector

(i) The Indian Computer Emergency Response Team (“CERT-In”) in association with the SatCom Industry Association (SIA-India) released the Cyber Security Framework and Guidelines for Space including Satellite Communication (the “CS Framework”) on 26 February 2026. It applies to stakeholders of such activities, including any NGE conducting Satellite Activities, Ground Station Activities or SSA Activities in the satellite communications segment. While the CS Framework is advisory in nature, it uses mandatory language when referring to the obligations of NGEs. Additionally, NGEs conducting SSA Activities are mandated by the NGP-SSA to adhere to the CS Framework.

(ii) The CS Framework imposes several compliance obligations on NGEs, including:

(a) reporting all confirmed or suspected cybersecurity incidents to CERT-In within six hours and maintaining incident logs for a minimum of 180 days, in line with the 2022 CERT-In Directions;

(b) ensuring that hardware, firmware, and cryptographic modules are certified under recognised standards;

(c) ensuring supply chain assurance by procuring hardware and software from trusted sources in accordance with applicable directives and conducting supply chain risk assessments and audits before integration or deployment;

(d) undergoing annual cybersecurity audits through CERT-In empanelled auditors and conducting internal cybersecurity audits at least once every six months; and

(e) designating a Chief Satellite Security Officer (CSSO) to oversee cybersecurity governance.

3. Foreign Entities in the Space Sector

3.1 Foreign entities cannot independently conduct space activities in India. Authorisation for space activities may only be applied for by Indian NGEs, and such application may be made through a subsidiary, joint venture or via a separate collaboration agreement. In such cases, the foreign entity will typically be required to undertake that the control of the space object remains wholly with the Indian entity.

3.2 Foreign direct investment (FDI) in the Indian space sector is governed by the sectoral guidelines issued by the Department of Space, read with the Foreign Exchange Management Act, 1999 and the rules thereunder. FDI is presently allowed up to 100% of the holding of NGEs conducting space activities, subject to government approval beyond certain holding percentages:

#	Description of Space Activity	FDI
1.	Satellites – manufacturing and operation, satellite data products, and ground segment and user segment	Automatic route up to 74%, government approval required for investment beyond 74%.
2.	Launch vehicles and associated systems or sub-systems, and creation of spaceports for launching and receiving spacecraft	Automatic route up to 49%, government approval required for investment beyond 49%.
3.	Manufacturing of components and systems / sub-systems for satellites, ground segment and user segment	Automatic route up to 100%, no government approval required.

3.3 While an NGE may be a trust or an association of persons (as described above), FDI is currently permitted only in Indian companies. FDI in LLPs is permitted under the automatic route only in sectors where 100% FDI is allowed and there are no FDI-linked performance conditions.

3.4 Notification of foreign investment under the automatic route must be provided to IN-SPACe within 30 days of receipt of funds by the investee company. Further, any foreign investment resulting in a transfer of stake by an existing investor to a new foreign investor, or a transfer of ownership and/or control of Indian entities from resident Indian citizens to non-resident entities, requires mandatory submission of a declaration to IN-SPACe within 30 days of such change.

4. Conclusion

India’s space sector has come a long way in a short time. The reforms of the last five years have dismantled a decades-old government monopoly, opened the door to private enterprise across the value chain, and created a regulatory architecture that, while still evolving, already covers the full spectrum of space activities – from launch and satellite operations to ground stations, data dissemination, and space situational awareness.

India’s existing FDI regime is significantly liberalised – allowing 100% foreign investment with automatic route thresholds. Combined with the Government’s seed fund, venture capital fund, and Technology Adoption Fund, the policy signals are unambiguous: India wants private capital, technology, and talent in its space sector. The fact that IN-SPACe had issued 113 authorisations by mid-2026 suggests a strong response.

The missing piece is dedicated space legislation. The current framework rests on executive policy and guidelines, which can be amended without parliamentary oversight and lack the predictability that long-cycle space investments demand. The proposed Space Bill, if enacted with provisions granting statutory backing to IN-SPACe and clear liability allocation for space activities, would close this gap and give investors the legal certainty they need.

For investors, founders, and established companies evaluating India as a space market, the window between the current policy-driven momentum and the eventual statutory framework is an opportunity to position early. The convergence of a single-window authorisation process, state-backed funding, and a pro-growth policy environment makes this a compelling entry point into a space economy projected to grow to over USD 40 billion over the next decade.[1]

Footnotes

[1]Press Information Bureau, Vikram-1: Charting India’s Cosmic Future, 18 July 2026, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2286011&reg=48&lang=2.

[2] Press Information Bureau, India’s space economy at USD 8.4 billion, nearly 400 start-ups active after sector opened to private players: Dr. Jitendra Singh, 29 January 2026, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2220433&reg=48&lang=2.

[3] Press Information Bureau, Parliament Question: Private Sector Participation In The Space Sector, 29 July 2026, available at https://www.pib.gov.in/PressReleasePage.aspx?PRID=2291077&reg=48&lang=2.

[4] Anonna Dutt, To fuel USD 44-billion space push, Centre finalises Space Bill to boost private sector, give IN-SPACe statutory powers, 24 May 2025, Indian Express, available at https://indianexpress.com/article/india/space-bill-india-centre-govt-private-sector-boost-44-billion-10025633/.

[5] IN-SPACe, Authorisations Issued by IN-SPACe, available at https://www.inspace.gov.in/inspace?id=inspace_authorizations .

Authors: Pratika Shankar – Partner and Aanchal Kabra – Associate

Disclaimer – This note only highlights key issues and is not intended to be comprehensive. The contents of this note do not constitute any opinion or determination on, or certification in respect of, the application of Indian law by Talwar Thakore & Associates (“TT&A”). No part of this note should be considered an advertisement or solicitation of TT&A’s professional services.