Space Law and Enterprises: Regulating Commercial Space Exploration

Published on: 05th January 2026

Authored by: Iflah Batool
ILS Law College, Pune

ABSTRACT

The global scenario in the twenty-first century with regards to the exploration of outer space has experienced an immense shift, from state-led ventures leading the way, to the current reins held by private corporations like Space X, Blue Origin, and India’s Skyroot Aerospace. Such private entities are reshaping this domain, with the use of new and improved technologies in interplanetary exploration.

This paper seeks to critically evaluate the evolving arena of Space Law in conjunction with commercial space exploration by private enterprises. It analyses international treaties put in place concerning space exploration in the modern world, specifically the Outer Space Treaty of 1967. It also examines India’s legal standpoint through the Indian Space Policy, 2023, and the draft Space Activities Bill, 2017.

INTRODUCTION

The commercialisation of space marks one of the most remarkable developments in modern science, and the domain of International Law. The exploration of space started as a geopolitical race between global powers. In these times, it has become commercially driven, with private conglomerates making their way into this sector. The rise of “New Space”, a term denoting participation of private entities in space technology, has transformed the access of humanity to outer space, by use of progressive technology and reduced costs.

However questions arise, around whether in the future a geopolitical power or a private corporation will be able to own a monopoly over the planets or the moon. Or whether such private enterprises will be able to mine the asteroids or build in outer space, and whether they will be held liable for the damages caused during private missions. Another crucial question is how will countries be able to regulate the workings of such firms without becoming a hurdle to the progress of science and humanity. Answers to these questions lie in the developing field of Space Law, which is proving the gravity of its existence with the advancement of the times.

EVOLUTION OF SPACE LAW

The current Space Law consists of five international treaties. Evolution of Space Law as a new branch of international law began in the 1960s, particularly with the launch of Sputnik 1 by the Soviet Union in 1957. Prompted by a sense of competition, US President Dwight D. Eisenhower raised the issue of Space Law at the UN. [7] This brought about the Outer Space Treaty of 1967. This Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space serves as the fundamental document in the arena of Space Law. It established the free exploration of outer space by all nations of the world, use of space for peaceful purposes, and prohibits the use of weapons of mass destruction. [3]

Subsequent developments like the Rescue Agreement (1968) and the Liability and Registration Conventions (1972) focused on the return of distressed astronauts and space objects, [4]and holding states liable for damages caused by space objects they launched as part of their mission, respectively. [1] The 1976 Registration Convention mandated the registration of such objects with the United Nations (UN). [5] Later in 1979, the Moon Agreement was signed, which regarded the Moon as the “common heritage of mankind”. [2]

COMMERCIALISATION OF SPACE, AND RISE OF PRIVATE SPACE ENTITIES

In the twenty-first century global space exploration scenario, private enterprises and big conglomerates now play a ground-breaking, transmorphing role. Such firms include:

  • Space X, which is popular for developing reusable rockets, and has commercialized satellite launches
  • Blue Origin, which is leading the way in the domain of space tourism
  • Planet labs, which operates one of the largest private constellations of satellites globally
  • Indian startups in the satellite market (Skyroot Aerospace, Dhruva Space)

INTERNATIONAL LEGAL CHALLENGES

  • Environmental protection: The treaties in place currently lack provisions granting protection to the environment, which could be harmed due to space debris and unregulated launches, leading to contamination of the environment of the space.
  • Liability and Accountability: The Liability and Registration Conventions (1972) holds the “launching state” responsible for damages. [1] But on an international level, where the concept of borders thins out into ambiguity, it is difficult to render an entity liable.
  • Jurisdiction: Determining jurisdiction over private entities and their involvement in outer space seems almost impossible due to gaps in diplomacy and foreign policy of nation states.
  • Ownership rights: The Outer Space Treaty (1967) prohibits monopolizing of outer space by only one power or a group of powers as the treaty considers the whole of humanity as its custodians. However, it keeps silent with regards to the resources extracted during private missions. [3]

INDIA’S STANCE ON SPACE LAW

India has displayed its legal stance on Space Law through the formulation of the The Indian Space Policy, 2023. It provides an overarching, composite and dynamic framework for India’s spacefaring. [8] The policy allows the entry of the private sector into commercialisation of outer space under the supervision of the Indian National Space Promotion and Authorization Centre (IN-SPACE). It revises roles for government bodies such as ISRO, IN-SPACe, and NSIL. However, it lacks statutory authority for enforcement.

Prior to the 2023 bill, the Indian Parliament had begun working on the draft Space Activities Bill, 2017. Key provisions and objectives of the bill were as follows:

  • To promote innovation
  • To encourage private and non-governmental participation
  • To establish a regulatory statutory body (IN-SPACe)
  • To promote safety and protection of the environment [6]

CONCLUSION

The commercialisation of outer space presents both an opportunity and a challenge. Space exploration has opened new doors for the advancement of science. At the same time, legal frameworks must evolve so as to ensure that the arena of outer space remains peaceful, and the progress of humanity does not threaten the survival of living beings. In India, the field is in its developmental stages as of now. And provided enough attention and resources, India’s space policy will pioneer the domain of Space Law, setting positive precedents for the rest of the globe.

REFERENCES

[1] Liability and Registration Conventions, 1972

[2] Moon Agreement, 1979

[3] Outer Space Treaty, 1967

[4] Rescue Agreement, 1968

[5] Registration Convention, 1976

[6] (Draft) Space Activities Bill, 2017

[7] The Development of Space laws

https://www.cyberpeacecorps.in/the-development-of-space-laws/

[8] The Indian Space Policy, 2023

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