The Legal Gray Zone of Space Mining in India: Policy Private Enterprise and the Impending Space Activities Bill

INTRODUCTION 

Humanity is entering an era where the resources that sustain our digital, defense, and energy systems may no longer come from Earth alone. The extraction of minerals from asteroids, the lunar surface, and other celestial bodies is the idea of Space mining. Asteroids rich in platinum and rare earth metals have become the subject of global and commercial attention. Countries such as the United States, Luxembourg, Japan, and the United Arab Emirates have already begun laying their legal frameworks for space mining. In India, however, no public and governmental undertakings are currently pursuing space mining. Instead, private aerospace startups are exploring long term possibilities in this field. Despite this momentum, India remains in a legal gray zone. This raises questions regarding the legal permissibility of aerospace startups to extract resources beyond the Earth without any defined spacefaring laws.

INDIA’S EVOLVING SPACE IDENTITY: A BACKGROUND OF TREATIES, CAPABILITIES, AND EMERGING PRIVATE PARTICIPATION

India being a signatory to various United Nations treaties governing outer space activities and thus its space programmes must comply with the obligation arising therefrom. This commitment is constitutionally reinforced through the Articles 51 and 253 of the Constitution of India, which respectfully encourages respect for international laws and empowers Parliament to enact legislations for the implementation of international treaties.

Historically, the activities of Indian Space Research Organisation (ISRO) have been regulated through sector-specific executive policies such as the Satellite Communication Policy, 2000, and the Remote Sensing Data Policy, 2011 along with India’s international obligations under the United Nations Committee on the Peaceful Uses of Outer Space (UNCOPUOS). However these instruments are limited to satellite communication and data dissemination.

Notably, none of these policies or treaties address the extraction, ownership, commercial utilization or regulation of space resources. As a result, India lacks dedicated legal frameworks governing space mining or in-situ resource utilization, thereby creating a legal gray zone for commercial space mining activities.

As an early signatory to the Outer Space Treaty, 1967, India aligns well with the global principle that the celestial bodies cannot be owned or appropriated by any nation; however, the treaty remains ambiguous on the ownership of the extracted resources. This was clarified under the US-led Artemis Accords in 2023, with India as an active participant showing its interest in space resource extraction. The Indian National Space Promotion and Authorisation Centre (IN-SPACe), an autonomous government organization plays a pivotal role in authorizing private space activities, including access to ISRO facilities. This has  played a significant role in  the growth of private space startups.

While companies like Skyroot Aerospace and Agnikul Cosmos, Pixxel are primarily focused on developing launch vehicles and propulsion systems, startups like Big Dipper Exploration Technologies and Mineral Space are engaged in in-situ resource utilization (ISRU) and lunar infrastructure, which are foundational to future space mining efforts. 

In summary, India is gradually positioning its private sectors through regulatory support and international engagement to eventually participate in the space resource extraction in the near future.

INDIA’S EMERGING REGULATORY FRAMEWORK: SPACE POLICY 2023 AND THE STALLED SPACE ACTIVITIES BILL, 2017

The Indian Space Policy, 2023 was approved by the Union Cabinet and released by ISRO, which aims to attract private participation by empowering IN-SPACe to authorise nongovernment space activities. However, the policy is highly criticised for the absence of statutory backing, unclear liability rules, and ambiguity in IN-SPACe regulatory authority.

On the other hand, India’s draft on the Space Activities Bill, 2017, which was intended to address regulation, licensing, and liability, still has not been enacted and is under rework, to give statutory status to IN-SPACe and formal powers for authorization and regulation.

Salient features of the Space Policy, 2023:

• Role of IN-SPACe

The Indian Space Policy 2023 marks a significant shift in India’s space governance and opens the way for private and non-governmental entities to perform space activities. One of its central features is the formal recognition and empowerment of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) as the primary regulatory and facilitative body for authorizing space activities.

• Commercialization of Space Activities – New Space India Limited (NSIL) 

While ISRO is tasked with research, development and national missions, IN-SPACe carries out the regulation and promotion of private enterprises, and New Space India Limited (NSIL) functions as a commercial arm for the space-related activities. This structural separation aims to reduce conflicts of interest and enhance transparency.

• Fostering Private Investments and Innovation in Space Activities 

The Space Policy 2023, encourages private investments and innovation across the entire space value chain, including launch services, satellite operations, space based applications, and emerging activities such as in- situ resource utilization (ISRU).

Drawbacks of Space Policy, 2023

However, despite its progressive outlook, the Space policy, 2023 is still an executive policy without a statutory force. The policy lags behind in defining liability regimes, ownership of space resources, dispute resolution mechanisms, or enforcement powers, thereby limiting its effectiveness in regulating complex commercial activities such as space mining.

Salient features of the Space Activities Bill, 2017 

• Objective and Legislative Intent

The Draft Space Activities Bill of 2017 was written in order to provide a comprehensive legal framework for regulating space activity in India. One of the primary goals of the bill is to provide a legal basis for ensuring that India is compliant with its obligations under international treaties such as the Outer Space Treaty (1967) and the Convention on International Liability for Damage Caused by Space Objects (1972).

• Mandatory Licensing of Space Activities

A major component of the Bill included the implementation of a mandatory licensing system for any party wishing to engage in any type of space activity, regardless of whether the party was a government or private corporation. The Central Government was responsible for issuing all licenses, thereby allowing them to maintain oversight and control of the space-related operations by Indian entities.

• State Responsibility and International Liability

In accordance with the principles of international space law, the bill would establish an international liability for damage to be done by a space object by the Government of India. This is consistent with a state’s liability under international treaties as applied to a nation regardless of whether a space object was carried out by a state or was by a state activity carried out by a private entity.

• Insurance and Indemnification Requirements

The bill also requires licensed entities to have sufficient insurance in place to protect against international liability. Additionally, Private operators are required to indemnify the Central Government for any claims resulting from their space activities, thus shifting a significant burden of financial risk to the Private Sector.

• Registration, Safety, and Accident Investigation

The bill sets out registration requirements for any object launched from the territory of India or by an Indian entity. Additionally, it establishes regulatory frameworks regarding safety management, monitoring of space-related activities, and investigations into accidents or incidents resulting from the launch or use of space objects.

• Protection of Intellectual Property Rights

The bill also included provisions of intellectual property rights generated during the space activities. However, certain ambiguities regarding ownership and control of such intellectual property attracted criticism from legal scholars and industry stakeholders.

• Penal Provisions for Unauthorised Activities

To deter unauthorised space activities, the bill also included penalty provisions, including monetary fines and imprisonment to ensure compliance with the norms.

Criticisms and Limitations of the Draft of Space Activities Bill, 2017

• The bill does not expressly address space mining or space resource extraction. This omission reflects the nascent stage of commercial space activities in India at the time of drafting and underscores the bill’s inadequacy in addressing emerging technologies such as in-situ resource utilisation (ISRU).
• The bill is criticized for being highly centralized, granting wide discretionary power to the Central Government. Additionally, the bill failed to clearly define liability caps, ownership rights, and risk-sharing mechanisms, creating uncertainty for private investors.

GLOBAL PERSPECTIVES ON SPACE RESOURCE GOVERNANCE: A COMPARATIVE ANALYSIS

Several spacefaring nations have adopted specific legal frameworks to regulate space resource extraction and exploration. The research provides for a comparative analysis on space mining laws across the globe.

• United States- The Commercial Space Launch Competitiveness Act, 2015

The Congress passed the Commercial Space Launch Competitiveness Act, 2015, which explicitly states that U.S. citizens will have the right to purchase, own, use, and sell space resources acquired through commercial means, although they are still under the supervision and regulation of the federal government. This law reinforces that all parties will abide by the provisions of the Outer Space Treaty while providing an alternative reading of Article II regarding the difference between the ownership of resources vs. the appropriation of territory. This clarification has allowed the United States to be a leader among nations interested in developing commercial space mining ventures.

• Luxembourg- the Exploration and Use of Space Resources, 2017

Luxembourg enacted the law on the Exploration and Use of Space Resources, 2017, becoming the first European country to explicitly recognise ownership of extracted space resources. The law establishes a licensing regime accompanied by financial, governance, and risk-management requirements, thereby offering a predictable legal environment for private space enterprises. Luxembourg’s approach reflects a deliberate policy choice to attract space mining companies through regulatory certainty.

• United Arab Emirates- Federal Law No. 12 of 2019

The UAE introduced Federal Law No. 12 of 2019 on the Regulation of the Space Sector, which regulates space activities including the exploration and utilisation of space resources. Administered by the UAE Space Agency, the law creates a comprehensive authorisation framework governing commercial space operations. Subsequent regulatory instruments clarify that ownership and commercial use of extracted space resources are permissible under domestic law, reinforcing the UAE’s ambition to become a regional space hub.

• Japan- The Promotion of Business Activities Related to the Exploration and Development of Space Resources, 2021

Japan enacted the Act on the Promotion of Business Activities Related to the Exploration and Development of Space Resources, 2021, which provides a licensing system for private entities engaged in space resource activities. The Act recognises proprietary rights over extracted resources upon governmental authorisation and integrates space mining regulation into Japan’s broader space governance framework, balancing commercial interests with international obligations.

• Artemis Accords (Normative Framework)

The Artemis Accords is not legally binding, however represent a significant normative development in space resource governance. The Accords clarify that the extraction and utilisation of space resources do not constitute national appropriation under Article II of the Outer Space Treaty. The participation of multiple spacefaring and emerging space nations, including India, reflects a growing international consensus favouring regulated commercial space resource activities.

Comparative Insights

A comparative analysis reveals that countries such as the United States, Luxembourg, the UAE, and Japan have adopted domestic legislative frameworks recognising commercial space resource activities, primarily through licensing and regulatory oversight. In contrast, India continues to rely on executive policies without statutory backing, resulting in legal uncertainty for space mining and in-situ resource utilisation. This divergence underscores the need for India to enact a comprehensive space law aligned with evolving international practice.

CONCLUSION & SUGGESTIONS 

From a legal perspective, the absence of enactment of the Space Activities Bill, 2017, undermines many of the goals of the 2023 policy. Without proper codification of laws the IN-SPACe guidelines may be vulnerable to judicial challenges under the doctrine of ultra vires. The lack of a formal legislative framework also raises questions about long-term liability, liability insurance, and enforcement, which are critical for sustainable space investment; thus, this urges the demand for a specific law for proper regulation of space mining in India. 

Therefore the research suggests that a statutory space legislation is therefore essential to operationalise the Indian Space Policy, 2023 and to address the regulatory vacuum left by the non-enactment of the Space Activities Bill, 2017.

Such legislation must explicitly regulate space resource extraction and in-situ resource utilisation, while remaining consistent with the non-appropriation principle under the Outer Space Treaty. Granting statutory authority to IN-SPACe, coupled with a clear licensing regime, would reduce institutional ambiguity and enhance regulatory certainty.

Further, the law should clearly define liability, insurance obligations, and risk-sharing mechanisms to balance state responsibility with private sector participation. Alignment with evolving international norms, including India’s participation in the Artemis Accords, would enable India to engage effectively in the emerging governance of space resources.

BIBLIOGRAPHY

Treaties and International Instruments

Artemis Accords (adopted 13 October 2020)

Convention on International Liability for Damage Caused by Space Objects (opened for signature 29 March 1972, entered into force 1 September 1972)

Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies (opened for signature 27 January 1967, entered into force 10 October 1967)

Legislation

Commercial Space Launch Competitiveness Act 2015 (US)

Federal Law No 12 of 2019 on the Regulation of the Space Sector (UAE)

Law of 20 July 2017 on the Exploration and Use of Space Resources (Luxembourg)

Promotion of Business Activities Related to the Exploration and Development of Space Resources Act 2021 (Japan)

Government Policies and Draft Bills

Department of Space, Draft Space Activities Bill, 2017 (Government of India)

Indian Space Research Organisation, Indian Space Policy 2023 (Government of India)

Journal Articles

Jakhu R, Pelton J and Nyampong Y, Space Mining and Its Regulation (Springer 2017)

Masson-Zwaan T, ‘Regulation of Space Resource Utilisation’ (2018) 46 Journal of Space Law 123

Tronchetti F, ‘The Non-Appropriation Principle and Space Resource Exploitation’ (2015) 40 Air and Space Law 489

Reports and Official Websites

Indian National Space Promotion and Authorisation Centre (IN-SPACe), ‘About IN-SPACe’ https://www.inspace.gov.in accessed 25 December 2025

United Nations Office for Outer Space Affairs, ‘Space Law Treaties and Principles’ https://www.unoosa.org accessed 25 December 2025

United States Federal Aviation Administration, ‘Commercial Space Transportation’ https://www.faa.gov/space accessed 25 December 2025

UAE Space Agency, ‘Space Law and Regulations’ https://space.gov.ae accessed 25 December 2025