Key Provisions of the 2025 re-draft^[10][11]

It reflects a policy shift from a "supply-based" to a "demand-based" model, incorporating feedback from over 400 private space companies and startups that have entered the sector since 2019.^[9]

• Statutory Empowerment of IN-SPACe: The bill proposes to grant statutory authority to IN-SPACe. Currently, the agency operates as an autonomous body under the Department of Space but lacks the formal legal power required to act as a definitive "single window" regulator for private entities.^[12]
• Insurance and Liability: Addressing a core industry demand, the bill includes provisions for accessible and affordable insurance for high-value space assets, which was previously a cost-prohibitive barrier for startups.
• Intellectual Property (IP) Reform: The draft amends a controversial 2017 clause that claimed all IP generated in outer space as government property. The new framework adopts an "industry-friendly" approach, likely allowing for case-by-case IP examinations or granting the government access without requiring full ownership.
• Offences and Penalties: The bill maintains a punitive framework for unauthorised space activities, including a potential three-year imprisonment and fines exceeding ₹1 crore for unlicensed operations or the pollution of outer space.

Decentralised Manufacturing Hubs

Under the updated framework, IN-SPACe is facilitating the establishment of specialised manufacturing hubs managed by state governments. As of 2025, three states have released specific space policies to host these hubs:^[13]

• Tamil Nadu: Focuses on the production of launch vehicles.^[14][15]
• Gujarat: Specialises in satellites and payloads.^[16][17][18]
• Karnataka: Serves as a general space hub, leveraging the existing industrial ecosystem in Bengaluru.^[19][20]

Discussions are currently underway with Maharashtra and other states to establish additional manufacturing parks, with a target of 4–5 initial hubs nationwide.^[21]