The 2020 space-sector reforms mark a shift from a state-led to a marketised model. Critically examine the institutional architecture created to support this transition.

The Union Cabinet's 24 June 2020 reforms opened the entire space value chain to Non-Government Entities (NGEs). ISRO went from being the sole operator to a facilitator [1]. The institutions built for this shift work well in practice, but the framework is still incomplete.

Architecture: three pillars

• ISRO: frontier R&D and national missions. Mature systems pass to industry under the Indian Space Policy 2023 [2].
• IN-SPACe: an autonomous single-window body under the Department of Space (DoS) that promotes, authorises and supervises NGEs [1].
• NSIL: the commercial arm. It handles technology transfer, pools demand and markets products [3].

Strengths

• Clear rules: IN-SPACe issued its Norms, Guidelines and Procedures (2024). FDI is allowed on the automatic route up to 74% for satellites, 49% for launch vehicles and 100% for components [1].
• Funding ladder: the ₹500 crore Technology Adoption Fund and the ₹1,000 crore VC Fund help firms grow from prototype to scale [1][4].
• Technology diffusion: NSIL has signed 118 ToT agreements covering 83 technologies [3]. PSLV-XL production has gone to the HAL–L&T consortium [1].
• Outcomes: space start-ups rose from 1 (2014) to about 440 [1]. Skyroot's Vikram-1, India's first private orbital launch, flew under IN-SPACe authorisation [5].

Weaknesses

• Conflict of interest: IN-SPACe, ISRO and NSIL all sit under DoS. ISRO gave Vikram-1's launch clearances at its own Sriharikota site [5]. One department is regulator, competitor and seller at once.
• No statute: authorisation rests on a Cabinet decision, a policy and the NGP, not an Act of Parliament [1][2]. There is no appeal route set by law, so investors have less certainty.
• Accountability gap: the CAG audit of the Antrix–Devas deal showed the risk of a commercial arm inside DoS with no outside checks [6]. The pricing of ToT deals is still not disclosed [3].
• Thin scale: the VC Fund aims to back only about 40 start-ups [4]. The space economy is about US$9 bn, against a US$44 bn target for 2033 [1].

The new institutions have brought rules, capital and a pipeline of firms, but they still rest on policy alone and are centred on DoS. A Space Activities Act would complete the move to a market model. It should make IN-SPACe independent by law, set time limits for decisions and create an appeal forum. NSIL should publish its ToT terms, and progress should be measured by revenue, not start-up counts. Such a law would also give India a firm base for its duty under Article VI of the Outer Space Treaty to authorise and supervise private space activity.