The space sector reforms have turned India's space ecosystem from state-led to state-enabled. Discuss with reference to emerging niches such as in-orbit servicing.

Until the reforms of about 2020, ISRO designed, built and launched almost every Indian space asset, and private firms were mainly its vendors. The reforms set up IN-SPACe and NSIL and opened the sector to private players [1]. The state moved from sole operator to enabler, regulator and data provider. New niches like in-orbit servicing show both how far this shift has come and where it still falls short.

Shift from state-led to state-enabled

• New institutions: IN-SPACe authorises and promotes private activity. NSIL is the commercial arm of the Department of Space [1].
• Startup boom: India has nearly 450 space startups, up from a single-digit number [1].
• End-to-end private capability: Private firms now make payloads, batteries, satellites and propulsion, and run private launches [1].
• Economic scale: The space economy is about USD 9 bn and is projected to reach USD 40–45 bn in the coming decade [1].

Emerging niche: in-orbit servicing and debris removal

• Private infrastructure: Cosmoserve Space's Base 1 in Hyderabad houses rendezvous-and-capture labs, microgravity simulation platforms and mission control [1].
• Fast innovation: Mission EMBRACE tested soft robotic capture petals in orbit within a year of the company being formed [1].
• Dual-use market: The same capture technology serves both satellite life-extension and Active Debris Removal (ADR). This gives startups revenue before ADR itself becomes profitable.
• State as enabler:
• ISRO's Debris-Free Space Missions (DFSM) aims for debris-free missions by all Indian actors, government and private, by 2030 [2].
• ISSAR, compiled by IS4OM, provides the space situational awareness data that private operators depend on [3].

Gaps in the transition

• No space law yet: The Space Activities Bill remains at the pre-legislative consultation stage. India's duty under UN treaties is to be met through a domestic law that licenses private activity, and that law has not been passed [4].
• Liability gap: The draft third-party liability framework proposes insurance for launch operators [5]. A capture mission carries its greatest risk weeks after launch, so launch cover may not apply.
• Consent and dual use: Approaching another country's object raises questions of ownership. It can also raise concerns that the capture robot is a counter-space weapon.
• Scale: In 2024, 3,665 objects were added to orbit [3]. Capturing one object per mission cannot keep pace, so mitigation must stay the first priority.

The reforms have turned ISRO from sole producer into anchor, regulator and data provider, and startups now lead niches like in-orbit servicing. To complete the shift, India should pass a space law that licenses in-orbit operations, extend liability insurance beyond launch, and announce capture missions transparently. This would make India a responsible steward of the orbital commons, in line with its "Vishwa bandhu Bharat" outlook [1].