Balancing National Security and Commercial Flexibility: A Study of Non-Transferability of Space Authorisations in India

India’s evolving space regulatory framework reflects a careful attempt to balance national security with the commercial needs of a rapidly expanding private space sector. The Indian Space Policy 2023 and the IN-SPACe Norms, Guidelines and Procedures 2024 establish an authorisation regime in which approvals are tied to the identity, control, and capability of the applicant, making such authorisations largely non-transferable. This approach is grounded in the State’s duty to ensure continuous supervision of space activities, protect sensitive data and infrastructure, and prevent foreign or hostile influence over strategic assets. At the same time, the rigidity of non-transferability raises significant commercial concerns, particularly in mergers, acquisitions, restructuring, and foreign investment transactions. Space enterprises often depend on predictable regulatory approvals to preserve value and attract capital, and overly strict transfer restrictions may deter investment or complicate deal-making. This paper examines whether India’s insistence on non-transferability is proportionate to the security risks involved, or whether a more calibrated and approval-based framework could better serve both public and private interests. It argues that while national security justifies heightened scrutiny over ownership and control changes, a blanket or overly rigid approach may hinder the growth of India’s space economy. The study concludes that a differentiated regulatory model, with transparent criteria and conditional approvals, would better reconcile sovereignty concerns with commercial flexibility in the space sector.