Abstract

Artificial intelligence (AI) plays a central role in satellite system operations and governance through its capabilities for autonomous orbit correction and collision avoidance and advanced remote sensing data analytics. The Indian Space Policy 2023 represents a vital juncture for India's space program because it enables commercialization and innovation while the country maintains its global space recognition through Chandrayaan and Gaganyaan missions alongside growing private sector participation. The legal framework of India which includes the Draft Space Activities Bill (2017) and the Remote Sensing Data Policy (2011, revised 2020) and satellite communication guidelines does not contain specific regulations for autonomous systems and AI governance. The paper analyzes India's developing space law structure through examination of the Outer Space Treaty (1967) and International Telecommunication Union regulations and the 1986 UN Remote Sensing Principles. The paper identifies four key emerging challenges which include orbital slot management and AI-driven satellite cybersecurity threats and autonomous decision-making liability under the 1972 Liability Convention and dual-use implications of AI technologies for defense applications. The United States and European Union provide important lessons for India through their current efforts to integrate AI into space traffic management and regulatory systems. The research indicates that India needs to advance from general policy statements by creating specific legal frameworks for AI. The forthcoming Space Activities Bill should include liability and insurance provisions while a separate authority should oversee AI-enabled satellite systems and public-private partnerships with startups should be encouraged. These reforms would establish India as a responsible and competitive leader in AI-powered space governance.

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