The Indian space sector is experiencing a commercialization and private participation shift from a government-monopolized space system, which requires legal innovations to address emerging challenges in in-orbit services (IOS) and space debris removal (SDR). The current legal framework of India based on policies and executive orders does not have sufficient provisions for licensing and liability and regulatory oversight in these modern domains despite its technological advancements. The paper identifies three main gaps in India's space law which include the nonexistence of statutory licensing for IOS and SDR operations, unclear liability rules and insufficient systems for protecting intellectual property and resolving disputes. The paper uses international best practices and guidelines to develop essential components for future Indian space legislation which includes activity-specific licensing procedures, mandatory insurance requirements, an independent regulatory authority and global space sustainability standards. The analysis shows that legal innovation must accompany technological progress to maintain India's leadership position in the complex and competitive outer space environment. Through proactive space law-making India can promote responsible commercial expansion while building international partnerships to establish its position in the emerging space governance framework.
