Space Federalism: India’s Governance Frontier in the Orbital Age

India’s journey into space, marked by remarkable achievements, has historically been a predominantly central government endeavor, spearheaded by ISRO. However, with the burgeoning private sector participation and the increasing economic potential of space, the traditional unitary approach to space governance is undergoing a significant transformation. This shift necessitates a deeper examination of “Space Federalism” – the application of federal principles to the regulation and development of space activities. Our Constitution, designed for terrestrial governance, faces novel challenges in allocating legislative, executive, and financial powers for the orbital domain. The concept of Cooperative Federalism becomes paramount as states begin to envision their roles in the space economy, from ground infrastructure to R&D.

The burgeoning space economy necessitates a re-evaluation of traditional federal principles to ensure equitable growth and regulatory clarity.

The primary challenge lies in the constitutional ambiguity surrounding space activities. The Seventh Schedule does not explicitly list ‘space’ as a subject, leading to its implied inclusion under the Union List’s residuary powers (Article 248) or entries like ‘defence’ or ‘atomic energy’. This centralisation, while effective for strategic missions, limits state participation and potential contributions. Issues include the lack of clear jurisdictional demarcation for activities like spaceports, satellite ground stations, or space-based data utilization that may have local impacts. Resource allocation, particularly financial, remains heavily skewed towards the Centre, hindering states from developing their own space-related capabilities or leveraging local advantages. Furthermore, the complexities of managing orbital debris, spectrum allocation, and international space treaties require a unified national stance, which can sometimes clash with regional interests or developmental priorities.

The centralisation of space governance can lead to a democratic deficit, as state governments and local bodies, representing diverse regional interests, have limited say in policy formulation or project implementation. This can exacerbate regional disparities, with states lacking direct access to the economic and technological benefits of the space sector. For instance, the location of critical space infrastructure like launch pads or ground stations, while strategic, can have significant environmental and socio-economic implications for the host state, necessitating robust inter-governmental coordination. Effective governance in the space sector demands transparent decision-making, accountability mechanisms, and inclusive stakeholder engagement, drawing parallels with the challenges faced in reimagining India’s cities for inclusive urban futures. Without a federal approach, the vast potential of space applications for agriculture, disaster management, and urban planning may not be optimally realised across all states.

Recognizing the need for reform, the Indian government has initiated several measures. The Indian Space Policy 2023 is a landmark step, aiming to enhance private sector participation and delineate roles for ISRO, NewSpace India Limited (NSIL), and the Indian National Space Promotion and Authorisation Centre (IN-SPACe). While primarily focusing on central reforms, it implicitly acknowledges the need for a broader ecosystem, which will eventually involve states. IN-SPACe, as an autonomous body, is designed to act as a single-window agency for private entities, reducing bureaucratic hurdles. NSIL is tasked with commercialising ISRO technologies and promoting industry. These initiatives, however, primarily address the “how” of space commercialization, rather than the “who” in terms of federal power distribution, leaving room for states to articulate their roles.

To foster true space federalism, India needs a comprehensive legislative framework that explicitly defines the roles and responsibilities of both the Centre and states in the space sector. This could involve creating a ‘Space’ entry in the Concurrent List or establishing a dedicated Space Act that outlines the principles of shared governance. Institutional mechanisms, such as an Inter-State Council for Space, could provide a platform for dialogue and dispute resolution, similar to how federal principles were re-evaluated post- 1971 Census. Capacity building initiatives for state governments, particularly in regulatory oversight, data utilization, and promoting local space industries, are crucial. Fiscal federalism in space, through mechanisms for revenue sharing from commercial space activities or dedicated grants for state-led space projects, would incentivise participation and ensure equitable development.

The bedrock of India’s federal structure lies in Part XI of the Constitution, particularly Articles 245 to 255, which deal with legislative relations between the Union and the States. Article 246, read with the Seventh Schedule, delineates the legislative powers through the Union List, State List, and Concurrent List. Since ‘space’ is not explicitly mentioned, the Union relies on its residuary powers under Article 248 and Entry 97 of the Union List (Any other matter not enumerated in List II or List III). The doctrine of Pith and Substance helps determine the true nature of legislation, while Harmonious Construction guides the interpretation of overlapping entries. Article 282, which allows for grants for public purposes, could be leveraged for central funding of state space initiatives. The Inter-State Council (Article 263) provides a framework for discussing inter-governmental coordination on complex subjects like space.

While there are no direct judicial pronouncements on ‘Space Federalism’ in India, landmark cases on federalism provide guiding principles. In S.R. Bommai v. Union of India (1994), the Supreme Court affirmed federalism as a basic feature of the Constitution, emphasizing cooperative federalism. Cases concerning Centre-state financial relations, such as those related to Article 282, highlight the delicate balance in resource allocation. The principles laid down by the Sarkaria Commission and Punchhi Commission on Centre-State relations, though recommendations, offer valuable insights into ensuring greater autonomy and financial devolution to states, which are directly applicable to the emerging space sector. These pronouncements underscore the need for consultation and collaboration, rather than unilateral action, in matters affecting both the Union and states.

The recent successes of Chandrayaan-3 and Aditya-L1 missions have not only boosted national pride but also highlighted India’s growing prowess in space technology. This has spurred greater private sector interest, with numerous start-ups emerging in areas like satellite manufacturing, launch services, and data analytics. The government’s push for ‘Atmanirbhar Bharat’ extends to space, with initiatives like the Space Policy 2023 aiming to create a vibrant domestic space economy. Globally, countries are grappling with similar federal challenges in space, making international best practices relevant. The increasing focus on leveraging space technology for sustainable development goals, such as climate monitoring and disaster management, inherently involves state-level implementation, demanding a more integrated approach to governance, much like the cross-cutting nature of harnessing quantum power.

1. Critically analyse the concept of ‘Space Federalism’ in the context of India’s constitutional framework and evolving space policy.
2. Discuss the structural and constitutional challenges India faces in fostering greater state participation in the burgeoning space economy.
3. Examine the implications of a centralized approach to space governance on democratic principles and equitable regional development in India.
4. What innovative policy and institutional reforms are necessary to promote cooperative federalism in India’s space sector?
5. Evaluate the role of the Indian Space Policy 2023 and other initiatives in addressing the federal dimensions of space governance.

This editorial maps directly to GS-II: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure. Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Separation of powers between various organs dispute redressal mechanisms and institutions. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

5 Key Ideas
1. Vertical Federalism: Power distribution between Centre and States.
2. Horizontal Federalism: Cooperation among states.
3. Space Commons: Space as a shared resource for humanity.
4. Dual-Use Technology: Space tech with both civilian and military applications.
5. Space Economy: Commercial activities related to space.

5 Key Constitutional Terms
1. Residuary Powers: Union’s exclusive power over unlisted subjects (Art. 248).
2. Concurrent List: Subjects where both Centre and States can legislate.
3. Article 246: Delineates legislative powers via Seventh Schedule.
4. Article 282: Provisions for grants for public purposes.
5. Inter-State Council: Body for coordination between Centre and States (Art. 263).

5 Key Issues
1. Jurisdictional Ambiguity for space activities.
2. Equitable Resource Distribution for state space initiatives.
3. Regulatory Overlap between central agencies and potential state bodies.
4. Capacity Building for states in space sector governance.
5. International Treaty Obligations vs. domestic federal structure.

5 Key Examples
1. ISRO: Primary central agency for space research.
2. IN-SPACe: Single-window agency for private space sector.
3. NSIL: Commercial arm of ISRO.
4. Space Policy 2023: India’s framework for space sector.
5. Chandrayaan-3: Recent successful lunar mission.

5 Key Facts
1. India’s space economy projected to reach $13 billion by 2025 (EY-ISpA report).
2. Over 150 private space start-ups registered in India.
3. Indian Space Policy 2023 was approved on April 6, 2023.
4. Global space economy valued at over $460 billion (Space Foundation, 2023).
5. India is among the few nations with independent launch capability.