Rules and policy
IN-SPACe authorisation: meaning, how it works in India and examples
IN-SPACe authorisation is the formal approval that the Indian National Space Promotion and Authorisation Centre gives a private company before it launches rockets, operates satellites or sells certain space services from India. It sits at the centre of the Indian Space Policy 2023, which opened the sector to private firms.
By Abha Lohia · Editor · Updated
In one minute
- IN-SPACe authorisation is the formal approval that the Indian National Space Promotion and Authorisation Centre gives a private company before it launches rockets, operates satellites or sells certain space services from India.
- Register on the IN-SPACe digital portal as an Indian company.
- IN-SPACe is the Indian National Space Promotion and Authorisation Centre, a body under the Department of Space.
What is IN-SPACe and why does it exist?
IN-SPACe is the Indian National Space Promotion and Authorisation Centre. It is a body under the Department of Space that acts as a single window between private companies and the government's space system. Before it was set up, almost every rocket and satellite in India was built and run by ISRO, the national space agency, or by public sector firms working for it.
The Indian Space Policy 2023 split the roles. ISRO focuses on research, new technology and missions for the nation. IN-SPACe promotes private activity, handles approvals and shares ISRO's facilities with private players. NewSpace India Limited sells space products and services on the public side. For a startup, IN-SPACe is the door to knock on.
What does the Indian Space Policy 2023 say?
The policy, released in 2023, allows private companies to carry out the full range of space activities: building satellites, launching them, operating them and selling data and services. Non-government entities are allowed to own space assets and offer services, in line with the rules IN-SPACe sets.
The policy also says private firms can use ISRO's test facilities and technical help on a paid basis. It is a policy, not a statute, so the working detail sits in the guidelines that IN-SPACe issued later. As of November 2026, a separate space law has been discussed in the press, but a policy and guidelines framework is what governs authorisation.
What are the Norms, Guidelines and Procedures?
IN-SPACe published its Norms, Guidelines and Procedures, often shortened to NGP, in May 2024. This document lists the space activities that need authorisation, the documents an applicant must submit, the technical checks and the grounds on which approval can be refused or withdrawn.
According to law-firm summaries, only Indian entities can apply. A foreign company that wants to operate in India does so through an Indian subsidiary or a joint venture with a local company. The guidelines cover activities such as launch vehicles, satellites and their operation, ground stations and the distribution of satellite imagery. Making satellite parts is not on the list of activities that need prior authorisation, as summarised by the same law firms.
How does a company get authorised, step by step?
The exact forms and fees are on the IN-SPACe portal and can change, so the outline below is the general shape rather than a checklist. The process is built around the idea that the applicant must show it is technically capable, financially sound and safe for national security and the public.
- Register on the IN-SPACe digital portal as an Indian company.
- Pick the activity, for example a launch, a satellite mission or a ground station, and submit technical and financial details.
- IN-SPACe reviews the proposal, may ask for changes, and consults other government departments where security or foreign policy is involved.
- If the proposal clears, IN-SPACe issues an authorisation that sets conditions, such as safety, debris and reporting rules.
- The company must keep to those conditions during the mission. Breaking them can lead to the authorisation being withdrawn.
What is the FDI limit in the space sector?
In February 2024 the Union Cabinet changed the foreign direct investment (FDI) rules for space. According to law-firm summaries of the amendment, foreign investment is allowed under the automatic route, meaning no prior government approval is needed, up to different ceilings depending on the activity.
The numbers that matter, as of November 2026:
- Up to 74 percent automatic: satellites (manufacturing and operation), satellite data products, and ground and user segments.
- Up to 49 percent automatic: launch vehicles and related systems, and spaceports.
- Up to 100 percent automatic: manufacturing of components and subsystems for satellites and launch vehicles.
- Above these ceilings: government approval is needed.
- Always check the latest consolidated FDI policy, since sector caps can be revised.
Why does this matter to startups and investors?
For founders, authorisation turns a technology project into a business that can legally sell. A launch startup without an approval cannot fly. A satellite imaging company without clearance for its imagery distribution may find its product limited. Venture investors read the approval status as a milestone, because it removes a legal risk that a pitch deck cannot.
The FDI opening matters for fundraising. A space startup with a foreign venture fund on its cap table must stay under the ceiling for its type of activity. A satellite operator can take more foreign money than a launch company, which affects how rounds are structured and who can lead them.
Which Indian startups are examples?
Skyroot Aerospace and Agnikul Cosmos are well-known private launch vehicle startups, and Pixxel is a well-known satellite imaging company building constellations that collect detailed images of the Earth. These names are examples of the private space sector that the policy was meant to support, not a statement about the status of any individual approval.
Readers should check the company's own announcements or IN-SPACe's public notices to know whether a particular mission has been authorised. Headlines sometimes say a company has been cleared when the news is about a test facility agreement, which is a different thing from an authorisation.
What are the numbers and limits to remember?
A few numbers and rules come up again and again in news about private space companies. The list below gathers them in one place, as of November 2026 and according to law-firm summaries, so that a reader can place a headline quickly.
The policy year is 2023, the guidelines came in 2024 and the FDI change was in February 2024. A story that quotes a different year is probably about something else, such as an older ISRO programme or a draft. Also remember that the ceilings are about foreign ownership of the company, not about how much money a fund can invest in total, so a foreign fund can still invest in a company, as long as the overall foreign share stays under the ceiling for that activity.
Another point is that an authorisation is tied to a mission or an activity. A company that is approved for one satellite does not automatically get approval for a larger constellation or a launch. Each new activity may need its own review, and conditions such as debris plans and reporting can apply for the life of the mission.
- Policy: Indian Space Policy 2023.
- Guidelines: Norms, Guidelines and Procedures, May 2024.
- FDI: 74 percent for satellites, 49 percent for launchers and spaceports, 100 percent for components, all on the automatic route.
- Who applies: Indian entities only.
- What is not covered: satellite component manufacturing needs no prior authorisation.
How is it different from an ISRO partnership?
A technical or facility agreement with ISRO or IN-SPACe lets a startup use test beds, labs or expert help. It does not by itself approve a launch or a service. Authorisation is the legal permission to carry out the activity. Many news stories mix the two, so a careful reader asks which document was signed.
A final reminder: this guide explains the framework in general terms and is not legal or investment advice. Rules and ceilings change, so check with a lawyer or the IN-SPACe portal before acting.
A worked example
Example with made-up numbers: a Bengaluru startup plans a small satellite constellation. It raises ₹200 crore, of which a foreign fund puts in ₹100 crore for 40 percent of the company. A satellite operator can take foreign money up to the 74 percent automatic ceiling, so the 40 percent stake is within the limit. If the same company switched to building rockets, the ceiling would be 49 percent automatic, and the founders would need to leave room for later rounds. In both cases it still needs an authorisation for its mission before it goes live.
Recent examples on StopDown
Questions people ask
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What is IN-SPACe?
IN-SPACe is the Indian National Space Promotion and Authorisation Centre, a body under the Department of Space. It promotes private space activity, approves the activities that need authorisation and links companies to ISRO's facilities.
How do private companies launch rockets in India?
A private company must be an Indian entity, apply to IN-SPACe under its Norms, Guidelines and Procedures and obtain authorisation for the launch. It can then use ISRO's facilities for testing and for launch support, where agreed, on a paid basis.
What is the FDI limit in the space sector?
As of November 2026, according to law-firm summaries of the February 2024 change, foreign investment is allowed automatically up to 74 percent for satellites, 49 percent for launch vehicles and spaceports, and 100 percent for components. Above those ceilings, government approval is needed.
Does a satellite parts maker need IN-SPACe authorisation?
According to law-firm summaries of the 2024 guidelines, manufacturing of satellite components does not need prior authorisation. Operating satellites, launching and distributing imagery do.
Can a foreign space company apply directly?
Only Indian entities can apply, so foreign firms usually set up an Indian subsidiary or a joint venture with a local company first.
Read next
This guide explains the rules in general and is not legal or tax advice.