Senior Consultant Paris
"For private investors, the key questions are how these regimes will affect market access, operational authorisation and financial exposure."
Three new countries – and by no means, the least significant – are in the process of enacting space laws: Switzerland, Canada and India. For private investors, the key questions are how these regimes will affect market access, operational authorisation and financial exposure.
Switzerland is nearly at the end of its process. On 24 September 2026, the National Council passed the Federal Act on Space Operations (“LOS”) and the country is awaiting its adoption by the Council of States; even if the future law and its implementing ordinance are not expected until early 2028.
Canada is in the middle of its adoption process. As of November 2026, the text of Bill C-28, the Canadian Space Launch Act, is undergoing its second reading in the House of Commons before being sent to the Senate.
India is still in the very early stages, as a draft bill has been prepared and its contents have been leaked, but as of now, no draft bill has been submitted to its Parliament. The ill-fated history of a bill drafted in 2017 casts a shadow over the current one, as that 2017 bill – which had attracted the attention of the international community – was never introduced in the Indian Parliament. The current bill, the Space Activities Bill, which resulted from a major overhaul of the 2017 draft, was supposed to have undergone public consultation in the spring of 2026. That deadline was pushed back to the following summer. Although its adoption was recommended by the relevant Permanent Committee of Parliament, the Indian space sector remains governed by the principles set forth in a policy document, the Indian Space Policy of 2023, and the authorization standards (‘Norms, Guidelines, and Procedures (NGP-2024)’ established by the Indian National Space Promotion and Authorization Center (“IN-SPACe”) in 2024; the difficulty with which stems from the fact that they were not established by law. The bill currently being drafted is specifically intended to correct these two legal anomalies.
This is even more important given that a reform of India’s foreign investment regime, adopted on 21 February 2024 (Press Note No. 1, Series 2024, March 4, 2024) partially liberalised the space sector. The reform allows foreign investors, without authorisation, to hold up to 74% of the equity in an Indian company manufacturing or operating satellites; 49% in the launch sector and associated systems; and 100% in the manufacture of components and subsystems (particularly ground segments). The authorisation in question pertains to foreign investments within India. The companies involved must obtain the necessary authorisation from IN-SPACe.
The table below compares the principal features of these developing regimes, with a focus on authorisation, liability and the implications for private investors and operators.
| Switzerland LOS | Canada C-28 Draft | India Space Activities Bill |
|
|---|---|---|---|
| Nature of the legislation | Standalone space law, intentionally brief (57 articles). | A framework law amending the Aeronautics Act. | Space law. |
| Scope | Operation and control of satellites from Switzerland (including Swiss aircraft and vessels). | Launch and reentry only. | All space activities. |
| Competent authority (level) | Swiss Confederation. | Ministry of Transportation. | IN-SPACe. |
| Authorisation regime (scope) | All space operations. | Permits and certification of launch sites. | Centralised authorisation based on the existing regime, for which the proposed legislation is intended to provide a statutory basis. |
| Establishment of a national registry | Not addressed. | Not addressed. | Planned for 2027. |
| Liability/insurance | The operator is liable in accordance with the principles of Swiss private law. The Confederation has a right of recourse when it has compensated a third party. The insurance requirement is not mandatory. | A separate regime applies to authorised launchers and re-entry vehicles, distinct from that applicable to aircraft operators. The space operations in question are not subject to an insurance requirement. The Minister of Transportation may exempt operators from financial liability regulations when justified by the public interest. The Minister may compensate operators for liability to third parties. | Application of the principles set forth in Chapter X of the NGP 2024. Requirement for any non-governmental entity to obtain third-party liability insurance (conditions set by IN-SPACe). State liability covered by an insurance requirement imposed on the launch operator if IN-SPACe deems necessary (the Indian government is then listed as the insured). Transfer of liability from the launch provider to the customer upon separation (launch contracts). |
| Points to note | Issues regarding the sustainability of space activities and space debris are addressed in the implementing ordinance. The territorial scope of application is very broad. The law covers operations conducted on Swiss territory, in particular the operation and control of space objects from Switzerland, as well as aboard ships, floating platforms, or aircraft registered in Switzerland. The text is aligned with the law on military equipment, asset controls, and embargoes, and refers to an ordinance for applicable international standards and technical details, particularly regarding sustainability. | The text currently under adoption amends the Aeronautics Act, so that the term ‘aircraft’ includes launch vehicles and re-entry vehicles, and the term ‘airport’ excludes certified launch sites. It is also a framework law that expands the powers of the Governor in Council and the Minister of Transportation regarding licensing, site certification, liability, financial guarantees, compensation, emergency shutdowns and zoning. | The current framework is characterised by significant legal uncertainty, stemming from the fact that it relies on political provisions and authorisation standards lacking a legislative basis. Notably, private ownership is now permitted (marking a departure from systematic state appropriation). |
| Key considerations for foreign private investors | No insurance requirement; a relatively predictable liability regime. However, there is less protection: no public safety net, an insurance market that is too narrow, extraterritorial exposure: a Swiss company operating under a foreign license is exposed to claims by the Swiss Confederation and therefore faces a risk of double exposure. | Existence of a public safety net (the minister may compensate the operator beyond the limits of private insurance policies, which can be interpreted as an incentive for investment). Flexible guarantees as (alternatives to insurance). However, everything is discretionary; there is a political risk of shifting compensation to the taxpayer and the government may pursue recourse without a compensation cap. | Trust is placed in operators by allowing them to define the terms of liability for each party (operator, customer) through contractual agreements. However, mandatory insurance with no cap, potentially unlimited liability (in the absence of explicit legislative and regulatory provisions), special treatment for foreign customers regarding the transfer of liability and the Indian government as a co-insured party at the expense of the space operator. Contractual obligations should not be assumed to determine exposure to governments or third parties. |
What does this mean for investors?
These developments should be assessed not simply by whether they facilitate market entry but by how clearly they allocate risk. Investors should distinguish proposed legislation from current requirements, assess the interaction between operational authorisations and foreign investment approvals, and test whether insurance and contractual protections address the liabilities retained. Any discretionary government support should be evaluated on its terms rather than assumed to be available. With all three frameworks still developing, the legislative position and implementing requirements should be checked before an investment decision is made.
