There is an appreciable body of research addressing the liability issues in space launch activities. Yet, the accommodation of these principles into the legal frameworks governing commercial space launch industry in developing states, like India, is not adequately addressed. Despite being a spacefaring state since 1963, India’s commercial launching industry is in its nascent stage primarily due to statutory restrictions. Although the Indian government has allowed private participation, the liability sharing framework under the proposed laws, as reflected from drafts, is not fit to accommodate non-governmental launchings. To mend this, the paper posits that India devise a liability risk sharing framework to ensure legal certainty with a balance between industrial goals and exchequer’s interests. As such, this paper considers, comparatively and analytically, a tailored regulatory environment for first, second, and third-party liabilities in India along with damage assessment standards and insurance requirements.