Indeed so - and I wonder if anyone would even bother to invoke the Liability Convention over filing a standard civil suit (if that's even possible, I'm not well-versed with international law or treaty concerns.)
The state issue seems like it's simple - company petitions host country, host country yells at launch country and claims damages on behalf of the original Petitioner.
That said, seems terrible as a citizen and taxpayer that the US or India or anyone else would have to pay, potentially, for a private company's misdeeds or negligence...would the US collect from Planet to pay ISRO, or can Planet just take any risks they like knowing that the taxpayer will cover the bill?
Haven't seen that enumerated, and I suppose it's completely different for ISRO with it being a state launch agency, versus someone like SpaceX.
Space is still pretty big, even in LEO, but things like nano-sats do concern me greatly compared to ISRO putting up an imaging sat.
Companies putting up entire constellations, even in extremely low decay orbits and layering them by altitude could be disastrous if any given altitudinal layer starts to prematurely decay or does so in an uncontrolled manner...two or three nanos could wipe out entire constellations. in a low-orbit Kessler reaction.
Definitely, we'll all need much better collaboration and oversight as to low-orbit, "temporary" satellites, if not requiring that the big birds are able to deorbit themselves rather than park in a graveyard orbit.
Am I optimistic this will happen, given respective funding by governments? Not very. Let's hope it doesn't bite us.