The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Transition Facilitation (Quality Control) Order, 2026 to ease industry compliance while maintaining product quality and strengthening domestic supply chains.
What are Quality Control Orders (QCOs)?
Quality Control Orders (QCOs) are mandatory regulations issued by the Central Government under the Bureau of Indian Standards (BIS) Act, 2016.
They require specified products to conform to Indian Standards (IS) and obtain BIS certification before manufacture, import, sale, or distribution.
Objectives:
Ensure consumer safety and product quality.
Prevent substandard imports.
Promote standardisation and manufacturing excellence.
Improve global competitiveness of Indian products.
What is the Transition Facilitation (Quality Control) Order, 2026?
The Order introduces a risk-based alternative compliance mechanism to facilitate a smooth transition to QCO compliance without compromising quality standards.
Key Features
Allows manufacturers to procure inputs from suppliers licensed under:
Scheme II of the BIS (Conformity Assessment) Regulations, 2018 (Product Certification Scheme),
instead of only relying on Scheme I (ISI Mark Scheme).
Permissions will be granted based on:
Technical capability.
Compliance history.
Technology adoption and innovation.
Research and design capabilities.
Contribution to domestic supply chains.
Manufacturers with three consecutive years of default-free QCO compliance are also eligible for the benefits.
Maintains consumer protection while reducing compliance bottlenecks.
BIS Certification Schemes
Scheme I (ISI Mark Scheme): Product testing and factory inspection. Mandatory use of the ISI Mark. Applicable to products covered under QCOs.
Scheme II: Simplified product certification framework. Intended for specific categories where alternative conformity assessment is permitted. Facilitates flexible sourcing while ensuring quality.
Significance
Strengthens domestic value chains.
Encourages technology upgradation and innovation.
Reduces regulatory burden on industry.
Enhances Ease of Doing Business.
Improves integration with global supply chains.
Ensures continued consumer confidence in product quality.
Prelims Pointers
DPIIT: Department under the Ministry of Commerce and Industry responsible for industrial policy, startup promotion, and quality ecosystem.
Bureau of Indian Standards (BIS):
National Standards Body of India.
Established under the BIS Act, 2016.
Functions under the Ministry of Consumer Affairs, Food and Public Distribution.
Formulates Indian Standards and operates certification schemes, including the ISI Mark.
The Steel Authority of India Limited (SAIL) supplied 5,700 tonnes of indigenous defence grade steel for three Indian Navy ships, INS Dunagiri, INS Agray, and INS Sanshodhak, commissioned on 21 June 2026. The move strengthens India’s defence indigenisation under Atmanirbhar Bharat and Make in India.
Key Highlights
SAIL supplied 100% of the special steel requirement (5,700 tonnes) for INS Dunagiri (Stealth Frigate), INS Agray (ASW Shallow Water Craft), and INS Sanshodhak (Survey Vessel)
Steel supplied DMR 249A grade hot rolled sheets and plates (Defence grade steel).
Manufactured at Bokaro Steel Plant, Bhilai Steel Plant, and Rourkela Steel Plant
Production of DMR grade plates has been expanded, especially at the Special Plate Plant, Rourkela, to meet defence needs.
What is DMR 249A Steel?
DMR (Defence Metallurgical Research) 249A is a high strength, low alloy steel developed for naval warships.
Features: High tensile strength, Excellent weldability, High toughness, Corrosion resistance in marine environments, and Better survivability under combat conditions.
Other Major Naval Platforms Using SAIL Steel: INS Vikrant, INS Nilgiri, INS Himgiri, INS Udaygiri, INS Ajay, INS Nistar, and INS Anjadeep
The Ministry of Statistics and Programme Implementation (MoSPI) will launch the Index of Services Production (ISP) in July 2026 as India’s first monthly indicator to measure short term growth in the services sector.
What is ISP?
Index of Services Production (ISP) is a monthly high frequency indicator that measures changes in the real output (volume) of the formal services sector relative to a base year.
It is the services sector counterpart of the Index of Industrial Production (IIP).
Key Highlights
Nodal Ministry: Ministry of Statistics and Programme Implementation (MoSPI).
Base Year:2024-25.
First Trial Release:14 July 2026 (for 2025-26 and April 2026).
Release Frequency: Monthly, with a 60 day time lag.
Compiled using a fixed weight Laspeyres Volume Index.
Weights are based on Gross Value Added (GVA) of service sectors.
Objectives
Complement the Index of Industrial Production (IIP).
Provide high frequency data on the services sector.
Improve economic forecasting and business cycle analysis.
Strengthen evidence based policymaking.
Coverage
Included Sectors: Wholesale and retail trade, Transport, Banking and insurance, Telecommunications, Hotels and restaurants, Real estate, Professional, scientific and technical services, Arts, entertainment and recreation
To be Included Later: Health services and Education services (after availability of ASISSE data).
Data Sources
Administrative data: Air Transport, Railways, Banking and Insurance.
GST (GSTR-1 outward supplies): Most service industries.
Annual Survey of Incorporated Services Sector Enterprises (ASISSE): Health and Education.
Why is ISP Important?
Services contribute over 50% of India’s Gross Value Added (GVA) since 2013-14.
Provides timely tracking of service sector performance.
Enables faster policy response and economic monitoring.
Aligns India with international statistical practices.
Limitations
Covers only the formal services sector.
Excludes: Public administration and defence, Government health and education, Social work without accommodation, Household services, Activities of extraterritorial organisations, Gambling and betting, Other predominantly non market and informal services.
What is the proposed compilation formula?
ISP is proposed to be compiled using a fixed-weight Laspeyres Volume Index
Measures changes in output using fixed base year weights.
Widely used for indices such as IIP due to ease of comparison over time.
[2020] Consider the following statements: 1.The weightage of food in the Consumer Price Index (CPI) is higher than that in the Wholesale Price Index (WPI). 2.The WPI does not capture changes in the prices of services, which the CPI does. 3.The Reserve Bank of India uses WPI as its key measure of inflation to decide changes in policy rates. Which of the statements given above is/are correct?
PYQ Relevance[UPSC 2025] “India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission” Linkage: The PYQ is directly linked to the India Semiconductor Mission as a key initiative for building integrated manufacturing ecosystems (similar to TSMC) to achieve global industrial leadership
Mentor Comment
This article highlights the shift from “innovation-led growth” to “innovation-led global leadership.” For UPSC, do not restrict the discussion to R&D or startups. Link it with Atmanirbhar Bharat, Make in India, Startup India, India Semiconductor Mission, National Quantum Mission, IndiaAI Mission, Digital Public Infrastructure (UPI, Aadhaar, ONDC), Ease of Doing Business, and Industrial Policy.
Why in the News?
India is launching major technology missions in semiconductors, artificial intelligence, quantum computing, and space. India’s prior experience with early-mover technologies — semiconductors in the 1970s, indigenous computing in the 1980s, and the Simputer in 1998 — shows a consistent pattern of abandoning innovations before they reach global commercial scale.
Why has early technological leadership repeatedly failed to produce globally dominant Indian industries?
SCL and the semiconductor gap: India established Semiconductor Complex Limited (SCL) in the 1970s, but limited capital, small manufacturing scale, inconsistent policies, and a public sector focus prevented the creation of a competitive semiconductor ecosystem.
ECIL and the strategic-commercial divide: Established in 1967, ECIL developed indigenous computers and control systems under technology embargoes. However, its emphasis on strategic self reliance rather than market competition limited industrial expansion.
Simputer and ecosystem constraints: The Simputer (1998) anticipated many smartphone features, but inadequate venture capital, weak component supply chains, limited software platforms, and a small consumer market prevented global scaling.
Structural pattern: The recurring challenge was not a lack of innovation but weak commercialisation, insufficient capital mobilisation, and underdeveloped innovation ecosystems.
Apple as a counterfactual: Apple converted a similar computing vision into a global technology leader through integrated hardware, software, and supply chain capabilities, highlighting the scaling infrastructure India lacked.
Where has India demonstrated successful technology scaling, and what conditions enabled it?
Pharmaceuticals: India emerged as the “pharmacy of the world” and a leading vaccine producer through process innovation, cost efficiency, and export orientation.
Supercomputing (PARAM): The PARAM programme showed that sustained public investment with clear performance goals can build globally recognised indigenous capabilities.
Aadhaar and UPI: Built for nationwide scale, these digital public infrastructures transformed identity and payments, promoted financial inclusion, and became global models.
Scaling mechanism: Success came when technologies were designed for mass adoption rather than limited institutional use, creating ecosystems that generated industries and global impact.
Frugal innovation advantage: Missions like Chandrayaan and Mangalyaan proved that cost effective engineering can deliver world class outcomes, offering a strong model for future AI, semiconductor, and quantum technologies.
What do international examples reveal about the institutional conditions required to convert technological invention into dominant industries?
Taiwan (TSMC): Taiwan created a dedicated semiconductor foundry model backed by sustained state industrial policy, long-term capital, and export-orientation from the outset. TSMC now holds over 50% of the global foundry market — built on the same window India identified in the 1970s.
South Korea (Samsung): South Korea used state-directed credit, mandatory technology transfer conditions in foreign investment, and chaebol-scale domestic investment to build Samsung’s semiconductor and electronics empire. Strategic intent was matched with commercial ambition.
United States (AI and space commercialisation): The US transitioned defence and research investments into commercial platforms through procurement policy, deep venture capital markets, and university-industry linkages. NASA’s Commercial Crew Programme is an example of public mission enabling private scaling.
The common design feature: In each case, the state defined a commercial outcome — not only a technical capability — as the measure of success. Public funding was structured to de-risk private investment rather than substitute for it.
Limitation of the comparison: These examples developed within large domestic or allied-market demand bases. India’s scaling challenge is to build global demand for Indian-origin platforms, which requires a different export and partnership strategy.
What institutional and policy conditions must India establish for the current technology missions to produce globally competitive enterprises rather than repeating the earlier pattern?
Redefine the success metric: Public technology missions must measure success by commercial market share and global deployment, not by indigenous capability certificates or pilot completions.
Capital architecture: Venture capital, patient institutional capital, and public de-risking mechanisms must operate together. Scientific excellence funded without a commercialisation pathway reproduces institutional silos.
Ecosystem design from day one: Supply chains, software platforms, developer communities, and consumer or enterprise markets must be designed into missions at inception, not added after technical milestones are achieved.
Mandate commercial accountability in public institutions: Institutions such as C-DAC, ISRO’s commercial arm, and any new semiconductor entity must carry explicit commercial performance obligations alongside strategic mandates.
Quantum and healthcare applications: For quantum computing, the competitive advantage lies in reducing infrastructure costs and developing practical applications in drug discovery, materials science, and climate modelling domains, where India has existing scientific depth.
Conclusion
India’s technology history does not reveal a failure of scientific capability. It reveals a consistent failure to build the commercial ecosystems, capital structures, and institutional mandates required to scale invention into globally competitive industries. The countries that will lead the next technological era may not be those that invent first. They will be those that scale fastest. India’s current missions in AI, semiconductors, quantum computing, and space represent a second opportunity to claim the leadership positions it identified and then vacated in earlier technology cycles. Seizing that opportunity requires replacing the measure of self-reliance — from technical capability achieved to global market position built.
NITI Aayog released the 8th edition of “Trade Watch Quarterly” (Jan-Mar 2026), highlighting India’s trade performance and focusing on the pharmaceutical sector.
India’s Trade Performance
Total merchandise and services trade:$1.84 trillion in FY 2025-26 (↑5.4% YoY).
Exports: Grew by 4.2%.
Imports: Grew by 6.5%.
Services exports: Increased by 9.0%, maintaining a strong services surplus.
India remained the 8th largest services exporter in 2025.
Services exports recorded a CAGR of 10.3% (2015-2025), higher than the global average.
Pharmaceutical Sector
Global pharmaceutical and API market estimated at $1.3 trillion (2025).
India’s pharmaceutical and API exports reached $35.8 billion.
India is a leading supplier of Generic medicines, Vaccines, and Essential therapeutics
Challenges
Export basket remains concentrated in generic formulations and retail medicaments.
Limited presence in biologics, biosimilars, immunologicals, and advanced therapeutics.
Continued dependence on imported Active Pharmaceutical Ingredients (APIs) and intermediates, especially from China.
Leading Pharmaceutical States
Telangana, Gujarat, and Maharashtra
These states lead in production, exports, and integration into global pharmaceutical value chains.
Way Forward
Expand into high-value pharmaceutical segments.
Strengthen domestic API manufacturing.
Increase investments in R&D, technology, and skill development.
Improve regulatory efficiency and market access.
Active Pharmaceutical Ingredient (API)
The biologically active component of a medicine responsible for its therapeutic effect.
APIs are combined with excipients to produce the final dosage form.
Biologics
Medicines produced from living organisms or biological processes.
Examples include monoclonal antibodies, vaccines, and recombinant proteins.
[2021] With reference to international trade of India, which of the following statements are correct: 1.The Top 3 export destinations of India are – USA, UAE, China. 2.The Top 3 exports from India include – Petroleum Products, Drug Formulations, Agricultural Products. 3.Agricultural exports have consistently risen from 2016-17 to 2021-22. 4.India’s merchandise exports are less than its merchandise imports. Select the correct code from the options given below:
Union Minister Sarbananda Sonowal highlighted V. O. Chidambaranar Port Authority as a model for sustainable maritime development, releasing its first Sustainability Report and launching several green and digital initiatives.
Key Highlights
Net carbon emissions reduced by 45%.
Renewable energy offsets nearly 94% of the port’s energy consumption equivalent.
Carbon intensity per tonne of cargo reduced by nearly 50% over the last four years.
Recognized as a Scope-2 Emission Free Port for its transition to clean energy.
Green Hydrogen Initiative
Hosts India’s first Green Hydrogen pilot project at a major port.
Featured in an Indian Institute of Management Calcutta case study titled “The Hydrogen Pivot”.
Education & Innovation
Kendriya Vidyalaya, VOC Port commenced academic activities for the 2026-27 session.
MoU signed with Gati Shakti Vishwavidyalaya for Maritime logistics research, Skill development, Sustainable port operations, and Centre of Excellence in Maritime Logistics & Port Management.
Digital Transformation
Launched PortGPT, making VOC Port the first major port in India to introduce an enterprise-grade generative AI mobile application for Operational efficiency, Knowledge management, and Data-driven decision-making.
Scope-2 Emissions
Indirect greenhouse gas emissions from purchased electricity, steam, heating, or cooling consumed by an organization.
Defined under the Greenhouse Gas (GHG) Protocol.
Green Hydrogen
Produced through electrolysis of water using renewable energy.
Emits zero carbon dioxide during production.
Key pillar of India’s National Green Hydrogen Mission.
[2023] Consider the following pairs : Port—–Well known as 1.Kamarajar Port—-First major port in India registered as a company 2.Mundra Port—–Largest privately owned port in India 3.Visakhapatnam—-Largest container port in India
India’s Net Foreign Direct Investment (FDI) rose to $6.6 billion in April 2026, the highest level since May 2021, driven by a sharp increase in gross FDI inflows.
Key Highlights
Net FDI:$6.6 billion in April 2026, up from $917 million in March 2026.
Gross FDI Inflows:$15.3 billion, the highest since at least March 2021.
Increased 65% year-on-year.
Increased 131% over March 2026.
April inflows alone accounted for over 16% of total FDI received in FY 2025-26.
Major Source Countries
Japan, Singapore, and Mauritius
Together accounted for more than 75% of FDI inflows.
Outward FDI
Gross outflows:$8.7 billion (up 13.7% YoY).
Outward FDI by Indian companies:$4.8 billion, the highest on record since at least March 2021.
Around 80% of outward FDI was directed to United States and Cayman Islands
Major sectors Financial and insurance services, Business services, and Manufacturing
Significance
Marks a strong recovery after six consecutive months of negative net FDI up to February 2026.
Reflects renewed investor confidence and stronger capital inflows into the Indian economy.
Foreign Direct Investment (FDI)
Investment by a foreign entity in a business located in another country with a lasting interest and management control (generally 10% or more equity ownership).
Includes Greenfield investments, Brownfield investments, and Reinvested earnings
FDI vs FPI
FDI: Long-term investment with management control.
FPI (Foreign Portfolio Investment): Investment in financial assets without management control; generally more volatile.
[2021] Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?
TRAI released the Indian Telecom Services Performance Indicator Report for the quarter ending 31 March 2026, highlighting growth in telecom, internet, broadband, DTH, and broadcasting sectors.
Telecom
Total telephone subscribers:1,330.58 million (↑1.87% QoQ).
Tele-density:93.26%: Urban: 151.47% and Rural: 60.46%
Private operators’ market share:92.32%.
Internet & Broadband
Internet subscribers:1,092.79 million (↑6.24% QoQ).
Average wireless data usage:26.70 GB/subscriber/month.
Revenue & Usage
Monthly Wireless ARPU:₹196.04.
Minutes of Usage (MOU):1,017 minutes/subscriber/month.
Adjusted Gross Revenue (AGR):₹86,716 crore.
Broadcasting
Private satellite TV channels:917
Pay TV channels:342
Private FM channels:390 across 120 cities
Pay DTH subscribers:49.05 million
Community Radio Stations:564.
Prelims Pointer
TRAI is a statutory body established under the Telecom Regulatory Authority of India Act, 1997.
It regulates telecom services, ensures consumer protection, promotes competition, and recommends licensing and spectrum policies.
Tele-density = Number of telephone connections per 100 population.
[2019] With reference to communications technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)? 1. LTE is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G. 2. LTE is data-only technology and VoLTE is voice-only technology. Select the correct answer using the code given below.
The Government highlighted India’s progress in AI, semiconductors, quantum technologies, supercomputing, cloud computing, blockchain, and biotechnology as key pillars of Viksit Bharat 2047.
Digital India
Internet connections: 25.15 crore (2014) → 102.86 crore (2026).
Broadband: 6.1 crore → 99.56 crore.
5G services cover 99.9% of districts.
Data cost reduced from ₹269/GB to ₹8-10/GB.
Supercomputing
National Supercomputing Mission (2015): ₹4,500 crore.
