India completed 9 years of GST on 1 July 2026. The government highlighted the impact of GST 2.0 (2025 reforms) in simplifying taxation and improving compliance.
GST at a Glance
Introduced on 1 July 2017 under the 101st Constitutional Amendment Act, 2016.
Destination based tax on the supply of goods and services.
Replaced 17 taxes and 13 cesses under the One Nation, One Tax framework.
Constitutional Provisions
Article 246A: Power to levy GST.
Article 269A: IGST on inter-State supplies.
Article 279A: GST Council.
GST Council
Constitutional body promoting cooperative federalism.
Chaired by the Union Finance Minister.
Recommends tax rates, exemptions and GST policies.
GST 2.0 (2025)
Simplified rate structure with 5% and 18% as primary slabs.
40% GST on luxury and sin goods.
Faster registration, refunds and simplified return filing.
MSME Support
Registration threshold increased to ₹40 lakh.
Composition Scheme limit raised to ₹1.5 crore.
QRMP Scheme for taxpayers with turnover up to ₹5 crore.
[2017] What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:
The Ministry of MSME released its 2025–26 sector review highlighting landmark milestones: 8.7 crore Udyam registrations, CGTMSE completing 25 years, and MSME contributions reaching 31.1% of GDP and 48.58% of exports. The review exposes the central challenge — formalisation and credit access have expanded rapidly, but equity capital, market linkages, and structural inclusion for marginalised entrepreneurs remain uneven.
What is the scale and economic significance of India’s MSME sector, and what structural gaps persist despite aggregate growth?
Economic footprint (January 2026 data): MSMEs contribute 31.1% of GDP, 35.4% of manufacturing output, and 48.58% of exports. With 38.9 crore employed, the sector is the second-largest employment source after agriculture.
Definition revision (April 2025): The government revised MSME classification thresholds based on investment and turnover, giving enterprises greater room to scale without losing policy support — addressing a longstanding cliff-edge disincentive to growth.
Formalisation reach: Udyam and Udyam Assist registrations crossed 8.7 crore as of June 2026, expanding access to institutional finance and government schemes for previously informal enterprises.
Persistent equity gap: Debt-based credit schemes have scaled, but equity capital essential for MSMEs seeking to move beyond micro-scale remains structurally limited. The SRI Fund (Fund of Funds) has reached only 761 enterprises with ₹2,851 crore as of May 2026, a narrow footprint relative to sector size.
How has credit access for MSMEs been restructured, and what constraints remain in reaching the smallest enterprises?
CGTMSE expansion: The Credit Guarantee Fund Trust for Micro and Small Enterprises approved 29.03 lakh guarantees worth ₹3.77 lakh crore (January–November 2025). The guarantee ceiling was raised from ₹5 crore to ₹10 crore, enabling larger collateral-free support.
Digital Credit Assessment Model: A new model reduces dependence on traditional collateral and balance-sheet assessment, improving access for first-generation and informal-origin entrepreneurs who lack formal credit histories.
PMEGP reach: The Prime Minister’s Employment Generation Programme has supported 10.84 lakh micro-enterprises with ₹29,623 crore in margin money subsidies, generating employment for over 97 lakh people since inception. Applications are now available in 19 regional languages (since June 2025).
Remaining constraint: Guarantee schemes address debt access but not enterprise viability. MSMEs without bankable cash flows common among artisan and rural enterprises — remain outside the formal credit architecture despite formalisation.
How are technology adoption and quality certification being embedded into the MSME ecosystem?
ZED Certification (Zero Defect Zero Effect): Over 93.61 lakh MSMEs registered and 6.68 lakh certified as of May 2026. The framework promotes quality manufacturing with minimal environmental impact — aligning MSME output with global supply chain standards.
LEAN Manufacturing: Over 65,647 enterprises registered and 18,961 certified under the Lean Manufacturing scheme. Adoption of globally recognised lean practices reduces waste and raises operational efficiency.
Technology Centre network: 18 existing Technology Centres, 25 operational Extension Centres (trained 53,963 youth), and 9 World Bank-supported centres (trained 59,357 individuals, assisted 1,520 MSMEs as of November 2025). An additional 20 Technology Centres and 100 Extension Centres are under development.
IPR facilitation: Intellectual Property Facilitation Centres have approved 191 patents, 807 trademarks, 99 designs, and 6 GI registrations building a thin but growing innovation asset base within the sector.
How effectively is MSME policy reaching marginalised groups artisans, SC/ST entrepreneurs, women, and the North East?
PM Vishwakarma: The scheme covers 18 traditional trades and reached its four-year registration target of 30 lakh beneficiaries in two years. Over 24 lakh completed basic skill training; ₹5,133 crore in collateral-free loans sanctioned to 5.98 lakh beneficiaries.
National SC/ST Hub: Public procurement from SC/ST-owned enterprises rose from ₹99 crore (2015–16) to ₹3,731 crore (2024–25). SC/ST-owned MSEs accounted for 1.93% of total public procurement as of December 2025, progress visible but far below proportional representation.
Women entrepreneurship: At the 44th IITF 2025, over 67% of MSME stalls were allotted to women entrepreneurs a market access intervention, though stall allocation does not translate directly into sustained commercial scale.
North East promotion: 73 projects approved under the NER & Sikkim scheme (total cost ₹114.37 crore, government assistance ₹89.60 crore), targeting manufacturing, testing, packaging, skilling, and tourism infrastructure. Eight new projects were approved in Assam and Meghalaya in 2025.
SFURTI (traditional industry clusters): 513 clusters approved, 376 functional as of June 2026, benefiting 3.03 lakh artisans. Cluster-based organisation addresses market linkage and tool access — the structural gaps that individual artisan support cannot solve.
Do the governance and grievance redressal mechanisms match the scale of the MSME sector’s delayed payment and dispute burden?
MSME Samadhaan Portal: 2,56,892 applications received involving ₹55,244 crore in claims as of June 2026. Only 58,148 cases disposed — a 22.6% resolution rate, revealing a large unresolved claims backlog despite the portal’s existence.
CHAMPIONS Portal: 39,494 grievances received in 2025–26; 39,387 resolved a 99.72% disposal rate. High throughput here contrasts sharply with Samadhaan’s backlog, suggesting delayed payments are the deeper structural problem, not general grievance handling.
Online Dispute Resolution (ODR) Portal: Newly launched to reduce delayed payments through technology-enabled dispute resolution. Effectiveness is yet to be demonstrated at scale.
Public procurement monitoring: The MSME Sambandh Portal tracked ₹31,443 crore in CPSE procurement during FY 2026–27 (as of June 2026), with 54.51% sourced from MSEs across 29,769 enterprises. Mandatory procurement targets create market access but do not resolve the downstream payment delay problem.
Conclusion
India’s MSME sector has achieved significant formalisation and credit access milestones — but the policy architecture still addresses inputs (registrations, guarantees, skilling) more effectively than outcomes (enterprise viability, market competitiveness, equitable inclusion). The delayed payment backlog on Samadhaan, the narrow reach of equity capital under the SRI Fund, and the 1.93% SC/ST share in public procurement collectively indicate that expansion of the formal enterprise base has not yet translated into structural economic empowerment. For Viksit Bharat 2047, the MSME agenda must shift from formalisation as an end to commercialisation and sustained enterprise growth as the measure of success.
The Department of Consumer Affairs has introduced the Improvement Notice mechanism under the Legal Metrology Act, 2009 through the Jan Vishwas (Amendment of Provisions) Act, 2026. The reform aims to reduce the compliance burden, promote Ease of Doing Business (EoDB), and encourage voluntary compliance while ensuring consumer protection.
What is the Improvement Notice Mechanism?
It allows first-time procedural or regulatory non-compliance to be corrected before penal proceedings begin.
A Legal Metrology Officer issues an Improvement Notice, identifying the deficiency and providing reasonable time for rectification.
If the entity complies within the prescribed period:
No penal action or unnecessary litigation.
If the entity Fails to comply, or Repeats the violation, Penal provisions under the Legal Metrology Act continue to apply.
Objectives
Promote Ease of Doing Business (EoDB).
Encourage voluntary compliance.
Reduce compliance costs and litigation.
Foster trust-based governance.
Allow regulators to focus on serious and deliberate violations.
Significance for UPSC
Example of Minimum Government, Maximum Governance.
Reflects the philosophy of the Jan Vishwas Act.
Balances Consumer protection, Regulatory efficiency, and Ease of Doing Business
Shifts regulation from a punitive approach to a facilitative approach.
Jan Vishwas (Amendment of Provisions) Act, 2026
The Jan Vishwas (Amendment of Provisions) Act, 2026 is a reform aimed at promoting Ease of Doing Business (EoDB) by shifting from a punitive compliance regime to a trust-based governance framework.
It amends several Central laws to reduce unnecessary penalties for minor procedural violations while retaining strict action for serious offences.
Legal Metrology Act, 2009
Legal Metrology is the application of laws and regulations to weights, measures, measuring instruments, and packaged commodities to ensure accuracy, fairness in trade, and consumer protection.
Enacted: 2009 (came into force in 2011)
Nodal Ministry: Ministry of Consumer Affairs, Food and Public Distribution
Department: Department of Consumer Affairs
[2022] In India which one of the following is responsible for maintaining for prices stability by controlling inflation?
The RBI notified a revised compensation framework for victims of digital payment fraud, effective 1 January 2027. Under the scheme, victims can recover part of losses up to ₹50,000 through a state-supported fund. The move follows a sharp rise in fraud value despite fewer reported cases.
Why did the RBI intervene now, and what does the scale of digital fraud reveal about the existing liability framework?
Rising fraud value: Fraud cases fell to 10,114 in FY26, but the amount involved increased 46% to ₹48,021 crore, indicating fewer but larger frauds.
Consumer liability gap: The earlier framework placed the burden of proof and recovery on customers. Banks faced limited liability unless negligence was established
Electronic Banking Transactions (EBTs) as the primary vector: EBT are a digitally initiated banking transaction, including NEFT, RTGS, UPI, and card-based payments. They became the primary fraud channel, exposing a liability gap.
State absorption of residual risk: The new framework makes the RBI the majority loss-bearer for unrecovered fraud amounts. This signals that the regulator treats digital fraud loss as a systemic risk requiring regulatory underwriting, not merely a bilateral consumer-bank dispute.
What is the consumer entitlement under the new framework, and what conditions govern eligibility?
Maximum compensation ceiling: A victim is eligible for compensation of up to 85% of net loss amount or ₹25,000, whichever is less. This applies to gross fraudulent EBT losses up to ₹50,000.
Lifetime cap: The compensation is available once during the lifetime of the account holder. Repeat claims for subsequent fraud events are not covered under this mechanism.
Complaint filing window: Victims must lodge a complaint regarding the fraud within five calendar days of the event. Claims filed beyond this window are ineligible regardless of the loss amount.
Loss verification standard: The loss must be established in accordance with the internal processes set out in the victim’s bank’s policy. The framework does not prescribe a uniform evidentiary standard across banks, leaving verification to individual bank procedures.
Threshold-based compensation rate: For losses below ₹29,412, the victim receives 85% of the amount lost. For losses between ₹29,412 and ₹50,000, the victim receives a flat ₹25,000 (the ceiling).
How is the cost of compensation shared between the RBI, the victim’s bank, and the beneficiary bank?
Domestic fraud (below ₹29,412): RBI bears 65% of compensation. The victim’s bank and beneficiary bank contribute 10% each.
Domestic EBT fraud between ₹29,412 and ₹50,000 (₹25,000 flat compensation): The RBI contributes ₹19,118 (76.5%). The victim’s bank and the beneficiary bank each contribute ₹2,941 (approximately 12% each).
Cross-border EBT fraud (elevated bank contribution): In cross-border cases, the victim’s bank’s contribution rises to 20% for frauds below ₹29,412, and to ₹5,882 for frauds in the ₹29,412-₹50,000 band.
Multiple beneficiary banks (proportionate allocation): Where more than one beneficiary bank receives the fraudulent amount, each bank’s share of the compensation is proportionate to the amount credited to its accounts.
Numerical illustration (official example): If fraud loss is ₹40,000 and ₹15,000 is recovered, the net compensable loss is ₹25,000. The victim receives 85% of ₹25,000 = ₹21,250. The RBI contributes ₹16,250; victim’s bank and beneficiary bank contribute ₹2,500 each. If nothing is recovered, the victim receives ₹25,000 (ceiling), distributed in the same proportion.
What standard of bank negligence triggers full bank liability, and what are the banks’ procedural obligations?
Full bank liability for own negligence: Where fraud arises from the bank’s own negligence, the bank must compensate the victim entirely. The RBI cost-sharing mechanism does not apply in such cases.
Safety and security failures: Failing to ensure proper safety and security mechanisms for EBTs constitutes negligence. This includes system malfunctions and security breaches.
Alert failures: Failing to send mandatory transaction alerts for EBTs above ₹500 is classified as negligence. The alert obligation is non-discretionary.
Complaint handling failures: Failing to provide 24×7 channels for customer complaints and failing to act diligently on received complaints both constitute negligence. Banks cannot limit complaint access to business hours.
Complaint resolution timelines: Banks must resolve fraudulent EBT complaints within 45 calendar days for domestic EBTs and within 60 calendar days for cross-border EBTs. Breach of these timelines has implications for bank liability assessment.
Post-complaint containment obligation: On receipt of any fraudulent EBT complaint, a bank must take prompt steps to prevent further unauthorised EBTs in the customer’s account. This is a proactive duty, not a passive acknowledgment obligation.
Does the framework resolve the consumer’s structural vulnerability to digital fraud, or does it shift the problem without eliminating it?
Consumer protection: The framework guarantees time-bound compensation and imposes liability for proven bank negligence.
Limited bank incentives: RBI bears most compensation costs. Banks usually contribute only 10-20%, reducing incentives to strengthen fraud prevention.
Procedural burden: Victims must report fraud within five days and satisfy bank-specific verification standards.
Source of fraud: The framework compensates losses but does not strengthen EBT security standards or regulate payment intermediaries.
Residual reporting: Victims must also report fraud to the National Cyber Crime Reporting Portal or Cyber Crime Helpline. This supports record-keeping, not recovery.
Coverage mismatch: The compensation cap is ₹25,000, whereas average fraud value in FY26 was about ₹4.75 crore per case, limiting relevance to small-value consumer fraud.
Conclusion
The RBI framework introduces the first regulatory mechanism for sharing consumer losses from digital fraud. It reduces immediate customer losses but leaves banks with limited financial incentives to prevent fraud. Large-value frauds, security standards and accountability of payment intermediaries remain unresolved.
The Union Government has released a draft amendment to the National Food Security Act (NFSA), 2013, inviting public comments until 13 July 2026.
Proposed Amendment
Every AAY beneficiary will receive 7 kg of foodgrains per month, subject to a maximum of 35 kg per household, free of cost.
Earlier: Every AAY household received 35 kg/month, irrespective of family size.
Rationale
Remove inequity between small and large households.
Ensure a fairer per capita allocation.
Better align foodgrain entitlements with nutritional needs.
Concerns
Kerala and other non-BJP ruled states argue that smaller households, especially in southern states, will receive less foodgrain, reducing overall allocations.
Activists warn of a possible North-South disparity due to differences in average family size.
Delay in the Census has prevented revision of AAY beneficiary lists, leaving many poor families excluded.
Right to Food Campaign demands:
14 kg foodgrains per person.
Inclusion of pulses and edible oil under NFSA to ensure nutritional security.
[2018] With reference to the provisions made under the National Food Security Act, 2013, consider the following statements:
1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
3. Pregnant women and lactating mothers are entitled to a ‘take‑home ration’ of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statements given above is/are correct?
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 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
