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Type: Indigenous/Made in India

  • ₹3,070 Crore Defence Boost: 405 Items to Go Indigenous

    Why in the News

    The Department of Defence Production notified the sixth Positive Indigenisation List, covering 405 strategically important defence items with an estimated business potential of Rs 3,070 crore. The list moves the import ban from whole platforms down to the spares, sub-assemblies and raw materials layer that keeps imported fleets flying and floating.

    What is the Positive Indigenisation List?

    1. Definition: A Positive Indigenisation List (PIL) is a notified list of defence items that can be procured only from Indian industry after a stated deadline passes.
    2. Legal effect: The listed item stays importable until its deadline. After that date, procurement is exclusively domestic.
    3. Issuing authority: The Department of Defence Production (DDP) under the Ministry of Defence notifies the list.
    4. Two families of lists: One family covers capital acquisition platforms for the armed forces. The second family covers line replaceable units, sub-systems, sub-assemblies, spares, components and raw materials of Defence Public Sector Undertakings (DPSUs), which is the family the sixth list belongs to.
    5. Policy anchor: The Ministry placed the sixth list within the Aatmanirbhar Bharat initiative for self reliance in defence manufacturing.

    What is a Line Replaceable Unit?

    1. Definition: A Line Replaceable Unit (LRU) is a self contained module on a platform that a technician can swap out at the operating unit itself, without sending the platform to a depot.
    2. Why it matters: LRU import dependence decides fleet availability, since an aircraft grounded for one imported module is as unusable as an aircraft never bought.

    What is the SRIJAN Defence Portal?

    1. Definition: The SRIJAN Defence Portal is the Ministry of Defence’s online indigenisation platform on which DPSUs and the Services publish items they currently import and invite Indian vendors to develop them.
    2. Use in this case: The detailed sixth list has been uploaded on the portal, so vendors can see item level specifications rather than only the headline count.

    Components of the sixth list, by lifecycle stage

    The release’s own categorisation phrase is “line replaceable units, sub-systems, sub-assemblies, spares, components and raw materials”. The table below keeps that official grouping and maps each element to the stage of the platform lifecycle it sits at.

    Official category (lifecycle stage)Platforms and systems coveredOfficial figuresPrimary stakeholder
    Raw materials (input stage)Feedstock for the listed platforms and systemsNo separate figure given in the releaseIndian industry, particularly MSMEs
    Components and spares (production stage)Armoured platforms T-72, T-90 and BMP-II, and warshipsNo separate figure given in the releaseDPSUs with MSME participation
    Sub-assemblies and sub-systems (assembly stage)Advanced Light Helicopter, Light Utility Helicopter, Chetak and Cheetah helicopters, Su-30MKI, Jaguar, MiG-29, the Light Combat Aircraft and the AL-31FP engineNo separate figure given in the releaseDPSUs, in house development route
    Line replaceable units (sustainment stage)Missile systems Konkurs-M, Invar and MRSAM, defence electronics covering radars, sonars, fire control systems and satellite communication systems, and High Explosive Anti-Tank ammunitionPart of the 405 items worth Rs 3,070 crore16 items for the Indian Coast Guard, 389 items for DPSUs
    Exclusive domestic procurement (offtake stage)All 405 listed itemsDeadlines running up to December 2031Indian industry as the sole permitted source

    Why does the list target spares and sub-systems rather than whole platforms?

    1. Sustainment is where imports survive: A platform built in India under licence still draws imported modules through its service life, so a platform level ban leaves the recurring import bill untouched.
    2. Legacy Russian and Western fleets stay in service: The Su-30MKI, MiG-29, Jaguar, T-72, T-90, BMP-II, Konkurs-M and Invar are all of foreign origin and remain in front line use, so their spares are the standing demand.
    3. MSMEs can enter at this scale: The Ministry stated that DPSUs and the Indian Coast Guard will indigenise through several routes including in house development, with participation from industry and particularly MSMEs.
    4. Deadlines create assured demand: Once an item is developed locally, it will be procured exclusively from Indian industry, which converts a technical goal into a guaranteed order.
    5. Stated economic objective: The Ministry expects the list to expand opportunities for Indian industry, strengthen the domestic defence manufacturing ecosystem, promote investment and innovation, and reduce import dependence.

    What does the record of the previous five lists show?

    1. Cumulative coverage: The last five positive indigenisation lists together comprised 5,012 critical items of DPSUs.
    2. Delivery so far: 3,200 of those items have already been indigenised.
    3. Value realised: The indigenised items carry an import substitution value of over Rs 3,900 crore.
    4. Completion gap: 1,812 items from the earlier five lists remain to be indigenised even before the sixth list’s 405 are added.
    5. Scale of the new tranche: The sixth list’s Rs 3,070 crore business potential is close to the entire import substitution value the previous five lists have delivered so far.

    Challenges to the Positive Indigenisation List

    1. Design authority remains abroad: Reverse engineering a spare does not transfer the original equipment manufacturer’s design data, so upgrades and configuration changes still need foreign clearance, e.g. Su-30MKI serviceability fell sharply when Russian spares supply was disrupted after February 2022.
    2. Certification is the real bottleneck: A developed item still needs airworthiness or seaworthiness clearance before induction, and that queue is longer than the development itself, e.g. clearances from the Centre for Military Airworthiness and Certification for a single aviation grade module routinely run into years.
    3. An import ban does not create capability: Prohibiting an import without a working domestic alternative simply postpones the requirement, e.g. the Kaveri engine programme began in 1989 and the Light Combat Aircraft still flies on the imported GE F404.
    4. Working capital stress for small vendors: An MSME must fund development, tooling and inventory ahead of an order it may receive years later, e.g. procurement cycles under the Defence Acquisition Procedure, 2020 routinely run beyond 100 weeks from acceptance of necessity to contract.
    5. Quality escapes damage the case for domestic sourcing: A defective indigenous item costs more credibility than an imported one, e.g. the Comptroller and Auditor General’s 2019 report on ammunition management flagged defective ammunition from Ordnance Factory Board units causing accidents and monetary loss.
    6. Import substitution is not export competitiveness: Substituting an import for the home market does not make the product globally saleable, e.g. India stayed among the world’s largest arms importers through 2020 to 2024 even after five lists had been notified.

    Conclusion

    The sixth Positive Indigenisation List stands notified, with 405 items worth Rs 3,070 crore, split as 16 Indian Coast Guard items and 389 DPSU items, and uploaded on the SRIJAN Defence Portal. The next milestone is item wise indigenisation within the notified timeframes, with the outer deadlines running to December 2031, after which the listed items may be procured only from Indian industry.

  • Rotating detonation engines: the science and the promises

    Why in the News

    An India based defence startup announced that it had successfully demonstrated a rotating detonation engine (RDE) at a Defence Research and Development Organisation (DRDO) facility in Hyderabad. The physics of the design has been understood since the 1960s, and the binding constraint has never been the theory but the materials, computing and diagnostics needed to hold a continuous supersonic detonation inside a compact chamber. Despite a global cluster of tests and funding rounds in 2026, no model is known to be ready for commercial or military use anywhere.

    What is a rotating detonation engine (RDE)?

    1. What it is: An engine design in which combustion happens as a continuous detonation travelling in a circle inside a ring shaped chamber, rather than as a flame front sweeping through a cylinder.
    2. Its promise: It uses fuel more efficiently than conventional rocket engines, so the same task needs correspondingly less fuel.
    3. Why the saving matters: Launching satellites and carrying explosives to distant targets are both expensive, and fuel saved can be passed to the payload, whether a satellite or a warhead.
    4. The efficiency figure: Going by physics alone, RDEs offer around 10 per cent to 25 per cent more thermodynamic efficiency than conventional combustors, with the exact value depending on real world conditions and engine design.
    5. What it produces: It can continuously generate thrust, or mechanical energy if coupled to a piston.
    6. Its current state: RDEs are confined to research and development, and there are no models known to be ready for commercial or military use.

    What is deflagration?

    1. What it is: Combustion in which a flame introduced into a fuel and air mixture travels through that mixture at less than the speed of sound.
    2. What it does thermodynamically: The combustion happens at constant pressure, because the mixture is free to expand as it heats up instead of being confined under pressure.

    What is detonation?

    1. What it is: Combustion in which the flame travels through the mixture at more than the speed of sound, imposing a shock wave on the mixture and heating it, which triggers rapid combustion behind the wave.
    2. What it does thermodynamically: The combustion happens at constant volume, because the shock wave compresses the unburned mixture immediately before combustion and the mixture has no time to expand.

    What is a pulsed detonation engine (PDE)?

    1. What it is: The simplest type of detonation engine, using a long tube as the combustion chamber so a detonation can pass through the whole mixture.
    2. Its cycle: The detonation races down the tube, compressing and burning the fuel and air mixture, and the hot high pressure products expand out of the open end at high speed. The tube is then purged before the next cycle begins.

    What is an annular combustor?

    1. What it is: A combustion chamber shaped as two concentric cylinders with a narrow ring shaped gap between them, the gap being called the annulus.
    2. Why the RDE uses it: The annulus gives the detonation wave a closed circular path to travel, which is what converts a one shot detonation into a continuous one.

    What is thermodynamic efficiency?

    1. What it measures: How much of a fuel’s chemical energy becomes useful work rather than being shed as waste heat.
    2. What a gain translates into: An RDE that improves thermodynamic efficiency by 20 per cent could theoretically require around 17 per cent less fuel for the same output, assuming other losses are unchanged.

    Why does detonation deliver more efficiency than deflagration?

    1. The regular engine case: A spark plug introduces a flame into the fuel and air mixture in the combustion chamber, and it travels through at subsonic speed.
    2. The expansion difference: In deflagration the mixture expands freely as it heats, so combustion proceeds at constant pressure.
    3. The compression difference: In detonation the shock wave compresses the unburned mixture just before it burns, so combustion proceeds at constant volume.
    4. The pressure outcome: A detonation engine therefore produces combustion products at a higher pressure.
    5. The energy conversion: More of the fuel’s chemical energy is converted into pressure rather than being shed as heat, and that is the entire basis of the fuel efficiency claim.
    6. The comparison held constant: The advantage holds for a detonation engine against a regular engine burning the same fuel.

    How does an RDE sustain a continuous detonation?

    1. The design choice: Instead of the detonation passing through a long tube once, it is made to flow in a circle.
    2. The chamber: The combustion chamber has an annular shape, and fuel and oxidiser are injected continuously into the ring shaped gap.
    3. The wave: One or more detonation waves race through the annulus while injection continues.
    4. The timing requirement: Fuel is injected into the annulus just ahead of the detonation wave, so the wave always meets fresh mixture.
    5. The exhaust: The wave consumes the fresh fuel and air mixture and expels the products through the nozzle along its axis.
    6. The rate: As long as fuel keeps arriving at the right time and in the right condition, the detonation can keep going even at thousands of times per second.
    7. The output: By Newton’s third law the momentum of the expelled gases produces an equal and opposite momentum on the engine, which is what generates thrust.

    Who is developing rotating detonation engines and with what funding?

    1. D-Propulse, India: The India based defence startup that recently announced a successful RDE demonstration at a DRDO facility in Hyderabad.
    2. NASA, United States: Ran a full scale RDE test in 2023 in which the engine fired for 251 seconds, a record at the time.
    3. GE Aerospace and Lockheed Martin: Demonstrated an RDE for hypersonic missiles in January, using air drawn from the atmosphere.
    4. SpaceWorks, United States: Reported hot fire tests of its RDE for rockets in February.
    5. Astrobotic, United States: Test fired its Chakram RDE continuously for 300 seconds.
    6. L3Harris, United States: Announced that it had tested two RDEs, in April and May respectively.
    7. Stellar Alpina, Switzerland: Completed a commercial RDE hot fire test and raised CHF 3.5 million.
    8. Juno Propulsion: Raised $1.4 million to develop an RDE for spacecraft thrusters.
    9. Venus Aerospace, United States: Raised $91 million in July to scale its tested RDE, then partnered with Lockheed Martin.
    10. What the roster shows: Activity is concentrated in the United States and in venture funded startups, and it spans rockets, hypersonic missiles and spacecraft thrusters rather than a single application.

    Why was a 1960s concept only testable now?

    1. The theory was settled early: Scientists worked out how an RDE could function by the 1960s, and building one was a different matter.
    2. Injection and pressure control: Sustaining a continuous detonation in a compact chamber requires engineers to precisely control fuel injection and internal pressure.
    3. Chamber geometry: The chamber needs a specific geometry for the engine to work as intended.
    4. Instability sensitivity: Unlike in regular engines, even small instabilities in the fuel and air mixture can destabilise an RDE.
    5. Temperature threshold: Engine materials must withstand more than 2,000 degrees Celsius.
    6. Pressure threshold: Materials must survive 10 to 100 atmospheres of pressure, and much higher in brief moments.
    7. Speed threshold: Detonation speeds exceed 1,500 m/s.
    8. Oscillation and loading: Pressures oscillate at several thousand cycles per second, and the structure sees potentially tens to hundreds of g depending on the design.
    9. What had to arrive first: Working RDEs required advances in high speed computing, diagnostics, fuel injection, materials and manufacturing.

    Why does the efficiency gain matter for launch and strike systems?

    1. Cost of access to space: Launching satellites on rockets is expensive, and fuel is a dominant share of the launch mass.
    2. Cost of long range strike: Carrying explosives to distant targets on missiles is equally expensive on the same fuel logic.
    3. The trade converted: Less fuel for the same task means more mass available for payload.
    4. Commercial consequence: Passing that saving to the satellite or warhead increases the profitability of the mission.
    5. Why launch benefits most: The gain is considered significant specifically for rocket launches, where the fuel to payload ratio is most punishing.
    6. The air breathing variant: For hypersonic missiles the engine draws oxidiser from the atmosphere, which removes the need to carry it.

    Why does a settled physics advantage still have no deployable engine?

    1. The stated status: RDEs remain confined to research and development, with no models known to be ready for commercial or military use.
    2. The evidence gap: Actual data from many tests by commercial entities are not available in the public domain.
    3. What the efficiency claim rests on: The 10 per cent to 25 per cent figure is derived from physics alone, not from fielded performance.
    4. The qualification the source itself attaches: The saving that can be passed to the payload holds at least on paper.
    5. Where the difficulty sits: The obstacle is not the thermodynamics but the survivability of materials and the controllability of the detonation.
    6. The demonstration versus product gap: A successful hot fire test proves the wave can be sustained, and it does not prove an engine can be throttled, restarted, integrated and qualified for flight.
    7. The funding signal: Capital is arriving before a product exists, which is a bet on the remaining engineering rather than a proof that it is solved.

    Challenges to rotating detonation engine development

    1. Material survivability under cyclic thermal load: Wall materials face more than 2,000 degrees Celsius and pressure oscillations of several thousand cycles per second, which drives fatigue cracking. e.g. regeneratively cooled chamber liners in conventional engines already fail at far lower thermal cycling rates.
    2. Detonation wave instability: Wave count, direction and mode can shift during a run, which changes thrust unpredictably. e.g. test campaigns commonly report transitions between single wave and multiple wave modes in the same firing.
    3. Injector design and mixing: Fuel and oxidiser must mix fully in the microseconds before the wave arrives, and incomplete mixing quenches the detonation. e.g. deflagration to detonation transition failures reported in early pulsed detonation engine work.
    4. Nozzle matching: The exhaust leaves the annulus with a rotating, unsteady pressure field that a conventional bell nozzle is not designed for. e.g. aerospike and plug nozzle concepts are being revisited specifically for detonation exhausts.
    5. Absence of validated test data: Commercial developers do not release performance data, so independent verification of efficiency claims is not possible. e.g. the hot fire results announced by several firms in 2026 carry no published specific impulse figures.
    6. Qualification and certification burden: Flight qualification requires demonstrated restart, throttling and life cycle margins that no RDE has yet shown. e.g. human rated engines must clear multiple full duration firings with margin, a standard the 251 second NASA record does not yet meet.
    7. Dual use export control: Detonation propulsion for hypersonic applications falls within missile technology control regimes, which restricts collaboration. e.g. Missile Technology Control Regime Category I restrictions on complete rocket systems and their major subsystems.
    8. Manufacturing tolerance: The annulus gap must be held to fine tolerance across a hot, deforming structure, which requires additive manufacturing at aerospace grade. e.g. additive manufactured combustion chambers have to be qualified for porosity and residual stress before flight use.
    9. Talent and facility scarcity: Very few facilities can instrument a detonation at these speeds and pressures. e.g. high speed schlieren and pressure diagnostics capable of resolving events at several thousand cycles per second exist in a handful of laboratories.

    Conclusion

    The rotating detonation engine’s advantage is a settled point of physics: replacing constant pressure deflagration with constant volume detonation converts more chemical energy into pressure instead of shedding it as heat, and that is worth roughly 10 per cent to 25 per cent in thermodynamic efficiency. What remains unsolved is entirely an engineering problem of materials, wave control and diagnostics, which is why a design understood in the 1960s still has no commercially or militarily ready model anywhere. The Hyderabad demonstration places India inside the small group attempting that engineering, and a demonstration is not yet a qualified engine.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:
    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.
    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.
    3. Skyroot Aerospace has developed liquid fuel for GSLV.
    (a) 1 only
    (b) 2 and 3 only
    (c) 1 and 2 only
    (d) 1, 2 and 3

  • IT Ministry okays Rs 7,877-cr worth projects under ECMS

    Why in the News

    The Ministry of Electronics and Information Technology (MeitY) approved 31 more applications worth Rs 7,877 crore under the Electronics Components Manufacturing Scheme (ECMS), spread across 10 States. Cumulative approved investment under the scheme has crossed Rs 69,548 crore against an original target of Rs 59,350 crore, while committed employment stands at about 75,000 against a target of 91,600.

    What is the Electronics Components Manufacturing Scheme (ECMS)?

    1. About: ECMS is a MeitY scheme that gives incentives for manufacturing passive and active electronic components and sub assemblies inside India, rather than finished devices.
    2. Objective: It targets the segment of the electronics value chain that India still imports, such as capacitors, connectors, enclosures and display modules.
    3. Incentive structure: Approved projects receive turnover linked or capex linked incentives released only on achieving stated milestones.
    4. Original targets: The scheme set an investment target of Rs 59,350 crore, a production target of Rs 4.56 lakh crore and an employment target of 91,600 jobs.
    5. Approval cadence: Approvals are cleared in weekly or ten day cycles by an approval meeting, making it one of the fastest moving programmes of the Ministry.

    What is a turnover linked and a capex linked incentive?

    1. Turnover linked incentive: The payout is calculated as a percentage of incremental sales of the manufactured component, so support flows only after the plant actually produces and sells.
    2. Capex linked incentive: The payout is a share of eligible capital expenditure on plant and machinery, which lowers the upfront cost of building a component fabrication line.

    What are optical transceivers?

    1. About: An optical transceiver is a module that converts electrical signals into light pulses for transmission through optical fibre and converts them back at the receiving end.
    2. Why it matters: These modules are the core hardware of data centres and telecom backhaul networks, and India has so far imported almost all of its requirement.

    What are copper clad laminates?

    1. About: A copper clad laminate is a sheet of insulating resin material bonded with copper foil, and it is the base substrate on which every printed circuit board (PCB) is etched.
    2. Strategic value: Without domestic laminate capacity, a PCB plant remains an assembly operation dependent on imported substrate.

    What does the latest tranche of approvals contain?

    1. Volume: 31 applications involving proposed investment of Rs 7,877 crore were cleared, spread across 10 States.
    2. States covered: The tranche covers Himachal Pradesh, Uttarakhand, Uttar Pradesh, Haryana, Gujarat, Maharashtra, Goa, Karnataka, Tamil Nadu and Telangana, with Tamil Nadu taking the highest share at seven project approvals.
    3. Product range: Approvals span capital goods, camera and display modules, anode materials, enclosures, connectors, rare earth permanent magnets, optical transceivers, speakers and microphones, antennas, capacitors, coils and filters.
    4. First time products: Several parts have never been manufactured in India before, including electrolyte additives, hermetic terminals used for defence grade sealed assemblies, metalised films for capacitors and coils.
    5. An enhancement, not a new plant: Wipro Global’s copper clad laminates project accounted for a Rs 11,033 crore increase in project value, leaving about Rs 6,844 crore in approvals for genuinely fresh projects.
    6. Expected output: The tranche is expected to lead to production worth Rs 82,243 crore and close to 10,000 direct jobs.

    Where does the scheme stand against its own targets?

    1. Applications cleared: 106 applications have now been approved, covering around 30 product categories across 15 States.
    2. Investment overshoot: Cumulative proposed investment has reached Rs 69,548 crore, crossing the original target of Rs 59,350 crore.
    3. Production overshoot: Expected production from approved projects stands at Rs 5.34 lakh crore against an original target of Rs 4.56 lakh crore.
    4. Employment shortfall: Selected companies have committed close to 75,000 jobs against the scheme’s total target of 91,600.
    5. Official position on the gap: The IT Secretary stated that the employment target has not yet been reached and would be reached shortly.

    How complete is the claim of atmanirbharta in components?

    1. Fully covered segments: The IT Minister stated that approved projects make India atmanirbhar in planned supplies of enclosures for devices, relays, anode material and optical transceivers.
    2. Relays as an export line: Relays under the approved projects are already being exported, not merely substituting imports.
    3. Partial coverage in laminates: Laminates are being produced at 80 per cent of domestic demand.
    4. Partial coverage in connectors and cells: Domestic production stands at 75 per cent for connectors, 60 per cent for lithium ion cells and 55 per cent for transducers.
    5. Reading the numbers: Self reliance has been claimed for four narrow product lines, while the higher value and higher volume segments remain partially import dependent.

    Which approved projects have actually reached production?

    1. Operational plants: ATL’s lithium ion cell facilities at Rewari and Sohna and Tata Electronics’ enclosure plant at Hosur are currently operational.
    2. Nearing commissioning: Kaynes Circuits’ PCB plant near Chennai is expected to start operations within about a month.
    3. Two to three month horizon: Motherson’s enclosure facility at Kanchipuram and Wipro Global’s copper clad laminate plant are expected to start in the next two to three months.
    4. Four month horizon: Dixon’s display and camera module facility at Noida is expected to go live within four months.
    5. Approval versus asset: Most of the Rs 69,548 crore approved remains a commitment on paper, since only three plants are producing today.

    Why is investment running ahead of employment under ECMS?

    1. Capital intensity of components: Component fabrication uses automated deposition, winding and moulding lines, so output scales with machinery rather than with headcount.
    2. Incentive design: Both the turnover linked and the capex linked routes reward sales and capital spending, and neither makes disbursal conditional on the jobs actually created.
    3. Nature of the products: Enclosures, laminates and magnets are process industries, unlike mobile phone assembly under earlier programmes where manual assembly lines absorbed large workforces.
    4. Skill mismatch: Component plants need process technicians and materials engineers, and the shortage of that specific pool caps hiring even where capacity exists.
    5. The policy consequence: Import substitution in value terms is being achieved faster than the employment objective the scheme was also sold on.

    Challenges to the Electronics Components Manufacturing Scheme

    1. Dependence on imported inputs one layer down: Localising a component often shifts import dependence to its raw material rather than removing it. e.g. domestic lithium ion cell plants at Rewari still import cathode active material and separators.
    2. Rare earth supply concentration: Permanent magnet manufacturing approved under the scheme depends on rare earth feedstock controlled by a single supplier country. e.g. China’s April 2025 export controls on seven rare earth elements disrupted Indian and global automotive magnet supply.
    3. Slow conversion of approvals into plants: A large approval pipeline can stall at land, power and clearance stages. e.g. only three ECMS plants are operational while 106 applications stand approved.
    4. Thin margins in passive components: Capacitors, connectors and coils are low margin commodity items where scale determines survival. e.g. global capacitor pricing is set by high volume producers in Japan, South Korea and Taiwan, leaving little room for a new entrant.
    5. Design capability gap: Manufacturing incentives do not create intellectual property, so the high value design layer stays offshore. e.g. India assembles and now fabricates components, while chip design ownership for most consumer devices sits with firms in the United States, South Korea and Taiwan.
    6. Employment target risk: A shortfall in the jobs commitment weakens the political case for continuing the outlay. e.g. committed jobs stand at about 75,000 against the scheme target of 91,600.
    7. Testing and certification infrastructure: Components need qualification testing before global original equipment manufacturers accept them. e.g. automotive grade and defence grade parts such as hermetic terminals need long reliability qualification cycles that Indian labs are only now building.

    Conclusion

    ECMS has crossed its investment and production targets well ahead of schedule, while its employment target remains unmet. The scheme has proved that capital will come to component manufacturing when the incentive is priced correctly, and that value addition in this segment is capital intensive rather than labour intensive. The next test is conversion, since only three approved plants are producing today against 106 approved applications. The Ministry expects further approvals in weekly cycles and states that the employment target will be reached shortly.

    Electronics Manufacturing in India

    1. About: Electronics manufacturing covers the making of finished devices, sub assemblies such as display and camera modules, and discrete components such as capacitors, connectors, resistors and printed circuit boards.
    2. Scale: India’s electronics production has crossed Rs 11 lakh crore in recent years, with mobile phones forming the single largest segment.
    3. Global standing: India is the second largest mobile phone manufacturer in the world by volume, after China.
    4. Structural weakness: Value addition remains concentrated in final assembly, with components and sub assemblies contributing the bulk of the import bill.
    5. Trade position: Electronic goods have become one of India’s fastest growing export categories, driven mainly by smartphone exports.
    6. Employment profile: The sector is a large formal sector employer for semi skilled workers, with contract electronics manufacturers operating the largest plants.

    Constitutional and Statutory Framework Governing Electronics Manufacturing

    1. Article 246 with Entry 52 of the Union List: Empowers Parliament to regulate industries declared by law to be expedient in the public interest, the constitutional basis for central industrial policy.
    2. Entry 41 of the Union List: Covers trade and commerce with foreign countries and import and export across customs frontiers, the basis for tariff action on components.
    3. Entry 33 of the Concurrent List: Covers trade and commerce in, and production and supply of, products of controlled industries.
    4. Article 265: Bars any levy of tax except by authority of law, the basis for customs duty structures used in the phased manufacturing approach.
    5. Article 282: Permits the Union to make grants for any public purpose, the source of authority for incentive disbursals under a scheme.

    Laws and Rules Governing Electronics Manufacturing

    1. Information Technology Act, 2000: Provides the legal framework for electronic records and cyber security, and is the parent statute for rules governing electronic hardware security.
    2. Information Technology (Information Security Practices and Procedures for Protected System) Rules, 2018: Set security obligations for designated protected systems.
    3. Bureau of Indian Standards Act, 2016: Enables compulsory registration of electronic products and mandatory conformity to Indian standards before sale.
    4. Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order: Brings notified electronic goods under mandatory BIS registration.
    5. Customs Act, 1962 with the Customs Tariff Act, 1975: Provide the duty structure used to raise the cost of imported finished goods relative to components.
    6. Environment (Protection) Act, 1986: Parent statute for the rules governing hazardous inputs and end of life electronics.
    7. Electronic Waste (Management) Rules, 2022: Impose extended producer responsibility targets on producers of electrical and electronic equipment.
    8. Legal Metrology Act, 2009: Governs declarations on packaged electronic goods, including country of origin.
    9. Foreign Trade (Development and Regulation) Act, 1992: Provides the power to restrict or license imports of specified electronic items.

    Back2Basics: Production Linked Incentive (PLI) Scheme

    1. Administering authority: Individual PLI schemes are run by their respective line ministries, with overall coordination by NITI Aayog and the Department for Promotion of Industry and Internal Trade.
    2. Launch year: The first PLI scheme, for Large Scale Electronics Manufacturing, was announced in 2020, and the framework was later extended to 14 sectors.
    3. Aim: To raise domestic manufacturing output and exports by paying an incentive on incremental sales of goods manufactured in India over a base year.
    4. Sectors covered: Sectors include mobile phones and electronic components, pharmaceuticals, automobiles and auto components, telecom, food processing, white goods, textiles, drones, advanced chemistry cell batteries and specialty steel.
    5. Design feature: Support is outcome linked, since disbursal follows achievement of stated investment and incremental sales thresholds rather than mere project approval.
    6. Targeted beneficiaries: Large anchor manufacturers and their supplier ecosystems, including contract manufacturers and component vendors.

    Government Initiatives for Electronics Manufacturing

    1. Semicon India Programme: Provides fiscal support for semiconductor fabrication units, display fabs, assembly and testing units and compound semiconductor facilities.
    2. PLI for Large Scale Electronics Manufacturing: Incentivises incremental sales of mobile phones and specified electronic components by large manufacturers.
    3. Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS): Offered capital expenditure support for the electronic component ecosystem.
    4. Modified Electronics Manufacturing Clusters Scheme (EMC 2.0): Funds common infrastructure and ready built factory sheds for electronics clusters.
    5. National Policy on Electronics, 2019: Sets the policy goal of positioning India as a global hub for electronics system design and manufacturing.
    6. Phased Manufacturing Programme: Uses a calibrated duty structure over time to move production from imported finished units to domestically made sub assemblies and components.
    7. Design Linked Incentive Scheme: Supports domestic companies in integrated circuit and chipset design, targeting the intellectual property layer.

    Key Facts about Electronics Manufacturing in India

    1. Nodal ministry: Ministry of Electronics and Information Technology.
    2. Second largest producer: India is the second largest producer of mobile phones globally by volume.
    3. Component share: Components and sub assemblies account for the largest share of the electronics import bill.
    4. First semiconductor unit: India’s first commercial semiconductor assembly and packaging units were approved under the Semicon India Programme in Gujarat and Assam.
    5. Cluster geography: Tamil Nadu, Uttar Pradesh, Karnataka and Andhra Pradesh host the largest concentration of electronics manufacturing capacity.
    6. Export status: Electronic goods have entered India’s top three export categories by value.

    Challenges in India’s Electronics Manufacturing Sector

    1. Component import dependence: Domestic value addition stays low when only final assembly happens in India. e.g. a smartphone assembled in India still uses an imported display, camera module and battery cell.
    2. Scale disadvantage against incumbents: Global component makers operate at volumes that Indian entrants cannot match on cost. e.g. Vietnam attracted large display and camera module plants before India entered the segment.
    3. Logistics and clearance cost: Electronics inputs move by air on tight cycles and are sensitive to port and customs delay. e.g. component consignments cleared through Chennai and Bengaluru air cargo face longer dwell time than Shenzhen or Ho Chi Minh City.
    4. Power quality and reliability: Component fabrication needs uninterrupted, clean power, and outages destroy an entire process batch. e.g. semiconductor and laminate lines require captive backup because a momentary voltage dip scraps work in progress.
    5. Shortage of process engineering talent: India trains software engineers in far greater numbers than materials and process engineers. e.g. semiconductor fabrication units in Gujarat have had to plan overseas training programmes for their first operating cohorts.
    6. Geopolitical supply concentration: Critical inputs and processing capacity sit in a small number of countries. e.g. China processes the overwhelming majority of the world’s rare earths and battery grade graphite.
    7. Incentive dependence: Competitiveness that rests on fiscal support weakens when the incentive window closes. e.g. several PLI beneficiaries in other sectors missed year one thresholds and forfeited that year’s incentive.

    Way Forward

    1. Move incentives down the value chain: Extend support to materials such as electronic grade chemicals, substrates and battery grade active materials, so localisation does not stop at the assembled component.
    2. Link disbursal partly to employment: Introduce a jobs component in the incentive formula so the employment target does not remain an aspiration detached from payout.
    3. Build testing and certification capacity: Fund accredited reliability and qualification laboratories so Indian components clear automotive, defence and telecom grade approvals domestically.
    4. Secure critical inputs through overseas assets: Use long term offtake agreements and equity in rare earth and graphite assets abroad to insulate magnet and cell manufacturing.
    5. Create a components skilling pipeline: Run dedicated process technician programmes with industrial training institutes located inside electronics clusters.
    6. Compress project timelines: Provide single window land, power and environmental clearance for approved ECMS projects to convert approvals into operating plants faster.
    7. Support design ownership: Expand the Design Linked Incentive Scheme so domestic firms hold intellectual property rather than only manufacturing capacity.

    Matching Previous Year Question

    “[2025, GS3, 15 marks] Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?”

  • Gaganyaan vs ISS: India’s Mission Is About Proving Indigenous Technology

    Why in the News

    The Indian astronaut who flew on Axiom Mission 4 has described Gaganyaan as a prototype mission built to prove technology, test systems and communicate with the ground, unlike the International Space Station flight, which was an established mission of experiments and return. The distinction separates having flown from owning the capability to fly. Axiom Space owned no hardware, while the Indian Space Research Organisation (ISRO) is building the capsule and the spacecraft in house.

    What is the Gaganyaan mission?

    1. About: It is India’s first human spaceflight programme, designed to carry a crew to low Earth orbit in an indigenously built crew module and return them safely.
    2. Nature of the mission: It is a prototype mission, focused on proving the technology, testing out systems and communicating with the ground, not on a defined experiment schedule.
    3. In house hardware: ISRO is building the capsule and the spacecraft in which the astronauts will travel, and launching Indian astronauts on an Indian vehicle.
    4. Engineering intensity: The work is described as heavy engineering, with robust processes and review mechanisms being set up around it.
    5. Status: The programme is scheduled over the next year or two, and preparation is currently ground based.

    What was Axiom Mission 4?

    1. About: It was a commercial crewed mission to the International Space Station, on which an Indian became only the second Indian in space and the first in over four decades.
    2. Duration: The Indian crew member spent 20 days at the International Space Station after a launch on 25 June.

    What is microgravity?

    1. About: It is the condition of near weightlessness experienced in orbit, where objects and fluids behave differently from how they behave on the ground.
    2. Why it matters for training: Microgravity cannot be simulated on the ground, so the environment is encountered fully only in flight.

    Why is the Axiom model not comparable to the Gaganyaan model?

    1. Axiom owned no hardware: Axiom Space is a private company coordinating missions to space and did not own any of the hardware used.
    2. Station ownership: The International Space Station is owned by NASA and its international partners, not by the mission coordinator.
    3. Vehicle ownership: The crew flew in SpaceX’s Crew Dragon vehicle, launched by the Falcon 9 rocket, both owned by SpaceX.
    4. ISRO’s position: India is attempting to make the hardware in house and launch its own astronauts in its own capsule, which is a different nature of work.
    5. Consequence: The two programmes cannot be compared, because one buys access to space and the other builds the means of access.

    What did India actually gain from the Axiom flight?

    1. Stated objective: The primary objective of the mission was to learn as much as possible and use that experience to enable India’s own mission.
    2. Observation team: An ISRO team was present alongside the astronaut to observe how operations were run.
    3. End to end exposure: The team witnessed the end to end execution of an entire crewed mission, from preparation to recovery.
    4. Ecosystem lesson: ISRO has launched many successful missions, but human spaceflight requires a different ecosystem, and the scale of operations was the biggest learning.
    5. Disciplines identified: The flight showed the range of disciplines India must address before sending people to space and bringing them back.

    Back2Basics: International Space Station

    1. What it is: The largest crewed structure in low Earth orbit, operated as a multinational research laboratory.
    2. First module: The Zarya module was launched in 1998, with continuous human occupation since November 2000.
    3. Partners: Five participating space agencies, NASA, Roscosmos, the European Space Agency, the Japan Aerospace Exploration Agency and the Canadian Space Agency.
    4. Orbit: It orbits at roughly 400 km altitude, completing an orbit in about 90 minutes and around 16 orbits a day.
    5. Function: It hosts microgravity research in biology, human physiology, materials science and Earth observation.
    6. Retirement: The station is planned for controlled deorbit around 2030 to 2031, which is driving commercial station projects.

    Government Initiatives

    1. Indian Space Policy, 2023: Opens the space sector to non government entities across the value chain and redefines the roles of ISRO, IN-SPACe and NSIL.
    2. IN-SPACe: The Indian National Space Promotion and Authorisation Centre, a single window autonomous body that authorises and promotes private space activity.
    3. NewSpace India Limited (NSIL): The commercial arm of the Department of Space, handling technology transfer and demand driven satellite and launch missions.
    4. Gaganyaan Programme: Sanctioned in 2018 and later expanded in scope and outlay to include the first module of the Bharatiya Antariksh Station.
    5. Foreign Direct Investment reform, 2024: Liberalised FDI limits for satellite manufacturing, launch vehicles and ground segment components.
    6. SpaDeX: The Space Docking Experiment, which demonstrated autonomous docking of two Indian satellites, a prerequisite technology for a space station and crewed missions.

    Key Facts about India in Space

    1. First Indian in space: Flew aboard the Soviet Soyuz T-11 mission in 1984, spending about eight days aboard the Salyut 7 station.
    2. Second Indian in space: Flew on Axiom Mission 4 in 2025, over four decades after the first flight, spending 20 days at the International Space Station.
    3. ISRO: Established in 1969, headquartered in Bengaluru, functioning under the Department of Space.
    4. Chandrayaan 3: Made India the first country to soft land near the lunar south pole, in August 2023, with National Space Day observed on 23 August.
    5. Aditya L1: India’s first solar observatory, placed in a halo orbit around the Sun Earth Lagrange point L1.
    6. Private launch: India’s first privately built rocket flew a suborbital mission in November 2022, marking the entry of startups into launch services.

    “[2025] Consider the following space missions:
    I. Axiom-4
    II. SpaDeX
    III. Gaganyaan
    How many of the space missions given above encourage and support microgravity research?
    (a) Only one
    (b) Only two
    (c) All the three
    (d) None

  • Odisha start-up flight-tests an autonomous in-space pharmaceutical manufacturing payload

    Why in the News

    A Bhubaneswar-based start-up, Serendipity Space, has flight-tested a prototype satellite carrying Alchemy, an autonomous pharmaceutical manufacturing payload, using a high-altitude balloon at the TIFR facility in Hyderabad. The technology aims to manufacture pharmaceutical products in microgravity without human supervision.

    How does it work?

    1. Microgravity: Near-weightlessness reduces sedimentation, buoyancy and convection.
    2. Crystal growth: Crystals can form differently and potentially with greater uniformity than on Earth.
    3. Autonomous processing: The satellite carries reagents and hardware and executes the manufacturing sequence independently.
    4. Recovery: Processed material is returned to Earth using a re-entry system and heatshield.

    What is LEO?

    • Low Earth Orbit (LEO) extends roughly up to 2,000 km above Earth.
    • The proposed system is intended for an altitude of about 400 to 500 km.

    What did the balloon test demonstrate?

    • Tested the satellite prototype under near-space conditions.
    • Validated avionics, heatshield and Alchemy payload.
    • Demonstrated autonomous operation.
    • Tested controlled return to Earth.
    • Serves as a relatively low-cost step before orbital deployment.

    How is it different from earlier space-based drug research?

    • Earlier experiments on platforms such as the ISS generally required crew involvement. The distinguishing feature here is a dedicated free-flying satellite designed for autonomous pharmaceutical manufacturing.
    • International examples include Varda Space Industries, Redwire and experiments aboard China’s Tiangong station.

    Why is it important for India?

    • Promotes private-sector space innovation.
    • Expands India’s space ecosystem beyond Bengaluru to cities such as Bhubaneswar, Pune and Ahmedabad.
    • Creates opportunities in pharma, biotechnology, space engineering and advanced manufacturing.
    • Demonstrates potential convergence of space technology + biotechnology + pharmaceuticals.

    Laws, Treaties and Rules Governing Space Activities

    1. Outer Space Treaty, 1967: Bars national appropriation of outer space and makes States internationally responsible for national activities, including those of private entities.
    2. Liability Convention, 1972: Makes the launching State absolutely liable for damage caused on the surface of the Earth or to aircraft in flight.
    3. Registration Convention, 1975: Requires launching States to maintain a registry of objects launched into outer space and to furnish details to the United Nations.
    4. Rescue Agreement, 1968: Obliges States to assist astronauts in distress and to return space objects to the launching State.
    5. Indian Space Policy, 2023: Defines the roles of ISRO, IN-SPACe and NSIL and permits private entities across the full value chain from launch to satellite operations.
    6. Space Activities Bill, 2017: Proposed a licensing and liability framework for private Indian space activity but lapsed without enactment.
    7. Norms, Guidelines and Procedures issued by IN-SPACe: Prescribe the authorisation route, safety requirements and liability sharing for non governmental entities operating from India.
    8. Telecommunications Act, 2023 and allied spectrum rules: Govern satellite spectrum assignment and the licensing of satellite based communication services.

    Indian National Space Promotion and Authorisation Centre

    1. What it is: IN-SPACe is the single window autonomous agency that authorises, promotes and supervises space activities by non governmental entities in India.
    2. Year established: Announced in 2020 as part of the space sector reforms and made operational in 2022.
    3. Parent department: It functions as an autonomous body under the Department of Space.
    4. Headquarters: Ahmedabad, Gujarat.
    5. Jurisdiction: It authorises private launches, satellite establishment and operation, ground station creation and the dissemination of space based data.
    6. Enabling role: It permits private entities to use ISRO facilities and to access ISRO technologies through transfer agreements.
    7. Distinction from NSIL: IN-SPACe regulates and promotes, while NewSpace India Limited is the commercial arm that contracts launches and technology transfers.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:
    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.
    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.
    3. Skyroot Aerospace has developed liquid fuel for GSLV.
    (a) 1 only
    (b) 2 and 3 only
    (c) 1 and 2 only
    (d) 1, 2 and 3

  • India’s first privately-built FFSC rocket engine signals a new dawn in space flight

    Why in the News

    Bengaluru-based Astrobase Space Technologies unveiled EVEREST, India’s first privately built 800 kN Full-Flow Staged Combustion (FFSC) LOX-Methane engine on 7 August 2026. India is now the fourth country after Russia, the US and China with FFSC technology.

    What is an FFSC Engine?

    1. About: An advanced liquid rocket engine architecture offering high thrust and efficiency.
    2. Full-flow: Fuel and oxidiser pass through separate pre-burners, driving turbopumps before entering the main chamber.
    3. Advantage: Almost all propellant contributes to thrust, improving efficiency and reusability.

    What is LOX-Methane?

    • LOX: Liquid Oxygen as oxidiser.
    • Methane: Fuel that burns relatively cleanly, reducing engine deposits and aiding faster refurbishment and turnaround.

    What is IN-SPACe?

    • Indian National Space Promotion and Authorisation Centre, an autonomous agency under the Department of Space.
    • Acts as a single-window agency to promote and authorise private space activities.
    • Astrobase received support through its Technology Adoption Fund.

    Why is EVEREST Significant?

    1. Technology: Makes India the 4th FFSC-capable nation.
    2. Reusability: Suitable for reusable launch vehicles with precise throttle control.
    3. Capacity: Could enable reusable systems carrying up to 30 tonnes to LEO.
    4. Manufacturing: Uses advanced manufacturing, including large-scale 3D printing.
    5. Timeline: Development began in 2024; integrated hot-fire tests are planned at Anantapur, with first flight targeted for December 2028.

    Global Comparison

    • Russia: Pioneer in FFSC technology.
    • USA: SpaceX’s Raptor is the only operational FFSC engine.
    • China: LandSpace has developed a commercial high-thrust FFSC engine.
    • India: EVEREST marks its entry into FFSC technology.

    Private Space Sector in India

    • 2020 reforms: Opened space activities to private players through IN-SPACe.
    • Indian Space Policy 2023: Enables greater private participation across the space value chain.
    • NSIL: Commercial arm of the Department of Space.
    • Firms such as Skyroot Aerospace and Agnikul Cosmos are developing indigenous launch technologies.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3

  • India’s push for sovereign artificial intelligence

    Why in the News?

    India’s drive for “sovereign AI” is being spotlighted through indigenous foundation models built for Indian languages and needs. The aim is to reduce dependence on foreign artificial intelligence systems by building domestic models and compute infrastructure, treating this as a matter of technological sovereignty.

    What is sovereign AI?

    1. Meaning: Sovereign artificial intelligence (AI) is the capacity to build and control foundational AI models, data and compute within the country.
    2. Rationale: It reduces reliance on foreign-owned models and infrastructure for strategically important services.
    3. Language focus: For India, it centres on models that work across Indian languages rather than only English.

    What is a foundation model?

    1. Meaning: A foundation model is a large AI model trained on vast data that can be adapted to many downstream tasks.
    2. Indian effort: Indigenous efforts aim to build a trillion-parameter foundation model tuned to Indian contexts.
    3. Language coverage: Related work, such as AI4Bharat, targets speech and language processing across the 22 scheduled Indian languages.

    Why does sovereign AI matter?

    1. Strategic autonomy: Controlling core AI capability avoids dependence on foreign systems for critical applications.
    2. Linguistic inclusion: Models covering Indian languages extend AI services to non-English speakers.
    3. Compute base: Domestic compute infrastructure is the physical foundation on which sovereign AI depends.

    Conclusion

    Sovereign AI reframes artificial intelligence as strategic infrastructure India must control, not merely import. Indigenous foundation models and coverage of the 22 scheduled languages are its concrete goals. Domestic compute capacity is the precondition that determines whether the ambition is realised.

    PYQ Relevance

    [UPSC 2020] With the present state of development, Artificial Intelligence can effectively do which of the following?

    1. Bring down electricity consumption in industrial units 2. Create meaningful short stories and songs 3. Disease diagnosis 4. Text-to-Speech Conversion 5. Wireless transmission of electrical energy

    Select the correct answer using the code given below: (a) 1, 2, 3 and 5 only (b) 1, 3 and 4 only (c) 2, 4 and 5 only (d) 1, 2, 3, 4 and 5

    Answer: (b)

  • PM Modi inaugurates semiconductor project and other projects in Andhra Pradesh

    Why in the News?

    The Prime Minister inaugurated and laid foundation stones for ₹18,000 crore worth of projects in Andhra Pradesh, including a semiconductor project at Tarluvada (Visakhapatnam), to strengthen India’s semiconductor ecosystem and reduce import dependence.

    Key Components

    • Semiconductor Project (Tarluvada): Boost domestic chip manufacturing and employment.
    • National Highways: Four-lane NH-365BG sections and Tadipatri Bypass (NH-67).
    • Power Transmission: Integrate renewable energy from Kurnool and Ananthapuram into the National Grid.
    • Alluri Sitarama Raju International Airport: Improve connectivity for North Andhra, South Odisha and Chhattisgarh.

    Significance

    • Reduces dependence on imported semiconductors.
    • Diversifies India’s semiconductor ecosystem beyond Gujarat.
    • Supports Make in India, Digital India and electronics manufacturing.
    • Strengthens supply chain resilience and national technological security.
    • Renewable energy integration ensures reliable power for semiconductor fabrication.

    Challenges

    • Very high capital investment.
    • Limited domestic ecosystem for semiconductor equipment, chemicals and skilled manpower.
    • Long gestation period before commercial production.
    • Requirement of uninterrupted power and ultra-pure water.

    Semiconductor Value Chain

    • Chip Design
    • Wafer Fabrication (Fab)
    • Assembly, Packaging and Testing (OSAT/ATMP)
    • Integration into electronic products

    India’s Semiconductor Ecosystem

    • Dholera (Gujarat): India’s first commercial semiconductor fab.
    • Morigaon (Assam): Tata Semiconductor Assembly and Test (TSAT) facility.
    • Sanand (Gujarat): OSAT facility by CG Power-Renesas partnership.
    • Tarluvada (Andhra Pradesh): Expands the semiconductor ecosystem to southern India.
      • Importance of Semiconductors: Smartphones, Artificial Intelligence, Electric Vehicles, Defence systems, Telecommunications (5G/6G), Medical devices, and Consumer electronics

    India Semiconductor Mission (ISM)

    • Launched in 2021 under MeitY.
    • Financial outlay of ₹76,000 crore.
    • Supports: Semiconductor Fabs, Display Fabs, Compound Semiconductor & Silicon Photonics, Sensors, and OSAT/ATMP facilities
    • Objective: Develop an end-to-end semiconductor manufacturing ecosystem in India.

    Note:

    • OSAT: Outsourced Semiconductor Assembly and Test; packages and tests semiconductor chips.
    • ATMP: Assembly, Testing, Marking and Packaging of semiconductor devices.
    • Fab: Manufacturing facility where silicon wafers are processed into integrated circuits.

    [2025, GS3, 15.0 marks] 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.”

    [2026] Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?

    [A] CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics: Gujarat

    [B] Tata Semiconductor Assembly and Test Pvt. Ltd: Assam

    [C] HCL-Foxconn Joint Venture India Chip Ltd: Madhya Pradesh

    [D] SicSem Pvt. Ltd: Odisha

  • India’s first private orbital launch marks a structural milestone

    Why in the News?

    Skyroot Aerospace’s Vikram-1 successfully reached orbit on 18 July 2026, becoming the first privately developed Indian rocket to achieve orbital launch. India is now among the few countries where a private company has independently built and launched an orbital rocket.

    What is Vikram-1?

    • Vikram-1 is Skyroot Aerospace’s orbital launch vehicle.
    • Built using carbon composite structures with solid and liquid propulsion stages.
    • Developed by Skyroot Aerospace, a Hyderabad-based startup founded in 2018 by former ISRO scientists.
    • Follows the successful launch of Vikram-S under Mission Prarambh (2022).

    Key Highlights

    • First privately built Indian rocket to reach orbit.
    • Demonstrates India’s growing commercial space capabilities.
    • Marks a major milestone after the 2020 space sector reforms.

    India’s Private Space Ecosystem

    • 285 space startups, with 274 active.
    • 72 startups have received equity funding.
    • Total funding reached $871 million across 241 funding rounds (July 2026).
    • Annual funding increased from $43 million (2021) to $200 million (2025).

    What is IN-SPACe?

    • Indian National Space Promotion and Authorisation Centre (IN-SPACe).
    • Established in 2020 under the Department of Space.
    • Acts as the single-window agency for authorising and promoting private participation in the space sector.
    • Facilitates private access to ISRO’s testing and launch facilities.

    Significance

    • Strengthens India’s commercial space industry.
    • Reduces dependence on government-led launch services.
    • Encourages innovation, investment, and private participation.
    • Enhances India’s competitiveness in the global launch market.

    Challenges

    • High capital requirement for launch vehicle development.
    • Need for a regular commercial launch cadence.
    • Dependence on imported critical components.
    • Evolving insurance and liability framework.
    • Competition from low-cost global launch providers like SpaceX.

    Skyroot Aerospace

    • Headquarters: Hyderabad, Founded: 2018, Founders: Former ISRO scientists
    • First Rocket: Vikram-S (Mission Prarambh, 2022)
    • Naming: Vikram rockets are named after Dr. Vikram Sarabhai.
    • Developed the Dhawan-II, India’s first privately developed 3D-printed cryogenic engine.

    2020 Space Sector Reforms

    • Opened the space sector to private players.
    • Created IN-SPACe.
    • Enabled private firms to build satellites, launch vehicles, and offer launch services.
    • Encouraged technology transfer and infrastructure sharing with ISRO.

    Key Space Institutions

    • ISRO: National space agency.
    • IN-SPACe: Promotes and authorises private participation.
    • NSIL (NewSpace India Limited): Commercial arm of ISRO for technology transfer and commercialisation.

    [2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3

  • PLI schemes drive ₹96,000 crore investment

    Why in the News

    The production-linked incentive scheme for large-scale electronics manufacturing (PLI-LSEM) has catalysed Rs 96,000 crore of investment in India’s mobile manufacturing ecosystem, Parliament was informed on 29 July 2026. Electronics production crossed Rs 3.11 lakh crore in FY 2025-26, and the Semicon India Programme has moved from policy announcement to actual commercial output for the first time.

    What is the PLI Scheme for Large-Scale Electronics Manufacturing (PLI-LSEM)?

    1. Launch and purpose: PLI-LSEM was launched in 2020 to boost indigenous production of mobile phones and reduce import dependence.
    2. Mechanism: The scheme pays eligible manufacturers a percentage incentive on incremental sales of India-made goods over a base year, tied to investment and production commitments.
    3. Scope expansion: The government followed it with PLI Scheme 2.0 for IT Hardware in 2023, covering laptops, tablets and servers.
    4. Semicon India Programme: A separate scheme approves fabrication and packaging projects to build domestic semiconductor manufacturing capacity.

    What does the data show about electronics manufacturing growth?

    1. Investment catalysed: PLI-LSEM has catalysed approximately Rs 96,000 crore of investment in the mobile manufacturing ecosystem.
    2. Production growth: Electronics production rose from Rs 1.32 lakh crore in FY 2024-25 to Rs 3.11 lakh crore in FY 2025-26, a year-on-year growth of 15.8%.
    3. Domestic value addition: An external evaluation study found domestic value addition (DVA) under PLI-LSEM increased to 23% in FY 2023-24.
    4. Export ranking: Smartphones, absent from India’s top 100 exported commodities in 2014, became India’s top exported individual commodity in FY 2025-26, surpassing petroleum and gems and jewellery.
    5. IT Hardware scheme: PLI Scheme 2.0 for IT Hardware has generated cumulative production of Rs 24,385.89 crore, cumulative investment of Rs 1,056.36 crore, and 5,216 direct jobs.

    What is the state of the Semicon India Programme?

    1. Projects approved: 12 projects have been approved under the Semicon India Programme, entailing a committed investment of Rs 1.64 lakh crore.
    2. Commercial production: 3 of the 12 approved projects have already started commercial production.
    3. Private follow-on investment: Semiconductor firm Marvell Technology has separately announced a $250 million investment in India, citing the country’s growing role as an engineering hub.

    Challenges to India’s PLI and semiconductor manufacturing push

    1. Import dependence on components: India’s electronics assembly still relies heavily on imported chips and displays, keeping true domestic value addition below finished-goods value.
    2. Technology gap: India’s semiconductor fabrication projects remain at trailing-edge nodes, far behind the sub-10 nanometre technology used by global leaders such as Taiwan.
    3. Fiscal cost of incentives: The PLI outlay across sectors runs into tens of thousands of crores, raising questions about cost per job created against alternative uses of the same fiscal space.
    4. Sunset risk: PLI incentives are time-bound, and companies that scale up during the incentive period face uncertainty about competitiveness once the subsidy period ends.
    5. Tariff exposure: Sharp increases in United States tariffs on electronics exports could squeeze the margins that make India-based assembly viable for global companies.

    Conclusion

    The PLI-LSEM and Semicon India Programme disclosures show incentive-linked manufacturing has moved from policy design to measurable investment and production gains, with smartphones now India’s top exported commodity. The next milestone is whether the remaining nine approved semiconductor projects reach commercial production and whether domestic value addition rises beyond assembly-level gains.

    Back2Basics:

    Production-Linked Incentive (PLI) Scheme

    1. Launch: The PLI framework was launched in 2020 across multiple sectors to boost domestic manufacturing and cut import dependence.
    2. Mechanism: The government pays selected manufacturers a financial incentive, typically 4-6% of incremental sales over a base year, contingent on investment and production commitments.
    3. Nodal ministry: The Ministry of Electronics and Information Technology administers PLI-LSEM and IT Hardware; other sectors are administered by their respective ministries.
    4. Sectoral spread: PLI schemes cover 14 sectors including mobile manufacturing, pharmaceuticals, telecom equipment, textiles, food processing and semiconductors.

    The Semicon India Programme

    1. It is a national initiative backed by financial outlays and implemented through the India Semiconductor Mission to build a complete domestic semiconductor and display manufacturing ecosystem

    Financial Outlay and Phases

    1. Phase 1 (Semicon 1.0): Approved in December 2021 with an initial fiscal outlay of ₹76,000 crore to incentivize silicon fabs, display units, and packaging.
    2. Phase 2 (Semicon 2.0): Approved in July 2026 with an expanded outlay of ₹1,27,500 crore to widen the scope of domestic manufacturing and supply chains.

    Core Focus Pillars

    1. Semiconductor Fabs: Fiscal backing covering up to 50% of project costs for silicon CMOS fabrication units.
    2. ATMP/OSAT: Support for assembly, testing, marking, and packaging facilities.
    3. Design & R&D: Incentives for chip design infrastructure, raw materials, equipment, and talent development.

    PYQ Relevance

    [UPSC 2025] Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?
    Linkage: The PYQ examines government policies to promote manufacturing, industrial growth and global competitiveness. The article evaluates how PLI-LSEM and the Semicon India Programme are strengthening electronics manufacturing, exports and domestic value addition while highlighting the remaining challenges in semiconductor self-reliance.