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Type: Indigenous / Made in India

  • 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.