MAINS Current Affairs includes 12 Years of Make in India & Space Sector Reforms to Make India Self-Reliant and Technologically Stronger

Economy

1. 12 Years of Make in India

Context: Make in India completed 12 years in 2026, marking a significant period of expansion in India’s manufacturing capabilities.

• During this period, India’s industrial base has expanded across diverse sectors including electronics, automobiles, pharmaceuticals, steel, railways, defence and strategic technologies.

About Make in India

• Make in India was launched on 25 September 2014 with the objective of transforming India into a global hub for manufacturing, design and innovation.
• Its broad strategy focused on:
  • Facilitating investment;
  • Promoting innovation;
  • Improving infrastructure; and
  • Simplifying government processes.
• The initiative was guided by the principle of ‘Minimum Government, Maximum Governance’.
• Over time, the programme evolved into Make in India 2.0, covering 27 sectors, comprising:
  • 15 manufacturing sectors; and
  • 12 services sectors.

Achievements of Make in India

1. Growth in Manufacturing

• Manufacturing Gross Value Added (GVA) recorded a CAGR of 88% during 2022–23 to 2025–26, at constant prices.
• Manufacturing Index of Industrial Production (IIP) increased by 7% during April–July 2026 compared with the corresponding period of 2025.
• Electronics production increased almost seven-fold, rising from approximately ₹1.9 lakh crore in 2014–15 to ₹13.11 lakh crore in 2025–26.
• Vehicle production reached 03 million units in 2024–25, around 33% higher than in 2014–15.
• Crude steel production increased from 7 million tonnes to 170 million tonnes.
• Indigenous defence production expanded from ₹46,429 crore to a record ₹1.78 lakh crore in 2025–26.
• India’s pharmaceutical industry is currently the third-largest in the world by volume and 11th-largest by value, with sales of approximately ₹5,08,630 crore in 2025–26.

2. Expansion of Domestic Capabilities

• India has developed indigenous VIKRAM3201 and KALPANA3201 microprocessors for space applications.
• Solar module manufacturing capacity expanded from 3 GW in 2014 to 192 GW by June 2026.
• Domestic capabilities have also developed in strategically important areas such as:
  • EV drive systems;
  • Aircraft structures;
  • Railway components; and
  • Nuclear components.
• Efforts to build capabilities in critical technologies include the development of a pilot plant for Nd-Fe-B rare-earth permanent magnets at ARCI, Hyderabad.

3. Capital Goods and Machinery

• Manufacturing of capital goods and heavy-engineering equipment nearly quadrupled, increasing from ₹2.87 lakh crore in 2019–20 to ₹5.70 lakh crore in 2024–25.
• Major increases were recorded in:
  • Earthmoving and mining machinery — 160.3%;
  • Machine tools — 132.2%; and
  • Heavy electrical equipment — 103.5%.

4. Reforms and Investment

Make in India has been supported by several institutional reforms and investment-facilitation measures:

• FDI: Cumulative foreign direct investment reached approximately $843 billion during 2014–15 to 2025–26.
• National Single Window System (NSWS): Covers more than 327 Central Government approvals and 3,452 State-level approvals.
• India Industrial Land Bank: Maps around 4,220 industrial parks.
• PM GatiShakti: Its Network Planning Group has evaluated 396 projects worth ₹18.66 lakh crore.
• Production Linked Incentive (PLI) Schemes: Across 14 sectors, PLI initiatives supported production and sales worth approximately ₹23.8 lakh crore and generated around 6 lakh employment opportunities.
• Startup India: More than 54 lakh startups had received recognition.

New Initiatives Launched

• The next phase of India’s manufacturing strategy is increasingly focused on strategic and technology-intensive sectors.

• These measures indicate a gradual shift towards strengthening India’s capabilities in semiconductors, critical minerals, specialty materials, chemicals and other strategic manufacturing segments.

Related Issues & Concerns

1. Production versus Value Addition

• A rise in production volumes does not necessarily result in:
  • Greater domestic value addition;
  • Large-scale employment; or
  • Deeper integration into global value chains.
• India therefore needs to move beyond assembly and strengthen capabilities across the entire production chain.

2. MSME Competitiveness

• MSMEs continue to face challenges relating to:
  • Access to technology;
  • Finance;
  • Skills;
  • Productivity; and
  • Integration with large domestic and global manufacturers.

3. Skill and Technology Gaps

• Advanced manufacturing requires specialised capabilities in areas such as semiconductors, EVs, aerospace, biotechnology and precision engineering.
• Gaps in skilled manpower and technology acquisition can constrain India’s ability to move towards higher-value manufacturing.

4. Critical-Input Dependence

• Dependence on imported critical minerals, rare earths, components and specialised equipment creates vulnerabilities in domestic manufacturing supply chains.

5. Global Value-Chain Integration

• India still needs deeper integration into global manufacturing networks.
• The challenge is to ensure that manufacturing expansion becomes employment-intensive, innovation-driven and export-oriented, rather than remaining concentrated in selected sectors or limited stages of production.

Way Forward

India needs to move from assembly-led manufacturing towards deeper domestic value addition through the following measures:

• Integrate MSMEs into global value chains by strengthening their technology, finance, quality and productivity capabilities.
• Increase public and private R&D expenditure and deepen industry–academia collaboration.
• Develop specialised human resources for semiconductors, EVs, aerospace, biotechnology and advanced manufacturing.
• Build reliable domestic supply chains for critical minerals, rare earths and strategic components.
• Link industrial incentives more closely with measurable outcomes such as:
  • Productivity;
  • Exports;
  • Innovation; and
  • Technology transfer.
• Improve logistics, industrial infrastructure and ease of doing business at State and local levels.

Conclusion

• After 12 years, the character of Make in India is evolving.
• The objective is increasingly shifting from simply “making more” to “making a greater share of the value chain in India.”
• The next phase will determine whether India’s expanding production capacity can translate into:
  • Technology leadership;
  • Productive and large-scale employment;
  • Resilient domestic supply chains;
  • Higher domestic value addition; and
  • Sustained participation in global manufacturing value chains.

Science and Technology

2. Space Sector Reforms to Make India Self-Reliant and Technologically Stronger

Context: India’s space sector has undergone significant reforms aimed at increasing private-sector participation, promoting indigenous innovation and strengthening technological self-reliance.

• These reforms have gradually transformed the sector into a growing public–private ecosystem capable of developing globally competitive space technologies.

Major Reforms in the Space Sector of India

1. Establishment of IN-SPACe — 2020

• The Indian National Space Promotion and Authorisation Centre (IN-SPACe) was established in 2020.
• It functions as a single-window regulator and facilitator for private entities seeking to undertake space-related activities.
• It promotes and authorises participation of non-governmental entities (NGEs) across the space sector.

2. Corporatisation through NewSpace India Limited — 2019

• NewSpace India Limited (NSIL) was established in 2019 as the commercial arm of ISRO.
• Its functions include:
  • Transferring space technologies to industry;
  • Facilitating industrial production of satellites and launch vehicles;
  • Supporting commercialisation of India’s space capabilities; and
  • Providing commercial satellite-related services.

3. Schemes to Promote Private-Sector Participation

• IN-SPACe has introduced several mechanisms to encourage private participation, including:
  • Seed Fund Scheme;
  • Pricing Support Policy;
  • Mentorship Support;
  • Design Lab for NGEs;
  • Skill Development in the Space Sector;
• Support for utilisation of ISRO facilities; and
• Technology transfer to non-governmental entities.
• A ₹1,000 crore Venture Capital Fund under IN-SPACe seeks to accelerate private investment and participation in the space sector.
• IN-SPACe has also introduced the ₹500 crore Technology Adoption Fund (TAF) to support adoption and commercialisation of space technologies.

4. Liberalised FDI Policy for Space

• India’s revised FDI framework permits:
  • Up to 74% automatic FDI in satellite manufacturing and satellite operations;
  • Up to 49% automatic FDI in launch vehicles and spaceports; and
  • Up to 100% automatic FDI in manufacturing satellite components and subsystems.
• The objective is to attract foreign capital, technology and global expertise while expanding India’s domestic space capabilities.

5. SpaceTech Innovation Network (SpIN)

• SpIN is a public–private collaboration platform designed to support start-ups and SMEs in the space sector.
• It seeks to connect innovative enterprises with opportunities for technological development, collaboration and commercialisation.

India’s Emerging Private Space Ecosystem

• India’s space economy is currently estimated at approximately $8.4 billion, accounting for around 2–3% of the global space economy.
• It is projected to reach approximately $40–45 billion by 2030.
• The Indian Space Policy 2023 provided a broader framework for increasing private participation across space-related activities.

Emerging Private Space Companies

• Several Indian companies have emerged as important players in the new space ecosystem, including:
  • Pixxel;
  • Dhruva Space;
  • Skyroot Aerospace;
  • Agnikul Cosmos; and
  • Bellatrix Aerospace.

Skyroot Aerospace

• Skyroot Aerospace became India’s first space-tech unicorn.
• Its Vikram-1 became the first privately developed Indian orbital-class rocket to successfully place a payload into Low Earth Orbit (LEO).

Pixxel Space

• Pixxel Space is developing hyperspectral imaging satellites.
• These satellites provide Earth-observation data to commercial customers and government agencies in India, Europe and the United States.

Self-Reliant Space Transportation

• India has operationalised four indigenous launch vehicles:

1. Polar Satellite Launch Vehicle (PSLV)
2. Geosynchronous Satellite Launch Vehicle (GSLV)
3. Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk III)
4. Small Satellite Launch Vehicle (SSLV)

• These launch systems support missions involving:
  • Earth observation;
  • Communication;
  • Navigation;
  • Space science;
  • Space exploration; and
  • Commercial launches for domestic and international customers.
• Between 2023 and 2026, India successfully completed 12 launch-vehicle missions, carrying 11 national satellites and 9 satellites for international customers.

Major Space Achievements of India

1. Chandrayaan-3 — 2023

• Chandrayaan-3 made India the first country to soft-land near the Moon’s south pole.
• India became the fourth country in the world to achieve a soft landing on the Moon.

2. Mars Orbiter Mission — Mangalyaan

• India’s Mars Orbiter Mission entered Martian orbit in 2014.
• It represented India’s first interplanetary mission.

3. AstroSat

• AstroSat is India’s first dedicated astronomy mission.
• It is designed to study celestial sources simultaneously across X-ray, optical and ultraviolet wavelengths.

4. Aditya-L1 — 2023

• Aditya-L1 is India’s first space-based mission dedicated to studying the Sun.
• It is positioned approximately 5 million km from Earth near the Sun–Earth L1 point.

5. Space Docking Experiment — SPADEX 2025

• SPADEX demonstrated India’s capability for autonomous space docking and undocking.
• With this achievement, India became the fourth country to demonstrate autonomous space docking capability.

6. Navigation with Indian Constellation — NavIC

• NavIC provides indigenous positioning, navigation and timing services across India and up to approximately 1,500 km beyond India’s boundary.
• It strengthens India’s strategic autonomy in satellite-based navigation.

What are the Challenges?

1. Dependence on Critical Technologies

• India continues to face technological gaps in areas such as:
  • Advanced propulsion systems;
  • High-end sensors;
  • Space-grade electronics;
  • Specialised materials; and
  • Semiconductor components.
• Dependence on imported critical technologies can affect both strategic autonomy and supply-chain resilience.

2. Infrastructure Constraints

• Limited availability of specialised:
  • Testing facilities;
  • Launch infrastructure; and
  • Space-grade manufacturing and research facilities

can increase the time and cost of developing and commercialising technologies.

3. Global Competition

• Indian space companies compete with established international firms that often possess:

• • Greater access to capital;

• Mature supply chains;
• Larger technological ecosystems; and
• Extensive commercial experience.

4. Limited Private-Sector Scale

• Many Indian space start-ups remain at relatively early stages of development.
• Scaling from prototype demonstration to commercially viable, high-volume production remains a major challenge.

Way Ahead

• India’s space-sector reforms have gradually transformed space activities from a predominantly government-led domain into an expanding public–private ecosystem.
• The next stage should focus on:
  • Sustained investment in indigenous space technologies;
  • Strengthening private-sector innovation and commercialisation;
  • Developing a highly skilled space-sector workforce;
  • Improving access to specialised infrastructure and testing facilities;
  • Building resilient domestic supply chains for critical technologies; and
  • Maintaining an enabling and predictable regulatory environment.
• Such measures can help India develop a self-reliant, technologically advanced, globally competitive and sustainable space economy.

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