IndiaAI Mission and Emerging AI Ecosystem

Source: PIB

India is expanding its AI ecosystem through the IndiaAI Mission with over ₹10,300 crore outlay and 38,000 Graphics Processing Units (GPUs) deployed, strengthening indigenous computing infrastructure, startups, skilling, datasets and responsible AI governance.

What is the IndiaAI Mission?

• About: IndiaAI mission marks a defining step to position India as a global leader in Artificial Intelligence under the vision ‘Making AI in India and Making AI Work for India’.
• Implementation: It is implemented by IndiaAI, an independent business division under the Ministry of Electronics and Information Technology (MeitY), to build a comprehensive AI ecosystem that promotes innovation, supports startups, improves data access, and ensures the responsible use of AI for public good.
• Objectives: To build sovereign indigenous AI capability, promote inclusive and affordable access to AI, reduce dependence on foreign platforms and use AI as a growth engine for social and economic development.
• Key Components: Expansion of high-end computing through 38,000 GPUs, development of Indian foundation models like BharatGen AI, creation of national datasets via AIKosh, and support to AI startups and India-specific applications.

AI Ecosystem in India

• Scale & Employment: India’s technology and AI sector is expanding rapidly, with revenues projected to exceed USD 280 billion and employing over 6 million people.
  • India has secured the 3rd position globally in Artificial Intelligence competitiveness, according to a report by Stanford University’s 2025 Global AI Vibrancy Tool.
• Innovation Base: The country hosts 1,800+ Global Capability Centres, including 500+ AI-focused centres, alongside around 1.8 lakh startups.
• Startup Adoption: Nearly 89% of startups launched last year have integrated AI into their products or services.
• Enterprise Usage: India scores 2.45 out of 4 on the NASSCOM AI Adoption Index, with 87% of enterprises actively using AI solutions.
• Sectoral & Maturity Profile: AI adoption is strongest in industrial & automotive, retail, BFSI, and healthcare, contributing about 60% of AI value, while 26% of companies have achieved AI maturity at scale.

What are Major Government Initiatives Related to Artificial Intelligence in India?

• BharatGen AI: India’s first government-funded multimodal multilingual Large Language Model, supporting 22 Indian languages for text, speech and image-based AI applications.
• Sarvam AI (Sovereign LLM Ecosystem): An indigenous generative AI initiative for secure and efficient public service delivery, including smarter Aadhaar services.
• Centres of Excellence (CoEs) for AI: Research and innovation hubs in sectors like healthcare, agriculture, sustainable cities and education for developing scalable AI solutions.
• Bhashini: An AI-powered multilingual platform that provides translation and speech services in 20+ Indian languages, enabling citizens to access digital public services irrespective of language or literacy barriers.
• AI Competency Framework: A globally benchmarked capacity-building programme that equips government officials with essential AI skills for effective policymaking and future-ready governance.
• India AI Impact Summit 2026: India will host the Summit in February 2026 to showcase national AI capabilities and promote innovation. Key flagship initiatives include:
  • AI Pitch Fest (UDAAN): Global platform for AI startups to pitch innovations with special focus on women-led enterprises and differently-abled changemakers.
  • Global Innovation Challenges: Open challenges for youth, women and other innovators to Promote AI-based solutions to real-world public sector problems across domains.
  • Research Symposium: International forum for leading AI researchers from India, Global South and world to enable presentation of research, exchange of methods and global collaborations.
  • AI Expo: Exhibition focused on ethical and responsible AI with participation of 300+ exhibitors from India and 30+ countries.

Frequently Asked Questions (FAQs)

1. Why are GPUs important under the mission?
Graphics Processing Units (GPUs) provide high computing power required to train AI models. India has onboarded 38,000 GPUs to offer affordable and accessible AI computing resources

2. How does the mission support AI startups?
Through the IndiaAI Startup Financing pillar, startups receive funding, mentorship and global expansion support (including Europe-focused programmes).

3. How does IndiaAI Mission promote skilling?
Under IndiaAI Future Skills, fellowships are provided to PhD, PG and UG students, and AI labs are set up in Tier-2 and Tier-3 cities.

4. What is Bhashini?
Bhashini is an AI-powered multilingual platform that provides translation and speech services to improve digital inclusion across Indian languages.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)

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

Ans: (b)

Year End Review-2025: Ministry of Petroleum & Natural Gas

For Prelims: Pradhan Mantri Ujjwala Yojana (PMUY), Electric Vehicles (EVs), Ethanol, Compressed Bio‑Gas (CBG), Sustainable Aviation Fuel (SAF), Hydrocarbon Exploration Licensing Policy (HELP), 2016, Strategic Petroleum Reserves (SPR), Trade Deficit, Inflation, Strait of Hormuz, Chabahar port, Critical Minerals, Lithium, International Energy Agency (IEA), National Green Hydrogen Mission, National Critical Minerals Mission (NCMM),Small Modular Reactors.                 

For Mains: Key achievements of the Ministry of Petroleum & Natural Gas in the year 2025, Challenges to achieving energy security for India and way forward.  

Source: PIB

Why in News?

In 2025, the Ministry of Petroleum & Natural Gas implemented a multi-pronged strategy to secure affordable, sustainable energy by expanding infrastructure, promoting cleaner fuels, and strengthening strategic reserves for energy security.

• Energy Security refers to the uninterrupted availability of energy sources at an affordable price for a nation, ensuring its economic stability, national security, and sustainable development.

Summary

• India in 2025 adopted a multi-dimensional energy strategy combining infrastructure expansion, cleaner fuels, and regulatory reforms.
• Despite diversification, high import dependence, geopolitical exposure, and critical mineral shortages remain major challenges.
• Long-term energy security requires domestic production, clean energy with storage, mineral self-reliance, and geostrategic diplomacy.

What are the Key Achievements of the Ministry of Petroleum & Natural Gas in the Year 2025?

• Clean Cooking Access: Pradhan Mantri Ujjwala Yojana (PMUY) reached ~10.35 crore beneficiaries; 25 lakh new connections approved for FY 2025‑26 while simplified ‘Deprivation Declaration’ eased enrolment.
  • Rs 300/cylinder subsidy for PMUY beneficiaries boosted average refill consumption to ~4.85 per annum in FY 2025‑26, indicating sustained LPG adoption.
• Marketing Infrastructure Expansion: >90,000 retail outlets digitised; >8,400 CNG stations & ~1.57 crore PNG connections established; 25,429 km gas pipeline operational (another 10,459 km under execution).
• Clean Mobility & Fuels: >27,400 electric vehicles (EVs) charging stations set up; 4,000 Energy Stations planned as multi‑fuel hubs (1,064 already operational).
• Gas Grid & Tariff Reform: Unified Pipeline Tariff regime (One Nation, One Grid, One Tariff) covers ~90% of pipelines, reducing regional cost disparities.
• Biofuels & Sustainable Aviation Fuel (SAF): Ethanol blending reached 19.24% in Ethanol Supply Year (ESY) 2024‑25.
  • Compressed Bio‑Gas (CBG) blending mandated from FY 2025‑26; Sustainable Aviation Fuel (SAF) roadmap set with 1‑5% blending targets from 2027.
• Upstream Reforms: Oilfields (Regulation & Development) Amendment Act, 2025 and Petroleum & Natural Gas Rules, 2025 enacted. Under the Hydrocarbon Exploration Licensing Policy (HELP), 2016, blocks covering over 3.78 lakh sq km were awarded, attracting committed investments of about USD 4.36 billion.
• Strategic Reserves: Phase‑II of Strategic Petroleum Reserves (SPR) facilities advanced, bolstering energy security against supply shocks.
  • India’s SPR facilities are located at Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka), and Padur (Karnataka). Phase II includes a new facility at Chandikhol (Odisha) and an expansion at Padur.

What are the Principal Challenges in Achieving Energy Security for India?

• High and Rising Import Dependence: India imports around 85% of its crude oil and 50% of its natural gas, with domestic crude production falling to 28.7 MT in FY25, (from 29.4 MT in FY24) creating a critical vulnerability to global price shocks. 
  • This risk was exemplified when the 2022 Ukraine crisis spiked Brent crude to USD 130/barrel, severely worsening India's trade deficit and inflation.
• Geopolitical Vulnerability: India's purchase of Russian oil led to severe economic consequences, including EU sanctions on Nayara Energy, US sanctions on Russian firms, and a 25% tariff and surcharge imposed by the US. 
  • The majority of India’s crude imports originate in the volatile Middle East, transiting through chokepoints like the Strait of Hormuz and facing disruptions such as the suspended Chabahar port project.
• Critical Minerals Dependency: India is 100% import-dependent for 10 critical minerals including lithium, cobalt, and  nickel necessary for energy transition. This creates severe vulnerabilities for its clean energy, EVs, defense, and semiconductor sectors, as China controls over 90% of rare earth processing, 95% of graphite processing, and 79% of refined cobalt production.
• Renewable Energy Infrastructure Bottlenecks: India's non-fossil fuel capacity reached Around 217 GW by January 2025, but faces critical constraints from transmission delays, corridor congestion, and subdued demand. 
  • Over 60% of large-scale solar and wind projects are concentrated in just 3 states—Gujarat, Rajasthan, and Tamil Nadu, increasing exposure to extreme weather and geopolitical tensions like war or hybrid threats.
• Strategic Petroleum Reserves Inadequacy: India's combined oil storage and Strategic Petroleum Reserves (SPR) can sustain about 77 days of requirement, which is 13 days short of the International Energy Agency (IEA)'s compulsory 90-day mandate. Its quantified storage capacity is a low 39 million barrels, far below China's 550 million and Japan's 528 million barrels.
• Global Competition for Resources: China’s state-backed contracts in Africa and Latin America and the EU’s hydrogen imports strategy intensify global competition for critical minerals and future fuels. India’s limited strategic acquisitions overseas, especially compared to China’s Sinopec and CNPC, weaken its leverage in these energy markets.

India’s Energy Source

• Traditional Dependence (Pre-2005): Over 70% of crude imports came from West Asia, primarily Saudi Arabia, Iraq, Iran, Kuwait, and the UAE.
• Initial Diversification (2005-2015): Sourcing broadened to include African nations (Nigeria, Angola) and Venezuela, though West Asia still dominated (~60% share in 2011-12).
• Impact of Sanctions on Iran: UN and US sanctions post-2010 led to a sharp decline in Iranian oil imports, from ~11% (2011-12) to under 7% by mid-2010s, despite a brief resurgence after 2016.
• Major Shift Post-2022: Following the Ukraine conflict, Russia emerged as India's top supplier, its share jumping from <2% (2021-22) to ~36% (2023-25), driven by significant price discounts.
• Current Import Basket: Sources are now more balanced: Russia (~35%), West Asia (40-45%), Africa (8-10%), and the Americas (10-12%).

What Steps are Needed to Strengthen Energy Security for India?

• Boost Domestic Production: Fully implement the Oilfields (Regulation & Development) Amendment Act, 2025 to streamline clearances and expand Mission Anveshan for exploration in frontier basins like Krishna-Godavari and the Andaman islands. Additionally, deploy Enhanced Oil Recovery (EOR) and Artificial Intelligence in mature fields such as Mumbai High to improve recovery rates.
• Diversification of Energy Imports: To reduce Middle East reliance, India should lock long-term contracts with new suppliers like Guyana, Brazil, and Kazakhstan, and revive Iranian imports via a rupee-rial mechanism if sanctions ease. 
  • It must also utilize pipelines bypassing the Strait of Hormuz, including the UAE's Habshan-Fujairah pipeline and Saudi Aramco's East-West pipeline, to reduce supply vulnerabilities during regional conflicts.
• Accelerate Clean Energy Transition with Storage: Integrate a 4-hour battery storage mandate into new solar/wind bids and scale up the National Green Hydrogen Mission while developing hydrogen-ready pipelines. 
  • Concurrently, increase ethanol blending to 30% by 2030 using 2G/3G feedstocks and enforce Compressed Biogas blending mandates in city gas distribution networks.
• Building Critical Mineral Self-reliance: India must accelerate the National Critical Minerals Mission (NCMM), build domestic refining capacity via PPPs, and forge strategic partnerships with Australia and Argentina to secure supply chains. It should also establish a national stockpile and promote a circular economy through advanced recycling for long-term resource security.
• Geostrategic Energy Diplomacy: Champion the International Solar Alliance (ISA) and One Sun One World One Grid (OSOWOG) initiative for cross-border renewable trade. Simultaneously, deploy Small Modular Reactors with partners like the USA, France, and Russia to reduce fossil fuel reliance and build long-term resilience.

Conclusion

India’s energy security strategy in 2025 reflects a calibrated balance between affordability, diversification, sustainability, and strategic autonomy. While reforms, biofuels, gas infrastructure, and cleaner mobility have strengthened resilience, persistent import dependence, geopolitical risks, critical mineral vulnerabilities, and storage gaps necessitate deeper structural reforms and proactive energy diplomacy.

Drishti Mains Question:

Q. “Energy security is as much a geopolitical challenge as an economic one.” Examine this statement in the context of India’s energy policies in 2025

Frequently Asked Questions (FAQs)

1. What is meant by Energy Security?
Energy Security refers to the uninterrupted availability of energy at affordable prices, essential for economic stability, national security, and sustainable development.

2. Why is India vulnerable despite diversification of energy imports?
India still imports 85% of crude oil, faces geopolitical chokepoints, and lacks adequate SPR capacity compared to IEA norms.

3. Why is critical mineral dependency a major vulnerability for India's energy security?
India is 100% import-dependent for key minerals like lithium and cobalt, essential for its clean energy and EV sectors, with China controlling over 90% of global processing, creating severe supply chain risks.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims 

Q. Consider the following statements: (2019) 

1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.

Which of the statements given above are correct?

(a) 1 and 2 only  

(b) 2 and 3 only 

(c) 1 and 3 only  

(d) 1, 2 and 3 

Ans: (b)

Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? (2015)

1. It is a Public Limited Government Company.  
2. It is a Non-Banking Financial Company.  

Select the correct answer using the code given below:  

(a) 1 only  

(b) 2 only  

(c) Both 1 and 2  

(d) Neither 1 nor 2  

Ans: (c) 

---

Mains 

Q. “Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”.Comment on the progress made in India in this regard. (2018)

HAL Launches Dhruv NG for Civil Aviation

Source: TH

Recently, Hindustan Aeronautics Limited (HAL) conducted the maiden flight of the Dhruv–New Generation (NG) in Bengaluru, marking its formal push into the civil and export helicopter markets.

• Positioning: The Dhruv Civil NG is being projected as a cost-effective indigenous alternative to imported twin-engine helicopters, with lifecycle support spanning manufacturing, maintenance, and upgrades.
• Logistics: HAL plans to ensure higher fleet availability through integrated support models such as Power-By-Hour and performance-based logistics.
• Design: Dhruv NG is a 5.5-tonne, indigenously developed, twin-engine, multi-role helicopter, capable of day-night, all-weather operations, and derived from the Dhruv ALH Mk-III civil platform.
• Capability: Powered by indigenous Shakti engines with Cat-A performance and AS4-compliant systems, it is suitable for demanding roles including offshore operations of Oil and Natural Gas Corporation (ONGC).
• Certification: HAL secured Directorate General of Civil Aviation (DGCA) type certification for indigenous manufacture of the Shakti civil engine (a national first) and restricted certification from the European Union Aviation Safety Agency (EASA) in 2023.
• Significance: Building on a proven Dhruv platform with over 3.75 lakh flying hours, Dhruv NG strengthens Aatmanirbhar Bharat, reduces import dependence, and anchors India’s indigenous civil helicopter ecosystem.

Read more: Indian Aviation Industry

India Signs Major Defence Contracts

Source: TH

India signed defence procurement contracts worth ₹4,666 crore for the induction of modern infantry weapons and advanced naval torpedoes, reinforcing operational preparedness and indigenisation.

• Over 4.25 lakh Close Quarter Battle Carbines will be procured for the Indian Army and Navy from Bharat Forge Ltd & PLR Systems Pvt Ltd (India) to replace legacy rifles.
  • The carbines offer compact design, high rate of fire and enhanced lethality, boosting effectiveness in urban and confined-space combat.
  • This strengthens Aatmanirbhar Bharat, Make in India, MSME participation and indigenous defence manufacturing.
• Forty-eight heavyweight torpedoes will be procured from WASS Submarine Systems (Italy) for Kalvari-class (Project-75) submarines, with deliveries scheduled between 2028 and 2030, significantly strengthening India’s underwater warfare capability.
  • Kalvari-class (Project-75) submarines are India-built Scorpène-class diesel-electric attack submarines of the Indian Navy, strengthening underwater warfare, stealth surveillance, and sea-denial capabilities in the Indian Ocean Region.
• In FY 2025–26, the Ministry of Defence has signed capital acquisition contracts worth ₹1.82 lakh crore, reflecting sustained focus on defence modernisation and indigenisation.

Read more: India’s Defense Modernization: Challenges and Opportunities

Israel’s Recognition of Somaliland

Source: TH

Israel becomes the first country to formally recognise Somaliland (not a UN-recognised state) as an independent state, with implications for regional stability, maritime security, and great power competition.

• Israel claims the recognition is in the spirit of the Abraham Accords, as Israel seeks to normalise relations with non-traditional partners. 

Somaliland

• Historical Background: Previously, it was the British Somaliland Protectorate, and it formally became a British colony in 1920. Gained independence as the State of Somaliland in 1960 before voluntarily merging with Italian Somaliland to form Somalia.
  • It declared independence in 1991 after the fall of Siad Barre’s regime, following large-scale human rights abuses against the Isaaq clan, which is dominant in Somaliland.
  • Operates with de facto autonomy, having its own currency, passports, police, and capital (Hargeisa), but lacks international recognition until now.
• Strategic Location: Somaliland lies in the Horn of Africa, an East African peninsula extending into the Gulf of Aden, Somali Sea, and Guardafui Channel, comprising Djibouti, Eritrea, Ethiopia, and Somalia.
  • The region overlooks critical global shipping routes, with the Bab el-Mandeb Strait located near Djibouti and Eritrea, linking the Red Sea to the Indian Ocean.
• Security & Military Dimensions: Somaliland presents Israel with a strategic opportunity, offering a potential forward base for intelligence, logistics, and counter-Houthi operations, as well as a possible location for resettling Palestinians. The UAE operates a military port and airstrip in Berbera (port city).

Read More: African Union Support and Stabilisation Mission in Somalia