Atal Innovation Mission, Make in India, Start-up India | Science & Technology for UPSC CSE PDF Download

Introduction

India’s economic growth and global competitiveness rely on fostering innovation, manufacturing, and entrepreneurship. The Atal Innovation Mission (AIM), launched in 2016, builds an innovation culture through schools, startups, and incubators. Make in India, initiated in 2014, aims to transform India into a global manufacturing hub, boosting job creation and exports. Start-up India, launched in 2016, supports startups through funding, tax incentives, and simplified regulations. Together, these initiatives have created over 1.4 lakh startups, 130 unicorns (valued at $450 billion), and increased India’s manufacturing output to $450 billion annually by 2025. Aligned with Digital India and Sustainable Development Goals (SDG 8 and 9), these programs leverage India’s 1.4 billion population and 880 million internet users. Recent developments, including the 2025-26 budget and international collaborations (e.g., India-US iCET), underscore their role in economic transformation. This topic is critical for understanding India’s innovation ecosystem, industrial growth, and global leadership.

Atal Innovation Mission (AIM)

Launched in 2016 by NITI Aayog, AIM fosters a culture of innovation and entrepreneurship among students, researchers, and startups, honoring former Prime Minister Atal Bihari Vajpayee’s vision.

Objectives

• Promote innovation and entrepreneurship in schools, universities, and industries.
• Establish innovation hubs, incubators, and tinkering labs to nurture creativity.
• Support startups in emerging technologies like AI, IoT, and biotechnology.
• Bridge the gap between academia, industry, and society for inclusive innovation.
• Position India among the top 25 in the Global Innovation Index by 2030 (ranked 39th in 2025).

Key Features

• Atal Tinkering Labs (ATLs): Innovation labs in schools to promote STEM skills and creativity.
• Atal Incubation Centres (AICs): Support startups with funding, mentorship, and infrastructure.
• Atal Community Innovation Centres (ACICs): Foster innovation in underserved and rural areas.
• Atal New India Challenges (ANIC): Fund solutions for societal challenges (e.g., healthcare, agriculture).
• Mentor India: Engages industry experts to mentor students and startups.

Initiatives and Progress

• ATLs: Over 10,000 ATLs established by 2025, reaching 5 million students across 1,000 districts, fostering skills in robotics, AI, and 3D printing.
• AICs: 100+ AICs incubated 5,000 startups, with 20% securing Series A funding by 2025.
• ACICs: 50 centres in tier-2/3 cities and rural areas, supporting 1,000 grassroots startups in agritech and healthtech.
• ANIC: Funded 200 projects in 2024, including low-cost diagnostics and water purification systems.
• Budget 2025-26: ₹5,000 crore allocated for AIM, expanding ATLs to 15,000 and AICs to 200 by 2028.

Recent Developments (2024-2025)

• ATL Expansion: 2,000 new ATLs added in 2024, with 70% in rural schools, promoting inclusive innovation.
• AI and Robotics Focus: ATLs introduced AI modules, training 1 million students in coding and machine learning.
• Global Collaboration: MoU with US (2025) to integrate AI and IoT curricula in ATLs, enhancing global competitiveness.
• Women in Innovation: 30% of AIC startups led by women in 2025, supported by targeted mentorship programs.
• Impact: ATLs contributed to 500 student-led patents in 2024, boosting India’s patent filings (60,000+).

Make in India

Launched on September 25, 2014, by the Ministry of Commerce and Industry, Make in India aims to transform India into a global manufacturing hub, increasing the sector’s GDP share from 15% (2014) to 25% by 2025 and creating 100 million jobs.

Objectives

• Boost manufacturing growth to 10% annually, enhancing GDP contribution.
• Attract foreign direct investment (FDI) in 25 priority sectors (e.g., electronics, automotive, pharmaceuticals).
• Create jobs and reduce import dependency, supporting Aatmanirbhar Bharat.
• Promote ease of doing business through regulatory reforms and infrastructure development.
• Enhance exports to position India as a global supply chain leader.

Key Features

• Priority Sectors: 25 sectors, including electronics, defence, renewable energy, and pharmaceuticals.
• Production-Linked Incentive (PLI) Schemes: Incentives for manufacturing in sectors like mobiles, solar modules, and APIs.
• Ease of Doing Business: Simplified regulations, single-window clearances, and reduced compliance costs.
• Infrastructure: Development of industrial corridors (e.g., DMIC) and smart cities to support manufacturing.
• FDI Reforms: 100% FDI allowed in most sectors; $100 billion FDI in manufacturing (2024).

Initiatives and Progress

• PLI Schemes: ₹1.97 lakh crore allocated across 14 sectors, attracting ₹9 lakh crore in investments by 2025. Mobile manufacturing output rose to ₹4.1 lakh crore, with 97% domestic production.
• Electronics Manufacturing: India produces 30% of global mobile phones (2025), with companies like Apple and Samsung expanding operations.
• Defence Manufacturing: 75% indigenous production in defence equipment (2025), with ₹1.5 lakh crore in exports (e.g., BrahMos missiles).
• Pharmaceuticals: India supplies 50% of global generic drugs; API production increased 20% under PLI.
• Industrial Corridors: Delhi-Mumbai Industrial Corridor (DMIC) hosts 10 smart industrial cities, generating 1 million jobs.
• Budget 2025-26: ₹50,000 crore for PLI expansion and ₹20,000 crore for industrial infrastructure.

Recent Developments (2024-2025)

• PLI Expansion: New PLI schemes for semiconductors and green hydrogen, attracting $10 billion in investments.
• FDI Growth: $120 billion FDI in manufacturing (2024), with 40% from US, Japan, and Singapore.
• Semiconductor Mission: Three chip plants under construction (Gujarat, Assam), with ₹1.5 lakh crore investment by 2027.
• Ease of Doing Business: India ranks 50th in World Bank’s Doing Business Index (2025), up from 63rd in 2020.
• Export Surge: Manufacturing exports reached $500 billion in 2024, driven by electronics and pharmaceuticals.

Start-up India

Launched on January 16, 2016, by the Department for Promotion of Industry and Internal Trade (DPIIT), Start-up India fosters entrepreneurship through funding, tax incentives, and regulatory simplification, aiming to create a vibrant startup ecosystem.

Objectives

• Promote startup growth in emerging technologies (AI, fintech, healthtech, cleantech).
• Provide funding and mentorship to early-stage startups.
• Simplify regulations and offer tax exemptions to reduce compliance burdens.
• Create 1 million jobs through startups by 2025.
• Position India among the top three global startup ecosystems by 2030.

Key Features

• Startup Recognition: DPIIT recognizes startups for tax benefits and funding access.
• Seed Fund Scheme (SISFS): ₹1,000 crore for early-stage funding (2021–25).
• Fund of Funds for Startups (FFS): ₹10,000 crore to support VC investments.
• Tax Incentives: Three-year income tax exemption and capital gains tax relief for startups.
• Ease of Compliance: Fast-track patents (6 months) and simplified regulations.

Initiatives and Progress

• Startup Recognition: 1.4 lakh startups recognized by 2025, with 50% in tier-2/3 cities.
• Funding: ₹1,000 crore disbursed to 2,000 startups via SISFS; ₹50,000 crore invested through FFS by VCs.
• Unicorns: 130 unicorns (2025), valued at $450 billion, including Swiggy, Zomato, and Razorpay.
• Incubators: 1,000+ incubators, including T-Hub and IIM Bangalore’s NSRCEL, mentored 50,000 startups.
• Women Entrepreneurs: 20,000 women-led startups, supported by Women Entrepreneurship Platform (WEP).
• Budget 2025-26: ₹10,000 crore for SISFS and ₹5,000 crore for deep tech startups (AI, biotech).

Recent Developments (2024-2025)

• Generative AI Boom: 890+ GenAI startups raised $990 million in 2024, a 30% increase from 2023.
• National Deep Tech Startup Policy (2024): ₹5,000 crore for 500 deep tech startups in AI, robotics, and quantum tech.
• Global Expansion: 100 Indian startups expanded to US, Singapore, and UAE in 2024, supported by Startup India’s international outreach.
• Green Startups: 5,000 cleantech startups (e.g., green hydrogen, EVs) funded under PLI and SISFS.
• Maharashtra Startup Policy 2025: ₹500 crore to spark 25,000 startups, with a 300-acre Innovation City.

Global Context and Comparisons

Global Leaders

• United States: World’s largest startup ecosystem with 200,000 startups, 1,000+ unicorns, and $150 billion VC funding (2024). Silicon Valley leads in AI and tech.
• China: 300 unicorns, $100 billion VC funding. Dominates 5G and AI, supported by state-backed funds.
• EU: 100,000 startups, 200 unicorns; Horizon Europe (€95 billion, 2021–27) funds innovation.
• India’s Position: Third-largest startup ecosystem (1.4 lakh startups), but lags in per capita funding ($14 vs. $400 in US).

Global Trends (2025)

• Deep Tech: AI, quantum computing, and biotech attract 50% of global VC funding.
• Green Innovation: $200 billion in cleantech startups globally, focusing on EVs and renewable energy.
• Manufacturing Shift: Global supply chains shift to Asia; India attracts 20% of rerouted investments.
• India’s Edge: Cost-effective innovation (e.g., $1,000 ventilators) and a 1.4 billion-strong market make India a leader for Global South.

India vs. Global

• Startups: India’s 1.4 lakh startups surpass EU’s 100,000 but trail US’s 200,000.
• Funding: India’s $20 billion VC funding is 13% of US levels but grows faster (15% annually).
• Manufacturing: India’s 17% GDP share lags China’s 30% but outpaces EU’s 15%.
• Policy: AIM, Make in India, and Start-up India rival US’s SBIR and China’s Made in China 2025, with stronger focus on inclusion.

Challenges

Atal Innovation Mission

• Scale: ATLs reach only 10% of India’s 1.5 million schools, limiting STEM penetration.
• Funding: AICs face funding shortages; only 20% of incubated startups secure Series A.
• Rural Reach: ACICs cover only 50 tier-2/3 cities, leaving 70% of rural areas underserved.

Make in India

• Infrastructure: Logistics costs (14% of GDP) hinder manufacturing competitiveness vs. China (8%).
• Skill Gap: Only 5% of India’s workforce is formally skilled, compared to 24% in China.
• FDI Barriers: Regulatory complexities deter 30% of potential investors.

Start-up India

• Funding Gaps: Early-stage startups face a 40% funding shortfall; VCs prioritize late-stage.
• Regulatory Delays: Patent approvals take 18 months, slowing innovation.
• Talent Retention: 30% of STEM graduates migrate annually, attracted by higher salaries abroad.

Future Prospects

Atal Innovation Mission

• Expand ATLs to 20,000 by 2030, covering 80% of schools.
• Fund 10,000 startups via AICs by 2030, with 50% in deep tech.
• Establish 100 ACICs in rural areas, fostering grassroots innovation.

Make in India

• Increase manufacturing GDP share to 20% by 2030, creating 50 million jobs.
• Attract $200 billion FDI annually by 2030, focusing on semiconductors and EVs.
• Complete 20 smart industrial cities under DMIC by 2028.

Start-up India

• Reach 5 lakh startups and 500 unicorns by 2030, with $50 billion VC funding annually.
• Export startup solutions (AI, cleantech) to 50 countries by 2035.
• Achieve 50% women-led startups by 2030, supported by WEP.

Significance for India

• Economic Growth: The three initiatives contribute 10% to GDP, projected to reach 15% by 2030, creating 20 million jobs.
• Innovation Ecosystem: AIM and Start-up India drive India’s Global Innovation Index rank to top 20 by 2030.
• Self-Reliance: Make in India reduces import dependency (e.g., 97% domestic mobile production), supporting Aatmanirbhar Bharat.
• Global Standing: India’s leadership in startups and manufacturing strengthens G20 and BRICS influence.

The Atal Innovation Mission, Make in India, and Start-up India are cornerstones of India’s economic and technological transformation, fostering innovation, manufacturing, and entrepreneurship. AIM’s 10,000 ATLs and 100 AICs nurture creativity, Make in India’s PLI schemes drive $450 billion in manufacturing output, and Start-up India’s 1.4 lakh startups create a $450 billion unicorn ecosystem. Despite challenges like funding gaps and skill shortages, the 2025-26 budget’s ₹1.5 lakh crore and global partnerships signal robust progress. These initiatives align with Aatmanirbhar Bharat, SDGs, and India’s $5 trillion economy goal, positioning it as a global leader in innovation and industry. For UPSC aspirants, this topic underscores India’s policy-driven growth and global competitiveness.