Chips, Gas, and Screwdrivers The Three Bets Defining India’s Industrial Future
Chips, Gas, and Screwdrivers The Three Bets Defining India’s Industrial Future Date: January 13, 2026
Introduction: The Shift from Services to "Hard Tech" For thirty years, the "India Story" was synonymous with software services—Infosys, TCS, and the back-office revolution. But in 2026, the narrative has fundamentally shifted. The government’s focus has pivoted aggressively toward "Hard Tech"—manufacturing physical, tangible, and high-value assets.
This shift is anchored by three massive gambles:
The Semiconductor Mission: To make India a chip superpower.
The Green Hydrogen Mission: To make India the fuel station of the post-oil world.
The Right to Repair: To fundamentally alter the relationship between consumers and manufacturers.
As we survey the landscape in January 2026, the results are a mix of soaring success and sobering reality. We have the first "Made in India" memory chips rolling out of Gujarat, but we also have stalled hydrogen electrolyzer plants and a fierce corporate pushback against repair laws. This article provides a status check on India's industrial trinity.
I. The Silicon Shield: Micron, Tata, and the First Wafer If 2024 was the year of announcements, 2025 was the year of concrete pouring. The India Semiconductor Mission (ISM), backed by a $10 billion incentive package, has finally moved from PowerPoint to production.
The Sanand Milestone The headline success is the Micron Technology facility in Sanand, Gujarat. Breaking ground in 2023, the plant—a massive Assembly, Testing, Marking, and Packaging (ATMP) unit—is now fully operational as of December 2025.
The Output: The first batch of "Made in India" DRAM and NAND flash memory chips has been shipped. While the silicon wafers are still imported, the packaging—a critical value-add step—is now domestic.
The Ecosystem: The "Micron Effect" has triggered a swarm of suppliers. Simmtech (a PCB substrate maker) and Air Liquide (industrial gases) have set up shop nearby, creating India’s first true semiconductor cluster.
The Fab Challenge However, the "Holy Grail"—a full-scale Logic Fab (where the actual chip is etched)—remains a work in progress. The Tata Electronics-PSMC joint venture in Dholera is currently under construction. While the timeline targets commercial production by late 2026, industry insiders warn of the "Talent Gap." India currently has thousands of chip designers but very few process engineers who know how to run a cleanroom. To bridge this, the government has launched the "Chip-to-Startup" (C2S) program, with IITs now running accelerated courses on semiconductor physics. The race is no longer for capital; it is for human capability.
II. Green Hydrogen: The "Fuel of the Future" Meets Present Physics While chips are booming, the National Green Hydrogen Mission faces significant headwinds. The target is ambitious: 5 Million Metric Tonnes (MMT) of annual production by 2030. The reality in 2026 is a "chicken and egg" problem.
The Cost Barrier Green Hydrogen is produced by splitting water using renewable energy. To be competitive with "Grey Hydrogen" (made from gas), the price needs to drop to $1-2 per kg. Currently, in 2026, Indian Green Hydrogen hovers around $3.50 - $4.00 per kg.
The PLI Delay: A major setback occurred in late 2025 when beneficiaries of the Electrolyzer PLI Scheme (Production Linked Incentive) petitioned the government to defer their production deadlines to 2027.
The Reason: Lack of domestic demand. Steel and Fertilizer companies (the intended buyers) are reluctant to sign long-term purchase contracts at current high prices. They argue that without a government mandate or a "Carbon Tax," switching to expensive Green Hydrogen destroys their margins.
The Export Pivot Faced with weak domestic demand, the industry has pivoted to export.
The Port Hubs: The Kandla and Tuticorin ports are being transformed into "Green Hydrogen Hubs."
The European Lifeline: In a strategic win, India signed a major offtake agreement with the European Union (EU) and Singapore in late 2025. Indian companies like ReNew and Adani are now building capacity primarily for export to Germany and Japan, countries willing to pay a premium for green fuel to meet their strict climate laws.
III. The Right to Repair: The Battle for the Screwdriver While the first two revolutions are industrial, the third is personal. The "Right to Repair" framework, launched with fanfare in 2024, has turned into a legal guerrilla war between the Ministry of Consumer Affairs and Big Tech.
The Portal vs. The Practice The government launched a centralized portal (righttorepairindia.gov.in) where manufacturers were supposed to upload repair manuals and list spare part prices.
The Success: Automobile companies have largely complied. You can now buy a genuine side-mirror or fuel pump for your car from a third-party mechanic without voiding your warranty.
The Resistance: Consumer Electronics (smartphones, laptops) have resisted. Tech giants argue that sharing circuit schematics compromises "Intellectual Property" and "User Safety."
The "Repairability Index" To force compliance, the government introduced the Repairability Index in mid-2025. Every electronic device sold in India must now display a score from 1 to 10 on its packaging, indicating how easy it is to fix.
The Market Impact: This simple sticker has changed consumer behavior. Shoppers on Amazon and Flipkart are now filtering laptops by "Repair Score."
The Design Shift: For the first time, we are seeing "India-specific" models from global brands where the battery is removable and the back glass is held by screws, not glue. The "Indian Consumer" is forcing a global design rethink, proving that a market of 1.4 billion people can dictate terms to Cupertino and Seoul.
Conclusion: The "Hardware" Learning Curve As we analyze these three pillars in 2026, a common theme emerges: Friction. Transitioning from a "click-and-code" economy to a "build-and-repair" economy is painful. It requires land acquisition, environmental clearances, complex supply chains, and a cultural shift in how we view value.
Semiconductors are on track but fragile, dependent on global geopolitics.
Green Hydrogen is technologically ready but economically unviable without massive subsidies.
Right to Repair is a moral victory but faces a long legal trench war.
However, the very existence of these struggles signals progress. Five years ago, India wasn't even in the game. Today, it is at the table, rolling the dice on the hardest problems in the industrial world. The outcome of these bets will determine if India becomes a true manufacturing superpower or remains a perennial "market of potential."