As the world edges towards 2026, two sharply contrasting forces are shaping India’s future. On one side lies extraordinary technological promise — from space-based solar power to artificial intelligence and quantum computing. On the other looms geopolitical disruption, driven largely by the policies of US President Donald Trump, which are unsettling global trade, technology flows and India’s most important employment engine: software services.
A new space-age bet from Silicon Valley
At the frontier of technological optimism stands “”, the self-made billionaire best known as the co-founder of “”. His new venture, “”, aims to harvest solar energy in space and beam it to Earth using highly focused lasers.
The idea itself is not new — space-based solar power has been discussed since the Cold War — but Bhatt’s approach is radically smaller and more modular. Instead of massive orbital structures the size of cities, Aetherflux plans compact spacecraft that could be deployed relatively quickly. A demonstration mission, riding on a SpaceX rocket, is planned to show whether energy harvested in orbit can be transmitted reliably to Earth-based receivers.
Why this matters beyond billionaire ambition
Bhatt’s venture invites inevitable comparisons with “”, but its significance goes beyond personality. If viable, space-based solar power could offer a continuous, carbon-free energy source unaffected by weather or day-night cycles. For energy-hungry economies like India, such technologies hint at a future where energy security and climate goals converge.
Yet Bhatt himself acknowledges the risks. Space hardware allows no second chances — once deployed, failure is final. The promise is transformative, but so is the uncertainty.
Technology’s golden horizon: AI and quantum leaps
This space-energy gamble unfolds amid a broader technological acceleration. Artificial intelligence is already reshaping offices, hospitals and classrooms, automating tasks once performed by large teams. Quantum computing, though still nascent, threatens to overturn existing assumptions about processing power, cybersecurity and scientific modelling.
Together, these technologies could redefine productivity and growth. For India, long positioned as a technology services hub, they offer both opportunity and disruption — depending on how quickly institutions and industries adapt.
Trump’s shadow over global technology and trade
Overshadowing these breakthroughs is the disruptive geopolitical climate created by Trump’s second presidency. Within months, his administration imposed steep tariffs, destabilised alliances in Europe, pushed Japan towards rapid militarisation, and left India facing 50 per cent tariffs on exports to the US.
After two decades of deepening India–US ties, New Delhi has been compelled to recalibrate. This includes tentative warming towards China despite unresolved border tensions in Ladakh, and renewed engagement with Russia — a partner now far weaker and increasingly dependent on Beijing.
Indian industry under pressure
The impact on Indian industry is already visible. Traditional export sectors such as gems and jewellery, textiles and leather are struggling to remain competitive under punitive tariffs. More worrying is the stress on software services — the backbone of India’s white-collar employment and foreign exchange earnings.
High-cost H-1B visas have sharply reduced on-site deployments. Tata Consultancy Services reports that only a few hundred employees are travelling to the US this year after visa fees surged dramatically. For an industry built on global labour mobility, this represents a structural shock.
AI and the end of bulk hiring
Beyond geopolitics, artificial intelligence is forcing a deeper reckoning. Tasks that once required teams of engineers can now be completed in minutes by AI systems. “” has already announced large layoffs, while firms like “” are investing heavily in retraining, making it clear that those who cannot adapt will be left behind.
The employment implications are stark. Between 2022 and 2023, Infosys alone hired 50,000 graduates. That era of mass recruitment is ending. Global Capability Centres may still create high-skill roles, but traditional IT services will no longer absorb millions of fresh graduates.
Start-ups, resilience and the road ahead
There are, however, glimmers of hope. India’s start-up ecosystem is maturing, with multiple firms scaling rapidly and tapping capital markets. In 2025 alone, 18 Indian start-ups went public, and funding remained robust despite global uncertainty.
As India enters 2026, it stands at a crossroads. Visionary technologies like space-based solar power and AI offer unprecedented promise, but geopolitical disruption and labour-market upheaval pose equally unprecedented risks. Whether this moment becomes a launchpad or a reckoning will depend on how decisively India reshapes its economic strategy, skilling systems and technological ambitions.
What to note for Prelims?
- Concept of space-based solar power and its advantages
- Role of AI in reshaping services industries
- H-1B visa regime and its impact on Indian IT
- US tariff policies and their sectoral effects on India
What to note for Mains?
- Technological disruption versus employment stability in India
- Geopolitics and its influence on global technology flows
- India’s strategic options amid US–China–Russia realignments
- Need for re-skilling and industrial diversification in the AI era
