UPSC NCERT Notes – Indian Economy – Indian Industry

For aspiring candidates preparing for the UPSC examination, a thorough understanding of the Indian economy, particularly its industrial sector, is imperative. The Indian economy, characterized by its diverse industries ranging from traditional to modern sectors, plays a pivotal role in shaping the nation’s growth trajectory. UPSC NCERT notes on Indian Industry offer a comprehensive insight into the historical evolution, current status, challenges, and prospects of India’s industrial landscape. From the pre-independence era marked by colonial exploitation to the post-independence era of planned industrial development and liberalization, these notes encapsulate the nuanced dynamics of Indian industry. Through a systematic exploration of key concepts, policies, and case studies, UPSC NCERT notes on Indian Industry equip aspirants with the requisite knowledge and analytical tools to navigate through the complex terrain of the Indian economy in their pursuit of success in the UPSC examination.

Industries in the Indian Economy:

• Industry pertains to economic activities involved in processing raw materials and manufacturing goods within factories.
• Industries are often categorized based on their primary products, such as the steel industry, automobile industry, textile industry, etc.
• Since independence, the Indian Government has actively sought to foster rapid industrial growth.
• Industrial Development: The service sector has become the largest contributor to the global economy in terms of value-added, particularly significant in more advanced economies.
• Achieving rapid national income growth is primarily feasible through industrialization, as agricultural growth is constrained by various factors, including natural limitations.
• According to advance estimates, the Gross Value Added (GVA) of Industry (including mining and construction) is projected to increase by 11% in 2022, compared to 11.8% in the previous year.
• The growth rates for industrial development in the Eighth Five-Year Plan were 7.29%, in the Ninth Plan 4.29%, in the Tenth Plan (2002-07) 9.17%, and in the Eleventh Plan (approximately) 10%.
• Goals and Objectives of Industrial Development in India: Industries offer higher quality employment compared to the agricultural sector. The share of industry in total employment increased from 16.2% in 1999-2000 to 21.9% in 2009-10.
• Value addition in the industrial sector can generate more foreign exchange than exporting raw materials alone.
• The industrial sector produces goods essential for the development of basic infrastructure, such as power and telecom, laying the foundation for the growth of other sectors like agriculture and services.
• National security necessitates domestic production of products for defense and strategic sectors to guard against adverse events like sanctions and wars.
• Meeting the high-income demands of the population is usually centered around industrial products.
• Surplus labor and a rapidly growing population in underdeveloped countries like India make industries crucial for creating employment opportunities and fostering economic development.
• Research and development associated with the industrialization process bring about technological progress and overall development.

Industrialization:

• Industrialization is the transformative process of shifting a nation or region’s economy from agriculture-focused to manufacturing-centric, characterized by increased productivity, urbanization, and improved living standards.

Industrial Sector in India:

• India’s economy is a mixed one, dominated by both public and private sectors.
• Public sector industries, such as Bharat Heavy Electricals Limited (BHEL) and Indian Oil Corporation (IOC), are owned and operated by the government.
• The distinction between industries is based on ownership of resources and activities.

Contribution of Industrial Sector to GDP in India:

• The industrial sector is a significant contributor to India’s GDP, ranking 14th in factory output globally.
• It encompasses manufacturing, mining, quarrying, and electricity, water supply, and gas sectors.
• The industrial sector is projected to witness modest growth of 4.1% in Fiscal Year (FY) 2022-23, compared to 10.3% in FY 2021-22.
• The sector accounts for approximately 27.06% of India’s GDP in 2021-22 and employs over 17% of the total workforce.

Public Sector:

• At the time of independence, India was predominantly agrarian and lacked the basic economy needed for substantial industrial and infrastructure development.
• The Indian private sector faced challenges due to financial constraints and a lack of technical and managerial abilities.
• The Industrial Revolution entered India in 1854 with the opening of Bombay’s first steam-powered cotton mill in Asia.
• The expansion of the public sector in industries gained momentum during the Second Plan (1956-61), which prioritized the country’s industrial growth.
• Objectives of the Public Sector:
  • To control the commanding heights of the economy and play a strategic role in the country’s industrialization.
  • To accelerate economic growth by creating basic infrastructure.
  • To generate employment opportunities.
  • To promote balanced regional development.
  • To generate surplus resources for development.
  • To promote exports and develop import substitution industries.
  • To check the concentration of economic power.

Private Sector:

• The private sector is the segment of the economy operated by individuals and companies for profit and is not state-controlled. 
• It includes all for-profit businesses not owned or operated by the government.
• Entities within the private sector encompass sole proprietorships, partnerships, small and mid-sized businesses, large corporations, multinationals, professional and trade associations, and trade unions.

Joint Sector:

• Joint Sector Enterprises involve joint ownership, control, and management by both private entrepreneurs and the government.
• Private entrepreneurs handle day-to-day management, while government participation is through representatives functioning as the Board of Directors.
• Joint Sector Enterprises may be set up by the Central Government and private entrepreneurs or in collaboration with one or more State Governments.

Co-operative Sector:

• Co-operative sector industries are owned and operated by the suppliers or producers of raw materials, workers, or both. 
• The cooperative movement in India gained momentum after independence, with encouragement in every village.
• Characteristics of the cooperative sector include profit distribution, reduced financial risk, mutual benefit to low and middle-income groups, voluntary formation and participation, recognition as an independent body by the Government of India, professional management through audits, and democratic election of managing committees.

Industrial Policy:

• The Department for Promotion of Industry and Internal Trade (DPIIT), formerly the Department of Industrial Policy Promotion (DIPP), oversees the industrial policy under the Ministry of Commerce and Industry.
• Industrial policy provides guidelines for effectively coordinating activities across various sectors of the economy.
• The evolution of industrial policy in India, since its independence in 1947, has aimed at rapid industrialization as a key driver of economic development and sovereignty.
• In the subsequent years, India’s industrial policy evolved through successive Industrial Policy Resolutions and Industrial Policy Statements. Specific priorities for industrial development were also laid down in the successive Five Year Plans.

Industrial Policy Resolution (IPR), 1948:

• The first Industrial Policy was announced in April 1948, by the then Industrial Minister, Late SP Mukherjee. Its historic importance lies in the fact that it ushered in the system of a Mixed Economy in the country, entrusting the task of industrial development to both private and public sectors.
• Salient features of the Industrial Policy Resolution 1948 include the development of a mixed economy, state programs for industrial development, promotion of small-scale and cottage industries, and allowing foreign investment with effective control by Indians.

Industrial Licensing:

• The Industries (Development and Regulation) Act, 1951, empowered the government to issue licenses for the setting up of new industries, expansion of existing ones, and diversification of products. 
• The main aims of the industrial licensing policy were the development and control of industrial investment and production as per national priorities, checking the concentration of industries, and ensuring balanced regional development.
• However, deficiencies in the licensing system led to the establishment of committees like the RK Hazari Committee (1964) and the Dr. Subimal Dutt Committee (1967). 
• Based on the recommendations of the Subimal Dutt Committee, the government enacted the Monopolies and Restrictive Trade Practices (MRTP) Act in 1969.

Industrial Policy Resolution (IPR), 1956:

• IPR 1956 was the most comprehensive industrial policy formulated in the backdrop of the adoption of the Constitution and the socio-economic goals. It outlined the basic framework of future industrial policies, especially up to 1991, and general economic policies. The main objectives were to accelerate the rate of economic growth and speed up industrialization to achieve a socialistic pattern of society. The policy categorized industries into three schedules: Schedule A (Public Sector), Schedule B (Mixed Sector), and Schedule C (Private Sector).

Monopolies and Restrictive Trade Practices Act (MRTP), 1969:

• The MRTP Act was enacted in 1969 to prevent the concentration of economic power and prohibit restrictive or unfair trade practices. Under the Act, companies having assets beyond the threshold limit were placed under its purview. Certain restrictions were imposed on such companies, including prior approval of the MRTP Commission for new undertakings, expansion, mergers, and acquisitions.

Industrial Policy Statement, 1977:

• The industrial policy announced on December 23, 1977, retained the role of the public sector as outlined in the 1956 policy.
• In this policy, special emphasis was given to the development of small and cottage industries, categorizing them into three groups: cottage and household industries, tiny, and small-scale industries. The policy aimed at decentralizing industries and promoting small-scale and cottage industries, introducing the concept of the tiny sector within the small-scale sector.

Industrial Policy Statement, 1980:

• This policy focused on optimizing the utilization of installed capacity, technological upgrading, and modernization. 
• It selectively liberalized the industrial sector, including amendments to the MRTP Act, reduction in the scope of licensing, and simplification of procedures for regularizing unauthorized excess capacity.

New Industrial Policy, 1991 (NIP):

• The Government of India announced the New Industrial Policy on July 24, 1991, aiming to free the Indian industrial economy from administrative and legal controls and enhance industrial efficiency to international levels through substantial deregulation.

Main features of NIP 1991:

• Delicensing: Industrial licensing was abolished, except for 18 specified industries like defense and atomic energy. Only three industries remain under the purview of industrial licensing.
• Foreign Investment: The foreign capital investment limit was raised from 40% to 51% in high technology and high investment priority industries.
• Foreign Technology: Automatic approval was granted for foreign technology agreements up to the limit of 200 crores, subject to royalty on domestic sales and exports.
• Foreign Investment Promotion Board (FIPB): Established to expeditiously clear foreign investment proposals, serving as a single-window clearing agency.
• Industrial Location Policy: In cities with a population of one million or more, industrial licensing is not required, except for mandatory cases. Non-pollutant industries in these cities should be set up at a distance of 25 km from city limits.
• MRTP Limit Scrapped: The threshold limit of 100 crores for classifying a company as an MRTP company was removed.
• Mandatory Convertibility Clause Abolished: The condition imposed by financial institutions on private companies regarding the conversion of a part of their lending into equity at a future date was abolished.
• New Small Enterprise Policy: A separate policy was introduced in August 1991 for promoting small-scale industries.
• Additionally, sick Public Sector Undertakings (PSUs) were placed under the purview of the Board for Industrial and Financial Reconstruction (BIFR), and the disinvestment of shares of PSUs was initiated.

Evaluation of Industrial Policies Before 1991:

The industrial policies preceding 1991 faced substantial criticisms highlighted by various official committees and experts. Key criticisms include:

• Licensing Policy Objectives: Objectives aimed at ensuring capacity creation in line with Five Year Plan priorities.
• Inherent demerits led to excess capacity and underutilization in some areas.
• Private players, despite having licenses, intentionally underproduced, fostering monopolistic conditions.
• Absence of Private Sector Targets: Private sectors lacked fixed targets, relying on assured profits and avoiding risks.
• Unintended Monopoly Development: Licensing policy intended to check monopoly but inadvertently led to its development.
• Favoritism Towards Big Industrial Houses: Big industrial houses succeeded in obtaining licenses, creating imbalances.
• Developed states gained more units, while poor and underdeveloped states lagged.
• Rigidity and Delay: Licensing system’s rigidity and complexity caused delays and project related issues.
• Resulted in a slowdown in the overall growth rate.

Competition Act, 2002:

• Enacted in 2002 based on SVS Raghavan Committee recommendations.
• Repealed the MRTP Act, replacing the MRTP Commission with the Competition Commission of India (CCI).
• Aims to encourage competition, prevent abuse of dominance, and ensure a level playing field.

Companies Act, 2013:

• Introduced significant changes in governance, compliance, and enforcement.
• New concepts include one-person company, small company, dormant company, etc.
• Implications of the Act are set to reshape corporate operations in India.
• One Person Company (OPC): A new entity alongside public or private limited companies.
• Small Company: Defined based on paid-up capital and turnover criteria.
• Dormant Company: Classified when formed for future projects or holding assets with no significant transactions.
• National Financial Reporting Authority (NFRA): Required constitution with significant powers in issuing authoritative pronouncements and regulating the audit profession.
• Serious Fraud Investigation Office (SFIO): Granted legal status under the Act for investigating serious frauds.
• Corporate Social Responsibility (CSR) has been addressed in the Act of 2013, aiming to instill the culture of CSR in Indian corporations. The Act mandates companies to formulate a CSR policy and incur a minimum expenditure on social activities. 
• The Companies (Amendment) Act of 2015 brought about significant changes, including the omission of the requirement for a minimum paid-up share capital and making the common seal optional. 
• The 2019 Amendment further expanded the scope of issuing dematerialized shares to certain classes of unlisted companies and introduced provisions for the transfer of unspent CSR funds to the PM Relief Fund.

Under the Companies (Amendment) Act of 2019:

• Companies are required to keep an unspent amount in a special account for CSR purposes.
• If this amount remains unspent after three years, it will be moved to a fund specified in Schedule VII, which could include the PM’s Relief Fund.
• The Registrar of Companies can initiate action to remove a company’s name from the Register if it is not conducting business as per Company Law.
• Sixteen minor offenses mentioned in the Act have been decriminalized, treating them as civil defaults.

Performance of the Industry (Economic Survey 2022-23):

• Overall Gross Value Added (GVA) by the industrial sector for the first half of Financial Year 22-23 rose by 3.7%, surpassing the average growth achieved in the last decade.
• Robust growth in private final consumption expenditure, export stimulus, increased investment demand, and strengthened bank and corporate balance sheets contributed to the industrial growth.
• PMI manufacturing has remained in the expansion zone for 18 months, and the Index of Industrial Production (IIP) shows healthy growth.
• Credit to Micro, Small, and Medium Enterprises (MSMEs) and large industries has exhibited positive growth.
• Electronics exports tripled, and India became the second-largest mobile phone manufacturer globally.
• Foreign Direct Investment (FDI) flows into the pharma industry quadrupled.
• Production Linked Incentive (PLI) schemes have attracted significant investment and achieved 106% of the designated target in FY22.
• Over 39,000 compliances have been reduced, and more than 3,500 provisions have been decriminalized as of January 2023.

Public Sector Enterprises (PSEs)

• In 1951, there were merely five Central Public Sector Enterprises (CPSEs) with an investment of 29 crore. As of March 31, 2021, the number of CPSEs (excluding financial institutions) has surged to 389.
• Across the entire country, including both the Centre and States, there were over 800 state-level public enterprises, with total investment in the public sector exceeding 6 lakh crore.
• The public sector played a pivotal role in building infrastructure and laying the foundation for the country’s basic industrial structure.
• Public Sector Units (PSUs) played a crucial role in promoting strategic and key industries such as atomic energy, armaments and ammunition, aircraft, heavy machinery, iron and steel, coal, drugs, and fertilizers. PSUs employed approximately 70% of the workers in the organized sector.
• Currently, the public sector contributes about 24% to the GDP and accounts for over 20% of the Gross Domestic Capital Formation (investment).

Challenges Faced by PSUs

The return on capital invested in PSUs has been disappointingly low, attributed to low profitability and losses in some PSUs. Price Policy-related issues, like administered prices being deliberately kept lower than market prices.

• Lack of autonomy for PSU management due to excessive political interference.
• Low efficiency stems from a lack of incentives for better performance.
• Excessive overheads, particularly in providing housing and other amenities to employees, such as townships.
• Overstaffing leads to inflated wage bills.
• Inappropriate investment decisions, including unsuitable locations, technology, and product mix.
• Unrestricted expansion of the public sector across various domains.

PSU Reforms

• In the post-reform era (1991 onwards), the government has implemented measures to enhance PSU performance.
• The Memorandum of Understanding (MoU) concept was introduced in 1987, providing a reasonable degree of autonomy to PSU management while holding them accountable for performance.

New Industrial Policy, 1991

• The policy included reformative measures for PSUs, such as dereservation, disinvestment, professionalization of management, referral of sick PSUs to the BIFR, and expanding the scope of MoUs.

The Voluntary Retirement Scheme (VRS)

• Launched in 1988, this scheme aimed at streamlining manpower in central PSUs.
• It allowed PSUs to reduce excess staff by offering attractive compensation packages to workers opting for voluntary retirement.
• The government took steps to dismantle price controls on various PSU products, including iron, steel, cement, fertilizers, and petro-products.

Public Sector Refinement Policies

Maharatnas

• The Maharatna scheme, initiated on May 19, 2010, empowers Central Public Sector Enterprises (CPSEs) to expand their operations and emerge as
• The global landscape witnesses the presence of 389 operational Central Public Sector Enterprises (CPSEs) as of March 31, 2021.
• The Maharatna scheme aims to empower the boards of identified large-sized Navratna CPSEs, facilitating their expansion in both domestic and global markets.
• CPSEs eligible for Maharatna status must meet the following criteria:
  • Hold Navratna status.
  • Be listed on the Indian Stock Exchange with a minimum prescribed public shareholding under SEBI regulations.
  • Maintain an average annual turnover of over 25,000 crores in the last 3 years.
  • Maintain an average annual net worth of over 15,000 crores in the last 3 years.
  • Achieve an average annual net profit after tax of more than 5,000 crores in the last 3 years.
  • Demonstrate significant global presence or international operations.
• This coveted status empowers the boards of Maharatna firms to make investment decisions up to 5000 crores without seeking government approval, a significant increase from the existing 1000 crore limit for Navratnas.

Maharatna CPSEs include:

• Oil and Natural Gas Corporation Limited (ONGC)
• Indian Oil Corporation Limited (IOCL)
• Steel Authority of India Limited (SAIL)
• NTPC Limited
• Coal India Limited (CIL)
• Bharat Heavy Electricals Limited (BHEL)
• Gas Authority of India Limited (GAIL)
• Bharat Petroleum Corporation Limited (BPCL)
• Hindustan Petroleum Corporation Limited (HPCL)
• Power Grid Corporation of India Limited (PGCIL)
• Power Finance Corporation Limited (PFCL)
• Rural Electrification Corporation (REC)
• Navratnas, initially nine prestigious Public Sector Enterprises (PSEs) identified by the Government of India in 1997, enjoy greater autonomy to compete globally. The criteria for 

Navratna status include:

• Schedule ‘A‘ and Miniratna category 1 status.
• At least three ‘excellent’ or ‘very good’ Memorandum of Understanding (MoU) ratings in the last five years.
• A composite score of 60 out of 100 based on performance in the last three years across six criteria.
• Presence of four independent directors on the board.
• Navratna status enables PSUs to invest up to 1000 crores or 15% of their net worth on a single project without government approval, with an overall ceiling of 30% of the net worth for all projects combined.

Navratna CPSEs include:

• Bharat Electronics Limited (BEL)
• Hindustan Aeronautics Limited (HAL)
• Mahanagar Telephone Nigam Limited (MTNL)
• National Aluminium Company Limited (NACL)
• NMDC Limited
• Oil India Limited (OIL)
• Container Corporation of India Limited (CONCOR)
• Engineers India Limited (EIL)
• National Buildings Construction Corporation Limited (NBCCL)
• Rashtriya Ispat Nigam Limited (RINL)
• Shipping Corporation of India Limited (SCOIL)
• Rail Vikas Nigam Limited (RVNL)
• Neyveli Lignite Corporation Limited (NLCL)

Miniratnas

• The government has bestowed Miniratna status upon certain profit-making Public Sector Enterprises (PSEs).
• Miniratnas are categorized into two types:
  • Category-I Miniratna: These companies have reported profits in each of the last three years and earned a minimum profit of 30 crores in at least one of those years. They are authorized to undertake capital expenditure without government approval, up to 500 crores or equal to their net worth, whichever is lower. Currently (as of July 2023), there are 61 Miniratnas falling under this category.
  • Category-II Miniratna: These companies have consistently generated profits over the last three years and have a positive net worth. They are allowed to incur capital expenditure up to 300 crores or 50% of their net worth, whichever is lower. Currently (as of July 2023), there are 12 Miniratnas in this category.

The Micro, Small, and Medium Enterprises (MSMEs)

• Over the past five decades, the Small-Scale Industries (SSIs) sector has gained prominence in the country’s economy.
• It has played a substantial role in contributing to GDP growth, employment generation, and export promotion.
• The sector encompasses not only SSI units but also Small-Scale Service and Business Enterprises, collectively referred to as the small enterprises sector.
• In India, Small-Scale Industries (SSIs) are distinguished from large-scale industries based on three criteria: volume of investment in the unit, annual turnover, and the number of workers employed.
• In line with the provisions of the Micro, Small, and Medium Enterprises Development (MSMED) Act, the Micro, Small, and Medium Enterprises (MSMEs) were reclassified on June 1, 2020.

Definitions of MSME-Old and New

Category	Old Definition	New Definition
Micro	Investment in plant and machinery does not exceed 25 lakh.	Investment in plant and machinery or equipment does not exceed 1 crore and turnover does not exceed 5 crore.
Small	Investment in plant and machinery more than 25 lakh but does not exceed 5 crore.	Investment in plant and machinery or equipment more than 1 crore but does not exceed 10 crore, and turnover does not exceed 50 crore.
Medium	Investment in plant and machinery is more than 5 crore but does not exceed 10 crore.	Investment in plant and machinery or equipment more than 10 crore but does not exceed 50 crore, and turnover does not exceed 250 crore.
Manufacturing Services	Investment in equipment not more than 10 lakh.	Investment in equipment not more than 2 crore.

Contribution of Small-Scale Industries to the Indian Economy

• The small-scale sector accounts for over 80% of the manufacturing sector’s employment. A total 120 million people are employed in this sector.
• It contributed significantly towards the econom growth of the nation, with over 39% of the industrial production.
• The small-scale accounts for over 34% of the to exports and about 45% of the manufacturing exports. Further, over 90% of exports of the SSis consists of non-traditional items like sports goods readymade garments, processed foods and chemicals, etc.
• Industries of a smaller scale are generally more labor-intensive, making efficient use of limited capital resources. They play a crucial role in mitigating wealth inequalities by distributing capital in smaller quantities and dispersing the surplus among a larger population.
• Small-scale industries contribute to the regional dispersal of economic activities, addressing regional imbalances. These industries effectively utilize local resources, including capital and entrepreneurial skills, which might have remained untapped without their presence.

Problem of small-scale industries

• The small industry sector has significantly contributed to the country’s industrial growth and diversification.
• However, these industries face challenges such as inadequate access to quality raw materials, irregular power supply, difficulty in securing loans due to a lack of substantial security, and limitations in marketing support.
• Additionally, the reliance on traditional production methods sometimes results in goods of inferior quality, and the focus on producing artistic goods with limited demand can hinder scalability. 
• Small-scale industries also encounter competition from larger counterparts, which benefit from economies of scale, leading to lower production costs.

Cottage and village industries offer unique characteristics:

• Cottage Industries: Run by family members on a full or part-time basis. Involves negligible capital investment.
• Utilizes handmade production with tools and materials owned by the family.
• Village Industries: Established in rural areas with a population below 10,000.
• Fixed capital investment per worker is less than 15,000.
• Distinguishing features between cottage and small-scale industries include their location (rural vs. urban), ownership (family-run vs. hired laborers), capital investment (minimal vs. up to 5 crores), and the nature of goods produced (traditional vs. modern).

Some notable small-scale industries include:

• Handicrafts and Handloom Industry: A traditional weaving craft that represents and preserves Indian culture.
• The handloom industry is diverse, ranging from traditional handwoven to capital-intensive mill sectors, contributing significantly to the textile industry’s output. In FY 2020, the total cloth production through various techniques was approximately 76.29 billion sq m.
• The Indian Textile and Apparel Industry is poised for a 10% Compound Annual Growth Rate (CAGR) from 2019-20, aiming to reach $190 billion by 2025-26. India currently commands a 4% share in the global textile production.
• The sector welcomes 100% Foreign Direct Investment (FDI) through the automatic route, fostering international collaboration. A Production Linked Incentive (PLI) scheme, valued at 10,683 crores ($1.44 billion), has been initiated for man-made fiber and technical textiles over a five-year period.
• In an effort to streamline taxation, the government has implemented a uniform Goods and Services Tax (GST) rate of 12% on man-made fabrics (MMF), MMF yarns, and apparel, effective since January 1, 2022. Notable government initiatives include:
  • GeM Portal: A focus on onboarding handloom weavers and handicraft artisans on the GeM portal.
  • Promoting Handloom Products: Mandating all government departments to procure handloom products for their textile requirements.
  • Exhibition: Organizing large-scale exhibitions featuring handloom and handicraft awardees to celebrate their accomplishments.
  • Prime Minister as the Biggest Brand Ambassador: The Prime Minister actively promotes Indian art and crafts, often choosing handloom and handicraft items as gifts during foreign visits.
  • Har Ghar Tiranga Campaign: Encouraging participation in the campaign to mark the 75th year of India’s independence.
  • Design Resource Centres: Inaugurating Design Resource Centres in Indore, Kolkata, Nagpur, Meerut, and Panipat.
  • Sant Kabir and National Handloom Awards: Recognizing outstanding weavers contributing to the preservation of handloom heritage.

Handloom-related schemes include:

• National Handloom Development Programme (NHDP): A need-based approach for holistic development and welfare of handloom weavers.
• Yarn Supply Scheme (YSS): Providing quality yarn to eligible handloom weavers at subsidized rates.
• Handloom Weavers’ Comprehensive Welfare Scheme: Offering life, accidental, and disability insurance coverage to handloom weavers/workers.
• Weaver MUDRA Scheme: Providing credit at a concessional interest rate of 6% to handloom weavers.
• Urban Haat: Establishing marketing facilities in big towns/metropolitan cities to benefit craft persons and weavers.
• Design and Technology Upgradation (DTU): Focused on upgrading artisan skills, developing innovative designs, and prototyping products for overseas markets.

12-Point Action Plan for Micro

• In tandem, the government launched a 12 Point Action Plan for Micro, Small, and Medium Enterprises (MSMEs), demonstrating its commitment to supporting this vital sector.
• the props then me ineludes 12 key initiatives which help growth, and expansion MSMEs across the country

Key Initiatives of the Action Plan

Initiative	Description
59 Minutes Loans	The GST registered Micro, Small and Medium Enterprises (MSMEs) will be sanctioned a loan of 1 crore in just 59 minutes through a new portal.
Rebate in Interest Rate	The GST-registered MSMEs will get 2% subvention or rebate on incremental new loans of up to 1 crore. Interest subvention on pre and post-shipment credit for exports by MSMEs has also been increased from 3% to 5%.
Cash Flow Certainty	It is now mandatory for companies with a turnover of more than 500 crore to join Trade Receivables e-Discounting System (TREDS), so that MSMEs do not face trouble in cash flow.
Procurement by PSUs	Public sector companies, which were mandated to source 20% of their annual procurement from MSMEs, will now source at least a quarter of their requirement (25%) from the sector.
Women Entrepreneurs	Out of the 25% procurement mandated from MSMEs, 3% must now be reserved for women entrepreneurs.
Government Marketplace (GeM)	All central public sector enterprises will have to take membership of the GeM to facilitate online procurement of common use of goods and services by various government departments and organizations.
Technological Upgradation	The government announced ₹ 6,000 crore package to facilitate better technological support and tools to small industries. The money will be used for 20 hubs and 100 tool rooms for technology upgradation.
Pharma Companies	The government will form MSME pharma clusters. 70% cost of establishing these clusters will be borne by the government.
One Annual Return	MSMEs will have to file just one annual return on eight labour laws and 10 central rules.
No More Inspector Raj	Inspections of factories in the MSME sector will be sanctioned only through a computerised random allotment and inspectors will have to upload reports on the portal within 48 hours.
Relaxation in Environmental Clearances	MSMEs will now need single air and water clearance and just one consent to establish a factory.
Ordinance in Companies Act	An ordinance has been promulgated to simplify the levy of penalties for minor offences under the Companies Act.

Government Initiatives to Promote Small-Scale Industries

• The government took significant steps to foster the growth of small-scale and cottage industries shortly after gaining independence.
• Recognizing the importance of these industries, their promotion was highlighted in the inaugural Industrial Policy Resolution of 1948 and consistently reiterated in subsequent industrial policy statements.
• Government measures for the development of these industries encompassed organizational, financial, fiscal, and technical domains.

Organizational Measures

• Establishment of Boards: Several boards were formed at the all-India level to establish an organizational framework for promotional efforts. These boards included the Cottage Industries Board, Handloom Board, Handicraft Board, Khadi and Village Industries Board, among others.
• Industrial Estates: The policy to create Industrial Estates was inaugurated in 1955. It aimed to construct factory premises and provide essential facilities such as power, water, and roads.
• District Industries Centre (DIC): The DIC concept was introduced in the Industrial Policy Statement of 1977. Launched in 1979, this program aimed to address all the requirements of small-scale and village industries under a single roof.

Financial Measures

Financial measures included:

• Small Industries Development Fund (SIDF): Established in 1986, the SIDF provided refinance assistance to financial institutions in exchange for their lending to Small Scale Industries (SSIs). This support aimed at the development, expansion, modernization, and rehabilitation of SSIs. 
• National Equity Fund (NEF): Instituted in 1987, the NEF provided initial capital in the form of equity (shares) for new projects in the small-scale sector.
• Single Window Scheme (SWS): Introduced in 1988, this scheme aimed to provide both short-term and long-term financial assistance to Small Scale Industries (SSIs).
• Small Industries Development Bank of India (SIDBI): Established in October 1989, SIDBI emerged through the amalgamation of the Small Industries Development Fund (SIDF) and National Equity Fund (NEF). As the apex financial institution for the small enterprises sector, SIDBI plays a crucial role.

Fiscal Measures

• Small scale enterprises with a turnover of up to 1 crore are fully exempted from excise duty.
• Concessional rates of customs duties are applied to the import of specific raw materials and components used by SSIs.
• Price and purchase preference is granted to products manufactured in the small scale sector in government purchase programs.

Technical Measures

• Small Scale Industries Development Organisation (SIDO): Established in 1954, SIDO provides technical, managerial, economic, and marketing assistance to SSIs through its network of extension centers and service institutes.
• Council for Advancement of Rural Technology (CART): Founded in 1982, CART provides technical assistance to rural industries.
• Technology Development and Modernisation Fund (TDMF): Established for the technological upgradation and modernization of export-oriented units.

Government e-Marketplace

• GeM is a one-stop National Public Procurement portal facilitating online procurement of common goods and services required by various Central and State Government Departments/Organizations/Public Sector Undertakings (PSUs).
• The procurement of goods and services by Ministries and Central Public Sector Enterprises (CPSEs) is mandatory on GeM.
• GeM provides tools for e-bidding and reverse e-auction to help government users achieve the best value for their money. Launched in 2016, it aims to bring transparency and efficiency to the government buying process.

Board for Reconstruction of PSEs

• The Board for Reconstruction of Public Sector Enterprises (BRPSE) was established in December 2004 as an advisory body to guide the government on strategies, measures, and schemes for strengthening, modernizing, reviving, and restructuring public sector enterprises.
• BRPSE’s functions include advising the government on ways to strengthen public sector enterprises, considering restructuring proposals, examining proposals for revival/restructuring of sick/loss-making CPSEs, advising on disinvestments or closure of unviable companies, and monitoring incipient sickness in CPSEs.
• To guide the government on additional matters as delegated to it periodically.

National Manufacturing Competitiveness Programme (NMCP)

• The NMCP, designed for Micro, Small, and Medium Enterprises (MSMEs), strives to boost the competitiveness of enterprises within this sector. Its ten approved components for MSMEs include:
  • Lean Manufacturing Competitiveness Scheme (LMCS).
  • Design Clinics Scheme for providing design expertise to MSMEs in the manufacturing sector.
  • Marketing assistance and technology upgradation scheme for MSMEs.
  • Enhancing competitiveness through Quality Management Standards (QMS) and Quality Technology Tools (QTT).
  • Technology for quality upgradation support for MSMEs.
  • Promotion of Information and Communication Technology (ICT) in the MSME sector.
  • Establishing mini tool rooms and training centers under PPP Mode.
  • Marketing assistance or support to Micro and Small Enterprises (MSEs) (Bar Code).
  • Building awareness on Intellectual Rights for MSMEs.
  • Support for ‘Entrepreneurial and Managerial Development of SMEs through Incubators.’

Procurement Policy

• The government has sanctioned a public procurement policy for Micro and Small Enterprises (MSEs), requiring that Central Ministries, Departments, or PSUs procure a minimum of 20% of their total annual purchases from MSEs.
• Within this, a 4% share must be reserved for MSEs owned by SCs/STs entrepreneurs. Ministries, Departments, or PSUs are obligated to set a goal of 30% procurement in their annual plans and specify it in their reports, fostering market access and competitiveness for MSEs through increased involvement in government purchases and encouraging collaborations between MSEs and larger enterprises.

Credit Linked Capital Subsidy Scheme for Micro and Small Enterprises (MSES)

• This scheme is geared towards facilitating technology upgradation of MSEs by offering a 15% capital subsidy (limited to a maximum of 15 lakh) for the acquisition of plant and machinery.

Reservation of Items for SSIs

• Initiated in 1967, this policy aims to shield Small Scale Industries (SSIs) from competition with larger units by reserving specific items for the small-scale sector. Initially encompassing 47 items, this list expanded in phases to include 873 items by 1984.

New Small Enterprise Policy, 1991

• Announced on August 6, 1991, this separate industrial policy for the small enterprise sector introduced several features, such as raising the investment ceiling for the ‘tiny sector’ from 2 lakh to 5 lakh, allowing large units (including foreign firms) to purchase up to 24% equity of SSIs, enlarging the scope of the tiny sector to include all industry-related service and business enterprises, and introducing a new legal form of business organization called limited partnership.

Current Policy on SSIS

• The Task Force on micro, small, and medium enterprises, presented to the Honorable Prime Minister on January 30, 2010, outlines a roadmap for the development and promotion of MSMEs.
• The comprehensive recommendations encompass six major thematic areas: credit, marketing, labor, rehabilitation and exit policy, infrastructure, technology and skill development, and taxation, along with special measures tailored for the Northeastern region and Jammu and Kashmir.

Abid Hussain Committee Report

•  Formed by the Government of India, the Abid Hussain Committee was tasked with proposing measures to enhance the performance of small-scale industries. The committee presented its report in 1997.

Meera Seth Committee Report

•  Focused on the developments in the handloom industry, the Meera Seth Committee submitted its report in 1997, recommending the creation of a national handloom fund amounting to 500 crores.

Vision 2022 – 

• NITI Aayog unveiled a document to accelerate economic growth to 9-10% and elevate the country to a $4 trillion economy by 2022-23.
• The document outlines the strategy for 2022-23 across 41 areas, each chapter comprising objectives for 2022, progress made, binding constraints, and the way forward. It was crafted through extensive consultations with over 800 stakeholders from various government levels.
• The document is organized into four sections: Drivers, Infrastructure, Inclusion, and Governance.

Industrial Sickness

• The government initially defined industrial sickness in the Sick Industrial Companies (Special Provisions) Act, of 1985.
• According to the Act, a medium or large (non-SSI) company was considered sick if it was registered for at least seven years (later reduced to five years), experienced cash losses in the current and preceding years, and had its entire net worth (paid-up capital and reserves) eroded.
• A company was deemed weak or incipiently sick if it suffered a 50% erosion of its peak net worth during any of the preceding five financial years. Industrial sickness has been addressed in the Companies (Second Amendment) Act, of 2002, and the Companies Act, of 2013.
• Causes of industrial sickness can be classified into two categories: internal causes originating within the unit, and external causes beyond the control of the unit.

Revival of Sick Units

• To revive sick industrial units, the government implemented various measures:
• Industrial Investment Bank of India (IIBI)
• Established in 1971 as the Industrial Reconstruction Corporation of India (IRCI), it aimed to revive and rehabilitate sick units by providing financial, managerial, and technical assistance.
• In 1985, IRCI became the Industrial Reconstruction Bank of India (IRBI) and was later converted into a statutory corporation. In 1997, it evolved into the Industrial Investment Bank of India (IIBI).

Board for Industrial and Financial Reconstruction (BIFR)

• Created in 1987 under the Sick Industrial Companies (Special Provisions) Act (SICA), the BIFR is an autonomous quasi-judicial body empowered to make final decisions regarding the revival and rehabilitation or winding up of sick units. A sick or weak unit must refer itself to the BIFR. On receipt of such reference, the Board ascertains whether the company is indeed sick.m
• If sickness is confirmed, the Board may allow the company some time to make its net worth positive on its own, prepare a revival and rehabilitation package, or wind up the unit.

Corporate Social Responsibility (CSR)

• As per the Corporate Social Responsibility (CSR) provision, any company with a net worth of 500 crores or more, turnover of 1000 crores or more, or a net profit of 5 crores or more in any financial year is mandated to establish a CSR committee.
• The CSR committee will develop a Corporate Social Responsibility (CSR) Policy, and the company is required to allocate at least 2% of the average net profits made during the three immediately preceding financial years to implement its CSR Policy.

Index of Industrial Production (IIP)

• The Index of Industrial Production (IIP) serves as an indicator of the level of industrial activity in the country. The All India IIP is a composite indicator measuring short-term changes in the volume of production of a basket of industrial products relative to a chosen base period.
• Published monthly by the Central Statistics Office (CSO) with a time lag referencing the previous month, the IIP, based on 2004-05 as the reference base, is a leading indicator for assessing industrial performance. Compiled into three broad groups—mining, manufacturing, and electricity—the current IIP series includes 399 products or product groups.
• The IIP index reflects both the level of production and its growth. In 2011, the CSO of the Ministry of Statistics and Programme Implementation (MoSPI) introduced a new series with 2004-05 as the base year, replacing the previous series with 1993-94 as the base.

Core Sectors

• The core sectors encompass eight key industries that carry a weightage of 40.27% in the IIP. These sectors are coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity.
• The weightage of core industries is distributed as follows:
  • Coal (8.98%)
  • Crude Oil (5.22%)
  • Natural Gas (2.63%)
  • Fertilizers (4.92%)
  • Steel (6.88%)
  • Cement (19.85%)
  • Electricity (28.04%)

Other Indexes

• Capacity Utilization (CU) is a crucial metric for assessing demand and investment prospects in the economy. CU rates effectively monitor the pace of manufacturing activities.
• The growth rate of the IIP manufacturing index and capacity utilization offers insight into the demand conditions for India’s manufacturing sector. Another indicator of economic optimism is the Reserve Bank of India’s (RBI) Business Expectation Index (BEI), which gauges demand conditions by considering the overall business situation, production, order books, inventory of raw material and finished goods, profit margin, employment, exports, and capacity utilization.

Purchasing Managers Index (PMI)

• The PMI serves as a composite index derived from surveys conducted with purchasing managers across the country, chosen for their geographical and industry diversification. In India, the widely followed PMI, prepared by HSBC, is known as the India Manufacturing PMI. The system comprises five sub-indexes and their respective weights:
  • New orders (0.3),
  • Output (0.25),
  • Employment (0.2),
  • Suppliers’ delivery times (0.15),
  • Stock of items purchased (0.1).
• A PMI exceeding 50 indicates expansion in the manufacturing sector compared to the previous month, while a reading below 50 represents contraction, and a reading at 50 suggests no change.

India’s Manufacturing Sector

• Despite the Eleventh Plan targeting manufacturing growth at 10-11%, the actual performance was around 7.7%. The manufacturing sector’s inability to match the dynamism of the overall economy, not only in the Eleventh Plan but also in preceding periods, is a matter of concern. In India, the manufacturing sector contributes only 15% to GDP, significantly lower than China’s 34% and Thailand’s 40%. The slow growth in manufacturing is deemed unacceptable at this stage of India’s development, where manufacturing should offer a substantial portion of additional employment opportunities, especially for the growing youth population.

Challenges in Developing a Manufacturing Strategy:

• Multiple ministries handling various industry aspects, create coordination challenges.
• States play a crucial role in infrastructure provision and managing local regulations.
• Influence of industry associations lobbying for conflicting interests.
• Involvement of stakeholder groups like unions and landowners requires more systematic consultation.
• Overlapping oversight bodies and committees necessitate clearer roles and improved coordination.

National Manufacturing Plan as Suggested by the Twelfth Plan

• The strategic objectives for India’s manufacturing sector over the next 15 years aim to bring about quantitative and qualitative changes through five key objectives:
• Increase manufacturing sector growth to 12-14% over the medium term, making it the economic growth engine.
• Achieve a 2-4% differential over the overall economy’s growth rate, contributing at least 25% to GDP by 2025.
• Generate 100 million additional jobs by 2025, emphasizing inclusive growth through appropriate skill development.
• Increase domestic value addition and technological depth.
• Enhance global competitiveness through supportive policies.
• Ensure sustainable growth, particularly about the environment.

National Manufacturing Policy, 2011 (NMP)

The major objectives of the NMP include:

• Elevating the sectoral share of manufacturing in GDP to at least 25% by 2022.
• To elevate the rate of job creation and generate 100 million additional jobs by the year 2022,
• To enhance global competitiveness, domestic value addition, technological depth, and environmental sustainability of growth,
• National Investment and Manufacturing Zones (NIMZs) are established to provide a conducive environment for individuals transitioning from the primary to the secondary and tertiary sectors. These zones create large integrated industrial townships with state-of-the-art infrastructure, zoning-based land use, and clean and energy-efficient technologies.
• The objectives of NIMZs include ensuring compliance with labor and environmental laws, simplifying and rationalizing procedures to reduce the regulatory burden on the industry, and fostering an enabling environment for harnessing the potential of the private sector and the entrepreneurial skills of the younger population.

Highlights of the National Manufacturing Policy:

• Establishment of NIMZs with a minimum land area of 5000 hectares for each zone.
• The first phase of NIMZs will be set up along the Delhi-Mumbai industrial corridor.
• NIMZs will be managed by a Special Purpose Vehicle (SPV) led by a government official and experts, including environmental specialists.
• These industrial townships will be self-governing and autonomous bodies with a single-window clearance system to improve the regulatory environment.
• The Central Government will create an enabling policy framework and provide incentives for infrastructure development through public-private partnerships, while State Governments will identify suitable land and become equity holders in the NIMZs.
• The SPV administering the NIMZ will establish skill development centers on a build-own-operate basis, with the private sector receiving a standard deduction of 150% of expenditure for skill development institutes.
• To protect labor interests in cases of unit closure, the policy introduces a mechanism for a fund to insure workers against such losses.
• Emphasis on green manufacturing includes setting up a Technology Acquisition Fund to acquire global technologies, especially for equipment manufacturing aimed at reducing energy consumption.
• Environmental clearances will adhere to existing rules, with priority processing for manufacturing zones, facilitated by designated officials from the State Pollution Control Board.
• Industrial Corridor: Recognizing the interdependence of different sectors in an economy, industrial corridors offer effective integration between industry and infrastructure.
• These corridors feature world-class infrastructure, including high-speed transportation networks, modern ports, airports, special economic regions, logistic parks, knowledge parks, complementary infrastructure like townships, and other urban infrastructure, all supported by an enabling policy framework.
• The Government of India has approved for the development of 11 industrial corridors, comprising 32 projects, organized into four phases.
• The existing list of industrial corridors includes:
  • Delhi-Mumbai Industrial Corridor (DMIC)
  • Chennai-Bengaluru Industrial Corridor (CBIC)
  • Extension of CBIC to Kochi via Coimbatore
  • Amritsar-Kolkata Industrial Corridor (AKIC)
  • Hyderabad-Nagpur Industrial Corridor (HNIC)
  • Hyderabad-Warangal Industrial Corridor (HWIC)
  • Hyderabad-Bengaluru Industrial Corridor (HBIC)
  • Bengaluru-Mumbai Industrial Corridor (BMIC)
  • East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC) as Phase 
  • Odisha Economic Corridor (OEC)
  • Delhi-Nagpur Industrial Corridor (DNIC)
• The development of these projects will be overseen by the National Industrial Corridor Development and Implementation Trust (NICDIT).
• These corridors span across India, strategically focused on inclusive development to boost industrialization and planned urbanization.

Delhi-Mumbai Industrial Corridor (DMIC):

• This mega infrastructure project, spanning 1483 km between Delhi and Mumbai, is funded by the Government of India, Japanese loans, investments by Japanese firms, and through Japan depository receipts issued by Indian companies.

Chennai-Bengaluru Industrial Corridor (CBIC):

• Proposed for accelerated growth, regional industry agglomeration in Tamil Nadu, Karnataka, and Andhra Pradesh, CBIC aims to develop a well-planned and efficient industrial base, improving transportation logistics, delivery times, and reducing inventory costs.

Bengaluru-Mumbai Industrial Corridor (BMIC):

• Intended to facilitate the development of a well-planned and resource-efficient industrial base across Karnataka and Maharashtra, BMIC focuses on sustainable connectivity infrastructure, bringing significant benefits in innovation, manufacturing, job creation, and resource security

Intellectual Property Rights:

• Intellectual property encompasses intangible assets protected by legal ownership, preventing unauthorized use. Types include trademarks, patents, and copyrights, with infringement occurring when a third party engages in unauthorized use.

Types of Intellectual Property:

Patents:

• Property rights for an invention granted by a government agency.
• Provides exclusive rights to inventors for designs, processes, improvements, or physical inventions.
• Companies, especially in technology and software, often hold patents for their designs.

History of Patents:

• The history of patent law in India dates back to 1911 with the enactment of the Indian Patents and Designs Act. The Patents Act, of 1970, currently governs patents in India.
• The Indian Patent Act was enacted in 1972 and is overseen by the Controller General of Patents, Designs, and Trade Marks (CGPDTM). The patent office, headquartered in Calcutta, has branches in New Delhi, Chennai, and Mumbai, with the CGPDTM office based in Mumbai.
• Copyrights grant exclusive rights to authors and creators of original material, allowing them to use, copy, or duplicate their work. Book authors and musical artists often secure copyrights for their creations.
• A trademark is a recognizable symbol, phrase, or insignia representing a product, legally distinguishing it from others. Exclusive ownership is granted to the company, preventing unauthorized use or copying.
• Trade secrets are undisclosed practices or processes providing economic benefit to a company. Actively protected by the company, trade secrets are not public information.

Some Large Scale Industries:

Iron and Steel Industry:

• Steel, symbolizing strength and India’s future glory, was emphasized by Jawaharlal Nehru. The Rourkela integrated Steel Plant, the first publicly owned steel plant, was established in 1954 with German collaboration.
• The Indian steel industry, characterized by modern, state-of-the-art mills, focuses on continuous modernization and energy efficiency. The development of the industry began in the first Five Year Plan, and integrated projects in Bhilai, Rourkela, and Durgapur started during the second FYP.
• In the third FYP, Bhilai expansion began, and during the fourth FYP, Salem, Vizag, and Vijayanagar plants were initiated. The Steel Authority of India Limited (SAIL), established in 1974, played a vital role in the industry’s development.
• India became the world’s second-largest steel producer in 2019, surpassing Japan. In 2021, guidelines for the Production Linked Incentive (PLI) scheme were announced. India and Russia signed an MoU for R&D in the steel sector and coking coal production.

Vision and Objectives of National Steel Policy, 2017:

• The policy aims to create a technologically advanced and globally competitive steel industry for economic growth. Objectives include building a globally competitive industry, increasing per capita steel consumption to 160 kgs by 2030-31, and meeting the entire demand for specific steels domestically by 2030-31.
•  Reduce import dependence on coking coal from 85% to 65% by 2030-31 by increasing domestic availability of washed coking coal.
•  Expand global presence in value-added/high-grade steel.
•  Promote industry leadership in energy-efficient and environmentally sustainable steel production on a global scale.
•  Establish the domestic steel industry as a cost-effective and high-quality producer.
•  Achieve global standards in Industrial Safety and Health.
•  Substantially decrease the carbon footprint of the steel industry.

Steel Development Fund:

• The Steel Development Fund (SDF), established in 1978 for steel industry development and rehabilitation, is allocating ₹606 crore to fund 89 research projects, involving ₹318 crore of SDF.

Mission Purvodaya:

• Launched on February 28, 2020, Mission Purvodaya targets the development of the Eastern region of India, focusing on states like Odisha, Jharkhand, Chhattisgarh, West Bengal, and North Andhra Pradesh. The goal is to produce around 200 million tonnes of steel and develop a steel production capacity of 300 million tonnes by 2030-31. The Ministry of Steel collaborates with the Confederation of Indian Industry (CII) and the Joint Plant Committee (JPC) for the Integrated Steel Hub development plan.

Cotton and Synthetic Textile Industry:

• Accounting for 20% of industrial output, employing 20 million people, and contributing 33% to total export earnings, the Indian textile industry is predominantly cotton-based (65%). The Scheme for Integrated Textile Park (SITP), launched in July 2005, merged the Apparel Parks for Export Scheme (APES) and the Textile Centre Infrastructure Development Scheme (TCIDS). India holds the second position in Global Textiles Exports (2019), with a 25% increase in global textiles share in 2019. The SATHI initiative, launched in October 2017, provides power looms, motors, and repair kits in bulk without upfront costs.

Jute Industry:

• Started in 1885, India is the largest producer and the second-largest exporter of jute globally. The Jute Technology Mission and the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1997, aim to broaden jute usage.

Sugar Industry:

• India is the world’s largest sugar producer with a 22% share. The Statutory Minimum Price (SMP) of sugar is determined by the government based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), state governments, sugar industry associations, and cane growers.

Cement Industry:

• Established in 1914, the stable foundation of the Indian cement industry was laid by the Indian Cement Company Limited in Porbandar, Gujarat. Distribution-related restrictions on cement were lifted in 1986, and it was exempted from licensing in 1991 under the Industrial (Development and Regulation) Act, 1951. India ranks as the world’s second-largest cement producer, with a per capita consumption of just 68 kg.

Petrochemical Industry:

• The Indian Petrochemical Corporation Limited in Baroda played a crucial role in giving momentum to the petrochemical industry. Comprising synthetic fibres, polymers, elastomers, synthetic detergents, and performance plastics, this industry relies on natural gas and naphtha as its primary sources of feedstock and fuel. The National Policy on Petrochemicals, announced in 2007, aims to increase investment, demand, and achieve environmentally sustainable growth.

Fertiliser Industry:

• The first fertiliser industry was established in 1906 in Ranipat near Chennai. India fulfills 85% of its requirement through indigenous production but is largely import-dependent for phosphorus and potassium fertilisers. Ranking as the second-largest global producer after China, India implemented the Nutrients Based Subsidy (NBS) policy from April 1, 2010, covering NPK and Sulphur.

Automobile Industry:

• The Indian automotive industry is the fourth-largest in the world as of 2021 and became the fourth-largest by valuation in 2022. India ranks as the third-largest automobile market globally, surpassing Japan and Germany in sales. Cumulative equity FDI inflow of about US$ 33.53 billion occurred in the automotive sector from April 2000 to June 2022. The government anticipates the sector to attract US$ 8-10 billion in local and foreign investments by 2023. The Automotive Mission Plan 2016-26 is a collaborative initiative to guide the industry’s development over the next decade. India is the second-largest motorcycle and fifth-largest commercial vehicle manufacturer globally. The automotive industry was delicensed in July 1991, with passenger cars delicensed in 1993, making India the largest tractor manufacturer worldwide.

Objectives of Automotive Mission Plan (AMP) 2026:

• “Make in India”: The primary objective is to position the Indian automotive industry as a driving force behind the “Make in India” initiative.
• “Skill India”: The aim is to make the Indian automotive industry a substantial contributor to the “Skill India” program, playing a pivotal role in job creation within the Indian economy.
• Safe, Efficient, and Comfortable Mobility: Focusing on promoting safe, efficient, and comfortable mobility for every individual in the country, emphasizing environmental protection and affordability through both public and personal transport options.
• Increase in Net Exports: The plan targets a significant increase in net exports from the Indian automotive industry.
• Comprehensive Policy Framework: Recognizing the need for a comprehensive and stable policy dispensation to support the sustainable growth of the automotive sector.

Aluminum Industry:

• The aluminium industry stands as the second most crucial metallurgical industry in India.
• Aluminium has gained popularity as a substitute for steel, copper, zinc, and lead in various industries due to its lightweight nature, corrosion resistance, excellent heat conductivity, malleability, and increased strength when alloyed with other metals.
• The country houses eight aluminum smelting plants located in Odisha (formerly Orissa) (Nalco and Balco), West Bengal, Kerala, Uttar Pradesh, Chhattisgarh, Maharashtra, and Tamil Nadu.
• The National Aluminium Company Ltd. (NALCO), located in Koraput, is the largest aluminum plant in the country. The government presently holds a 51.28% stake in its paid-up equity capital.
• NALCO obtains bauxite from the mines at Panchpatmali (District Koraput) and has an installed capacity of producing 1.6 million tonnes of ingots per year.
• There is an alumina refinery at Damanjodi (District Koraput) and an alumina smelter at Angul, utilizing hydroelectricity from the Angul Power Plant and port facilities in Vishakhapatnam for export purposes.
• The Central Government has disinvested about 45% of NALCO’s share, contributing close to 30% of the total Gross Value Added (GVA).
• Recent national accounts data, using 2011-12 as the base year, indicates a notable industrial growth rate of Gross Capital Formation, particularly in 2015-16 at 11.1%. Subsequent years, up to January 2020, saw growth rates of 5.9% in 2017-18 and 6.9% in 2018-19.

Economic Reforms:

• Economic reforms, introduced under the New Economic Policy (NEP) as a comprehensive package by the government, aimed to revive the growth process that had hit a low point by 1991. These reforms encompass two key parameters: Macroeconomic Stabilisation Policy and Microeconomic Structural Adjustment Programmes.

Macroeconomic Stabilisation Policy:

• These measures are pervasive, affecting the entire economy, and include a review of Monetary Policy, Fiscal Policy, and Exchange Rate Policy.
• The primary focus was to address crises of confidence related to the government’s ability to manage the country’s dwindling Balance of Payment (BoP) status, especially in repaying loans taken from the rest of the world.
• Major stabilization measures in India included the devaluation of the Indian currency in 1991 and a shift in the exchange rate regime from a crawling peg towards a more market-determined one, albeit with some level of management.
• Removal of quantitative restrictions on imports.
• Rationalization of the tariff structure, reduction in the number of tariff rates, and the peak rate of the tariff has been reduced from around 400% to 12.5% for non-agriculture products.

Microeconomic Structural Adjustment Programs:

• These programs focus on inducing structural changes in the economy, impacting various sectors.
• Reforms span across Industrial Policy, Trade Policy, Public Sector Policy, Price Policy, and Tariff Policy.
• It’s crucial to note that while macroeconomic measures aim at short-term corrections for overall system imbalances, microeconomic adjustments are long-term strategies to enhance efficiency and productivity across diverse economic sectors.

Major Structural Adjustment Programs (SAP) in India:

• Industrial deregulation, public sector reforms, industrial delicensing, and the removal of restrictions have paved the way for industrial expansion. The introduction of Public-Private Partnerships (PPP) has played a pivotal role in infrastructure development and financial sector reforms.
• Initiatives like removing constraints on inter-state movement of foodgrains, restructuring the Public Distribution System (PDS), relaxing Essential Commodities Act restrictions, introducing forward trading in most agricultural commodities, and removing marketing constraints on crop produce have been undertaken.

Special Economic Zones (SEZs):

• SEZs are explicitly delineated as territories deemed foreign for trade operations, duties, and tariffs.
• The Draft Direct Tax Code (DTC) Bill 2022 has been proposed to replace the Special Economic Zone (SEZ) Act, 2005.

Performance Indicators:

• Exports from SEZs surged from INR 22,840 crore in 2006 to INR 7.59 trillion in FY21.
• 2.35 million jobs were created, and total investments soared to INR 6.5 trillion in FY21.
• In the April to December 2021 period, SEZ exports rose by 25% to USD 93 billion.

The Baba Kalyani Committee recommended:

• Renaming SEZs as 3Es (Employment and Economic Enclave).
• Shifting the framework from export growth to broad-based employment and economic growth.
• Establishing separate rules for manufacturing and service SEZs.
• Implementing Ease of Doing Business (EoDB) measures, including an integrated online portal for new investments.
• Extending the sunset clause and retaining tax benefits.
• Unifying regulation for the International Financial Services Centre (IFSC).
• Resolving disputes through arbitration and commercial courts.

Export Processing Zones (EPZs):

• EPZs are government-designated special economic zones aimed at promoting export-oriented businesses.
• Objectives include fostering export-oriented industrialization, providing a conducive environment for Export Processing Enterprises, generating employment, earning foreign exchange, promoting technological upgrades, and enhancing productivity in EPZs
• Additionally, EPZs are viewed as a strategy for achieving balanced regional development by attracting industries to less developed areas.
• EPZs also play a crucial role in a country’s economic development by creating job opportunities and contributing to foreign exchange earnings.
• They also facilitate technological upgrading and enhance productivity in Export Processing Enterprises.
• EPZs are perceived as a means of achieving balanced regional development by attracting industries to less developed areas.

Components of New Economic Policy/Economic Reforms

• The New Economic Policy was announced in July 1991, with the main components being Liberalisation, Privatisation, and Globalisation (LPG) of the economy.
• Reasons for Economic Reforms include:
  • Rising fiscal deficit
  • Adverse balance of payments
  • Decline in foreign exchange reserves
  • Increase in prices
  • International pressures
  • Poor performances of public sector enterprises

Liberalisation

•  Liberalization of the economy entails freeing producing units from direct or physical controls by the government.

Measures Taken for Liberalisation

• Industrial licensing has been abolished for all industries except five. In 2002, the MRTP Act was replaced by the more liberal Competition Act, 2002.
• Under the liberalization policy, industries not covered by industrial licensing are free to expand and produce without prior official approval.
•  The investment limit for small industries has been raised to 5 crores to enable modernization. The investment limit for tiny industries or micro-enterprises has also been increased to 25 lakh.
• Under the liberalization policy, Indian industries can freely purchase machines and raw materials from abroad to expand and modernize.

Privatization

•  “Privatisation is the general process of involving the private sector in the ownership or operation of a state-owned enterprise.”
•  It involves relinquishing government ownership or management of public sector enterprises. This can occur through outright sale to private entrepreneurs or withdrawing government ownership and management from mixed enterprises.

Measures Adopted for Privatisation

•  The number of industries reserved for the public sector has been reduced from 17 to only 3.
• Public sector industrial units are treated similarly to sick industries in the private sector. The Sick Industrial Companies Act, 1985, was amended in December 1991.
•  To improve the functioning of public sector enterprises, a Memorandum of Understanding (MoU) system has been introduced. This system grants more freedom to the management of public sector enterprises, making them accountable for results.
•  The National Renewal Fund was established to protect the interests of employees affected by privatisation. Employees were offered voluntary retirement under this scheme, with over 6 lakh employees seeking voluntary retirement from public sector units until March 2009.
• This fund is also utilized to provide social security measures for retrenched employees of PSUs.

Globalization

• Globalization refers to integrating a country’s economy with the economies of other countries in an environment of free flow of goods and services across borders.
• It is a process characterized by increasing openness, growing economic interdependence, and deepening economic integration with the world economy.
• Due to globalisation, it was anticipated that capital and technology would flow from developed countries into India, providing access to the benefits of global growth.

Measures Adopted for Globalisation

• Under economic reforms, the limit of foreign capital investment has been increased. In many industries, foreign direct investment of up to 100% has been allowed without restrictions and bureaucratic hurdles.
•  Partial convertibility of the Indian rupee was permitted to achieve globalisation objectives. This partial convertibility applies to transactions such as import and export of goods and services, payment of interest or dividends on investment, and remittances for family expenses. It does not cover capital transactions.
• All restrictions and controls on foreign trade have been eliminated, encouraging open competition. Administrative controls have also been minimized, and customs duties and tariffs on imports and exports are gradually being reduced.

Disinvestment

•  The New Industrial Policy of 1991 proposed disinvestment of a portion of government shareholdings in selected PSUs as a key element of public sector reforms.
• Disinvestment began in 1991-92 with the sale of minority stakes in some PSUs. Initially, the primary goal was to raise non-inflationary finance to address budgetary deficits.
• Since 1999, the focus of disinvestment shifted to strategic sales, involving the sale of a significant portion of government equity to private sector enterprises. This aimed to improve PSU performance and realign public investment.

Objectives of disinvestment include:

• Transferring resources from non-strategic to strategic sectors with higher social priorities like basic health, family welfare, primary education, etc.
• Raising funds to cover the government’s fiscal deficit.
• Enhancing efficiency in the public sector through private initiative and competition.
• Increasing accountability of PSUs by exposing them to the capital market.
• Reducing political interference by instilling market orientation.
• Bringing down government equity in non-strategic PSUs to 26% or lower, if necessary.
• Restructuring and reviving potentially viable PSUs.
• Closing down PSUs that cannot be revived.
• Fully protecting the interests of workers.

Disinvestment vs Privatisation

• Disinvestment involves selling equity of a Public Sector Undertaking (PSU) to a private organization or the general public. Privatisation, on the other hand, entails providing a larger role for private capital and enterprise in the economy.
• Privatisation is a broader term than disinvestment, with disinvestment being one means of achieving privatisation.
• Privatisation can result from various processes, including disinvestment, denationalisation (complete sell-off of a PSU), transfer of management and control to the private sector, and dereservation of areas initially reserved for the public sector.

The Disinvestment Process

• In 1992, the government formed a committee on the disinvestment of shares in PSUs, headed by Dr. C. Rangarajan, to recommend a disinvestment policy.
• The committee suggested that up to 49% equity of PSUs under exclusive state participation could be disinvested, while for other industries, disinvestment could be allowed up to 74%.
• Subsequently, a five-member Disinvestment Commission was established in 1996 to formulate a comprehensive policy for the long-term disinvestment program.
• The commission was tasked with advising the government on the extent, methodology, strategy, and timing of disinvestment.
• The National Common Minimum Programme adopted in May 2004 outlined the government’s policy on the public sector, indicating that profit-making PSUs would generally not be privatized. In cases of privatization of profitable PSUs, the government would retain at least 51% equity and management control.
• Navratna PSUs would remain in the public sector, while chronically loss-making companies would be sold off or closed, ensuring that workers receive their legitimate dues and compensation.
• Privatizations would be considered on a transparent and consultative case-by-case basis.
• A Board for Reconstruction of Public Sector Enterprises (BRPSE) was to be constituted.
• The National Investment Fund (NIF) was established in November 2005 to channel proceeds from the disinvestment of CPSUs, maintained outside the Consolidated Fund of India.
• NIF would be professionally managed, providing sustainable returns to the government. 
• Selected public sector mutual funds, including UTI Assets Management Company Limited, SBI Funds Management Company (Private) Limited, and Life Insurance Corporation Asset Management Company Limited, were appointed initially as fund managers.
• Seventy-five percent of NIF’s annual income would finance selected social sector schemes, promoting education, health, and employment. The remaining 25% would be utilized for the requirements of profitable and strategic PSUs to enhance their capital base for expansion and diversification.

National Monetisation Pipeline:

• The National Monetisation Pipeline, introduced by the Union Government in August 2021, serves as a mechanism to unlock the investment value in existing Brownfield public sector assets. 
• This four-year pipeline strategically leverages institutional and long-term capital to engage the private sector. 
• Through this initiative, the government aims to transfer project rights to the private sector without relinquishing ownership, primarily focusing on Brownfield projects in the Roads, Railways, and Power transmission sectors, with an indicative valuation of 6.0 lakh crore over four years.

Government Schemes Related to Industry:

Rajiv Gandhi Udyami Mitra Yojana:

• Under this scheme, designated lead agencies, Udyami Mitras, offer comprehensive guidance and support to registered potential entrepreneurs.
• Assistance encompasses project report preparation, securing finance, technology selection, and obtaining necessary approvals and clearances.
• Udyami Mitras plays a crucial role in aiding new entrepreneurs during the initial six months of enterprise establishment.

Credit Rating Scheme for Micro and Small Enterprises (MSES):

• Implemented by the National Small Industries Corporation (NSIC) in collaboration with credit rating agencies and the Indian Bank’s Association.
• Designed to provide performance and credit ratings for MSEs.
• Leading credit rating agencies, including CARE, CRISIL, Dun and Bradstreet, FITCH, ICRA, ONICRA, and SME Rating Agency of India Limited (SMERA), are empanelled to conduct ratings under this scheme.
• Aims to rejuvenate the manufacturing sector, viewed as a pivotal driver for sustainable high growth in the Indian economy.
• Targets a sustainable manufacturing growth rate of 10%.

Key Features:

• Attracting foreign companies to establish factories and invest in India’s infrastructure.
• Shifting from a services-driven growth model to labor-intensive manufacturing-driven growth, with the potential to create over 10 million new jobs annually.
• Identifying 25 key sectors, such as automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism, hospitality, wellness, and railways, where India can become a global leader.

Make in India:

• To address inquiries from business entities, a dedicated portal, www.makeinindia.com, has been established.
• The campaign attracted top executives from 3000 leading global companies, and Indian embassies worldwide actively participated.
• The Department of Industrial Policy and Promotion (DIPP) formed an eight-member expert panel to address grievances and queries from global and domestic investors within 24 hours.

Digital India:

• The Digital India initiative aims to transform the country into a digitally empowered social and knowledge economy, enhancing governance.
• An umbrella program consolidating existing schemes across ministries ensures electronic accessibility of services to citizens.
• Key projects and products include the Digital Locker System, Swachh Bharat Mission mobile app, E-sign framework, Online Registration System (ORS), Digitise India Platform (DIP), Bharat Net, and the Internet of Things (IoT) Centre of Excellence.

Startup India-Standup India:

• Launched on January 16, 2016, by Prime Minister Narendra Modi, the Startup India campaign promotes early-stage startups.
• Celebrating the entrepreneurial spirit and technological innovations, it fosters a strong ecosystem for startups across various industries.
• The Startup India Mission focuses on promoting bank financing for startup ventures, encouraging entrepreneurship, and creating jobs.

Startup India Mission:

• Announced on August 15, 2015, by Prime Minister Narendra Modi, the mission was officially launched on January 16, 2016.
• National Startup Day is celebrated on January 16 each year.
• The mission aims to minimize the role of states in policy matters and eliminate hurdles like license requirements, land permissions, foreign investment proposals, and environmental clearances.
• The Department of Industrial Policy and Promotion (DIPP) organized the Start-up India Mission. Key features of the mission include:
  • Single Window Clearance is facilitated through a mobile application.
  • A fund of funds amounting to ₹10,000 crore.
  • An 80% reduction in patent registration fees.
  • A revamped and more user-friendly Bankruptcy Code ensuring a 90-day exit window.
  • Exemption from inspections for three years.
  • No Capital Gain Tax for three years.
  • No tax on profits for three years.
  • Commencing with 5 lakh schools, targeting 10 lakh children for the innovation program.

Standup India Scheme:

• The Standup India scheme facilitates loans ranging from ₹10 lakh to ₹1 crore for the establishment of a greenfield enterprise. Key aspects of the scheme include:
  • Loans for manufacturing, services, or trading enterprises.
  • In the case of non-enterprise individuals, at least 51% shareholding and controlling stake held by either an SC/ST or women entrepreneur.
  • Launched by the Prime Minister on January 6, 2016, in Noida.
  • Composite loans between ₹10 lakh and ₹1 crore, inclusive of a working capital component.
  • Provision of a Rupay Debit Card for the withdrawal of working capital.
  • Development of the borrower’s credit history.
  • Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of ₹10,000 crore.
  • Creation of a ₹5,000 crore corpus for credit guarantees through the National Credit Guarantee Trustee Company (NCGTC).

Prelims Fact

• The oldest large scale industry of India is -Cotton Textiles (UKPSC (Pre) 2002, BPSC (Pre) 2016
• (IPR) in Concept of Joint Sector for the industrial development of India was envisaged in Industrial Policy Resolution -1956 (UPPSC (Mains) 2004)
• In the context of India’s Five Year Plans, a shift in the pattern of industrialisation with lower emphasis on Heavy industries and more on infrastructure begin in -Eighth Five Year Plan (IAS (Pre) 2010)
• Disinvestment in public enterprises started from which financial year? -1991 to 1992 [UPPSC (Pre) 2008]
• In which year in India, Liberal Industrial Policy (LIP) was adopted? -1991 [UPPSC (Pre) 2008]
• The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of -Curbing of the tax evasion by multinational companies. [IAS (Pre) 2016]
• Kandla, situated in the Gulf of Kutch, is well known for -Export (UPPSC (Mains) 2013. UPPSC (Pre) 2015)
• The first industrial policy of the Free India was announced in which year? -1948 [UP UDA/LDA (Mains) 2010)
• Which industry employs maximum number of people in India? -Textiles [UPPSC (Mains) 2011)
• The industry for which Nepanagar is known as -Newsprint paper (MPPSC (Pre) 1992, UPPSC (Pre) 2001]
• Rourkela Steel Plant (RSP) was established in collaboration with which country? -Germany (UPPSC (Mains) 2012]
• The first showroom in India of the retail furniture giant ‘Ikea’ was opened in which city in 2018? -Hyderabad (BPSC (Pre) 2019]
• India’s first sugar mill was established in the year 1903 at Pratappur (UPPSC (Mains) 2013]

UPSC NCERT Practice Questions

1.When was the first Industrial Policy resolution Taken? UPPSC (Pre) 2006

(a) 1956

(b) 1947

(c) 1948

(d) 1951

2. Which one of the following committees recommended the abolition of reservation of item of small scale sector in industry UPPSC (Pre) 2006

(a) Abid Hussain Committee

(b) Narsimhan Committee

(c) Nayak Committee

(d) Rakesh Mohan Committee

3. A labour intensive industry is one that

(a) require hard manual labour.

(b) pay adequate wages to the labour.

(c) employs more hands.

(d) provide facilities to labour.

4. What is/are the recent policy initiatives of Government of India to promote the growth of manufacturing sector?

1. Setting-up National Investment and Manufacturing Zones.

2. Providing benefits of single window clearance.

3. Establishing the Technology Acquisition and Development Fund.

Select the correct answer using the codes given below.

(a) 2 and 3

(b) 1 and 3

(c) 1 and 2

(d) All of these

5. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises?

1. The government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.

2. The government no longer intends to retain the management control of the CPSEs.

Select the correct answer using the codes given below.

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

6. Consider the following statements.

1. The World Investment Report is published by World Bank.

2. Bokaro Steel Limited was established with the assistance of Soviet Union.

Which of the statements) given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

7. The first industry to develop in India was the

(a) cottage industry

(b) cement industry

(c) iron and steel industry 

(d) engineering industry

8. Kandla, situated in the Gulf of Kutch, is well known for which of the following industries? UPPSC (Mains) 2013, UPPSC (Pre) 2015

(a) Ship-breaking industry

(b) Cutting and polishing of diamonds

(c) Export Processing Zone

(d) Traditional art and craft centre

9. Consider the following statements.

1. The first cement industry in India was the Indian Cement Company Limited.

2. The per capita consumption of cement in India is one of the highest in world

Which of the statements) given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

10. Consider the following statements.

1. India had no iron and steel industry at independence.

2. The first iron and steel industry in independent India was set-up in Rourkela.

Which of the statements) given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

11. In the ‘Index of Core Industries’, which one of the following is given the highest weight overlapping? UPSC (Pre) 2015

(a) Coal Production

(b) Electricity Generation

(c) Fertilisers Production

(d) Steel Production

12. Consider the following statements.

1. Privatisation of public sector units occurs, when government sells 5% of its share.

2. Abid Hussain Committee recommended the abolition of reservation of items of small-scale sector in industry.

Which of the statements) given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

13. Which one of the following is the correct sequence of economic sectors in terms of their contribution to the Gross Domestic Product (GDP) of India in decreasing order?

(a) Service, Industry, Agriculture

(b) Agriculture, Industry, Service

(c) Industry, Service, Agriculture

(d) Agriculture, Service, Industry

14. Consider the following statements about Micro, Small and Medium Enterprises (MSME) Act of 2020. UKPSC (Mains) 2020

1. The Government of India announced a revision in MSME definition in the Atmanirbhar Bharat Package on 13th May, 2020.

2. The change in definition is effective from 1st June, 2020.

3. The new definition has the same formula of classification for manufacturing and service units.

Codes

(a) 1 and 2

(b) 1 and 3

(c) 2 and 3

(d) All of the above

15. Consider the following statements with reference to India:

1. According to the ‘Micro, Small and medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between ? 15 crore and * 25 crore.

2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements given above is/are correct?

(a) Only 1

(b) Only 2

(c) Both 1 and 2

(d) Neither 1 nor 2

Know Right Answer

1 (a)

2 (c)

3 (c)

4 (d)

5 (d)

6 (b)

7 (a)

8 (c)

9 (c)

10 (a)

11 (b)

12 (b)

13 (a)

14 (b)

15 (b)

Frequently Asked Questions (FAQs)

Q1: Why are NCERT notes important for UPSC preparation in Indian Economy?

A1: NCERT notes are crucial for UPSC preparation in Indian Economy because they provide a solid foundation for understanding key economic concepts. The UPSC often draws questions from basic economic principles covered in NCERT textbooks. These notes offer a concise and clear overview of topics related to Indian Economy, ensuring aspirants have a comprehensive understanding of the subject.

Q2: How do Indian Economy NCERT notes cover the topic of Indian Industry?

A2: Indian Economy NCERT notes extensively cover Indian Industry by delving into its historical evolution, structural changes, and the impact of economic reforms. These notes also discuss various sectors such as manufacturing, services, and agriculture, along with government policies affecting industrial growth. By studying these notes, aspirants gain insights into the challenges and opportunities in the Indian industrial landscape, preparing them for UPSC questions related to the country’s economic development.

Q3: Can NCERT notes on the Indian Economy assist in current affairs preparation for UPSC?

A3: Yes, NCERT notes on Indian Economy play a vital role in current affairs preparation for UPSC. While the notes provide a foundational understanding of economic concepts, they also serve as a reference point for analyzing contemporary economic issues. By combining NCERT knowledge with updates from reliable current affairs sources, aspirants can form a well-rounded perspective on the evolving economic scenario in India, enabling them to answer UPSC questions with depth and accuracy.

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