UPSC Mains 2017 GS3 Q12 — Industrial Policy
"Industrial growth rate has lagged-behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period." Give reasons. How far the recent changes in Industrial-Policy are capable of increasing the industrial growth rate ? (Answer in 250 words)
Question Decoded — examiner's intent
- Directive verbs
- Give reasonsHow far
- Scope keywords
- Industrial growth ratelagged-behindpost-reform periodoverall growth of Gross-Domestic-Product (GDP)recent changes in Industrial-Policy
- Implicit sub-parts
- Briefly establish the 1991 context and provide data showing the gap between service-led growth and manufacturing/industrial growth.
- Explain structural constraints (infrastructure, labor, land) and policy bottlenecks that led to the industrial lag.
- Evaluate the specific pillars of the 'New Industrial Policy' framework (PLI, ease of doing business, Gati Shakti) against the aforementioned reasons.
- Assess the limitations or 'missing pieces' in recent policies that might still hinder the growth rate.
- Common pitfalls
- Focusing too much on the 1991 reforms rather than the performance 'post-reform' (the 2000s and 2010s).
- Writing a generic essay on 'Make in India' without explicitly linking policies back to the specific reasons for the 'lag' identified in the first part.
- Neglecting to mention the 'missing middle' (MSMEs) and the premature de-industrialization phenomenon in India.
- Failing to provide a balanced critique of whether recent policies are sufficient to overcome global headwinds like supply chain shifts and automation.
- Dimensions required
- Economic-StructuralInfrastructuralRegulatory/PolicyGlobal/MacroeconomicTechnological
- Marks allocation hint
Allocate approximately 100 words to the 'Reasons' section, focusing on 4-5 core structural issues. Use the remaining 150 words to evaluate recent policy changes, ensuring a clear 'how far' assessment that acknowledges both the potential of the PLI/Digital reforms and the persisting challenges of labor productivity and R&D.
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