Topic Details (Notes format)

Industrial Policy and Growth

Subject: Economics

Book: Comprehensive Indian Economy

India’s industrial policy has transitioned from a tightly controlled regime—featuring licenses and quotas—to one encouraging private enterprise and FDI. Key phases include the 1956 Industrial Policy Resolution, liberalization post-1991, and recent initiatives like “Make in India.” Core challenges involve infrastructure bottlenecks, labor law rigidities, and technology gaps. MSMEs form the backbone, generating significant employment, but require better credit access and modern managerial practices. Students should explore how industrial corridors, export promotion strategies, and skill development programs shape sectoral growth and global competitiveness, especially in manufacturing and innovation-led industries.

Practice Questions

What is “fiscal stimulus”?

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What is the objective of the Goods and Services Tax (GST)?

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What is the term for goods that are used together, such as cars and fuel?

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What is the term for the ability of an economy to produce more output from the same inputs?

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Which of the following is a feature of monopolistic competition?

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Which is the largest source of tax revenue for the Government of India?

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Which of the following is a feature of a command economy?

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What does the term “capital account” refer to in the balance of payments?

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What is meant by the term “current account deficit”?

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Which of the following is NOT an example of an indirect tax?

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