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

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

View Question

Which of the following is NOT an example of a direct tax?

View Question

Which of the following is NOT a component of Aggregate Demand?

View Question

What is “open market operations” (OMO)?

View Question

What does the term “elasticity of demand” measure?

View Question

What is the main feature of a free-market economy?

View Question

What is the main aim of Public Distribution System (PDS) in India?

View Question

What is meant by “credit rating”?

View Question

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

View Question

What is the primary purpose of Special Economic Zones (SEZs)?

View Question