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 meant by “marginal propensity to consume”?

View Question

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

View Question

What is the “law of diminishing marginal utility”?

View Question

What is the main purpose of monetary policy?

View Question

What does the “Phillips Curve” show?

View Question

What is the meaning of “disguised unemployment”?

View Question

Which of the following is an example of a non-renewable resource?

View Question

Which of the following best describes “capital formation”?

View Question

Which of the following is an example of a public sector undertaking (PSU) in India?

View Question

What is meant by “monetary policy”?

View Question