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 of the following is a feature of a command economy?

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What does the term “national income” refer to?

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Which of the following is NOT a function of the World Trade Organization (WTO)?

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What is the Phillips Curve?

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

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Which of the following is a characteristic of “perfect competition”?

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Which of the following is considered a public good?

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Which term refers to an economy that has elements of both capitalism and socialism?

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What is the meaning of “disguised unemployment”?

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What does the Gini Coefficient measure?

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