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 “credit rating”?

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What is the “law of diminishing marginal utility”?

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

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Which of the following is NOT part of the World Bank Group?

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What is “quantitative easing”?

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What is “inflation targeting”?

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

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Which economic concept is described as “the next best alternative foregone”?

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What does “Laissez-faire” policy advocate?

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What does the term "depreciation" refer to in the context of assets?

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