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 factors is NOT included in the calculation of Human Development Index (HDI)?

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Which of the following statements best defines Gross Domestic Product (GDP)?

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What is the meaning of "fiscal deficit"?

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What is “currency devaluation”?

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What is meant by “marginal propensity to consume”?

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Which of the following causes demand-pull inflation?

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Which of the following is a feature of monopolistic competition?

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Which of the following is an example of a capital receipt for the government?

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What is meant by “credit rating”?

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

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