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 NOT part of the World Bank Group?

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Which of the following is a feature of a command economy?

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What is the significance of “Purchasing Power Parity” (PPP)?

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What does the “Phillips Curve” show?

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What is the main aim of the “Startup India” initiative?

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Which of the following is a direct tax?

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What is “inclusive growth”?

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What is the concept of “invisible hand” associated with?

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is the primary role of the Securities and Exchange Board of India (SEBI)?

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