Introduction & Context

Overview

India's industrial policy story is one of dramatic transformation — from a heavily planned, licence-raj economy to an increasingly market-oriented, globally integrated one. Topic 24 spans five decades of industrial policymaking, from the 1956 resolution through the 1991 watershed reforms to the post-2014 Make in India era.

The 2021 exam asked for a 10-mark answer on Atmanirbhar Bharat's industrial and infrastructure dimensions, and a 5-mark answer defining MSMEs. The 2026 exam is likely to test: PLI schemes, MSME policy, Air India privatisation, and PM Gati Shakti — all recent developments.

India's Industrial Challenge

India's industrial challenge is threefold:

• Growing manufacturing's share of GDP from 16% to 25%
• Generating enough jobs for 8–10 million new labour force entrants annually
• Competing with China in global supply chains

PLI schemes and Atmanirbhar Bharat are India's strategic response to these challenges.

---