"Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period" Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate?

Lets you argue that some recent industrial policy tools, like input QCOs, have raised costs for manufacturers rather than spurring growth.

• An op-ed in The Hindu argues QCOs need reassessment because many now cover industrial inputs rather than finished consumer goods, raising manufacturers' costs.
• The CSEP study (September 2025) found QCOs suppressed intermediate imports needed for domestic production without significantly improving exports.
• Experts caution that rolling back QCOs must be paired with monitoring for dumping of substandard goods.

Use the latest quarter as a counterpoint: manufacturing is now growing faster than overall GDP, driven by an investment surge.

• Manufacturing grew 9.2% in April to June 2026, above real GDP growth of 7.8%, and up from 8.3% a year earlier.
• Real Gross Fixed Capital Formation grew 11.9% against 5.8% a year earlier, raising its share in nominal GDP to 34.3%.
• Way forward: sustain public capex while crowding in private investment through regulatory ease, and push labour-intensive manufacturing.

The op-ed's data on stagnant manufacturing share, weak investment and low R&D explain why industry has lagged GDP growth and what policy changes are needed.

• Manufacturing's share of GVA has stayed between about 14% and 17% for over two decades, a pattern often called premature de-industrialisation.
• The op-ed cites weak job creation, stagnant wages, low productivity and sluggish private investment; GERD is only about 0.64% of GDP.
• Remedies suggested: job-linked industrial incentives (for example, tying PLI to employment and exports) and spreading technology to small firms.

Use the latest IIP data to show that industry is currently growing strongly, led by investment goods, while flagging base effects and weak mass consumption as limits.

• IIP grew 8% in August 2026 (manufacturing 9%, capital goods 16.9%, electrical equipment 30.9%); April to August growth was 6.7% against 4.2% a year earlier.
• Caution: August 2025 output was held down by inventory adjustments before the GST rate cuts of 22 September 2025, flattering the year-on-year figure; mining contracted 5.6%.
• Consumer non-durables grew only 2.1%; economist Madan Sabnavis links this to higher prices and low purchasing power, so sustained industrial growth needs broad-based demand.

Use the latest ASI to show that registered industry is now growing strongly in value terms, while questioning whether that growth is broad-based and job-rich.

• ASI 2024-25 (released 30 September 2026): factory GVA grew 9.59%, output 7.81%, invested capital 11.10%, emoluments 12.08% and net profit 7.73%.
• Growth is concentrated: Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana hold about 56% of factory employment.
• Supporters of current policy point to the 7.19% rise in factory jobs (over 14 lakh added) and production-linked incentives; the op-ed calls the model capital-intensive.