Liberalisation and industrial policy

Current affairs on this topic 9

• Op-ed: India's factories are growing, but not creating jobs at the scale needed 2 October 2026

  Factory output and wage bills are rising. So why are most non-farm workers still in informal units?

• Industrial output grows 8% in August 2026, but consumer non-durables lag at 2.1% 29 September 2026

  Factories are humming and capital goods are up 16.9%. So why are everyday consumer goods barely growing?

• Make in India turns 12 with a patchy scorecard 25 September 2026

  Output grew. Did manufacturing's share of jobs and exports?

• Quality control orders and India's manufacturing growth 24 September 2026

  Mandatory standards are meant to protect buyers. Are they also taxing manufacturers?

• The missing measure in India's rare-earth magnet mission 21 September 2026

  Every EV motor and wind turbine needs these magnets. China makes almost all of them.

• SEMICON India 2026 opens with a push from design to systems 18 September 2026

  From fabs to packaging, India wants the whole chip chain.

• India-EU trade deal: a 1.64 million tonne steel quota for India, a car quota for the EU 14 September 2026

  India sends about 4 million tonnes of steel to Europe a year. Only 1.64 million tonnes get a quota. What about the rest?

• Editorial: What the U.S.-Canada trade rupture teaches India 11 September 2026

  Six decades of free trade did not shield Canada from U.S. tariffs. Why should India expect its deal to be safer?

• Op-ed: Fast growth, weak jobs and India's risk of a middle-income trap 11 September 2026

  India is the fastest-growing major economy. Why do some economists still fear it could stall before it gets rich?

Background from the reference shelf

• Production Linked Incentive schemes

Previous-year questions 12

1. 2025 · GS3 · 15 marks Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?
2. 2025 · GS3 · 10 marks What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?
3. 2025 · GS3 · 15 marks India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.
4. 2023 · GS3 · 10 marks Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
5. 2018 · GS3 · 15 marks How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?
6. 2017 · GS3 · 10 marks Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than…
7. 2017 · GS3 · 15 marks "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…
8. 2017 · GS3 · 15 marks "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 is Industrial Policy are capable of…
9. 2016 · GS3 · 12.5 marks How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?
10. 2015 · GS3 · 12.5 marks "Success of Make in India program depends on the success of Skill India programme and radical labour reforms." Discuss with logical arguments.
11. 2015 · GS3 · 12.5 marks 'Success of 'Make in India' programme depends on the success of 'Skill India' programme and radical labour reforms.' Discuss with logical arguments.
12. 2014 · GS3 · 12.5 marks Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services…