Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
4. Discuss the key objectives of industrial policy in India and explain how does it impact on the economy and industry?(250 words)
India Year Book 2019
Why this question:
The question is straightforward and is from the static portions of the GS paper III.
Key demand of the question:
Discuss in detail key objectives of industrial policy in India and explain its impact on the economy.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Explain that Industrial Policy is a typical character of a mixed economy. It is policy of government intervention which is sector specific and is aimed at giving preferential treatment to a particular sector over others.
First explain why an industrial policy is desirable.
Present arguments for and against industrial policy.
Discuss the key objectives.
Explain the impact on the economy and industry in specific aspects.
Conclude with importance of a strong Industrial policy for the growth and development of the country.