QUESTION 12
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 of increasing the industrial growth rate?
WRITE IN
11 min
250 words
What the examiner wants
Explain why industry grew slower than GDP after 1991 and judge whether recent policy changes can fix it.
Give reasons + How farAnswer exactly what the question asks.
Demand-wise check
- 1Reasons: services-led growth, manufacturing share stuck around 15–17% of GDP, infrastructure gaps, land and labour rigidities, high logistics cost, credit crunch (twin balance sheet), regulatory burden, China competition≈65 words
- 2Recent changes: Make in India, FDI liberalisation, GST, IBC 2016, corporate tax cut (2019), PLI schemes (2020), National Logistics Policy, PM Gati Shakti≈65 words
- 3Assessment: gains in electronics and phones; but jobs, MSMEs and investment revival uneven≈65 words
Open in about 30 words and close in about 30.
Answer plan
Data on lagReasonsRecent changesAssessmentConclusion
Where marks usually go
- Not assessing 'how far'
- No data on manufacturing share
Draw this
- Line graph: GDP growth vs industrial growth since 1991
Value addition
- ThinkerDani Rodrik's 'premature deindustrialisation' explains manufacturing peaking at low income levels in India.Rodrik, 2016
- PolicySeptember 2019 corporate tax cut: 22% for existing firms, 15% for new manufacturing firms.Taxation Laws (Amendment) Act, 2019
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Aniket Ranjan · AIR 48 · Page 26 ↗Reviewed PYQ reference
- Mayank Purohit · AIR 33 · Page 15 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 23 ↗Same syllabus reference
- Mayank Purohit · AIR 33 · Page 3 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 11 minutes, then get it checked.