← All questionsGS3 · 2023 · Agriculture ·Manufacturing, MSMEs and Faster Growth
QUESTION 1
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.

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7 min
150 words

What the examiner wants

Comment on government policies to raise manufacturing's share of GDP, especially through MSMEs, and whether they are working.

CommentGive your own view on the statement and back it with facts and examples.

Demand-wise check

  1. 1Why manufacturing and MSMEs: jobs, exports, productivity; share stuck around 15–17% of GDP≈35 words
  2. 2Policies: Make in India, PLI schemes, revised MSME definition (2020), Udyam registration, ECLGS, CGTMSE, TReDS, RAMP, corporate tax cut (2019), labour codes≈35 words
  3. 3Assessment: gains in electronics and pharma, MSME credit gap, delayed payments, informality≈35 words

Open in about 20 words and close in about 20.

Answer plan

Case for manufacturing and MSMEsPoliciesResultsGapsSuggestionsConclusion

Where marks usually go

  • Listing schemes without commenting on results
  • Not mentioning the MSME credit gap or delayed payments

Draw this

  • Table: policy → aim → outcome so far

Value addition

  • DataManufacturing's share of India's GVA has hovered around 15–17% for over a decade.MoSPI National Accounts
  • RuleSection 43B(h) of the Income Tax Act (from 2024) disallows deductions if payments to micro and small enterprises are delayed beyond 45 days.Finance Act, 2023

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