{"id":215210,"date":"2022-11-21T15:19:00","date_gmt":"2022-11-21T09:49:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=215210"},"modified":"2022-11-22T09:27:36","modified_gmt":"2022-11-22T03:57:36","slug":"answered-industrial-policy-needs-to-be-strengthened-to-make-it-more-aligned-to-tackle-indias-present-challenges-comment","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-industrial-policy-needs-to-be-strengthened-to-make-it-more-aligned-to-tackle-indias-present-challenges-comment\/","title":{"rendered":"[Answered] Industrial policy needs to be strengthened to make it more aligned to tackle India\u2019s present challenges. Comment."},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<td width=\"616\"><strong>Introduction:\u00a0<\/strong>Contextual introduction.<br \/>\n<strong>Body:\u00a0<\/strong>Explain some challenges with industrial policy. Also explain what can be done to strengthen the industrial policy.<strong>Conclusion<\/strong>: Write a way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Industrial Policy is defined as\u00a0the strategic effort by the state to encourage economic transformation, i.e. the shift from lower to higher productivity activities, between or within sectors. India aims to grow its manufacturing gross value added (GVA) by about 3 times to reach <strong>$1 trillion by 2025-26.<\/strong><\/p>\n<p><strong>Present challenges:<\/strong><\/p>\n<ul>\n<li><strong>Lack of Efficient Infrastructure and Manpower: <\/strong>High technology based Infrastructure\u00a0and<strong>skilled manpower<\/strong>\u00a0are crucial for enhancing manufacturing competitiveness in the globalized economy. E.g. overburdened\u00a0rail transport.<\/li>\n<li>The\u00a0<strong>MSME sector<\/strong>seems to be relatively<strong> less favourably <\/strong>placed in terms of credit availability\u00a0and credit cost of working capital as compared to the medium and large scale industrial and services sectors.<\/li>\n<li>India is still <strong>dependent on foreign imports<\/strong> for\u00a0transport equipment, machinery\u00a0(electrical and non-electrical), chemicals and fertilizers, plastic material etc.<\/li>\n<li><strong>Industrial locations<\/strong> were established\u00a0<strong>without reference to cost-effective points<\/strong> and are often politically motivated.<\/li>\n<li>Even 30 years after the liberalization of the private sector, the government is again\u00a0<strong>handing out subsidies and licenses<\/strong>while putting up tariff walls.<\/li>\n<li>Due to ineffective policy implementation characterized by\u00a0<strong>red-tape<\/strong>and\u00a0strained labour-management relations\u00a0most of these public sector enterprises are <strong>running in loss<\/strong>.<\/li>\n<\/ul>\n<p><strong>What can be done?<\/strong><\/p>\n<ul>\n<li><strong>Job creation<\/strong>: Many of the industries currently chosen to be under PLI are highly<strong>capital and skill intensive<\/strong>.\u00a0<strong>Goal of job creation<\/strong>\u00a0for our massive numbers of <strong>unskilled workers<\/strong> should be considered and unnecessary subsidies should be avoided.<\/li>\n<li><strong>Discipline the firms<\/strong>: We have to be strict with non-performing firms. If necessary, we can withdraw support from them. It requires extra efforts that <strong>go beyond the<\/strong><strong>traditional culture of bureaucracy<\/strong>\u00a0in India.<\/li>\n<li><strong>Soft industrial policies:\u00a0<\/strong> like encouraging research and development, extension services, vocational training, improving regulations and infrastructure are needed to improve\u00a0<strong>productivity<\/strong>. These policies need to be customised to\u00a0<strong>local decentralised contexts<\/strong>, to help small and medium sized firms.<\/li>\n<li><strong>Focus on green products<\/strong>: for job-creation. E.g. renewable energy generation and storage, bioplastics, technologies of drip irrigation and rainfall harvesting, the reinforcement of sea walls, green energy-powered three-wheeler public transportation etc.<\/li>\n<\/ul>\n<p>The industrial policy should involve creating industry that is equipped with innovation, technology, financially viable and environment friendly and whose benefits are shared by all sections of the society.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:\u00a0Contextual introduction. Body:\u00a0Explain some challenges with industrial policy. Also explain what can be done to strengthen the industrial policy.Conclusion: Write a way forward. Industrial Policy is defined as\u00a0the strategic effort by the state to encourage economic transformation, i.e. the shift from lower to higher productivity activities, between or within sectors. India aims to grow its&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-industrial-policy-needs-to-be-strengthened-to-make-it-more-aligned-to-tackle-indias-present-challenges-comment\/\">Continue reading <span class=\"screen-reader-text\">[Answered] Industrial policy needs to be strengthened to make it more aligned to tackle India\u2019s present challenges. Comment.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-215210","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/215210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=215210"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/215210\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=215210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}