Contents

Historical Evolution of the Manufacturing Sector in India ................................................................

..................................... 3
Pre-independence Era: ................................
................................................................................................
....................................................... 3
Post-independence
dence Industrialization: ................................................................................................
................................ 3
Liberalization and Economic Reforms in the 1990s: ................................................................
.......................................... 3
Industrial sector's contribution to India's Economy ................................................................
............................................... 3
High-frequency
frequency indicators to track the growth momentum of the industrial sector ............................ 4
Government Policies and Initiatives to Support Manufacturing ............................................................
............................ 5
Challenges Faced by thee Manufacturing Sector in India ................................................................
........................................ 6
Opportunities for the Manufacturing Sector: ................................................................
........................................................ 7
Key sub-sectors
sectors in India’s Industrial Sector ............................................................................................
............................ 8
Micro, Small and Medium Enterprises (MSMEs)................................................................
................................................ 8
Challenges: ................................
................................................................................................................................
..................................... 8
Government Initiatives: ................................
................................................................................................
.................................................. 8
Examples:................................
................................................................................................................................
........................................ 9
Electronics Industry ................................
............................................................................................................................
............................ 9
Challenges: ................................
................................................................................................................................
..................................... 9
Government Initiatives: ................................
................................................................................................
.................................................. 9
Examples:................................
................................................................................................................................
........................................ 9
Coal Industry................................
................................................................................................................................
....................................... 9
Challenges: ................................
................................................................................................................................
................................... 10
Government Initiatives: ................................
................................................................................................
................................................ 10
Examples:................................
................................................................................................................................
...................................... 10
Steel Industry................................
................................................................................................................................
.................................... 10
Challenges: ................................
................................................................................................................................
................................... 10
Government Initiatives: ................................
................................................................................................
................................................ 10
Examples:................................
................................................................................................................................
...................................... 11
Textile Industry ................................
................................................................................................................................
................................. 11
Challenges: ................................
................................................................................................................................
................................... 11
Government Initiatives: ................................
................................................................................................
................................................ 11
Examples:................................
................................................................................................................................
...................................... 11
Pharmaceuticals Industry ................................
................................................................................................
................................................. 11
Challenges: ................................
................................................................................................................................
................................... 12
Government Initiatives: ................................
................................................................................................
................................................ 12

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 Examples:................................
................................................................................................................................
...................................... 12
Automobile Industry................................
................................................................................................
......................................................... 12
Challenges: ................................
................................................................................................................................
................................... 12
Government Initiatives: ................................
................................................................................................
................................................ 12
Examples:................................
................................................................................................................................
...................................... 13
Telecommunications Industry ................................................................................................
.......................................... 13
Challenges: ................................
................................................................................................................................
................................... 13
Government Initiatives: ................................
................................................................................................
................................................ 13
Examples:................................
................................................................................................................................
...................................... 13
Previous Years Prelims Questions ................................................................................................
........................................ 14
Previous Years Mains Questions ................................................................................................
.......................................... 15

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Chapter 14
Industry
The industrial sector, also known as the manufacturing sector is involved in the production of goods,
such as machinery, chemicals, textiles, and automobiles. It also includes industries that provide
infrastructure, like power and transportation.

Historical Evolution of the Manufacturing Sector in India

Pre-independence Era:
Prior to India's independence in 1947, the manufacturing sector was predominantly centered
around traditional industries, such as textiles, hahandicrafts, and agro-processing.
processing. Industrialization was
limited, and the country largely relied on agriculture for its economic sustenance.

Post-independence
independence Industrialization:
After independence, India adopted a planned economy model, and industrialization
industrializati became a key
focus of the government's development strategy. The introduction of five five-year
year plans aimed to
accelerate industrial growth and reduce dependency on imports. The public sector played a dominant
role in manufacturing, with the establishment of large-scale
scale industries in steel, heavy machinery, and
capital goods.
The Second Five-Year
Year Plan (1956
(1956-1961)
1961) witnessed the establishment of the Indian Institutes of
Technology (IITs) and the Indian Institutes of Management (IIMs), which contributed to a skilled
workforce in the engineering and management fields.

Liberalization and Economic Reforms in the 1990s:

In response to a balance of payments crisis in the early 1990s, India initiated a series of economic
reforms in 1991 to liberalize its economy. The manufacturing sector witnessed significant changes
during this period. Key reforms included:
1. Reduction of industrial licensing and delicensing of various industries, allowing for increased
private sector participation and foreign direct investment (FD
(FDI).
2. Introduction of foreign trade reforms to encourage exports and boost competitiveness.
3. Dismantling of import controls and tariff reductions to promote import competition and
efficiency.
4. Creation of Special Economic Zones (SEZs) to attract foreign investmentinvest and boost
manufacturing exports.

Industrial sector's contribution to India's Economy

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 According to the World Bank, in 2020, the industrial sector accounted for around 26% of India's
GDP. That means that roughly a quarter of the value of all goods and sservices
ervices produced in India comes
from the industrial sector.
According to the Ministry of Statistics and Programme Implementation, the industrial sector
employed around 28% of India's workforce in 2019.

High-frequency
frequency indicators to track the growth momentu
momentum of the
e industrial sector
secto

High-Frequency
Indicator Definition Calculation
The index is calculated based on surveys of
purchasing managers who report changes
A monthly survey
survey-based in key factors like new orders, production,
index that measures the employment, supplier deliveries, and
level of confidence of inventories. The PMI value is derived from
purchasing managers in a weighted average of these components.
PMI the manufacturing A score above 50 indicates expansion,
Manufacturing sector while below 50 indicates contraction.
IIP is calculated using the Laspeyres
formula, which compares the current
period's industrial production with a base
A monthly index that period. The index represents the
tracks the production of percentage
ercentage change in production volume
different industries in for a basket of industrial products over
IIP India time.
Refinery Products Industry: 28.04%
Electricity Industry: 19.85%
Steel Industry: 17.92%
A monthly index that Coal Industry: 10.33%
tracks the performance Crude Oil Industry: 8.98%
of key industries that Natural Gas Industry: 6.88%
Index of Core make up the core of the Cement Industry: 5.37%
Industries industrial sector in India Fertilizers Industry: 2.63%
The loans given by
banks to industries for
Bank Credit to their operations and
Industry expansion
The investment made by
foreign companies in
FDI in the manufacturing
Manufacturing sector of India

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Government Policies and Initiatives to Support Manufacturing
1. Make in India: Launched in 2014, the Make in India campai
campaigngn is one of the flagship initiatives to
promote manufacturing and transform India into a global manufacturing hub. The campaign aims to
attract both domestic and foreign investment in various industries by offering a favorable business
environment, easing regulatory norms, and providing incentives for manufacturing activities.
2. National Manufacturing Policy (NMP): The NMP provides a comprehensive roadmap for the
growth and development of the manufacturing sector. It focuses on enhancing the sector's contribution
cont
to GDP, increasing employment opportunities, and promoting sustainable manufacturing practices. The
policy emphasizes the need for skill development, technology upgradation, and efficient infrastructure.
3. Special Economic Zones (SEZs): SEZs are designated geographical areas that offer various tax
incentives, customs benefits, and simplified regulatory procedures to attract foreign direct investment
and promote exports. SEZs have played a significant role in boosting manufacturing exports and creating
crea
employment opportunities.
4. Industrial Corridors: The government has identified and developed industrial corridors, such as
the Delhi-Mumbai
Mumbai Industrial Corridor (DMIC) and Chennai
Chennai-Bengaluru
Bengaluru Industrial Corridor (CBIC). These
corridors aim to create industrial
dustrial clusters with state
state-of-the-art
art infrastructure, better connectivity, and
investor-friendly policies.
5. Goods and Services Tax (GST): The introduction of the GST in 2017 brought about significant
tax reforms and streamlined the indirect taxation system. The unified tax regime has reduced tax
complexities and improved the ease of doing business, benefiting the manufacturing sector.
6. Intellectual Property Rights (IPR) Policy: India has formulated a National IPR Policy to
promote innovation and protecttect intellectual property. The policy aims to foster an environment
conducive to research, development, and technology transfer in the manufacturing sector.
7. Technology Upgradation Fund Scheme (TUFS): TUFS provides financial support to textile
and jute industries for the modernization of machinery and technology upgradation. The scheme aims
to enhance productivity, quality, and cost
cost-competitiveness in these industries.
8. Export Promotion Schemes: Various ious export promotion schemes, such as the Merchandise
Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS), provide incentives
to manufacturers for promoting exports and expanding their global footprint.
9. Investment Facilitation: The government has set up single
single-window
window clearance mechanisms and
investment promotion agencies at the central and state levels to facilitate investment in the
manufacturing sector. These agencies help investors with necessary approvals and clearances,
clearances thus
reducing bureaucratic hurdles.
10. Ease of Doing Business Reforms: The Indian government has undertaken significant reforms
to improve the ease of doing business in the country. These reforms include simplifying business
registration processes, reducing
cing compliance burdens, streamlining tax procedures, and enabling faster
dispute resolution. The World Bank's "Doing Business" report has recognized India's efforts, leading to
improved rankings in the ease of doing business index.
11. Production-Linked Incentive
ncentive (PLI) Schemes: The government has introduced PLI schemes in
specific sectors to encourage domestic manufacturing and enhance India's competitiveness in global
markets. Under these schemes, manufacturers receive incentives based on their incremental
incrementa production
and investment.

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 12. Atmanirbhar Bharat Abhiyan: The Atmanirbhar Bharat Abhiyan (Self-Reliant
Reliant India Campaign)
was launched in 2020 to promote self
self-reliance
reliance and reduce dependency on imports. It encourages
domestic manufacturing, R&D, and innovat
innovation in key sectors to make India self-sufficient
sufficient and globally
competitive.
13. National Capital Goods Policy: The National Capital Goods Policy aims to enhance the
competitiveness of India's capital goods sector and strengthen the manufacturing ecosystem. It focuses
on increasing domestic production, exports, and technology upgradation in the capital goods industry.
14. Pradhan Mantri Mudra Yojana (PMMY): PMMY provides financial assistance to small and
micro-enterprises,
enterprises, including those in the manufacturing sector, by offering collateral-free
collateral loans. This
initiative helps in promoting entrepreneurship and supporting small
small-scale
scale manufacturing units.
15. Start-up India: The Start
Start-up
up India initiative fosters a conducive ecosystem for startups,
including those in the manufacturing sector. It provides various benefits such as tax incentives, self-
self
certification compliance, and access to funding and mentorship to promote entrepreneurship and
innovation.
16. PM Gati Shakti - National Master Plan: PM Gati Shakti is a transformative
ransformative infrastructure
development initiative launched by the Government of India. It aims to create a unified and integrated
multimodal logistics network across the country. The National Master Plan under PM Gati Shakti focuses
on enhancing transportation
tation connectivity, including roads, railways, ports, and airports, to facilitate
efficient movement of goods and reduce logistics costs for the manufacturing sector.

Challenges Faced by the Manufacturing Sector in India

1. Infrastructure Deficiency: Inadequate
equate and outdated infrastructure, including transportation,
logistics, and power supply, pose significant challenges for manufacturers. Poor roads, congested ports,
and unreliable power supply lead to increased production costs, delays in delivery, and hamper
h overall
efficiency.
2. Skilled Labor Shortages: The manufacturing sector in India grapples with a shortage of skilled
and trained labor. The disparity between the demand for skilled workers and the availability of suitable
talent creates challenges in
n adopting advanced manufacturing technologies and hampers productivity.
3. Labor Reforms: The rigid labor laws in India have been a longstanding challenge for the
manufacturing sector. The existing labor laws often hinder flexibility in hiring, firing, and labor
deployment, making it difficult for companies to adjust their workfo
workforce
rce according to changing market
conditions and demand fluctuations. The complex labor regulations also discourage businesses from
scaling up their operations and investing in labor
labor-intensive industries.
4.. Complex Regulatory Environment: Manufacturers face complex and time-consuming
time
regulatory procedures, including licensing, permits, and compliance requirements. This bureaucratic
burden
rden increases administrative costs and delays business operations.
5. Access to Finance: Small and Medium
Medium-sized
sized Enterprises (SMEs) in the manufacturing sector
often encounter challenges in accessing affordable credit and working capital. High interest rates
rat and
stringent lending norms limit their growth and expansion opportunities.
6.. Low R&D and Innovation: The level of research and development (R&D) expenditure in the
manufacturing sector remains relatively low compared to global standards. Lack of innovation
innov and

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technology adoption hinders the industry's ability to produce high
high-value
value products and compete in
international markets.
7. Global Competition: Indian manufacturers face intense competition from other countries,
particularly from low-cost
cost manufact
manufacturing
uring hubs like China. Price competitiveness becomes challenging
due to economies of scale and lower production costs in competitor countries.
8.. Inefficient Supply Chain Management: Inefficient supply chain management results in
inventory management challenges,
enges, increased lead times, and higher costs. Manufacturers often struggle
to optimize supply chain processes, affecting their ability to meet market demands efficiently.
9. Import Dependency: India's manufacturing sector still depends on imports for certain
cert critical
raw materials, components, and machinery. This reliance on foreign supplies makes the industry
vulnerable to fluctuations in global markets and exchange rate volatility. Eg. Electronics Industry
10.. Environmental Regulations: Stricter environmental
ntal regulations and compliance requirements
impact manufacturing processes and necessitate additional investments in environment-friendly
environment
technologies and waste management systems.
11. Lack of Industry-Academia
Academia Collaboration: Limited collaboration between industry and
academia hampers innovation and technology transfer in the manufacturing sector. Bridging this gap is
essential to foster R&D, skill development, and technology upgradation.

Opportunities for the Manufacturing Sector:

Rising Domestic Demand and

nd Demographic Dividend:
 India's large and growing population presents a significant domestic market for manufactured
goods. The rising middle-class
class population and increasing disposable income drive demand for
consumer durables, electronics, automobiles, and other products.
 The country's young and aspiring workforce offers a demographic dividend, providing a skilled
labor pool for the manufacturing sector and supporting overall economic growth.

Leveraging Technology for Industry 4.0:

 Industry 4.0, characterized
rized by automation, data exchange, and IoT integration, offers immense
opportunities for the manufacturing sector. Adoption of advanced technologies enhances
productivity, quality, and efficiency in manufacturing processes.
 India can become a leader in te technology-driven
driven manufacturing and leverage its IT expertise to
drive innovation and digital transformation in industries.

Focus on Sustainable and Green Manufacturing:

 The increasing global emphasis on sustainability and environmental responsibility presents
presen an
opportunity for Indian manufacturers to adopt eco
eco-friendly
friendly practices and green technologies.
 By producing environmentally conscious products and adopting sustainable manufacturing
processes, Indian companies can gain a competitive edge and appeal to eco-conscious
conscious consumers
globally.

Export Potential and Market Diversification:

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 India's manufacturing sector has significant export potential, particularly in sectors like
pharmaceuticals, textiles, engineering goods, and automotive components.
 Diversifying export markets reduces reliance on specific regions and enhances the sector's
resilience to global economic fluctuations.

Government Initiatives and Incentives:

 The Government of India's initiatives like Make in India, Production
Production-Linked
Linked Incentive (PLI) schemes,
sc
and Atmanirbhar Bharat Campaign provide incentives and support to promote domestic
manufacturing and attract foreign investments.
 These initiatives create an enabling environment for manufacturers, facilitating technology
adoption, R&D, and innovation.
on.

Infrastructure Development:
 Investment in infrastructure development, such as transportation networks, logistics hubs, and
industrial corridors, can improve supply chain efficiency and reduce manufacturing costs.
 Access to modern infrastructure enhance
enhancess connectivity and accessibility to markets, attracting
more investment in the manufacturing sector.

Shift in Global Supply Chains:

 The COVID-1919 pandemic and geopolitical tensions have led to a reevaluation of global supply
chains. Many companies are explo
exploring
ring alternative manufacturing destinations like India to reduce
dependency on a single country or region.
 This presents an opportunity for India to attract investments and enhance its role in global supply
chains.
By capitalizing on these opportunities, the Indian manufacturing sector can position itself as a major
player in the global market, drive economic growth, create jobs, and contribute significantly to India's
journey towards becoming globally competitive economy.

Key sub-sectors
sectors in India’s Indust
Industrial Sector

Micro, Small and Medium Enterprises (MSMEs)

The Micro, Small, and Medium Enterprises (MSMEs) sector includes a wide range of businesses, such
as small manufacturers, service providers, and artisans. MSMEs play a crucial role in the Indian economy
econo
by contributing to employment generation and economic growth.

Challenges:
1. Limited access to finance and credit
2. Difficulty in adopting new technology and innovation
3. Lack of skilled labor and training programs
4. Regulatory compliance and bureaucratic hurdle
hurdles

Government Initiatives:

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 1. The government has launched several initiatives to support MSMEs, such as the Prime Minister's
Employment Generation Programme (PMEGP) and the Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTMSE).
2. The government hass also introduced measures to promote innovation and entrepreneurship,
such as the Startup India initiative and the Atmanirbhar Bharat Abhiyan.
3. The government has simplified regulatory compliance for MSMEs by introducing a single- single
window system for approval
approvals and registrations.

Examples:
 Chumbak, a Bangalore-based
based company, is a successful MSME that designs and manufactures
quirky lifestyle products such as bags, wallets, and home decor items. Chumbak has expanded
rapidly in recent years, with over 70 stores aacross
cross India and a strong online presence.
 Fabindia, another well-known
known MSME, is a retail chain that specializes in handcrafted products
such as clothing, accessories, and home furnishings. Fabindia works closely with artisans and
weavers in rural areas, providing
oviding them with a platform to showcase their products and earn a
livelihood.

Electronics Industry
The electronics industry in India is involved in the manufacturing and production of electronic
products, such as smartphones, laptops, televisions, and more. It is a rapidly growing industry in India,
with many global and domestic companies investing in the country.

Challenges:
1. Lack of a strong supply chain ecosystem
2. Limited availability of skilled labor and technical expertise
3. High import dependence for raw materials and components
4. Intense competition from other Asian countries such as China and Taiwan

Government Initiatives:
1. The government has launched several initiatives to promote electronics manufacturing in India,
such as the Make in India campaign aand the National Policy on Electronics.
2. The government has also established special economic zones (SEZs) and industrial parks to
attract foreign investment and promote manufacturing.
3. The government has implemented measures to improve the availability of sk skilled
illed labor, such as
the Skill India initiative and the Pradhan Mantri Kaushal Vikas Yojana.

Examples:
 Foxconn, a Taiwanese multinational electronics contract manufacturer, has set up a
manufacturing facility in India to produce smartphones for companies ssuch
uch as Apple and Xiaomi.
 Samsung, the South Korean electronics giant, has a large manufacturing presence in India, with
factories producing smartphones, televisions, and home appliances.

Coal Industry
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 The coal industry plays a crucial role in the country's energy mix. India is the third-largest
third producer
of coal in the world, and the coal industry provides employment to millions of people across the
country.

Challenges:
1. Limited availability of high-quality
quality coal reserves in certain regions
2. Environmental concerns rns related to coal mining and usage, such as air pollution and greenhouse
gas emissions
3. Increasing competition from renewable energy sources like solar and wind power
4. Technological challenges in the exploration and extraction of coal

Government Initiatives:
1. The government has launched several initiatives to improve the efficiency and sustainability of
the coal industry, such as the Coal Mitra portal, which facilitates the transfer of coal reserves
from one company to another, and the Ujjwal DiscoDiscom
m Assurance Yojana, which aims to ensure
the financial viability of power distribution companies.
2. The government has also introduced measures to promote the use of clean coal technologies
and reduce emissions, such as the National Clean Energy Fund and the Clean Energy Cess.
3. The government is also investing in research and development to improve the exploration and
extraction of coal, such as the development of new mining technologies and the use of artificial
intelligence and big data analytics.

Examples:
 Coal India Limited is the largest coal mining company in India and operates several mines across
the country. It produces around 83% of the country's coal output and employs over 300,000
people.

Steel Industry
The steel industry plays a critical role in th
thee growth and development of the Indian economy. It
includes the production of iron and steel products, which are used in various industries, such as
construction, automotive, and infrastructure.

Challenges:
1. High dependence on imported raw materials, such aas coking coal and iron ore
2. Intense competition from low
low-cost steel producers in other countries
3. Environmental concerns related to emissions and waste disposal
4. Fluctuations in demand and prices due to global economic conditions

Government Initiatives:
1. The government
overnment has launched several initiatives to support the growth and development of the
steel industry, such as the National Steel Policy and the Make in India campaign.

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 2. The government has also implemented measures to reduce dependence on imported raw
materials
rials and encourage domestic production, such as the auction of mineral resources and the
introduction of the Steel Scrap Recycling Policy.
3. The government has also provided financial and technical assistance to steel companies for
modernization and capacity expansion, such as the Steel Development Fund and the Technology
Upgradation Fund Scheme.

Examples:
 Tata Steel, one of the leading steel p
producers
roducers in India, has several plants and facilities across the
country. Its flagship plant in Jamshedpur, Jharkhand is one of the largest and most advanced
steel plants in the world.
 Steel Authority of India Limited (SAIL), another major player in the Ind Indian
ian steel industry, has
several integrated steel plants and is involved in the production of a wide range of steel
products, including long and flat products.

Textile Industry
The textile industry includes the production of various textiles, such as cotton,
cotton silk, wool, and
synthetic fibers, as well as the manufacturing of apparel, home textiles, and technical textiles.

Challenges:
1. Competition from other countries like Bangladesh with lower labor costs
2. High cost of raw materials, such as cotton and silk
3. Lack of modernization and technological advancements in certain regions
4. Environmental concerns related to water usage and pollution

Government Initiatives:
1. The government has launched several initiatives to promote the textile industry, such as the
Technology Upgradation Fund Scheme (TUFS) and the Integrated Skill Development Scheme
(ISDS).
2. The Make in India campaign also focuses on promoting the textile industry by attracting foreign
investment and facilitating ease of doing business.
3. The government has also iimplemented
mplemented measures to address environmental concerns, such as
the Zero Liquid Discharge (ZLD) policy for textile dyeing and printing units.

Examples:
 The city of Surat in Gujarat is known as the "Textile City of India" and is one of the largest
centers forr textile production and manufacturing in the country.
 The traditional textile art of handloom weaving is still practiced in certain regions of India, such
as Varanasi and Kanchipuram. These handloom textiles are renowned for their intricate designs
and high-quality
quality craftsmanship.

Pharmaceuticals Industry

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 The pharmaceuticals industry is involved in the production and distribution of drugs, medicines, and
other healthcare products. India is known as the "Pharmacy of the World" due to its large and growing
pharmaceuticals industry.

Challenges:
1. Increasing competition from other countries
2. High costs of research and development for new drugs
3. Complex regulatory environment and intellectual property issues
4. Dependence on imports of raw materials and active pharmac
pharmaceutical
eutical ingredients (APIs)

Government Initiatives:
1. The government has launched several initiatives to promote the growth and development of the
pharmaceuticals industry, such as the Pharmaceutical Promotion Development Scheme (PPDS)
and the Make in India campaign.
ampaign.
2. The government has also established the National Pharmaceutical Pricing Authority (NPPA) to
regulate drug prices and ensure affordable healthcare for all.
3. The government has also taken steps to boost domestic production of APIs and reduce
dependencece on imports, such as the Production Linked Incentive (PLI) scheme for the
pharmaceuticals industry.

Examples:
 The Serum Institute of India, based in Pune, is the world's largest vaccine manufacturer by
volume. It produces vaccines for a wide range of disdiseases,
eases, including COVID-19,
COVID and exports
them to countries around the world.
 The company Cipla, based in Mumbai, is one of the leading pharmaceutical companies in India.
It produces a wide range of drugs and medicines, including treatments for cancer, HIV/AIDS,
HIV/AI and
respiratory illnesses.

Automobile Industry
The automobile industry includes the manufacturing and sale of automobiles such as cars, trucks,
buses, motorcycles, and more. It is a significant contributor to India's economy, providing employment
to millions
llions of people and generating significant revenue.

Challenges:
1. High competition among domestic and international players
2. Fluctuations in demand due to economic factors and changes in consumer preferences
3. Rising raw material costs and inflation
4. Environmental concerns and pressure to adopt cleaner technologies

Government Initiatives:
1. The government has implemented several initiatives to support the automobile industry, such
as the Automotive Mission Plan and the National Electric Mobility Mission Plan.

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 2. The government has also announced incentives and tax breaks for manufacturers who invest in
clean energy technologies and electric vehicles.
3. The introduction of the Goods and Services Tax (GST) has streamlined the tax system and
reduced the overall tax
ax burden on the industry.

Examples:
 Tata Motors is one of the leading automobile manufacturers in India, producing a wide range of
vehicles such as cars, trucks, and buses. Its Nano car, marketed as the world's cheapest car, was
launched in 2008 and aimed at providing affordable transportation to the masses.
 Maruti Suzuki is another prominent automobile manufacturer in India, known for its popular
compact cars such as the Swift and the Alto. It has a strong presence in the Indian market and
has expanded itss operations to other countries in the region.

Telecommunications Industry
The telecommunications industry includes businesses involved in the production and distribution of
telecommunications equipment and services, such as mobile phones, internet service
services,
s, and cable TV.

Challenges:
1. High competition among telecom service providers
2. The need for constant innovation to keep up with rapidly evolving technology
3. Difficulty in providing reliable and affordable services in rural and remote areas
4. Regulatory challenges,
ges, such as spectrum allocation and licensing issues

Government Initiatives:
1. The government has launched several initiatives to promote the growth and development of the
telecom industry, such as the Digital India campaign and the National Optical Fibre Network
project.
2. The Telecom Regulatory Authority of India (TRAI) has implemented measures to promote fair
competition and ensure quality services for consumers, such as the Telecom Consumer
Protection Regulations.
3. The government has also taken steps to aaddress
ddress the issue of connectivity in rural areas, such as
the BharatNet project, which aims to provide broadband connectivity to all gram panchayats
(village councils) in the country.

Examples:
 Reliance Jio, a subsidiary of Reliance Industries, is a major p
player
layer in the Indian telecom market. It
offers affordable 4G data plans and has disrupted the industry with its aggressive pricing
strategies.
 Bharti Airtel, another leading telecom service provider in India, has a wide range of services,
including mobile, broadband, and digital TV. It has a strong presence in both urban and rural
areas of the country.

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Previous Years Prelims Questions
1. Recently, India’s first ‘National Investment and Manufacturing Zone’ was 2016
proposed to be set up in

(a) Andhra Pradesh

(b) Gujarat

(c) Maharashtra

(d) Uttar Pradesh

2. On which of the following can you find the Bureau of Energy Efficiency Star 2016
Label?

(1) Ceiling fans

(2) Electric geysers

(3) Tubular fluorescent lamps

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

3. In the ‘Index of Eight Core Industries’, which one of the following is given the 2015
highest weight?

(a) Coal production

(b) Electricity generation

(c) Fertilizer production

(d) Steel production

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Previous Years Mains Questions
1. Account for the failure of the manufacturing sector in achieving the goal of 2017
labour-intensive
intensive exports rather than capital
capital-intensive
intensive exports. Suggest
measures for more labour
labour-intensive rather than capital-intensive
intensive exports.
2. “Industrial growth rate has lagged behind in the overall growth of Gross-
Gross 2017
Domestic-Product(GDP)
Product(GDP) in the post
post-reform
reform period” Give reasons. How far
the recent changes is Industrial Policy are capable of increasing the
industrial growth rate?
3. “Success of ‘Make in India’ programme depends on the success of ‘Skill 2015
India’ programme and radical labour reforms.” Discuss with logical
arguments.

4. There is a clear acknowledgement

knowledgement that Special Economic Zones (SEZs) are a 2015
tool of industrial development, manufacturing and exports. Recognizing
this potential, the whole instrumentality of SEZs requires augmentation.
Discuss the issues plaguing the success of SEZs with resp
respect
ect to taxation,
governing laws and administration.
Answers
1. A 2. D
3. B

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Industry | @Ketanomy | ketan@upscprep.com