Theme T129 · Indian Economy

Manufacturing, MSMEs, startups & industrial policy: PLI, SEZs, labour codes

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What UPSC asks

Questions ask the policies for MSMEs and manufacturing share, why industrial growth lagged after reforms, failure in labour-intensive exports, PLI's rationale and results, SEZ problems, labour codes, and startups' role.

Prepare these

• Manufacturing share and Make in India
• MSME definition change, credit (ECLGS), Udyam
• PLI scheme sectors and outcomes
• SEZ Act issues: taxation (MAT), land, laws; DESH Bill
• Four labour codes: merits and demerits
• Startup India: ecosystem, funding winter

Answer writing

• Diagnose constraints, then reforms with data

Directive words in these PYQs: Discuss (4), Suggest (2), Comment (1), Account for (1), How far (1).

Linked themes

Builds on: study these first

These come earlier in the roadmap. Questions in this theme use them.

Comes back later in

Later themes that take this one further.

On the map

Syllabus lines covered

• GS3-L8 — Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

All 7 PYQs, newest first

1. GS3202615 marks · 250 wordsGS3-ECO-05-M2026-S01

   How are startups in India promoting entrepreneurship, innovation and employment? Discuss the global and domestic challenges in their working and suggest suitable measures to overcome these challenges.

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2. GS3202515 marks · 250 wordsGS3-ECO-05-M2025-Q12

   Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?

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3. GS3202415 marks · 250 wordsGS3-ECO-05-M2024-Q11

   Discuss the merits and demerits of the four 'Labour Codes' in the context of labour market reforms in India. What has been the progress so far in this regard?

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4. GS3202310 marks · 150 wordsGS3-ECO-05-M2023-Q01

   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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5. GS32017GS3-ECO-05-M2017-S01

   Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.

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6. GS32017GS3-ECO-05-M2017-S02

   “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?

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7. GS32015GS3-ECO-05-M2015-S02

   There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development, manufacturing and exports. Recognising this potential, the whole instrumentality of SEZs require augmentation. Discuss the issues plaguing the success of SEZs with respect to taxation, governing laws and administration.

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