UPSC Prelims 2012 Q34: Indian Economy – Infrastructure & Industry
What is/are the recent policy initiative(s) of Government of India to promote the growth of
manufacturing sector?
1. Setting up of National Investment and Manufacturing Zones
2. Providing the benefit of ‘single window clearance’
3. Establishing the Technology Acquisition and Development Fund
Select the correct answer using the codes given below:
- (a) 1 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (d) 1, 2 and 3
Explanation
Policy initiatives to promote manufacturing
All three come from the National Manufacturing Policy, 2011.
| Initiative | Part of the policy? | Detail |
|---|---|---|
| 1. Setting up of National Investment and Manufacturing Zones | Yes | Large integrated industrial townships |
| 2. Providing the benefit of 'single window clearance' | Yes | One point for all approvals, inside the zones |
| 3. Establishing the Technology Acquisition and Development Fund | Yes | Helps small firms buy clean and green technology |
Aims of the policy:
| Aim | Target |
|---|---|
| Share of manufacturing in GDP | 25 percent |
| Jobs | 100 million new jobs |
| Other goals | Skill building, easier exit rules, green manufacturing |
Later steps: Make in India (2014) and the Production Linked Incentive schemes (2020).
Answer: (d) 1, 2 and 3.
Why each option is right or wrong
- (a) Incorrect. Single window clearance and the technology fund are also initiatives.
- (b) Incorrect. National Investment and Manufacturing Zones are also an initiative.
- (c) Incorrect. Single window clearance is also part of the policy.
- (d) CORRECT. All three are initiatives to promote manufacturing.
Key point
National Manufacturing Policy (2011): NIMZs, single window clearance, Technology Acquisition and Development Fund; manufacturing at 25 percent of GDP, 100 million jobs.
Remember
Manufacturing Policy 2011: NIMZ, single window, TADF.
Common mistakes
- Not knowing the Technology Acquisition and Development Fund.
- Confusing NIMZs with Special Economic Zones.
- Forgetting the policy's targets: 25 percent and 100 million.
Exam tip
Three positive, sensible steps under one policy: usually all correct.
Sources
- Department for Promotion of Industry and Internal Trade — National Manufacturing Policy, 2011
- Press Information Bureau — Technology Acquisition and Development Fund under the National Manufacturing Policy