Q5 · UPPSC PCS Mains 2022 · GS III · 8 marks · ~125 words in the hall · 2 min read

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Evaluate the present industrial policy of the Government of India with special reference to ‘Make in India’ and ‘Stand up India’.

Topic: Budget and financial system. Syllabus: Components of Government Budgets and Financial System. Same official PYQ from year-wise 2022 and Budget and financial system.

Revision summary

Present policy aims at manufacturing share, jobs, and domestic value addition. Make in India (2014) eases FDI and sits with PLI and the National Logistics Policy. Stand-Up India (2016) is a branch-level SC/ST and women greenfield loan window. Gains: some electronics and pharma assembly, and some included borrowers. Gaps: factory GVA share, supplier depth, and last-mile credit still lag.

Model answer

Introduction

Present industrial policy tries to lift manufacturing share, jobs, and domestic value addition after decades of a thin factory base. Evaluation must test Make in India (2014) and Stand-Up India (2016) against that aim, not only against launch slogans.

Body

Make in India

  • Make in India invited investment into 27-odd sectors, eased FDI in defence, railways, and insurance, and later sat beside Production Linked Incentive (PLI) schemes and the National Logistics Policy.
  • It improved India’s ease-of-doing-business rank and pulled some mobile, pharma, and electronics assembly; factory GVA share and formal manufacturing jobs still lag the 25 percent ambition.
  • Land, power, skilling, and inverted duty structures often decide a plant more than a logo; Atmanirbhar Bharat and PLI are the later tools that try to fix scale.

Stand-Up India

  • Stand-Up India mandates bank loans of about ₹10 lakh to ₹1 crore to at least one Scheduled Caste or Scheduled Tribe and one woman borrower per branch for a greenfield enterprise.
  • It is a social-justice credit window, not a heavy-industry park scheme; uptake is real but uneven, and collateral, mentorship, and market access still bind SC/ST and women units.
  • Startup India, MUDRA, and Credit Guarantee Fund schemes sit around it; without last-mile bank appetite the window stays under-used.
  • Evaluation: Make in India widened the investment door; Stand-Up India opened a named credit door for excluded entrepreneurs. Neither by itself industrialises a district.

Flow diagram

flowchart TD
  P[Industrial policy] --> M[Make in India FDI]
  P --> L[PLI logistics]
  P --> S[Stand Up India loan]
  M --> F[Factory jobs GVA]
  L --> F
  S --> I[SC ST women enterprise]
  G[Land power skill bank] --> F
  G --> I

Conclusion

Make in India plus PLI is the scale-and-FDI arm; Stand-Up India is the inclusion arm. The evaluation is mixed: assembly and some PLI lines have grown, but manufacturing share, deep suppliers, and last-mile SC/ST-women credit still fall short.

Quick related

Students also ask

  • Discuss the role of science and technology in national security.

    Next question in the 2022 paper (Q6). View answer →

  • Is Stand-Up India the same as Startup India?

    No. Stand-Up India is a bank-loan mandate for SC/ST and women. Startup India is a start-up recognition and fund window.

  • Did Make in India meet the 25 percent manufacturing target?

    No. The share of manufacturing in GVA remains well below that ambition.

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2021 · Q13 · UPGS3 · 12 marks

    Do you agree with the statement that success of ‘Make in India’ programme depends on the success of ‘Skill India’ Programme and radical labour reforms? Discuss with logical arguments.

    View answer →

  2. 2020 · Q15 · UPGS3 · 12 marks

    What are the objectives of National Manufacturing Policy? Critically examine the 'Make in India' and 'Start-up India' initiatives.

    View answer →

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