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Home/upsc: industry/Page 3

Mains Answer Writing Latest Questions

Rajashree Shirke
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Rajashree ShirkeLearner
Asked: January 17, 2025In:
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Roadmap for Answer Writing 1. Introduction Briefly introduce India’s textile sector, its contribution to the economy, and the challenges it faces. State the focus of the answer: discussing the reasons for underperformance and possible measures to enhance competitiveness. 2. Factors Contributing to India’s Underperformance Lack ...

upsc: industry
  1. Team
    Best Answer
    Team Supreme

    Model Answer Lack of Large-Scale Industries: India's textile sector is dominated by small, informal weaving and processing units. Complex labor laws, weak export contract laws, and challenges in hiring and firing employees deter large-scale investments, reducing the sector’s competitiveness. High PrRead more

    Model Answer

    1. Lack of Large-Scale Industries: India’s textile sector is dominated by small, informal weaving and processing units. Complex labor laws, weak export contract laws, and challenges in hiring and firing employees deter large-scale investments, reducing the sector’s competitiveness.
    2. High Production Costs: The absence of technological advancements in small-scale units and lack of economies of scale results in higher production costs and inferior product quality. This makes Indian textiles less competitive compared to countries like China and Vietnam.
    3. Trade Barriers: India lacks free trade agreements (FTAs) with key textile-importing markets, leading to higher prices for Indian products. Countries like Bangladesh benefit from duty-free access to the EU, offering them a significant advantage.
    4. Declining Cotton Production: India’s cotton production dropped to a 15-year low in 2023-24, while countries like China benefit from intensive farming techniques that boost their cotton production, further affecting India’s textile industry.
    5. Low Labour Productivity: The Indian textile industry suffers from low labour productivity, caused by a shortage of skilled workers and outdated technologies. China, for example, has nearly double the labour productivity compared to India.

    Measures to Enhance Competitiveness

    1. Promotion of Synthetic Apparel: Shifting towards synthetic fabrics would allow Indian textile manufacturers to produce year-round, overcoming the seasonal limitations of cotton-based industries and increasing production.
    2. Strengthening Weaving and Processing Sectors: Establishing large-scale, formal weaving and processing units would help standardize quality and improve production efficiency.
    3. Industry-Friendly Labour Laws: India should introduce flexible labour laws to encourage large-scale investments, such as those seen in the services sector, which would improve industry growth.
    4. Negotiating Trade Agreements: India should prioritize ratifying preferential free trade agreements with key markets like the EU, UK, and Canada to ensure competitive pricing and improved market access.

    Government Initiatives

    • The government has implemented schemes like PM MITRA Parks, Production-Linked Incentive (PLI), and the National Technical Textiles Mission to bolster the textile sector. These initiatives aim to meet the export target of $65 billion by 2026 and generate new employment opportunities.
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Rajashree Shirke
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Rajashree ShirkeLearner
Asked: January 17, 2025In:
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Roadmap for Answer Writing 1. Introduction Briefly define what industrial clusters are. Introduce the importance of industrial clusters in India’s economic development. 2. Key Factors Contributing to the Rise of Industrial Clusters Historical Legacy: Discuss how traditional craftsmanship and legacy industries have evolved into clusters, ...

upsc: industry
  1. Team
    Best Answer
    Team Supreme

    Model Answer 1. Rich Historical Legacy Industrial clusters in India often have a deep-rooted historical legacy, where traditional artisans and families have been creating products for generations. Over time, this led to the accumulation of expertise in product formation. For instance, the MoradabadRead more

    Model Answer

    1. Rich Historical Legacy

    Industrial clusters in India often have a deep-rooted historical legacy, where traditional artisans and families have been creating products for generations. Over time, this led to the accumulation of expertise in product formation. For instance, the Moradabad brass cluster and the Aligarh lock cluster are prime examples of such legacy-driven industrial hubs.

    2. Existence of Large Enterprises

    The presence of large enterprises within a region can stimulate the growth of smaller firms, creating a ripple effect that fosters cluster development. A notable example is the Heavy Engineering Fabrication cluster of Trichy and the Rubber cluster of Kottayam, where large industries anchor the growth of numerous smaller enterprises.

    3. Supportive Regional Policies

    Government policies play a crucial role in the development of industrial clusters. A favorable law and order situation, along with a supportive regulatory framework, can promote cluster growth. The Maharashtra government’s subsidies and grants to the Floriculture cluster in Pune exemplify the positive impact of such policies.

    4.Entrepreneurial Dynamism

    The entrepreneurial spirit is pivotal to the growth of industrial clusters. For instance, the Diesel Engine and Engineering Cluster in Rajkot began in the 1940s with a few entrepreneurs, and today it includes over 6,000 enterprises, contributing significantly to the regional economy.

    Benefits to Enterprises from Operating within Clusters

    1. Formation of New Businesses
      Clusters foster entrepreneurial activity by lowering the cost of starting new ventures. The Coir Cluster of Alleppey, for instance, has given rise to over 4,500 small enterprises.
    2. Market Development
      Businesses in clusters benefit from collective marketing efforts that help them access larger and more diverse markets. The Hosiery Cluster of Ludhiana, worth 20,000 crore, accounts for over 90% of India’s apparel production.
    3. Network Formation with Supporting Institutions
      Industrial clusters enable greater collaboration between businesses and supporting institutions, like research institutes and testing laboratories, facilitating innovation. The Trichy Heavy Engineering Fabrication Cluster, for example, has ties with educational institutes to enhance productivity.
    4. Improved Costs and Increased Sales
      Economies of scale allow businesses in clusters to reduce costs, such as through bulk purchasing and shared distribution channels, resulting in lower operational expenses and increased profits.

    Conclusion

    In conclusion, India’s industrial clusters offer numerous benefits to enterprises, including cost savings, market access, and networking opportunities, while also being shaped by historical, entrepreneurial, and policy-driven factors. The Ministry of MSME’s Cluster Development approach further promotes the competitiveness and productivity of Micro and Small Enterprises (MSEs).

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Team
  • 0
TeamSupreme
Asked: September 9, 2024In:
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Is it possible for the regional resource-based manufacturing strategy to support job growth in India? (250 words) [UPSC 2019]

upsc: industry
  1. Visha Patnaik
    Visha Patnaik Learner

    Regional Resource-Based Manufacturing for Employment Promotion in India 1. Employment Generation through Local Resources: The strategy of regional resource-based manufacturing focuses on utilizing locally available raw materials to establish industries, which can significantly boost employment in ruRead more

    Regional Resource-Based Manufacturing for Employment Promotion in India

    1. Employment Generation through Local Resources:
    The strategy of regional resource-based manufacturing focuses on utilizing locally available raw materials to establish industries, which can significantly boost employment in rural and underdeveloped areas. For example, the textile industry in Gujarat, based on locally grown cotton, has created numerous jobs, supporting both agriculture and manufacturing sectors.

    2. Boost to MSMEs:
    Regional resource-based manufacturing can drive the growth of Micro, Small, and Medium Enterprises (MSMEs) by leveraging local resources. MSMEs are the backbone of employment in India, providing nearly 30% of total jobs. A case in point is Chhattisgarh’s bamboo-based industry, which has empowered local artisans and small enterprises, promoting sustainable livelihoods.

    3. Inclusive Economic Growth:
    By focusing on local resources, industries can stimulate inclusive growth in backward regions, reducing the economic disparity between urban and rural areas. Odisha’s steel and aluminum industries, based on local mineral resources, have not only generated employment but also contributed to regional development.

    4. Environmental Sustainability and Reduced Costs:
    Regional manufacturing reduces transportation costs and energy consumption, thus promoting environmental sustainability. For example, Kerala’s coir industry uses locally available coconut husk, minimizing carbon emissions while promoting local employment.

    5. Challenges and Solutions:
    While this strategy has potential, challenges like skill development and infrastructure bottlenecks must be addressed. Skill enhancement programs like PMKVY (Pradhan Mantri Kaushal Vikas Yojana) can support local labor in adapting to industrial needs, ensuring the success of this strategy.

    Conclusion:
    The strategy of regional resource-based manufacturing has significant potential to promote employment in India, especially in rural and backward areas. By aligning local resources with industrial growth, India can achieve both economic development and employment generation, as seen in regions like Gujarat and Odisha.

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Kiran Srivastava
  • 3
Kiran SrivastavaBegginer
Asked: July 10, 2024In:
  • 3

Emphasize how important industrial clusters are to India. Name the nation’s most significant industrial clusters and outline the key traits that set them apart.

upsc: industry
  1. Kunal Joshi
    Kunal Joshi Learner

    An industrial cluster is a geographic concentration of interconnected companies, suppliers, and supporting institutions within a specific industry or sector, facilitating collaboration, knowledge exchange, and shared resources to enhance the competitiveness and innovation of the businesses involved.Read more

    An industrial cluster is a geographic concentration of interconnected companies, suppliers, and supporting institutions within a specific industry or sector, facilitating collaboration, knowledge exchange, and shared resources to enhance the competitiveness and innovation of the businesses involved. Examples include Auto Tech Cluster in Ludhiana, and Hi-tech Metal Cluster in Mohali. They hold immense significance by shaping the economic topography of India.

    Significance of Industrial Clusters for India:

    • Enhanced Productivity: Industrial clusters promote economies of scale and scope, enabling companies to access specialized skills, technologies, and resources. This leads to increased productivity and efficiency. Bengaluru’s IT cluster serves as a prime example.
    • Reduced Costs: Clusters benefit from shared infrastructure, logistics, and supply chains, which can lead to cost reduction. For example, the automotive cluster in Chennai, known as the “Detroit of India,” benefits from a well-established supply chain network, reducing production costs for automakers.
    • Skilled Workforce: Clusters attract a pool of skilled workers and professionals with expertise in the specific industry, creating a competitive labor market. Hyderabad’s IT cluster serves as an example.
    • Access to Markets: Proximity to customers and suppliers within a cluster simplifies market access and distribution networks. For example, the textile cluster in Tirupur, has easy access to domestic and international markets, making it a major exporter of textiles and garments.
    • Global Competitiveness: Concentrations of industries in clusters can enhance a region’s global competitiveness by fostering specialization and expertise in that industry. The diamond polishing and trading cluster in Surat, Gujarat, accounts for 90 percent of the world’s diamond processing, contributing to India’s global leadership in the diamond industry.
    • Knowledge Spillovers: Clusters facilitate knowledge spillovers, where innovations and best practices spread quickly among businesses. This fosters a culture of continuous improvement. For example, ITC Food Park in Kapurthala serves as an example.
    • Sustainability and Environment: Clusters can focus on sustainable practices and environmental protection. For instance, the textile and apparel cluster in Coimbatore, is known for adopting eco-friendly production processes, contributing to a more sustainable textile industry.

    Industrial Clusters in India and Their Characteristics:

    • Tirupur Textiles Cluster:
      • Characteristics:
        • Tirupur boasts over 50% of India’s knitwear-based apparel product exports.
        • The apparel industry in Tirupur is primarily composed of MSMEs, constituting 95% of the sector.
        • Around 9,000 units in Tirupur employ approximately 6 lakh workers directly, with 65% being semi-literate rural women.
        • The cluster’s consistent growth is fostered by robust infrastructure, local entrepreneurial skills, leadership, and favorable State Government policies.
    • Bengaluru Science & Technology Cluster (BeST):
      • Characteristics:
        • The identified sectors for focus are Information Technology, Health & Wellness, Urban Life, and Futuristic Technologies.
        • Teams have been formed to focus on diverse areas such as OneHealth, Digital Health, Precision Agriculture, Urban Transportation, Monsoon & Climate Change, Quantum Technologies, Active Matter & Robotics, and Jet Engine development.
        • A Section 8 company is being established to foster collaboration among more than 50 organizations, including academic institutions, industry partners, civil society, and government bodies. This independent entity will offer organizational support and oversee resource management.
    • Hyderabad Pharma City (HPC):
      • Characteristics:
        • It is the world’s largest integrated cluster for pharmaceutical industries.
        • Focuses on Research and Development and Manufacturing.
        • It has been recognized as a National Investment and Manufacturing Zone (NIMZ) by the Government of India.
    • ITC Food Park, Kapurthala:
      • Characteristics:
        • First mega food park of Punjab.
        • Spans over 72 acres of land.
        • At the ITC Food Park, a wide array of popular brands, including ‘Aashirvaad,’ ‘Bingo!,’ ‘YiPPee!,’ ‘B Natural,’ and ‘Sunfeast,’ are manufactured to meet consumer demands.
    • Electronics Manufacturing Clusters, Greater Noida:
      • Characteristics:
        • An SPV (Special Purpose Vehicle) has been established for the purpose of overseeing the development, operation, and maintenance of a new Electronic Manufacturing Cluster with no prior industrial infrastructure.
        • The cluster offers a streamlined process with single window clearance, facilitating ease of doing business for enterprises operating within it.

    Industrial clusters serve as pivotal catalysts for India’s economic growth and its drive towards global competitiveness. Given India’s ambitious goal of achieving a $5 trillion economy by 2025, it is imperative to prioritize the nurturing and sustenance of these clusters through strategic investments, robust policy support, and a relentless commitment to fostering innovation.

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Babita Singh
  • 0
Babita SinghBegginer
Asked: June 27, 2024In:
  • 0

Provide a critical analysis of the regional barriers to India’s sustainable tourist industry. (Answer in 250 words)

upsc: industry
  1. Dolly Mehara
    Dolly Mehara Learner

    The World Tourism Organization defines sustainable tourism as "tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities". India has emerged as one of the fastest growingRead more

    The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities”. India has emerged as one of the fastest growing locations for tourism due to improved access to distant locations, larger disposable income and rising lifestyle aspirations of the domestic population and increased number of international tourists.

    However, region-specific constraints exist with regard to sustainable tourism. These include:

    • Coastal tourism:
      • Weak enforcement of coastal regulations has led to haphazard extension of accommodation facilities beyond carrying capacities of these areas, especially in the eastern coast such as in Digha (West Bengal) and Puri (Odisha).
      • Biodiversity in coastal areas such as corals are threatened due to an increase in activities like snorkelling, scuba diving, etc. which are largely under-regulated.
      • Increasing frequency and intensity of cyclones on the eastern coast is another major constraint.
    • Himalayan tourism: Huge influx of adventure enthusiasts and other tourists confined during the summer months especially, translates to greater anthropogenic pressure. This results in increased air pollution, water pollution, generation of waste beyond the handling capacity of regions, such as in the case of Shimla and Manali.
    • North-East region: Issues like poverty, insurgency as well as limited infrastructural facilities have thus far prevented the North-East region from realizing its full tourism potential.
    • Eco-tourism: Wildlife or nature-based tourism is growing in India, especially in North and Central India due to increased tiger sightings. But, the following constraints restrict sustainable tourism:
      • National parks such as Ranthambore, Kanha and Pench face severe water shortage in the summer months, as luxury tourist resorts overuse the water resources.
      • Local people get only seasonal employment and the major share of profits are cornered by resort owners.
      • Rapidly changing land use outside the national parks coupled with heavy vehicular traffic is rapidly changing and impacting wildlife movement.
      • Major natural World Heritage Sites namely the Western Ghats, Sundarbans National Park and Manas Wildlife Sanctuary are facing threats from mining activities, oil and gas exploration, dam construction and unsustainable water use.
    • Religious and cultural tourism:
      • Religious places in India observe mass gathering, which, at times, is beyond the carrying capacity of the region thus generating huge amounts of solid waste such as plastic bottles, coconut shells, hair, etc.
      • States like Uttar Pradesh and Bihar have multiple sites for cultural tourism, however, they lag behind when it comes to the safety and security of the tourists, connectivity and basic infrastructure and lack of marketing about the region.

    In the 2030 Agenda for Sustainable Development, SDG target 8.9 aims to devise and implement policies to promote sustainable tourism. In this regard, the Ministry of Tourism has launched the National Strategy for Sustainable Tourism and Responsible Traveller Campaign.

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Anjali Sharma
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Anjali SharmaBegginer
Asked: June 25, 2024In:
  • 0

India has a chance to enter this market as the globe struggles with a severe semiconductor scarcity. Discuss the difficulties facing India’s semiconductor design sector in this setting, along with possible solutions. (Answer in 250 words)

upsc: industry
  1. Pranjal shekh
    Pranjal shekh Begginer

    The chip-making industry is a highly concentrated one, with the big players being Taiwan, South Korea, the US, among others. The global chip shortage, US-China tensions over Taiwan, and the supply chain blockages owing to the Russia-Ukraine conflict have led major economies to enter the chip-makingRead more

    The chip-making industry is a highly concentrated one, with the big players being Taiwan, South Korea, the US, among others. The global chip shortage, US-China tensions over Taiwan, and the supply chain blockages owing to the Russia-Ukraine conflict have led major economies to enter the chip-making sector with a renewed push.
    Considering the fast-developing electronics manufacturing and innovation ecosystem going forward, India is in a good position to take advantage of the current circumstances. The global market for producing semiconductors is expected to reach $1 trillion by 2030 and India has the chance to take home nearly $80 billion of the market according to the India Electronics and Semiconductor Association.
    However, given its relative inexperience in the field, India still has a lot of obstacles/challenges to clear before it can play a significant role in the chip-making supply chain, such as:

    • Need of massive capital investment: Semiconductor manufacturing is a very complex and technology-intensive sector involving huge capital investments, high risks and long gestation and payback periods requiring technology adaptation. For instance, just the setting up of one semiconductor fab requires an investment of anywhere between $3 to $7 billion.
    • Lack of adequate fabrication capacity: Despite having formidable chip design talent, India did not aggressively build-up its chip fabrication capacity. ISRO and the DRDO have their respective fab foundries but they are primarily for their own requirements and are also not as sophisticated. As of now, India has only one old fab which is located in Mohali, Punjab.
    • Resource-intensive industry: Chip-making requires gallons of ultrapure water in a single day and uninterrupted supply of power is central to the process, which could be a task for the government to provide to factories/industries. Further, a lot of land and development of a highly skilled workforce is required.
    • Lack of ecology and expertise: Majority of India’s semiconductor production has been focused on the nation’s state-run defence and space industries. There is a need for government and business collaboration in order to scale up to the potential required.

    Although the government has taken several steps such as production-linked incentive (PLI) scheme, design-linked initiative (DLI) scheme, establishing semiconductor plants in different states, etc., various steps can be taken to give a push to the chip design industry in India. These include:

    • Creating a chip design ecosystem in the country and formulating a plan on how it can train, retain and productively utilize the Indian talent and engage engineers constructively on projects of national importance rather than allowing them to seek employment elsewhere.
    • Establishing the Semiconductor Authority of India (SAI), an entity under the Ministry of Electronics and Information Technology (MeitY), to establish a world-class Integrated Chip Design Centre (ICDC).
    • Identifying national projects for chip design, looking for Indian and export markets and providing funding for their implementation and delivery.
    • Procuring legacy chip designs’ IPs from potential sources rather than reinventing.
    • Coordinating with fabless and semiconductor companies for joint development of chips.
    • Modulating the industrial, import and taxation policies to enhance chip designing and manufacturing.
    • Nurturing a semiconductor laboratory with adequate funding to grow it into a large manufacturing facility, irrespective of the private companies entering the Indian semiconductor industry and staying competitive.

    Due to the rising demand for digital products, semiconductor sales on a global scale reached $152.5 billion in the second quarter of 2022. Concerted efforts are required to set up India’s own ‘Silicon Valley’ as India transitions from chip-taking to chip-making.

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