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Industrial Policy - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
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FAQs on Industrial Policy - Economics, UPSC IAS Exam Preparation Video Lecture - Indian Economy (Prelims) by Shahid Ali
| 1. What is industrial policy in economics? |  |
Ans. Industrial policy refers to the government's intervention in the economy to influence the growth and development of specific industries. It includes a set of measures and strategies implemented by the government to promote and protect industries, such as providing subsidies, tax incentives, trade restrictions, and infrastructure development.
| 2. What is the purpose of industrial policy? | |
Ans. The purpose of industrial policy is to promote economic growth, enhance competitiveness, and achieve structural transformation in the economy. It aims to support the development of targeted industries by providing them with necessary resources, creating a conducive business environment, and encouraging innovation and technological advancements.
| 3. How does industrial policy impact the economy? | |
Ans. Industrial policy can have both positive and negative impacts on the economy. On the positive side, it can stimulate industrial growth, attract investments, generate employment opportunities, and enhance export competitiveness. However, if implemented poorly, it may lead to inefficiencies, market distortions, and rent-seeking behavior, which can hinder overall economic development.
| 4. What are the key components of industrial policy? | |
Ans. The key components of industrial policy include sector-specific strategies, investment promotion, infrastructure development, research and development support, human capital development, trade policies, and regulatory frameworks. These components work together to create an enabling environment for targeted industries to thrive and contribute to the overall economic growth.
| 5. What are some examples of industrial policies implemented by governments? | |
Ans. Examples of industrial policies implemented by governments include export promotion policies, import substitution policies, targeted subsidies for specific industries, investment incentives, intellectual property rights protection, and public-private partnerships in infrastructure development. These policies vary across countries and depend on their specific economic conditions and development goals.
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Dec 28, 2024 Last updated |
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