Cheat Sheet: Industry and Infrastructure | Indian Economy for UPSC CSE PDF Download

Industrial Development in India

• Pre-1991: License Raj, state-led growth, inefficiencies.
• Post-1991 Reforms: Shift to liberalization, privatization, and globalization. Boost in private investment and FDI.
• 2025 Focus: Balanced industrial development via PLI schemes, digital infrastructure, and green industrial policy.

Industrial Policies

Disinvestment

• Types: Minority Stake Sale, Strategic Sale, Asset Monetization.
• Recent Examples:
  • 2021–2023: LIC IPO, Air India privatization.
  • 2024–2025: IDBI Bank (strategic), CONCOR (proposed).
  • Policy Shift: Government to retain presence only in strategic sectors.
  • Debates: Use of proceeds—should it fund fiscal deficit or be reinvested in infrastructure?

MSME Sector

Significance: 30% of GDP, 48% exports, employment to 11 crore.
Schemes:

• Udyam Registration (replaces Udyog Aadhaar).
• Emergency Credit Line Guarantee Scheme (ECLGS) – Extended to 2024.
• RAMP Scheme (2022–2026) – Enhances productivity, competitiveness.

Ease of Doing Business (EoDB)

• Improvements: Digitization, single window clearances.
• India’s Focus (Post-WB Rankings): State-level EoDB, industrial clusters, startup facilitation.
• Major Push: National Single Window System (NSWS), decriminalization of business laws (2023–25).

Make in India & Start-up India

Infrastructure Sector

National Infrastructure Pipeline (NIP)

• Outlay: ₹111 lakh crore (2020–25).
• Sectors: Energy (24%), Roads (18%), Railways (12%).
• Monitoring: Dashboard for real-time tracking.

Energy Sector

• Petroleum Sector Challenges: Import dependence (85%), high global oil prices.
• Alternative Push:
  • Biofuels Policy 2018 (Updated 2022) – Ethanol blending target of 20% by 2025.
  • Green Hydrogen Mission (2023) – ₹19,744 crore investment.
• Renewable Energy:
  • Installed RE capacity: ~180 GW (2025 target: 500 GW).
  • Solar dominance: Top 5 globally.

Transport Infrastructure

• Roads:
  • Bharatmala Phase-II (2024–2028) approved with ~₹10 lakh crore outlay.
  • FASTag-led toll collection surge.
• Railways:
  • PM Gati Shakti integration.
  • Vande Bharat trains, electrification (100% goal by 2030).
• Civil Aviation:
  • UDAN Scheme – 500+ routes operational by 2025.
  • No. of airports: >150; 220+ targeted by 2030.

Urban Infrastructure

Smart Cities Mission:

• 100 cities, nearing completion in most.
• Emphasis: IT-enabled services, urban mobility, waste management.

Housing:

• PMAY–Urban: 1.18 crore houses sanctioned (as of mid-2025).
• Affordable Rental Housing Complexes (ARHC) for migrants.

PPP Models & Logistics

PPP Models:

• BOT, HAM, EPC prevalent.
• Revamp via Model Concession Agreements.

Logistics:

• National Logistics Policy (2022): Aims to reduce logistics cost to 8% of GDP (currently ~13%).
• Dedicated Freight Corridors expanding rapidly.

Recent Additions & Reforms (2023–2025)

PM Gati Shakti Master Plan: Multi-modal infra, digital planning via GIS mapping.

National Monetization Pipeline (NMP):

• Target: ₹6 lakh crore (2021–25).
• Assets: Roads, power, telecom, airports.