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UPSC MainsGENERAL-STUDIES-PAPER-I20125 Marks50 Words
Q16.

List the main objectives of the National Manufacturing Policy (NMP), 2011.

How to Approach

The question requires a direct listing of objectives. A structured approach is best: briefly introduce the NMP 2011, then list the objectives in a clear, concise manner. Focus on the core aims of the policy. Avoid detailed explanations of each objective; simply state them. The answer should be factual and to the point, adhering to the word limit. Prioritize the most significant objectives.

Model Answer

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Introduction

The National Manufacturing Policy (NMP), 2011, was a comprehensive policy framework aimed at boosting the manufacturing sector in India. Recognizing manufacturing’s crucial role in economic growth, employment generation, and technological advancement, the NMP sought to address systemic issues hindering the sector’s potential. It envisioned transforming India into a global manufacturing hub. The policy aimed to create a favorable environment for enhancing the competitiveness of domestic manufacturers and attracting foreign investment.

Main Objectives of the National Manufacturing Policy (NMP), 2011

The NMP 2011 outlined several key objectives:

  • Increase Manufacturing Sector’s Contribution to GDP: The policy aimed to increase the manufacturing sector’s contribution to GDP from around 10-11% to 25% by 2022.
  • Create Jobs: A significant objective was to create 100 million additional jobs in the manufacturing sector by 2022.
  • Enhance Global Competitiveness: The NMP focused on improving the competitiveness of Indian manufacturers in both domestic and international markets.
  • Promote Technology Upgradation & Innovation: Encouraging the adoption of advanced technologies and fostering innovation within the manufacturing sector was a core objective.
  • Improve Infrastructure: Addressing infrastructure bottlenecks, including power, transportation, and logistics, was crucial for supporting manufacturing growth.
  • Rationalize Regulatory Framework: Simplifying and rationalizing regulations to reduce the cost of doing business and promote ease of manufacturing.
  • Develop National Manufacturing and Investment Areas (NMIAs): Establishing NMIAs to provide world-class infrastructure and a conducive business environment.
  • Promote Sustainable Manufacturing: Encouraging environmentally sustainable manufacturing practices and resource efficiency.

Key Components Supporting the Objectives

Several initiatives were proposed to achieve these objectives, including:

  • Skill Development: Investing in skill development programs to create a skilled workforce for the manufacturing sector.
  • Financial Incentives: Providing financial incentives, such as tax benefits and subsidies, to encourage investment in manufacturing.
  • Technology Acquisition: Facilitating technology transfer and acquisition to enhance manufacturing capabilities.
  • Infrastructure Development: Investing in infrastructure projects, such as roads, ports, and power plants, to support manufacturing growth.

The policy also emphasized the importance of promoting micro, small, and medium enterprises (MSMEs) as key drivers of manufacturing growth.

Conclusion

The National Manufacturing Policy, 2011, represented a significant attempt to revitalize India’s manufacturing sector. While ambitious in its goals of boosting GDP contribution, creating jobs, and enhancing competitiveness, its implementation faced challenges. The policy highlighted the critical need for infrastructure development, skill enhancement, and a streamlined regulatory environment to unlock the full potential of Indian manufacturing. Subsequent policies like ‘Make in India’ built upon the foundations laid by the NMP.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

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Additional Resources

Key Definitions

Ease of Doing Business
Refers to the simplicity and efficiency of regulations and procedures that businesses must follow to operate in a particular country or region.

Key Statistics

Manufacturing sector contributed approximately 17% to India’s GDP in 2023-24 (Provisional Estimates).

Source: Ministry of Commerce and Industry, Government of India (2024)

India’s rank in the World Bank’s Ease of Doing Business index improved from 130 in 2016 to 63 in 2019, partially influenced by reforms aligned with the NMP’s objectives.

Source: World Bank (Knowledge cutoff: 2021 - Index discontinued in 2021)

Examples

Delhi-Mumbai Industrial Corridor (DMIC)

A key project envisioned under the NMP 2011, the DMIC aimed to develop a world-class industrial infrastructure corridor connecting Delhi and Mumbai, fostering manufacturing and economic growth along the route.

Frequently Asked Questions

▶Was the NMP 2011 successful in achieving its targets?

The NMP 2011 largely fell short of its ambitious targets, particularly the 25% GDP contribution and 100 million jobs creation. Implementation challenges, infrastructure deficits, and global economic factors contributed to this outcome.

Topics Covered

EconomyIndustrial PolicyManufacturing SectorEconomic GrowthInvestment
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