Day 72 – Q 4. Despite all efforts India has not been able to attain self sufficiency in respect of industrial material. Comment.
4. Despite all efforts India has not been able to attain self sufficiency in respect of industrial material. Comment.
Industrial sector contributes around 25% to GDP of country but is severely lagging behind in terms of self-sufficiency and is majorly dependent on imports.
- Political Issues: Pre-Liberalization era restriction like license raj, Entry exit issues, Stability of government policies.
- Financial issues: Availability of cheap and affordable finance, FDI regulations, foreign investment restrictions.
- Research and Development: Lack of investment in R&D.
- Technology: Lack of innovation, upgradation, import restriction, local availability of technologies.
- Service sector: Increased emphasis on service sector as compared to manufacturing.
- Human Resources: Lack of skilled labor pool, cheap availability of labor compared to other neighboring countries etc.
Measures to increase the contribution:
- Industrial policy: Robust policies regarding import export, SEZ’s, Labour reforms, Export control units etc.
- Finance: Cheaper finance, removal of restrictions in FDI, Joint ventures etc.
- R&D: Increasing fund flow for R&D. Opening up of national laboratories for industrial investment.
- Education Policy: Change in education policy and increasing vocational courses as required from time to time.
Government is also coming up with reforms in sector like Make in India, Ease of Doing business. Bringing up schemes to provide affordable funds like Mudra Yojana, Start-up and Stand up India schemes. But more needs to be done in order to make India self-sufficient in case of Industrial material.
Best answer: Sandip