Assess the role of industrial parks and cluster-based development in India’s strategy to become a global manufacturing hub. What challenges hinder their optimal functioning? Suggest policy reforms to address them.
Kartavya Desk Staff
Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth
Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth
Q6. Assess the role of industrial parks and cluster-based development in India’s strategy to become a global manufacturing hub. What challenges hinder their optimal functioning? Suggest policy reforms to address them. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question: The Bulk Drug Park and the steel plant proposed in Anakapalli district will create thousands of jobs, Home Minister (State) has said. Key Demand of the question: To assess the contribution of industrial parks and clusters to India’s manufacturing goals, examine structural and policy challenges, and suggest reforms to improve their efficiency and sustainability. Structure of the Answer: Introduction Briefly define industrial parks and clusters, linking them to India’s global manufacturing ambitions. Body Explain their economic and strategic role in manufacturing growth (scale, efficiency, innovation). Identify key bottlenecks like regulatory overlaps, connectivity gaps, skill mismatch, and environmental risks. Suggest institutional, logistical, skilling, and green reforms to revitalise the cluster model. Conclusion Emphasise the need to integrate cluster policy with broader economic, social, and environmental goals for long-term global competitiveness.
Why the question: The Bulk Drug Park and the steel plant proposed in Anakapalli district will create thousands of jobs, Home Minister (State) has said.
Key Demand of the question: To assess the contribution of industrial parks and clusters to India’s manufacturing goals, examine structural and policy challenges, and suggest reforms to improve their efficiency and sustainability.
Structure of the Answer:
Introduction Briefly define industrial parks and clusters, linking them to India’s global manufacturing ambitions.
• Explain their economic and strategic role in manufacturing growth (scale, efficiency, innovation).
• Identify key bottlenecks like regulatory overlaps, connectivity gaps, skill mismatch, and environmental risks.
• Suggest institutional, logistical, skilling, and green reforms to revitalise the cluster model.
Conclusion Emphasise the need to integrate cluster policy with broader economic, social, and environmental goals for long-term global competitiveness.