“Liberalisation corrected shortages but produced regional concentration of benefits.” Analyse why growth became spatially clustered. Evaluate policy tools such as industrial corridors to overcome concentration risks.
Kartavya Desk Staff
Topic: Issues related to planning
Topic: Issues related to planning
Q6. “Liberalisation corrected shortages but produced regional concentration of benefits.” Analyse why growth became spatially clustered. Evaluate policy tools such as industrial corridors to overcome concentration risks. (15 M)
Difficulty Level: Medium
Reference: InsightsIAS
Why the question It assesses whether the candidate can link post-1991 liberalisation outcomes to uneven regional growth and evaluate state interventions like industrial corridors to correct spatial imbalances. Key demand of the question You must explain how liberalisation simultaneously removed shortages yet intensified geographic concentration, analyse drivers of spatial clustering, and assess corridors as a policy correction tool. Structure of the Answer Introduction Note the paradox: market efficiency gains after 1991 coincided with concentrated regional benefits in a few industrial–port–IT clusters. Body Liberalisation and concentration: Indicate how deregulation and FDI flows consolidated investment in pre-existing hubs with strong infrastructure and skilled labour bases. Drivers of spatial clustering: Mention asymmetrical logistics density, urban demand pools, differential state capacity and incentive-heavy coastal belts. Industrial corridors as correction: Refer to DMIC, EDFC, Gati Shakti and PLI spatial incentives aimed at shifting manufacturing footprints toward hinterland districts. Conclusion State-led corridor planning must align infrastructure dispersal with skill hubs, fiscal neutrality and governance capacity to counter long-standing regional concentration.
Why the question It assesses whether the candidate can link post-1991 liberalisation outcomes to uneven regional growth and evaluate state interventions like industrial corridors to correct spatial imbalances.
Key demand of the question You must explain how liberalisation simultaneously removed shortages yet intensified geographic concentration, analyse drivers of spatial clustering, and assess corridors as a policy correction tool.
Structure of the Answer
Introduction Note the paradox: market efficiency gains after 1991 coincided with concentrated regional benefits in a few industrial–port–IT clusters.
• Liberalisation and concentration: Indicate how deregulation and FDI flows consolidated investment in pre-existing hubs with strong infrastructure and skilled labour bases.
• Drivers of spatial clustering: Mention asymmetrical logistics density, urban demand pools, differential state capacity and incentive-heavy coastal belts.
• Industrial corridors as correction: Refer to DMIC, EDFC, Gati Shakti and PLI spatial incentives aimed at shifting manufacturing footprints toward hinterland districts.
Conclusion State-led corridor planning must align infrastructure dispersal with skill hubs, fiscal neutrality and governance capacity to counter long-standing regional concentration.