QUESTION : Critically analyse the potential of India’s manufacturing sector. What should the government do to harness it? 




  • India’s Position in Manufacturing Sector



  • Many think that in the aftermath of the pandemic, several manufacturing companies operating from China will relocate their businesses to other destinations, including India.


  • The first is the realisation that relying heavily on China for building capacities and sourcing manufacturing goods is not an ideal business strategy due to supply chain disruptions in the country caused by COVID-19.
  • The second is the fear of Chinese dominance over the supply of essential industrial goods.
  • The third is the growing risk and uncertainty involved in operating from or dealing with China in the light of geopolitical and trade conflicts between China and other countries, particularly the U.S.
  • Prime Minister Modi’s emphasis on using the COVID-19 crisis as an opportunity to pursue the goal of a self-reliant India must be viewed against this background.


  • In addition to its initiatives aimed at attracting manufacturing companies looking to relocate their plants to India from China, the Centre has urged the States to evolve their plans.
  • The Prime Minister’s emphasis on using the COVID-19 crisis as an opportunity to pursue the goal of a self-reliant India must be viewed against this background



  • India has three Ds (Democracy, demography and demand) for the growth of the manufacturing sector.
  • 65% of India’s population is below the age of 35 – an advantage when compared to other counties.
  • Studies have shown that every job created in the manufacturing sector has a multiplier effect in creating 2 to 3 jobs in the service sector.
  • High domestic demand, increasing middle class and young population and high returns make India attractive for the manufacturers.
  • The manpower cost is low when compared to other nations



  • China ranks first in contribution to world manufacturing output, while India ranks sixth.
  • India set a target of increasing the share of manufacturing in Gross Domestic Product (GDP) to 25% by 2022, but its share stood at 15% in 2018, only half of China’s figure.
  • Against the target of 12%, the manufacturing sector has grown at 7?ter India opened up its economy compared to China’s 10.68 %.
  • China was the second largest exporter of manufactured goods in 2018 after the European Union, with an 18% world share.
    • India is not even part of the top 10 exporters.


  • Weak infrastructure,
  • A disadvantageous tax policy environment,
  • A non-conducive regulatory environment,
  • High cost of industrial credit,
  • Poor quality of the workforce,
  • Rigid labour laws,
  • Restrictive trade policies,
  • Low R&D expenditure,
  • Delays and constraints in land acquisition.
  • Inability to attract large-scale foreign direct investment.


  • India, a federal government system: Active participation of State governments and effective policy coordination between the Centre and the States is needed to remove the manufacturing constraints.
  • Leading states in manufacturing: Currently Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh are driving manufacturing growth due to the availability of land in these geographically bigger states.


  • Some States having large land areas contribute disproportionately little in manufacturing GSDP. These include Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Telangana, and West Bengal.


  • GSDP is the sum total of value added by different economic sectors (Agriculture, Industry & Services) produced within the boundaries of the state calculated without duplication during a year.
  • It is one of the measures of economic growth for a state’s economy.
  • From Gross State Domestic Product (GSDP), the Consumption of Fixed Capitals (CFC) is deducted to arrive at NSDP i.e. NSDP = GSDP – CFC.
  • Consumption of Fixed Capital (CFC) is the value of fixed capital which is consumed during the process of production. It is calculated on the basis of life span of the fixed asset.
  • In the base year 2011-12 (=100) individual sector wise Gross Value Added (GVA) are calculated as per the methodology supplied by Central Statistics Office (CSO).



  • Make in India initiative aims to make India the global manufacturing hub. It also aims to increase the sector’s GDP share to 25% from the existing 16%, and create 100 million new jobs by 2022.
  • Skill India aims to create jobs and promote entrepreneurship within India.
  • Sharm Suvidha is a web portal that provides a single platform for all labour law compliances.
  • Other labour reform initiatives include Random Inspection Scheme, Universal Account Number and Apprentice Protsahan Yojana.
  • Defence Procurement Policy (DPP) prioritises the promotion of indigenous defense Technoloy.
  • National Manufacturing Policy (NMP) provides for Technology Acquisition and Development Fund (TADF) that facilitates the acquisition of clean, green and energy-efficient technology by MSMEs.
  • Pradhan Mantri MUDRA Yojana (PMMY) provides loans for small business.
  • Startup India scheme’s objective is to generate employment and promote economic development. Its seeks for the development and innovation of products and services and aims to increase the employment rate in India.
  • Standup India aims to promote entrepreneurship among women and SC and ST communities.
  • AtmaNirbhar Bharat Abhiyan (2020)



  • Promoting research and development.
  • Careful examination of manufacturing activities.
  • State-specific industrialisation strategies based on these reasons should be implemented in mission mode with the help of the central government.
  • Strong and carefully designed policy actions on the part of individual States would improve India’s overall investment climate, thereby boosting investments, jobs, and economic growth.
  • Forming a Strategy Group consisting of representatives from the Central and State governments along with top industry executives will instill teamwork and leverage ideas through sharing the best practices of the Centre and States.


QUESTION : Despite Consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.





  • Justice and Distributive Justice


  • The pursuit of greed and narrow self-interest leads to severe inequalities, to an unequal division of social benefits. This has made us to look at what Justice entails.


  • The burden of realising national goals such as development is not equally shared by all. This leads to unfair division of social labour
  • The burden is easily passed on to those who are powerless to desist it. Some people sacrifice virtually everything they have and others benefit without forgoing anything at all.
  • The least paid workers and peasants in our society are expected to offer the greatest sacrifices for building the nation
  • Also, concern for a fair distribution of benefits and burdens — the core issue of justice — is rare in mainstream public discourse.

 What is Justice?

  • The basic idea of justice is that ‘each person gets what is properly due to him or her’, that the benefits and burdens of society be distributed in a manner that gives each person his or her due.


  • Distributive justice concerns the socially just allocation of goods. Principles of distributive justice provides moral guidance for the political processes and structures that affect the distribution of benefits and burdens in society.
  • The basic principle of distributive justice is that equal work should produce equal outcomes and some people should not accumulate a disproportionate amount of goods.

There are 5 types of distributive norms:

  • Equality: Regardless of their inputs, all group members should be given an equal share of the rewards/costs. It is also known as ‘Strict Egalitarianism’.
  • Equity: Members’ outcomes should be based on their inputs. Equals should be treated equally and unequal, unequally
  • Power: Those with more power should receive more than those in lower-level positions.
  • Need: Those in greatest needs should be provided with the resources needed to meet those needs.
  • Responsibility: Group members who have the most should share their resources with those who have less.


  • The idea of distributive justice presupposes not only a social condition marked by an absence of love or familiarity, but also others which the Scottish philosopher, David Hume, termed ‘the circumstances of justice’.
  • For instance, a society where everything is abundantly available would not need justice.
  • Each of us will have as much of everything we want. Without the necessity of sharing, justice becomes redundant.
  • Equally, in a society with massive scarcity, justice is impossible. In order to survive, each person is compelled to grab whatever happens to be available.
  • Justice also presupposes that people are neither totally alone nor organically united with others
  • If one was totally fused with others, with no distinction between self and other, then again, sharing will be unnecessary.
  • Justice therefore presupposes a moral psychology in which humans are neither wholly selfish nor entirely benevolent.


  • Social justice is a concept of fair and just relations between groups within society as opposed to justice for individuals. It is based on the premise that, individual justice or injustice is intricately related to the social group he or she belongs.
  • according to feminist scholars, a woman does not get equal income for equal work just because of her gender as proved by the Global Gender Gap Index by World Economic Forum.


  • Criminal Justice System refers to the agencies of government charged with enforcing law, adjudicating crime, and correcting criminal conduct.
  • The criminal justice system is essentially an instrument of social control:
  • Society considers some behaviours so dangerous and destructive that it either strictly controls their occurrence or outlaws them outright.
  • It is the job of the agencies of justice to prevent these behaviours by apprehending and punishing transgressors or deterring their future occurrence.


  • Our society is afflicted by deep material, cultural and knowledge-related inequalities.
  • While dealing with resource/burden sharing, prominence given to hierarchical notions of Justice rather than egalitarian Justice
  • In hierarchical notions, what is due to a person (Justice) is established by her or his place within a hierarchical system. For instance, by rank determined at birth (Caste System)
  • In societies still infested with live hierarchies, people must first struggle for recognition as equals, for what might be called basic social justice.
  • Then, they must decide how to share all social benefits and burdens among equal persons — the essence of egalitarian distributive justice.


  • Two main contenders exist for interpreting what is due to persons of equal moral worth.
  • First, the need-based principle for which, what is due to a person is what she really needs, i.e., whatever is necessary for general human well-being (basic needs)
  • Second, the principle of desert for which, what is due to a person is what he or she deserves determined by her own qualities and hard work.


  • Delay in Justice – Speedy trial is guaranteed under article   21   of   the   Constitution   of India.   Any   delay   in   expeditious   disposal   of   criminal   trial   infringes   the right   to   life   and   personal   liberty   guaranteed   under   article   21   of   the Constitution.   The   debate   on   judicial   arrears   has   thrown   up   number   of ideas on how the judiciary can set its own house in order.
  • In almost   every   High   Court,   there   is   huge   pendency   of   cases   and the   present   strength   of   the   judges   can   hardly   be   said   to   be   sufficient   to cope   with   the   alarming  
  • The post of Chief Justice is transferable. This practice was introduced in our country after the ‘Emergency’ had been imposed. The Chief Justice, who comes on transfer for a short period of six months, one or two years, is a new man, rather alien for the place and passes his time anyhow. He has to depend on others for policy decisions in administrative matters.
  • Judicial procedure is   very   complex,   costly   and   dilatory   putting   the   poor   at   a distance from justice.
  • Lawyers in addition to being champion at the various laws   also   has   a social   responsibility   of  helping   the   ignorant   and the underprivileged to attain justice. This element is missing in present times.


  • Practical and effective reforms in consonance with basic features of the Constitution
  • Accountability of the judiciary
  • Speedy justice
  • Reduction in costs of litigation
  • Systematic running of the courts
  • Faith in the judicial system


  • Putting justice back into public discourse should be our priority. Or else, the dreams of our nation will never turn into reality.


  • A balanced approach is required to create harmony between social justice and distributive justice.
  • : while reservation based on social group should continue to provide social justice, the creamy layer should be introduced to prevent a section of underprivileged group to secure all benefits to provide distributive justice.

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