Industrial Policy 1948, 1956, 1991 — Current Affairs 2026

Current Affairs Connections

Recent developments and news linked to Industrial Policy 1948, 1956, 1991.

India's PLI Schemes: A New Chapter in Manufacturing-Led Growth (2024-2025)

Ongoing (launched 2020, expanded 2024-2025)

The Production Linked Incentive (PLI) schemes, launched across 14 key sectors, represent a modern iteration of industrial policy, albeit with a market-oriented approach. Unlike the IPR 1956's focus on state-led production, PLI schemes incentivize private and foreign companies to boost domestic manufacturing and exports by offering financial rewards on incremental sales. This policy builds directly on the NIP 1991's liberalization framework by promoting private sector growth and global integration, but with targeted government support to create manufacturing champions and reduce import dependence, echoing the self-reliance objective of earlier policies but through market mechanisms. From a UPSC perspective, this shows a nuanced evolution: from state-owned production to state-regulated private production, and now to state-incentivized private production.

UPSC Angle: Analyze how PLI schemes represent a 'neo-industrial policy' approach, combining elements of market liberalization (NIP 1991) with strategic state intervention (echoing IPR 1956's intent but not method). Discuss its potential to achieve 'Make in India' and 'Atmanirbhar Bharat' goals, its impact on global value chains, and challenges in implementation. Compare and contrast the tools used in PLI with the tools of IPR 1956 (licensing) and NIP 1991 (delicensing).

Government's Push for Ease of Doing Business and Investment Facilitation (2024-2026)

Ongoing initiatives

The continuous efforts by the Indian government to improve the 'Ease of Doing Business' rankings, streamline regulatory processes, and attract foreign and domestic investment are direct descendants of the New Industrial Policy 1991. The NIP 1991 aimed to dismantle the bureaucratic hurdles of the License Raj, and current reforms, such as single-window clearances, digitization of approvals, and rationalization of labor laws, continue this trajectory. These measures are designed to reduce compliance burdens, enhance transparency, and create a more investor-friendly environment, directly addressing the inefficiencies and discretionary powers that characterized the pre-1991 industrial regime. This demonstrates a sustained commitment to the principles of liberalization and market efficiency.

UPSC Angle: Examine the evolution of regulatory philosophy from the restrictive 'License Raj' to the facilitative 'Ease of Doing Business' framework. Discuss the economic rationale behind these reforms, their impact on industrial growth, job creation, and foreign investment. Evaluate the challenges in achieving a truly seamless business environment and how these efforts align with India's broader economic goals of becoming a global manufacturing hub. Connect this to the constitutional right to carry on trade and business (Article 19(1)(g)) and how policy aims to create an environment where this right can be exercised effectively.