GS Paper 3
Syllabus: Indian Economy
Source: WEF
Context: The paper, created by the World Economic Forum’s Advanced Manufacturing Industry community, highlights the role of advanced manufacturing in addressing global disruptions and promoting innovative, inclusive, and sustainable industry transformation.
What is Advanced Manufacturing?
Advanced manufacturing involves the use of innovative technologies to create both existing and new products. It encompasses production activities reliant on information, automation, computation, software, sensing, and networking.
Issues and Trends are shaping the manufacturing industry:
| Trends | Key Issues |
| Geopolitical tensions and
economic instability |
Shifting political landscapes and regulatory changes |
| Rising protectionism | |
| Challenges due to the war in Ukraine | |
| Social distrust and erosion of social cohesion | |
| Climate change | The need for carbon reduction and net-zero emissions |
| Transitioning to sustainable practices | |
| Technology integration | Intense technological competition |
| Escalating cybercrime | |
| The digital divide between frontrunners and laggards | |
| Changing people dynamics | Green transition and technological advancements |
| Supply chain transformations | |
| Demographic changes and societal values | |
| Need for workforce adaptation and upskilling |
How Advanced Manufacturing Can Resolve these Issues:
| Issue | Solutions |
| Geopolitical tensions and economic instability | Improve supply chain resilience through IoT technologies |
| Reduce operational and production costs through process automation | |
| Enhance predictions and responsiveness to dynamic customer demands | |
| Climate change | Accelerate energy efficiencies and promote renewable energy sources |
| Focus on value-added energy and sustainable production practices | |
| Technology integration | Stay competitive by adopting advanced manufacturing technologies |
| Foster innovation to maintain business competitiveness | |
| Changing people dynamics | Upskill and reskill workers to adapt to new manufacturing technologies |
| Make manufacturing an attractive career choice for new generations | |
| Address the talent gap in manufacturing |
Initiatives by the World Economic Forum (WEF) to support industry transformation:
| Initiative | Description |
| Global Lighthouse Network | Encourages the adoption of advanced Fourth Industrial Revolution technologies in manufacturing. |
| People as the Future of Manufacturing | This initiative, in collaboration with the University of Cambridge, aims to scale the use of technologies to augment, empower, and upskill the factory workforce. |
| Industry Net Zero Accelerator | Addresses the urgent need for companies to act on their commitments to achieving net-zero emissions due to climate change. |
| Circular Transformation of Industries | Focuses on driving systemic change in industries towards a circular economy. |
| Industrial Strategies for the Future of Supply Chains | Recognizes the need for a reassessment of global supply chain configurations driven by sustainability, resilience, talent, technology readiness, and changing customer demand. |
Mains Links
Q.1 “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far are the recent changes in Industrial Policy capable of increasing the industrial growth rate? (UPSC 2017)
Q.2 Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-à-vis the industry in the country? Can India become a developed country without a strong industrial base? (UPSC 2014)
Prelims Links:
In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? (UPSC 2015)
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
Ans: B
