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.
