Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Q5. “Domestic assembly without control over upstream inputs creates only limited self-reliance.” Comment in the context of India’s manufacturing sector. (10 M)
Difficulty Level: Medium
Reference: DTE
Why the question
Whether the expansion of domestic assembly has produced genuine technological and industrial self-reliance in India.
Key Demand of the question
Explain the contribution of assembly-led manufacturing, while establishing why dependence on imported inputs, technology and designs limits India’s self-reliance.
Structure of the Answer:
Introduction
Briefly distinguish between domestic assembly and deeper manufacturing capability based on indigenous value addition and technological control.
Body
- Assembly as an initial advantage: Mention how domestic assembly can promote production, employment, exports and gradual integration into global value chains.
- Limits to self-reliance: Discuss how dependence on imported components, critical materials, machinery, designs and intellectual property restricts domestic value addition and strategic autonomy.
- Deepening manufacturing capability: Suggest developing upstream industries, domestic supplier networks, research capabilities, critical-input security and technology-based industrial incentives.
Conclusion
Conclude that assembly should operate as a stepping stone towards an integrated, innovative and globally competitive manufacturing ecosystem.
