India’s growth story in the 21st century is closely tied to the evolution of its industrial policies. As the country moves to strengthen its global manufacturing presence, understanding the Modern Industrial Policy becomes essential for UPSC aspirants. Industrial policy today is no longer just about increasing production; it involves shaping innovation, building competitive domestic capabilities, encouraging foreign investment, and creating resilient supply chains. For aspirants preparing for both Prelims and Mains, this forms a crucial part of GS-III (Economy), GS-II (Governance), and even essay paper themes related to development, reforms, and globalization.

One of the most significant interventions in this direction is the Production-Linked Incentive (PLI) Scheme, introduced to boost domestic manufacturing in key sectors like electronics, pharmaceuticals, textiles, automobiles, and renewable energy components. The PLI scheme not only incentivizes production but also aims to reduce import dependency, create employment, and enhance India’s export competitiveness. A careful study of the scheme gives insights into how strategic policymaking can influence industrial outcomes and align with larger national goals like Atmanirbhar Bharat.