Government should support both job-creating and frontier industries: EAC-PM chairman Dev
S Mahendra Dev highlighted the importance of supporting job-creating and frontier industries for future economic growth. He mentioned that sectors like textiles and technology can significantly enhance India's industrial landscape. The need for improved competitiveness and product quality in various firms was also emphasised. Furthermore, land availability and global supply chain shifts present unique opportunities for India. Overall, addressing these challenges is crucial for the country's indu
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Context
The Chairman of the , S Mahendra Dev, has emphasized the need for a dual industrial strategy supporting both labor-intensive job-creating sectors and high-tech frontier industries. He highlighted the importance of strengthening firm competitiveness, addressing land constraints, and capitalizing on the redrawing of global supply chains to achieve broad-based industrial transformation.
UPSC Perspectives
Economic
The dual strategy proposed by the chairman addresses a critical challenge in India's growth narrative: jobless growth. India needs to support labor-intensive sectors like textiles, footwear, and food processing to absorb the vast unskilled and semi-skilled workforce entering the labor market, thereby capitalizing on its demographic dividend. Simultaneously, promoting 'frontier industries' such as semiconductors and clean technologies is essential for moving up the global value chain and building technological sovereignty, aligning with the goals of . The observation regarding the lack of mid-sized firms (the 'missing middle') points to structural issues where struggle to scale up due to regulatory compliance burdens, lack of credit access, and skill deficits. Addressing this is crucial for creating a robust manufacturing ecosystem.
Governance
Effective governance is central to realizing this industrial transformation. The Chairman's call for well-designed support linked to clear goals and regular reviews highlights the necessity of outcome-based policymaking. Industrial policies, such as the scheme, must be rigorously monitored to ensure public resources lead to tangible improvements in competitiveness and employment generation, rather than merely subsidizing inefficiencies. Furthermore, the constraints identified—specifically land availability—require concerted action at the state level. Land is a State subject, and cumbersome land acquisition processes often deter investment. Governance reforms focused on digitizing land records, creating industrial land banks, and streamlining approvals are essential to create a conducive business environment.
International Relations
The shifting global geopolitical landscape presents a unique window of opportunity for India. The redrawing of global supply chains, driven by tariff wars, geopolitical tensions (like the US-China rivalry), and the pursuit of supply chain resilience (the 'China Plus One' strategy), means global corporations are seeking stable and trusted manufacturing hubs. India's recent success in electronics manufacturing, particularly smartphone exports to the US, demonstrates its potential to integrate into these reshaped networks. However, to fully leverage this, India must enhance its attractiveness by offering scale, competitive costs, and consistent quality, thereby positioning itself as a reliable partner in the emerging geo-economic order.