Economy · X-Factor Notes
Industrial Sector revision notes for UPPCS Prelims.
67 revision facts
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Indian Economy Type | India has a Mixed economy. This means the existence of both private and public sectors. | UPPCS (Pre) 1990, 2007, (Re-Exam) 2015; UPPCS (Mains) 2013; U.P.U.D.A./L.D.A. (Pre) 2006; |
| Industrial Policy Resolution (1956) | Envisaged the concept of 'Joint Sector' for harmonious industrial development. The main objective was to step up industrial growth, expand public and co-operative sectors, and bring equality in distribution of wealth. | UPPCS (Spl.) (Mains) 2004 |
| Disinvestment Process | Disinvestment in Public Enterprises started in the financial year 1991-92. It is an integral part of economic liberalization. The purpose is largely to curtail the fiscal burden of the State. | UPPCS (Spl.) (Pre) 2008; UPPCS (Pre) 2000; UPPCS (Mains) 2002, 2004 |
| Index of Industrial Production (IIP) | It is computed and published by the National Statistical Office (NSO) on a monthly basis. | UPPCS (Mains) 2008 |
| Industrial Growth Rate | 3.5% year-on-year growth in IIP, in July 2025 5.4% YoY manufacturing growth. Flagship schemes : PLI, PM MITRA, National Manufacturing Mission, and Skill India | |
| IIP Coverage | IIP measures growth rate of industrial groups classified under Mining, Manufacturing, and Electricity. Construction is NOT included in the index. Gas and water supply are NOT included in the IIP. | |
| IIP Base Year | The current base year for the Index of Industrial Production (IIP) is 2011-12 (since May 12, 2017). | UPPCS (Mains) 2008 |
| Eight Core Industries (ICI) | These include: Coal, Crude Oil, Natural Gas, Petroleum refinery products, Fertilizers, Steel, Cement, and Electricity. They comprise 40.27 percent of the total weight in the IIP. Chemical is NOT included. | I.A.S. (Pre) 2012; |
| Highest Weight in ICI | The highest weight in the Index of Eight Core Industries is given to Refinery Products (28.0376%). Among the options commonly listed, Electricity generation often holds the highest weight. | I.A.S. (Pre) 2015 |
| Determinants of Industry Size | Capital investments, labour force, and power consumption are main determinants of the nature and size of the industry. | I.A.S. (Pre) 2001 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| National Manufacturing Policy (NMP) | Introduced by the Government of India in 2011. Aims to increase manufacturing sector growth to 12-14 percent and create 100 million additional jobs by 2025. | |
| NMP Initiatives | Include establishing National Investment and Manufacturing Zones (NIMZs), providing 'single window clearance', and establishing the Technology Acquisition and Development Fund. | I.A.S. (Pre) 2012 |
| Make in India | Programme started in September, 2014. The logo is the Lion. Aims to reduce manufacturing cost and enhance global competitiveness. | |
| National Manufacturing Mission (NMM) | The National Manufacturing Mission (NMM), announced in the Union Budget 2025–26 | |
| MSMED Act | Micro, Small and Medium Enterprises Development (MSMED) Act was passed in 2006. | U.P. R.O./A.R.O. (Pre) 2016 |
| New MSME Definition (2020) | The new MSME classification, effective from April 1, 2025 Micro Enterprises: Investment up to ₹2.5 crore and turnover up to ₹10 crore. Small Enterprises: Investment up to ₹25 crore and turnover up to ₹100 crore. Medium Enterprises: Investment up to ₹125 crore and turnover up to ₹500 crore | U.P. R.O. / A.R.O. (Mains) 2016 |
| Small Scale Industries (SSI) Importance | Important because they provide more employment on a per unit capital deployment basis. They also promote a regional dispersion of industries. | I.A.S. (Pre) 1999; |
| Abid Hussain Committee (1995) | Recommended the total abolition of reservation of items for the small scale industry sector. | I.A.S. (Pre) 2002; UPPCS (Pre) 2006; UPPCS (Mains) 2006 |
| MUDRA Yojana (PMMY) | Launched on April 8, 2015. Aimed at bringing small entrepreneurs into the formal financial system. Collateral free loans provided up to ₹20 lakh. | I.A.S. (Pre) 2016; |
| MUDRA Yojana Category | Shishu: Loans up to ₹50,000 for startups and new micro enterprises. Kishore: Loans from ₹50,001 to ₹5 lakh for small growing enterprises. Tarun: Loans from ₹5 lakh to ₹20 lakh for well-established enterprises. | I.A.S. (Pre) 2016 |
| QCI (Quality Council of India) | Set up in 1997 jointly by the Government of India and the Indian Industry. Chairman is appointed by the Prime Minister. | I.A.S. (Pre) 2017 |
| Chronology of Labour Acts | Minimum Wages Act, Payment of Bonus Act, and Equal Remuneration Act have been amalgamated into the 'Code on Wages, 2019'. | U.P. R.O./A.R.O. (Re-Exam) (Pre) 2023 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| SIDBI (Small Industries Development Bank of India) | Principal financial institution for promotion, financing, and development of the MSME sector. Established on April 2, 1990. Headquartered at Lucknow. | U.P. R.O. / A.R.O. (Mains) 2016; UPPCS (Mains) 2004, 2012 |
| Long-Term Industrial Financing | Institutions involved include IFCI (1948), ICICI (1955), and IDBI (1964). | U.P. Lower Sub. (Pre) 1998; U.P. U.D.A./L.D.A. (Spl.) (Mains) 2010 |
| BIFR (Board for Industrial and Financial Reconstruction) | Related to Reconstruction and financing of sick units. | UPPCS (Pre) 2002 |
| National Renewal Fund (NRF) | Objective was to safeguard the interests of workers affected by technological upgradation or closure of sick units. Provided Voluntary Retirement Scheme (VRS) assistance. | I.A.S. (Pre) 1994; UPPCS (Pre) 1990 |
| Financial Assistance in UP | Long term credit to small and medium enterprises in Uttar Pradesh is provided through the UP Finance Corporation. | UPPCS (Mains) 2004 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Largest Employment Sector (Industry) | The Textile Industry employs the maximum number of workers in India. | UPPCS (Mains) 2007 |
| Largest Small Scale Industry (India) | The Handloom industry is the most important small scale industry in India. | |
| Largest Industry in UP (Employment) | Handloom is the biggest job-oriented industry in Uttar Pradesh. | UPPCS (Spl.) (Pre) 2008 |
| Maximum Registered Factories (Top 5 States) | TN > Guj > MH > UP > Andhra | UPPCS (Mains) 2011 |
| Gross Value Added (GVA) (Top 5 States) | MH> Guj > TN > KAR > UP | |
| Employment (Top 5 States) | TN > Guj > MH > MH > UP > KAR | |
| Steel Production (World) | China > India > Japan > US > Russia | UPPSC Pre-2022 |
| Iron and Steel Industry Importance | Constitutes the backbone of modern industrial economy. | M.P.P.C.S. (Pre) 1997 |
| Bhilai Steel Plant (Chattisgarh) | A Public Sector enterprise, established with the assistance of the USSR (Russia) in 1959. It is not located on a riverside. | U.P. R.O./A.R.O. (Pre) 2021; |
| Rourkela Steel Plant (Odisha) | Established in 1959, in collaboration with Germany (West Germany). | UPPCS (Mains) 2012 |
| Fertilizer Industry Ranking | India ranks second in the production of nitrogenous fertilizers and third in phosphatic fertilizers. Entire potash requirement (Muriate of Potash, MOP) is met through imports. | U.P.U.D.A./L.D.A. (Pre) 2001 |
| Paper/Newsprint Industry | Nepanagar (MP) is known for Newsprint paper. Yamunanagar, Guwahati, and Ballarpur are known for paper manufacturing. | UPPCS(Pre) 2001; I.A.S. (Pre) 1997 |
| HINDALCO (Renukoot) | Commissioned in 1962. The site selection was primarily due to abundant supply of electricity | I.A.S. (Pre) 2002 |
| Uttar Pradesh Industrial Centres | Panki is known for Fertilizers; Aonla(Bareily) for Fertilizers; Modinagar for Rubber; Barabanki for Polyfibre; Kanpur for Explosives. Churk (UP) is a cement center. | UPPCS (Pre) 2002, 2003; I.A.S. (Pre) 1998 |
| Oil Refineries (Public/Private) | Digboi, Barauni, Nunmati, and Mathura are all Public Sector refineries. ESSAR Oil Ltd. (now Nayara Energy) was a private sector enterprise. | UPPCS (Pre) 1998; UPPCS (Mains) 2004 |
| HAL (Hindustan Aeronautics Ltd.) | Related to manufacturing of Aircrafts. | UPPCS (Mains) 2009 |
| Black Pottery GI Tag (UP) | Associated with Nizamabad in Azamgarh district. | U.P. R.O./A.R.O. (Pre) 2021 |
| Industrial Development (UP Region) | The Western region of Uttar Pradesh has developed most from the industrial point of view. This region also experienced the Green Revolution. | UPPCS (Spl.) (Pre) 2008; UPPSC Pre-2022 |
| Jute Industry | India is the largest producer of Jute in the world. The first jute mill was established in Rishra (near Serampore, Bengal) in 1855. | U.P. R.O./A.R.O. (Pre) 2021; UPPCS (Pre) 2001; UPPSC R.O./A.R.O. 2023 |
| Sugar Industry (Initial Location) | The sugar industry was initially located in Uttar Pradesh. The low yield of sugarcane, short crushing seasons, and unsatisfactory location of industries created problems in producing sugar. | U.P. R.O./A.R.O. (Pre) 2023 |
| Sugar Production (Top States) | MH > UP | |
| Sugarcane Production (Top States) | UP > MH > KAR | |
| Largest Economy in India | Maharashtra is the largest economy (largest Gross State Domestic Product) in India. MH (24.11%) > TN > UP (14.23%) > KAR > WB | U.P. R.O./A.R.O. (Re-Exam) (Pre) 2023 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Bharatmala Project | A centrally-sponsored project related to Road infrastructure, launched in 2017 | |
| Industrial Corridor (Japan Collaboration) | The Delhi-Mumbai Industrial Corridor is being developed in collaboration with Japan. | |
| Industrial Exports (Highest Share) | Engineering Goods have the greatest share of Indian exports (in recent data). Gems and jewellery held the largest share in total exports in early 2000s. Engg Goods > Petroleum Products > Electronic Goods > Drugs > gems and Jewellery | U.P. R.O./A.R.O. (Re-Exam) (Pre) 2023; UPPCS (Mains) 2003, 2012; UPPCS (Spl.) (Mains) 2004 |
| World Textile Exports Rank | India's rank in World Textile Exports is Fifth. China > Bangladesh > Vietnam > Turkey > India | UPPCS (Pre) 2007 |
| FDI Inflow (Highest Share) | Historically, the Services sector has attracted the highest Foreign Direct Investment (FDI) inflows into India in the last decade. In recent years (2018-2021), Computer Software and Hardware sector also held the largest share, followed by Services. | U.P. P.C.S. (Mains) 2006; Uttarakhand P.C.S (Pre) 2016; Chhattisgarh P.C.S. (Pre) 2016 |
| SEZ Act | Passed by Parliament in the year 2005. | I.A.S. (Pre) 2010; UPPCS (Pre) 2006; UPPCS (Mains) 2009 |
| First EPZ (Asia/India) | The first Export Processing Zone (EPZ) of Asia was set up in Kandla in 1965. | UPPCS (Mains) 2011; UPPCS (Spl.) (Mains) 2008 |
| First Private Sector EPZ | Established at Surat (1997). | UPPCS (Mains) 2005 |
| Falta SEZ | Falta SEZ is listed as an example of an Export Processing Zone. Kolkata, WB. | U.P. R.O./A.R.O. (Re-Exam) (Pre) 2023 |
| SEZ Objective | Discouraging foreign investment is NOT an objective of SEZs. | U.P. Lower Sub. (Pre) 2009 |
| Largest Trading Government Company | Mineral and Metal Trading Corporation (MMTC). | UPPCS (Mains) 2008 |
| Bharatmala Project | A centrally-sponsored project related to Road infrastructure. | |
| Industrial Corridor (Japan Collaboration) | The Delhi-Mumbai Industrial Corridor is being developed in collaboration with Japan. |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Coal Industries (Chronological Order) | First production of coal in Raniganj: 1774 Establishment of National Coal Development Corporation (NCDC): 1956 Nationalisation of coal mines: 1973-1974 Establishment of Coal India Ltd. (CIL): 1975 | U.P. R.O./A.R.O. (Pre) 2023 |
| Modern Industrial Chronology | Steel Production in India for the first time (1830) - (Porto Novo, TN) First textile mill in Bombay (1854) Jute Mill at Rishra (1855) Development of the sugar industry by Indians (1903). | U.P. R.O./A.R.O. (Pre) 2021 |
| Financial/Banking Chronology | First phase of Bank Nationalisation (1969) Establishment of Regional Rural Banks (1975) Second phase of Bank Nationalisation (1980) Establishment of NABARD (1982). | U.P. R.O./A.R.O. (Pre) 2023; UPPCS (Pre) 2020 |
| Committee Chronology (Small Scale Sector) | Karve Committee (1955) Nayak Committee (1991) Abid Hussain Committee (1995) S.S. Kohli Committee (2000). | UPPCS (Pre) 2019 |
