1.Balanced Industrial Distribution Action Plan (Industrial Policy)
What & Where
Industrial imbalance: concentration in Maharashtra, Gujarat, Tamil Nadu; lag in Bihar, Jharkhand, NE states
Industry: Constitutionally State subject; Centre shapes national policy, incentives, disinvestment roadmap
SCoF 2025 call: national action plan for evenly spread manufacturing, fast-track CPSE privatisation
Quick Facts for MCQs
Policy Recommendations
- Disinvestment: privatise/close non-strategic loss-making CPSEs; energise State-level PSU reform incentives
- Investment push: mobilise public–private funds, lift rate to 35 % GDP, maintain social-sector spends
- Balanced growth: draft location policy, central packages for backward regions, cluster-based incentives
Drivers of Imbalance
- Colonial legacy: jute in Bengal, cotton in Bombay Presidency, patterns persisted post-1947
- Infrastructure differential: ports, corridors aid coastal plains; Himalayan & NE states face power, logistics gaps
- Agglomeration pull: existing clusters attract suppliers, talent, finance, reinforcing regional concentration
Economic & Social Impact
- Fiscal skew: UP, Bihar, MP contribute only 5 % of direct taxes, depend heavily on central transfers
- Migration surge: Mumbai, Bengaluru, Delhi absorb bulk labour, causing housing, congestion, pollution stress
- Federal friction: advanced states seek autonomy; lagging states demand special packages, straining cooperation
Key Data Points
| Feature | Data-Point |
|---|---|
| Current investment rate | ~31 % of GDP |
| Target rate for 8 % growth | 35 % of GDP |
| CPSE disinvestment policy launch | Dec 2021 |
| Loss-making CPSE proposals approved | Zero (till Aug 2025) |
| Domestic migrants (EAC-PM 2023) | 40.2 crore |
| Top-5 industrial states direct-tax share FY24 | 72 % |
| Bihar 2023-24 GSDP | ₹8.5 lakh cr |
| Maharashtra 2024-25 GSDP | ₹45.3 lakh cr |
Related UPSC Prelims PYQs
Which one of the following is NOT a factor for large scale diversification into unrelated areas by some of the industry Conglomerate in India?
The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is true in this regard?







