Topics
250 words
Topic

Industrial Policy

Industrial policy refers to the strategic efforts by a government to encourage the development and growth of all or part of the economy, often focusing on specific sectors to enhance productivity, technological advancement, and global competitiveness.

Why it matters

  • Facilitates structural transformation by shifting resources from low-productivity to high-productivity sectors.
  • Addresses market failures such as information asymmetries and coordination problems that hinder private investment.
  • Promotes self-reliance and supply chain resilience by reducing dependence on critical imports.
  • Supports the creation of high-quality employment opportunities through the expansion of manufacturing and industrial ecosystems.

How it is asked

Focus on the evolution of industrial strategies from protectionist regimes to current frameworks emphasizing ease of doing business, production-linked incentives, and integration into global value chains.

In the syllabus