Indian Economy
Industry and Infrastructure
GS Paper III
Industry and Infrastructure — Quick Revision
One-page UPSC revision of industrial policy (1948, 1956, 1991), PSU reform, MSMEs, IIP and core industries, PPP models, infrastructure finance and national plans.
SyllabusGS III · Infrastructure: energy, ports, roads, airports, railways; investment models
A last-week revision sheet for industry and infrastructure. Learn the industrial policy timeline and the PPP risk table — they cover most of the Prelims questions.
Industrial Policy Timeline
| Year | Milestone |
|---|---|
| 1948 | Industrial Policy Resolution — mixed economy |
| 1951 | Industries (Development and Regulation) Act — licensing |
| 1956 | IPR — Schedules A (17), B (12), C (rest) |
| 1969 | MRTP Act |
| 1973 | FERA |
| 1977–78 | Industrial Policy Statement; District Industries Centres |
| July 1991 | New Industrial Policy — delicensing, PSU reform, MRTP dilution, FDI |
| 1999 | FEMA replaces FERA |
| 2002 | Competition Act replaces MRTP Act |
| 2006 | MSMED Act |
| 2011 | National Manufacturing Policy (manufacturing at 25% of GDP) |
| 2014 | Make in India (September) |
| 2020 | PLI schemes; MSME reclassification on investment + turnover |
| 2021 | New Public Sector Enterprise Policy — four strategic sectors |
Indices
| Index | By | Note |
|---|---|---|
| IIP | NSO, MoSPI | Base 2011-12; mining, manufacturing, electricity |
| Eight core industries | Office of the Economic Adviser, DPIIT | Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity; about 40% of IIP; refinery products weigh most |
PPP Models by Risk
| Model | Finance | Traffic risk | Ownership at end |
|---|---|---|---|
| EPC | Government | Government | Government |
| BOT-Toll | Private | Private | Government |
| BOT-Annuity | Private (annuity repaid) | Government | Government |
| HAM | 40% government, 60% developer | Government | Government |
| TOT | Private upfront payment | Private | Government |
| BOO | Private | Private | Private |
Finance and Institutions
| Item | Fact |
|---|---|
| VGF | Grant; up to 20% Centre + 20% sponsoring authority (2006 scheme) |
| InvITs, REITs | SEBI regulations, 2014; at least 90% of net distributable cash flow to unitholders |
| NIIF | 2015 |
| NaBFID | Statutory DFI, 2021 |
| Kelkar Committee | 2015; revitalising PPPs |
| NIP | December 2019; FY 2019-20 to 2024-25 |
| NMP | August 2021; about ₹6 lakh crore; ownership retained |
| PM Gati Shakti | October 2021; seven engines |
| National Logistics Policy | September 2022 |
High-yield facts
- Only atomic energy and railway operations are now reserved for the public sector.
- HAM: government pays 40% during construction and bears traffic risk.
- TOT is monetisation of completed public assets; BOT is construction by the private partner.
- IIP is compiled by NSO; the core index by DPIIT’s Office of the Economic Adviser.
Traps
- Monetisation leases assets; privatisation sells them.
- VGF is a grant, not a loan.
- The Competition Act (2002), not the 1991 policy, replaced the MRTP Act.
Related Topics
- Industrial Policy and Liberalisation
- Infrastructure and PPP Models
- Industry and Infrastructure — practice questions
- All quick revision sheets
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