Q. How did changes in industrial policy post-liberalization affect India’s global competitiveness? What are the key opportunities for industrialization in Odisha, given its resource base? How can the State overcome challenges like environmental concerns and skill shortages?
Ans: The post-liberalization industrial policy of 1991 marked a watershed moment in India’s economic history. It dismantled the License Raj, reduced state control, and opened the economy to foreign direct investment (FDI) and global competition. These reforms significantly enhanced India’s global competitiveness by fostering innovation, efficiency, and private sector dynamism.
Impact on India’s Global Competitiveness
- De-licensing and deregulation encouraged entrepreneurship and reduced bureaucratic delays.
- FDI inflows brought advanced technologies, global best practices, and capital.
- Integration into global supply chains boosted exports, especially in IT, pharmaceuticals, and automotive sectors.
- Policies like Make in India and PLI schemes further positioned India as a manufacturing hub.
However, challenges like infrastructure bottlenecks, regulatory complexity, and regional disparities persist.
Opportunities for Industrialization in Odisha
Odisha’s rich resource base and strategic location offer immense potential:
- Mineral wealth: 28% of India’s iron ore, 24% coal, 59% bauxite, and 98% chromite.
- Metallurgical industries: Steel, aluminum, and ferroalloys sectors are thriving.
- Petrochemicals and chemicals: Paradip port enables downstream industrial growth.
- Textiles, food processing, and IT: Emerging sectors with employment potential.
Overcoming Challenges
Environmental Concerns:
- Promote green industrial zones and clean technologies.
- Enforce EIA norms and incentivize sustainable practices.
Skill Shortages:
- Strengthen vocational training and industry-academia linkages.
- Expand Skill Development Missions tailored to local industry needs.
In conclusion, Odisha can harness its resource advantage through sustainable industrialization, inclusive skilling, and policy innovation, aligning with India’s broader competitiveness goals.