Question

Assertion (A):The manufacturing sector achieved an average annual growth rate of 5.2% in the last decade and had a gross value added of 14.3% in FY 23.

Reason (R):According to the Economic survey, the manufacturing sector remained at the forefront of the Indian Industrial sector, Indicating significant backward and forward linkages.

• A. Both (A) and (R) are true and (R) is the correct explanation of (A)
• B. (A) യും (R) ഉം ശരിയാണ്, എന്നാൽ (R) എന്നത് (A) യുടെ ശരിയായ വിശദീകരണമല്ല.
• C. (A) ശരിയാണ്, എന്നാൽ (R) തെറ്റാണ്.
• D. (A) തെറ്റാണ്, എന്നാൽ (R) ശരിയാണ്.

Answer 1

Answer:

A. Both (A) and (R) are true and (R) is the correct explanation of (A)

• The manufacturing sector is a critical pillar of India's economic development, playing a crucial role in job creation, poverty alleviation, and driving overall economic growth.
• The Economic Survey is an annual document presented by the Government of India, prepared by the Chief Economic Adviser (CEA). It provides a detailed review of the economy's performance over the past year and an outlook for the future, often forming the factual basis for the Union Budget and policy decisions.
• The assertion that the manufacturing sector achieved an average annual growth rate of 5.2% in the last decade and contributed 14.3% to Gross Value Added (GVA) in FY23 reflects the specific statistical data and economic trends captured in official reports like the Economic Survey.
• The statement in the Economic Survey, indicating the manufacturing sector 'remained at the forefront of the Indian Industrial sector,' underscores its pivotal and leading role within the nation's industrial landscape.
• Backward linkages refer to the manufacturing sector's demand for inputs from other sectors, such as raw materials from agriculture and mining, or components and services from other industries. This demand stimulates growth in these supplying sectors.
• Forward linkages describe the supply of manufactured goods as inputs for other sectors. For instance, machinery for agriculture, tools for construction, or intermediate goods for other manufacturing processes originate from this sector, enabling downstream economic activities.
• The existence of strong backward and forward linkages creates a significant multiplier effect throughout the economy. This means that growth in the manufacturing sector leads to amplified growth across various interconnected sectors, directly impacting the overall GVA and national economic expansion.
• The Indian government has actively promoted the manufacturing sector through various initiatives, most notably the 'Make in India' campaign, launched in 2014, aimed at boosting domestic manufacturing and attracting foreign investment.
• Furthermore, the introduction of Production Linked Incentive (PLI) schemes across multiple sectors since 2020 has significantly incentivized domestic manufacturing, enhancing competitiveness and contributing to the sector's growth rate and GVA share.
• Therefore, the robust performance and significant contribution of the manufacturing sector, as stated in the assertion, are directly attributable to its strategic position and the strong economic interconnections (backward and forward linkages) highlighted by the Economic Survey.