This chapter covers two GS III syllabus lines that UPSC often joins in one question: changes in industrial policy and their effects on industrial growth, and infrastructure and investment models. The first is a story of the licence raj and its dismantling in 1991; the second is about how India pays for roads, ports, power and railways when the State cannot fund them alone.

What UPSC asks

Prelims: industrial policy resolutions and the 1991 policy, sectors reserved for the public sector, MSME classification, IIP and eight core industries, PPP models (BOT, HAM, TOT, EPC), InvITs and REITs, institutions such as NaBFID and NIIF, and flagship programmes.
Mains GS III: effects of liberalisation on industrial growth, manufacturing and jobs, the PPP experience, infrastructure financing and asset monetisation.

Key sub-topics

Sub-topic	Core idea
Industrial policy	IPR 1948 and 1956 → licence raj → New Industrial Policy, 1991
Public sector	Reservation cut to two sectors; strategic-sector policy (2021)
MSMEs	MSMED Act, 2006; composite investment-turnover criteria since 2020
Measuring industry	IIP (base 2011-12) and the Index of Eight Core Industries
PPP models	EPC, BOT-Toll, BOT-Annuity, HAM, TOT, Swiss challenge
Financing	VGF, InvITs, NIIF, NaBFID, National Infrastructure Pipeline, monetisation

Read Industrial Policy and Liberalisation first, then Infrastructure and PPP Models.