Industry: growth, challenges, policy

Indian industry spans mining, manufacturing, electricity and construction, with micro, small and medium enterprises (MSMEs) providing most industrial jobs. Industrial policy moved from state-led heavy industry and licensing to delicensing, competition and openness, and now to competitiveness missions (Make in India, production-linked incentives). Worked example: a small firm with fixed costs of 50,000 and variable cost 100 per unit must price above 100 plus 50,000 divided by output to break even — at 1000 units, break-even price is 100 + 50 = 150, showing why scale matters for small firms.