Creative Destruction – A 360° Perspective for UPSC Aspirants - By Krishna Pradeep’s 21st Century IAS Academy, Rajahmundry
Introduction The concept of “Creative Destruction” , introduced by economist Joseph Schumpeter , describes how new innovations replace outdated systems, bringing both disruption and progress. It is the engine of economic evolution , where every innovation destroys the old to create something better. In an age defined by AI, automation, digital transformation, and renewable energy , understanding this process is vital for the Indian economy and especially for UPSC aspirants , who must analyze its economic, social, and governance implications. Understanding Creative Destruction Creative Destruction refers to the simultaneous process of innovation and replacement — where outdated industries give way to new ones. Though it may cause temporary instability, it drives long-term growth, efficiency, and productivity . 🔹 Examples in India: UPI & Digital Banking have redefined the financial landscape. Electric Vehicles (EVs) are transforming the automobile industry. ...