This session will be based on a chapter of the last IMF World Economic Outlook which examines the global revival of industrial policy as countries seek to strengthen strategic sectors to boost future productivity, growth and reduce import dependence. Theoretical and empirical analysis shows industrial policies can help onshore production and close technology gaps—especially when firms learn by doing—but at the cost of higher consumer prices during catch-up and significant public spending, which is challenging amid high debt and tight budgets. Spillovers to other sectors are hard to measure. Success depends on careful targeting, strong governance, and supportive macroeconomic conditions. Industrial policy can boost growth and resilience—but only when designed and implemented with clear-eyed awareness of its trade-offs.