Industrial Policy MCQ — 94 Practice Questions with Answers

Q1. Consider the following statements about the Industries (Development and Regulation) Act: 1. The Industries (Development and Regulation) Act is a 1951 Act. 2. Its long title describes it as an Act to provide for the development and regulation of certain industries. 3. It was enacted on 31 October 1952. Which of the statements given above are correct?

Q2. Consider the following statements: 1. The Statement on Industrial Policy was issued on July 24, 1991. 2. The 1991 policy package listed foreign investment as one of its policy areas. 3. The 1991 policy package kept MRTP Act reform outside its stated areas. Which of the statements given above are correct?

Q3. Consider the following statements: 1. Import substitution aimed at replacing imports with domestic production. 2. Tariffs and quotas were two forms of protection from imports. 3. A quota is a tax on imported goods. Which of the statements given above are correct?

Q4. 1. For semiconductor chip manufacturing facilities, the location decision lies with the companies proposing to set up such facilities. 2. The Centre’s 2022 reply said the Union Government alone selects the location, regardless of power, water or State incentives. 3. Semiconductor manufacturing was described as complex and technology-intensive, with high capital investments, high risk, long gestation and payback periods. 4. The 2022 reply said stable power and clean water are irrelevant to semiconductor-unit setup. Which of the statements given above are correct?

Q5. Consider the following statements about the 2020 Cabinet approval of PLI schemes: 1. The Union Cabinet approved introduction of the PLI Scheme in 10 key sectors. 2. Advanced Chemistry Cell Battery was among the sectors listed in that approval. 3. Textile products were not included among the 10 sectors approved in November 2020. Which of the statements given above are correct?