MCQ
Industrial Policy MCQ - Practice Questions with Answers
Solve 96 Industrial Policy questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about industrial licensing under the 1991 policy: 1. Industrial licensing was to be abolished for all projects except a short list of industries. 2. Industries reserved for the small-scale sector were to continue to be reserved. 3. The exemption from licensing was described as harmful to small and medium entrepreneurs. Which of the statements given above are correct?
Statements 1 and 2 are correct. The 1991 policy abolished licensing except for specified industries and kept small-scale reservations. Statement 3 is incorrect because the exemption was described as helpful to small and medium entrepreneurs, not harmful.
Q21. The National Manufacturing Policy sought to raise manufacturing’s share in GDP to 25%. 2. The same policy set a target of creating 10 million jobs over a decade or so. 3. The policy was based on industrial growth in partnership with the States. 4. Under the policy, State Governments alone were to finance infrastructure development; the Central Government had no enabling role. Which of the statements given above are correct?
Statements 1 and 3 are correct. Statement 2 is false: the cited target is 100 million jobs, not 10 million. Statement 4 is false because the Centre was to create an enabling framework and provide PPP-based infrastructure incentives while States adopted policy instruments.
Q31. The 1991 policy gave approval for direct foreign investment up to 51 percent foreign equity in high-priority industries. 2. Automatic permission for foreign technology agreements in high-priority industries covered a lump-sum payment of up to Rs 1 crore, along with royalty limits. 3. The 1991 policy removed the asset threshold limits for MRTP companies and dominant undertakings. 4. The 1991 policy prohibited foreign technicians from being hired for indigenously developed technologies. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct: the policy liberalised high-priority foreign equity, foreign technology agreements and MRTP asset thresholds. Statement 4 is false because no permission was necessary for hiring foreign technicians for indigenously developed technologies, not because such hiring was prohibited.
Q4Consider the following statements about foreign investment measures in the 1991 industrial policy: 1. Direct foreign investment up to 51 percent foreign equity was to be approved in high-priority industries. 2. Dividend payments were to be monitored through the Reserve Bank of India to balance outflows with export earnings over time. 3. Foreign equity proposals necessarily had to be accompanied by foreign technology agreements. 4. A Special Empowered Board was to be constituted to negotiate with large international firms and approve direct foreign investment in select areas. Which of the statements given above are correct?
Statements 1, 2 and 4 are correct. The 1991 policy allowed approval up to 51 percent foreign equity in high-priority industries, monitored dividends through RBI, and proposed a Special Empowered Board. Statement 3 is incorrect because foreign equity proposals did not necessarily need to be accompanied by technology agreements.
Q51. The Industrial Policy Statement of 1991 abolished industrial licensing for all projects except a short list of industries linked to security, strategic, social, hazardous-chemical, environmental and elitist-consumption reasons. 2. Under the 1991 policy, industries reserved for the small-scale sector were immediately opened to all large private companies. 3. The 1991 policy required entrepreneurs to file only an information memorandum for new projects and substantial expansions after abolishing existing registration schemes. 4. The 1991 policy retained phased manufacturing programmes for all new projects as a compulsory import-substitution tool. Which of the statements given above are correct?
Statement 1 is correct: the 1991 policy ended licensing except for a short specified list. Statement 2 is false because the same decision explicitly said small-scale reservations would continue. Statement 3 is correct because the procedural consequence was replacement of registration schemes by an information memorandum. Statement 4 is false because phased manufacturing programmes were not to apply to new projects.
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6Consider 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?
7Consider the following statements: 1. The PLI scheme for large-scale electronics manufacturing was notified on 1 April 2020. 2. The scheme extends an incentive of 4 percent to 6 percent on incremental sales for five years subsequent to the base year. 3. The scheme commenced on 31 July 2020. Which of the statements given above are correct?
8Consider the following statements about core objectives of the National Manufacturing Policy, 2011: 1. The policy sought to enhance global competitiveness. 2. The policy sought to enhance domestic value addition. 3. The policy sought to promote technological depth and environmental sustainability of growth. 4. The policy sought to reduce the manufacturing share in GDP to below 15 percent by 2022. Which of the statements given above are correct?
9Consider the following statements: 1. The Karve Committee was also called the Village and Small-Scale Industries Committee. 2. The Karve Committee noted the possibility of using small-scale industries for promoting rural development. 3. The Karve Committee concluded that small-scale industries had no role in rural development. Which of the statements given above are correct?
101. The revised MSME classification applicable from 1 April 2025 uses composite criteria of investment in plant and machinery/equipment and annual turnover. 2. Under that classification, a micro enterprise has investment not more than Rs 2.5 crore and annual turnover not more than Rs 10 crore. 3. Under that classification, a small enterprise has investment not more than Rs 125 crore and annual turnover not more than Rs 500 crore. 4. The revised MSME classification applies separately to manufacturing enterprises and enterprises rendering services. Which of the statements given above are correct?
11Consider the following statements about India's Production Linked Incentive scheme: 1. The scheme was launched in 2020 and is aligned with Atmanirbhar Bharat and Make in India. 2. PLI schemes have been implemented across 14 key sectors. 3. The 2021-22 Union Budget announced an outlay of INR 1.97 lakh crore for PLI schemes for 13 key sectors for five years starting FY 2021-22. 4. The scheme gives incentives on total sales of all products manufactured anywhere in the world, without reference to incremental sales in India. Which of the statements given above are correct?
12Consider the following statements: 1. In Union Budget 2021-22, an outlay of INR 1.97 lakh crore was announced for PLI schemes for 13 key sectors. 2. PLI schemes aim to make domestic manufacturing globally competitive and create global champions in manufacturing. 3. The strategy of PLI is to offer incentives on total sales of imported goods over the base year. Which of the statements given above are correct?
13Consider the following statements about India's first notified semiconductor fabrication plant cited in the corpus fact bank: 1. It is being set up by Tata Semiconductor Manufacturing Pvt Ltd. 2. It is located at Dholera SEZ, Gujarat. 3. Its projected outlay is Rs 9,100 crore. Which of the statements given above are correct?
14Consider the following statements about the National Industrial Corridor Programme: 1. The Government approved development of 11 industrial corridors with 32 projects in four phases. 2. The objective includes expanding industrial output and increasing employment opportunities. 3. Delhi-Mumbai Industrial Corridor was listed with 10 projects, including Dholera Special Investment Region and Jodhpur Pali Marwar Industrial Area. 4. Chennai-Kanyakumari Industrial Corridor had already been included under the Industrial Corridor framework with allocated central funding in the cited 2021 PIB release. Which of the statements given above are correct?
151. The National Design Policy action-plan committee had the Director of IIT Delhi as Member Secretary on 6 March 2007. 2. The National Design Policy action-plan committee included representatives of various Ministries and Departments. 3. The committee’s final recommendations included constitution of the Design Council of India and a Chartered Society of Designers. 4. The committee recommended abolishing design-awareness programmes. Which of the statements given above are correct?