Chapter 10: Indian Economy (Set-3)

Industrial growth in India is important mainly because it

A Reduces population growth
B Generates employment and income
C Eliminates agriculture
D Reduces exports

The industrial sector includes

A Only manufacturing
B Mining, manufacturing, and construction
C Agriculture and mining
D Trade and transport

Which phase marked planned industrial development in India?

A Pre-independence period
B Post-1991 reforms
C Post-independence Five-Year Plans
D Colonial trade period

Heavy industries mainly produce

A Consumer goods
B Capital goods
C Agricultural goods
D Services

Cottage and small-scale industries are important because they

A Use capital-intensive techniques
B Generate employment with low capital
C Reduce exports
D Increase imports

Which industry forms the backbone of industrial development?

A Textile industry
B Iron and steel industry
C Food processing industry
D Cement industry

The public sector in India was expanded mainly to

A Maximize profits
B Promote balanced regional development
C Eliminate private sector
D Increase imports

Public sector enterprises are owned and managed by

A Private individuals
B Foreign companies
C Government
D Cooperative societies

Which sector focuses more on profit motive?

A Public sector
B Private sector
C Cooperative sector
D Joint sector

The private sector contributes to the economy by

A Reducing efficiency
B Promoting innovation and competition
C Ignoring consumer needs
D Eliminating public welfare

Disinvestment policy refers to

A Nationalization of industries
B Transfer of ownership to government
C Sale of government stake in PSUs
D Closure of industries

The objective of disinvestment is to

A Increase fiscal burden
B Improve efficiency of PSUs
C Reduce private participation
D Increase subsidies

Industrial policy of 1956 emphasized

A Laissez-faire system
B Dominance of private sector
C Expansion of public sector
D Complete privatization

Which industry was reserved exclusively for public sector under 1956 policy?

A Textiles
B Iron and steel
C Consumer goods
D IT services

Industrial policy of 1991 aimed at

A Increasing controls
B Liberalization and deregulation
C Expanding licensing
D Nationalization

A key feature of 1991 industrial policy was

A Industrial licensing expansion
B Delicensing of industries
C Price controls
D Import substitution

Liberalization helped Indian industry by

A Increasing inefficiency
B Reducing competition
C Improving productivity
D Increasing state control

Privatization implies

A Government control
B Expansion of public sector
C Transfer of ownership to private sector
D Trade liberalization

Globalization connects Indian industry with

A Domestic markets only
B Local markets
C World markets
D Regional markets only

MSMEs are important because they

A Are capital-intensive
B Generate employment and exports
C Eliminate large industries
D Reduce innovation

MSME stands for

A Medium Scale Manufacturing Enterprises
B Micro, Small and Medium Enterprises
C Multi-State Manufacturing Enterprises
D Market-Supported Manufacturing Enterprises

Which sector faces major credit constraints?

A Large industries
B Public sector enterprises
C MSMEs
D Multinational companies

Make in India initiative aims to

A Promote imports
B Reduce manufacturing
C Encourage domestic manufacturing
D Eliminate foreign investment

Make in India was launched in

A 2008
B 2010
C 2014
D 2016

Which sector is targeted under Make in India?

A Only agriculture
B Only services
C Manufacturing sector
D Mining only

MSMEs help in balanced regional development because they

A Concentrate in metros
B Can be set up in rural and semi-urban areas
C Require huge capital
D Use advanced technology only

A major problem faced by MSMEs is

A Excess capital
B Technological obsolescence
C Surplus skilled labour
D Easy credit

Industrial growth contributes to economic development by

A Increasing disguised unemployment
B Reducing productivity
C Raising income and employment
D Increasing dependency ratio

Which policy reduced industrial licensing in India?

A Industrial Policy 1956
B New Economic Policy 1991
C Trade Policy 2004
D Export-Import Policy 1985

The role of public sector declined after 1991 mainly due to

A Nationalization
B Fiscal constraints and inefficiency
C Population pressure
D Lack of labour

Which industry is labour-intensive in nature?

A Steel
B Textiles
C Petrochemicals
D Power

Industrial corridors aim at

A Reducing trade
B Promoting regional industrial development
C Limiting private sector
D Increasing subsidies

Public sector is preferred in infrastructure because

A Profit motive is high
B Long gestation period discourages private sector
C Technology is simple
D Labour is surplus

Which institution supports MSMEs financially?

A RBI only
B SIDBI
C SEBI
D IRDA

The objective of industrial diversification is to

A Depend on one industry
B Reduce risk and increase stability
C Reduce employment
D Increase imports

Industrial sickness refers to

A Growth of industries
B Decline in industrial profits
C Financial weakness of firms
D Expansion of MSMEs

Which factor improved ease of doing business in India?

A More licensing
B Digital governance
C Higher taxes
D Trade barriers

Which reform encouraged foreign firms to invest in Indian industry?

A Import substitution
B FDI liberalization
C Price controls
D Licensing

Which industry has shown rapid growth after reforms?

A Handloom
B Heavy engineering
C Automobile
D Mining

MSMEs contribute to exports by

A Producing luxury goods
B Supplying intermediate goods
C Increasing imports
D Reducing foreign exchange

Industrial policy after 1991 emphasizes

A Control and regulation
B Competition and efficiency
C Nationalization
D Import substitution

Which challenge limits industrial growth in India?

A Capital surplus
B Infrastructure bottlenecks
C Excess savings
D Low labour supply

Public-private partnership (PPP) aims to

A Reduce private role
B Combine strengths of both sectors
C Increase government monopoly
D Eliminate risk

Which policy encourages domestic value addition?

A Import substitution
B Make in India
C Demonetization
D Fiscal deficit

MSMEs face marketing problems mainly due to

A High demand
B Lack of brand recognition
C Excess capital
D Strong competition only

Which sector dominates employment within industry?

A Large-scale industries
B MSMEs
C PSUs
D Multinationals

Industrial growth helps agriculture by

A Increasing monsoon dependence
B Supplying fertilizers and machinery
C Reducing credit
D Reducing irrigation

Which reform reduced entry barriers for industries?

A Industrial licensing
B Delicensing
C Nationalization
D Price control

Which factor attracts FDI into manufacturing?

A Trade barriers
B Large domestic market
C Political instability
D High tariffs

The long-term goal of industrial development in India is

A Import dependence
B Inclusive and sustainable growth
C Elimination of services
D Capital concentration