Indian Industries and Industrial Policy MCQ Questions with Answers

Question 1 : The first modern industry to develop in India was

a) Iron and Steel Industry
b) Cement Industry
c) Computer Industry
d) Food Processing Industry

Answer : a

Question 2 : Which one of the following states is industrially the most advanced state in India?

a) Punjab
b) Tamil Nadu
c) Gujarat
d) Maharashtra

Answer : d

Question 3 : A labour intensive industry is one that

a) require hard manual labour
b) pay adequate wages to the labour
c) employs more hands
d) provide facilities to labour

Answer : c

Question 4 : By the late 19th century, India was one of the largest producers and exporters of

a) cotton yarn and wheat
b) sugar and rice
c) sugar and alcohol
d) iron and steel

Answer : a

Question 5 : When was the Maharatna Scheme introduced?

a) 15th May, 2009
b) 19th May, 2009
c) 19th May, 2010
d) 15th May, 2010

Answer : c

Question 6 : Which one of the following Public Sector Enterprises (PSEs) is not of Navratna Status PSEs?

a) Rural Electrification Corporation Limited
b) Neyveli Lignite Corporation Limited
c) Shipping Corporation of India Limited
d) Bharat Dynamics Limited

Answer : d

Question 7 : Which one of the following is not a feature of Limited Liability Partnership Firm?

a) Partners should be less than 20
b) Partners and management need not be separate
c) Internal governance should be decided by mutual agreement among partners
d) It is a corporate body with perpetual succession

Answer : a

Question 8 : Classification of an enterprise into public or private sector is based on

a) number of employees in the enterprise
b) ownership of assets of the enterprise
c) employment conditions for workers in the enterprise
d) nature of products manufactured by the enterprise

Answer : b

Question 9 : Container Corporation of India Limited (CONCOR), a public sector undertaking is under the administrative control of which of the following ministries?

a) Heavy industry
b) Small scale
c) Ministry of Railways
d) Shipping, Road Transport and Highways

Answer : c

Question 10 : Which of the following industries were established by the Walehand Group of companies prior to independence?

I. Hindustan Aircraft
II. Scindia Steam Navigation
III. Premier Automobiles
IV. Hindustan Motors

a) II, III and IV
b) I, II and III
c) I, II and IV
d) I, III and IV

Answer : b

Question 11 : Consider the following Industrial sub-sectors

I. Atomic Energy
II. Railway Transport
III. National Highways

Which of the Industrial sub-sectors given above is/are not privatised/liberalised?

a) I, II and III
b) I and II
c) I and III
d) Only II

Answer : b

Question 12 : Consider the following Public Sector Enterprises (PSEs)

I. Steel Authority of India Limited
II. Indian Oil Corporation Limited
III. Oil and Natural Gas Corporation Limited
IV. Hindustan Aeronautics Limited

Which of the PSEs given above are ‘Maharatna PSU’ in India?

a) I, II, III and IV
b) I, II and III
c) II and III
d) II and IV

Answer : b

Question 13 : Which of the following industries fell under the purview of industrial licensing that requires compulsory licensing?

I. Coal and lignite
II. Hazardous chemicals
IV. Electronic, aerospace and all types of defense equipment
V. Animal fats and oils

a) II and IV
b) I and II
c) I, II, III and IV
d) I, II, III, IV and V

Answer : c

Question 14 : Consider the following statements

I. The Navratna status is offered to Public Sector Enterprises by Department of Public Sector Enterprises
II. A company must have to be a Miniratna and have four independent directors on its board before it can be made a Navratna

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) None of these

Answer : c

Question 15 : Which of the following are Navratna CPSEs?

I. Bharat Electronics Limited
II. Oil India Limited
III. Power Finance Corporation Limited
IV. Shipping Corporation of India Limited

Which of the following statements given above is/are correct?

a) I and II
b) I, II and IV
c) II, III and IV
d) I, II, III and IV

Answer : d

Question 16 : Consider the following statements

I. Packaging machinery industry, like other industrial machinery, is allowed for 100% FDI under automatic approval
II. Food processing machinery can be classified under the general category of industrial machinery which is de-licensed under the current industrial policy and qualifies for 100% FDI under automatic approval

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 17 : Consider the following statements

I. The recent decision of government of India to partially decontrol the sugar industry, gives the millers freedom to sell sugar in open market and removes their obligation to supply sugar at subsidized prices to ration shops
II. C Rangarajan Panel also suggested decontrolling of sugar industry in India

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 18 : Consider the following statements

I. The first petrochemical industry in India started with the establishment of National Organic Chemical Industry Limited in decades sixties
II. The real importance of petrochemical industry in India shown with the establishment of Indian Petrochemicals Corporation Limited (IPCL) at Baroda

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 19 : Consider the following statements

I. Minitratna Public Sector Enterprises can be a joint venture, set subsidiary company or overseas office but with certain conditions
II. Till now less than 50 Public sector Enterprises have been given Miniratna status by the Indian Government

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : a

Question 20 : Consider the following statements.

I. MMTC Limited is India’s largest International trading organization.
II. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Odisha

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 21 : Consider the following statements

I. India has attained self-sufficiency in almost all consumer goods
II. In the term of capital goods, India still depends on the import

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 22 : Consider the following statements

I. The USSR assisted in building of Bhilai Steel Plant
II. The British assisted in the building of the Bokaro Steel Plant

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : a

Question 23 : Consider the following statements

I. Coal sector was nationalised by the Government of India under Indira Gandhi
II. Now, coal blocks are allocated on lottery basis
III. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production

Which of the following statements given above is/are correct?

a) Only I
b) II and III
c) Only III
d) I, II and III

Answer : a

Question 24 : Consider the following statements relating to Coal India Limited

I. It is designated as a ‘Maharatna’ company under the Ministry of Coal
II. It is the single largest coal producing company in the world
III. The headquarters of Coal India Limited is located at Ranchi (Jharkhand)

Which of the following statements given above is/are correct?

a) Only I
b) I and II
c) II and III
d) I, II and III

Answer : b

Question 25 : Which of the following is/are the criteria for Maharatna status?

I. Having Navratna status
II. An average annual turn over or more than Rs.25,000 crore during the last 3 years
III. An average annual net worth of more than Rs.10,000 crore during the last 3 years
IV. An average annual net profit after tax of more than Rs.5,000 crore during the last 3 years

Which of the following statements given above is/are correct?

a) I, II and III
b) II, III and IV
c) I, II and IV
d) All of the above

Answer : a

Question 26 : Coming soon

a)
b)
c)
d)

Answer : 

Question 27 : In which Five Year Plans heavy industries were given preference?

a) 2nd
b) 1st
c) 7th
d) 4th

Answer : a

Question 28 : Which of the following Five Year Plans of the Indian economy for the first time did devise the new strategy for industrialisation of backward regions to reduce regional disparities in industrialisation of the country? 

a) Third Plan
b) Fourth Plan
c) Sixth Plan
d) Eighth Plan

Answer : c

Question 29 : Which of the following Five Year Plans of Indian Economy encouraged the industrial sectors to use Robotics, Fibre Optics to enhance the quality and productivity for the first time in the process of industrialisation of the country?

a) First Plan
b) Second Plan
c) Fourth Plan
d) Seventh Plan

Answer : d

Question 30 : The first Industrial Policy was released in which year?

a) 1948
b) 1950
c) 1952
d) 1954

Answer : a

Question 31 : In the Industrial Policy 1977, the cottage industries have been categorised into how many types?

a) 2
b) 3
c) 4
d) 5

Answer : b

Question 32 : Which one of the following industrial policies has abolished (with a few exception) the Industrial Licensing? 

a) Industrial Policy, 1970
b) Industrial Policy, 1980
c) Industrial Policy, 1991
d) Industrial Policy, 1985

Answer : c

Question 33 : ‘Economic Reform’ measures in India was formally introduced in

a) July, 1991
b) August, 1947
c) January, 1980
d) March, 1990

Answer : a

Question 34 : In which year, Government of India had released National Manufacturing Policy?

a) 2010
b) 2011
c) 2012
d) 2013

Answer : b

Question 35 : Which one among the following is the target set in the National Manufacturing Policy (NMP) to achieve the sustained growth rate in the manufacturing sector of India Economy?

a) 10-12%
b) 12-14%
c) 15-16%
d) 18-20%

Answer : b

Question 36 : Which of the following is not a feature of New Industrial Policy, 1991?

a) Foreign Capital Investment limit was raised from 40% to 51%
b) The threshold limit of Rs.100 crores worth of assets for classification of a company as MRTP company was removed
c) Automatic approval was granted for foreign technology agreements upto the limit of Rs.500 crore subject to 7% loyalty on domestic sales and 8% on exports
d) A separate policy announced for the promotion of small scale industries

Answer : c

Question 37 : Consider the following statements about the Second Five Year Plan

I. Priorities were given in the production of iron and steel and heavy engineering and machine building industries
II. Strengthened the oil exploration and coal in India

Which of the following statements given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 38 : Consider the following statements

I. The expansion of public sector was based on Industrial Policy Resolution, 1956
II. Government has announced New Industrial Policy in July, 1991
III. Government has not announced any Industrial Policy at all

Which of the following statements given above is/are correct?

a) I, II and III
b) I and II
c) II and III
d) Only II

Answer : b

Question 39 : Consider the following aims of the National Manufacturing Policy (NMP) of Indian Economy

I. National Investment and Manufacturing Zones (NIMZs) will be established on lands which are degraded and uncultivable
II. NIMZs are the integrated industrial townships with world class physical and social infrastructure

Which of the statements about NIZMs formulated in NMP given above is/are correct?

a) Only I
b) Only II
c) Both I and II
d) Neither I nor II

Answer : c

Question 40 : Coming soon

a)
b)
c)
d)

Answer : 

Question 41 : In the ‘Index of Eight Core Industries’ which one of the following is given the highest weight?

a) Coal production
b) Electricity generation
c) Fertiliser production
d) Steel production

Answer : b

Question 42 : Which of the following is not included in the ‘Index of Eight Core Industries’?

a) Coal
b) Fertiliser
c) Electricity
d) Chemical

Answer : d

Question 43 : Which of the following component of Index of eight core Industries is given highest weightage?

a) Coal
b) Petroleum Refinery
c) Steel
d) Cement Production

Answer : b

Question 44 : Index of Industrial Production (IIP) is prepared on the basis of

a) quarterly
b) half annually
c) annually
d) monthly

Answer : d

Question 45 : Which one of the following sub-groups of the industrial sector has contributed the highest percentage of weighted in Index of Industrial Production (IIP)?

a) Mining
b) Construction
c) Electricity
d) Manufacturing

Answer : d

Question 46 : Which one of the following is not an immediate indicator of Industrial Sickness?

a) Drop in Profitability
b) Labour unrest
c) Shrinking of market credit
d) Decline in market share

Answer : d

Question 47 : Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

a) The Reserve Bank of India
b) The Department of Economic Affairs
c) The Labour Bureau
d) The Department of Personnel and Training

Answer : c

Question 48 : Which of the following is true about Index of Industrial Production (IIP)?

I. It measures the general level of industrial activity
II. It does not show volume of activity
III. It only shows the magnitude which represents the status of production
IV. The first IIP was published in 1990

Which of the following statements given above is/are correct?

a) I and II
b) II and III
c) I, II and III
d) All of these

Answer : c

Question 49 : When was the Board for Industrial and Financial Reconstruction started?

a) 15th May, 1987
b) 7th July, 1987
c) 20th December, 1987
d) 16th April, 1987

Answer : a

Question 50 : In 1985, Industrial Reconstruction Corporation of India renamed as

a) Industrial and Financial Reconstruction
b) Industrial Reconstruction Bank of India
c) Industrial Investment Bank of India
d) Industrial Investment for Reconstruction Bank of India

Answer : b

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