Tag: subsidies, industrial policy and trade policy

Questions Related to subsidies, industrial policy and trade policy

The new industrial policy was introduced in ________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. 1989

  2. 1990

  3. 1991

  4. 1992

Show answer
Correct Option: C
Explanation:

The new industrial policy was introduced in 1991 which includes the latest industrial reforms were many requirements of industrial licensing abolished, restrictions on investment and expansion were removed, and easy access to foreign technology and foreign direct investment was facilitated. 

Which of the following has resulted in failure to achieve targets of industrial production?

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. Technical complications

  2. Power, finance and labour problems

  3. Poor planning

  4. All of the above

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Correct Option: D

According to Section 7 of Micro, Small and Medium Enterprises Development Act, 2006, in the case of industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 where investment in plant & machinery does more than Rs 5 crores but does not exceed Rs 10 crores are classified as ____________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. large industry

  2. micro enterprise

  3. small enterprise

  4. medium enterprise

Show answer
Correct Option: D
Explanation:
According to Section 7 of Micro, Small and Medium Enterprises Development Act, 2006, in the case of industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 where investment in plant & machinery does more than Rs 5 crores but does not exceed Rs 10 crores are classified as medium enterprise.
Medium enterprise generally employ about 100-999 number of employees. It pays an important role in the global economy. It is responsible for increasing the GDP at a greater rate.

_____ means disposal of public sector's unit's equity in the market or in other words selling of a public investment to a private entrepreneur.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. Liberalization

  2. Disinvestment

  3. De-regulation

  4. Globalization

Show answer
Correct Option: B
Explanation:

Disinvestment means disposal of public sector's unit's equity in the market or in other words selling of a public investment to a private entrepreneur. It means transfer of ownership or management of an enterprise from the public sector to the private sector. It may result in better management of the enterprises. It also encourages entrepreneurship.

According to Section 7 of Micro, Small and Medium Enterprises Development Act, 2006, in the case of industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 where investment in plant & machinery does not exceed Rs 25 lakh are classified as _________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. large industry

  2. micro enterprise

  3. small enterprise

  4. medium enterprise

Show answer
Correct Option: B
Explanation:

According to Section 7 of Micro, Small and Medium Enterprises Development Act, 2006, in the case of industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 where investment in plant & machinery does not exceed Rs 25 lakhs are classified as micro enterprise. Micro enterprise is generally defined as a type of small business firms which can employ a few number of people.

A recession is a __________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. period of declining prices

  2. period of very rapidly declining prices

  3. period of declining unemployment

  4. period during which aggregate output declines

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Correct Option: D
Explanation:

A recession is a period during which aggregate output declines. Recession can be defined as a part of the business cycle contraction. In this phase, overall economy experiences downfall. Other indicators such as GDP, investment spending, capital utilization, etc also tend to decline.

Small-scale industry under IDRA, 1951, is one with an investment up to _________ in plant and machinery, excluding land and building.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. 10 lakhs

  2. 1 crore

  3. 5 crore

  4. 10 crore

Show answer
Correct Option: B
Explanation:

Small-scale industry under Industry Development and Regulation act, 1951, is one with an investment up to 1 crore in plant and machinery, excluding land and building. Small scale industries can be defined as those industries where manufacturing activities take place in a very small scale.

Main objective(s) of industrial policy of Government is/are __________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. to attain international competitiveness

  2. to transform India in to a major player in the global arena

  3. to maintain a sustained growth in productivity

  4. all of above

Show answer
Correct Option: D
Explanation:

The new industrial policy was introduced in 1991 which includes the latest industrial reforms where many requirements of industrial licensing were abolished, restrictions on investment and expansion were removed, and easy access to foreign technology and foreign direct investment was facilitated so that Sustainable growth in productivity could be maintained to transform India in to a major player globally and to attain international competitiveness through globalization.

Which of the following statement is correct about the New Industrial Policy, 1991?

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. It gave dominant position to the public sector

  2. It abolished licensing for all projects except 18 industries of strategic and security importance

  3. It made compulsory for the industry to obtain license for all projects

  4. All of above

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Correct Option: B

Presently industrial licensing is not applicable for _________.

organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

  1. cigarettes

  2. industrial explosives

  3. alcohol

  4. electronic goods

Show answer
Correct Option: D
Explanation:

Presently industrial licensing is not applicable for electronic goods. Industrial license refers to the license which needs to be issued when an industry is to be set up. Industrial licensing is applicable for goods like cigarettes, industrial explosives and alcohol.