Economics · General Awareness

Economic Sectors and Infrastructure

1,725 Questions

This topic covers the classification of primary, secondary, and tertiary economic sectors, along with their infrastructure requirements. Questions often explore the impact of globalization, privatization, and technology on various industries. This material is frequently tested in SSC, state PSC, and UPSC examinations.

Primary and secondary sectorsBanking and service sectorPrivatization and economic reformsIndustrial growth and laborFive-Year Plans priorities

Economic Sectors and Infrastructure Questions

Multiple choice 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

Employment in small-scale & cottage industries is next only to that of  __________ sector .

  1. agricultural

  2. industrial

  3. services

  4. none of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After agriculture, the small-scale and cottage industry sector is the largest provider of employment in India.

Multiple choice 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

SIDCO is related to the development of ____________.

  1. sugar industry

  2. steel industry

  3. small industry

  4. soap Industry
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Small Industries Development Corporation Limited (SIDCO) has been set up by the Govt. of Tamilnadu, with the specific objective of playing a catalytic role in the promotion and development of Small Scale Industries.

Multiple choice 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

SIDO is related to the development of ___________.

  1. Soap industry

  2. Steel industry

  3. Small industry

  4. Sugar industry
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Small Industries Development Organi-sation (SIDO) an apex body at Central level for formulating policy for the development of Small Scale Industries in the country, is playing a very constructive role for strengthening this vital sector which has been proved to be one of the pillars of the economy of the country.

Multiple choice 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

_______ is free from location restriction as per new industrial policy.

  1. Small scale sector unit

  2. Public sector units

  3. Polluting units

  4. Extraction industries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Small-scale sector units were often given exemptions from certain location restrictions to encourage their growth and flexibility.

Multiple choice 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

Other than small sector unit, how can one produce items reserved for small scale sector subject to ________.

  1. complying with reservation of jobs scheme announced by the Central Government of India

  2. owning a backward village for development.

  3. obtaining industrial license and undertaking to meet 50% export obligation.

  4. contributing 10% profit toward environmental protection fund.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the reservation policy for small-scale sectors, larger units could produce reserved items only if they obtained an industrial license and committed to a significant export obligation (typically 50%).

Multiple choice 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

As per new Industrial Policy how many industries are reserved for public sector only?

  1. 5

  2. 8

  3. 4

  4. 6
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The 1991 Industrial Policy significantly reduced the number of industries reserved exclusively for the public sector to eight, down from the previous much larger list.

Multiple choice 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

 _______ industry is traditionally called child of protection.

  1. Sugar

  2. Fertilizers

  3. Edible oil

  4. Hardware
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The sugar industry in India is historically referred to as the child of protection because it grew under the shelter of protective tariffs and government support.

Multiple choice 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

As per new Industrial Policy how many industries are required to obtain compulsory Industrial license?

  1. 5

  2. 2

  3. 4

  4. 6
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The 1991 policy drastically reduced the number of industries requiring compulsory licensing to 18 initially, which was later reduced further to 6.

Multiple choice 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

Among traditional village industries  ________ possess the highest labor productivity.

  1. cotton mills

  2. handicrafts

  3. khadi industry

  4. glass and ceramics
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Handicrafts are often cited in economic literature as having higher labor productivity compared to other traditional village industries like khadi, due to the specialized skill set involved.

Multiple choice 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

As per new Industrial Policy how many industries are reserved/for small scale sector?

  1. 326

  2. 306

  3. 369

  4. 410
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

At the time of the policy implementation, there were 326 items reserved for exclusive manufacture in the small-scale sector.

Multiple choice 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

After independence, there was a high concentration of employment in which industries  _______.

  1. small & household industries

  2. large industries

  3. medium industries

  4. both (a) & (b) above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

After independence, India's employment was heavily concentrated in both small/household industries and the emerging large-scale industrial sector.

Multiple choice 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

Indian industry is _______.

  1. dependent on the vagaries of nature

  2. independent of vagaries of nature

  3. has no relationship with nature

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Unlike agriculture, which is heavily dependent on weather and nature, the industrial sector is largely independent of such vagaries.

Multiple choice 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

In India, industries witness _______.

  1. underutilization of capacity

  2. moderate utilization of capacity

  3. overutilization of capacity

  4. exact utilization of capacity
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Indian industries have historically faced issues with underutilization of capacity due to factors like power shortages, raw material bottlenecks, and demand constraints. This is a common structural issue in developing industrial economies.

Multiple choice 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

Which Industrial Policy Paid more attention toward the cottage industries?

  1. Industrial Policy of $1948$
  2. Industrial Policy of $1956$
  3. Industrial Policy of $1977$
  4. Industrial Policy of $1980$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Industrial Policy of 1977 placed a renewed and specific emphasis on the development of cottage and small-scale industries, particularly in rural areas, to promote employment.

Multiple choice 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

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 ____________.

  1. large industry

  2. micro enterprise

  3. small enterprise

  4. medium enterprise
Reveal answer Fill a bubble to check yourself
D Correct answer
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.