Indian Economy and Policy

Some developing countries use their limited foreign exchange reserves to buy iron ore for producing steel. This steel earns more foreign exchange than it costs. However, this is a foolish policy, especially as most of these countries have large deposits of iron are, which can be mined with minimal foreign exchange expense.

Which of the following, if true, most supports the policy of these countries to purchase iron ore abroad?

China has been able to attract substantial amounts of Foreign Direct Investment based on its aggressive policies, strict enforcement and an investment-friendly climate in general. This investment and its consequences have greatly contributed to China’s pre-dominance as an economic superpower and its economic progress ever since the Red Revolution in the late 40s.

Which of the following, if true, could not have been offered as a logical reason for foreign investors to invest their money in China?

The disparity in the quantum of machine production in India and that in other countries leads to _______.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

According to the passage, assembling imported components into machine proves ultimately ________.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

According to the passage, all the following factors are responsible for high cost of Indian machines EXCEPT ________.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

If the banks' rate of interest in India is made at par with that in advanced countries, the cost of manufacturing of machine tools _____________.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

The availability of Indian machine tool industry's help to small-scale industry is most likely to result in _________.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

Why do small and medium scale industries look for help from India's machine tool industry?

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

Which of the following best explains the sentence ''It wants a level playing field'' as used in the passage?

The machine tool industry in India __________.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.

Which of the following groups of statements is definitely TRUE in the context of the passage?

Statement (I) The vital role of India's machine tool industry has not been duly recognized by the Government. Statement (II) Small-scale industry's performance can be further improved with the help from the Indian machine tool industry. Statement (III) The author of the passage has not discussed all the factors which are responsible for high cost of Indian machines.

Directions: Read the following passage and answer the question given below it:­

Today the import duty on a complete machine is 35% for all practical purpose, whereas the import duty on raw materials and components ranges from 40-85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% - 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% - 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%-7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares. The above represents only a few of the extraneous reasons for the high cost of Indian machines.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of success stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs. Is it anybody's case that the needs of the fragile sector (which needs tender care) will be met from 6000 km away?
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding.