Economics · Banking Financial Awareness

Indian Economy and Policy

1,777 Questions

Indian economy and policy questions cover the structural dynamics and regulatory measures shaping the national market. Topics include foreign direct investment, taxation reforms, and government initiatives for growth. This section is highly relevant for competitive exams requiring economic awareness.

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Indian Economy and Policy 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

As per New Industrial Policy of India, exemption from Industrial licensing is given except _______.

  1. for industries reserved for public sector

  2. for industries reserved for small scale sector

  3. for industries attracting local restrictions.

  4. All the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The 1991 policy aimed to abolish industrial licensing for most sectors, but it maintained specific restrictions for industries reserved for the public sector, small-scale sectors, and those with specific local or environmental constraints.

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

Industrial resolution policy (1956) enlarged the scope of ______ participation in India.

  1. private sector

  2. joint sector

  3. public sector

  4. foreign funds
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Industrial Policy Resolution of 1956 emphasized the state's role in industrial development, significantly expanding the scope and dominance of the public sector in the Indian economy.

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

Capital employed per worker in industry was ______.

  1. low

  2. high

  3. medium

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

Historically, Indian industry has been characterized by labor-intensive methods, resulting in a relatively low amount of capital employed per worker.

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

Growth rate of industrial output over the planning period has been _______.

  1. satisfactory

  2. not upto the mark

  3. good

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

Over the various planning periods in India, the growth rate of industrial output is generally considered to have been satisfactory, despite various challenges.

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

Since independence, dominance of monopoly business houses has _______.

  1. increased

  2. decreased

  3. remained constant

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

Post-independence, the licensing system and protectionist policies often led to the concentration of economic power in large business houses. This trend of dominance persisted for several decades until the liberalization reforms.

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

Mahalanobis model emphasized on ______.

  1. building basic & capital goods industries

  2. building basic industries

  3. building capital goods industries

  4. building consumer goods industries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Mahalanobis model, which formed the basis of the Second Five-Year Plan, prioritized the development of heavy and capital goods industries to build a self-reliant industrial base.

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

Since independence, the structure of industry has shifted in favour of _______.

  1. basic, capital & intermediate goods

  2. basic goods only

  3. capital goods only

  4. intermediate goods only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The industrial strategy post-independence focused heavily on shifting the structure toward basic, capital, and intermediate goods to reduce dependence on imports and build a strong domestic industrial foundation.

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

During 1951- 90 the strategy was to _______.

  1. develop consumer goods industries

  2. develop basic & capital goods industries by giving their responsibility to public sector

  3. develop intermediate goods industries

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

The strategy during 1951-1990 was characterized by the public sector taking the lead in developing heavy, basic, and capital goods industries, as these were seen as essential for long-term growth.

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

Since 1951, the number of small scale industries have witnessed _______.

  1. mammoth growth

  2. moderate growth

  3. negative growth

  4. no growth
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Since 1951, the government has actively promoted small-scale industries through various incentives, leading to a significant increase in their number and contribution to the economy.

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

Industrial sector has now become &_________.

  1. broad based & modernized

  2. narrow based & backward

  3. narrow based & modernized

  4. broad based but backward
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The industrial sector in India has evolved from a limited base to a broad-based structure that incorporates modern technology and diverse production capabilities.

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

For the development of cottage $7$ small scale industries _______________.

  1. Loans were provided

  2. Some production items were specially reserved

  3. Both a & b

  4. Neither a nor b
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The government supported small-scale and cottage industries through both financial assistance (loans) and protective measures, such as reserving specific items for exclusive production by these sectors.

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

Foreign direct invest helped India in ___________.

  1. exports

  2. imports

  3. import of money from outside

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Foreign direct invest helped India in exports, imports and import of money from outside. FDI stands for Foreign Direct Investment. It is also known as 'cross border investment'. It plays an important role in the global economy. It is a type of investment made by a resident in one economy in a business organisation which belongs to another 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

Some of the characteristic feature involved with Industrial Policy development $1948-88$ were ___________.

  1. relaxation in MRTP Provision

  2. eelaxation in FERA Provision

  3. both a & b

  4. development of ago bored industries
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Industrial Policy development between 1948-88 saw relaxation in both MRTP (Monopolies and Restrictive Trade Practices) and FERA (Foreign Exchange Regulation Act) provisions. These relaxations were part of liberalization trends.

Multiple choice india: security setup overview of india general knowledge

Which one of the following statements is incorrect?

  1. India is the third largest importer of the defence equipments.

  2. India meets more than 50% of its requirement of the defence equipments through imports.

  3. Defence budget for 2015-16 accounts for less than 2% of the GDP.

  4. Certain financial powers are delegated to the Vice-Chief of Army Staff for capital acquisitions.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

India is consistently ranked among the top importers of defence equipment, but it is generally considered the largest or second-largest, not the third. The other statements regarding import dependency, budget percentages, and delegated powers are generally accurate for the period mentioned.