Tag: subsidies, industrial policy and trade policy

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Questions Related to subsidies, industrial policy and trade policy

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 of the following licenses were required by industries? 

  1. To establish an industrial unit

  2. To expand production

  3. To get tax benefits

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

Under the license raj, industries required licenses for establishing units, expanding production, and diversifying, which were all part of the regulatory framework.

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 of the following could be a reason for promotion of small scale industries? 

  1. Economy prospers when it has only small scale industries

  2. Today's small scale industries are tomorrows large scale industries

  3. Large scale industries ruin small scale industries

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

A key rationale for promoting small-scale industries is their potential to grow into larger, more established enterprises over time.

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

How did the industrial policy promote regional equity? 

  1. The policy failed to improve regional equality.

  2. Government kept industries under strict control

  3. Industries were adapting to the market mechanism

  4. Private sector and state shared equal control over industies
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The government promoted regional equity by requiring licenses for new industries, which allowed them to steer investment toward backward regions.

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

How many categories did the resolution classify the industry into?

  1. Two categories

  2. Four categories

  3. No categories

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

The 1956 Industrial Policy Resolution classified industries into three categories based on the extent of state control.

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

State a protectionism technique used by the government to promote small scale industries. 

  1. Quotas

  2. Tariffs

  3. Reserving production of few products to small scale industries only

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

Protectionist techniques included quotas, tariffs, and the reservation of specific products for small-scale production to shield them from large-scale competition.

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 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.