Indian Industries & Trade

Total Questions: 65

1. Which of the following benefits are likely to accrue to India from the World Trade Organisation? [1995]

1. India's share in the world trade is to go up from the present 600 million US dollars to 5 billion US dollars by 2000 AD.

2. It will help boost exports of agricultural commodities from India.

3. India's share in the world trade is likely to triple by the year 2000 A.D.

Correct Answer: (d) 2 & 3
Solution:World Trade Organizationis attempting to lower trade barriers across nations. Hence export of all member nations will go up.
India's GDP has considerably changed since 1990s and as it was projected India did achieve the estimated target but today it has breached overall predictions done for the later period of 2020.
Key Objectives of WTO
• To set and enforce rules for international trade to stimulate economic growth and employment.
• To provide a forum for negotiating and monitoring further trade liberalisation by lowering trade barriers and applying principles of known discrimination.
• To resolve trade disputes and contribute to the peace and stability of the world.
• To increase the transparency of decision-making processes, thereby giving the weak a stronger voice.
• To cooperate with other major international economic institutions involved in global economic management.
• To help developing countries take full benefits from the global trading system, thereby cutting the cost of doing business.
• To encourage good governance by reducing arbitrariness.

2. Local supply of coal is not available to: [1996]

Correct Answer: (b) VSL, Bhadravati
Solution:VSL Bhadravati located in Karnataka is the only iron and state plant which does not have capative coal mines and is situated outside the coal producing area. The plant switched over to electric furnaces after the completion of Mahatma Gandhi Hydel Power Station.
• India holds significant coal reserves of around 319 billion tonnes, making it one of the largest coal producers in the world. The major coal-bearing areas are concentrated in the eastern and central regions of the country. The dominant types of coal found in India are bituminous and sub-bituminous, which are widely used for power generation and industrial purposes.
• Coal Mines in India are broadly classified into two categories — Gondwana Coal and Tertiary Coal.
• Gondwana Coal, among the oldest and most important reserves globally, is mainly located in central India. It forms the bulk of India’s coal resources.
• Tertiary Coal, comparatively younger in age, is primarily found in the northeastern states, such as Meghalaya, Assam, and Arunachal Pradesh.

3. The number of industries for which industrial licensing is required has now been reduced to: [1997]

Correct Answer: (b) 6
Solution:Six industries which needs Industrial License:

1. Distillation and brewing of alcoholic drinks.

2. Cigars and cigarettes of tobacco and manufactured tobacco substitutes.

3. Electronic, aeroplane and defence equipment.

4. Industrial explosives.

5. Hazardous chemicals.

6. Drugs and Pharmaceuticals.

4. Scheme of (i) Urban Micro-Enterprises, (ii) Urban Wage Employment and (iii) Housing and Shelter Upgradation are parts of: [1997]

Correct Answer: (b) Nehru Rojgar Yojana
Solution:The Nehru Rozgar Yojana (1989)has been designed to provide employment to the urban unemployed and under-employed poor.
Jawahar Rozgar Yojna was established on April 1, 1989, by combining the National Rural Employment Program (NREP) and the Rural Landless Employment Guarantee Program (RLEGP). At the end of the Seventh Five-Year Plan, this was a synthesis of previous employment programmes, and it was India’s largest National Employment Program at the time, with a broad goal of providing 90-100 days of employment per individual, particularly in backward districts. The primary goals were to help people living in poverty.
In rural areas, the Yojna was implemented on a small scale. Panchayati Raj Institutions were supposed to be present in every village. The village received assistance and support from the District Rural Development Authority. The federal and state governments split expenditures 80:20. Since 1993-94, the Yojna has become more targeted and has grown significantly as a result of increased funding allocations.

5. The contribution of India's small scale sector to the gross turnover in the manufacturing sector since 1992 has been of the order of: [1997]

Correct Answer: (a) 40%
Solution:The contribution of small scale industries to employment and exports is substantial. The sector contributes over 40 per cent of the gross turnover in the manufacturing sector, 45 per cent of manufactured exports and 25 per cent of total exports. As in 2015.
Current Status of India’s Manufacturing Sector

• The manufacturing sector is emerging as an integral pillar in the country’s economic growth with 17% of the nation’s GDP and over 27.3 million workers.
• Growth and Performance: According to the Annual Survey of Industries (ASI) for 2022-23, the manufacturing sector registered a robust growth rate of 21.5% in output, with a Gross Value Added (GVA) growth of 7.3%.
• Key sectors such as basic metal manufacturing, coke and refined petroleum products, food products, chemicals, and motor vehicles collectively contributed 58% to the total manufacturing output.
• Employment Generation: The manufacturing sector has also been a significant source of employment, adding approximately 22 lakh jobs in 2022-23.
○ It has surpassed pre-pandemic levels, indicating a steady recovery and expansion.
○ Major states like Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh have been leading contributors to the sector’s GVA and employment.
• Foreign Direct Investment (FDI): FDI in India’s manufacturing sector has reached US$ 165.1 billion, a 69% increase over the past decade, driven by production-linked incentive (PLI) schemes.
○ In the last five years, total FDI inflows amounted to US$ 383.5 billion

6. Which of the following places are known for paper manufacturing industry? [1997]

1. Yamuna Nagar

3. Shahabad

2. Guwahati

4. Ballarpur

Choose the correct answer using the codes given below:

Correct Answer: (b) 1, 2 & 4
Solution:Yamuna Nagar, Guwahati and Ballarpur are famous for paper manufacturing industry. Yamuna Nagar is in Haryana, Guwahati is in Assam and Ballarpur is in Maharashtra.

Paper Industry
• The pulp and paper industry comprises companies that use wood as raw material and produce pulp, paper, paperboard, and other cellulose-based products.
• The pulp and paper industry is one of the largest industries in the world. It is dominated by North American, Northern European, and East Asian countries. Latin America and Australasia also have significant pulp and paper industries.
• Over the next few years, it is expected that both India and China will become the key countries in the industry’s growth. World production of paper and paperboard is around 390 million tonnes and is expected to reach 490 million tonnes by 2020. In 2009, the total global consumption of paper was 371 million tonnes.
• The paper industry is a vital and core industry for any country and the per capita paper consumption can be taken as a measure of growth and progress in areas related to industrial culture and education activities. Per capita consumption is tending to be stagnant in India at approximately 2 kg as against more than 200 kg in highly developed countries.

7. Match List-I with List-II and select the correct answer: [1997]

List-I (Hazardous industries) List-II (Located at) 
A. Glass Industry1. Moradabad
B. Brassware Industry2. Marakpur
C. Slate Industry3. Ferozabad
D. Handmade Carpet4. Mirzapur Industry

Codes:

ABCD
(a)3124
(b)1342
(c)3142
(d)1324
Correct Answer: (a)
Solution:
List-I (Hazardous industries) List-II (Located at) 
A. Glass IndustryFirozabad
B. Brassware IndustryMoradabad
C. Slate IndustryMarakpur
D. Handmade Carpet IndustryMirzapur

All these industries use child labour filling of a public interest petition in the Supreme Court is pending.

8. Consider the following statements: [1998]

The price of any currency in international market is decided by the:

1. World Bank

2. Demand for goods/services provided by the country concerned

3. Stability of the government of the concerned country

4. Economic potential of the country in question of these statements:

Correct Answer: (b) 2 & 3 are correct
Solution:World Bank is important to the source of financial and technical assistance to developing countries around the world. It has no relation to the price of the currency in the International Market. Hence statement 1 is not correct.

The stability of the government is a very important factor too as an unstable govt may not be able to take effective economic decisions which will, in turn, affect export and import. Hence statement 2 is correct.

The price of any currency is determined by forces of demand and supply. Demand for a currency depends on two factors- its exports to other countries and investments that people want to make in that currency. Hence statement 3 is correct.

The economic potential of the country is not related to the price of any currency in the international market. Hence statement 4 is not correct.

9. Some time back, the Government of India, decided tode-license 'white goods' industry. 'White goods' include: [1998]

Correct Answer: (c) items purchased for conspicuous consumption
Solution:White goods are large electrical goods used domestically such as air conditioners, refrigerators, cooking range etc., which had a white enamel finish. Despite their availability in varied colours now, they are still called white goods. The term is used where British English is spoken. In the year 1993 the govt. of India had decided to de-licence these goods.
About PLI Scheme for White Goods
• It is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains.
• It is implemented as a pan India scheme and is not specific to any location, area or segment of population.
• Objectives: It proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain.
• Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem and employment generation.
• Incentives: The scheme will extend an incentive of 4-6% on incremental turnover over base year (2019-20) of goods sold in India and exported to global markets, to eligible companies for a period of 5 years.

10. The rough outline map given shows centres of cement industry labelled 1, 2, 3 and 4. Match these centres with the following sets of names: [1999]

A. Katni

B. Tirunelveli

C. Sikka

D. Churk

Select the correct answer using the codes given below:

Codes:

ABCD
(a)3421
(b)2413
(c)1243
(d)2314
Correct Answer: (b)
Solution:In the rough outline map of India show centres of cement industry:

'1' Sikka in Gujarat.

'2' Katni in Madhya Pradesh

'3' Churk in Uttar Pradesh

'4' Tirunelveli in Tamil Nadu.

All the places have cement industries.