Indian Industries & Trade

Total Questions: 65

21. Consider the following states: [2001]

1. Gujarat

2. Karnataka

3. Maharashtra

4. Tamil Nadu

The descending order of these states with reference to their level of Per Capita. Net State Domestic Product is:

Correct Answer: (b) 3, 1, 2, 4
Solution:The descending order of the states with reference to their level of per capita Net State Domestic Product Maharashtra → Gujarat → Karnataka → Tamil Nadu
The Net Domestic Product is a measure of a country’s economic performance that shows the net value of all final goods and services produced within its borders in a given period, after subtracting depreciation from the Gross Domestic Product (GDP). Depreciation, also called capital consumption, refers to the gradual reduction in the value of physical assets such as buildings, machinery, and equipment due to use, aging, or obsolescence.
In simple terms,
NDP = GDP – Depreciation
While GDP measures total production, NDP represents what remains as net output after accounting for the loss of productive capacity. Thus, NDP gives a more realistic picture of a nation’s economic strength, as it indicates whether the economy is growing sustainably or merely maintaining its existing capital stock.

22. With reference to the Public Sector Undertakings in India, consider the following statements: [2002]

1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country.

2. Project and Equipment Corporation of India Limited is under the Ministry of Industry.

3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities.

Which of these statements is/are correct?

Correct Answer: (a) 1 only
Solution:Minerals and Metals Trading Corporation Limited (MMTC) is one of the two biggest foreign exchange earner for India. It is the largest international trading company of India and the first Public Sector Enterprise to be accorded the status of FIVE STAR EXPORT HOUSE by Govt. of India for long standing contribution to exports. MMTC is the largest non-oil importer in India. Project and Equipment Corporation of India Limited is under the Ministry of Commerce & Industry.

23. HINDALCO, an aluminium factory located at Renukut owes its site basically to: [2002]

Correct Answer: (b) abundant supply of power
Solution:HINDALCO, an aluminium factory located at Renukut due to abundant supply of power from National Thermal Power Station, Rihand and a capative power plant at Renu Sagar. It has a cogeneration unit at the plant itself.

Aluminium Industry
• Aluminium is the 2nd most important industry after the iron and steel industry.
• In the modern world Aluminium is used in the production and distribution of electricity (being a good conductor of electricity), household utensils and electric appliances, manufacturing and aeroplanes, rail coaches, nuclear and defense accessories etc.
• The plant for obtaining Alumina from bauxite ore for aluminium plants is located near the cheap sources of energy i.e., electricity & hydel power supply.
• It is also the fastest-growing metal which has grown by nearly 20 times in the last sixty years (compared to 6 to 7 times for other metals).
• The Aluminium industry comprises two basic segments: upstream and downstream.
• The upstream sector produces primary Aluminium from raw materials via bauxite mining.
• The downstream sector comprises of processing of Aluminium into semi-finished Aluminium goods such as rods, bars, castings, forging, etc.

24. Which one of the following committees recommended the abolition of reservation of items for the small scale sector in industry? [2002]

Correct Answer: (a) Abid Hussian Committee
Solution:Abid Hussain Committee (1997) recommended total de-reservation and desired replacing policy of reservation with a policy of promotion and strengthening of small scale units.
• Abid Hussain committee report on Small Enterprises was submitted in 1997.
• There was a total of 9 members including the chairman.
• The recommendations of committee are:-
-Protection should be replaced by promotion as the cornerstone of future policy.
-The corporatization of government extension agencies.
-Training and Marketing Assistance. Infrastructure development in clusters.
• Shri Abid Hussain was the former member of the Planning Commission.

25. With reference to India, which one of the following statements is NOT correct? [2003]

Correct Answer: (a) IPCL is India's largest petrochemical company
Solution:ONGC is India's largest petrochemical company. IPCL is the second largest petrochemical company. It produces around 69% of India's crude oil and around 62% of its natural gas.
About ONGC
• Domestic Operations: ONGC has a strong presence in India’s upstream sector, with exploration and production activities spanning across the country. The company has discovered 7 out of the 8 producing basins in India, including the major oil and gas fields in Mumbai High, Gujarat, Assam, and Andhra Pradesh. ONGC has also made significant discoveries in deep-water and ultra-deep-water areas, such as the Krishna Godavari basin.
• ONGC Videsh Limited (OVL), the overseas arm of ONGC, has a presence in 35 projects across 15 countries, including Russia, Venezuela, Brazil, Colombia, Sudan, South Sudan, Iran, Iraq, UAE, Myanmar, Vietnam, and New Zealand. Some of the key overseas assets include the Sakhalin-1 project in Russia and the Greater Nile Oil Project in Sudan.

26. Which one of the following statements is NOT correct? [2003]

Correct Answer: (a) India is the second largest producer of nitrogenous fertilizers in the world.
Solution:According to recent statistics India is the second largest producer of nitrogenous fertilizers in the world. India is the third largest steel producing country in the the world. India is the second largest producer of silk in the world after china. India is the second largest producer of coal in the world after china whereas in 2003 India was 9th steel producing country, scrod largest producer of silk and one of the largest producer of coal.

27. During the year 2000-01 which one of the following Industries recorded the highest growth rate in India? [2003]

Correct Answer: (d) Steel
Solution:The steel industry recorded highest growth rate of 7%, electricity, generation growth rate was 4%, coal industry growth was 3.3%.
In the past 10–12 years, India’s steel sector has expanded significantly. Production has increased by 75% since 2008, while domestic steel demand has increased by almost 80%. The capacity for producing steel has grown concurrently, and the rise has been largely organic.
• India is home to the fifth-highest reserves of iron ore in the world.
• As of April 2022, India was the world’s second-largest producer of crude steel.
• In FY22, India’s export rose by 25.1%, compared with 2021.
The steel industry and its associated mining and metallurgy sectors have seen major investments and developments in the recent past.
• India was the largest producer of Direct Reduced Iron (DRI) or Sponge Iron in the world in 2021.
• India is the 2nd largest consumer of finished steel preceded by China as the largest steel consumer as per the World Steel Association

28. Which one of the following statements is correct? [2003]

Correct Answer: (a) Alliance Air is a wholly-owned subsidiary of Indian Airlines
Solution:Alliance Air was formed in 1996 and was complelety owned by Indian Airline.

India’s Airways Sector: Key Statistics

• Market Leadership: India has become the third-largest domestic aviation market, recording a 15% YoY growth with 376.43 million total air passengers in FY24.
• Expanding Market Size: The India Aviation Market is projected to grow from $14.78 billion (2025) to $26.08 billion (2030), at a CAGR of 12.03%. (IATA)
• Fleet Strength: As of March 2025, Indian airlines operate an estimated 941 aircraft, reflecting significant growth in the aviation sector.
• Women in Aviation: 15% of Indian pilots are women, three times the global average, making India a leader in gender inclusivity.
• Infrastructure Expansion: The number of operational airports has doubled from 74 in 2014 to 148 in 2024, with a target to increase capacity to 468 MPPA at metro airports. (AAI)
• Cargo & Freight Growth: India handled 3,365.65 MMT of freight in FY24, strengthening logistics and supply chains.
• Sustainable Aviation: 73 airports have transitioned to 100% green energy usage, aligning with India’s environmental commitments.

29. Assertion (A): India does not export natural rubber. [2004]

Reason (R): About 97% of India's demand for natural rubber is met from domestic production.

Correct Answer: (b) Both A & R are true but R is NOT a correct explanation of A
Solution:India is the fourth largest country, regarding consumption of rubber with total consumption 631000 tons in 2001, after USA and Japan.

Due to high consumption in domestic market India does not export natural rubber. However small quantities of natural rubber is exported to get higher prices.

30. Assertion (A): Balance of Payments represents a better Picture of a country economic transactions with the rest of the world than the Balance of Trade: [2005]

Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas balance of Trade does not.

Correct Answer: (a) Both 'A' & 'R', are individually true & 'R' is the correct explanation of 'A'.
Solution:Balance of payments of a nation consists of visible account, invisible account and capital account. Whereas balance of trade = Export of goods import of goods.

If a country imports are more than exports the deficit can be made up by invisibles like remmitance by NRI and FDI investment.