Indian Industries & Trade

Total Questions: 65

41. Disguised unemployment generally means : [2013-1]

Correct Answer: (c) marginal productivity of labour is zero
Solution:Disguised unemployment is a situation when people do not have productive full-time employment, but are not counted in the official unemployment statistics.
Types of Unemployment
Disguised: This occurs when more people are employed than necessary, commonly found in the agricultural and unorganized sectors of India.
Structural: It arises from a mismatch between job opportunities available in the market and the skills possessed by the available workforce. Lack of required skills and inadequate education often hinder job prospects for many individuals in India.
Cyclical: This type fluctuates with the business cycle, increasing during recessions and decreasing during periods of economic growth. Cyclical unemployment is more prevalent in capitalist economies.
Technological: It occurs when jobs are lost due to technological advancements. In India, the World Bank predicted in 2016 that automation could threaten 69% of jobs.
Frictional: It is temporary joblessness occurring when individuals voluntarily leave one job to find another, or when entrants seek work, reflecting the normal transition and search time in a healthy labor market.
Seasonal: Seasonal unemployment occurs when people are employed only during certain seasons and remain jobless during off-seasons, common in agriculture, tourism, and other weather or demand-dependent industries.

42. With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? [2014-1]

1. Balance of trade

2. Foreign assets

3. Balance of invisibles

4. Special Drawing Rights

Select the correct answer using the code given below.

Correct Answer: (c) 1 & 3
Solution:The current account consists of the balance of trade and balance of invisibles.

The Balance of Payments is significant for several reasons:
• Economic Health Indicator: It provides an overview of a country’s financial and economic status, indicating whether the economy is growing sustainably.
• Currency Valuation: BoP data helps determine the direction of a country’s currency, whether it is appreciating or depreciating relative to other currencies.
• Policy Formulation: Governments and central banks use BoP statistics to shape fiscal, trade, and monetary policies.
• Investment Decisions: International investors and agencies rely on BoP data to assess the economic environment and investment potential of a country.
• Understanding Trade Performance: BoP allows policymakers to analyze trade imbalances, capital flows, and international investment patterns.

43. In India, the steel production industry requires the import of : [2015-1]

Correct Answer: (c) coking coal
Solution:The coal found in India is mainly of non-coking quality and hence coking coal has to be imported. 70% of the steel produced today uses coal. Coking coal is a vital ingredient in the steel making process.
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

44. In the 'Index of Eight Core Industries', which one of the following is given the highest weight? [2015-1]

Correct Answer: (b) Electricity generation
Solution:Electricity generation (weight: 10.32%) increased by 3.5% in July, 2015. Its cumulative index during April to July, 2015-16 increased by 2.0% over the corresponding period of previous year.
Index Of Eight Core Industries
• Index of Eight Core Industries (ICI) measures combined and individual performance of production of eight core sectors in India, comprising- coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity.
• These eight core industries constitute 40.27% of the total index of industrial production (IIP).
• This index is prepared by the Office of the Economic Advisor, Ministry of Commerce and Industry.
• It is published monthly with the base year as 2011-12.

45. Which of the following brings out the 'Consumer Price Index Number for Industrial Workers"? [2015-1]

Correct Answer: (c) The Labour Bureau
Solution:The labour Bureau brings out "consumer price index numbers" for industrial workers.

The Labour Bureau of the Ministry of Labour & Employment, released Consumer Price Index for Industrial Workers.

Current status of CPI- The All-India CPI-IW for June, 2021 increased by 1.1 points and stood at 121.7 (one hundred twenty-one and point seven). On 1-month percentage change, it increased by 0.91% with respect to previous month compared to an increase of 0.61% recorded between corresponding months a year ago.

46. Recently, India's first 'National Investment and Manufacturing Zone' was proposed to be set up in : [2016-1]

Correct Answer: (a) Andhra Pradesh
Solution:In order to boost 'Make in India' campaign, first national investment and manufacturing zone to come up in Andhra Pradesh. The state assured the Centre of availability of 10 sq km of land in one place in Prakasham district.
The Major Benefits for Units within NIMZ
• A job-loss policy will enable units to pay suitable worker compensation in the eventuality of business losses/closures through insurance and thereby eliminate the charge on the assets.
• The developers of NIMZs will be allowed to raise ECBs for developing the internal infrastructure.
• Exemption from capital gains tax.
• The transfer of assets belonging to a firm that has been declared sick will be facilitated by the SPV of the concerned NIMZ.
• Soft loans from multilateral institutions will be explored for funding infrastructure development.
• Skill up-gradation programmes for new employees as well as for the existing employees in coordination with NSDC.

47. With reference to pre-packaged items in India, it is mandatory to the manufacturer to put which of the following information on the main label, as per the Food Safety and Standards (Packaging and Labelling) Regulations, 2011? [2016-1]

1. List of ingredients including additives

2. Nutrition information

3. Recommendations, if any, made by the medical profession about the possibility of any allergic reactions

4. Vegetarian/non-vegetarian

Select the correct answer using the code given below.

Correct Answer: (c) 1, 2 & 4
Solution:(i) Items 1, 2 and 4 are the mandatory information to the manufacturer to put these on the main label as per FSS(packaging & labeling) regulations 2011.

(ii) According to official notification

Labels have to contains 1, 2 and 4 that much is confirmed. And since UPSC has not given any option on "All correct". Hence answer (c).

48. Which of the following best describes the term 'import cover', sometimes seen in the news? [2016-1]

Correct Answer: (d) It is the number of months of imports that could be paid for by a country's international
Solution:

It is the ratio of the value of imports to the Gross Domestic Product of a country: This ratio compares the total value of a country’s imports to its overall Gross Domestic Product (GDP). A high ratio suggests that a significant portion of the GDP is dedicated to purchasing goods and services from abroad, whereas a lower ratio indicates a smaller dependence on imports in relation to the size of the economy. While this metric provides insight into the relative scale of a country’s imports, it does not directly relate to the concept of ‘import cover.’
It is the total value of imports of a country in a year: This option refers to the aggregate monetary value of all goods and services that a country imports over a one-year period. It is a measure of the total import activity but does not consider the country’s ability to sustain these imports under changing economic conditions. This figure is important for understanding the scale of a country’s importation but is not the same as import cover.
It is the ratio between the value of exports and that of imports between two countries: This ratio, often referred to as the trade balance, measures the difference between the value of goods and services a country exports and the value of what it imports. A trade surplus occurs if exports exceed imports, while a trade deficit occurs if imports are greater than exports. This ratio is crucial for understanding trade relationships and the balance of trade but does not reflect ‘import cover.’
It is the number of months of imports that could be paid for by a country’s international reserves: Import cover refers to this concept. It measures the duration (typically in months) that a country can continue to import goods and services using its existing foreign exchange reserves, without any additional income. This measure is a key indicator of a country’s financial stability and resilience to external economic shocks. A higher import cover suggests a stronger buffer against external risks, such as sudden stops in capital inflows or export revenue declines.

49. With reference to 'Quality Council of India (QCI)', consider the following statements: [2017-1]

1. QCI was set up jointly by the Government of India and the Indian Industry.

2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

Which of the above statements is/are correct?

Correct Answer: (c) Both 1 & 2
Solution:Both statements are correct, as per their organization's 'about us' page.

1. To encourage development & application of third party assessment model for use in government, regulators, organizations and society.

2. To promote quality competitiveness of India's enterprises especially MSMEs through adoption of and adherence to quality management standards and quality tools.

3. Promoting the establishment of quality improvement and benchmarking centre, as a repository of best international national practices and their dissemination among the industry in all the sectors.

50. India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to: [2018-1]

Correct Answer: (d) WTO
Solution:GI indicators fall under WTO domain so D is the answer.
Geographical Indications (GI tags) are signs used on products that have a specific geographical origin and possess distinctive qualities, reputation, or characteristics attributable to that place of origin. GI tags serve as intellectual property rights that identify a product’s unique geographical source, providing legal protection and preventing unauthorised use.
In India, the Geographical Indications of Goods (Registration and Protection) Act, of 1999 governs the registration and protection of GIs. These tags play a crucial role in promoting and safeguarding the unique products and traditional knowledge of various regions, contributing to rural development, preserving cultural heritage, and enhancing the marketability of Indian products in the global market.