Industrial Sector (Economic Development) Part-I

Total Questions: 50

31. The specific requirements of the 'start-ups' can be ful-filled through: [U.P.P.C.S. (Pre) 2017]

Correct Answer: (d) All the above
Solution:The specific requirements of the 'start-ups' can be fulfilled through bootstrapping (self-funding), crowd funding, angel investors, venture capital, business incubators and accelerators, bank loans etc. and from govt. programms (e.g. MUDRA Scheme) that offer start-up capital.

An angel investor is an individual who invests their own money in a business, typically a startup, in exchange for equity or convertible debt. They are often high-net-worth individuals, retired executives, or entrepreneurs who believe in a business idea and want to support its growth.

Venture capital (VC) is a type of private equity financing provided to startups and early-stage companies with high growth potential. It's a form of investment where investors, often venture capitalists, fund businesses in exchange for equity or shares in the company. The goal is to help these companies grow and achieve significant returns for the investors.

Crowdfunding is a method of raising funds for a project or venture by soliciting contributions from a large number of people, typically online. It's a form of crowdsourcing and alternative finance, used to fund projects without traditional financial intermediaries. Crowdfunding can be used for various purposes, including charitable causes, creative projects, business startups, and even personal expenses.

32. "Initially the specific requirements of the Start-up can be fulfilled through the new age financing alternatives" has been suggested by: [U.P.P.C.S. (Mains) 2016]

Correct Answer: (a) Pranab Mukherjee
Solution:Addressing a round table on 'financing of innovations with leaders of the banking and finance industry on 17th March 2016, the then President Pranab Mukherjee had suggested this. He said that new-age financing options like angel investors, venture capatilists, crowd funding, seed finance, and innovation on technology can meet the special requirements of innovative projects at formative stage.

33. Which Indian State has launched the Student Startup and Innovation Policy (SSIP) 2.0 in January 2022? [Uttarakhand P.C.S. (Pre) 2021]

Correct Answer: (c) Gujarat
Solution:In January 2022, Gujarat Chief Minister launched Student Startup and Innovation Policy (SSIP 2.0) for 11 January, 2022 to 31 March, 2027 period. The SSIP 2.0 aims to promote innovations and Start-ups in the traditional and new-age technology along with the sunrise sectors.

SSIP aims to create a state-wide, university-based network that supports student innovations and provides a conducive environment for their creative pursuits. SSIP provides funding assistance, including grants for Proof of Concept (POC) development, seed funding for student-led innovations, and support for intellectual property (IP) filings.

The policy offers mentorship from industry experts and provides access to incubation centers that can help students develop and refine their ideas. SSIP helps students move their ideas through various stages, from initial concept to prototyping, testing, and eventually, product development.

The policy encourages students to contribute to sustainable development and inclusive growth through their innovative ventures. SSIP fosters collaboration between students, academia, industry, and the government to create a thriving innovation ecosystem. The policy provides assistance with intellectual property rights, including patent registration and protection.

34. With reference to 'Stand-up India Scheme', which of the following statements is/are correct? [I.A.S. (Pre) 2016]

1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.

2. It provides for refinance through SIDBI.

Correct Answer: (c) Both 1 and 2
Solution:The Stand-Up India Scheme aims at promoting entrepreneurship among women and scheduled castes and scheduled tribes. The scheme is anchored by Department of Financial Services (DFS), Ministry of Finance, Government of India.

The objective of the Stand-Up India Scheme is to facilitate bank loans between Rs. 10 lakh to Rs. I crore to at least one bank branch of all scheduled commercial banks for setting SC or ST borrower and at least one woman borrower per up a greenfield enterprise.

The process have been led by SIDBI with the involvement of Dalit Indian Chamber of Commerce and Industry (DICCI) and various sector-specific institutions all over the country. The offices of SIDBI and National Bank for Agriculture and Rural Development (NABARD) has been designated as Stand Up Connect Centres (SUCC).

35. 'Stand-up India' Scheme's purpose is: [J.P.S.C (Pre) 2016]

Correct Answer: (a) To encourage entrepreneurship among the SC/ST and women entrepreneur
Solution:Stand-up India' scheme was launched by Government of India on 5 April, 2016 to support entrepreneurship among women and SC & ST communities. This scheme facilitate bank loans between 10 lakh to I crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

This enterprise may be in manufacturing, services or the trading sector.                  The scheme aims to encourage all bank branches in extending loans. The desiring applicants can apply under the scheme:

  • Directly at the branch or,
  • Through Stand-Up India Portal (www.standupmitra.in) or,
  • Through the Lead District Manager (LDM).
    Eligibility for a Loan:
  • SC/ST and/or women entrepreneurs, above 18 years of age.
  • Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first-time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture.
  • In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
  • Borrowers should not be in default to any bank/financial institution.
  • The Scheme envisages 'up to 15%' margin money which can be provided in convergence with eligible Central/State schemes.
  • In any case, the borrower shall be required to bring in a minimum of 10% of the project
    cost as own contribution.

36. 'Stand-up-India' scheme for promoting entrepreneurship is related to : [U.P.R.O./A.R.O. (Pre)]

Correct Answer: (d) Women, SC and ST
Solution:Stand-up India' scheme was launched by Government of India on 5 April, 2016 to support entrepreneurship among women and SC & ST communities.

This scheme facilitate bank loans between 10 lakh to I crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector.

The scheme aims to encourage all bank branches in extending loans. The desiring applicants can apply under the scheme:

  • Directly at the branch or,
  • Through Stand-Up India Portal (www.standupmitra.in) or,
  • Through the Lead District Manager (LDM).
    Eligibility for a Loan:
  • SC/ST and/or women entrepreneurs, above 18 years of age.
  • Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first-time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture.
  • In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
  • Borrowers should not be in default to any bank/financial institution.
  • The Scheme envisages 'up to 15%' margin money which can be provided in convergence with eligible Central/State schemes.
  • In any case, the borrower shall be required to bring in a minimum of 10% of the project
    cost as own contribution.

37. Pradhan Mantri Mudra Scheme is aimed at: [I.A.S. (Pre) 2016]

Correct Answer: (a) bringing the small entrepreneurs into formal financial system
Solution:Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Prime Minister Narendra Modi on April 8, 2015 for providing loans upto 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA (Micro Units Development & Refinance Agency Ltd.) loans under PMMY.

These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCX, while MUDRA will refinance these institutions. The borrower can approach any of the lending institutions mentioned above or can apply online through the portal www.udyamimitra.in.

Under the aegis of PMMY, MUDRA has created three products namely 'Shishu (for loans upto Rx. 50,000), "Kishor (for loans of Rs. 50,001 to Rs. 5 lakh) and "Tarun" (for loans beyond 5 lakh and upto Rs. 10 lakh) to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/ growth.

38. The Mudra Yojna of the Government of India is designed to: [R.A.S/R.T.S. (Pre) (Re. Exam) 2013]

Correct Answer: (d) Provide easy financial assistance to set up small business
Solution:Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Prime Minister Narendra Modi on April 8, 2015 for providing loans upto 10 lakh to the non-corporate, non-farm small/micro enterprises.

These loans are classified as MUDRA (Micro Units Development & Refinance Agency Ltd.) loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCX, while MUDRA will refinance these institutions.

The borrower can approach any of the lending institutions mentioned above or can apply online through the portal www.udyamimitra.in. Under the aegis of PMMY, MUDRA has created three products namely 'Shishu (for loans upto Rx. 50,000), "Kishor (for loans of Rs. 50,001 to Rs. 5 lakh) and "Tarun" (for loans beyond 5 lakh and upto Rs. 10 lakh) to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/ growth.

39. How much loan amount will be granted by banks under Pradhan Mantri Mudra Yojana for industry, business and services under Kishor Enterprise ? [Chhattisgarh P.C.S. (Pre) 2017]

Correct Answer: (d) More than Rs. 50,000 and up to Rs. 5,00,000
Solution:The Government of India launched a flagship scheme called Pradhan Mantri Mudra Yojana (PMMY) on 8th April, 2015 to extend affordable loans to micro and small enterprises to cater to their funding needs. There are three types of Mudra loans depending on the loan amount:

(i) Shishu-Loans sanctioned under the PMMY scheme up to Rs. 50,000.

(ii) Kishor-Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs. 5,00,000.

(iii) Tarun-Loans sanctioned under the PMMY scheme from Rs. 5,00,001 up to Rs. 10,00,000.

40. With reference to 'Quality Council of India (QCI)' consider the following statements: [I.A.S. (Pre) 2017]

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 and 2
Solution:The Quality Council of India (QCT) was set up in 1997 as pioneering experiment of the Government of India in setting up organizations in partnership with Indian industry. It is an autonomous body under the administrative control of the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.

QCI is governed by a Council comprising of 38 members including the Chairman, whereas the Chairman is appointed by the Prime Minister on the recommendations of the industry to the Government Hence, both of the given statements are correct