Industrial Sector (Part – I)

Total Questions: 50

41. What is the correct chronological sequence of the following enactments in India? [U.P.P.C.S. (Mains) 2017]

1. MRTP Act

2. Industries (Development and Regulation) Act

3. FERA

4. Minimum Wages Act

Select the correct answer using the codes given below:
Codes:

(a) 2, 3, 4, 1
(b) 2, 3, 1, 4
(c) 4, 2, 1, 3
(d) 4, 2, 3, 1

Correct Answer: (c) 4, 2, 1, 3

Solution:

Acts	Years
Minimum Wages Act	1948
Industries (Development and Regulation) Act	1951
MRTP (Monopolies and Restrictive Trade Practices ) Act	1969
FERA (Foreign Exchange Regulation Act)	1973

Hence, the correct chronological sequence is given in the option (c).

42. Consider the following statements: [U.P.P.C.S. (Mains) 2004]

Assertion (A): In the past few years, there is a lot of merger and acquisition going on in Indian Industrial sector,

Reason (R): There has been considerable dilution in MRTP Act provisions.

Select Correct answer from the code given below:
Code:

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true, but (R) is not a correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)

Solution:Indian enterprises were subjected to strict control regime before 1990s. The reforms process initiated by the Government since 1991, has influenced the functioning and governance of Indian enterprises which has resulted in adoption of different growth and expansion strategies by the corporate enterprises. In that process, merger and acquisitions (M&As) have become a common phenomenon. The functional importance of M&As has been undergoing a sea change since liberalization in India. The MRTP (Monopolies and Restrictive Trade Practices) Act, 1969 and other legislations have been amended paving way for large business groups and foreign companies to resort to the M&A route for growth. Further, the SEBI (Substantial Acquisition of Shares and Take over) Regulations, 1994 and 1997, have been notified. The decision of the Government to allow companies to buy back their shares, all these developments, have influenced the market for corporate control in India.

Moreover, the MRTP Act has been replaced by the competition Act, 2002 on the recommendation of Raghavan Committee, which is much more diluted than the MRTP Act with reference to M&As.

43. In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? [I.A.S. (Pre) 2022]

(a) Central Statistics Office
(b) Department for Promotion of Industry and Internal Trade
(c) Labour Bureau
(d) National Technical Manpower Information System

Correct Answer: (c) Labour Bureau

Solution:Labour Bureau, a premium organisation established in 1920, is responsible for collection, compilation and publication of labour statistics and other information relating to labour such as employment and unemployment, wages, earnings, industrial relations, working conditions, etc. Labour Bureau has been bringing out Statistics on 'Industrial Disputes, Closures, Retrenchments and Lay-offs in India' based on the voluntary returns received every month from the Labour Departments of the States and Union Territories and the Regional Labour Commissioners (Central). It also compiles and publishes the Consumer Price Index Numbers for industrial and agricultural/rural workers.

44. The Trade Disputes Act of 1929 provided for: [I.A.S. (Pre) 2017]

(a) the participation of workers in the management of Industries
(b) arbitrary powers to the management to quell industrial disputes
(c) an intervention by the British Court in the event of a trade dispute
(d) a system of tribunals and a ban on strikes

Correct Answer: (d) a system of tribunals and a ban on strikes

Solution:The Trade Disputes Act of 1929 was codified to settle industrial disputes in British India. The main object of the Act was to make provisions for establishment of Courts of Inquiry and Boards of Conciliation with a view to investigate and settle trade disputes. The Act prohibited strikes or lock-out without notice in public utility services. key provisions of the Trade Disputes Act of 1929:
Establishment of Tribunals: The Act made provisions for the establishment of Courts of Inquiry and Boards of Conciliation. This created a system of tribunals to investigate and settle industrial disputes.
Restrictions on Strikes and Lockouts: Required a 15-day written notice before initiating strikes or lockouts in
public utility services (e.g., posts, railways, water, and electricity). Declared any strike or lockout illegal if it pursued objectives other than the furtherance of a trade dispute within the trade or industry. Imposed significant restrictions on the ability of workers to strike, especially without prior notice.
Focus on Dispute Resolution: The main object of the Act was to provide a formal mechanism for the resolution of industrial disputes. Aimed to ensure continuity of public utility

45. Consider the following statements: [I.A.S. (Pre) 2019]

As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018

1. If rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers

2. no notice of termination of employment shall be necessary in the case of temporary workman

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (c) Both 1 and 2

Solution:As per the Industrial Employment (Standing Orders) Central (Amendment) Rules 2018, a fixed-term employment workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period. It also states that no workman employed on fixed-term employment basis as a result of non-renewal of contract or employment or on its expiry shall be entitled to any notice or pay in lieu thereof, if his services are terminated. Hence, fixed-term employment for all sectors will make it easier for firms/ companies to hire-and-fire workers along with reducing the role of middlemen.

According to the aforesaid Rules, no notice of termination of employment shall be necessary in the case of temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen.

Therefore both of the given statements are correct.

46. Consider the following statements: [I.A.S. (Pre) 2017]

1. The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions.

2. N.M. Lokhande was a pioneer in organizing the labour movement in British India.

Which of the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (b) 2 only

Solution:The Factories Act, 1881 was passed with a view to improve working conditions of labour in British India. The Act prohibited the employment of children under the age of seven, limited the number of working hours for children below the age of twelve and required the proper fencing of dangerous machinery. It had not provisions of fixing the wages or formation of trade unions. Hence, statement 1 is incorrect. Statement 2 is correct as Narayan Meghaji Lokhande was a pioneer in organizing the labour movement in British India. He is considered as father of trade union movement in lodia. He is remembered not only for ameliorating the working conditions of textile mill-hands in the 19th century but also for his courageous initiatives on caste and communal issues.

47. Which of the following labour related Acts have been amalgamated into the 'Code Wages, 2019'? [U.P.P.C.S. (Pre) 2021]

I. Minimum Wages Act

II. Payment of Bonus Act

III. The Contract Labour Act

IV. Equal Remuneration Act

Select the correct answer using the codes given below.
Codes:

(a) I and II only
(b) II and III only
(c) I, II and IV only
(d) I, II, III and IV

Correct Answer: (c) I, II and IV only

Solution:The Code of Wages, 2019 is an Act of the Parliament of India that consolidates the provisions of four labour laws concerning wage and bonus payments and makes universal the provisions for minimum wages and timely payment of wages for all workers in India. The Code repeals and replaces the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976, The Contract Labour Act, 1970 is not subsumed in it.

48. With reference to casual workers employed in India, consider the following statements: [I.A.S. (Pre) 2021]

1. All casual workers are entitled for Employen Provident Fund coverage.

2. All casual workers are entitled for regular working hours and overtime payment.

3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Correct Answer: (d) 1, 2 and 3

Solution:A casual worker is a worker on a temporary employment contract with generally limited entitlements to benefits and little or no security of employment. In January 2020, Supreme Court in Pawan Hans Ltd. & Ors. Vs Aviation Karmachari Sanghatana Case, held that employees (including casual workers) who draw wages or salaries directly or indirectly from a company are entitled to provident fund benefits un der the Employees Provident Fund (EPF) and Miscellaneous Provisions Act. Hence, statement 1 is correct.

As per Code on Wages 2019, the Central or State Government may fix the number of hours that constitute a normal working day. In case employees (including casual workers)

work in excess of a normal working day, they will be entitled to overtime wages, which must be at least twice the normal rate of wages. Hence, statement 2 is correct. As per the Payment of Wages (Amendment) Act 2017, the

appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account. Hence, Statement 3 is also correct.

Note: UPSC has given answer (b) for this question in its official answer key.

49. With effect from 1 April, 2017 the minimum wages for unskilled labour in Uttar Pradesh has been fixed at: [U.P.P.C.S. (Pre) 2017]

(a) Rs. 7000 per month
(b) Rs. 7400 per month
(c) Rs. 7800 per month
(d) Rs. 8200 per month

Correct Answer: (b) Rs. 7400 per month

Solution:As per the question period, option (b) was the correct answer With effect from 1 April, 2024 the minimum wages for unskilled. semi-skilled and skilled labour in Uttar Pradesh (for the period of 01.04.2024 to 30.09.2024) have been fixed at Rs. 10648, Rs. 11713 and Rs. 13120 per month respectively. The Indian parliament enacted the Minimum Wage Act in 1948 to set minimum wages for specific 'scheduled employment' categories across the country. These are the minimum wages that employers must pay to workers. They apply to both skilled and unskilled workers.
'Scheduled employment' refers to jobs listed under the Minimum Wages Act or any process that is part of such employment. However, if the industry employs fewer than 1,000 workers in that state, the fixed minimum wage does not apply.

50. The share of industry in GDP of India in 2006-07 was: [U.P.P.C.S. (Mains) 2006*]

(a) Less than 20 percent
(b) Between 20-25 percent
(c) Between 25-30 percent
(d) Between 35-40 percent

Correct Answer: (c) Between 25-30 percent

Solution:The share of industry in GDP of India in the question period was between 25 to 30 percent. It is notable that industrial sector's share in India's GDP was at the level of 16.6% in 1950-51. As per Economic Survey 2022-23, industry holds a prominent position in the Indian economy, accounting for 31 percent of GDP, on average during 2011-12 and 2020-21. According to Economic Survey 2021-22 and 2022-23, the share of industry in India's GVA (Gross Value Added) remained in the range of 25-30 percent. As per the Second Advance Estimates (2023-24) and First Revised Estimates (2022-23) of National Income (released on 29 February, 2024), the share of industry (Mining & quarrying, manufacturing, electricity, gas, water supply and other utility services and construction) in GVA at current basic prices in recent years is as follows:

Year	Share of Industry in GVA (%)
2018-19	29.1
2019-20	26.8
2020-21 (3rd R.E.)	27.4
2021-22(2nd R.E.)	28.9
2022-23 (1st R.E.)	27.6
2023-24(2nd A.E)	27.6

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