Industrial Sector (Part – II)

Total Questions: 60

31. Which of the following is a problem of small scale industries? [U.P.P.C.S. (Pre) 1991]

Correct Answer: (d) All of the above
Solution:All of the problems mentioned in the question are hurdles of small scale industries (SSIs). Some other hurdles of the SSIs are: Lack of Latest Technology, Shortage of Power, Labour Problem, Lack of Managerial Skills, Poor Quality, Problem of Industrial Sickness, Production Problems, etc. Following are the characteristics of Small scale industries in India:
1. Small scale industries generally have a single ownership, which means it either has a sole proprietorship structure or a partnership.
2. The management of the small scale industries rests with the owners and therefore, the owner plays an active role in the day to day functions of the business.
3. Small scale industries are very much labor intensive, hence there is limited use of technology.
4. Small scale industries are flexible and adaptable to a changing business environment, unlike the large industries.
5. Small scale industries work in a restricted area which makes them able to meet local and regional requirements.
6. Small scale industries use resources that are local and readily available, which helps the economy fully utilise the natural resources and bear minimum wastage.

32. Which one of the following is not the problem of Small Scale Industries (SSIs)? [U.P.P.C.S. (Pre) 2008]

Correct Answer: (d) Strikes and lockouts
Solution:Strikes and lockouts are the main problem of the large scale industries. Strikes and lockouts does not affect small scale industries, Remaining three are problems of the small scale industries. The main problem faced by the small scale units is that of the paucity of working capital. The working capital made available to them in most of the cases is inadequate, there has been delay in sanction and the rate of interest charged is very high.

33. Arrange the following Committees formed for small scale sector in a chronological order and select the correct answer from the codes given below: [U.P.P.C.S. (Pre) 2019]

I. Nayak Committee

II. Abid Hussain Committee

III. S.S. Kohli Committee

IV. Karve Committee

Codes:

Correct Answer: (c) IV, II, I, III
Solution:
CommitteeFormation (Year)
I. Nayak Committee1961
II. Abid Hussain Committee1995
III. S.S. Kohli Committee2000
IV. Karve Committee1955

Hence, the correct chronological order of these committee for small scale sector is IV, I, II, III  which is not given in any of the options. UPPSC has given option (c) as the right answer in the key sheet which is wrong.

34. Nayak committee is related: [Jharkhand P.C.S. (Pre) 2003]

Correct Answer: (b) to small industries
Solution:The Reserve Bank of India constituted on 9 December 1991, a Committee under the Chairmanship of P.R. Nayak, to examine the difficulties confronting the small scale industries (SSIs) in the country in the matter of securing finance. Nayak Committee submitted its report in September, 1992. Another committee under the chairmanship of P.J. Nayak was set up by the RBI in January, 2014 to review the governance of the board of banks in India.

Following are the characteristics of Small scale industries in India:
1. Small scale industries generally have a single ownership, which means it either has a sole proprietorship structure or a partnership.
2. The management of the small scale industries rests with the owners and therefore, the owner plays an active role in the day to day functions of the business.
3. Small scale industries are very much labor intensive, hence there is limited use of technology.
4. Small scale industries are flexible and adaptable to a changing business environment, unlike the large industries.
5. Small scale industries work in a restricted area which makes them able to meet local and regional requirements.
6. Small scale industries use resources that are local and readily available, which helps the economy fully utilise the natural resources and bear minimum wastage.

35. Which one of the following committees recommended the abolition of reservation of items for the small scale sector in industry? [I.A.S. (Pre) 2002. U.P.P.C.S. (Pre) 2006]

Correct Answer: (a) Abid Hussian Committee
Solution:'Expert Committee on Small Enterprises' was constituted by the Ministry of Industry, Govt. of India in 1995 under the chairmanship of Abid Hussain. Abid Hussain Committee has recommended for total abolition of the reservation of items for the small scale industries, Committee's Report on Small Scale Industries (1997) have been regarded as milestones in India's economic reforms.

Following are the characteristics of Small scale industries in India:
1. Small scale industries generally have a single ownership, which means it either has a sole proprietorship structure or a partnership.
2. The management of the small scale industries rests with the owners and therefore, the owner plays an active role in the day to day functions of the business.
3. Small scale industries are very much labor intensive, hence there is limited use of technology.
4. Small scale industries are flexible and adaptable to a changing business environment, unlike the large industries.
5. Small scale industries work in a restricted area which makes them able to meet local and regional requirements.
6. Small scale industries use resources that are local and readily available, which helps the economy fully utilise the natural resources and bear minimum wastage.

36. Abid Hussain Committee was related to : [U.P.P.C.S. (Mains) 2006]

Correct Answer: (b) Small and medium industries
Solution:Expert Committee on Small Enterprises' was constituted by the Ministry of Industry, Govt. of India in 1995 under the chairmanship of Abid Hussain. Abid Hussain Committee has recommended for total abolition of the reservation of items for the small scale industries, Committee's Report on Small Scale Industries (1997) have been regarded as milestones in India's economic reforms.

37. The contribution of India's small scale to the gross turnover in the manufacturing sector since 1992 has been of the order of: [I.A.S. (Pre) 1997]

Correct Answer: (a) 40%
Solution:As per the question period, the contribution of small scale sector to the country's gross turnover in the manufacturing was about 40%. The share of MSME manufacturing gross value added (GVA) in total manufacturing GVA of India rose to 40.83% in 2021-22 from 40.3% in 2020-21.                                        Following are the roles of small scale industries in the Indian Economy
1. They are the major sources of employment for the people living in rural areas and therefore, play a vital role in generating employment in an economy.
2. Small scale industries account for almost 40% of the total goods and services in India hence, is a very important contributor to the economy.
3. Small scale industries help in promoting the Make in India initiative which helps in increasing demand for local made products.
4. Majority of the export materials are provided to the Indian companies from the small scale industries. It is estimated that around 50% of all the material exported are produced from such industries.

38. Which sector got high rate of growth in its cooperative units? [U.P.P.C.S. (Mains) 2007]

Correct Answer: (b) Cotton textile
Solution:Cotton cloth industry has got a high growth rate in its coop- erative units. From 1999-2000 to 2005-06, cotton cloth industry has registered a year-on-year growth rate of 14.8%. 89.                                                                              Nearly two-thirds of cotton production in India comes from the states of Maharashtra, Gujarat, Andhra Pradesh, and Telangana - collectively known as the Cotton Basket of India.
  • Within the country, Maharashtra has the highest area under cultivation, at 41.2 lakh ha, followed by Gujarat at 27.1 lakhs and Telangana at 17.9 lakh.
  • Together, these three states account for 72% of the total cotton acreage in the country.
  • Approximately 62% of India's cotton is produced in rainfed areas, and 38% is on irrigated lands.
  • India grows all four known species of cultivated cotton.
  • The cotton industry in India leans towards apparel exports, contributing approximately 51% to overall apparel exports. Approximately 74% of the apparel exported from India is made of cotton.

39. In India, maximum number of workers are employed in: [M.P.P.C.S. (Pre) 1998]

Correct Answer: (b) Textile Industry
Solution:The textile industry in India is the 2nd largest employer in the country (after the agriculture sector), providing direct employment to about 45 million people and indirect employment to about 60 million people. The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour.                India's Textile Journey: From Fibre to Fabric
Cotton Production and Employment: India is the second-largest cotton producer globally, contributing 24% of global
production. Cotton farming involves around 60 lakh farmers, primarily in Gujarat, Maharashtra, and Telangana. The cotton textile value chain, from fibre processing to garment manufacturing, employs over 4.5 crore people.
Man-Made Fibre (MMF) Industry: India is also the second-largest producer of MMF, with Reliance Industries leading in
polyester and Grasim Industries being the sole domestic producer of viscose. However, MMF consumption in India remains low at 3.1 kg per capita, compared to 12 kg in China and 22.5 kg in North America. Overall fibre consumption, including natural and synthetic fibres, is 5.5 kg per capita, below the global average of 11.2 kg.
MSME Clusters and Specialisations: Around 80% of India's textile value chain operates within MSME clusters, each
specializing in different textiles:
Bhiwandi (Maharashtra) - Fabric production
Tiruppur (Tamil Nadu) - T-shirts and undergarments
Surat (Gujarat) - Polyester and nylon fabrics
Ludhiana (Punjab) - Woolen garments.

40. Which of the following industries provides the maximum employment in India? [Chhattisgarh P.C.S. (Pre) 2013]

Correct Answer: (e) Textiles
Solution:The textile industry in India is the 2nd largest employer in the country (after the agriculture sector), providing direct employment to about 45 million people and indirect employment to about 60 million people. The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour.

India's Textile Journey: From Fibre to Fabric
Cotton Production and Employment: India is the second-largest cotton producer globally, contributing 24% of global
production. Cotton farming involves around 60 lakh farmers, primarily in Gujarat, Maharashtra, and Telangana. The cotton textile value chain, from fibre processing to garment manufacturing, employs over 4.5 crore people.
Man-Made Fibre (MMF) Industry: India is also the second-largest producer of MMF, with Reliance Industries leading in
polyester and Grasim Industries being the sole domestic producer of viscose. However, MMF consumption in India remains low at 3.1 kg per capita, compared to 12 kg in China and 22.5 kg in North America. Overall fibre consumption, including natural and synthetic fibres, is 5.5 kg per capita, below the global average of 11.2 kg.
MSME Clusters and Specialisations: Around 80% of India's textile value chain operates within MSME clusters, each
specializing in different textiles:
Bhiwandi (Maharashtra) - Fabric production
Tiruppur (Tamil Nadu) - T-shirts and undergarments
Surat (Gujarat) - Polyester and nylon fabrics
Ludhiana (Punjab) - Woolen garments.