Industrial Sector (Part – IV)

Total Questions: 50

1. In India, liberal Industrial Policy was adopted in the year: [U.P.P.C.S. (Spl.) (Pre) 2008]

(a) 1948
(b) 1956
(c) 1985
(d) 1991

Correct Answer: (d) 1991

Solution:The long-awaited liberalized Industrial Policy was announced by the Government of India in 1991 in the midst of severe economic instability in the country. The objective of the policy was to raise efficiency and accelerate economic growth.

2. Assertion (A): Many industries in India have obtained ISO 9001 and ISO 9002 certification in the recent past. [U.P.P.C.S. (Pre) 1997]

Reason (R) : Therefore has been considerable liberalization in the licensing policy of the Government of India.

Code.

(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true and R is the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.

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

Solution:Bureau of Indian Standard (BIS) has certified many Indian industries with ISO-9001 and ISO-2002 which are based on international quality control standard. Licencing system has been liberalized for newly adopted industrial policy on July 24, 1991. Therefore reason and assertion both are correct but reason does not explain the assertion.

3. According to 1991 Industrial Policy, the number of industries for which licensing was necessary, were: [U.P.P.C.S. (Spl.) (Mains) 2004]

(a) 6
(b) 10
(c) 14
(d) 18

Correct Answer: (d) 18

Solution:New Industrial Policy, declared by the P.V. Narsimha Rao's Government on July 24, 1991 had abolished the requirement of license in all industries except 18 industries. This list was gradually reduced further. Presently, only four industries are under compulsory industrial licensing:

1. Electronic aerospace and defence equipment;

2 Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches;

3. Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

4. Specified hazardous chemicals i.e. (a) Hydrocyanic acid and its derivatives, (b) Phosgene and its derivatives and (c) Isocyanates and diisocyanates of hydrocarbon, not elsewhere specified (example methyl isocyanate).

Note: As per the Supreme Court Order of 1997 (and an Amendment of 2016), distillation and brewing of alcoholic drinks (potable alcohol) is now under the jurisdiction of States. In addition, certain industries are reserved exclusively for the Public Sector (presently, Atomic Energy and Railway Operations only come under this category). Presently, there are no items reserved for exclusively manufacture by Small Scale Sector.

4. The number of industries for which industrial licensing is required has now been reduced to: [I.A.S (Pre) 1997]

(a) 15
(b) 6
(c) 35
(d) 20

Correct Answer: (a) 15

Solution:As per the question period, option (a) was the correct answer. Presently, only four industries are under compulsory industrial licensing mainly on account of environmental safety and strategic considerations. New Industrial Policy, declared by the P.V. Narsimha Rao's Government on July 24, 1991 had abolished the requirement of license in all industries except 18 industries. This list was gradually reduced further. Presently, only four industries are under compulsory industrial licensing:

1. Electronic aerospace and defence equipment;

2 Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches;

3. Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

5. The policy of liberalization, privatization and globalization was announced as New Economic Policy by Prime Minister: [U.P.P.C.S. (Pre) 2013]

(a) Rajeev Gandhi
(b) Vishwanath Pratap Singh
(c) Narsimha Rao
(d) Atal Bihari Vajpayee

Correct Answer: (c) Narsimha Rao

Solution:New Economic Policy of Liberalization, Privatization and Globalization was announced by the then Prime Minister P.V. Narsimha Rao in 1991.

6. The Industrial Policy, 1991 was criticized on a number of points. Which of the following was not one of them? [Jharkhand P.C.S (Pre) 2013]

(a) Erratic industrial growth
(b) Threat from Foreign Competition
(c) Neglect of agriculture sector
(d) Misplaced faith in Foreign Investment

Correct Answer: (c) Neglect of agriculture sector

Solution:Industrial Policy, 1991 was criticized on various points. Some of them are as follows:

(i) Ambiguous Development Policy: In this context it was said that, there is no clear policy for weak industries.

(ii) Threat of global competition: In this context it was said that, Indian companies are compelled to compete with multinational corporations because of liberalization.

(iii) Limit of Foreign Investment: In this context, concessions and incentives given for promotion to foreign investment is being criticized.

Therefore option (c) is the correct answer.

7. Some time back, the Government of India, decided to delicense 'white goods' industry. 'White goods' include: [I.A.S (Pre) 1998]

(a) stainless steel and aluminium utensils
(b) milk and milk products
(c) items purchased for conspicuous consumption
(d) soaps, detergents and other mass consumption goods

Correct Answer: (c) items purchased for conspicuous consumption

Solution:White goods industry was delicensed by the Government of India in 1993. The white goods industry consists of home appliances such as air conditioners, refrigerators, washing machines and dryers, diswashers etc. Purchasing of white goods could be a means to show one's social status, especially when publicly displayed goods and services are too expensive for other members of a person's class. Sometimes, this type of consumption is typically associated with the specific purpose of displaying one's wealth. This is the reason why these articles are classified as the items bought for conspicuous consumption.

8. With reference to India, which one of the following statements is NOT correct? [I.A.S (Pre) 2003]

(a) IPCL is India's largest petrochemicals company.
(b) RIL is the largest private sector company in India.
(c) MTNL is listed in NYSE.
(d) BSNL is the first telecom service organization in India to launch a nationwide cellular service at one time.

Correct Answer: (a) IPCL is India's largest petrochemicals company.

Solution:As per the question period, statement of option (a) was incorrect as IPCL was the India's second largest petrochemicals company in the year 2002-03. IPCL merged with Reliance Industries Ltd. (RIL) in 2007. RIL is the largest company of India at present too.

MTNL was listed at the New York Stock Exchange (NYSE) in November, 2001. MTNL delisted its American Depository Shares (ADS) from the NYSE w.e.f. from 31 December, 2012. Hence, at present statement of option (c) is also incorrect. BSNL became the first telecom service provider in India to launch a nationwide cellular service at one time in year 2002.

9. Which of he following groups of goods is not included in FMCG (Fast Moving Consumer Goods)? [U.P.P.C.S. (Mains) 2012]

(a) Automobile (Car and Motor Cycle)
(b) Toiletries (Shampoo and Soap)
(c) Dairy Products (Milk and Cheese
(d) Bakery Products (Biscuits and Breads)

Correct Answer: (a) Automobile (Car and Motor Cycle)

Solution:Fast-moving consumer goods are products that sell quickly at relatively low cost. FMCGs are generally non-durable packaged consumer goods. FMCGs have low profit margins, but they account for more than half of all consumer spending. Beauty products and toiletries, dairy products and bakery products etc. included in FMCG, while automobiles (car and motor cycle) are not included in it. Automobile comes under the category of durable goods.

10. Match List-I with List-II and select the correct answer using the codes given below in the lists: [I.A.S (Pre) 1999]

List I (Industries)	List II (Industrial Centres)
A. Pearl fishing	1. Pune
B. Automobiles	2. Tuticorin
C. Shipbuilding	3. Pinjore
D. Engineering goods	4. Mormugao

Codes:

	A	B	C	D
(a)	2	1	4	3
(b)	2	1	3	4
(C)	1	2	4	3
(d)	1	2	3	4

Correct Answer: (a)

Solution:The correctly matched lists are as follows:

List I (Industries)	List II (Industrial Centres)
Pearl fishing	Tuticorin
Automobiles	Pune
Shipbuilding	Mormugao
Engineering goods	Pinjore

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