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Industrial Policies, Public Sector and MSMEs
Practice indian-industry with 20 free MCQ questions covering economics. Detailed explanations in English and Hindi, perfect for UPSC, SSC, and competitive exam preparation.
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Industrial Policies, Public Sector and MSMEs20:00
indian-industry — Answer Key & Explanations (20 Questions)
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Attempt the quiz above first, then review every question with its correct answer and a short explanation below.
Q1.The New Industrial Policy of 1991 abolished industrial licensing for:
- A.most industries, except a short list✓ Correct Answer
- B.all industries without exception
- C.only the agricultural sector
- D.only the textile industry
Explanation: The 1991 policy dismantled the "licence raj" for most industries and opened the economy to private and foreign investment.
Q2.The Tata Iron and Steel Company (TISCO) was set up in 1907 at:
- A.Bhilai
- B.Rourkela
- C.Durgapur
- D.Jamshedpur✓ Correct Answer
Explanation: TISCO was founded by Jamsetji Tata's family at Sakchi, later renamed Jamshedpur.
Q3.The "Make in India" initiative was launched in:
- A.2005
- B.2010
- C.2018
- D.2014✓ Correct Answer
Explanation: It was launched on 25 September 2014 to encourage manufacturing in India.
Q4.The "Startup India" initiative was launched in:
- A.2008
- B.2012
- C.2020
- D.2016✓ Correct Answer
Explanation: Startup India was launched on 16 January 2016 to promote new businesses.
Q5.Which city is known as the "Cottonopolis" of India for its cotton textile mills?
- A.Kolkata
- B.Chennai
- C.Mumbai✓ Correct Answer
- D.Kanpur
Explanation: Mumbai had the largest concentration of cotton mills and gave India its first modern cotton mill in 1854.
Q6.Which State has the largest concentration of jute mills, along the Hooghly river?
- A.Punjab
- B.Gujarat
- C.West Bengal✓ Correct Answer
- D.Rajasthan
Explanation: West Bengal accounts for most of India's jute mills.
Q7.The first Industrial Policy Resolution of independent India was announced in:
- A.1956
- B.1969
- C.1977
- D.1948✓ Correct Answer
Explanation: The 1948 resolution laid out a mixed economy with a public sector role for key industries.
Q8.The Industrial Policy Resolution of 1956 is often called the:
- A."economic constitution of India"✓ Correct Answer
- B."Magna Carta of industry"
- C."Charter of free trade"
- D."Licence abolition act"
Explanation: The 1956 resolution set the framework of the mixed economy, dividing industries into three schedules.
Q9.The Steel Authority of India Limited (SAIL) was established in:
- A.1947
- B.1973✓ Correct Answer
- C.1956
- D.1991
Explanation: SAIL was set up in January 1973 to manage the major public sector steel plants.
Q10.The Micro, Small and Medium Enterprises Development (MSMED) Act was passed in:
- A.2006✓ Correct Answer
- B.1991
- C.1999
- D.2014
Explanation: The MSMED Act, 2006 defines micro, small and medium enterprises and promotes their development.
Q11.The Small Industries Development Bank of India (SIDBI) was set up in:
- A.1964
- B.1982
- C.1990✓ Correct Answer
- D.2000
Explanation: SIDBI is the principal financial institution for promoting and financing MSMEs.
Q12.Which is the highest category of Central Public Sector Enterprises (CPSEs) in terms of financial autonomy?
- A.Navratna
- B.Miniratna
- C.Maharatna✓ Correct Answer
- D.Schedule A
Explanation: Maharatna CPSEs have greater powers to invest and take decisions without government approval.
Q13.Coal India Limited was formed in:
- A.1956
- B.1975✓ Correct Answer
- C.1964
- D.1991
Explanation: Coal India was formed in 1975 after coal mines were nationalised in 1972-73.
Q14.India's first modern cotton textile mill was set up in Bombay in:
- A.1818
- B.1875
- C.1854✓ Correct Answer
- D.1907
Explanation: Cowasji Davar started the first cotton mill in Bombay in 1854.
Q15.India's first jute mill was set up at Rishra near Calcutta in:
- A.1818
- B.1855✓ Correct Answer
- C.1907
- D.1950
Explanation: The first jute mill began in Rishra on the Hooghly in 1855.
Q16.The Industrial Development Bank of India (IDBI) was established in:
- A.1964✓ Correct Answer
- B.1948
- C.1982
- D.1990
Explanation: IDBI was set up in 1964 as the apex institution for industrial finance.
Q17.The Industrial Policy Resolution of 1956 divided industries into how many schedules?
- A.Two
- B.Three✓ Correct Answer
- C.Four
- D.Five
Explanation: Schedule A for state monopoly, Schedule B for mixed, Schedule C for private sector.
Q18.The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 was replaced by the:
- A.Companies Act, 1956
- B.FEMA, 1999
- C.SEBI Act, 1992
- D.Competition Act, 2002✓ Correct Answer
Explanation: The Competition Act, 2002 led to the Competition Commission of India (CCI).
Q19.The Bhilai Steel Plant was set up with the technical help of:
- A.Germany
- B.the USSR✓ Correct Answer
- C.the United Kingdom
- D.the United States
Explanation: Bhilai was built with Soviet help, Rourkela with German help, and Durgapur with British help.
Q20.Rourkela Steel Plant was set up with the collaboration of:
- A.West Germany✓ Correct Answer
- B.the USSR
- C.the United Kingdom
- D.Japan
Explanation: Rourkela in Odisha was built under the Second Five-Year Plan with German collaboration.