Industry: UPSC Previous Year Questions (Indian Economy)
2 previous year UPSC Prelims questions on Industry (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–2 of 2 questions
UPSC 2001Indian Economy · Industry
Q1. Consider the following factors regarding an industry 1. Capital investment 2. Business turnover 3. Labour force 4. Power consumption Which of these determine the nature and size of the industry?
Explanation
The nature and size of an industry are determined by:
Capital investment in an industry is a significant determinant of its size and the type of production it can undertake. Higher capital investment often implies larger-scale operations and the ability to adopt more advanced technologies. Business turnover represents the total value of sales, is a direct measure of the scale of economic activity within the industry. A higher turnover indicates a larger industry. Power consumption is a good indicator of the scale of operations and the type of industry. Energy-intensive industries, like manufacturing or heavy industries, will consume more power. While the number of workers can indicate an industry’s labor intensity, it does not always determine the overall size. Some industries, like IT or pharmaceuticals, have high turnover and capital investment but a relatively smaller workforce.
UPSC 2001Indian Economy · Industry
Q2. With reference to Power Sector in India, consider the following statements: 1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana 2. 100 percent Foreign Direct Investment in power is allowed without upper limit 3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 States Which of these statements is/are correct?
Explanation
Statement 1 is correct: Rural electrification was identified as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana, a flagship program aimed at improving rural infrastructure, including power supply, education, and health services. As per government records during this period, rural electrification was prioritized to reduce regional imbalances.
Statement 2 is correct: Since the economic reforms of 1991, India allowed 100% Foreign Direct Investment (FDI) in the power sector without any upper limit. This was done to attract foreign capital and technology to boost power generation and infrastructure.
Statement 3 is incorrect: By 2001, the Union Ministry of Power had signed Memoranda of Understanding (MoUs) with more than 14 States. The exact number was higher, as the government was actively collaborating with multiple states to improve power generation and distribution.
Answer key for these questions
Q
UPSC year
Correct answer
1
2001
(b) 1, 2 and 4
2
2001
(b) 1 and 2
Frequently asked questions
How many previous year UPSC questions are there on Industry?
This page covers 2 previous year UPSC Prelims GS Paper-I questions on Industry (Indian Economy), asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Industry?
Questions on Industry (Indian Economy) are available for 19 years, from 1996 to 2025. Use the Year filter to practise a single paper.
