Q51. The PM Gati Shakti National Master Plan primarily aims to achieve which of the following objectives?
Industrial Growth, Policy Reforms and LPG: RAS Prelims MCQs
91 RAS Prelims MCQs on industrial growth, policy reforms and the LPG reforms of 1991 cover the Industrial Policy Resolutions, the licensing system, the 1991 balance of payments crisis, privatisation and disinvestment. The MSME definition and Make in India are asked as facts and statements, and the explanations tie each policy to its year.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 51–60 of 91 questions
Q52. Read the following statements regarding the institutional framework of Industrial Corridors in India:
I. The National Industrial Corridor Development and Implementation Trust (NICDIT) is the apex body.
II. NICDIT operates under the Department for Promotion of Industry and Internal Trade (DPIIT).
III. Only greenfield industrial nodes are developed under this framework.
IV. State governments provide land as their equity contribution in the Special Purpose Vehicles (SPVs).
Which of the combinations given above is correct?
I. The National Industrial Corridor Development and Implementation Trust (NICDIT) is the apex body.
II. NICDIT operates under the Department for Promotion of Industry and Internal Trade (DPIIT).
III. Only greenfield industrial nodes are developed under this framework.
IV. State governments provide land as their equity contribution in the Special Purpose Vehicles (SPVs).
Which of the combinations given above is correct?
Explanation
The National Industrial Corridor Development and Implementation Trust is the apex body overseeing industrial corridors under the Department for Promotion of Industry and Internal Trade. The framework involves a partnership where state governments provide land as their equity contribution in Special Purpose Vehicles. While greenfield nodes are a major focus, the framework is not strictly limited to them, as it aims for development.
Q53. What is the primary purpose of developing ‘Investment Regions’ and ‘Industrial Areas’ along the industrial corridors?
Explanation
The development of Investment Regions and Industrial Areas along industrial corridors is designed to create self-sustained industrial townships. These areas are equipped with world-class infrastructure, high-speed connectivity, and modern utilities to attract both domestic and foreign investment. The goal is to provide a comprehensive ecosystem where manufacturing units can operate efficiently, supported by nearby residential, commercial, and social amenities, fostering holistic development.
Q54. Which two major nodes in Rajasthan are being developed in the first phase of the Delhi- Mumbai Industrial Corridor (DMIC) project?
Explanation
In the first phase of the Delhi-Mumbai Industrial Corridor project in Rajasthan, two major nodes have been prioritized for development. These are the Khushkhera-Bhiwadi-Neemrana Investment Region and the Jodhpur-Pali-Marwar Industrial Area. These nodes are strategically located to leverage the freight corridor’s connectivity, aiming to become major manufacturing and logistics hubs that attract significant private investment and drive industrial growth within the state.
Q55. Identify the correct pair regarding the Startup India initiative.
Explanation
The Startup India initiative includes several financial and support mechanisms. The Fund of Funds for Startups is a key component, which is managed by the Small Industries Development Bank of India to provide capital to venture capital funds. Other schemes like the Startup India Seed Fund provide early-stage funding. The MAARG portal is a mentorship platform, highlighting the initiative’s focus on innovation.
Q56. Match List I with List II and select the correct answer.
| Startup Terminology | Meaning |
|---|---|
| A. Incubator | i. Funding a business using personal finances or revenue |
| B. Angel Investor | ii. Institutional financing for early-stage, high-potential companies |
| C. Bootstrapping | iii. High net-worth individual providing capital for a business start-up |
| D. Venture Capital | iv. Organization helping startups develop by providing services and space |
Explanation
The startup ecosystem is supported by various funding and development models. Incubators are organizations that help startups grow by providing essential services and workspace. Angel investors are high net-worth individuals who provide initial capital. Bootstrapping refers to building a business using only personal savings or initial revenue. Venture capital involves institutional funding provided to early-stage companies that demonstrate high potential for growth.
Q57. According to the DPIIT definition, an entity shall be considered a ‘Startup’ in India up to how many years from the date of its incorporation/ registration?
Explanation
According to the guidelines set by the Department for Promotion of Industry and Internal Trade, an entity is considered a Startup for up to ten years from its date of incorporation or registration. This extended period allows young companies to benefit from various government incentives, tax exemptions, and simplified regulatory compliances during their most critical stages of growth, innovation, and scaling up.
Q58. Which of the following represents the correct order of the top three sectors attracting the highest cumulative FDI equity inflows in India between April 2000 and recent years?
Explanation
Since the liberalisation of the Indian economy, certain sectors have consistently attracted the largest shares of Foreign Direct Investment. The services sector, which encompasses financial, banking, insurance, and non-financial business services, has historically been the top recipient. It is followed by the computer software and hardware sector and the telecommunications sector. These three areas represent the core drivers of India’s global integration.
Q59. The Ease of Doing Business (EoDB) index, which evaluated business regulations across countries, was published annually by which international organization before its discontinuation?
Explanation
The Ease of Doing Business index was a prominent annual ranking published by the World Bank Group. It evaluated the regulatory environment for businesses across different countries based on several standardized parameters. The index played a significant role in influencing national policy reforms as countries competed to improve their rankings. However, the World Bank discontinued the report in 2021 following internal audits regarding data.
Q60. Which of the following was NOT a parameter used to calculate the Ease of Doing Business score?
Explanation
The Ease of Doing Business index utilized ten specific parameters to measure the regulatory burden on small and medium-sized domestic firms. These included starting a business, getting electricity, and dealing with construction permits, along with other factors like paying taxes and enforcing contracts. While political corruption is a significant economic concern, it was not one of the direct metrics used to calculate the score.Answer key for these questions
| Q | Correct answer |
|---|---|
| 51 | (b) Synchronized planning of multimodal connectivity infrastructure. |
| 52 | (d) I, II and IV |
| 53 | (a) Creating self-sustained industrial townships with world-class infrastructure to attract investment. |
| 54 | (c) Khushkhera-Bhiwadi-Neemrana and Jodhpur-Pali-Marwar |
| 55 | (a) Fund of Funds for Startups (FFS) - Managed by SIDBI. |
| 56 | (a) A-iv, B-iii, C-i, D-ii |
| 57 | (c) 10 years |
| 58 | (d) Services Sector, Computer Software & Hardware, Telecommunications |
| 59 | (a) World Bank Group |
| 60 | (b) Controlling Political Corruption |
Key facts from Industrial Growth, Policy Reforms and LPG
- The Industrial Policy Resolution of 1948 first introduced the mixed economy; the 1956 resolution divided industries into three schedules, with Schedule A reserved for the State.
- The Industries (Development and Regulation) Act, 1951 governed industrial licensing, known as the Licence Raj; the Dutt Committee of 1967 inquired into it.
- The IMF and the World Bank gave India structural adjustment loans in 1991.
- Compulsory licensing today remains for some industries, such as electronic aerospace and defence equipment.
- Transferring ownership and control of a public sector enterprise to the private sector is privatisation; DIPAM manages government investment and public asset management.
- The MSME definition of 2020 uses investment in plant and machinery and annual turnover; Make in India was launched in 2014.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Industrial Growth, Policy Reforms and LPG?
This page has 91 practice MCQs on Industrial Growth, Policy Reforms and LPG (Indian Economy). Each has the correct answer, and most have an explanation.
What did the Industrial Policy Resolution of 1956 do?
It classified industries into three categories: Schedule A for the exclusive responsibility of the State, Schedule B for the State and private sector together, and Schedule C for the private sector. It is called the Economic Constitution of India.
What is privatisation?
The transfer of ownership, management and control of a public sector enterprise to the private sector. It differs from partial disinvestment, where the Government sells only a part of its shares and keeps control.
Which Act governed industrial licensing in India?
The Industries (Development and Regulation) Act, 1951. It required industrial units to get a licence from the Government, and the system came to be known as the Licence Raj until it was dismantled in 1991.