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Industry
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Q.1
WBCS Prelims 2012
Which is the most industrially advanced state in India ?
A. Maharashtra
B. Gujarat
C. Punjab
D. Tamil Nadu
Explanation
Why Correct: Maharashtra leads India in industrial output, manufacturing value addition, and factory count, with major hubs in Mumbai, Pune, and Nagpur.
Distractor Analysis: Gujarat ranks second with strong petrochemical and chemical industries. Tamil Nadu has a diversified base including automotive and textiles. Punjab has significant agro-based industries but lags in overall industrial advancement.
Takeaway: Maharashtra contributes over 15% to India's industrial output and houses the largest number of Special Economic Zones.
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Q.2
WBPSC Miscellaneous Prelims 2012
The petroleum price in India was completely deregulated according to the recommendations of which committee?
A. Kirit Parekh Committee
B. Y. K. Alagh Committee
C. Satish Chandra Committee
D. Rakesh Mohan Committee
Explanation
Why Correct: The Kirit Parekh Committee (2010) recommended deregulation of petroleum product prices, leading to the complete decontrol of petrol prices in June 2010 and diesel later.
Distractor Analysis: Y. K. Alagh committee dealt with agriculture price policy. Satish Chandra committee is not standard. Rakesh Mohan committee worked on financial sector reforms.
Takeaway: For price deregulation committees: Kirit Parekh – petroleum; Y. K. Alagh – agriculture; Rakesh Mohan – financial sector. Also, the Rangarajan committee (2005) earlier recommended partial deregulation.
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Q.3
WBCS prelims 2024
Which among the following is not Sunrise Sectors in India?
A. Food Processing
B. Textile
C. Artificial Intelligence (AI) and Information Technology (IT)
D. Space Technology
Explanation
Why Correct: Sunrise sectors are industries with high growth potential, driven by technological innovation, government support, and future demand. Textile is a traditional, mature industry in India with a long-established supply chain and market presence, making it a conventional sector rather than a sunrise one. The textile industry has been a cornerstone of Indian manufacturing for centuries and does not represent an emerging high-growth frontier.
Distractor Analysis: Food Processing is a sunrise sector due to rising urban demand, cold-chain infrastructure development, and government initiatives like the Pradhan Mantri Kisan Sampada Yojana. Artificial Intelligence and Information Technology represent a sunrise sector because of rapid digital transformation, cloud computing, and automation adoption across industries. Space Technology is a sunrise sector with the growth of private players like ISRO's commercial arm Antrix, startups like Skyroot and Agnikul, and the Space Policy 2023 opening the sector to private participation.
Takeaway: Other recognized sunrise sectors in India include renewable energy (solar and wind), electric vehicles, and biotechnology, all of which are characterized by high R&D intensity and strong policy push from the government.
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Q.4
WBCS prelims 2021
What is the limit of the Annual turnover for small enterprises ?
A. 5 crores to 50 crores rupees
B. less than 5 crores rupees
C. Between 75 to 150 crores rupees
D. Between 150 to 200 crores rupees
Explanation
Why Correct: Under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 (amended in 2020), a small enterprise is defined as one having an annual turnover of less than 5 crore rupees. Micro enterprises have turnover below 1 crore.
Distractor Analysis: 5 crores to 50 crores rupees is the turnover range for medium enterprises. Between 75 to 150 crores rupees and between 150 to 200 crores rupees exceed MSME turnover thresholds entirely.
Takeaway: MSME classification (composite criteria: investment and turnover) was revised in 2020: micro <Rs 1 cr and <Rs 1 cr investment; small <Rs 5 cr and <Rs 10 cr investment; medium <Rs 50 cr and <Rs 50 cr investment.
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Q.5
WBCS prelims 2021
When was the first Industrial Policy resolution taken ?
A. 1956
B. 1947
C. 1948
D. 1951-55
Explanation
Why Correct: India's first Industrial Policy Resolution (IPR) was announced on April 6, 1948, outlining the country's industrial development strategy post-independence.
Distractor Analysis: 1956 is the year of the second Industrial Policy Resolution, which expanded the role of the public sector and introduced the concept of reserved industries. 1947 is the year of independence, not a policy resolution. 1951-55 covers the First Five-Year Plan period but is not the year of the first IPR.
Takeaway: The Industrial Policy Resolution of 1948 preceded the 1956 policy and established the mixed economy approach, dividing industries into four categories: state monopoly, state-controlled, state-regulated, and private.
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Q.6
WBCS prelims 2017
The special Eonomic Zones Act was passed by the Indian Parliament in 2005 and the Act came into force in
A. 2006
B. 2009
C. 2014
D. 2016
Explanation
Why Correct: The Special Economic Zones Act, 2005 received presidential assent on June 23, 2005, and came into force on February 10, 2006.
Distractor Analysis: 2009 is the year the SEZ Rules were substantially amended to introduce minimum land requirements. 2014 is the year the SEZ (Amendment) Act was passed to bring in new provisions. 2016 is the year the SEZ (Amendment) Act was enacted to replace the 2005 Act's direct tax incentives with indirect ones.
Takeaway: The SEZ Act came into force in 2006, not the year it was passed (2005).
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Q.7
WBCS prelims 2011
Which of the following industries has shown a high rate of growth since the 1980’s ?
A. Capital goods industries
B. Intermediate goods industries
C. Consumer durable goods industries
D. Consumer non-durable goods industries
Explanation
Why Correct: Consumer durable goods industries (e.g., televisions, automobiles, refrigerators) grew rapidly since the 1980s due to rising incomes, urbanisation, and post-1991 liberalisation that expanded credit and consumer choice.
Distractor Analysis: Capital goods industries (machinery) grew at a modest pace, not high. Intermediate goods industries (steel, cement) grew steadily but not as fast as consumer durables. Consumer non-durable goods (food, beverages) grew at a slower, stable rate.
Takeaway: The 1980s and 1990s saw a consumer durables boom in India, driven by the expansion of the middle class and easy credit.
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Q.8
WBCS prelims 2009
At present, as per government rulings, the maximum area allowed for a Special Economic Zone (SEZ) is
A. 2000 hectares
B. 3000 hectares
C. 4000 hectares
D. 5000 hectares
Explanation
Why Correct: The SEZ Rules, 2006, set the maximum permissible area for a Special Economic Zone at 5000 hectares, making 5000 hectares the correct upper limit.
Distractor Analysis: 2000 hectares is not a central ceiling; some state-level policies may use it as a local cap, but it does not reflect the national rule. 3000 hectares has no basis in the SEZ Act, 2005, or the SEZ Rules, 2006. 4000 hectares falls below the actual statutory maximum of 5000 hectares.
Takeaway: The SEZ Rules, 2006, also prescribe minimum area requirements: 1000 hectares for multi-product SEZs, 100 hectares for sector-specific SEZs, and 50 hectares for free trade and warehousing zones.
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Q.9
WBCS prelims 2008
Industrial Licensing, was finally abolished (with a few exceptions) in the
A. Industrial Policy, 1970
B. Industrial Policy, 1980
C. Industrial Policy, 1991
D. Industrial Policy, 1995
Explanation
Why Correct: The Industrial Policy of 1991 abolished industrial licensing for all but 18 industries under the IDRA, 1951 Act.
Distractor Analysis: Industrial Policy 1970 focused on the Monopolies and Restrictive Trade Practices Act. Industrial Policy 1980 emphasized economic federalism and the role of the public sector. Industrial Policy 1995 did not introduce major licensing reforms.
Takeaway: The New Industrial Policy of 1991 was a landmark reform that dismantled the licence raj, limiting compulsory licensing to industries related to security, safety, and environmental concerns.
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Q.10
WBCS prelims 2007
________ is also called ‘Sunrise’ industry.
A. Copper
B. Plastic
C. Automobile
D. Jewellery
Explanation
Why Correct: The plastic industry is frequently termed a 'Sunrise' industry due to its rapid growth and immense potential in modern economies, driven by versatile applications across sectors.
Distractor Analysis: The copper industry is a traditional metal-based industry. The automobile industry is a mature manufacturing sector. The jewellery industry is a craft-based traditional sector.
Takeaway: Sunrise industries often include plastics, IT, biotechnology, and renewable energy; they are characterized by high growth rates and future-oriented demand.
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Q.11
WBCS prelims 2005
In the second industrial policy of 1956, industries were divided into
A. two classes
B. three classes
C. four classes
D. six classes
Explanation
Why Correct: The Industrial Policy Resolution of 1956 classified industries into three schedules: Schedule A (exclusive state monopoly), Schedule B (state-owned but private sector could supplement), and Schedule C (remaining industries open to private sector).
Distractor Analysis: The Industrial Policy Resolution of 1948 had four categories. The IPR 1991 abolished the licensing system for most industries. No classification ever had six classes.
Takeaway: IPR 1956 classification is also known as the 'Indian version of socialism' and remained in force until the 1991 reforms.
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Q.12
WBCS prelims 2004
The coal production of India during 2001-2002 was
A. 317 million tonnes
B. 300 million tonnes
C. 275 million tonnes
D. 267 million tonnes
Explanation
Why Correct: The original WBCS 2004 item treats 300 million tonnes as the intended answer for 2001-02. Historical coal-production series differ by scope and revision, so the figure should be read in the context of that paper rather than as a universally consistent statistical total.
Distractor Analysis: Reliable year-specific matches are not established for 317, 275, or 267 million tonnes, so no unsupported historical mapping is assigned to those distractors.
Takeaway: Coal statistics can differ depending on whether a series covers raw coal alone, includes lignite, or uses revised production data.
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Q.13
WBCS prelims 2002
India’s industrial recession in the nineties started in the year
A. 1996-97
B. 1995-96
C. 1994-95
D. 1998-99
Explanation
Why Correct: India's industrial recession began in 1996-97, with a significant slowdown in industrial growth following the post-reform boom.
Distractor Analysis: 1995-96 was a year of high growth. 1994-95 also saw robust industrial performance. 1998-99 witnessed continuation of the recession but it had started earlier.
Takeaway: The recession was triggered by tight monetary policy, falling demand, and infrastructure bottlenecks.
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Q.14
WBCS prelims 2002
A profit making industry becomes sick. The most important factor responsible for it among the following is (i) Poor work culture of the country (ii) Non-co-operation of a section of labour (iii) Lack of proper planning of the management (iv) Want of skilled labour
A. (iii)
B. (i) & (ii)
C. (iv)
D. (i) & (iv)
Explanation
Why Correct: Lack of proper planning by management is the most important internal factor causing sickness, even in a profit-making industry, as poor decisions can lead to inefficiency and losses.
Distractor Analysis: Poor work culture (i) is a broader environmental issue. Non-cooperation of labour (ii) may be a symptom of management issues. Want of skilled labour (iv) can be addressed if management plans properly.
Takeaway: Management inefficiency is often cited as the primary cause of industrial sickness in India, as per studies by the Board for Industrial and Financial Reconstruction (BIFR).
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