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Chapter:

60+ Industries, Infrastructure and Foreign Trade Solved MCQs

in Indian Economy

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Arts (BA) , Bachelor of Arts in Economics (BA Economics) , Union Public Service Commission (UPSC) .

Chapters

Take a Test
Chapter: Industries, Infrastructure and Foreign Trade
1.

Which Agriculture export item is second in case of India?

A. Marine product
B. Rice
C. Sugar
D. Oil cake
Answer» B. Rice
discuss
2.

The performance of which of the following industries is considered performance of the core industry? [RBI Grade B Officer 2011]

A. Garments
B. Leather
C. IT
D. Oil and Petroleum
Answer» D. Oil and Petroleum
discuss
3.

Which of the following agencies has the power to declare any industrial unit as a potentially sick unit? [CDS 2000]

A. BIFR
B. MRTPC
C. FICCI
D. IRBI
Answer» A. BIFR
discuss
4.

The most important small-scale industry in India is that of:

A. textiles
B. jute
C. jewellery
D. handloom
Answer» D. handloom
discuss
5.

UTI has been divided into two parts UTI-I and UTI-II. Which part has been kept under the control of the government?

A. UTI-I
B. UTI-II
C. Both the above
D. None of the above
Answer» A. UTI-I
discuss
6.

Which part of separated UTI is under SEBl's regulation?

A. UTI-I
B. UTI-II
C. Both the above
D. None of the above
Answer» B. UTI-II
discuss
7.

Which of the following is not sponsor of newly established UTI-II?

A. Punjab National Bank
B. General Insurance Corporation
C. Life Insurance Corporation of India
D. State Bank of India
Answer» B. General Insurance Corporation
discuss
8.

The largest importer country of Indian textile is :

A. Italy
B. Germany
C. Singapore
D. USA
Answer» D. USA
discuss
9.

Indian Railways revenue from:

A. passenger fare
B. freight
C. traffic tax
D. passenger tax
Answer» B. freight
discuss
10.

Which industry earns the second highest, net foreign exchange from the trade?

A. Gems and ornaments
B. Textile industry
C. Steel industry
D. Engineering goods industry
Answer» D. Engineering goods industry
discuss
11.

Which of the following measures is not likely to help in improving India's balance of payments position?

A. Devaluation of the rupee
B. Encouragement of import substitution
C. Imposition of higher duty on imports
D. Imposition of higher duty on exports
Answer» D. Imposition of higher duty on exports
discuss
12.

In India, maximum number of workers are employed in :

A. textile industry
B. iron and steel industry
C. petrochemical industry
D. automobile industry
Answer» A. textile industry
discuss
13.

After textiles, India's second important industry is :

A. Sugar
B. Jute
C. Cement
D. Iron and steel
Answer» D. Iron and steel
discuss
14.

India's oldest iron and steel plant is : [Intelligence Bureau 1991]

A. TISCO at Jamshedpur
B. TISCO at Burnpur
C. Durgapur Iron and Steel Plant
D. Rourkela Iron and Steel Plant
Answer» A. TISCO at Jamshedpur
discuss
15.

Which industry in India was worst affected because of the partition? [PCS 1994]

A. Paper and Iron
B. Jute and Cotton
C. Cotton and Sugar
D. Engineering and Cement
Answer» B. Jute and Cotton
discuss
16.

Which of the following industries was started first in India?

A. Cotton
B. Paper
C. Tea
D. Jute
Answer» C. Tea
discuss
17.

Which of the following states ranks first in terms of the maximum number of agrobased industries? [Bank PO 1993]

A. Gujarat
B. Punjab
C. West Bengal
D. Kerala
Answer» B. Punjab
discuss
18.

In which of the following industries is the maximum number of women employed in India? [CDS 1993]

A. Textile
B. Jute
C. Tea
D. Coal
Answer» C. Tea
discuss
19.

Which of the following is the largest (in terms of' turnover) Public Sector organisation in India?

A. Bharat Petroleum
B. Steel Authority of India
C. Indian Oil Corporation
D. Oil and Natural Gas Commission
Answer» C. Indian Oil Corporation
discuss
20.

Under perfect competition: [GIC AAO 1993]

A. any firm can influence price in the market
B. any firm can influence supply in the market
C. any firm can influence price and supply in the market
D. no firm can influence price and supply in the market
Answer» C. any firm can influence price and supply in the market
discuss
21.

India earns maximum foreign exchange from the export of:

A. garments
B. jute
C. gems and jewellery
D. cotton
Answer» C. gems and jewellery
discuss
22.

Bokaro Steel Limited was established with the assistance of: [Asstt Comm 2008]

A. Germany
B. Soviet Union
C. UK
D. USA
Answer» B. Soviet Union
discuss
23.

As per the reports published in the newspapers the banks, particularly public sector banks are tying up with various rating agencies for providing a qualitative assessment of the credit needs of the borrowers. Which amongst the following is/are such credit rating agencies in India? [Punjab & Sindh Bank 2011] (A) CARE (B) CRISIL (C) ULlP

A. Only A
B. Only B
C. A and B only
D. Only C
Answer» C. A and B only
discuss
24.

Consider the following statements: [NDA 2003] 1. The first newsprint plant set up in India was at Nepanagar. 2. The first modern steel plant in India was set up at Bhadrawati. Which of these statements is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer» A. 1 only
discuss
25.

Identify the correct sequence of the establishment of steel plants in India from the earliest to the latest: [NDA 2002]

A. Bokaro, Jamshedpur, Vishakhapatnam, Bhilai
B. Jamshedpur, Bhilai, Bokaro, Vishakhapatnam
C. Bhilai, Jamshedpur, Vishakhapatnam, Bokaro
D. Jamshedpur, Vishakhapatnam
Answer» B. Jamshedpur, Bhilai, Bokaro, Vishakhapatnam
discuss
26.

The following is the list of four integrated steel plants in the country [CDS 1991] 1. Bhilai 2. TISCO 3. IISCO 4. Bokaro Which of the following combinations lists all the plants in the public sector ?

A. 1, 2 and 4
B. 1, 3 and 4
C. 2, 3 and 4
D. None of these
Answer» B. 1, 3 and 4
discuss
27.

Which of the following statements regarding the iron and steel plants at Bhilai, Rourkela and Durgapur are correct? [CDS 1992]
1. These plants were established in public sector during the Second Five Year Plan
2. These are located in the steel raw material belt
3. These were established with the help from Britain, Soviet Union and West Germany respectively

A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 2 and 3
Answer» A. 1 and 2
discuss
28.

Consider the following statements: [CDS 2002]
1. The Ministry of External Affairs is in-charge of monetary policy in India.
2. The. Ministry of External Affairs is in-charge of foreign exchange rate determination in India.
3. The Ministry of Commerce puts forward the Export-Import Policy in India.
4. The Planning Commission prepares the Annual Budget of the Government
Which of the statements is/are correct ?

A. 1, 2, and 3
B. 2 only
C. 3 only
D. 2 and 4
Answer» C. 3 only
discuss
29.

Which of the following are the public sector undertakings of the Government of India?
1. Balmer Lawrie and Company Ltd.
2. Dredging Corporation of India 3. Educational Consultants of India Ltd.
Select the correct answer using the code given below [IAS 2008]

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer» D. 1, 2 and 3
discuss
30.

Which one of the following statements is not correct? [IAS 2005]

A. Rourkela Steel Plant, the first integrated steel plant in the Public Sector of India was set up with the Soviet Union collaboration.
B. Salem Steel Plant is a premier producer of stainless steel in India.
C. Maharashtra Elektrosmelt Ltd. is a subsidiary of the Steel Authority of India Ltd.
D. Visakhapatnam Steel Plant is a unit of the Rashtriya Ispat Nigam Ltd.
Answer» A. Rourkela Steel Plant, the first integrated steel plant in the Public Sector of India was set up with the Soviet Union collaboration.
discuss
31.

Which of the following pairs are correctly matched? [IAS 2005] Enterprise Industrial Group
1. VSNL : Bharati Group
2. Mundra Special Economic Zone Ltd. : Adani Group
3. CMC Ltd. : Tata Group
4. IPCL : Reliance Group
Select the correct answer using the codes given below:

A. 1, 2 and 3
B. 3 and 4
C. 1, 2 and 4
D. 2, 3 and 4
Answer» D. 2, 3 and 4
discuss
32.

Which of the following authority sanctions foreign exchange for the import of goods? [UP PCS 2011]

A. Any Nationalised Bank
B. Exchange Bank
C. Reserve Bank of India
D. Ministry of Finance
Answer» C. Reserve Bank of India
discuss
33.

Which organisation promotes the foreign trade? [UP PCS 2011]

A. ECGC
B. MMTC
C. STC
D. All of these
Answer» D. All of these
discuss
34.

Import substitution implies [Asstt Commdt 2011]

A. importing new items in place of old items of import
B. gradual reduction of imported goods to save foreign exchange
C. increasing domestic supply of goods by imposing import restrictions
D. replacing import items by domestic production of such items
Answer» D. replacing import items by domestic production of such items
discuss
35.

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct? [CSAT 2011]

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer» D. Neither 1 nor 2
discuss
36.

Both Foreign Direct Investment (FOI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? [CSAT 2011]

A. FII helps bring better management skills and technology, while FDI only brings in capital
B. FII helps in increasing capital availability in general, while FDI only targets specific sectors
C. FDI flows only into the secondary market, while FII targets primary market
D. FII is considered to be more stable than FDI
Answer» B. FII helps in increasing capital availability in general, while FDI only targets specific sectors
discuss
37.

Which one among the following statements is correct? [CDS 2012]

A. Due to border problems, India's trade with China did not register a quantum jump between the years 2001·2010
B. The stand-off between India and China on Pakistan and Arunachal Pradesh did not let India's trade to grow with China in the years 2001-2010 as much as it grew in the years 1991- 2001
C. While India-China trade has registered a quantum jump between the years 2001-2010, both the countries have ensured parity of trade
D. In spite of border problems, India's trade with China registered a quantum jump during the years 2001-2010
Answer» D. In spite of border problems, India's trade with China registered a quantum jump during the years 2001-2010
discuss
38.

Sickness of small units can be because of the factors:
1. under-utilisation of capacity
2. non-payment by the large firms
3. dependence on borrowed funds
4. lack of management expertise

A. 1, 2 and 3
B. 2, 3 and 4
C. 1, 2 and 4
D. 3 and 4
Answer» C. 1, 2 and 4
discuss
39.

"Sunrise Industries" are Industries:

A. which are well-developed and have ample scope for further development
B. which improve export performance of the country
C. which are small-scale industries
D. which have high growth potential and meet further requirements of the economy
Answer» D. which have high growth potential and meet further requirements of the economy
discuss
40.

Arbitrage implies:

A. practice of taking advantage of rice difference in two markets
B. the practice of under invoicing exports
C. the practice of dumping viz., selling goods in a foreign market cheaper than the home market
D. the practice of over-invoicing imports
Answer» A. practice of taking advantage of rice difference in two markets
discuss
41.

Sector-wise, maximum employment in the public sector is in :

A. electricity, gas and water
B. community, social and personal services
C. finance, insurance and real estate
D. transport, storage and communication
Answer» B. community, social and personal services
discuss
42.

Over the last few years:
1. the value of imports has increased at a faster rate as compared to exports
2. exports have fallen as compared to imports
3. both exports and imports have risen
4. the balance of trade has been favourable to India

A. 1, 2 and 3
B. 1 and 3
C. 1
D. 1, 3 and 4
Answer» B. 1 and 3
discuss
43.

Which of the following are not features of India's small-scale industries in general?
1. large employment potential
2. great export potential
3. highly skilled labour
4. efficient marketing system

A. 1 and 3
B. 2 and4
C. 1 and 2
D. 3 and 4
Answer» D. 3 and 4
discuss
44.

Which one among the following is not true for Special Economic Zones? [CDS 2011]

A. No licence is required for import
B. Manufacturing and service activities are allowed
C. No permission for subcon- tracting
D. No routine examination of cargo for export/import by customs authorities
Answer» C. No permission for subcon- tracting
discuss
45.

The biggest Public Sector undertaking in the country is ____ [Corporation Bank PO 2011]

A. Iron & steel plants
B. Roadways
C. Railways
D. Airways
Answer» C. Railways
discuss
46.

With reference to India, which one of the following statements is NOT correct? [IAS 2003]

A. IPCL is India's largest petrochemical company
B. RIL is the largest private sector· company in India
C. MTNL is listed on NYSE
D. BSNL is the first telecom service organization in India to launch a nationwide cellular service at one time
Answer» A. IPCL is India's largest petrochemical company
discuss
47.

What is the current account of balance of payments?

A. It is the account showing difference of total exports and imports in one year
B. It is the account showing transactions in invisible account like tourism, shipping, insurance etc.
C. It is the account showing transactions like net external assistance, NRI deposits, etc.
D. It is the account showing trade balance plus invisible balance
Answer» D. It is the account showing trade balance plus invisible balance
discuss
48.

Core industries include:

A. basic industries
B. industries catering to defence requirements
C. critical industries
D. all the above
Answer» D. all the above
discuss
49.

The core sector includes: I. Coal II. Power III. Petroleum IV. Soaps and Detergent

A. I and II
B. I, II and III
C. I
D. II and III
Answer» B. I, II and III
discuss
50.

Invisible Export means export [Corporation Bank PO 2011]

A. Services
B. Prohibited goods
C. Unrecorded goods
D. Goods through smuggling
Answer» A. Services
discuss

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