Industrial Sector

1. Which one of the following would be achieved through measures such as

Which one of the following would be achieved through measures such as increased supply of cheaper domestic coal, coal linkage rationalisation, liberal coal swaps from inefficient to efficient plants, coal price rationalisation based on GCV (Gross Calorific Value), supply of washed and crushed coal, and faster completion of transmission lines ?

Operational efficiency
Reduction in cost of power
Reduction in interest cost
Enforcing financial discipline
This question was previously asked in
UPSC SO-Steno – 2018
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The listed measures are primarily aimed at optimizing the cost of fuel (coal) and improving the efficiency of its usage and transmission in the power sector. Using cheaper domestic coal, rationalizing linkages, allowing swaps, pricing based on Gross Calorific Value (GCV), and using washed/crushed coal all directly reduce the cost of fuel per unit of energy or improve plant efficiency to get more energy from the fuel, thereby lowering the cost of power generation. Faster completion of transmission lines reduces transmission losses and grid costs. All these measures directly contribute to a reduction in the overall cost of generating and supplying power. While operational efficiency (A) is improved by some measures (like washed coal), the overarching goal and consequence of these actions in the context of the power sector are primarily related to reducing the cost of electricity. Options C and D are related to financial aspects not directly addressed by these technical/operational measures.
Measures targeting cheaper, better quality, and more efficiently supplied coal, along with improved transmission, directly reduce the input costs and losses in power generation and delivery, leading to a reduction in the cost of power.
The cost of coal is a major component of thermal power generation costs in India. Measures to optimize coal sourcing, quality, and usage are crucial for making power more affordable and improving the financial health of power generation and distribution companies. Similarly, reducing transmission and distribution losses through better infrastructure is vital for delivering power efficiently and reducing costs for the end consumer.

2. The first Industrial Policy Statement of India was announced on

The first Industrial Policy Statement of India was announced on

8<sup>th</sup> March, 1948
8<sup>th</sup> April, 1948
6<sup>th</sup> March, 1949
6<sup>th</sup> April, 1949
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UPSC SO-Steno – 2018
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India’s first Industrial Policy Resolution was announced on April 6, 1948. Among the given options, April 8, 1948, is the closest date. It is highly probable that the option contains a minor typographical error, and it intends to refer to the correct date.
The first Industrial Policy Resolution in independent India was announced in 1948, laying down the broad framework for industrial development in the country.
The 1948 Industrial Policy Resolution broadly classified industries into four categories: those under exclusive state monopoly, those where the state would progressively establish new undertakings, those under state regulation, and those open to private enterprise. It also emphasized the role of cottage and small-scale industries. This policy set the stage for India’s mixed economy model of development. Subsequent Industrial Policy Resolutions were announced in 1956, 1977, 1980, and the New Industrial Policy in 1991.

3. A Non-Resident Indian wants to get approval under Government route for

A Non-Resident Indian wants to get approval under Government route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application ?

Regional Office of Reserve Bank of India
Head Office of Reserve Bank of India
Department of Economic Affairs
Department of Industrial Policy and Promotion
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UPSC Combined Section Officer – 2024
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The correct answer is Department of Industrial Policy and Promotion (D).
In India, the Department for Promotion of Industry and Internal Trade (DPIIT), which was formerly known as the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, is the nodal department responsible for formulating and implementing the FDI policy. Applications for FDI under the government approval route, including for ‘Single Brand’ product retailing beyond the automatic route limits, are processed through the Foreign Investment Facilitation Portal (FIFP), which is managed by DPIIT.
While the Reserve Bank of India (RBI) is involved in the regulation of foreign exchange and monitoring of FDI inflows/outflows, the policy formulation and approval process under the government route for FDI proposals typically falls under the purview of DPIIT (formerly DIPP). The Department of Economic Affairs (DEA) in the Ministry of Finance is also involved in broader economic policies, but the specific handling of FDI applications under the government route is managed by DPIIT. The name ‘Department of Industrial Policy and Promotion’ (DIPP) was used before the renaming to DPIIT; in the context of a question likely referencing the structure before the rename, DIPP is the correct choice. Assuming the question reflects the older terminology, DIPP (Option D) is correct. If it were updated terminology, the option would likely be DPIIT. Given the option, DIPP is the intended answer.

4. Which one of the following industries is not covered in the index of e

Which one of the following industries is not covered in the index of eight core industries ?

Electricity
Crude oil
Natural gas
Pharmaceuticals
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UPSC Combined Section Officer – 2024
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Pharmaceuticals is not included in the Index of Eight Core Industries.
The Index of Eight Core Industries measures the collective and individual production performance of eight significant sectors of the Indian economy. These eight industries are:
1. Coal
2. Crude Oil
3. Natural Gas
4. Refinery Products
5. Fertilizers
6. Steel
7. Cement
8. Electricity
The options A, B, and C (Electricity, Crude oil, Natural gas) are all part of the core industries. Pharmaceuticals is not.
The Index of Eight Core Industries constitutes about 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). It is released by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry. Changes in this index significantly impact the IIP.

5. In which year did the Monopolistic and Restrictive Trade Practices Act

In which year did the Monopolistic and Restrictive Trade Practices Act become effective ?

1969
1970
1971
1972
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UPSC Combined Section Officer – 2024
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The Monopolistic and Restrictive Trade Practices (MRTP) Act became effective in 1970.
The MRTP Act was enacted in India in 1969 to curb monopolistic and restrictive trade practices and prohibit unfair trade practices. While it was enacted in 1969, it officially came into force on June 1, 1970.
The MRTP Act, 1969, was a significant piece of legislation aimed at promoting competition and preventing concentration of economic power. It established the MRTP Commission to investigate and take action against such practices. However, in the post-liberalization era, it was felt that the Act was insufficient to address the complexities of modern competition issues. Consequently, it was repealed and replaced by the Competition Act, 2002, which came into full effect in phases starting from 2003, and the Competition Commission of India (CCI) was established.

6. What is the shape of the short run marginal cost curve ?

What is the shape of the short run marginal cost curve ?

U
V
X
W
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UPSC Combined Section Officer – 2024
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The short-run marginal cost (MC) curve is typically U-shaped. Initially, as output increases, marginal cost falls due to increasing marginal returns from the variable input (e.g., labor). However, as output continues to increase, the firm encounters diminishing marginal returns to the variable input (due to fixed factors like capital), causing marginal cost to rise. This initial fall followed by a rise gives the MC curve its U-shape.
– Marginal Cost (MC) is the cost of producing one additional unit of output.
– Short-run costs are affected by fixed and variable factors.
– The U-shape is a result of the Law of Variable Proportions (or Diminishing Marginal Returns).
The short-run average variable cost (AVC) and average total cost (ATC) curves are also typically U-shaped. The MC curve intersects both the AVC and ATC curves at their minimum points.

7. The “National Investment and Manufacturing Zones” aim to promote

The “National Investment and Manufacturing Zones” aim to promote

Agricultural development
Manufacturing industries
Information technology sector
Tourism and hospitality sector
This question was previously asked in
UPSC Combined Section Officer – 2021-22
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The correct answer is Manufacturing industries.
National Investment and Manufacturing Zones (NIMZs) are integrated industrial townships proposed by the Government of India to promote manufacturing activities. They are part of the National Manufacturing Policy.
NIMZs are envisaged as large areas (typically minimum 5000 hectares) with world-class infrastructure, land use on the basis of zoning, clean and energy-efficient technology, and requisite social infrastructure, aimed at attracting domestic and foreign investment in manufacturing.

8. The ‘Insolvency and Bankruptcy Code’ was introduced to facilitate the

The ‘Insolvency and Bankruptcy Code’ was introduced to facilitate the resolution of insolvency cases and to improve the ease of doing business in India. In which year was it enacted?

2013
2015
2016
2017
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UPSC Combined Section Officer – 2019-20
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The Insolvency and Bankruptcy Code (IBC) was enacted in the year 2016.
The Insolvency and Bankruptcy Code, 2016, is a comprehensive law enacted by the Parliament of India to consolidate the laws relating to insolvency and bankruptcy in India. It provides a time-bound process for resolving insolvency of companies and individuals.
The IBC replaced multiple existing laws and frameworks related to insolvency and bankruptcy resolution, aiming to improve the ease of doing business in India by providing a clear, fast, and predictable mechanism for debt resolution. It established the Insolvency and Bankruptcy Board of India (IBBI) as the regulatory body.

9. The ‘Production Linked Incentive (PLI)’ scheme was launched to promote

The ‘Production Linked Incentive (PLI)’ scheme was launched to promote domestic manufacturing in various sectors. Which of the following sectors were covered under this scheme?

  • 1. Pharmaceuticals
  • 2. Electronics
  • 3. Textiles
  • 4. Automobiles

Select the correct answer using the code given below.

1 and 2 only
3 and 4 only
1, 2, 3 and 4
2, 3 and 4 only
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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The correct option is C. All four listed sectors – Pharmaceuticals, Electronics, Textiles, and Automobiles – were covered under the Production Linked Incentive (PLI) scheme.
– The Production Linked Incentive (PLI) scheme is an initiative by the Government of India to boost domestic manufacturing and reduce import bills. It aims to provide incentives to companies on increased sales from products manufactured in domestic units.
– The scheme was first launched for three sectors in March 2020 (Large Scale Electronics Manufacturing, critical Key Starting Materials/Drug Intermediates and APIs, and Manufacturing of Medical Devices).
– Subsequently, the scheme was expanded to cover a total of 14 key sectors to create national manufacturing global champions.
– The sectors covered include Mobile Manufacturing & Specified Electronic Components, Pharmaceuticals drugs, Textiles (Technical Textiles, Man-Made Fibre segments), Automobiles & Auto Components, Telecommunication & Networking Products, Advanced Chemistry Cell (ACC) Battery, Food Products, High-Efficiency Solar PV Modules, White Goods (ACs and LEDs), Specialty Steel, Medical Devices, Drones and Drone Components, IT Hardware, and Pharma (previously covered, expanded scope).
– All the sectors listed in the question (Pharmaceuticals, Electronics, Textiles, Automobiles) are part of the expanded list of sectors covered under the PLI scheme.
The objective of the PLI scheme is to make India a global manufacturing hub by encouraging domestic manufacturing, attracting foreign investment, and boosting exports.

10. As of 2022, which one of the following is the estimated installed capa

As of 2022, which one of the following is the estimated installed capacity of nuclear power in India ?

About 45000 MW
About 23000 MW
About 7000 MW
About 2000 MW
This question was previously asked in
UPSC CISF-AC-EXE – 2023
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The correct answer is C.
As of 2022, the estimated installed capacity of nuclear power in India was around 6.78 GW (6780 MW). Several new reactors were under construction or planned to significantly increase this capacity in the future. Among the given options, about 7000 MW is the closest figure to the installed capacity in 2022.
India has a phased program for developing nuclear power. The country operates a mix of Pressurized Heavy Water Reactors (PHWRs) and has collaborations for Light Water Reactors (LWRs). The target is to increase nuclear power capacity substantially to meet future energy demands and reduce carbon emissions.
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