Indian Economy part 8 Industries, Infrastructure and Foreign Trade

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
Ans: (b)
2. The performance of which of the following industries is considered performance of the
core industry? [RBI Grade B Officer 2011]
(1) Garments
(2) Leather
(3) IT
(4) Oil and Petroleum
(5) Handicrafts
Ans: (4)
3. Which of the following agencies has the power to declare any industrial unit as a
potentially sick unit? [CDS 2000]
(a) BIFR

(d) IRBI
Ans: (a)
4. The most important small-scale industry in India is that of:
(a) textiles
(b) jute
(c) jewellery
(d) handloom
Ans: (d)
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
Ans: (a)
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
Ans: (b)
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
Ans: (b)
8. The largest importer country of Indian textile is :
(a) Italy
(b) Germany
(c) Singapore
(d) USA
Ans: (d)
9. Indian Railways revenue from:
(a) passenger fare
(b) freight

(c) traffic tax
(d) passenger tax
Ans: (b)
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
Ans: (d)
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
Ans: (d)
12. In India, maximum number of workers are employed in :
(a) textile industry
(b) iron and steel industry
(c) petrochemical industry
(d) automobile industry
Ans: (a)
13. After textiles, India's second important industry is :
(a) Sugar
(b) Jute
(c) Cement
(d) Iron and steel
Ans: (d)
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
Ans: (a)
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
Ans: (b)
16. Which of the following industries was started first in India?
(a) Cotton
(b) Paper
(c) Tea
(d) Jute
Ans: (c)
17. Which of the following states ranks first in terms of the maximum number of agro-
based industries? [Bank PO 1993]
(a) Gujarat
(b) Punjab
(c) West Bengal
(d) Kerala
Ans: (b)
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
Ans: (c)
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
Ans: (c)
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

Ans: (c)
21. India earns maximum foreign exchange from the export of:
(a) garments
(b) jute
(c) gems and jewellery
(d) cotton
Ans: (c)
22. Bokaro Steel Limited was established with the assistance of: [Asstt Comm 2008]
(a) Germany
(b) Soviet Union
(c) UK
(d) USA
Ans: (b)
23. Match the following: [IAS 2002]
Commission Matter of Enquiry
A. Wadhwa Commission 1. The assassination of Rajiv Gandhi
B. Liberhan Commission 2. Killing of Graham Staines
C. Sri Krishna Commission 3. Demolition of a religious structure at Ayodhya
D. Jain Commission 4. Riots in Mumbai in 1993
(a) 3 2 4 1
(b) 2 3 4 1
(c) 3 2 1 4
(d) 2 3 1 4
Ans: (b)
24. 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]
(C) ULlP
(1) Only A
(2) Only B
(3) A and B only
(4) Only C

(5) All A, B and C
Ans: (3)
25. 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
Ans: (a)
26. 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
Ans: (b)
27. The following is the list of four integrated steel plants in the country [CDS 1991]
1. Bhilai
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
Ans: (b)
28. 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
(a) 1 and 2

(b) 2 and 3
(c) 1 and 3
(d) 2 and 3
Ans: (a)
29. Match the following:
A. Dutt Committee 1. Village and Small Scale Industries
B. Raj Committee 2. Direct Taxes
C. Wanchoo Committee 3. Agricultural Taxes
D. Karve Committee 4. Industrial Licensing
(a) 1 2 3 4
(b) 4 3 2 1
(c) 1 4 3 2
(d) 2 3 4 1
Ans: (b)
30. 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
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
Ans: (c)
31. 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
Ans: (d)
32. 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.
Ans: (a)
33. 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
Ans: (d)
34. 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
Ans: (c)
35. Which organisation promotes the foreign trade? [UP PCS 2011]
(a) ECGC
(b) MMTC
(c) STC
(d) All of these
Ans: (d)

36. 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
Ans: (d)
37. 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
Ans: (d)
38. 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
(c) FDI flows only into the secondary market, while FII targets primary market
(d) FII is considered to be more stable than FDI
Ans: (b)
39. 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-
(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
Ans: (d)
40. 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
Ans: (c)
41. Match the following:
Aluminium Company Location
A. BALCO 1. Hirakud
B. HINDALCO 2. Korba
C. Indian Aluminium Company 3. Koraput
D. NALCO 4. Renukoot
(a) 3 1 4 2
(b) 2 4 1 3
(c) 3 4 1 2
(d) 2 1 4 3
Ans: (b)
42. Match the following:
Committees Chaired by
A. Balance of Payments and Foreign Investment 1. Rakesh Mohan
B. Public Sector Enterprises Autonomy 2. Arjun Sen Gupta
C. Small Scale Industries 3. Rangarajan
D. Infrastructure Development 4. Abid Hussain
(a) 1 4 2 3
(b) 3 2 4 1
(c) 1 2 3 4
(d) 2 1 4 3
Ans: (b)

43. "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
Ans: (d)
44. 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
(d) the practice of over-invoicing imports
Ans: (a)
45. 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
Ans: (b)
46. 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
Ans: (b)
47. 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

Ans: (d)
48. 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
Ans: (c)
49. The biggest Public Sector undertaking in the country is ____ [Corporation Bank PO
(1) Iron & steel plants
(2) Roadways
(3) Railways
(4) Airways
(5) None of these
Ans: (3)
50. With reference to India, which one of the following statements is NOT correct? [IAS
(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
Ans: (a)
51. Consider the following statements: [IAS 2002]
2. NTPC is the largest power utility in India.
3. ONGC accounts for half of the LPG production in India.
4. Indian Oil Corporation operates all the oil refineries in India.
5. The Indian Ordnance Factory is the largest departmentally run industrial undertaking in
the country.
Which of these statements is/are correct?
(a) 1 only
(b) 2 and 3
(c) 2, 3 and 4
(d) 1 and 4
Ans: (d)
52. 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
Ans: (d)
53. Core industries include:
(a) basic industries
(b) industries catering to defence requirements
(c) critical industries
(d) all the above
Ans: (d)
54. 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
Ans: (b)
55. Invisible Export means export [Corporation Bank PO 2011]
(1) Services
(2) Prohibited goods
(3) Unrecorded goods
(4) Goods through smuggling
(5) All the above
Ans: (1)
56. Which of the following sectors does not come under tertiary sector?
(a) Transport
(b) Trade
(c) Business Services
(d) Electricity
Ans: (d)
57. Which of the following committees was assigned to recommend reforms in the insurance

(a) Rekhi Committee
(b) Nadkarni Committee
(c) Malhotra Committee
(d) Chelliah Committee
Ans: (c)
58. Consider the following statements: [IAS 2004]
1. National Thermal Power Corporation has diversitled into hydropower sector
2. Power Grid Corporation of India has diversified into telecom sector
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 nor 2
Ans: (a)
59. Whenever newspapers talk about the performance of core industries, which of the
following is NOT considered among them? [Bank of India PO 2010]
(1) Petroleum
(2) Automobile
(3) Mining
(4) Steel
(5) Cement
Ans: (3)
60. Which one of the following pairs is not correctly matched? [CDS 2008]
(a) Hindalco Industries - Novelis
(b) Tata Steel - Corus Group
(c) Jet Airways - Air Sahara
(d) Kingfisher Airlines - MDLR Airlines
Ans: (d)
61. Which institution provides long run finance to industries?
(a) UTI
(b) LIC
(c) GIC
(d) All of these
Ans: (d)
62. Match the following: [CDS 2005]

Industry Product / service
A. Grasim 1. Cement
B. Ranbaxy 2. Automobiles
C. Reliance 3. Oil and gas
D. TELCO 4. Pharmaceuticals
(a) 1 2 3 4
(b) 3 4 1 2
(c) 1 4 3 2
(d) 3 2 1 4
Ans: (c)
63. One of the main factors that led to rapid expansion of Indian exports is :
(a) liberalisation of the economy
(b) diversification of exports
(c) imposition of import duties
(d) recession in other countries
Ans: (a)
64. The main argument advanced in favour of small scale and cottage industries in India is
(a) cost of production is low
(b) they require small capital investment
(c) they advance the goal of equitable distribution of wealth
(d) they generate a large volume of employment
Ans: (d)
65. Present Industrial policy in India aims at :
(a) promoting the private sector units
(b) increasing the production of public sector units
(c) accelerating the performance of mixed economy
(d) discourage the performance of the private sector
Ans: (c)
66. When does the problem of unfavourable balance of payment arise?
(a) When exports decrease
(b) When exports increase
(c) When imports increase
(d) When imports are greater than exports

Ans: (d)
67. The difference between visible exports and visible imports is defined as [Corporation
Bank PO 2011]
(1) Balance of trade
(2) Balance of payment
(3) Balanced terms of trade
(4) Gains from trade
(5) All the above
Ans: (1)
68. Which of the following was formed to suggest means for eradicating black money? [I.
Tax 1992]
(a) Finance Commission
(b) Sarkaria Commission
(c) Shah Commission
(d) Chelliah Committee
Ans: (d)
69. BoP (Balance of Payment) refers to :
(a) transactions in the flow of capital
(b) transactions relating to receipts and payment of invisibles
(c) transactions relating only to exports and imports
(d) systematic record of all its economic transaction with the rest of the world
Ans: (d)
70. Mashelkar Committee was constituted to report on :
(a) economic policy
(b) constitutional changes
(c) black money
(d) auto fuel policy
Ans: (d)
71. Which of the statements given above is/are correct? [CDS 2008]
1. The USSR assisted in the building of the Bhilai Steel plant.
2. The British assisted in the building of the Bokaro Steel plant.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)
72. New exim policy has choosen a town for the pottery export :

(a) Panipat
(b) Moradabad
(c) Khurja
(d) Agra
Ans: (c)
73. A country is said to be in a debt trap if: [IAS 2002]
(a) it has to abide by the conditionalities imposed by the International Monetary Fund
(b) it has to borrow to make interest payments on outstanding loans
(c) it has been refused loans or aid by creditors abroad
(d) the World Bank charges a very high rate of interest on outstanding as well as new loans
Ans: (b)
74. 'Dumping' in the context of international trade refers to : [CDS 2000]
(a) exporting goods at prices below the actual cost of production
(b) exporting goods without paying the appropriate taxes in the receiving country
(c) exporting goods of inferior quality
(d) exporting goods only to re-import them at cheaper rates
Ans: (a)
75. The exports of India:
(a) are confined to a few items
(b) are spread over several commodity groups
(c) have not shown much of a change since 1960-61
(d) comprise mainly of agro-based products
Ans: (b)


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