UNIT 3

1. Indian Industry: Large Scale, Small Scale, and Cottage Industries

This section focuses on categorizing industries in India based on their scale of operation.
Understanding the differences between these categories is crucial for analyzing their roles in the
Indian economy.
 Large Scale Industries:
o Definition: Large-scale industries are characterized by significant capital investment,
a large workforce, advanced technology, and mass production. They typically operate
over a wide geographical area, often with national or even international reach.
o Characteristics:

 High Capital Investment: Requires substantial investment in plant,

machinery, equipment, and infrastructure.
 Large Workforce: Employs a considerable number of workers, both skilled
and unskilled.
 Advanced Technology: Utilizes sophisticated and often automated
production processes.
 Mass Production: Produces goods and services on a large scale to meet
national or international demand.
 Complex Management Structure: Requires a well-defined organizational
structure with specialized departments and managerial expertise.
 Wide Market Reach: Products are typically distributed nationally or
internationally.
o Examples:

 Steel Plants (e.g., Tata Steel, SAIL)

 Petroleum Refineries (e.g., Reliance Industries, Indian Oil Corporation)
 Automobile Manufacturers (e.g., Maruti Suzuki, Tata Motors)
 Cement Plants (e.g., UltraTech Cement, Ambuja Cement)
o Role in the Economy:

 Contribute significantly to GDP and industrial output.

 Generate employment opportunities, although often requiring specialized
skills.
 Drive technological advancements and innovation.
 Contribute to infrastructure development.
 Facilitate exports and earn foreign exchange.
 Small Scale Industries (SSI):
 o Definition: SSIs are defined based on investment in plant and machinery (or
equipment) and turnover. The definition has evolved over time. Under the MSMED
Act of 2006, they were categorized as Micro, Small, and Medium Enterprises
(MSMEs). However, generally, when people speak of 'SSI' they are referring to
something that falls within the MSME definition, but is smaller than a typical
medium enterprise. (See the MSME section below for current specifics on
classification.)
o Characteristics:

 Lower Capital Investment: Requires relatively less capital investment

compared to large-scale industries.
 Smaller Workforce: Employs a smaller number of workers, often with a mix
of skilled and semi-skilled labor.
 Labor-Intensive: Often more labor-intensive than large-scale industries,
meaning they use more labor per unit of output.
 Simple Technology: Utilizes simpler and often locally available technology.
 Flexible Production: Can adapt to changing market demands more easily
than large-scale industries.
 Localized Market: Products are often targeted towards local or regional
markets.
 Entrepreneurial Focus: Frequently owned and managed by individual
entrepreneurs or small partnerships.
o Examples:

 Food Processing Units (e.g., bakeries, small-scale canning)

 Textile and Garment Manufacturing (e.g., tailoring shops, small garment
factories)
 Leather Products (e.g., shoe manufacturing, leather goods)
 Handicrafts and Artisanal Products
 Light Engineering Goods (e.g., manufacturing of small parts and
components)
o Role in the Economy:

 Generate significant employment, particularly in rural and semi-urban areas.

 Promote entrepreneurship and self-employment.
 Contribute to regional economic development.
 Meet local consumer demands.
 Support large-scale industries by providing components and services.
 Important for inclusive growth and poverty reduction.
 Cottage Industries:
 o Definition: Cottage industries are the smallest form of manufacturing, typically
carried out in homes or small workshops, often using traditional skills and local
resources.
o Characteristics:

 Home-Based: Usually operated from the homes of the artisans or workers.

 Family Labor: Often relies on family labor, with minimal hired help.
 Traditional Skills: Employs traditional skills and craftsmanship passed
down through generations.
 Local Resources: Uses locally available raw materials.
 Low Capital Investment: Requires very little capital investment, often
relying on simple tools and equipment.
 Limited Market Reach: Products are usually sold in local markets or
directly to consumers.
o Examples:

 Handloom Weaving
 Pottery
 Handicrafts (e.g., wood carving, basket making, embroidery)
 Leather Craft
 Food Processing (e.g., making pickles, jams, and papads on a small scale)
o Role in the Economy:

 Preserve traditional arts and crafts.

 Provide employment opportunities in rural areas.
 Generate income for marginalized communities.
 Promote rural economic development.
 Contribute to cultural tourism.
 Help preserve cultural heritage.
2. MSME (Micro, Small, and Medium Enterprises)
The MSME sector is a critical engine of growth in the Indian economy. The Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006, provides the legal framework for defining
and promoting MSMEs. The definitions have been revised over time to keep pace with economic
changes. The latest revision came in 2020.
 Definition (As of 2020): The definition is based on both investment and annual turnover.
If a business meets BOTH the investment and turnover thresholds, it falls within that
category.
o Micro Enterprise:

 Investment: Not more than ₹1 crore

  Turnover: Not more than ₹5 crore
o Small Enterprise:

 Investment: Not more than ₹10 crore

 Turnover: Not more than ₹50 crore
o Medium Enterprise:

 Investment: Not more than ₹50 crore

 Turnover: Not more than ₹250 crore
 Key Features of MSMEs:
o Diversity: Encompass a wide range of industries and activities, including
manufacturing, services, and trading.
o Entrepreneurship: Often driven by individual entrepreneurs or small partnerships.

o Innovation: Many MSMEs are innovative and adapt to changing market conditions.

o Employment Generation: A major source of employment, particularly for low-

skilled and semi-skilled workers.
o Regional Development: Contribute to the development of backward and rural areas.

o Export Potential: Many MSMEs are involved in exports, contributing to foreign

exchange earnings.
o Flexibility: More adaptable and responsive to market changes compared to larger
firms.
 Challenges Faced by MSMEs:
o Access to Finance: Difficulty in obtaining credit from banks and financial
institutions.
o Infrastructure Bottlenecks: Inadequate infrastructure, such as power, transportation,
and communication.
o Technology Adoption: Limited access to modern technology and skills.

o Marketing and Branding: Challenges in marketing and branding their products and
services.
o Regulatory Compliance: Complex regulatory environment and compliance
requirements.
o Competition: Intense competition from larger firms and imports.

 Government Support for MSMEs: The government has implemented various schemes and
policies to support the growth and development of MSMEs, including:
o Credit Guarantee Fund Scheme for Micro and Small Enterprises
(CGTMSE): Provides collateral-free loans to MSMEs.
o Prime Minister's Employment Generation Programme (PMEGP): Supports the
establishment of new micro-enterprises.
 o Technology Upgradation Fund Scheme (TUFS): Promotes technology upgradation
in the textile industry.
o Skill Development Programs: Provides skill development training to workers in
MSMEs.
o Procurement Policy: Requires government agencies to procure a certain percentage
of their requirements from MSMEs.
3. MUDRA Scheme (Micro Units Development and Refinance Agency)
 Purpose: The MUDRA scheme, launched in 2015, aims to provide financial assistance to
non-corporate, non-farm small and micro-enterprises. It primarily focuses on those who have
difficulty accessing formal credit from banks. MUDRA itself does not lend directly to
entrepreneurs. Instead, it refinances banks, NBFCs, and MFIs that lend to these micro-
enterprises.
 Key Features:
o Refinancing: MUDRA refinances loans provided by banks, NBFCs, and MFIs to
eligible borrowers.
o Focus on Micro-Enterprises: Targets very small businesses and entrepreneurs who
often lack access to formal credit.
o Three Categories of Loans:

 Shishu: Loans up to ₹50,000 (catering to startups and very small

businesses).
 Kishore: Loans between ₹50,001 and ₹5 lakh.
 Tarun: Loans between ₹5 lakh and ₹10 lakh (for more established micro-
enterprises).
o No Collateral Required: Loans are typically provided without requiring collateral.

o Focus on Women Entrepreneurs: Special emphasis is given to supporting women

entrepreneurs.
o Coverage: Covers a wide range of activities, including manufacturing, trading, and
services.
 Benefits of MUDRA Scheme:
o Increased Access to Credit: Provides access to credit for micro-enterprises that were
previously excluded from the formal financial system.
o Promotes Entrepreneurship: Encourages self-employment and entrepreneurship at
the grassroots level.
o Job Creation: Supports job creation in the micro-enterprise sector.

o Financial Inclusion: Promotes financial inclusion by bringing more people into the
formal banking system.
o Empowerment of Women: Empowers women entrepreneurs by providing them with
access to finance.
  How it Works:
1. Entrepreneur Applies for Loan: An entrepreneur applies for a loan from a bank,
NBFC, or MFI.
2. Lender Assesses Eligibility: The lender assesses the eligibility of the borrower and
the viability of the project.
3. Loan Disbursal: If the loan is approved, the lender disburses the loan to the
borrower.
4. Lender Seeks Refinance: The lender can then seek refinance from MUDRA for the
loan.
5. MUDRA Refinances Loan: MUDRA refinances the loan to the lender, providing
them with additional capital to lend to more micro-enterprises.
4. Industrial Development During Five-Year Plans
India's economic development has been guided by a series of Five-Year Plans since 1951. Each plan
has emphasized different aspects of industrial development, reflecting the changing priorities of the
government.
 Key Themes and Strategies:
o First Plan (1951-1956): Focused on agriculture and irrigation. Industrial
development was given lower priority, but the plan laid the foundation for future
industrial growth.
o Second Plan (1956-1961): Emphasized the development of heavy and basic
industries (steel, machinery, chemicals) through public sector investment. This was
based on the Mahalanobis model, which prioritized capital goods. The Industrial
Policy Resolution of 1956 formalized the role of the state in industrial development.
o Third Plan (1961-1966): Aimed at achieving self-reliance in agriculture and
industry. However, the plan was disrupted by wars and droughts.
o Fourth Plan (1969-1974): Focused on growth with stability and progressive
achievement of self-reliance. Emphasis was placed on balanced regional development
and the promotion of small-scale industries.
o Fifth Plan (1974-1979): Prioritized poverty alleviation and employment generation.
Emphasis was given to developing backward areas and promoting rural industries.
o Sixth Plan (1980-1985): Focused on improving productivity and efficiency in all
sectors of the economy. Emphasis was given to infrastructure development and
technology upgradation.
o Seventh Plan (1985-1990): Emphasized food, work, and productivity. Focused on
modernization and technological transformation of Indian industry. Introduction of
some liberalization measures.
o Eighth Plan (1992-1997): Marked a significant shift towards liberalization and
economic reforms. Emphasis was given to privatization, deregulation, and
globalization. The New Industrial Policy of 1991 was introduced, dismantling the
license raj and promoting foreign investment.
 o Ninth Plan (1997-2002): Focused on growth with social justice and equity. Emphasis
was given to infrastructure development, human resource development, and rural
development.
o Tenth Plan (2002-2007): Aimed at doubling per capita income in 10 years. Emphasis
was given to accelerating economic growth, reducing poverty, and improving social
indicators.
o Eleventh Plan (2007-2012): Focused on faster and more inclusive growth. Emphasis
was given to infrastructure development, education, health, and rural development.
o Twelfth Plan (2012-2017): Aimed at faster, sustainable, and more inclusive growth.
The focus was on reducing poverty, improving infrastructure, and promoting
environmental sustainability.
 Impact: The Five-Year Plans played a significant role in shaping India's industrial landscape.
They led to the development of a diversified industrial base, the growth of the public sector,
and the promotion of small-scale industries. However, they also faced criticism for excessive
state control, inefficiency, and slow growth. After the 12th Five Year Plan, the planning
commission was dissolved and replaced with NITI Aayog, signaling a shift away from the
traditional five-year planning model.
5. Industrial Policy - Make in India
 Make in India Initiative: Launched in 2014, "Make in India" is a major national program
designed to transform India into a global manufacturing hub. It aims to attract foreign
investment, promote domestic manufacturing, enhance skill development, and create
employment opportunities.
 Key Objectives:
o Increase Manufacturing Sector's Share of GDP: To increase the manufacturing
sector's contribution to India's GDP from 16% to 25% by 2022 (although this target
has been revised/extended).
o Attract Foreign Investment: To attract foreign direct investment (FDI) into the
manufacturing sector.
o Promote Domestic Manufacturing: To encourage domestic companies to
manufacture their products in India.
o Enhance Skill Development: To provide skill development training to workers in the
manufacturing sector.
o Create Employment Opportunities: To generate employment opportunities for the
youth of India.
o Improve Ease of Doing Business: To simplify regulations and procedures to make it
easier for businesses to operate in India.
 Key Features:
o Identified Sectors: The initiative focuses on a number of key sectors, including
automobiles, chemicals, IT & BPM, pharmaceuticals, textiles, ports, aviation, leather,
tourism and hospitality, wellness, railways, design manufacturing, renewable energy,
 mining, biotechnology, electronics, defence manufacturing, construction, food
processing and the gems & jewellery sector.
o Investment Promotion: The government has taken several measures to promote
investment, including simplifying regulations, reducing bureaucratic hurdles, and
offering incentives.
o Infrastructure Development: The government is investing heavily in infrastructure
development, including roads, railways, ports, and airports, to support manufacturing
activity.
o Skill Development: The government is implementing skill development programs to
train workers in the manufacturing sector.
o Intellectual Property Protection: The government is strengthening intellectual
property protection to encourage innovation and technology transfer.
 Impact: The Make in India initiative has had a mixed impact. It has attracted significant
foreign investment and has led to some increase in manufacturing output. However,
challenges remain, including infrastructure bottlenecks, regulatory hurdles, and skill gaps.
6. Industrial Sickness
 Definition: Industrial sickness refers to a situation where an industrial unit consistently incurs
losses, erodes its net worth, and faces difficulties in meeting its financial obligations. It's a
state of financial distress that can eventually lead to closure.
 Causes of Industrial Sickness:
o Internal Factors:

 Poor Management: Inefficient management practices, lack of planning, and

inadequate financial control.
 Technological Obsolescence: Failure to adopt new technologies and keep up
with changing market demands.
 Labor Problems: Labor unrest, strikes, and low productivity.
 Marketing Problems: Ineffective marketing strategies, poor product quality,
and lack of market research.
 Financial Problems: Over-dependence on debt, poor cash flow management,
and inadequate working capital.
o External Factors:

 Economic Downturn: Recessions and economic slowdowns can reduce

demand for industrial products.
 Government Policies: Changes in government policies, such as taxation,
tariffs, and regulations.
 Competition: Increased competition from domestic and foreign firms.
 Infrastructure Bottlenecks: Inadequate infrastructure, such as power,
transportation, and communication.
  Raw Material Shortages: Scarcity of raw materials and fluctuations in
prices.
 Consequences of Industrial Sickness:
o Loss of Production: Reduced industrial output and economic growth.

o Job Losses: Unemployment for workers in the affected units.

o Financial Losses: Losses for investors, banks, and financial institutions.

o Waste of Resources: Underutilization of plant and machinery.

o Social Costs: Social unrest and poverty due to job losses and economic hardship.

 Remedial Measures:
o Early Detection: Identifying sick units at an early stage to allow for timely
intervention.
o Financial Restructuring: Rescheduling debt, providing fresh loans, and waiving
interest.
o Operational Improvements: Improving management practices, adopting new
technologies, and enhancing productivity.
o Marketing Strategies: Developing effective marketing strategies to increase sales.

o Mergers and Acquisitions: Merging sick units with healthy units to improve their
financial viability.
o Government Support: Providing financial assistance, tax incentives, and other
forms of support.
o Bankruptcy and Liquidation: As a last resort, allowing sick units to go through
bankruptcy proceedings and liquidation.
7. Industrial Finance: Sources and Institutions
 Definition: Industrial finance refers to the funds required by industrial enterprises for various
purposes, such as setting up new plants, expanding existing operations, modernizing
equipment, and meeting working capital requirements.
 Sources of Industrial Finance:
o Internal Sources:

 Retained Earnings: Profits that are reinvested in the business.

 Depreciation Funds: Funds set aside for the depreciation of assets.
o External Sources:

 Equity Capital:
 Ordinary Shares: Represents ownership in the company and carries
voting rights.
 Preference Shares: Carry preferential rights to dividends and
repayment of capital.
  Debt Capital:
 Debentures: Unsecured debt instruments issued by companies.
 Bonds: Secured debt instruments issued by companies or
government entities.
 Term Loans: Loans provided by banks and financial institutions for
a specific period of time.
 Lease Financing: Obtaining the use of assets without purchasing them.
 Venture Capital: Funding provided to early-stage companies with high
growth potential.
 Angel Investors: Individuals who invest their own money in startups.
 Crowdfunding: Raising funds from a large number of individuals through
online platforms.
 Government Subsidies and Grants: Financial assistance provided by the
government to promote industrial development.
 Key Industrial Finance Institutions in India:
o Industrial Development Bank of India (IDBI): Provides financial assistance to
large and medium-sized industrial projects. (Now primarily a commercial bank).
o Small Industries Development Bank of India (SIDBI): Provides financial
assistance to MSMEs.
o Industrial Finance Corporation of India (IFCI): One of the oldest development
finance institutions in India, providing financial assistance to various industrial
projects.
o State Financial Corporations (SFCs): Provide financial assistance to small and
medium-sized enterprises at the state level.
o Commercial Banks: Provide term loans, working capital loans, and other financial
services to industrial enterprises.
o Non-Banking Financial Companies (NBFCs): Provide a range of financial services,
including loans, leasing, and hire purchase, to industrial enterprises.
o Micro Finance Institutions (MFIs): Provide small loans to micro-enterprises,
particularly in rural areas.

MCQs
1. Which of the following is NOT a characteristic of a large-scale industry in India?
a) High capital investment
b) Large workforce
c) Regional Focus
d) Mass production
Answer: c) Regional Focus
2. Small-scale industries (SSIs) in India are defined primarily based on:
a) Turnover
b) Number of Employees
c) Investment in plant and machinery
d) Export Value
Answer: c) Investment in plant and machinery
3. Cottage industries are typically characterized by:
a) High degree of automation
b) Use of locally available resources
c) Large scale production
d) Dependence on foreign technology
Answer: b) Use of locally available resources
4. MSME stands for:
a) Micro, Small, and Medium Enterprises
b) Major, Small, and Medium Entities
c) Micro, Strategic, and Mega Enterprises
d) Marginal, Small, and Medium Enterprises
Answer: a) Micro, Small, and Medium Enterprises
5. The MUDRA scheme primarily focuses on:
a) Providing loans to large corporations
b) Supporting infrastructure development
c) Financing micro and small enterprises
d) Promoting exports
Answer: c) Financing micro and small enterprises
6. Under the MUDRA scheme, 'Shishu' loans cover amounts up to:
a) ₹ 50,000
b) ₹ 5,00,000
c) ₹ 10,00,000
d) ₹ 20,00,000
Answer: a) ₹ 50,000
7. Which Five-Year Plan emphasized the development of heavy industries?
a) First Five-Year Plan
b) Second Five-Year Plan
c) Third Five-Year Plan
d) Fourth Five-Year Plan
Answer: b) Second Five-Year Plan
8. The Industrial Policy Resolution of 1956:
a) Promoted privatization of all industries
b) Emphasized the role of the public sector
c) Focused solely on agricultural development
d) Encouraged foreign direct investment in all sectors
Answer: b) Emphasized the role of the public sector
9. The 'Make in India' initiative was launched in:
a) 2010
b) 2014
c) 2018
 d) 2022
Answer: b) 2014
10. The primary goal of the 'Make in India' initiative is to:
a) Increase agricultural output
b) Transform India into a global manufacturing hub
c) Promote tourism
d) Focus solely on the service sector
Answer: b) Transform India into a global manufacturing hub
11. Industrial sickness refers to:
a) Rapid industrial growth
b) Financial distress and potential closure of industrial units
c) Technological advancements in industries
d) Increased environmental regulations for industries
Answer: b) Financial distress and potential closure of industrial units
12. Which of the following is NOT a common cause of industrial sickness?
a) Poor management
b) Technological obsolescence
c) High demand for the product
d) Inadequate infrastructure
Answer: c) High demand for the product
13. Which of the following is an internal cause of Industrial Sickness?
a) Erratic government policies
b) Lack of demand for the product
c) Lack of effective marketing strategy
d) Non-availability of raw materials
Answer: c) Lack of effective marketing strategy
14. The term "incubation" related to MSMEs, is best related to
a) Funding of large-scale projects
b) The phase where entrepreneurs receive support to develop their start-ups
c) Retrenchment of employees
d) Shutdown of units
Answer: b) The phase where entrepreneurs receive support to develop their start-ups
15. Which of the following is NOT a source of industrial finance?
a) Commercial Banks
b) State Financial Corporations (SFCs)
c) National Bank for Agriculture and Rural Development (NABARD)
d) Mutual Funds
Answer: d) Mutual Funds
16. SIDBI stands for:
a) Small Industries Development Bank of India
b) State Industrial Development Bank of India
c) Small Infrastructure Development Bank of India
d) State Infrastructure Development Bank of India
Answer: a) Small Industries Development Bank of India
17. Which institution provides long-term finance to industries?
a) Commercial Banks
 b) Regional Rural Banks (RRBs)
c) Development Banks
d) Cooperative Banks
Answer: c) Development Banks
18. One of the main aims of the Industrial Finance Corporation of India (IFCI) is to:
a) Provide short-term loans
b) Promote agricultural development
c) Provide financial assistance to industrial concerns
d) Regulate the stock market
Answer: c) Provide financial assistance to industrial concerns
19. Which of the following is an example of a traditional cottage industry in India?
a) Software development
b) Automobile manufacturing
c) Handloom weaving
d) Petrochemical production
Answer: c) Handloom weaving
20. Khadi and Village Industries Commission (KVIC) promotes:
a) Large-scale industries
b) Export-oriented industries
c) Cottage and village industries
d) Foreign direct investment
Answer: c) Cottage and village industries
21. The definition of MSMEs is periodically revised to:
a) Reduce the number of eligible enterprises
b) Account for inflation and economic changes
c) Favor large-scale industries
d) Decrease government support
Answer: b) Account for inflation and economic changes
22. The Stand-Up India scheme encourages entrepreneurship among:
a) Large corporations
b) Scheduled Castes/Tribes and Women
c) Foreign investors
d) Senior citizens
Answer: b) Scheduled Castes/Tribes and Women
23. The thrust areas of the second five-year plan was
a) Agriculture
b) Infrastructure
c) Heavy industries
d) Healthcare
Answer: c) Heavy industries
24. The current industrial policy of the Government aims at
a) Increasing regulations
b) Promoting deregulation and liberalization
c) Reducing foreign investment
d) Focusing only on public sector industries
Answer: b) Promoting deregulation and liberalization
25. The National Investment and Manufacturing Zones (NIMZ) are related to:
a) Agricultural development
b) Infrastructure development
c) Manufacturing sector promotion
d) Rural employment generation
Answer: c) Manufacturing sector promotion
26. One of the symptoms of Industrial sickness is
a) Increase in the number of employees
b) Increase in the efficiency of the operations
c) Continuous decline in production
d) Improvement in the Debt equity ratio
Answer: c) Continuous decline in production
27. Which of the following is an external cause of Industrial Sickness?
a) Lack of experience of Promoters
b) Lack of trained manpower
c) Demand recession
d) Defective Plant and Machinery
Answer: c) Demand recession
28. The initial stage to identify Industrial Sickness is
a) Investigation
b) Diagnosis
c) Detection
d) Cure
Answer: c) Detection
29. Which of the following is a measure to prevent Industrial Sickness?
a) Timely diversification
b) Faulty Project Planning
c) Delay in decision making
d) Poor Market Analysis
Answer: a) Timely diversification
30. A line of credit extended under Pradhan Mantri MUDRA Yojana is called:
a) MUDRA Card
b) Kisan Credit Card
c) SME Credit Card
d) RuPay Card
Answer: a) MUDRA Card
31. What is the full form of SFC in the context of Industrial Finance?
a) State Finance Corporation
b) Small Finance Company
c) State Funding Council
d) Small Funding Corporation
Answer: a) State Finance Corporation
32. The function of National Small Industries Corporation Limited (NSIC) includes:
a) To provide machinery and equipment on hire purchase
b) To help small scale units to participate in Government Tender
c) To provide assistance in marketing of the product
 d) All of the above
Answer: d) All of the above
33. Which of the following organization provides refinance to banks and other financial
institution for providing finance to MSME sector?
a) EXIM Bank
b) NABARD
c) SIDBI
d) RBI
Answer: c) SIDBI
34. Under which plan, the concept of Mahalanobis model adopted?
a) 1st five year plan
b) 2nd five year plan
c) 3rd five year plan
d) 4th five year plan
Answer: b) 2nd five year plan
35. What is the focus area of the Startup India initiative?
a) To promote only IT companies.
b) To provide funding to established businesses.
c) To support and grow innovative startups across various sectors.
d) To focus solely on manufacturing startups.
Answer: c) To support and grow innovative startups across various sectors.
36. The Sickness in Industrial Undertakings Act was enacted in the year
a) 1975
b) 1980
c) 1985
d) 1990
Answer: c) 1985
37. Which of the following institution provides financial assistance to exporters and
importers
a) IDBI
b) SIDBI
c) EXIM bank
d) SBI
Answer: c) EXIM bank
38. Who is eligible for Pradhan Mantri MUDRA Yojana (PMMY)?
a) Only women entrepreneurs
b) Only existing businesses
c) Any Indian citizen who has a business plan for a small enterprise
d) Only businesses registered with the government
Answer: c) Any Indian citizen who has a business plan for a small enterprise
39. Which of the following sectors has the highest share of MSMEs in India?
a) Manufacturing
b) Service
c) Agriculture
d) Export
Answer: a) Manufacturing
40. The objective of the National Manufacturing Policy, 2011 includes
a) Increase sectoral share of manufacturing in GDP to 25 % by 2022.
b) Creation of 100 million additional jobs by 2022.
c) Skill enhancement of rural youth
d) All of the above
Answer: d) All of the above