industries manufacturing & service sectors section 5 MCQ Questions & Answers Detailed Explanation

Answer: (a)

ADB’s flagship annual economic publication, Asian Development Outlook 2013 evaluated the economic growth of India in 2013 to 6.0 % and 6.5 % in 2014.

Answer: (b)

Cellulose fibres obtained from wood acts as primary raw material for paper and pulp industry.

Answer: (d)

Paper and Paper Board is a forest-based industry. In 1832 the first modern paper mill of the country was set up at Serampore in West Bengal.

Answer: (b)

A labour intensive industry is one that employs more hands i.e., employs more labour.

Answer: (d)

Under the Concessional Finance Scheme (CFS), Govt. of India supports Indian entities bidding for strategically important infrastructure projects abroad.

The Scheme is presently being operated through the Export-Import (EXIM) Bank of India, which raises resources from the market to provide concessional finance to the Indian entities abroad. Govt. of India provides counter guarantee and interest equalization (subsidy) support of 2% to the EXIM Bank.

Under the Scheme, the Ministry of External Affairs (MEA) selects the specific projects keeping in view the strategic interest of India and sends the same to the Department of Economic Affairs (DEA). There is an inter-ministerial committee that approves the project for availing CFS. Once approved by the Committee, DEA issues a formal letter to EXIM Bank conveying approval for financing of the project under CFS.

Prior to the introduction of CFS, Indian entities were not able to bid for large projects abroad since the cost of financing was very high for them and bidders from other countries such as China, Japan, Europe and the US were able to provide credit at superior terms,

i.e., lower interest rate and longer tenures which works to the advantage of bidders from those countries.

Answer: (d)

Cottage industry is run by family members on a full or part-time basis. It possesses negligible capital investment.

The production is done by hands and no wage-earning person is employed in the cottage industry.