industries manufacturing & service sectors section 6 MCQ Questions & Answers Detailed Explanation

Answer: (c)

HAL, the government-owned corporation is primarily involved in the operations of the aerospace industry.

These include manufacturing and assembly of aircraft, navigation and related communication equipment.

Answer: (a)

India’s external debt, as of end-March 2013, was placed at US$ 390.0 billion showing an increase of USD 44.6 billion or 12.9 per cent over the level at end-March 2012.

The increase in total external debt during financial year 2012-13 was primarily on account of rise in short-term trade credit.

There has been sizeable rise in external commercial borrowings (ECBs) and rupee denominated Nonresident Indian deposits as well.

Answer: (d)

“Domestic Tariff Area” (DTA) means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones (SEZs).

“Special Economic Zone” (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. SEZ units may be set up for the manufacture of goods and rendering of services.

Goods and services going into the SEZ area from DTA shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as if these are being imported.

Some important points related to duties in SEZs:

1. SEZ units may import/procure goods and services from DTA without payment of duty for setting up, operation and maintenance of units in the Zone.
2. SEZ unit may sell goods, including by-products, and services in DTA in accordance· with the import policy in force, on payment of applicable (customs etc.) duty.
3. SEZ unit shall be a positive Net Foreign exchange Earner. Net Foreign Exchange Earning (NFE) shall be calculated cumulatively for a period of five years from the commencement of production.

Answer: (c)

Answer: (d)

NASSCOM is the organisation of companies of Information Technology.

Answer: (a)

The policy of 1956, for the first time, recognized the contribution of small scale industries in the growth of the Indian economy. It laid stress on rational distribution of national income and effective utilization of resources.

This policy is considered one of the most important industrial policies of India as it decided the nature and scope of the Indian economy till the reforms of 1991.