industries manufacturing & service sectors section 5 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (a)

Navratna was the title given originally to 9 Public Sector Enterprises (PSEs) identified by the government in 1997 as public sector companies that have comparative advantages enjoying greater autonomy to compete in the global market so as to support their drive to become global giants.

However, the number of PSEs (Public Sector Enterprises) having Navaratna status is now more than 15 industries.

Answer: (d)

The present Trade Policy (2009–14) of the government of India aims to achieve an annual export growth rate of 15%. Mr Anand Sharma announced the Foreign Trade Policy 2009 – 2014 on 27th August 2009 covering various measures that will be taken to boost foreign trade.

Answer: (d)

The first notable attempt in the steel industry in India was made in 1874 when the Bengal Iron Works (BIW) came into being at Kulti, near Asansol in West Bengal.

The Bhilai Steel Plant, located in Bhilai, in the Indian state of Chhattisgarh was set up with the help of the USSR in 1955. SAIL Rourkela Steel Plant (RSP), located in Rourkela, Odisha is the first integrated steel plant in the public sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes in the 60s.

Bokaro Steel Plant is located in the Bokaro district of Jharkhand. It is the fourth integrated public sector steel plant in India built with Soviet help in 1972.

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.

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.