MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO LICENSING OF INDUSTRIES AND REGULATION OF INDUSTRIAL ACTIVITIES UNDER VARIOUS INDUSTRIAL LICENSING LAWS
Which body is responsible for the regulation of industrial licensing in India?
a) Ministry of Commerce and Industry
b) Ministry of Corporate Affairs
c) Reserve Bank of India
d) Securities and Exchange Board of India (SEBI)
Answer: a) Ministry of Commerce and Industry
The Industries (Development and Regulation) Act was enacted in which year to regulate the industrial sector in India?
a) 1947
b) 1951
c) 1961
d) 1971
Answer: c) 1961
Which of the following industries in India require industrial licensing as per the Industries (Development and Regulation) Act?
a) Small-scale industries
b) Medium-scale industries
c) Large-scale industries
d) Cottage industries
Answer: c) Large-scale industries
The Industrial Licensing Policy of 1991 introduced which major change regarding industrial licensing in India?
a) Abolition of industrial licensing for all industries
b) Introduction of a new system of licensing for small-scale industries
c) Stricter regulations on licensing for export-oriented industries
d) Expansion of licensing requirements for all industries
Answer: a) Abolition of industrial licensing for all industries
Which authority is responsible for granting industrial licenses for industries falling under the compulsory licensing category?
a) Ministry of Finance
b) Reserve Bank of India (RBI)
c) Ministry of Commerce and Industry
d) State Government
Answer: c) Ministry of Commerce and Industry
Which of the following is NOT a criterion for obtaining an industrial license in India?
a) Utilization of indigenous resources
b) Export potential
c) Technological collaboration
d) Annual turnover
Answer: d) Annual turnover
Which committee was formed to review the industrial licensing policy in India in 1991?
a) Abid Hussain Committee
b) Raghuram Rajan Committee
c) Manmohan Singh Committee
d) Montek Singh Ahluwalia Committee
Answer: a) Abid Hussain Committee
Under the current industrial policy, which of the following industries still require compulsory industrial licensing?
a) Large-scale industries
b) Medium-scale industries
c) Small-scale industries
d) Cottage industries
Answer: a) Large-scale industries
Which act replaced the Industries (Development and Regulation) Act, 1951, in 2017 to further liberalize industrial licensing in India?
a) Foreign Exchange Management Act
b) Industrial Disputes Act
c) Companies Act
d) The Industries (Development and Regulation) Amendment Act
Answer: d) The Industries (Development and Regulation) Amendment Act
The process of obtaining an industrial license in India involves the submission of an application to which authority?
a) Ministry of Micro, Small and Medium Enterprises (MSME)
b) Ministry of Corporate Affairs
c) Department for Promotion of Industry and Internal Trade (DPIIT)
d) Ministry of Finance
Answer: c) Department for Promotion of Industry and Internal Trade (DPIIT)
Which category of industries in India was exempted from industrial licensing even before the Industrial Policy of 1991?
a) Export-oriented industries
b) Cottage industries
c) Heavy machinery industries
d) Pharmaceutical industries
Answer: b) Cottage industries
Which body was established to facilitate the process of industrial licensing and promote ease of doing business in India?
a) Competition Commission of India (CCI)
b) National Manufacturing Competitiveness Council (NMCC)
c) Bureau of Indian Standards (BIS)
d) Central Pollution Control Board (CPCB)
Answer: b) National Manufacturing Competitiveness Council (NMCC)
The Industrial Licensing Policy of 1991 introduced which concept to promote industrial growth in India?
a) Import substitution
b) Export promotion
c) Monopoly control
d) Centralized planning
Answer: b) Export promotion
Which of the following industries requires both industrial licensing and environmental clearance in India?
a) Software industry
b) Textile industry
c) Petroleum refining industry
d) Handicraft industry
Answer: c) Petroleum refining industry
Which committee recommended the abolition of industrial licensing for all industries except for a shortlist of industries in India?
a) Abid Hussain Committee
b) Raghuram Rajan Committee
c) Narasimham Committee
d) Yashwant Sinha Committee
Answer: a) Abid Hussain Committee
Which amendment to the Industrial Policy Resolution of 1956 allowed for the delicensing of several industries in India?
a) 1977
b) 1985
c) 1991
d) 2005
Answer: b) 1985
Which authority is responsible for enforcing industrial safety regulations in India?
a) Ministry of Labour and Employment
b) Ministry of Environment, Forest and Climate Change
c) Ministry of Commerce and Industry
d) Ministry of Home Affairs
Answer: a) Ministry of Labour and Employment
The requirement of industrial licensing is primarily aimed at:
a) Promoting monopolistic control
b) Ensuring quality standards
c) Regulating the growth of certain industries
d) Encouraging foreign investment
Answer: c) Regulating the growth of certain industries
Which of the following acts was introduced to regulate the location of industries to prevent environmental degradation?
a) Environment Protection Act
b) Wildlife Protection Act
c) Forest Conservation Act
d) Coastal Regulation Zone Notification
Answer: a) Environment Protection Act
Which of the following is NOT a condition for obtaining industrial license under the current policy?
a) Foreign equity participation
b) Location of the industry
c) Productivity levels
d) Employment generation
Answer: c) Productivity levels
Which of the following agencies is responsible for issuing environmental clearances for industries in India?
a) Central Pollution Control Board (CPCB)
b) Ministry of Corporate Affairs
c) Ministry of Commerce and Industry
d) Securities and Exchange Board of India (SEBI)
Answer: a) Central Pollution Control Board (CPCB)
The concept of ‘de-licensing’ of industries in India primarily aimed to:
a) Encourage bureaucratic control
b) Promote decentralization of industrial growth
c) Expand the government’s regulatory powers
d) Discourage foreign investment
Answer: b) Promote decentralization of industrial growth
The abolition of industrial licensing in 1991 was a significant step towards:
a) Centralizing industrial growth
b) Reducing government intervention in business
c) Increasing trade barriers
d) Strengthening labor unions
Answer: b) Reducing government intervention in business
Which government body oversees the enforcement of labor laws related to industrial activities in India?
a) Ministry of Labour and Employment
b) Ministry of Commerce and Industry
c) Ministry of Corporate Affairs
d) Ministry of Finance
Answer: a) Ministry of Labour and Employment
Which sector in India has witnessed significant growth following the liberalization of industrial licensing policies in 1991?
a) Agriculture
b) Services
c) Mining
d) Construction
Answer: b) Services
The Industries (Development and Regulation) Act, 1951, aimed to:
a) Encourage monopolies in the industrial sector
b) Facilitate foreign direct investment
c) Regulate the development of industries
d) Promote small-scale industries exclusively
Answer: c) Regulate the development of industries
Which body regulates foreign direct investment (FDI) in industrial sectors in India?
a) Reserve Bank of India (RBI)
b) Ministry of Commerce and Industry
c) Securities and Exchange Board of India (SEBI)
d) Competition Commission of India (CCI)
Answer: b) Ministry of Commerce and Industry
Which of the following is NOT a reason for the abolition of industrial licensing in India?
a) Promotion of competition
b) Enhancing efficiency and productivity
c) Attracting foreign monopolies
d) Facilitating technological innovation
Answer: c) Attracting foreign monopolies
Which policy shift occurred regarding industrial licensing in India in the post-1991 era?
a) From control to regulation
b) From regulation to complete abolition
c) From privatization to nationalization
d) From decentralization to centralization
Answer: b) From regulation to complete abolition
The term “MRTP Act” stands for:
a) Monopolistic and Restrictive Trade Practices Act
b) Manufacturing and Regulatory Trade Practices Act
c) Medium and Regulated Trade Policies Act
d) Monsoon and Regional Trade Provisions Act
Answer: a) Monopolistic and Restrictive Trade Practices Act
The MRTP Act, 1969, aimed to prevent:
a) Monopolies and restrictive trade practices
b) Small-scale industries
c) Export-oriented industries
d) Foreign direct investment
Answer: a) Monopolies and restrictive trade practices
Which committee recommended the dismantling of the License Raj system in India?
a) Raj Committee
b) Narasimham Committee
c) Rangarajan Committee
d) Montek Singh Ahluwalia Committee
Answer: c) Rangarajan Committee
The concept of “License Raj” in India refers to:
a) The system of compulsory licensing for industries
b) The liberalization of trade policies
c) The implementation of environmental regulations
d) The promotion of foreign investment
Answer: a) The system of compulsory licensing for industries
The Small Scale Industries (SSI) sector in India was exempted from industrial licensing for units with an investment in plant and machinery up to:
a) ₹ 2 crores
b) ₹ 5 crores
c) ₹ 10 crores
d) ₹ 25 crores
Answer: b) ₹ 5 crores
Which of the following is NOT a type of industrial license in India?
a) Compulsory license
b) Automatic license
c) Prior approval license
d) Environmental license
Answer: d) Environmental license
The Micro, Small, and Medium Enterprises (MSME) sector in India is primarily regulated by:
a) Ministry of Finance
b) Ministry of Micro, Small, and Medium Enterprises (MSME)
c) Ministry of Corporate Affairs
d) Reserve Bank of India (RBI)
Answer: b) Ministry of Micro, Small, and Medium Enterprises (MSME)
Which act was introduced to replace the Foreign Exchange Regulation Act (FERA) to liberalize foreign exchange regulations?
a) Foreign Exchange Management Act (FEMA)
b) Foreign Direct Investment (FDI) Act
c) Foreign Trade Policy Act
d) Foreign Investment Promotion Act
Answer: a) Foreign Exchange Management Act (FEMA)
The concept of “fast-track” industrial approvals in India aims to:
a) Increase bureaucratic delays
b) Streamline the process of obtaining licenses
c) Impose stricter regulations on industries
d) Promote monopolistic practices
Answer: b) Streamline the process of obtaining licenses
The Department for Promotion of Industry and Internal Trade (DPIIT) operates under the jurisdiction of which ministry?
a) Ministry of Commerce and Industry
b) Ministry of Finance
c) Ministry of External Affairs
d) Ministry of Home Affairs
Answer: a) Ministry of Commerce and Industry
Which of the following is NOT a step taken by the Indian government to ease the process of doing business in the country?
a) Introduction of Goods and Services Tax (GST)
b) Implementation of Insolvency and Bankruptcy Code (IBC)
c) Strengthening of intellectual property rights (IPR) protection
d) Imposition of stricter regulations on foreign investment
Answer: d) Imposition of stricter regulations on foreign investment
Which of the following are objectives of industrial licensing in India? Select all that apply.
a) Promote monopolies
b) Regulate industrial growth
c) Ensure equitable distribution of resources
d) Encourage foreign investment
e) Ensure quality standards
Answer: b) Regulate industrial growth and e) Ensure quality standards
Which of the following are consequences of the abolition of industrial licensing in India? Select all that apply.
a) Increased competition
b) Reduction in bureaucratic hurdles
c) Facilitation of technological innovation
d) Decline in industrial growth
e) Enhanced efficiency and productivity
Answer: a) Increased competition, b) Reduction in bureaucratic hurdles, c) Facilitation of technological innovation, and e) Enhanced efficiency and productivity
Which of the following bodies are involved in the process of environmental clearance for industries in India? Select all that apply.
a) Central Pollution Control Board (CPCB)
b) Ministry of Environment, Forest and Climate Change
c) State Pollution Control Boards (SPCBs)
d) Ministry of Commerce and Industry
Answer: a) Central Pollution Control Board (CPCB), b) Ministry of Environment, Forest and Climate Change, and c) State Pollution Control Boards (SPCBs)
Which of the following industries were exempted from industrial licensing even before the Industrial Policy of 1991? Select all that apply.
a) Large-scale industries
b) Small-scale industries
c) Cottage industries
d) Export-oriented industries
Answer: b) Small-scale industries and c) Cottage industries
Which factors influence the grant of industrial license in India? Select all that apply.
a) Foreign equity participation
b) Technological collaboration
c) Location of the industry
d) Political affiliation
Answer: a) Foreign equity participation, b) Technological collaboration, and c) Location of the industry
Which acts or regulations govern the enforcement of labor laws related to industrial activities in India? Select all that apply.
a) Industrial Disputes Act
b) Factories Act
c) Environment Protection Act
d) Minimum Wages Act
Answer: a) Industrial Disputes Act, b) Factories Act, and d) Minimum Wages Act
Which bodies are responsible for the regulation of foreign direct investment (FDI) in industrial sectors in India? Select all that apply.
a) Reserve Bank of India (RBI)
b) Ministry of Commerce and Industry
c) Securities and Exchange Board of India (SEBI)
d) Competition Commission of India (CCI)
Answer: a) Reserve Bank of India (RBI) and b) Ministry of Commerce and Industry
Which committees or commissions recommended policy changes regarding industrial licensing in India? Select all that apply.
a) Abid Hussain Committee
b) Raghuram Rajan Committee
c) Narasimham Committee
d) Montek Singh Ahluwalia Committee
Answer: a) Abid Hussain Committee, b) Raghuram Rajan Committee, and d) Montek Singh Ahluwalia Committee
Which bodies oversee the enforcement of safety regulations in industries in India? Select all that apply.
a) Ministry of Labour and Employment
b) Ministry of Environment, Forest and Climate Change
c) Ministry of Corporate Affairs
d) Central Pollution Control Board (CPCB)
Answer: a) Ministry of Labour and Employment and b) Ministry of Environment, Forest and Climate Change
Which factors influenced the liberalization of industrial licensing policies in India? Select all that apply.
a) Technological advancement
b) Globalization
c) Domestic political pressure
d) Economic crisis
Answer: a) Technological advancement, b) Globalization, and d) Economic crisis
