MULTIPLE-CHOICE QUESTIONS WITH ANSWERS

MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO LICENSING OF INDUSTRIES AND REGULATION OF INDUSTRIAL ACTIVITIES UNDER VARIOUS INDUSTRIAL LICENSING LAWS ETC

Which government body in India is primarily responsible for the regulation and licensing of industries?
A) Ministry of Finance
B) Ministry of Commerce and Industry
C) Ministry of External Affairs
D) Ministry of Agriculture and Farmers Welfare
Answer: B) Ministry of Commerce and Industry

Which act was enacted in India to regulate the licensing of industrial activities?
A) Foreign Exchange Management Act (FEMA)
B) Industrial Development Regulation Act (IDRA)
C) Companies Act
D) Competition Act
Answer: B) Industrial Development Regulation Act (IDRA)

Under the IDRA, what was the criterion for obtaining an industrial license for setting up a manufacturing unit?
A) Payment of a fixed fee
B) Approval from local authorities
C) Approval from the Ministry of Environment
D) Approval from the Central Government
Answer: D) Approval from the Central Government

The purpose of industrial licensing in India was primarily to:
A) Encourage monopolistic practices
B) Control and regulate industrial growth
C) Promote foreign direct investment
D) Simplify business procedures
Answer: B) Control and regulate industrial growth

In which year was the Industrial Development Regulation Act (IDRA) repealed in India?
A) 1980
B) 1991
C) 2005
D) 2010
Answer: B) 1991

After the repeal of the IDRA, industrial licensing in India was largely replaced by:
A) Self-certification by industries
B) No licensing requirements
C) Industrial policy reforms and liberalization
D) State-level regulations
Answer: C) Industrial policy reforms and liberalization

Which government initiative replaced the concept of industrial licensing with a system of liberalization and deregulation in India?
A) Make in India
B) Skill India
C) New Economic Policy
D) Swachh Bharat Abhiyan
Answer: C) New Economic Policy

Which industry sector in India is still subject to licensing and regulation even after the repeal of IDRA?
A) Manufacturing sector
B) Services sector
C) Information Technology sector
D) Defense sector
Answer: D) Defense sector

Which body was responsible for granting industrial licenses under the Industrial Development Regulation Act (IDRA)?
A) State Government
B) District Magistrate
C) Reserve Bank of India
D) Chief Controller of Imports and Exports
Answer: D) Chief Controller of Imports and Exports

The system of industrial licensing in India was initially introduced during which period?
A) Pre-independence era
B) 1950s
C) 1980s
D) 1990s
Answer: B) 1950s

The process of industrial licensing in India involved scrutiny of:
A) Business ethics
B) Export potential
C) Production capacity
D) Social media presence
Answer: C) Production capacity

Which industry was subject to a dual licensing system in India during the era of the Industrial Policy of 1956?
A) Textile industry
B) Pharmaceutical industry
C) Automobile industry
D) Steel industry
Answer: D) Steel industry

The abolition of industrial licensing in India was primarily aimed at:
A) Reducing government intervention in the economy
B) Encouraging small-scale industries
C) Enhancing bureaucratic control
D) Promoting state monopolies
Answer: A) Reducing government intervention in the economy

Which term describes the process by which industries were subjected to licensing based on their production capacity in India?
A) Quota system
B) Reservation policy
C) MRTP Act
D) Capacity licensing
Answer: D) Capacity licensing

Which government body replaced the Office of the Chief Controller of Imports and Exports after the repeal of the Industrial Development Regulation Act (IDRA)?
A) Reserve Bank of India
B) Directorate General of Foreign Trade
C) Securities and Exchange Board of India
D) Ministry of Home Affairs
Answer: B) Directorate General of Foreign Trade

Which sector was kept out of the purview of industrial licensing in India even during the pre-liberalization era?
A) Textile sector
B) Defense sector
C) Electronics sector
D) Automobile sector
Answer: B) Defense sector

The Foreign Exchange Regulation Act (FERA) was primarily aimed at regulating:
A) Import and export activities
B) Foreign investment and payments
C) Industrial production capacity
D) Labor relations in multinational corporations
Answer: B) Foreign investment and payments

Which committee recommended the abolition of industrial licensing in India?
A) Rangarajan Committee
B) Abid Hussain Committee
C) Arjun Sengupta Committee
D) Montek Singh Ahluwalia Committee
Answer: B) Abid Hussain Committee

Which economic reform policy led to the deregulation and liberalization of the Indian economy in the 1990s?
A) New Industrial Policy
B) Import Substitution Policy
C) Green Revolution
D) Swadeshi Movement
Answer: A) New Industrial Policy

Which act replaced the Foreign Exchange Regulation Act (FERA) to liberalize foreign exchange transactions in India?
A) Foreign Exchange Management Act (FEMA)
B) Special Economic Zones Act
C) Foreign Trade (Development and Regulation) Act
D) Competition Act
Answer: A) Foreign Exchange Management Act (FEMA)

Which industrial sector was the focus of the ‘License Raj’ in India?
A) Information Technology
B) Agriculture
C) Textiles
D) Services
Answer: C) Textiles

The de-licensing of industries in India aimed to:
A) Increase bureaucratic control
B) Promote competition and efficiency
C) Limit the growth of small-scale industries
D) Facilitate foreign monopolies
Answer: B) Promote competition and efficiency

Which term describes the process of freeing up an economy from government regulations and restrictions?
A) Privatization
B) Liberalization
C) Globalization
D) Nationalization
Answer: B) Liberalization

Which government body was responsible for overseeing the implementation of industrial licensing policies in India?
A) Ministry of Home Affairs
B) Ministry of Commerce and Industry
C) Planning Commission
D) Ministry of Agriculture
Answer: B) Ministry of Commerce and Industry

The policy of industrial licensing in India was primarily aimed at:
A) Encouraging competition
B) Regulating industrial growth
C) Promoting monopolies
D) Simplifying business procedures
Answer: B) Regulating industrial growth

Which economic principle advocates for minimal government intervention in market activities?
A) Mercantilism
B) Laissez-faire
C) Keynesianism
D) Socialism
Answer: B) Laissez-faire

Which sector was initially excluded from the process of industrial licensing in India?
A) Heavy machinery
B) Consumer goods
C) Defense
D) Pharmaceuticals
Answer: C) Defense

The New Economic Policy of 1991 aimed to:
A) Increase government control over the economy
B) Promote import substitution
C) Liberalize the Indian economy
D) Enhance protectionism
Answer: C) Liberalize the Indian economy

Which regulatory body oversees foreign trade and commerce in India?
A) Reserve Bank of India
B) Ministry of External Affairs
C) Directorate General of Foreign Trade
D) Planning Commission
Answer: C) Directorate General of Foreign Trade

Which committee recommended the abolition of the Industrial Licensing system in India?
A) Raj Committee
B) Narasimhan Committee
C) Abid Hussain Committee
D) Rangarajan Committee
Answer: C) Abid Hussain Committee

Which of the following was NOT a reason for the abolition of the Industrial Licensing system in India?
A) Encouragement of entrepreneurship
B) Promoting foreign monopolies
C) Streamlining administrative processes
D) Facilitating economic growth
Answer: B) Promoting foreign monopolies

Which sector in India faced significant barriers to entry due to stringent industrial licensing regulations?
A) Automotive
B) Pharmaceutical
C) Textile
D) Information Technology
Answer: B) Pharmaceutical

The dismantling of the License Raj aimed to:
A) Concentrate industrial power in the hands of the government
B) Stifle innovation and competition
C) Promote economic liberalization and growth
D) Encourage bureaucratic control
Answer: C) Promote economic liberalization and growth

The MRTP Act (Monopolies and Restrictive Trade Practices Act) was enacted to:
A) Facilitate monopolistic practices
B) Regulate competition and prevent monopolies
C) Restrict the entry of foreign companies
D) Promote cartelization
Answer: B) Regulate competition and prevent monopolies

Which term describes the process of eliminating trade barriers between countries?
A) Protectionism
B) Bilateral trade
C) Free trade
D) Dumping
Answer: C) Free trade

Which sector in India was subject to a system of Industrial Licensing prior to liberalization?
A) Agriculture
B) Information Technology
C) Telecommunications
D) Electronics
Answer: D) Electronics

The phasing out of Industrial Licensing aimed to:
A) Enhance bureaucratic control
B) Encourage innovation and competition
C) Promote state monopolies
D) Limit the growth of small-scale industries
Answer: B) Encourage innovation and competition

The Industrial Policy Resolution of 1956 emphasized:
A) The promotion of small-scale industries
B) The growth of the public sector
C) Import substitution
D) Export-oriented industrialization
Answer: B) The growth of the public sector

Which economic policy aimed to reduce the role of the public sector and encourage private enterprise in India?
A) Import Substitution Policy
B) License Raj
C) Mixed Economy
D) New Economic Policy
Answer: D) New Economic Policy

Which term refers to the process of transferring ownership of a business, enterprise, agency, or public service from the public sector to the private sector?
A) Nationalization
B) Privatization
C) Deregulation
D) Globalization
Answer: B) Privatization

Which government body in India was responsible for implementing the MRTP Act?
A) Ministry of Finance
B) Ministry of Commerce and Industry
C) Competition Commission of India
D) Planning Commission
Answer: C) Competition Commission of India

The concept of ‘License Raj’ in India referred to:
A) A system of bureaucratic controls and regulations hindering economic growth
B) A scheme to promote foreign investments
C) A policy to encourage entrepreneurship
D) A program for rural development
Answer: A) A system of bureaucratic controls and regulations hindering economic growth

The National Manufacturing Policy (NMP) of India aimed to:
A) Encourage the growth of cottage industries
B) Promote sustainable industrial development
C) Increase imports to boost industrial output
D) Strengthen monopolies in the manufacturing sector
Answer: B) Promote sustainable industrial development

Which industrial sector in India has witnessed significant growth post-liberalization?
A) Agriculture
B) Telecommunications
C) Handicrafts
D) Traditional textiles
Answer: B) Telecommunications

The Special Economic Zones (SEZs) in India were established to:
A) Concentrate industrial activities in specific regions
B) Promote small-scale industries
C) Encourage import substitution
D) Facilitate export-oriented growth
Answer: D) Facilitate export-oriented growth

Which act replaced the Foreign Exchange Regulation Act (FERA) to facilitate foreign exchange transactions in India?
A) Foreign Exchange Management Act (FEMA)
B) Export-Import (EXIM) Policy
C) Competition Act
D) Securities and Exchange Board of India (SEBI) Act
Answer: A) Foreign Exchange Management Act (FEMA)

The ‘Make in India’ initiative was launched to:
A) Attract foreign investment in the manufacturing sector
B) Promote import-dependent industries
C) Discourage domestic production
D) Strengthen the service sector
Answer: A) Attract foreign investment in the manufacturing sector

Which agency is responsible for granting environmental clearances for industrial projects in India?
A) Ministry of Commerce and Industry
B) Ministry of Environment, Forest and Climate Change
C) Ministry of Heavy Industries and Public Enterprises
D) Ministry of Rural Development
Answer: B) Ministry of Environment, Forest and Climate Change

The ‘Ease of Doing Business’ initiative in India aims to:
A) Increase bureaucratic hurdles for businesses
B) Promote corruption in the business sector
C) Facilitate a business-friendly environment
D) Encourage monopolies in the market
Answer: C) Facilitate a business-friendly environment

Which act introduced the concept of Intellectual Property Rights (IPR) protection in India?
A) Copyright Act
B) Patents Act
C) Trademarks Act
D) Designs Act
Answer: B) Patents Act

Which industrial sector in India is subject to stringent quality control measures by the Bureau of Indian Standards (BIS)?
A) Textiles
B) Electronics
C) Automotive
D) Pharmaceuticals
Answer: C) Automotive

The National Industrial Classification (NIC) system in India categorizes industries based on:
A) Size of the workforce
B) Geographic location
C) Nature of economic activity
D) Ownership structure
Answer: C) Nature of economic activity

Which government body oversees the regulation and promotion of exports from India?
A) Reserve Bank of India
B) Directorate General of Foreign Trade
C) Competition Commission of India
D) Securities and Exchange Board of India
Answer: B) Directorate General of Foreign Trade

The ‘Atmanirbhar Bharat Abhiyan’ (Self-reliant India Mission) aims to:
A) Increase dependence on imports
B) Promote self-sufficiency and reduce reliance on imports
C) Encourage foreign investment
D) Expand the service sector
Answer: B) Promote self-sufficiency and reduce reliance on imports

Which regulatory authority oversees the functioning of stock exchanges in India?
A) Reserve Bank of India
B) Securities and Exchange Board of India (SEBI)
C) Competition Commission of India
D) Ministry of Finance
Answer: B) Securities and Exchange Board of India (SEBI)

The ‘National Investment and Manufacturing Zones’ (NIMZs) aim to:
A) Promote agricultural production
B) Facilitate the growth of manufacturing industries
C) Encourage the service sector
D) Develop tourism infrastructure
Answer: B) Facilitate the growth of manufacturing industries

Which agency in India is responsible for regulating and supervising the insurance sector?
A) Reserve Bank of India
B) Insurance Regulatory and Development Authority of India (IRDAI)
C) Securities and Exchange Board of India (SEBI)
D) Ministry of Finance
Answer: B) Insurance Regulatory and Development Authority of India (IRDAI)

The ‘Start-up India’ initiative aims to:
A) Discourage entrepreneurship
B) Promote small-scale industries
C) Facilitate the growth of start-up businesses
D) Strengthen established industries
Answer: C) Facilitate the growth of start-up businesses

The Industrial Disputes Act in India primarily deals with:
A) Environmental regulations for industries
B) Consumer protection in industrial activities
C) Settlement of disputes between employers and employees
D) Industrial licensing procedures
Answer: C) Settlement of disputes between employers and employees