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 responsible for regulating industrial licensing?
a) Ministry of Finance
b) Ministry of Commerce and Industry
c) Ministry of Home Affairs
d) Ministry of External Affairs
Answer: b) Ministry of Commerce and Industry
The Industrial (Development and Regulation) Act, 1951 was enacted to:
a) Promote monopolistic practices in industries
b) Control and regulate industrial development in India
c) Deregulate all industries in India
d) Nationalize all industries in India
Answer: b) Control and regulate industrial development in India
Which of the following industries required compulsory licensing under the Industrial (Development and Regulation) Act, 1951?
a) Small-scale industries
b) Large-scale industries
c) Cottage industries
d) Service industries
Answer: b) Large-scale industries
The concept of liberalization in industrial licensing in India was introduced primarily during which period?
a) 1970s
b) 1980s
c) 1990s
d) 2000s
Answer: c) 1990s
Which policy marked a significant shift towards liberalization in industrial licensing in India?
a) Import substitution policy
b) Export promotion policy
c) Industrial licensing policy
d) New Industrial Policy
Answer: d) New Industrial Policy
Which government body was established to facilitate industrial approvals and clearances in India?
a) Industrial Licensing Authority of India (ILAI)
b) Department for Promotion of Industry and Internal Trade (DPIIT)
c) Central Industrial Development Board (CIDB)
d) Industrial Regulatory Commission (IRC)
Answer: b) Department for Promotion of Industry and Internal Trade (DPIIT)
Under the current industrial policy framework, which industries are exempted from obtaining industrial licenses?
a) Only large-scale industries
b) Only small-scale industries
c) Both large-scale and small-scale industries
d) Neither large-scale nor small-scale industries
Answer: d) Neither large-scale nor small-scale industries
Which act repealed the Industrial (Development and Regulation) Act, 1951, and introduced a new system of industrial licensing in India?
a) Industrial Regulation and Development Act, 1991
b) Industrial Policy Act, 1995
c) Industrial Development Act, 2000
d) Industrial Liberalization Act, 1993
Answer: a) Industrial Regulation and Development Act, 1991
Which of the following is NOT a requirement for obtaining an industrial license in India?
a) Land acquisition
b) Environmental clearance
c) Import-export license
d) Tax registration
Answer: c) Import-export license
Which of the following is responsible for enforcing environmental regulations on industrial activities in India?
a) Ministry of Commerce and Industry
b) Ministry of Environment, Forest and Climate Change
c) Ministry of Labour and Employment
d) Ministry of Agriculture and Farmers’ Welfare
Answer: b) Ministry of Environment, Forest and Climate Change
Which government agency is responsible for granting environmental clearance to industrial projects in India?
a) Central Pollution Control Board (CPCB)
b) Ministry of Environment, Forest and Climate Change (MoEFCC)
c) Indian Bureau of Mines (IBM)
d) National Green Tribunal (NGT)
Answer: b) Ministry of Environment, Forest and Climate Change (MoEFCC)
Which of the following acts regulates the establishment and operation of hazardous industries in India?
a) Factories Act, 1948
b) Environment Protection Act, 1986
c) Hazardous Substances Management Act, 1989
d) Industrial Disputes Act, 1947
Answer: c) Hazardous Substances Management Act, 1989
The system of Industrial Licensing in India was primarily introduced to:
a) Encourage monopoly in industries
b) Facilitate easy entry of foreign companies
c) Regulate the growth of industries to avoid concentration of economic power
d) Promote rapid industrialization in specific sectors
Answer: c) Regulate the growth of industries to avoid concentration of economic power
Which of the following is NOT considered a small-scale industry under Indian law?
a) Handloom weaving
b) Food processing unit with an investment of ₹10 million
c) Manufacturing of electrical components with an investment of ₹15 million
d) Cottage industry engaged in pottery making
Answer: c) Manufacturing of electrical components with an investment of ₹15 million
Which of the following industries requires both industrial licensing and environmental clearance in India?
a) Textile manufacturing
b) Software development
c) Mining of non-metallic minerals
d) Printing and publishing
Answer: c) Mining of non-metallic minerals
Which committee recommended the abolition of industrial licensing for most industries in India?
a) Rangarajan Committee
b) Chelliah Committee
c) Abid Hussain Committee
d) Narsimham Committee
Answer: c) Abid Hussain Committee
Which of the following sectors were opened up to 100% foreign direct investment (FDI) without prior approval in India?
a) Defense
b) Retail trading
c) Broadcasting
d) All of the above
Answer: d) All of the above
The Industrial Licensing Policy of 1991 aimed to:
a) Encourage the growth of public sector industries
b) Reduce bureaucratic control over industrial development
c) Promote import substitution
d) Restrict foreign investment in key sectors
Answer: b) Reduce bureaucratic control over industrial development
Which organization is responsible for the registration of micro, small, and medium enterprises (MSMEs) in India?
a) National Small Industries Corporation (NSIC)
b) Small Industries Development Bank of India (SIDBI)
c) Ministry of Micro, Small and Medium Enterprises (MSME)
d) Federation of Indian Chambers of Commerce and Industry (FICCI)
Answer: c) Ministry of Micro, Small and Medium Enterprises (MSME)
Which regulatory authority oversees the implementation of labor laws in industrial establishments in India?
a) Labor Bureau of India
b) Employees’ State Insurance Corporation (ESIC)
c) Ministry of Labor and Employment
d) National Human Rights Commission (NHRC)
Answer: c) Ministry of Labor and Employment
Which regulatory authority is responsible for granting licenses for the production, sale, and distribution of pharmaceuticals in India?
a) Ministry of Health and Family Welfare
b) Drug Controller General of India (DCGI)
c) Indian Pharmacopoeia Commission (IPC)
d) National Pharmaceutical Pricing Authority (NPPA)
Answer: b) Drug Controller General of India (DCGI)
The requirement of obtaining an Industrial License was abolished for all industries except for:
a) Defense and strategic industries
b) Chemical manufacturing industries
c) Heavy machinery industries
d) Pharmaceuticals and healthcare industries
Answer: a) Defense and strategic industries
Which Act deals with the regulation and control of foreign exchange transactions in India?
a) Foreign Investment Promotion Act (FIPA)
b) Foreign Exchange Management Act (FEMA)
c) Foreign Trade (Development and Regulation) Act
d) Foreign Exchange Regulation Act (FERA)
Answer: b) Foreign Exchange Management Act (FEMA)
Which of the following organizations regulates the insurance sector in India?
a) Securities and Exchange Board of India (SEBI)
b) Reserve Bank of India (RBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Ministry of Finance
Answer: c) Insurance Regulatory and Development Authority of India (IRDAI)
The setting up of Special Economic Zones (SEZs) in India aimed to:
a) Encourage foreign companies to set up industries in India
b) Promote export-oriented industries and generate employment
c) Concentrate industrial development in specific regions
d) Reduce taxation on domestic industries
Answer: b) Promote export-oriented industries and generate employment
Which ministry is responsible for regulating and promoting the coal industry in India?
a) Ministry of Mines
b) Ministry of Environment, Forest and Climate Change
c) Ministry of Coal
d) Ministry of Power
Answer: c) Ministry of Coal
The Bureau of Indian Standards (BIS) is responsible for:
a) Issuing industrial licenses for manufacturing units
b) Setting quality standards for goods and services
c) Regulating labor standards in industries
d) Licensing patents and trademarks
Answer: b) Setting quality standards for goods and services
Which government agency is responsible for enforcing competition laws in India?
a) Competition Commission of India (CCI)
b) Bureau of Indian Standards (BIS)
c) Ministry of Corporate Affairs
d) Securities and Exchange Board of India (SEBI)
Answer: a) Competition Commission of India (CCI)
Which of the following is NOT a condition for obtaining environmental clearance for industrial projects in India?
a) Submission of an environmental impact assessment report
b) Public consultation and clearance from local communities
c) Payment of a fee to the Ministry of Environment
d) Compensatory afforestation for forest land diversion
Answer: c) Payment of a fee to the Ministry of Environment
The concept of “Make in India” campaign primarily aims to:
a) Promote foreign direct investment in India
b) Encourage domestic manufacturing and boost the Indian economy
c) Attract skilled labor from other countries
d) Increase exports of Indian goods and services
Answer: b) Encourage domestic manufacturing and boost the Indian economy
Which government agency is responsible for granting licenses for the production and sale of alcoholic beverages in India?
a) Food Safety and Standards Authority of India (FSSAI)
b) Ministry of Food Processing Industries
c) State Excise Department
d) Directorate General of Foreign Trade (DGFT)
Answer: c) State Excise Department
Which act established the Securities and Exchange Board of India (SEBI) to regulate the securities market in India?
a) Companies Act, 2013
b) Securities Contracts (Regulation) Act, 1956
c) Foreign Exchange Management Act, 1999
d) Banking Regulation Act, 1949
Answer: b) Securities Contracts (Regulation) Act, 1956
Which government agency is responsible for granting licenses for the production and sale of pesticides in India?
a) Ministry of Agriculture and Farmers’ Welfare
b) Central Insecticides Board and Registration Committee (CIBRC)
c) Food Safety and Standards Authority of India (FSSAI)
d) Directorate General of Foreign Trade (DGFT)
Answer: b) Central Insecticides Board and Registration Committee (CIBRC)
Which of the following acts deals with the regulation and control of food safety in India?
a) Food Safety and Standards Act, 2006
b) Essential Commodities Act, 1955
c) Prevention of Food Adulteration Act, 1954
d) Indian Standards Institution (Certification Marks) Act, 1952
Answer: a) Food Safety and Standards Act, 2006
The Reserve Bank of India (RBI) regulates which of the following aspects of industrial activities?
a) Labor laws
b) Environmental regulations
c) Monetary policy and banking facilities
d) Taxation policies
Answer: c) Monetary policy and banking facilities
Which of the following industries is regulated by the Directorate General of Civil Aviation (DGCA) in India?
a) Textile manufacturing
b) Aviation and aerospace
c) Automobile manufacturing
d) Information technology
Answer: b) Aviation and aerospace
Which act introduced the concept of intellectual property rights (IPR) protection in India?
a) Indian Patents Act, 1970
b) Copyright Act, 1957
c) Trademarks Act, 1999
d) Designs Act, 2000
Answer: a) Indian Patents Act, 1970
The registration of trademarks in India is governed by:
a) Indian Patents Act, 1970
b) Copyright Act, 1957
c) Trademarks Act, 1999
d) Designs Act, 2000
Answer: c) Trademarks Act, 1999
Which government agency is responsible for regulating the mining industry in India?
a) Ministry of Environment, Forest and Climate Change
b) Ministry of Mines
c) Ministry of Commerce and Industry
d) Ministry of Home Affairs
Answer: b) Ministry of Mines
Which act established the Competition Commission of India (CCI) to prevent anti-competitive practices?
a) Competition Act, 2002
b) Monopolies and Restrictive Trade Practices Act, 1969
c) Foreign Exchange Management Act, 1999
d) Essential Commodities Act, 1955
Answer: a) Competition Act, 2002
The National Green Tribunal (NGT) was established under which act to handle environmental disputes and enforce environmental laws in India?
a) Environment Protection Act, 1986
b) Wildlife Protection Act, 1972
c) Water (Prevention and Control of Pollution) Act, 1974
d) Forest Conservation Act, 1980
Answer: a) Environment Protection Act, 1986
Which government agency is responsible for regulating the telecommunications industry in India?
a) Telecom Regulatory Authority of India (TRAI)
b) Department of Telecommunications (DoT)
c) Ministry of Information and Broadcasting
d) Indian Space Research Organisation (ISRO)
Answer: b) Department of Telecommunications (DoT)
The Patent Cooperation Treaty (PCT) facilitates the filing of international patent applications and is administered by:
a) World Trade Organization (WTO)
b) World Intellectual Property Organization (WIPO)
c) United Nations Educational, Scientific and Cultural Organization (UNESCO)
d) International Court of Justice (ICJ)
Answer: b) World Intellectual Property Organization (WIPO)
The Government of India has introduced the ‘Udyog Aadhaar’ scheme primarily for:
a) Environmental compliance for industries
b) Labor welfare in industrial establishments
c) Registration and recognition of micro, small and medium enterprises (MSMEs)
d) Promotion of foreign direct investment (FDI)
Answer: c) Registration and recognition of micro, small and medium enterprises (MSMEs)
The concept of ‘Single Window Clearance’ in industrial licensing refers to:
a) Issuance of licenses through a single government agency
b) Streamlining the process of obtaining various clearances from multiple agencies through a single portal
c) A single government agency responsible for both licensing and regulation of industries
d) Automation of the licensing process through a single online platform
Answer: b) Streamlining the process of obtaining various clearances from multiple agencies through a single portal
Which act regulates the establishment and operation of export-oriented units (EOUs) and special economic zones (SEZs) in India?
a) Foreign Trade (Development and Regulation) Act, 1992
b) Special Economic Zones Act, 2005
c) Export-Import Bank of India Act, 1981
d) Customs Act, 1962
Answer: b) Special Economic Zones Act, 2005
Which government body administers the customs duties and tariffs on imports and exports in India?
a) Central Board of Indirect Taxes and Customs (CBIC)
b) Directorate General of Foreign Trade (DGFT)
c) Reserve Bank of India (RBI)
d) Ministry of Commerce and Industry
Answer: a) Central Board of Indirect Taxes and Customs (CBIC)
The ‘Ease of Doing Business’ initiative by the Government of India primarily aims to:
a) Promote labor-intensive industries
b) Simplify regulatory processes and improve business environment
c) Encourage import substitution
d) Increase government intervention in business operations
Answer: b) Simplify regulatory processes and improve business environment
Which of the following agencies is responsible for regulating the quality and safety of food products in India?
a) Bureau of Indian Standards (BIS)
b) Food Safety and Standards Authority of India (FSSAI)
c) Directorate General of Foreign Trade (DGFT)
d) Ministry of Agriculture and Farmers’ Welfare
Answer: b) Food Safety and Standards Authority of India (FSSAI)
Which government agency is responsible for promoting foreign trade and regulating export-import policies in India?
a) Reserve Bank of India (RBI)
b) Ministry of Commerce and Industry
c) Directorate General of Foreign Trade (DGFT)
d) Export-Import Bank of India (EXIM Bank)
Answer: c) Directorate General of Foreign Trade (DGFT)
