Industrial Policy in India: Objectives and Strategies

Description: This quiz is designed to assess your understanding of the objectives and strategies of industrial policy in India. The quiz covers various aspects of industrial policy, including its historical evolution, key objectives, and the different strategies adopted by the government to achieve these objectives.
Number of Questions: 14
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Tags: industrial policy objectives strategies economic policy planning
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What is the primary objective of industrial policy in India?

  1. To promote rapid industrial growth

  2. To ensure equitable distribution of income

  3. To protect domestic industries from foreign competition

  4. To promote exports and reduce imports


Correct Option: A
Explanation:

The primary objective of industrial policy in India is to promote rapid industrial growth. This is because industrial growth is seen as a key driver of economic growth and development.

Which of the following is not a strategy adopted by the government of India to promote industrial growth?

  1. Providing subsidies to industries

  2. Imposing tariffs on imported goods

  3. Promoting foreign direct investment

  4. Providing loans to entrepreneurs


Correct Option: D
Explanation:

Providing loans to entrepreneurs is not a strategy adopted by the government of India to promote industrial growth. The other three options are all strategies that have been used by the government to promote industrial growth.

Which of the following is a key objective of industrial policy in India?

  1. To promote balanced regional development

  2. To reduce income inequality

  3. To promote employment generation

  4. To promote technological advancement


Correct Option:
Explanation:

All of the above are key objectives of industrial policy in India. The government aims to achieve these objectives through a variety of strategies, including providing subsidies to industries, imposing tariffs on imported goods, promoting foreign direct investment, and providing loans to entrepreneurs.

Which of the following is a strategy adopted by the government of India to promote balanced regional development?

  1. Establishing industrial estates in backward areas

  2. Providing tax incentives to industries located in backward areas

  3. Developing infrastructure in backward areas

  4. All of the above


Correct Option: D
Explanation:

All of the above are strategies adopted by the government of India to promote balanced regional development. The government aims to achieve this objective by providing incentives to industries to locate in backward areas, developing infrastructure in these areas, and establishing industrial estates.

Which of the following is a strategy adopted by the government of India to promote employment generation?

  1. Providing subsidies to labor-intensive industries

  2. Imposing tariffs on imported goods that compete with domestic products

  3. Promoting foreign direct investment in labor-intensive industries

  4. All of the above


Correct Option: D
Explanation:

All of the above are strategies adopted by the government of India to promote employment generation. The government aims to achieve this objective by providing incentives to labor-intensive industries, imposing tariffs on imported goods that compete with domestic products, and promoting foreign direct investment in labor-intensive industries.

Which of the following is a strategy adopted by the government of India to promote technological advancement?

  1. Providing subsidies to research and development

  2. Establishing technology parks

  3. Promoting foreign direct investment in high-tech industries

  4. All of the above


Correct Option: D
Explanation:

All of the above are strategies adopted by the government of India to promote technological advancement. The government aims to achieve this objective by providing incentives to research and development, establishing technology parks, and promoting foreign direct investment in high-tech industries.

Which of the following is a key challenge faced by the government of India in implementing its industrial policy?

  1. Lack of financial resources

  2. Lack of skilled labor

  3. Inadequate infrastructure

  4. All of the above


Correct Option: D
Explanation:

All of the above are key challenges faced by the government of India in implementing its industrial policy. The government needs to address these challenges in order to achieve its objectives of rapid industrial growth, balanced regional development, employment generation, and technological advancement.

What is the role of the private sector in industrial development in India?

  1. The private sector is the primary driver of industrial growth

  2. The private sector plays a complementary role to the public sector

  3. The private sector is not involved in industrial development

  4. None of the above


Correct Option: A
Explanation:

The private sector is the primary driver of industrial growth in India. The government plays a complementary role by providing incentives to industries, developing infrastructure, and promoting foreign direct investment.

Which of the following is a key feature of industrial policy in India?

  1. It is based on the principle of self-reliance

  2. It is export-oriented

  3. It is import-substitution oriented

  4. It is a combination of self-reliance and export-orientation


Correct Option: D
Explanation:

Industrial policy in India is based on the principle of self-reliance, which means that the country should aim to produce as much as possible of what it needs. However, the policy is also export-oriented, which means that the country should also aim to export goods and services to other countries.

Which of the following is a key objective of industrial policy in India?

  1. To promote rapid industrial growth

  2. To ensure equitable distribution of income

  3. To protect domestic industries from foreign competition

  4. All of the above


Correct Option: D
Explanation:

All of the above are key objectives of industrial policy in India. The government aims to achieve these objectives through a variety of strategies, including providing subsidies to industries, imposing tariffs on imported goods, promoting foreign direct investment, and providing loans to entrepreneurs.

Which of the following is a strategy adopted by the government of India to protect domestic industries from foreign competition?

  1. Imposing tariffs on imported goods

  2. Providing subsidies to domestic industries

  3. Restricting foreign direct investment

  4. All of the above


Correct Option: D
Explanation:

All of the above are strategies adopted by the government of India to protect domestic industries from foreign competition. The government aims to achieve this objective by imposing tariffs on imported goods, providing subsidies to domestic industries, and restricting foreign direct investment.

Which of the following is a key challenge faced by the government of India in implementing its industrial policy?

  1. Lack of financial resources

  2. Lack of skilled labor

  3. Inadequate infrastructure

  4. All of the above


Correct Option: D
Explanation:

All of the above are key challenges faced by the government of India in implementing its industrial policy. The government needs to address these challenges in order to achieve its objectives of rapid industrial growth, balanced regional development, employment generation, and technological advancement.

What is the role of the private sector in industrial development in India?

  1. The private sector is the primary driver of industrial growth

  2. The private sector plays a complementary role to the public sector

  3. The private sector is not involved in industrial development

  4. None of the above


Correct Option: A
Explanation:

The private sector is the primary driver of industrial growth in India. The government plays a complementary role by providing incentives to industries, developing infrastructure, and promoting foreign direct investment.

Which of the following is a key feature of industrial policy in India?

  1. It is based on the principle of self-reliance

  2. It is export-oriented

  3. It is import-substitution oriented

  4. It is a combination of self-reliance and export-orientation


Correct Option: D
Explanation:

Industrial policy in India is based on the principle of self-reliance, which means that the country should aim to produce as much as possible of what it needs. However, the policy is also export-oriented, which means that the country should also aim to export goods and services to other countries.

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