Industry & Infrastructure MCQs for UPSC Prelims

55 practice questions on Industry & Infrastructure from the Economy section of the UPSC Prelims syllabus. 55 come with a written explanation and 27 are actual previous year questions. Try the sample set below - the answer stays hidden until you ask for it.

8 Easy 37 Medium 10 Hard 27 from past papers

Sample questions

Q1
Previous year question medium

With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct? 1. It is an organ of NITI Aayog. 2. It has a corpus of Rs. 4,00,000 crore at present. Select the correct answer using the code given below :

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: D - Neither 1 nor 2

Statement 1 is wrong: the National Investment and Infrastructure Fund is not an organ of NITI Aayog; it is a fund managed by NIIF Limited, registered with SEBI as an Alternative Investment Fund. Statement 2 is wrong: its proposed corpus was about Rs. 40,000 crore (with the government contributing up to 49 percent), not Rs. 4,00,000 crore. Since both statements are incorrect, the answer is 'Neither 1 nor 2'.

Q2
Previous year question medium

In India, in the overall Index of Industrial Production, the indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? 1. Cement 2. Fertilizers 3. Natural gas 4. Refinery products 5. Textiles Select the correct answer using the codes given below:

  1. A 1 and 5 only
  2. B 2, 3 and 4 only
  3. C 1, 2, 3 and 4 only
  4. D 1, 2, 3, 4 and 5
Show answer and explanation

Correct answer: C - 1, 2, 3 and 4 only

The Eight Core Industries that feed into the Index of Industrial Production are coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. From the given list, cement, fertilizers, natural gas and refinery products all qualify, so statements 1, 2, 3 and 4 are correct. Textiles, though a major industry, is not part of the eight core industries, so statement 5 is wrong, which rules out the all-inclusive option and the options that omit valid core items.

Q3
Previous year question medium

Consider the following statements : I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals. Which of the statements given above are correct?

  1. A I and II only
  2. B II and III only
  3. C I and III only
  4. D I, II and III
Show answer and explanation

Correct answer: C - I and III only

India joined the Minerals Security Partnership, a US-led grouping for critical mineral supply chains, so statement I is correct. India is import-dependent for several of its identified critical minerals and is not resource-rich in all 30, so statement II is wrong. The 2023 MMDR amendment empowered the Centre to exclusively auction leases and composite licences for specified critical and strategic minerals, so statement III is correct, giving I and III.

Q4
Previous year question medium

Consider the following statements : 1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes. 2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO). Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: A - 1 only

BIS certification (the ISI mark) is mandatory for automotive tyres and tubes for safety reasons, so statement 1 is correct. AGMARK is issued by the Directorate of Marketing and Inspection under the Ministry of Agriculture, not by the FAO, so statement 2 is wrong. Hence only statement 1 is correct.

Q5
Previous year question medium

In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

  1. A Coal production
  2. B Electricity generation
  3. C Fertilizer production
  4. D Steel production
Show answer and explanation

Correct answer: B - Electricity generation

Under the index as it stood in 2015 (base year 2004-05), electricity generation carried the highest weight at roughly 10.3 percent, reflecting its size and its linkage with every other sector. Steel came next at around 6.7 percent, coal at about 4.4 percent, and fertilizers had one of the smallest weights at roughly 1.25 percent, so the other three options are wrong. Note for current study: after the 2017 revision to the 2011-12 base, refinery products hold the largest weight, but the answer to this 2015 question per the official key is electricity.

Q6
Previous year question medium

With reference to the 'National Intellectual Property Rights Policy', consider the following statements : 1. It reiterates India's commitment to the Doha Development Agenda and the TRIPS Agreement. 2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India. Which of the above statements is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: C - Both 1 and 2

The National IPR Policy of 2016 reaffirms India's commitment to the Doha Development Agenda and the TRIPS Agreement, so statement 1 is correct. The Department of Industrial Policy and Promotion (DIPP) is the nodal agency for coordinating IPR matters in India, so statement 2 is correct. Hence both statements are correct.

Q7
Previous year question medium

With reference to the usefulness of the by-products of sugar industry, which of the following statements is/are correct? 1. Bagasse can be used as biomass fuel for the generation of energy. 2. Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers. 3. Molasses can be used for the production of ethanol. Select the correct answer using the codes given below.

  1. A 1 only
  2. B 2 and 3 only
  3. C 1 and 3 only
  4. D 1, 2 and 3
Show answer and explanation

Correct answer: C - 1 and 3 only

Bagasse, the fibrous residue left after juice extraction, is widely burnt in sugar mills for cogeneration of power, so statement 1 is correct. Molasses is fermented to produce ethanol (used in blending and for potable alcohol), so statement 3 is correct. Statement 2 is wrong because molasses is not a feedstock for synthetic chemical fertilizers; chemical fertilizers are made from sources such as natural gas and rock phosphate. Hence option (c).

Q8
Previous year question medium

Consider the following statements: 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 and 3 only
  3. C 3 only
  4. D 1, 2 and 3
Show answer and explanation

Correct answer: A - 1 only

Coking coal mines were nationalised in 1971-72 and non-coking coal mines in 1973, both during Indira Gandhi's prime ministership, so statement 1 is correct. After the Supreme Court cancelled earlier allocations, coal blocks are now allocated through transparent auctions or government allotment, not by lottery, so statement 2 is wrong. India continued to import substantial quantities of coal, especially coking coal, to meet domestic demand in 2019, so the claim of self-sufficiency in statement 3 is wrong. Hence 1 only.

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More Economy topics

Money, Banking & RBI 117 External Sector & Trade 106 Agricultural Economy 86 Balance of Payments & Forex 85 Fiscal Policy & Budget 85 Monetary Policy 82 Financial Markets & Institutions 81 Taxation & GST 73 Inflation & Prices 73 National Income & Growth 73 Poverty, Employment & Inclusive Growth 71 Capital Markets & Investment 70 International Economic Organisations 65 Banking Reforms & NPAs 62 Government Schemes & Policies 62 Planning & NITI Aayog 38