Industrial Sector (Part 1) – Old Year Questions

• Fortune Magazine published the “Global 500” list in 2006, where Exxon Mobil ranked as the number one company in the world and Reliance Industries in India was 284th.
• In 2021, Walmart was the top-ranking company in the list, while Reliance Industries, State Bank of India and Indian Oil were ranked 155th, 205th and 212th respectively in India.

• Reliance Industries Limited was the biggest company in India in 2019, 2020, and 2021, according to the Fortune India List of 500 Companies/Corporations.
• This replaced Indian Oil Corporation, which had been the largest company in India for the last nine years.
• In 2021, State Bank of India was in second place and Indian Oil Corporation was in third.

• The Petroleum and Natural Gas Regulatory Board (PNGRB) was created in 2006, but it wasn’t the first regulatory body set up by the Government of India.
• Before that, there were other regulatory bodies like the Forward Market Commission (1952), SEBI (1988/1992), and IRDA (1999).
• Statement 1 is incorrect. The PNGRB Act of 2006 was created to protect the interests of consumers and entities involved in certain activities related to petroleum, petroleum products, and natural gas, and to promote competitive markets.
• Statement 2 is correct. Statement 3 is also correct because according to Article 30 of the PNGRB Act, the Appellate Tribunal established under section 110 of the Electricity Act, 2003 is the Appellate Tribunal for PNGRB appeals.

• India became the first country in the world to require companies to use some of their profits for social causes.
• The law, called the Companies Act, 2013, says that companies with certain levels of turnover and profits must spend 2% of their average net profit from the last three years on things like education, poverty, gender equality, and hunger. The two statements given are not correct.

• On April 1, 2014 India changed their Companies Act, 2013 to make Corporate Social Responsibility (CSR) legally required.
• Companies who make a certain amount of money must spend 2% of their profits over the last 3 years on CSR activities like education, poverty, gender equality, and hunger. The statements given are not correct.

• In June 2017, the Securities and Exchange Board of India (SEBI) created a 21-person committee on corporate governance led by banker Uday Kotak.
• The committee submitted their report to SEBI in October 2017, which included the following suggestions: listed companies should have at least 6 board members, one of which should be a woman, and half of the members should be independent directors.
• The chairman and managing director roles should be split, and the chairmanship should be held by a non-executive director.
• The audit committee, nomination and remuneration committee, and risk management committee should have stronger roles.

• The railway system has come up with a plan, called Mission 100% Electrification, to make sure that all 68,155 kilometers (RKM) of railway lines are powered by electricity by 2023.
• This will help the railway system become a “net zero” carbon emission network by 2030, which will cut down 60 million tons of emissions each year.

• Nashik’s Metro, which is the first of its kind, will be using rubber-based tyres instead of traditional rails.
• This is an innovative form of rapid transit that combines the technology of roads and rails.
• The vehicle wheels have rubber tyres like a bus, but using two parallel rollways made from concrete or steel.
• The Maharashtra State Cabinet approved this system, called ‘Metro Neo’, in August 2019 to improve connectivity in the city.

• On August 9, 2018, the Swedish furniture company IKEA opened its first showroom in India in Hyderabad.
• This is the first of 25 stores IKEA plans to open in India.
• They invested over Rs. 1000 crore on the Hyderabad store, including costs for land, building, and equipment.
• The store covers 13 acres and features around 7500 products.

• The Industrial Development Centre located in Banmore is in the Morena district of Madhya Pradesh.

• Madhya Pradesh’s Dewas and Indore have been named as two of India’s ‘towns of export excellence’, with Dewas specialising in pharmaceuticals and Indore in Soya meal and Soya products.

• In the 2015-16 Union Budget, the Finance Minister said that the way of developing infrastructure through public-private partnerships (PPP) needs to be looked at again and made better.
• To do this, a committee was established, led by Dr. Vijay Kelkar, to review and improve the PPP system of infrastructure development.
• The committee reported their findings to the Finance Ministry on November 19, 2015.

• The Bharatmala Project is a plan from the Government of India to improve roads and highways.
• It includes improving the movement of people and goods around the country by making connections between different places, connecting to other countries, improving roads by the coast and building new expressways.
• The government is funding the project.

• The National Infrastructure Pipeline (NIP) is a new, government-wide effort to give citizens access to quality infrastructure and improve their lives.
• It aims to get projects ready more quickly and get more investment in infrastructure.
• Prime Minister Narendra Modi mentioned NIP for the first time in his Independence Day speech in 2019.
• The goal of NIP is to make sure everyone is able to get access to infrastructure.
• The Task Force on NIP released their report for 2020-2025 on April 29, 2020, so (A) is not correct but (R) is correct.

• The Delhi-Mumbai Industrial Corridor (DMIC) is being worked on with help from Japan.
• India and Japan signed an agreement in 2006 to start the DMIC project.
• Japan is also helping with the Chennai-Bengaluru Industrial Corridor (CBIC) in Southern India.

• The Ministry of Finance established the Deepak Parekh Committee in December 2006 to come up with ideas to make it easier to finance India’s infrastructure.
• In its report in May 2007, the Committee said that there were economic and organizational issues when it came to financing infrastructure.
• Deepak Parekh was chosen once more to lead the high-level Committee on financing infrastructure in July 2012.

• In April 2018, the Indian Cellular Association (ICA) reported that in 2017, India had become the biggest producer of mobile phones in the world, behind only China.

Hence, option (a) gives the correct chronological order of these Credit Rating Agencies.

• The Government of India created the National Investment and Infrastructure Fund (NIIF) in 2015 to invest in infrastructure projects that are profitable.
• It is not a part of NITI Aayog.
• The fund was initially given Rs. 20,000 crore (around USD 6 billion) and this amount could be changed in the future by the Ministry of Finance. Both of the given statements about NIIF are incorrect.

• The Indian Government released the National Manufacturing Policy (NMP) on 4 November, 2011 with the goal of increasing the manufacturing sector’s contribution to the GDP to 25% in 10 years and creating 100 million jobs.
• The NMP plans to increase growth in the manufacturing sector to 12-14% over the period of time and make the Indian manufacturing sector more competitive.
• It also wants to help rural youth by teaching them skills so they can get jobs.

• The Indian Government announced the National Manufacturing Policy (NMP) on November 4th, 2011 in order to increase the manufacturing industry’s share of the GDP to 25%, create 100 million jobs, and help the sector grow 12-14% in the future.
• The NMP also wants to help rural youth by teaching them the skills needed to get a job.

• The Indian Government announced the National Manufacturing Policy on November 4, 2011.
• Its goal is to raise the manufacturing industry’s share of the Gross Domestic Product (GDP) to 25% and create 100 million jobs in the next 10 years.
• The policy is also designed to make the manufacturing sector more competitive on the global market and help young people in rural areas acquire the skills they need to get jobs.

• The Indian government has recently taken steps to help the manufacturing sector grow.
• This includes setting up National Investment and Manufacturing Zones with great infrastructure, a single window system for getting approvals, and a fund for acquiring and developing new technologies.
• All of these are part of the National Manufacturing Policy.

• NIMZs are a significant part of the National Manufacturing Policy of 2011.
• These are large areas of land that have all the necessary elements to encourage the production of high-quality goods.
• Up to December 2018, three NIMZs (Prakasam in Andhra Pradesh, Sangareddy in Telangana and Kalinganagar in Odisha) have been given the final go-ahead and 13 more have been given approval in principle.

• The ‘Make in India’ initiative was started by Prime Minister Narendra Modi on September 25, 2014.
• It was created by the Government of India to attract investment, inspire innovation, increase skill development, protect intellectual property, and create the best possible infrastructure for manufacturing in India.
• The main goal is to draw investments from around the world and strengthen India’s manufacturing industry.
• The program endeavors to increase India’s ranking in the Ease of Doing Business Index by eliminating unnecessary laws and regulations, reducing bureaucracy, and making Indian products more competitive while decreasing the cost of making them.

• PM Narendra Modi launched the ‘Make in India’ initiative on 25 September, 2014.
• This is a major plan from the Indian Government to encourage investment, create new ideas, teach skills, protect intellectual property, and build the best possible manufacturing equipment.
• The main goal is to get investments from other countries and make India’s manufacturing industry stronger.
• The programme is intended to improve India’s ranking on the Ease of Doing Business Index by getting rid of unnecessary laws, making bureaucratic processes easier, and reducing the cost of manufacturing.

• The Government of India started the Make in India program to persuade businesses to produce their goods in India and reward investments in production.
• This program was created in September 2014 by the Prime Minister and is represented by a logo of a moving lion made out of gears, which stands for manufacturing.

• Make in India, Ease of Doing Business, and Start-up India are all programs to help make it easier to invest in and build up India’s manufacturing and industrial sectors.
• Digital India is different – it’s a plan by the Indian government to make sure everyone in India has the basics of digital knowledge and access to digital services.
• Digital India has three main parts: making sure digital systems and networks are safe, making sure digital government services are available, and making sure everyone in India understands how to use digital services.

• Start-ups can get the money they need from self-funding, asking for donations, angel investors, venture capitalists, business programs that help develop companies, banks, and government programs like the MUDRA Scheme.

• In March 2016, President Pranab Mukherjee spoke at a meeting with people in the banking and finance industry.
• He suggested that modern ways of getting money, such as angel investors, venture capitalists, crowd funding, seed finance, and technology-based solutions, could be used to fund new projects.

• The Stand-Up India Scheme is for helping women and members of Scheduled Castes and Scheduled Tribes become entrepreneurs.
• The Department of Financial Services in India’s Ministry of Finance is responsible for it.
• Its goal is to give loan amounts between Rs. 10 lakh to Rs. 1 crore to at least one SC or ST borrower and one woman borrower from each bank to start a new business.
• SIDBI is in charge, with help from the Dalit Indian Chamber of Commerce and Industry and other organizations.
• SIDBI and the National Bank for Agriculture and Rural Development have been chosen as Stand Up Connect Centres.

• The Indian Government launched a program called ‘Stand-up India’ on April 5th, 2016 to help promote entrepreneurship among women and SC & ST communities.
• Banks will provide loans between 10 lakh to 1 crore rupees to at least one SC or ST borrower and one female borrower per bank branch to start their own business in the manufacturing, services, or trading sectors.

• The Prime Minister launched the Pradhan Mantri MUDRA Yojana on April 8, 2015.
• This scheme provides loans of up to 10 lakh rupees to small and micro businesses.
• These loans (called MUDRA loans) are given by banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.
• The borrower can apply online through the portal www.udyamimitra.in.
• This scheme has 3 types of loans: Shishu (for loans up to 50,000), Kishore (for loans up to 5 lakh), and Tarun (for loans up to 10 lakh).
• These loans are designed for businesses in different stages of growth.

• The Prime Minister launched the Pradhan Mantri MUDRA Yojana scheme on April 8, 2015 to give loans up to 10 lakh rupees to small and micro businesses that are not part of a corporation.
• These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs, and MUDRA will refinance them.
• People can apply for these loans at any of these institutions or online through the portal www.udyamimitra.in.
• PMMY has created three products: Shishu for loans up to Rs. 50,000, Kishore for loans up to Rs. 5 lakh, and Tarun for loans up to Rs. 10 lakh to mark the growth of micro units and provide a reference point for future progress.

• The Government of India created a program called Pradhan Mantri Mudra Yojana (PMMY) on April 8th, 2015 to give small businesses access to loans.
• There are three levels of loans available depending on how much money is needed:
  1. Shishu–Loans sanctioned under the PMMY scheme up to Rs. 50,000.
  2. Kishor–Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs. 5,00,000.
  3. Tarun–Loans sanctioned under the PMMY scheme from Rs. 5,00,001 up to Rs.10,00,000.

• The Quality Council of India (QCI) was created in 1997 by the Government of India in partnership with Indian industry.
• It is an independent organization overseen by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
• The QCI Council is made up of 38 members, including the Chairman, who is appointed by the Prime Minister based on industry recommendations. Therefore, both statements are correct.

• • Minimum Wages Act – 1948
  • Industries (Development and Regulation) Act – 1951
  • MRTP (Monopolistic and Restrictive Trade Practices) Act – 1969
  • FERA (Foreign Exchange Regulation Act) – 1973
• Hence, the correct chronological sequence is given in the option (c).

• Before the 1990s, Indian companies were heavily regulated. Since then, the government has been introducing reforms and the way corporations function and are governed has changed.
• Mergers and acquisitions (M&As) have become a more common way for companies to grow and expand.
• The Monopolies and Restrictive Trade Practices (MRTP) Act has been changed to allow larger businesses and foreign companies to go down the M&A route.
• The SEBI regulations and the Government allowing companies to buy back their own shares have impacted the corporate control market in India.
• The MRTP Act has also been replaced by the Competition Act, 2002 which is less strict when it comes to M&As.

• The Trade Disputes Act of 1929 was created to solve problems between employers and employees in British India.
• The law made it possible to set up Courts of Inquiry and Boards of Conciliation to look into and settle trade disputes.
• The Act also said that strikes or lock-outs in public utility services were not allowed without giving people notice first.

• The Industrial Employment (Standing Orders) Central (Amendment) Rules 2018 states that a fixed-term employee is someone who is hired for a certain amount of time with a written agreement.
• It also says that when the contract is not renewed or expires, the employee will not get notice or payment.
• This makes it easier for employers to hire and fire workers without involving middlemen. No notice of termination is needed for temporary, monthly, weekly, piece-rated, probationers, or badli workmen. Both of the given statements are correct.

• The Factories Act of 1881 was created to make working conditions better for workers in British India.
• It prohibited employment of children under seven, limited the hours of work for kids under twelve, and made sure machines in factories were properly secured.
• It did not have anything to do with setting wages or forming unions. Statement 2 is true because Narayan Meghaji Lokhande was the first person to get the labor movement started in British India.
• He is known as the father of the trade union movement in India for his work to improve the lives of textile mill-workers in the 19th century and for his efforts in tackling caste and religious issues.

• The Code of Wages, 2019 is a law created by the Indian government which sets out rules for wages and bonuses to be paid to workers.
• It makes it so that all workers in India get a minimum wage and are paid on time.
• It replaces four previous laws concerning wages and bonuses, but does not replace the Contract Labour Act, 1970.

• A casual worker is someone who has a temporary job and usually does not get many benefits or job security.
• In January 2020, the Supreme Court ruled that employees (including casual workers) who are paid by a company should get provident fund benefits.
• According to the Code on Wages 2019, the government can decide how many hours are a normal work day and if someone works more than that, they should get paid twice the normal rate for overtime.
• The Payment of Wages (Amendment) Act 2017 says that employers must pay their employees’ wages by cheque or bank transfer.

• Option (b) was the right answer according to the question. Starting April 1, 2022, the minimum wages for unskilled, semi-skilled and skilled labor in Uttar Pradesh for the period of April 1st, 2022 to September 30th, 2022 have been set at 9530, 10483, and 11743 rupees per month respectively.

• In the time period being discussed, the industrial sector of India’s GDP was between 25-30%.
• It’s worth noting that back in 1950-51, the industrial sector’s contribution to India’s GDP was 16.6%.
• According to Economic Survey 2021-22, the industrial sector’s share in India’s GVA is still in the range of 25-30%.
• In recent years, the industrial sector’s share in GVA has been:

Year Share of Industry in GVA (%)

• • 2015-16 30.0
  • 2019-20 (1st R.E.) 26.7
  • 2020-21 (P.E.) 25.9
  • 2021-22 (1st A.E.) 28.2

• In 2013-14, India’s industrial growth rate was 3.5% (3.8% according to the Economic Survey 2021-22). The Economic Survey 2021-22 states that the rate of growth in industry and its components over the last 3 years is as follows:

• In 1999-2000, industrial production grew by 6.7%, which was higher than the 4.1% growth of 1998-99.
• Due to the South East Asian crisis and nuclear test ban, the exchange rate was lower, but it stabilized in 1999-2000 which made businesses more optimistic and in turn, increased industrial production. Both the statement and explanation are correct.

• The Index of Industrial Production (IIP) is a measure of how much production of a group of industrial products has changed over a certain period of time.
• The NSO creates and releases the IIP index every month.
• IIP looks at the growth rate of industries that are divided into different categories:
  1. Broad sectors, namely, Mining, Manufacturing and Electricity
  2. Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods. Construction is not included in the IIP index.

• The Index of Industrial Production (IIP) shows how much certain industries have grown over a certain period of time.
• This index was once calculated and released by the Central Statistical Office (CSO).
• Now, the NSO calculates and releases it each month, using 2011-12 as the base year.
• The NSO was created in 2019 by merging the CSO and NSSO.

• In 2011, the Indian Government changed the starting point for their Index of Industrial Production from 1993-94 to 2004-05.
• The reference year is now 2011-12, since May 12, 2017.
• Mining, manufacturing, and electricity make up 14.37%, 77.63%, and 7.99% of the total index, with 809 items and 407 item groups.

• In 2011, the Indian government changed the base year for the Index of Industrial Production to 2004-05.
• The base year has since been updated to 2011-12 as of May 12, 2017.
• Mining, manufacturing and electricity sectors are weighted at 14.37%, 77.63% and 7.99% respectively.
• The total number of items is 809 while the number of item groups is 407.

• In India, there are eight major industries that are recognized as Core Industries.
• These are coal, oil, natural gas, petroleum products, fertilizer, steel, cement and electricity.
• Every month, the Economic Advisor’s Office in the Department for Promotion of Industry and Internal Trade releases the Index of Eight Core Industries (ICI).
• Currently, the Eight Core Industries make up 40.27% of the Index of Industrial Production (IIP).

• In India, there are eight industries that are considered important and are known as Core Industries.
• These are Coal, Crude Oil, Natural Gas, Petroleum refinery products, Fertilizers, Steel, Cement and Electricity.
• The Economic Advisor from the Department for Promotion of Industry and Internal Trade in the Ministry of Commerce & Industry releases the Index of Eight Core Industries every month.
• Currently, the Eight Core Industries make up 40.27% of the items listed in the Index of Industrial Production.

• The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade publishes the ‘Index of Eight Core Industries’ (ICI) each month.
• This index measures the combined and individual performance of production in eight selected industries.
• These eight industries make up 40.27% of the Index of Industrial Production (IIP).
• The weights of the Eight Core Industries in ICI, listed from highest to lowest, are:
  1. Refinery Products (28.0376)
  2. Electricity (19.8530)
  3. Steel (17.9166)
  4. Coal (10.3335)
  5. Crude Oil (8.9833)
  6. Natural Gas (6.8768)
  7. Cement (5.3720)
  8. Fertilizers (2.6276)
• Hence, in the ICI, highest weight is given to refinery products, but among the given options the highest weight is given to electricity generation.

• Option (d) was the right answer for the question period. On March 31, 2022, the growth rate of the 8 Core Industries of the country was released.

• Aggregate Growth Rate 4.4 0.4 – 6.4

• After India gained independence, the private sector was the main force behind the coal industry.
• However, the Indira Gandhi government changed this by taking all private coal holdings and giving them to Coal India through the Coal Mines Nationalisation Act in 1973.
• Statement 1 is correct, but statement 2 is wrong because coal mines and blocks are now given out through public auction.
• Statement 3 is also wrong because India still does not make enough coal to meet the needs of the country and so about 25% of coal needs are imported.

• The manufacturing sector is made up of industries that change materials, substances, or components into either products for consumers or goods for industry.
• This includes large, small, micro, and medium sized industries, but the construction industry does not fall into this category.

• The Indian Government announced a revision to the MSME definition as part of the Atmanirbhar Bharat Package on May 13th, 2020, and made it official on June 1st, 2020.
• This new definition and criteria went into effect on July 1st, 2020.
• A new formula combining manufacturing and service units was implemented, and there is no longer a difference between the two industries.
• Under the new rules, micro units must have an investment of Rs. 1 crore and turnover of Rs. 5 crore, small scale units must have an investment of Rs. 10 crore and turnover of Rs. 50 crore, and medium scale units must have an investment of Rs. 50 crore and turnover of Rs. 250 crore.

• On June 1, 2020, the Ministry of Micro, Small and Medium Enterprises changed the criteria for classifying micro, small, and medium enterprises.
• For both manufacturing and service enterprises, the amount of investment in plant and machinery and the annual turnover must be taken into account.
• As of July 1, 2020, to be classified as a micro enterprise, the investment in plant and machinery cannot be more than one crore and the annual turnover cannot be more than five crore.
• For small enterprises, the investment and turnover cannot be more than ten crore and fifty crore respectively.
• For medium enterprises, the investment and turnover cannot be more than fifty crore and two hundred and fifty crore respectively.

• In India, businesses with an investment of up to 1 crore rupees and a turnover of up to 5 crore rupees are called micro enterprises.

• The Indian Government enacted the Micro, Small, and Medium Enterprises Development (MSMED) Act on June 16, 2006. This law became effective in October 2006.

• The maximum amount of money that small-scale businesses can invest has been increased to Rs. 60 lakh.
• This will help them to purchase new equipment and make their operations more efficient.

• Option (c) was the right answer according to the questions asked. Here is an explanation of the question.

• The MSMED Act of 2006 states that a small-scale manufacturing unit must have an investment in equipment and machinery of over 25 lakhs but not more than 10 crore.

• The Government of India on 01.06.2020 increased the limit for small units to invest Rs. 10 Crore and have a turnover of Rs. 50 Crore.
• For medium units, the investment limit was raised to Rs. 20 Crore and the turnover to Rs. 100 Crore.
• This is part of the Government’s decision to further revise the MSME Definition.

• The Government of India on June 1, 2020 decided to raise the investment and turnover limits for small and medium units.
• The investment limit for small units was raised to 10 Crore and the turnover limit was raised to 50 Crore.
• The investment limit for medium units was raised to 20 Crore and the turnover limit was raised to 100 Crore.

• Currently, the answer to the question is (d). The ‘Annual Survey of Industries, 2018-19’ shows that the five states with the highest number of factories registered are:

States Number of factories

• • Tamil Nadu –         (38,131)
  • Gujarat –                 (26,842)
  • Maharashtra –       (25,972)
  • Andhra Pradesh – (16,739)
  • Uttar Pradesh –     (15,854)

• The Government gives small-scale industries (SSIs) special attention and reservations in certain areas because they provide more jobs with less money.
• SSIs are a big part of India’s economy because they rely on people instead of technology and resources.
• They also spread industries and economic activities into rural areas and can help make the best use of natural resources. This is why option (b) is the right answer.

• Small businesses and cottage industries are very important for a country’s economy, even though large scale industries are growing quickly.
• In many countries, small scale industries are actually the driving force of economic growth.
• In developing countries like India, these industries are a major source of jobs.
• This is because they often involve a lot of manual labor, so they create a lot of employment opportunities.

• Small and home-based businesses are important because they create more job opportunities.

• The Handloom industry is a significant small-scale sector in India that produces muslin, chintz, carpets, khadi, etc.
• This industry falls under the unorganized sector. As per the 4th Handloom Census of 2019-20, 35.23 lakh people are employed in the Handloom industry, with 30.54 lakh being in rural areas and 4.69 lakh in urban areas.

• Handloom is the main industry that provides jobs in Uttar Pradesh.
• The states with the most workers in handlooms are Tamil Nadu (30.3%), Uttar Pradesh (22.1%), Kerala (10.4%), Haryana (6.4%) and Assam (5%).

• The question mentions some difficulties that small scale industries (SSIs) face.
• Other issues include not having access to the latest technology, a lack of power, labour problems, not having good management skills, making poor quality products, having production problems, and experiencing industrial sickness.

• Strikes and lockouts are the biggest challenge for large businesses.
• Small businesses are not affected by them, but they do face three other difficulties.
• One of the main issues is not having enough money to run their operations.
• This money is often insufficient, slow to be granted, and carries a very high interest rate.

• Small Industries Development Bank of India (SIDBI) was created on April 2, 1990 by the government.
• Its purpose is to provide money and support to micro, small and medium sized businesses, as well as coordinate activities of other organizations doing similar work.
• It is based in Lucknow, and has additional offices throughout India.

• Committee Formation (Year)
  1. Nayak Committee – 1991
  2. Abid Hussain Committee – 1995
  3. S.S. Kohli Committee – 2000
  4. Karve Committee – 1955
• The order of the committees for the small scale sector should be IV, I, II, III, which is not given as one of the options.
• However, the key sheet from UPPSC states option (c) is the correct answer, which is incorrect.

• In December 1991, the Reserve Bank of India created a panel led by P.R. Nayak to look into the problems that small scale industries were facing to get financing.
• The Nayak Committee submitted their report in September 1992.
• Then in January 2014, the RBI started another committee led by P.J. Nayak to assess the management of banks in India.

• The Ministry of Industry of the Indian government created the Expert Committee on Small Enterprises in 1995, chaired by Abid Hussain.
• This committee suggested that items be removed from the list that were reserved for small-scale industries.
• The report the committee created in 1997 has been seen as very important in India’s economic progress.

• In 1995, the Government of India’s Ministry of Industry put together a committee of experts, which was led by Abid Hussain.
• This committee suggested that all items be taken away from the reservation system of small-scale industries.
• The report from this committee in 1997 is seen as a major event in India’s economic changes.

• The question period showed that small businesses contributed around 40% to the country’s manufacturing gross revenue.
• According to the Ministry of Micro, Small and Medium Enterprises’ report for 2020-21, the amount of manufacturing produced by MSMEs stayed the same at around 33% of the total manufacturing GVO (Gross Value of Output).

• The cotton cloth industry has seen a lot of growth in the past few years.
• From 1999 to 2006, it has grown by 14.8% annually.

• India’s textile industry is the second largest employer in the country, after agriculture.
• This industry directly provides jobs to 45 million people, while giving employment to a further 100 million people in related activities.
• Historically, the textile industry is the only sector in India to provide a large number of both skilled and unskilled jobs.

• The textile industry in India is the 2nd largest employer, after agriculture.
• It gives jobs to 45 million people directly and 100 million people in related activities.
• This industry has been providing a lot of jobs, both skilled and unskilled, for a long time.

• According to the most recent government figures from 2016-17, there are 1399 working non-small scale industry cotton textile mills in India.
• Tamil Nadu had the most with 752 mills, followed by Maharashtra (135) and Andhra Pradesh (112).
• Even though Tamil Nadu only produces around 2 percent of India’s raw cotton, it has almost half of the country’s cotton spinning ability.

• Gujarat is the biggest producer of cotton cloth made in mills among all Indian states. According to the most recent information, the top 3 states that produce the most mill-made cotton cloth are as follows:

States Mill-made Cotton cloth Production (in thousand m2) 2016-17

• Gujarat – 489712
• Maharashtra – 270531
• Madhya Pradesh – 167818

• The cotton textile industry is the oldest big business in India.
• Mumbai and Ahmedabad are the main places for this industry.
• The first cotton mill in India opened in 1818 near Kolkata, in Fort Gloster.

• Cottage industries have been around in India since ancient times and have contributed greatly.
• When the British arrived in India, these industries were quickly destroyed, so the traditional artisans had to find other ways of making money.
• Examples of cottage industries in India include cotton weaving, carpet making, silk weaving, leather working and small scale food processing.

• Iron and steel are the foundation of modern society.
• They are the driving force of the current industrial economy.
• Many important industries, like cars, trains, machines, ships, and military equipment all rely on the iron and steel industry.

• Nepanagar is a town in the Burhanpur district of Madhya Pradesh that is well-known for its paper mill, Nepa Mills Limited (formerly known as The National News Print Ltd.).
• This mill was the first to make newsprint in India, and started production in April 1956.

• KRIBHCO was established in April 1980 as a multi-state cooperative.
• It has a modern fertilizer plant that uses natural gas located in Hazira, Surat, Gujarat.
• This plant consists of two ammonia units and four urea units.

• Data from the question period showed that option (c) was the correct answer.
• India has become almost 80% self-sufficient in producing urea and 50% self-sufficient in producing phosphatic fertilizers to meet domestic needs. Since there are not enough resources in India for potash, all of it must be imported.
• In 2019-20, it is estimated that 462.15 lakh metric tonnes of fertilizers will be produced, which is more than 11.40% more than the previous year.
• This is because of the favourable policy environment which encourages investments in the public, co-operative and private sectors.
• India is now the second largest producer of nitrogenous fertilizers and third in phosphatic fertilizers.
• It is also the second biggest consumer of urea behind China.
• Fertilizer is now the second most important industry in India, after the iron and steel industry.

• Yamunanagar, Guwahati, and Ballarpur (all in India) are well-known for their paper making industry, whereas Shahabad is not known for it.

• A lot of natural gas can be used to make fertilizers.
• Natural gas is used in the Haber process to make ammonia, which is used in fertilizer production.

• The Oil and Natural Gas Commission (ONGC) was created in August 1956 to help with the development and sale of oil and oil products.
• In October 1959, it became an official body by a law made by Parliament.
• Its headquarters is in Dehradun, Uttarakhand. In 1994, it changed into a corporation.

• Oil India Limited (OIL) is a major Indian company that looks for, develops, and produces crude oil and natural gas, ships crude oil, and produces liquified petroleum gas.

• MMTC is the biggest company in India that does not import oil.
• It does a lot of different trading activities such as deals with countries other than India, partnerships, and link deals, which are all common methods of international trading.
• PEC Limited, which used to be called Project and Equipment Corporation of India Limited, was set up in 1971 as part of State Trading Corporation of India Limited.
• It is part of the Ministry of Commerce and Industry.

• NINL was created in 1982 to build a 1.1 million tonne steel factory in Kalinga Nagar.
• It is owned by MMTC Ltd, IPICOL, and other government agencies. Since 2004-05, NINL has become India’s biggest exporter of pig iron.
• MMTC Ltd is one of the biggest foreign exchange earners for India, and was given the title of Five Star Export House by the Indian government for its contributions to exports.

• Neelachal Ispat Nigam Limited (NINL) was created in 1982 to build a 1.1 million ton steel factory in Kalinga Nagar Industrial Complex in Jajpur, Odisha.
• NINL is backed by MMTC Ltd., Industrial Promotion and Investment Corporation of Odisha Ltd.
• (IPICOL), and other government bodies. Since 2004-05, NINL has become India’s top exporter of saleable pig iron. MMTC Ltd.
• is one of India’s main foreign exchange earners (after petroleum refining companies) and the biggest public sector trading firm.
• It was also the first public sector business to be given the status of ‘Five Star Export House’ by the Indian Government for its continuous contribution to exports.

• In India, the Public Sector is responsible for providing public services, developing infrastructure, and striving for equal opportunities (by helping those with lower incomes and wealth).
• Additionally, it helps generate funds for development, create jobs, support small businesses, and promote trading.

• When India became independent, a lot of money was needed to build up infrastructure and heavy and basic industries for economic growth.
• Private companies couldn’t afford to invest such a large amount, so the government stepped in to provide the framework for heavy industries and infrastructure through the public sector.
• Statement 1 is correct, but statement 2 and 3 are not completely true – while jobs in public sector industries are secure, not all of them are profitable. The best answer is option (b).