Indian Economy & Development – Industry and Infrastructure
Assam Public Service Commission (APSC)
Combined Competitive Examination (CCE) – Preliminary Examination
General Studies Paper I (Objective, 200 Marks)
Topic: Indian Economy & Development
Sub-Topic: Industry and Infrastructure
Industry and Infrastructure – Multiple Choice Questions (MCQs) with Answers & Explanations
Q1. Industry refers to:
A. Extraction of raw materials
B. Manufacturing of goods and provision of services
C. Agricultural activities only
D. Trade and commerce only
Correct Answer: B
Explanation:
Industry includes manufacturing, processing, and services that add value to raw materials.
Q2. Which sector converts raw materials into finished goods?
A. Primary
B. Secondary
C. Tertiary
D. Quaternary
Correct Answer: B
Explanation:
The secondary sector undertakes manufacturing and processing.
Q3. Infrastructure is best described as:
A. Consumer goods
B. Capital goods only
C. Basic physical and social facilities supporting economic activity
D. Industrial raw materials
Correct Answer: C
Explanation:
Infrastructure includes transport, power, communication, health, education, etc., enabling growth.
Q4. Which of the following is a core infrastructure sector?
A. Textiles
B. Tourism
C. Power
D. IT services
Correct Answer: C
Explanation:
Power is a core infrastructure sector essential for industrial and economic activities.
Q5. The industrial policy that liberalized licensing in India was introduced in:
A. 1985
B. 1990
C. 1991
D. 1997
Correct Answer: C
Explanation:
The New Industrial Policy, 1991 liberalized industrial licensing and encouraged private investment.
Q6. Which industry is known as a basic or key industry?
A. Textile industry
B. Iron and steel industry
C. Sugar industry
D. Cement retail
Correct Answer: B
Explanation:
Iron and steel is a basic industry as it supports many other industries.
Q7. Small-scale industries are important because they:
A. Require large capital
B. Generate employment
C. Increase imports
D. Reduce competition
Correct Answer: B
Explanation:
SSIs are labour-intensive and create large-scale employment.
Q8. Which organization primarily regulates industrial credit and banking?
A. SEBI
B. Reserve Bank of India
C. NABARD
D. EXIM Bank
Correct Answer: B
Explanation:
The Reserve Bank of India regulates banking and credit systems.
Q9. Industrial corridors aim to:
A. Promote agriculture
B. Develop rural housing
C. Boost manufacturing and logistics
D. Increase imports
Correct Answer: C
Explanation:
Industrial corridors integrate manufacturing, transport, and logistics to enhance competitiveness.
Q10. Which transport mode is most energy-efficient for bulk goods?
A. Roadways
B. Railways
C. Airways
D. Pipelines
Correct Answer: B
Explanation:
Railways are cost-effective and energy-efficient for bulk transport.
Q11. Power shortage mainly affects:
A. Agricultural exports
B. Industrial productivity
C. Tourism only
D. Foreign exchange reserves
Correct Answer: B
Explanation:
Inadequate power supply directly hampers industrial output and efficiency.
Q12. Which sector provides services like transport and communication?
A. Primary
B. Secondary
C. Tertiary
D. Quinary
Correct Answer: C
Explanation:
The tertiary sector delivers essential services supporting industry and consumers.
Q13. Which infrastructure sector supports digital connectivity?
A. Power
B. Transport
C. Telecommunication
D. Irrigation
Correct Answer: C
Explanation:
Telecommunication enables digital services and information flow.
Q14. The ‘Make in India’ initiative focuses on:
A. Import substitution only
B. Promoting domestic manufacturing
C. Agricultural modernization
D. Financial inclusion
Correct Answer: B
Explanation:
Make in India aims to boost manufacturing, investment, and job creation.
Q15. Which industry is labour-intensive?
A. Petrochemicals
B. Steel
C. Textiles
D. Power generation
Correct Answer: C
Explanation:
The textile industry employs a large workforce relative to capital used.
Q16. Infrastructure development contributes to:
A. Inflation only
B. Economic growth and productivity
C. Reduction in exports
D. Capital flight
Correct Answer: B
Explanation:
Good infrastructure lowers costs and raises productivity, fostering growth.
Q17. Which mode of transport is fastest but most expensive?
A. Railways
B. Roadways
C. Airways
D. Waterways
Correct Answer: C
Explanation:
Airways provide speed but at higher costs.
Q18. Public-Private Partnership (PPP) aims to:
A. Eliminate private sector
B. Share risks and resources
C. Increase public debt only
D. Centralize control
Correct Answer: B
Explanation:
PPP leverages private efficiency with public oversight for infrastructure projects.
Q19. Which infrastructure sector is crucial for agricultural marketing?
A. Power
B. Roads
C. Telecommunication
D. Ports
Correct Answer: B
Explanation:
Road connectivity enables farmers to access markets efficiently.
Q20. Industrialization leads to:
A. Reduced urbanization
B. Structural transformation of the economy
C. Decline in services
D. Complete rural employment
Correct Answer: B
Explanation:
Industrialization shifts labour from agriculture to manufacturing and services.
Q21. Which industry uses agricultural raw materials?
A. Steel
B. Textile
C. Cement
D. Petrochemicals
Correct Answer: B
Explanation:
Textiles use cotton, jute, silk, etc., from agriculture.
Q22. The main constraint in infrastructure financing is:
A. Excess demand
B. High capital requirement
C. Skilled labour surplus
D. Low population
Correct Answer: B
Explanation:
Infrastructure projects need large, long-term capital.
Q23. Which port infrastructure supports international trade?
A. Dry ports only
B. Seaports
C. Inland waterways
D. Airports only
Correct Answer: B
Explanation:
Seaports handle bulk international trade.
Q24. MSMEs contribute significantly to:
A. Capital intensity
B. Employment and exports
C. Monopoly power
D. Defence production only
Correct Answer: B
Explanation:
MSMEs are vital for jobs, innovation, and exports.
Q25. Which sector is essential for industrial location decisions?
A. Climate only
B. Power and transport
C. Population size
D. Tourism potential
Correct Answer: B
Explanation:
Reliable power and transport influence industrial location.
Q26. Infrastructure bottlenecks result in:
A. Higher logistics costs
B. Lower inflation
C. Faster delivery
D. Export boom
Correct Answer: A
Explanation:
Poor infrastructure increases logistics and transaction costs.
Q27. Which initiative focuses on logistics efficiency?
A. Digital India
B. Sagarmala
C. Swachh Bharat
D. Beti Bachao
Correct Answer: B
Explanation:
Sagarmala aims to modernize ports and improve logistics.
Q28. Industrial diversification helps in:
A. Increasing dependence on one sector
B. Reducing economic risks
C. Limiting employment
D. Increasing imports
Correct Answer: B
Explanation:
Diversification spreads risk and stabilizes growth.
Q29. Which infrastructure sector is most important for urbanization?
A. Irrigation
B. Power and housing
C. Forestry
D. Mining
Correct Answer: B
Explanation:
Urban growth requires power supply and housing infrastructure.
Q30. Industry and infrastructure development ultimately aim at:
A. Profit maximization only
B. Export growth only
C. Sustainable economic growth and employment
D. Centralization of economy
Correct Answer: C
Explanation:
Their goal is sustainable growth, jobs, and improved living standards.
✅ APSC Prelims Smart Tip
For Industry & Infrastructure, focus on:
- Sectoral classification
- Industrial policy reforms
- Core infrastructure sectors
- Transport, power, telecom
- PPPs, MSMEs, and logistics
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Industry and infrastructure MCQs APSC
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Industrial policy 1991 MCQs
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MSME industry questions prelims
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Power transport telecom MCQs
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Make in India infrastructure MCQs
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Indian economy industry GS Paper I
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Logistics and PPP MCQs APSC