Industry & Infrastructure — UPSC Prelims practice questions

Q: How many Industry & Infrastructure MCQs are available for UPSC Prelims practice?

PrelimsAI currently has 80+ Industry & Infrastructure MCQs under Indian Economy. This page shows 12 sample questions in full.

Q: How many Industry & Infrastructure previous year questions are included?

38+ questions in this chapter are tagged as UPSC Prelims PYQs. PYQs are prioritised in the visible sample set when available.

Q: Do these Industry & Infrastructure questions include explanations?

Yes. The 12 visible sample questions show the correct option and explanation on this page.

Q: Where should I go after practising Industry & Infrastructure?

Continue with Agriculture or Poverty & Unemployment, or return to the Indian Economy subject page for more chapter-wise practice.

Question 1

With reference to minor minerals in India, which one of the following statements is correct? (A) Only the Central Government can notify minor minerals and regulate their extraction (B) Minor minerals are outside the purview of the MMDR Act (C) Sand cannot be treated as a minor mineral (D) State Governments play a major role in regulating minor minerals

Accepted Answer

(D) State Governments play a major role in regulating minor minerals — Correct. State Governments are central to administration, concession and regulation of minor minerals subject to the legal framework.

Question 2

With reference to critical minerals, consider the following statements:
1. India has joined the Minerals Security Partnership.
2. India is resource-rich in all critical minerals identified by the Government.
3. The MMDR Act was amended in 2023 to facilitate greater central involvement in auction of certain critical mineral blocks.
Which of the statements given above are correct? (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(C) 1 and 3 only — Correct. India joined the Minerals Security Partnership, and the 2023 amendments were meant to accelerate exploration and auction of critical minerals.

Question 3

The PM Surya Ghar Muft Bijli Yojana aims to:
1. Install rooftop solar panels on residential households.
2. Provide free electricity of up to 300 units per month to eligible households.
3. Create skilled manpower for the solar energy sector.
Which of the statements given above are correct? (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(D) 1, 2 and 3 — Correct. The scheme targets rooftop solar installation, provision of free electricity up to 300 units per month, and skilling and upskilling for the solar sector.

Question 4

Which of the following activities fall within the regulatory domain of the Petroleum and Natural Gas Regulatory Board (PNGRB)?
1. Authorizing city gas distribution networks
2. Regulating downstream petroleum and natural gas pipelines
3. Awarding offshore exploration blocks in deep sea areas
Select the correct answer using the code given below: (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(A) 1 and 2 only — Correct. PNGRB regulates downstream petroleum and natural gas activities such as pipelines and city gas distribution, but not upstream exploration block allocation.

Question 5

Under the corporate social responsibility (CSR) framework in India, which one of the following is correct? (A) Spending that directly benefits only the company's own business operations is not treated as CSR (B) CSR obligations apply only to listed companies (C) A company may count normal salary payments as CSR expenditure (D) CSR law does not prescribe any spending threshold

Accepted Answer

(A) Spending that directly benefits only the company's own business operations is not treated as CSR — Correct. CSR must be directed toward eligible social purposes and not merely toward direct business benefit to the company itself.

Question 6

Which of the following airports were developed as greenfield airport projects?
1. Donyi Polo Airport
2. Kushinagar International Airport
3. Vijayawada International Airport
Select the correct answer using the code given below: (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(A) 1 and 2 only — Correct. Donyi Polo Airport and Kushinagar International Airport were developed as greenfield projects, whereas Vijayawada is an existing airport that was expanded.

Question 7

Which of the following are examples of intangible investments?
1. Brand recognition
2. Inventory
3. Intellectual property
4. Mailing list of clients
Select the correct answer using the code given below: (A) 1, 2 and 3 only (B) 1, 3 and 4 only (C) 1, 2, 3 and 4 (D) 2 and 4 only

Accepted Answer

(B) 1, 3 and 4 only — Correct. Brand value, intellectual property and client lists are intangible assets, unlike inventory.

Question 8

In India, official data on industrial disputes are compiled by the: (A) Department for Promotion of Industry and Internal Trade (B) NITI Aayog (C) Labour Bureau (D) Competition Commission of India

Accepted Answer

(C) Labour Bureau — Correct. The Labour Bureau is the recognized agency for such labour and industrial relations statistics.

Question 9

With reference to the MSME classification in India, consider the following statements:
1. The revised classification uses both investment in plant and machinery and annual turnover as composite criteria.
2. All bank loans to MSMEs qualify under priority sector lending.
Which of the statements given above is/are correct? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2

Accepted Answer

(C) Both 1 and 2 — Correct. The 2020 revision uses both investment and turnover thresholds, and all bank loans to MSMEs qualify under RBI priority sector norms.

Question 10

The Coal Controller's Organisation is associated primarily with: (A) Quality surveillance and other regulatory functions in the coal sector (B) Licensing of all nuclear power plants (C) Fixing MSP for coal-bearing districts (D) Managing foreign exchange reserves

Accepted Answer

(A) Quality surveillance and other regulatory functions in the coal sector — Correct. The Coal Controller's Organisation performs regulatory and quality-related functions in the coal sector.

Question 11

Why is the interest coverage ratio important while assessing a company? (A) It indicates the company's ability to service interest payments from earnings (B) It measures how many equity shares the company may issue (C) It shows the exact replacement cost of plant and machinery (D) It is a direct measure of foreign exchange reserves

Accepted Answer

(A) It indicates the company's ability to service interest payments from earnings — Correct. Interest coverage ratio compares operating earnings with interest obligations and helps assess debt-servicing capacity.

Question 12

Consider the following statements about India's coal sector:
1. Coal was nationalized during the early 1970s.
2. Commercial mining by private companies was opened up in recent reforms.
3. India is fully self-sufficient in coal and imports none.
Which of the statements given above are correct? (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(A) 1 and 2 only — Correct. Coal was nationalized in 1971-73 under Indira Gandhi, and commercial mining was recently opened up to private players. India still imports coal, especially coking coal.

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