Industry & Infrastructure — UPSC Prelims practice questions

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

PrelimsAI currently has 82+ Industry & Infrastructure MCQs under Indian Economy. This page shows 12 sample questions in full.

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

40+ 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

An e-commerce revenue model where the seller has control over pricing but doesn’t keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called: (A) Dropshipping Model (B) Affiliate Revenue Model (C) Transaction Fee Revenue Model (D) Agency Revenue Model

Accepted Answer

(A) Dropshipping Model — UPSC provisional key: (A), Series A question 87. In dropshipping, the retailer sells at its chosen price while the supplier holds inventory and fulfils the order directly to the buyer. The retailer’s return comes from the selling-price margin after supplier and other costs, rather than a referral commission alone. Sources: [UPSC provisional answer key]() · [Shopify merchant documentation: dropshipping]() · [Shopify: affiliate marketing versus dropshipping]()

Question 2

Which one of the following best describes the key objective of India’s ‘Open Network for Digital Commerce’ (ONDC) initiative? (A) To allow government control over all digital commerce transactions (B) To replace private e-commerce players (C) To break the dominance of large e-commerce platforms by enabling interoperability across networks (D) To mandate UPI-based payments for all online transactions

Accepted Answer

(C) To break the dominance of large e-commerce platforms by enabling interoperability across networks — UPSC provisional key: (C), Series A question 89. ONDC uses open-network interoperability to widen market access and reduce dependence on large, closed platforms. A buyer on one participating application can discover and transact with sellers connected through other applications, subject to network arrangements. Sources: [UPSC provisional answer key]() · [ONDC: purpose, open-network infrastructure and platform dependency]()

Question 3

Consider the following statements :
Statement I :
In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories.
Statement II :
In India, the Central Government has the power to notify minor minerals under the relevant law.
Which one of the following is correct in respect of the above statements? (A) Both Statement I and Statement II are correct and Statement II explains Statement I (B) Both Statement I and Statement II are correct but Statement II does not explain Statement I (C) Statement I is correct but Statement II is not correct (D) Statement I is not correct but Statement II is correct

Accepted Answer

(D) Statement I is not correct but Statement II is correct — Correct. Section 15 empowers State Governments to make rules for minor mineral concessions, so Statement I is incorrect. Section 3(e) gives the Central Government notification power, so Statement II is correct.

Question 4

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 5

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 6

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 7

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 8

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 9

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 10

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 11

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 12

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.

Industry & Infrastructure MCQs

Sample Industry & Infrastructure questions

Continue chapter practice

More UPSC Prelims practice

Frequently asked questions

Practise all Industry & Infrastructure questions