Basic Quiz – 12 October 2026 | Economy

Correct Answer: (a) 1 and 2 only

Explanation:

• Statement 1 is correct: GVA represents the value of goods and services produced minus the value of intermediate inputs consumed during production. It measures the contribution of individual sectors to the economy.
• Statement 2 is correct: Labour-intensive industries employ relatively more labour per unit of capital than capital-intensive industries. Garments, footwear and certain food-processing activities are examples of relatively labour-intensive manufacturing.
• Statement 3 is incorrect: Manufacturing output can increase without a proportionate increase in employment because of automation, productivity improvements, capital-intensive technologies and changes in production processes.

Additional Information:

• Manufacturing is part of the secondary sector of the economy.
• Structural transformation generally involves the movement of labour and resources from lower-productivity activities towards higher-productivity sectors.
• The Index of Industrial Production (IIP) measures short-term changes in the volume of industrial production.
• The Index of Eight Core Industries covers coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
• Employment-intensive manufacturing is important for absorbing workers transitioning out of agriculture and promoting inclusive economic growth.

Correct Answer: (d) 1, 2 and 3

Explanation:

• Statement 1 is correct: PM Gati Shakti, launched in October 2021, aims to facilitate coordinated infrastructure planning across ministries and departments through a digital National Master Plan.
• Statement 2 is correct: Dedicated Freight Corridors are specialised railway corridors designed primarily for freight movement. They help improve freight capacity, reduce congestion and increase transportation efficiency.
• Statement 3 is correct: The National Industrial Corridor Development Programme promotes industrial corridors and integrated manufacturing nodes supported by transport, power, water and other essential infrastructure.

Additional Information:

• The Eastern Dedicated Freight Corridor connects Ludhiana in Punjab with Sonnagar in Bihar.
• The Western Dedicated Freight Corridor connects Dadri in Uttar Pradesh with Jawaharlal Nehru Port in Maharashtra.
• The National Industrial Corridor Development Corporation (NICDC) plays an important role in developing industrial corridor projects.
• Improved logistics infrastructure can reduce transportation costs and enhance the competitiveness of Indian manufacturing.

Correct Answer: (b) 1 and 2 only

Explanation:

• Statement 1 is correct: Green hydrogen can be produced by splitting water into hydrogen and oxygen through electrolysis powered by renewable electricity.
• Statement 2 is correct: The SIGHT Programme is a major component of the National Green Hydrogen Mission. It provides incentives for domestic electrolyser manufacturing and green hydrogen production.
• Statement 3 is incorrect: Hydrogen produced through coal gasification without carbon capture is not classified as green hydrogen.

Additional Information:

• The National Green Hydrogen Mission was approved in January 2023.
• The Mission targets at least 5 million metric tonnes of annual green hydrogen production capacity by 2030.
• Green hydrogen can contribute to decarbonisation in fertilisers, refineries, steel and other hard-to-abate sectors.
• The Ministry of New and Renewable Energy is the nodal ministry for the Mission.

Correct Answer: (c) All three

Explanation:

• Statement 1 is correct: Udyam Registration is an online registration mechanism administered by the Ministry of MSME. It helps enterprises obtain formal MSME recognition.
• Statement 2 is correct: TReDS is an electronic platform that facilitates financing or discounting of MSME trade receivables through participating financiers, helping enterprises access working capital.
• Statement 3 is correct: The MSME Sustainable (ZED) Certification Scheme encourages enterprises to improve product quality while reducing adverse environmental impacts through Zero Defect Zero Effect practices.

Additional Information:

• MSMEs are classified using composite criteria based on investment in plant and machinery or equipment and annual turnover.
• The MSMED Act, 2006 provides a statutory framework for the promotion and development of MSMEs.
• Under Section 15 of the MSMED Act, the agreed payment period for supplies by micro and small enterprises cannot exceed 45 days from the relevant statutory date.