India's Industrial Output Hits 13-Month Low in October

सही उत्तर: D

Statement 1 is correct: IIP is indeed compiled and released monthly by the NSO. Statement 2 is correct: Manufacturing consistently holds the highest weightage among the three broad sectors (Mining, Manufacturing, Electricity) in IIP. Statement 3 is correct: The eight core industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity) account for approximately 40.27% of the total weight of items included in the IIP, which is less than 50%. However, the question states 'more than 50%', which is incorrect. Let me re-evaluate this. The 8 core industries account for 40.27% of IIP. So statement 3 is incorrect. My initial thought process for the explanation was flawed. Let's correct the explanation and the correct answer based on the actual weightage. Revised Explanation: Statement 1 is correct: The Index of Industrial Production (IIP) is compiled and released monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. Statement 2 is correct: The manufacturing sector has the highest weightage in the IIP, typically around 77-78%. Statement 3 is incorrect: The eight core industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity) account for approximately 40.27% of the total weight of items included in the IIP, which is less than 50%. Therefore, the statement 'more than 50%' is false. Thus, only statements 1 and 2 are correct.

सही उत्तर: C

1. Increased pressure on the government's fiscal deficit due to reduced tax collections: Correct. A slowdown in manufacturing implies lower production, sales, and profits, leading to reduced GST, corporate tax, and income tax collections, thereby increasing pressure on the fiscal deficit. 2. A potential easing of inflationary pressures in the economy: Correct. A slowdown in industrial activity often indicates weaker demand, which can lead to a reduction in price pressures and potentially ease inflation. 3. Reduced demand for credit, leading to lower interest rates by commercial banks: Incorrect. While a slowdown might reduce demand for fresh credit for expansion, banks' interest rates are primarily influenced by the RBI's monetary policy (repo rate) and their own cost of funds, not solely by credit demand from one sector. Moreover, banks might become more cautious in lending during a slowdown, potentially keeping rates stable or even increasing them for riskier borrowers. 4. A decline in formal sector employment generation: Correct. Manufacturing is a significant employer in the formal sector. A slowdown directly impacts job creation and can even lead to job losses. Therefore, statements 1, 2, and 4 are correct.

सही उत्तर: D

A) Correct: One of the stated goals of 'Make in India' was to increase the manufacturing sector's share of GDP to 25% by 2025 (though this target has been challenging to achieve). B) Correct: The initiative initially identified 25 key sectors, including automobiles, chemicals, IT, pharmaceuticals, textiles, etc., to promote manufacturing. C) Correct: PLI schemes, launched later, are a significant policy tool under the broader 'Make in India' umbrella, designed to incentivize domestic and foreign companies to manufacture in India. D) Incorrect: While 'Make in India' actively seeks to attract FDI, it equally emphasizes promoting domestic manufacturing, encouraging local businesses, and fostering domestic capital formation. The initiative's core idea is to make India a global manufacturing hub, which requires both foreign and domestic investment and entrepreneurship. Therefore, stating 'limited emphasis on domestic capital formation' is incorrect.