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UPSC 1999: Consider the following statements: Small-scale industries are, in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries I. provide higher employment on a per unit capital deployment basis. II. promote a regional dispersion of industries and economic activities. III. have performed better in export of manufactured products than the large-scale ones. IV. provide jobs to low skill workers, who otherwise may not find employment avenues elsewhere. Which of the above statements are correct?
(a)I and IV
(b)I and II
(c)II and III
(d)III and IV
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Not attemptedCorrect Answer: (b) I and II
Government reservations/support for SSIs rest chiefly on: I) their high employment intensity per unit of capital, and II) their ability to spread industrial activity to semi-urban and rural regions, aiding balanced regional development. Export performance (III) and absorption of low-skill labour (IV) are benefits but not the primary stated policy justifications, so only statements I and II are correct. ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1999-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1999 Indian Economy question?▼
The correct answer is option (b): I and II. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Infrastructure & Industry question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1999, GS Paper 1, as Question 43. It falls under Indian Economy > Infrastructure & Industry.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Infrastructure & Industry?▼
UPSC has asked 74 questions from Infrastructure & Industry (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.