UPSC Prelims Practice Questions — Manufacturing sector needs mission-based approach: Eco Survey

Q1. As announced in the Union Budget 2025-26, the National Manufacturing Mission (NMM) lays emphasis on how many focal areas?

  • A. Three
  • B. Four
  • C. Five
  • D. Seven

Q2. The National Manufacturing Mission (NMM) announced in Union Budget 2025-26 is operationalised under which one of the following?

  • A. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. Department of Heavy Industry, Ministry of Heavy Industries
  • D. NITI Aayog under the Prime Minister's Office

Q3. With reference to the National Manufacturing Mission (NMM) announced in Union Budget 2025-26 vis-à-vis the earlier National Manufacturing Policy (NMP) of 2011, consider the following statements: 1. While NMP 2011 had targeted manufacturing's share in GDP to reach 25% by 2022, NMM has reset this 25% target to the year 2035. 2. The employment-creation target under NMM (143 million jobs) is higher than the 100 million jobs envisaged under NMP 2011. 3. Unlike NMP 2011, NMM explicitly identifies Clean Tech manufacturing — including solar PV cells, EV batteries, electrolysers and wind turbines — as an area of support. Which of the statements given above is/are correct?

  1. While NMP 2011 had targeted manufacturing's share in GDP to reach 25% by 2022, NMM has reset this 25% target to the year 2035.
  2. The employment-creation target under NMM (143 million jobs) is higher than the 100 million jobs envisaged under NMP 2011.
  3. Unlike NMP 2011, NMM explicitly identifies Clean Tech manufacturing — including solar PV cells, EV batteries, electrolysers and wind turbines — as an area of support.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. According to the Economic Survey 2025-26, which one of the following is the second-largest employer in India after agriculture?

  • A. Construction sector
  • B. MSME sector
  • C. Information Technology and IT-enabled services
  • D. Organised manufacturing under the Factories Act

Q5. In the context of MSME financing referenced by the Economic Survey 2025-26, the Self-Reliant India (SRI) Fund is best described as:

  • A. A ₹50,000 crore equity infusion fund that channels growth capital into MSMEs through a fund-of-funds structure
  • B. A central interest-subvention scheme that caps lending rates for MSME term loans at 4 per cent per annum
  • C. A credit guarantee corpus that fully underwrites collateral-free loans up to ₹2 crore for first-time MSME borrowers
  • D. A sovereign-backed export credit insurance pool administered by ECGC for MSME exporters