UPSC Prelims Practice Questions — Protection for the ship-building trade

Q1. The comprehensive maritime package of approximately ₹69,725 crore approved by the Union Cabinet in 2025 to revitalize India's shipbuilding ecosystem is structured around how many pillars?

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

Q2. The Shipbuilding Financial Assistance Policy (SBFAP) guidelines, amended in January 2025 to enhance participation in Indian shipyards, are administered by which Union Ministry?

  • A. Ministry of Commerce and Industry
  • B. Ministry of Heavy Industries
  • C. Ministry of Ports, Shipping and Waterways
  • D. Ministry of Finance

Q3. Within the ₹69,725 crore maritime package approved by the Union Cabinet in 2025, which single component has the LARGEST corpus?

  • A. Shipbuilding Financial Assistance Scheme (SBFAS)
  • B. Maritime Development Fund (MDF)
  • C. Shipbuilding Development Scheme (SbDS)
  • D. Shipbreaking Credit Note Scheme

Q4. In the context of India's 2025 maritime reform package, the 'Shipbreaking Credit Note' refers to:

  • A. A tradeable credit equivalent to 40% of a recycled vessel's scrap value, issued to ship owners recycling vessels at Hong Kong Convention-compliant Indian yards and redeemable against new shipbuilding orders in India
  • B. A customs duty exemption certificate issued to importers of scrap steel sourced from foreign shipbreaking yards
  • C. An interest-subvention voucher equal to 40% of the loan taken by Indian shipyards for capacity expansion under SBFAS
  • D. A sovereign-backed bond issued by the Maritime Development Fund to finance shipbreaking infrastructure at Alang