UPSC Prelims Practice Questions — PMFME Scheme driving grassroots entrepreneurship: 59,202 micro food processing enterprises formalized, over ₹17,015 crore investment mobilized and 5.18 lakh jobs generated across India
Q1. With reference to its financing classification, the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is best described as which one of the following?
- A. A Central Sector Scheme financed entirely from the Union Budget with no State contribution
- B. A Centrally Sponsored Scheme whose cost is shared between the Centre and the States
- C. A State Sector Scheme implemented and wholly funded by the State Governments
- D. An externally aided programme funded mainly through multilateral lending
Q2. Consider the following statements about the Centre:State cost-sharing pattern under the PMFME Scheme:
1. For general category States, the funding is shared in a 60:40 ratio.
2. For North-Eastern and Himalayan States, the funding is shared in a 90:10 ratio.
3. For Union Territories with legislature, the funding is shared in a 50:50 ratio.
4. For Union Territories without legislature, the scheme is funded 100% by the Centre.
Which of the above is/are correctly identified?
- For general category States, the funding is shared in a 60:40 ratio.
- For North-Eastern and Himalayan States, the funding is shared in a 90:10 ratio.
- For Union Territories with legislature, the funding is shared in a 50:50 ratio.
- For Union Territories without legislature, the scheme is funded 100% by the Centre.
- A. 1 and 2 only
- B. 1, 2 and 4 only
- C. 2, 3 and 4 only
- D. 1, 2, 3 and 4
Q3. The credit-linked capital subsidy component of the PMFME Scheme is administered as the nodal responsibility of which one of the following Union Ministries?
- A. Ministry of Micro, Small and Medium Enterprises
- B. Ministry of Food Processing Industries
- C. Ministry of Agriculture and Farmers Welfare
- D. Ministry of Rural Development
Q4. Under the PMFME Scheme, what is the maximum amount of seed capital admissible to a single Self Help Group (SHG) Federation?
- A. Rs. 40,000
- B. Rs. 4 lakh
- C. Rs. 10 lakh
- D. Rs. 3 crore
Q5. Among the special district categories mapped under the PMFME One District One Product (ODOP) GIS map, which one accounts for the largest number of areas/districts?
- A. Integrated Tribal Development Areas
- B. Aspirational Districts
- C. SC-majority districts (with 40% SC population)
- D. Metropolitan urban districts
Q6. Consider the following statements about the One District One Product (ODOP) approach under the PMFME Scheme:
1. ODOP has been approved for 713 districts.
2. ODOP spans 35 States and Union Territories.
3. ODOP comprises 137 unique products.
4. West Bengal has recommended the largest number of ODOP products among all States.
Which of the above is/are NOT correct?
- ODOP has been approved for 713 districts.
- ODOP spans 35 States and Union Territories.
- ODOP comprises 137 unique products.
- West Bengal has recommended the largest number of ODOP products among all States.
- A. 1 and 3
- B. 2 only
- C. 4 only
- D. 3 and 4
Q7. With reference to PMFME's cumulative achievements (as on 31 December 2025) compared with the projections made at its launch in 2020, consider the following statements:
1. About 59,202 micro food processing enterprises had been formalised under the scheme.
2. The cumulative investment mobilised has already exceeded the Rs. 35,000 crore investment originally projected in 2020.
3. The employment generated remains below the 9 lakh jobs originally projected in 2020.
Which of the statements given above is/are correct?
- About 59,202 micro food processing enterprises had been formalised under the scheme.
- The cumulative investment mobilised has already exceeded the Rs. 35,000 crore investment originally projected in 2020.
- The employment generated remains below the 9 lakh jobs originally projected in 2020.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q8. In the PMFME progress data as on 31 December 2025, the figure of about 5.18 lakh (5,18,121) specifically refers to which one of the following?
- A. The number of micro food processing enterprises formalised
- B. The direct and indirect employment generated under the scheme
- C. The number of loans sanctioned for credit-linked subsidy
- D. The number of SHG members provided seed capital
Q9. The Seed Capital module of the PMFME Scheme was operationalised by the Ministry of Food Processing Industries in association with which one of the following Ministries?
- A. Ministry of Rural Development
- B. Ministry of Housing and Urban Affairs
- C. Ministry of Skill Development and Entrepreneurship
- D. Ministry of Women and Child Development
Q10. At its launch in 2020, the PMFME Scheme set out to generate how many skilled and semi-skilled jobs as its original projection?
- A. 2 lakh jobs
- B. 5 lakh jobs
- C. 9 lakh jobs
- D. 18 lakh jobs
Q11. Under the PMFME Scheme, the dedicated 'seed capital' assistance is provided primarily to the members of which one of the following categories of beneficiaries?
- A. Farmer Producer Organizations (FPOs)
- B. Self Help Groups (SHGs)
- C. Producer Cooperative Societies
- D. Individual proprietorship micro enterprises