UPSC Prelims Practice Questions — Vice President of India Shri C. P. Radhakrishnan Presides Over ‘MSME Day 2026– Udyami Bharat’
Q1. Under the revised MSME classification effective from 1 April 2025, which one of the following correctly describes a 'Small Enterprise'?
- A. Investment in plant & machinery not exceeding ₹2.5 crore and turnover not exceeding ₹10 crore
- B. Investment in plant & machinery not exceeding ₹25 crore and turnover not exceeding ₹100 crore
- C. Investment in plant & machinery not exceeding ₹125 crore and turnover not exceeding ₹500 crore
- D. Investment in plant & machinery not exceeding ₹10 crore and turnover not exceeding ₹50 crore
Q2. The enhancement of MSME investment and turnover limits to 2.5 times and 2 times respectively was announced in which of the following?
- A. Union Budget 2024-25
- B. Union Budget 2025-26
- C. Union Budget 2023-24
- D. Union Budget 2026-27
Q3. With reference to the contribution of the MSME sector to the Indian economy, consider the following:
1. It accounts for about 30.1% of India's GDP.
2. It accounts for about 35.4% of manufacturing output.
3. It accounts for about 25% of the country's total exports.
4. Over 28 crore persons of employment have been reported on the Udyam Registration Portal (including the Udyam Assist Platform).
Which of the above is/are correctly identified?
- It accounts for about 30.1% of India's GDP.
- It accounts for about 35.4% of manufacturing output.
- It accounts for about 25% of the country's total exports.
- Over 28 crore persons of employment have been reported on the Udyam Registration Portal (including the Udyam Assist Platform).
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 1, 2, 3 and 4
Q4. Which of the following described Micro, Small and Medium Enterprises as forming 'the backbone of India's industrial economy'?
- A. Economic Survey 2025-26
- B. RBI Annual Report 2025-26
- C. NITI Aayog Strategy Document
- D. Fifteenth Finance Commission Report
Q5. The National Small Industries Corporation (NSIC), recently upgraded to a Schedule 'A' CPSE, functions as a Central Public Sector Enterprise under which Ministry?
- A. Ministry of Micro, Small and Medium Enterprises
- B. Ministry of Commerce and Industry
- C. Ministry of Heavy Industries
- D. Ministry of Finance
Q6. NSIC's recent upgrade was from Schedule 'B' to Schedule 'A'. Central Public Sector Enterprises (CPSEs) are categorised into how many such schedules?
- A. Three
- B. Four
- C. Five
- D. Six
Q7. With reference to International MSME Day, consider the following statements:
1. The United Nations designated 27 June as MSME Day, while India observes it through the 'Udyami Bharat' series of events.
2. The UN General Assembly resolution designating the day was adopted in 2015 alongside the Sustainable Development Goals.
3. Globally, MSMEs contribute about 50% of GDP, a higher share than the roughly 30% they contribute to India's GDP.
Which of the statements given above is/are correct?
- The United Nations designated 27 June as MSME Day, while India observes it through the 'Udyami Bharat' series of events.
- The UN General Assembly resolution designating the day was adopted in 2015 alongside the Sustainable Development Goals.
- Globally, MSMEs contribute about 50% of GDP, a higher share than the roughly 30% they contribute to India's GDP.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q8. According to the United Nations, MSMEs account for approximately what proportion of all businesses worldwide?
- A. About 50%
- B. About 70%
- C. About 90%
- D. About 99%
Q9. The Prime Minister's Employment Generation Programme (PMEGP), one of the schemes promoted on MSME digital platforms, is implemented at the national level by which nodal agency?
- A. Khadi and Village Industries Commission (KVIC)
- B. National Small Industries Corporation (NSIC)
- C. Small Industries Development Bank of India (SIDBI)
- D. National Bank for Agriculture and Rural Development (NABARD)
Q10. With reference to the Vidarbha Specific Training for Empowering MSMEs (VSTEM) programme, consider the following:
1. It was organised by the Reserve Bank of India's Nagpur Regional Office.
2. The 2026 edition was held at Bhandara to commemorate International MSME Day.
3. It is a statutory scheme established under the MSMED Act, 2006.
4. It is open to MSMEs across all States of India with no regional focus whatsoever.
Which of the above is/are correctly identified?
- It was organised by the Reserve Bank of India's Nagpur Regional Office.
- The 2026 edition was held at Bhandara to commemorate International MSME Day.
- It is a statutory scheme established under the MSMED Act, 2006.
- It is open to MSMEs across all States of India with no regional focus whatsoever.
- A. 1 and 2
- B. 2 and 4
- C. 1, 2 and 3
- D. 1 and 4
Q11. Which one of the following is the flagship scheme providing collateral-free, third-party-guarantee-free credit guarantees on loans extended to micro and small enterprises?
- A. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- B. Prime Minister's Employment Generation Programme (PMEGP)
- C. Trade Receivables Discounting System (TReDS)
- D. MSME Trade Enablement and Marketing (MSME-TEAM) Scheme
Q12. Which one of the following is the primary statute that provides the legal definition and classification of micro, small and medium enterprises in India?
- A. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
- B. Industries (Development and Regulation) Act, 1951
- C. Companies Act, 2013
- D. Small Industries Development Bank of India Act, 1989