UPSC Prelims Practice Questions — ‘CIE scheme to boost local making, cut import dependence’

Q1. The Scheme for Enhancement of Construction and Infrastructure Equipment (CIE), announced in the Union Budget 2026-27, is being steered by which one of the following as its lead ministry?

  • A. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • B. Ministry of Heavy Industries
  • C. Ministry of Road Transport and Highways
  • D. Ministry of Housing and Urban Affairs

Q2. Which one of the following best describes the essential design of the CIE scheme as announced?

  • A. A customs duty exemption regime for imported high-end construction machinery, coupled with a phased localisation roadmap for importers
  • B. An interest subvention facility for contractors and MSMEs purchasing construction equipment from domestic manufacturers
  • C. An incentive scheme to promote domestic production of high-value, technologically advanced construction and infrastructure equipment
  • D. A viability gap funding window for public infrastructure projects that deploy indigenously manufactured equipment

Q3. Under the capital goods component of the Union Budget 2026-27, the Hi-Tech Tool Rooms proposed as digitally enabled automated service bureaus are to be established by which one of the following?

  • A. MSME Technology Centres under the Ministry of Micro, Small and Medium Enterprises
  • B. State industrial development corporations in partnership with private equipment makers
  • C. Central Public Sector Enterprises, at two locations
  • D. Industry accelerators recognised by DPIIT under the Startup India programme

Q4. Consider the following statements regarding the outlay and targets of the CIE scheme: 1. It is expected to incentivise at least ₹1 lakh crore of investment. 2. Detailed guidelines, including a budget allocation spread over seven years, are expected to be notified by mid-2026. 3. It seeks to raise domestic value addition in the covered equipment to over 50 per cent. 4. The entire lifetime incentive outlay of the scheme was fully appropriated in the Union Budget 2026-27, the ₹200 crore provided for that year being the scheme's complete outlay. Which of the above is/are NOT correct?

  1. It is expected to incentivise at least ₹1 lakh crore of investment.
  2. Detailed guidelines, including a budget allocation spread over seven years, are expected to be notified by mid-2026.
  3. It seeks to raise domestic value addition in the covered equipment to over 50 per cent.
  4. The entire lifetime incentive outlay of the scheme was fully appropriated in the Union Budget 2026-27, the ₹200 crore provided for that year being the scheme's complete outlay.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 4 only

Q5. The figure of ₹1 lakh crore that is cited in connection with the CIE scheme denotes which one of the following?

  • A. The budgetary outlay earmarked for the scheme over its seven-year period
  • B. The investment the scheme is expected to incentivise
  • C. The projected size of India's construction equipment industry in 2029-30
  • D. The annual value of India's imports of construction and infrastructure equipment

Q6. As reported, the CIE scheme envisages participation extending across which one of the following?

  • A. Only original equipment manufacturers with an annual turnover above a prescribed threshold
  • B. Only importers of high-end equipment who commit to a phased localisation roadmap
  • C. Contractors, equipment-rental operators and infrastructure developers deploying the equipment
  • D. Component makers and subsystem suppliers through to final equipment manufacturers

Q7. Among the equipment categories brought within the CIE scheme's ambit, for which one has India been the most heavily import-reliant, with China as a key supplier?

  • A. Fire-fighting equipment for high-rise buildings
  • B. Tunnel-boring machines
  • C. Lifts and elevators for multi-storey buildings
  • D. Hydraulic excavators and backhoe loaders

Q8. Consider the following Production Linked Incentive schemes: 1. PLI Scheme for Automobile and Auto Components 2. PLI Scheme on the National Programme on Advanced Chemistry Cell Battery Storage 3. PLI Scheme for Specialty Steel 4. PLI Scheme for White Goods (air conditioners and LED lights) Which of the above is/are correctly identified as being implemented by the same ministry that is steering the CIE scheme?

  1. PLI Scheme for Automobile and Auto Components
  2. PLI Scheme on the National Programme on Advanced Chemistry Cell Battery Storage
  3. PLI Scheme for Specialty Steel
  4. PLI Scheme for White Goods (air conditioners and LED lights)
  • A. 1 and 2
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 3 only

Q9. Consider the following statements comparing the CIE scheme with India's Production Linked Incentive (PLI) programme: 1. The umbrella PLI programme covers 14 sectors with an approved outlay of about ₹1.97 lakh crore, whereas the CIE scheme carries a provision of ₹200 crore in the year of its Budget announcement. 2. In the PLI programme, DPIIT undertakes overall coordination and monitoring while individual schemes are implemented by the respective administrative ministries. 3. Unlike the PLI schemes, the CIE scheme had its detailed guidelines on incentives and investment commitments notified in the same session in which it was announced. Which of the statements given above is/are correct?

  1. The umbrella PLI programme covers 14 sectors with an approved outlay of about ₹1.97 lakh crore, whereas the CIE scheme carries a provision of ₹200 crore in the year of its Budget announcement.
  2. In the PLI programme, DPIIT undertakes overall coordination and monitoring while individual schemes are implemented by the respective administrative ministries.
  3. Unlike the PLI schemes, the CIE scheme had its detailed guidelines on incentives and investment commitments notified in the same session in which it was announced.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. Consider the following statements about India's construction equipment sector, in the context of which the CIE scheme has been announced: 1. The industry's total sales in 2025-26 exceeded those of 2024-25, driven entirely by a recovery in domestic demand. 2. India is the third-largest construction equipment market in the world, behind China and the United States. 3. In 2025-26, domestic sales of construction equipment fell by about 7 per cent even as exports grew by over 30 per cent. Which of the statements given above is/are correct?

  1. The industry's total sales in 2025-26 exceeded those of 2024-25, driven entirely by a recovery in domestic demand.
  2. India is the third-largest construction equipment market in the world, behind China and the United States.
  3. In 2025-26, domestic sales of construction equipment fell by about 7 per cent even as exports grew by over 30 per cent.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. The Union Minister under whose ministry's authority the CIE scheme is being finalised concurrently holds charge of which one of the following ministries?

  • A. Ministry of Mines
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. Ministry of Steel
  • D. Ministry of Road Transport and Highways