UPSC Prelims Practice Questions — NITI Aayog releases report on “Achieving Efficiencies in MSME Sector through Convergence of Schemes”

Q1. The classification of enterprises administered by the Ministry of Micro, Small and Medium Enterprises, whose investment and turnover thresholds were revised with effect from 1 April 2025, derives its statutory basis from which one of the following?

  • A. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
  • B. Industries (Development and Regulation) Act, 1951
  • C. Factories Act, 1948
  • D. Companies Act, 2013

Q2. The 18 schemes evaluated for convergence in the NITI Aayog report 'Achieving Efficiencies in MSME Sector through Convergence of Schemes' are administered by which one of the following ministries?

  • A. Ministry of Commerce and Industry
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. Ministry of Skill Development and Entrepreneurship
  • D. Ministry of Textiles

Q3. Which one of the following is described as the centrepiece recommendation of the NITI Aayog report 'Achieving Efficiencies in MSME Sector through Convergence of Schemes'?

  • A. An AI-powered centralized digital platform integrating schemes, compliance, finance and market intelligence
  • B. Immediate merger of all 18 MSME schemes into a single scheme
  • C. Full transfer of MSME schemes to State governments
  • D. Creation of a dedicated MSME Development Bank

Q4. The credit guarantee cover for micro and small enterprises, enhanced from ₹5 crore to ₹10 crore in the Union Budget 2025-26, is operationalized primarily through which one of the following?

  • A. National Bank for Agriculture and Rural Development (NABARD)
  • B. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  • C. Reserve Bank of India
  • D. National Investment and Infrastructure Fund

Q5. The recommendation for an AI-powered centralized digital platform for MSMEs — integrating schemes, compliance, finance and market intelligence — was put forward by which one of the following bodies?

  • A. NITI Aayog
  • B. Ministry of Electronics and Information Technology
  • C. Reserve Bank of India
  • D. Small Industries Development Bank of India

Q6. With reference to the contribution of the MSME sector to the Indian economy (latest available figures), which of the following statements is/are NOT correct?

  1. MSMEs account for about 30.1% of India's GDP.
  2. MSMEs account for about 45.73% of India's exports.
  3. MSMEs account for about 35.4% of manufacturing output.
  4. MSMEs contribute more than 70% of India's total GDP.
  • A. 1 and 2
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4