UPSC Prelims Practice Questions — MSME Ministry Upgrades National Small Industries Corporation (NSIC) to ‘Schedule A’ CPSE

Q1. The categorisation of Central Public Sector Enterprises (CPSEs) into Schedule 'A', 'B', 'C' and 'D' categories is administered by which one of the following?

  • A. Department of Public Enterprises
  • B. NITI Aayog
  • C. Department of Investment and Public Asset Management (DIPAM)
  • D. Department for Promotion of Industry and Internal Trade (DPIIT)

Q2. Consider the following statements regarding the Schedule (A/B/C/D) categorisation of CPSEs: 1. The schedule into which a CPSE is placed mainly determines its organizational structure and the pay of its Board-level incumbents. 2. Proposals for categorisation are initiated by the Department of Public Enterprises and are merely endorsed by the concerned administrative Ministry. 3. A CPSE's performance on the prescribed quantitative parameters is assessed over the preceding five years. Which of the statements given above is/are correct?

  1. The schedule into which a CPSE is placed mainly determines its organizational structure and the pay of its Board-level incumbents.
  2. Proposals for categorisation are initiated by the Department of Public Enterprises and are merely endorsed by the concerned administrative Ministry.
  3. A CPSE's performance on the prescribed quantitative parameters is assessed over the preceding five years.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The categorisation of a CPSE into Schedules A, B, C or D is administered by the Department of Public Enterprises. However, the proposal for categorisation of a particular CPSE is required to be initiated by which one of the following?

  • A. The concerned administrative Ministry/Department
  • B. The Department of Public Enterprises on its own motion
  • C. NITI Aayog
  • D. The Department of Investment and Public Asset Management (DIPAM)

Q4. As per the Department of Public Enterprises framework, the Miniratna category of CPSEs is sub-divided into how many categories?

  • A. One
  • B. Two
  • C. Three
  • D. Four

Q5. With reference to the National Small Industries Corporation Ltd (NSIC), consider the following statements: 1. It was established in 1955. 2. It functions under the Ministry of Heavy Industries. 3. Its mandate is to promote, aid and foster the growth of micro and small enterprises. 4. It holds Miniratna status. Which of the above is/are correctly identified?

  1. It was established in 1955.
  2. It functions under the Ministry of Heavy Industries.
  3. Its mandate is to promote, aid and foster the growth of micro and small enterprises.
  4. It holds Miniratna status.
  • A. 1, 3 and 4
  • B. 1, 2 and 3
  • C. 2 and 4 only
  • D. 1 and 3 only

Q6. In which year was the National Small Industries Corporation Ltd (NSIC) established?

  • A. 1948
  • B. 1955
  • C. 1956
  • D. 1964

Q7. At the time of its 2026 upgrade to a Schedule 'A' CPSE, NSIC was described as having served the MSME/small industries sector for more than how many decades?

  • A. Five
  • B. Six
  • C. Seven
  • D. Eight

Q8. With reference to the 2026 upgrade of NSIC, consider the following statements: 1. The upgrade was effected through Notification No. K-01/26/2024-SME dated 26 February 2026. 2. NSIC was upgraded from Schedule 'B' to Schedule 'A'. 3. The upgrade was formally notified by the Ministry of Micro, Small and Medium Enterprises. 4. The upgrade lowered the pay scales of NSIC's Board-level incumbents. Which of the above is/are correctly identified?

  1. The upgrade was effected through Notification No. K-01/26/2024-SME dated 26 February 2026.
  2. NSIC was upgraded from Schedule 'B' to Schedule 'A'.
  3. The upgrade was formally notified by the Ministry of Micro, Small and Medium Enterprises.
  4. The upgrade lowered the pay scales of NSIC's Board-level incumbents.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2 and 4

Q9. Under the revised MSME classification effective from 1 April 2025, a 'medium enterprise' is one whose investment in plant and machinery or equipment does not exceed:

  • A. Rs 50 crore
  • B. Rs 100 crore
  • C. Rs 125 crore
  • D. Rs 250 crore

Q10. Consider the following statements regarding the MSME classification framework: 1. The Micro, Small and Medium Enterprises Development Act was enacted in 2006. 2. The current MSME classification uses a composite criterion of both investment and turnover. 3. Under the revision effective from 1 April 2025, a small enterprise has a turnover limit not exceeding Rs 250 crore. 4. The revised classification limits took effect from 1 April 2025. Which of the statements given above is/are correct?

  1. The Micro, Small and Medium Enterprises Development Act was enacted in 2006.
  2. The current MSME classification uses a composite criterion of both investment and turnover.
  3. Under the revision effective from 1 April 2025, a small enterprise has a turnover limit not exceeding Rs 250 crore.
  4. The revised classification limits took effect from 1 April 2025.
  • A. 1, 2 and 4
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 3 only

Q11. Consider the following statements comparing Ratna status and Schedule categorisation of CPSEs: 1. A CPSE must hold Miniratna Category-I status and be a Schedule 'A' CPSE to be eligible for consideration as a Navratna. 2. NSIC, a Miniratna CPSE under the Ministry of MSME, has been categorised as a Schedule 'A' CPSE. 3. The Schedule 'A' categorisation and the Navratna status of a CPSE are both conferred by the Ministry of MSME. Which of the statements given above is/are correct?

  1. A CPSE must hold Miniratna Category-I status and be a Schedule 'A' CPSE to be eligible for consideration as a Navratna.
  2. NSIC, a Miniratna CPSE under the Ministry of MSME, has been categorised as a Schedule 'A' CPSE.
  3. The Schedule 'A' categorisation and the Navratna status of a CPSE are both conferred by the Ministry of MSME.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q12. Regarding the consequences of a CPSE's Schedule categorisation, consider the following statements: 1. A CPSE's schedule categorisation automatically confers Navratna status on it. 2. Schedule categorisation has implications for the pay of a CPSE's Board-level incumbents. 3. Schedule 'A' status enhances a CPSE's financial, operational and management powers. 4. Schedule categorisation bears upon the organizational structure of the CPSE. Which of the above is/are correctly identified?

  1. A CPSE's schedule categorisation automatically confers Navratna status on it.
  2. Schedule categorisation has implications for the pay of a CPSE's Board-level incumbents.
  3. Schedule 'A' status enhances a CPSE's financial, operational and management powers.
  4. Schedule categorisation bears upon the organizational structure of the CPSE.
  • A. 2, 3 and 4
  • B. 1, 2 and 3
  • C. 1 and 4 only
  • D. 2 and 4 only