UPSC Prelims Practice Questions — Cabinet approves Rs 10,000 Crore Scheme to Make India a Global Container Manufacturing Hub

Q1. With reference to the twenty-foot equivalent unit (TEU) used in container shipping, consider the following statements: Which of the statements given above is/are correct?

  1. A standard 40-foot container is counted as two TEUs.
  2. A 20-foot high-cube container, being taller than a standard box, is counted as more than one TEU.
  3. A port's throughput stated in TEUs indicates the total weight of cargo handled at the port.
  • A. 1 only
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 2 and 3 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. India's long-term shipbuilding target is expressed in gross tonnage, while its container-manufacturing target is expressed in twenty-foot equivalent units (TEUs).
  2. Gross tonnage measures the maximum weight of cargo a ship can carry, while a TEU measures the weight of cargo a container can hold.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. With reference to interest subvention and output-linked production support as tools of industrial policy, consider the following statements: Which of the statements given above is/are NOT correct?

  1. Interest subvention lowers the effective cost of borrowed capital and can therefore ease the financing of a plant before it produces anything.
  2. Support paid per unit produced and sold leaves the risk of weak sales with the producer rather than with the exchequer.
  3. Interest subvention, like output-linked support, rises in proportion to the number of units a plant actually sells.
  • A. 2 and 3 only
  • B. 1 only
  • C. 1 and 3 only
  • D. 3 only

Q4. Consider the following assertion: It is reasonable for a container manufacturing scheme to set a higher minimum annual capacity for a greenfield unit than for a brownfield unit. Which of the statements given above support/supports the assertion?

  1. A greenfield unit must bear the full fixed cost of land, buildings and utilities, so it needs a larger output to spread that cost.
  2. A brownfield unit adds to facilities already operating at a site, so even a modest increment can raise the site to a viable total scale.
  3. In the context of foreign investment, a brownfield investment always means a foreign firm acquiring an existing Indian company outright.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1 only

Q5. With reference to local content requirements in industrial policy, consider the following statements: Which of the statements given above is/are correct?

  1. A rising domestic-content condition in a production scheme aims to draw component industries, such as castings and specialised steel, into the domestic supply chain.
  2. Under the WTO Agreement on Trade-Related Investment Measures, a local content condition escapes scrutiny if it is attached to a subsidy rather than imposed as a mandatory rule.
  3. The WTO Agreement on Trade-Related Investment Measures applies to investment measures related to trade in goods and not to services.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q6. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Raising the domestic-content requirement in a production-support scheme reduces the scope for subsidised output to be little more than imported kits assembled in the country.
  2. Under the WTO TRIMs Agreement, requirements to purchase or use products of domestic origin appear in the Illustrative List of measures inconsistent with national treatment.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct