Government Policy Towards Small Business

What type of credit policy does the government provide for small scale industries?

• Tax exemptions only for large corporations.

• High-interest loans without guarantees for small scale industries.

• Subsidized loans and credit guarantees for small scale industries.

• No financial support for any industries.

How many items has the Government of India reserved for exclusive production by small scale industries?

• 150

• 372

• 250

• 500

What is the excise exemption limit raised to for small industries?

• Rs. 1.5 crore

• Rs. 75 lakh

• Rs. 2 crore

• Rs. 50 lakh

Which government body gives preference to products of small enterprises?

• National Institute of Standards and Technology

• Department of Commerce

• Federal Trade Commission

• Small Business Administration (SBA)

Name one institute set up by the government for the promotion of small-scale industries.

• Small Industries Development Bank of India (SIDBI)

• Small Business Administration (SBA)

• Ministry of Micro, Small and Medium Enterprises (MSME)

• National Small Industries Corporation (NSIC)

What is the role of the Small Industrial Development Bank of India (SIDBI)?

• The role of SIDBI is to promote and finance small-scale industries in India.

• To regulate foreign investments in India.

• To provide loans exclusively to large corporations.

• To manage the country's monetary policy.

How does the government support small scale industries in terms of loans?

• Loans are only available for agricultural purposes.

• The government only provides grants to large corporations.

• Small scale industries are not eligible for any financial assistance.

• The government provides loans to small scale industries through subsidized interest rates, credit guarantees, and specific loan schemes like MUDRA.

What is the significance of the District Industries Centres (DICs)?

• DICs are primarily focused on large-scale manufacturing.

• DICs are significant for promoting small-scale industries, providing support services, and implementing government industrial policies.

• DICs only provide financial assistance to established businesses.

• DICs are responsible for international trade negotiations.

What are the benefits of the liberalised credit policy for small businesses?

• Limited access to government grants

• Stricter loan approval processes

• Increased interest rates for loans

• Easier access to financing, improved cash flow management, and enhanced growth opportunities.

How does the government help small scale industries compete with large scale industries?

• By providing free land to large scale industries

• The government helps small scale industries compete with large scale industries by providing financial assistance, subsidies, technology access, easier credit, tax incentives, and supportive policies.

• By imposing stricter regulations on small businesses

• By eliminating all taxes for large scale industries