Incentives in Industrial Development

What are incentives in the context of industrial development?

• Tax penalties for underperforming industries

• Financial or non-financial support to promote industrial growth

• Environmental regulations for factories

• Legal restrictions on exports

A subsidy is best defined as:

• A tax collected by the government

• A financial aid to support specific economic activities

• An import duty

• An environmental charge

Bounties refer to:

• Financial penalties

• Rewards offered by private firms

• Government financial grants to promote exports

• Corporate investments

One key reason for offering incentives to industries is:

• To reduce government revenue

• To promote growth in already developed areas

• To attract industries to backward areas

• To reduce the cost of imports

What is a common problem with incentive schemes?

• They are too easy to access

• Misuse and lack of monitoring

• Excessive taxation

• High interest rates

Which of the following is an incentive scheme in operation in India?

• SEBI Regulation Act

• Capital Investment Subsidy Scheme

• Income Declaration Scheme

• Demonetization

Which body is commonly responsible for implementing industrial incentives in India?

• Ministry of Education

• Ministry of External Affairs

• Ministry of MSME or State Industrial Development Corporations

• Reserve Bank of India

The main objective of incentives in backward areas is to:

• Increase urbanization

• Promote balanced regional development

• Encourage imports

• Reduce foreign investment

What is “subsidised consultancy service”?

• Free government audits

• Government support for expert business advice at lower costs

• Free marketing services

• Private investment in public services

The transport subsidy scheme is meant to:

• Increase fuel costs

• Encourage industrial units to export raw materials

• Reduce the cost of transporting goods from/to backward areas

• Promote the use of public transport