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GS Paper IUPSC Prelims 2023
Industry & Infrastructure
Question No. 71Interactive Test Mode
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+2-0.66

Q71. Consider the following statements with reference to India: 1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between 15 crore and 25 crore. 2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector. Which of the statements given above is/are correct?

Consider the following statements with reference to India:

  1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between 15 crore and 25 crore.
  2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements given above is/are correct?

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2023 • Indian Economy

Correct Answer: Option (B) — 2 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is incorrect: Under the original MSMED Act, 2006, medium manufacturing enterprises were defined by investment between ₹5 crore and ₹10 crore (under revised 2020 composite criteria: investment up to ₹50 crore and turnover up to ₹250 crore).
  • Statement 2 is correct: As per RBI's Master Directions on Priority Sector Lending (PSL), bank loans to MSMEs are eligible for classification under the priority sector lending framework.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2023 (Q71)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Industry & Infrastructure
Official Answer KeyOption (B) — 2 only

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Frequently Asked Questions — UPSC Prelims 2023 Q71

What is the official answer for UPSC Prelims 2023 GS Paper I Question 71 (Indian Economy)?

The official UPSC answer key for this 2023 Indian Economy (Industry & Infrastructure) question is Option (B): "2 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2023 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Industry & Infrastructure". You can explore all repeated questions from Industry & Infrastructure in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Industry & Infrastructure UPSC Prelims question using option elimination?

To solve Industry & Infrastructure questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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