UPSC Prelims 1997 · General Studies
Question 8: Economy and Social Development
The number of industries for which industrial licensing is required has now been reduced to
AnswerThe answer is (b).
Since 1991, industrial licensing has been cut back sharply. Only a short list of industries is left under compulsory licensing, kept for reasons of security and strategy, public health and safety, hazard to the environment and social concerns: for example alcohol, tobacco products, defence equipment, industrial explosives and hazardous chemicals. The key puts the count at 6, and the list has been trimmed further since.
Why each option is right or wrong
- (a) 15 is more than the short list the key takes as current.
- (b) Right: the key counts 6 industries still under compulsory licensing.
- (c) 35 is far too high for any post-1991 list.
- (d) 20 is above even the 1991 list of 18 industries, so it is too high.
Worth knowing: The compulsory-licensing list kept shrinking through the 1990s and later, so the right figure depends on the date.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1997, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.