ACTS AND POLICIES_250129_185517

ACTS AND POLICIES Exam Dais App
ACTS AND POLICIES:
(1)The Factories Act, 1948 (2) The Industrial Disputes Act, 1947 (3) Wage Legislation
The Indian Contract Act The Indian Negotiable Instruments Act (4) The Indian Sale of
Goods Act The Indian Partnership Act Social Legislation (5) Trade & merchandise
marks Act Central-Excise (6) Sales Tax (7) The Income Tax Act (8) Pollution Control
Act (9) Indian Boiler Act (10) Explosive License Act (11) Drugs and Cosmetics
Manufacturing License, (12) KVIC Act, (13) Industrial fecilitation act, (14) IDR act, (15)
MSMED act, (16) Industrial policy, (17) Aerospace policy.
1. Factories Act 1948

● The article gives a short explanation of the Factories Act, 1948 in detail. The
article also discusses the objectives, timeline and provisions of the law.
● The Factories Act, 1948, sets the safety standards for workers employed in
factories. It is applied to factories manufacturing goods, including weaving
cloth, knitting of hosiery and other knitwear, clothing, and footwear
production, dyeing and finishing textiles, manufacturing footwear, etc.
● The Factories Act, 1948, regulates the working hours for all workers.
According to the Act, a working week should not exceed 60 hours.
● The objectives of this Act are to regulate the hours or working time in
factories so that workers are not overworked or unduly exhausted. The Act’s
main objectives are also to protect workers’ health and safety.
The Factories Act, 1948, regulates the hours of work and minimum wages
● The Factories Act, 1948, mandates the payment of minimum wages to the
workers by prescribing a fixed pay rate. An employer shall pay their
employees at least the prescribed minimum wage rate. If an employee is paid
less than minimum wage, the employer should pay that employee at least
what the law requires. This Act reminds employers that any failure on their
part to comply with its provisions will have serious legal consequences.
● The Act requires employers to allow a weekly holiday to their workers. It
further makes it obligatory for the employer to provide proper sanitary
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facilities and a clean potable water supply in the factory or workplace. Strict
action will be taken against the employer if they fail in providing these
facilities to the workers.
● Employers are also required to set up first aid boxes in their factory, store
first aid records, and ensure proper arrangements for transporting injured
workers to a hospital or in-house medical facilities.
● Apart from these, the Act has several relevant provisions defining the duty of
an employer who has in-house medical facilities and the duty of a doctor who
is an official medical officer at the factory. The Act also defines the procedure
to be followed if a complaint of any kind is received by or made to the
government’s labour department.
The Factories Act, 1948, also provides for implementing some administrative
measures regarding which subsequent governments have framed appropriate rules.
Some of these measures are as follows:
1. The Factory Act, 1948, has provisions for the constitution of a Child Labour
Committee in every factory. This committee should consist of employers,
workers, representatives from local authorities and a medical officer. The
committee is responsible for regulating and controlling employment in the age
group of 14 to 18 years at factories where more than 20 persons are
employed.
2. An industrial dispute between the employer and worker(s) can be resolved by
a Conciliation Officer appointed by the government. The authority of this
officer is to conciliate and not to mediate.
3. The governments appoint labour officers to look after factory workers’
interests; this officer is a government official. The labour officers must see
that no violation of any provisions of the Factories Act, 1948, takes place at
any factory in their territories.
4. The state governments or local authorities have set up welfare funds in every
factory. This fund may be established for general or specific purposes
depending upon entrepreneurs’ or local authorities’ initiatives.
Objectives of Factories Act, 1948

● To protect the health and safety of workers
● To ensure that factories adhere to global best practices in the factories
● To provide a fair and decent livelihood for all working-class people
● To reduce any social or industrial tensions
Provisions of Factories Act, 1948

● Factories Act, 1948, limits work hours to 48 hours a week, and overtime work
should not be more than nine hours a day. Factory Schedule Rules specify that
a limited working day shall not exceed ten consecutive hours; this regulation
does not apply during a public holiday or when an emergency requires
immediate action and substantial loss has occurred.
● The Factories Act, 1948, sets the safety standards for workers employed in
factories. It is applied to manufacturing goods, including weaving, knitting of
hosiery and other knitwear, clothing and footwear production, dyeing and
finishing textiles, etc.
Period of application
● The Factories Act was implemented in India following the general elections
held in 1951 for the Legislative Assembly of States and Union Territories that
fall under the Indian Union, with effect from June 15, 1951.
● The Factories Act, 1948, was further amended in 1951, 1960, 1961, and 1972. In
addition to this amendment, the Rules of 1951, 1960, and 1961 have been
amended. The Factories Act was applied to the newly formed States in 1965
by the Chief Secretaries of these States.
● It applies only to certain factories employing ten or more workers (including
apprentices).
Conclusion
● The Factories Act was passed in 1948 by the Parliament of India. The Act is
landmark legislation aimed at deriving maximum profit for the industrial
sector in India. The Factories Act is also known as the Factories (Amendment)
Act, 1951, and it has been amended four times since its inception to meet the
needs of India’s industrial scenario and business practices. The Factories Act,
1948, falls under the category of Labour Laws in India.
● The Factories Act, 1948, repealed the Child Labour (Prohibition and
Regulation) Act 1956; this Act was applied to factories only employing 20 or
more workers.
The Industrial Disputes Act, 1947

Key Objectives
1. To prevent and resolve industrial disputes.

2. To promote harmonious relations between employers and employees.
3. To ensure fair treatment for workers.
4. To regulate lay-offs, retrenchment, and closure of industrial establishments.
5. To provide mechanisms for dispute resolution.
Key Definitions
1. Industrial Dispute:
Any dispute between employers and employees or among employees

regarding employment, terms, or working conditions.
2. Workman:
Any person employed in an industry (excluding managerial or administrative
roles).
3. Industry:
Any systematic activity involving cooperation between employers and
workers, whether for profit or not.
Authorities Under the Act
1. Conciliation Officer: Appointed to mediate disputes.
2. Labor Court: Deals with issues like wages, dismissals, and reinstatement.
3. Industrial Tribunal: Handles broader disputes, including working conditions
and benefits.
4. National Tribunal: Resolves disputes of national importance.
Important Provisions
1. Works Committees (Section 3):
Established in units with 100+ workers to promote good relations.
2. Conciliation (Sections 4-6):

Attempts to resolve disputes through dialogue.
3. Adjudication (Sections 7-9):

Disputes unresolved by conciliation can be referred to Labor Courts,
Industrial Tribunals, or National Tribunals.
4. Strikes and Lockouts (Sections 22-25):
○ Regulates strikes by employees and lockouts by employers.

○ Strikes in public utility services require 14 days' prior notice.
5. Lay-Off, Retrenchment, and Closure (Sections 25A-25S):
○ Lay-off: Temporary suspension of work.

○ Retrenchment: Termination due to redundancy.
○ Closure: Permanent shutting down of a unit.
○ Compensation is mandatory in these cases.
6. Protected Workmen (Section 33):
Prevents victimization of trade union office bearers during disputes.
7. Voluntary Arbitration (Section 10A):

Disputes may be resolved through mutual agreement.
Penalties
1. Illegal strikes/lockouts: Fine and/or imprisonment.

2. Non-compliance with awards/settlements: Punishable under the Act.
MCQs on The Industrial Disputes Act, 1947
1. What is the main objective of the Industrial Disputes Act, 1947?
a) To protect managerial interests
b) To promote industrial harmony
c) To increase production
d) None of the above
Answer: b) To promote industrial harmony
2. Who is responsible for mediating industrial disputes?

a) Labor Court
b) Conciliation Officer
c) Works Committee
d) National Tribunal
Answer: b) Conciliation Officer
3. What is required for a strike in public utility services to be legal?

a) Written agreement from the employer
b) 14 days’ prior notice
c) Court approval
Answer: b) 14 days’ prior notice
4. What does Section 25A of the Act deal with?

a) Lay-offs
b) Strikes
c) Works Committees
d) Retrenchment
Answer: a) Lay-offs
5. Which authority deals with disputes of national importance?

a) Labor Court
b) Industrial Tribunal
c) National Tribunal
d) Works Committee
Answer: c) National Tribunal
6. What is the compensation required for retrenched workers under the Act?
a) 5 days' wages for every completed year of service
b) 15 days' wages for every completed year of service
c) 30 days' wages for every completed year of service
d) No compensation is required
Answer: b) 15 days' wages for every completed year of service
7. Which section defines "protected workmen"?

a) Section 10
b) Section 25
c) Section 33
d) Section 22
Answer: c) Section 33
8. What is the penalty for illegal strikes under the Act?
a) Only imprisonment
b) Only fine
c) Fine and/or imprisonment
Answer: c) Fine and/or imprisonment
Wage Legislation
India's wage legislation ensures fair compensation, timely payment of wages, and
safeguards against exploitation. The following are key laws:
1. The Minimum Wages Act, 1948
● Objective: Ensures a statutory minimum wage for workers to meet basic living
standards.
● Key Features:
○ Fixes wages for skilled and unskilled workers across various industries.
○ Revision of minimum wages every five years.
○ Penal provisions for employers failing to comply.
2. The Payment of Wages Act, 1936
● Objective: Ensures timely payment of wages to employees without

unauthorized deductions.
● Key Features:
○ Applicable to employees earning below a prescribed wage threshold.
○ Wages must be paid by the 7th or 10th of the following month
(depending on workforce size).
○ Deductions are limited to 50% of wages for general purposes and 75%
for housing advances.
3. The Equal Remuneration Act, 1976
● Objective: Ensures equal pay for men and women performing the same work.
● Key Features:
○ Prohibits gender discrimination in recruitment, training, and pay.
○ Penalties for violations include fines and imprisonment.
The Indian Contract Act, 1872
The Indian Contract Act governs the formation, execution, and termination of
contracts.
1. Key Elements of a Valid Contract:
1. Offer and acceptance.

2. Intention to create legal relations.
3. Lawful consideration and object.
4. Competent parties (age and sound mind).
5. Free consent (no coercion, fraud, or undue influence).
6. Not expressly declared void.
2. Types of Contracts:
1. Void Contract: Not enforceable by law.

2. Voidable Contract: Valid until annulled by one party.
3. Illegal Contract: Violates the law and is unenforceable.
3. Discharge of Contracts:
1. Performance of contractual obligations.

2. Agreement or consent (mutual).
3. Breach of contract.
4. Frustration or impossibility of performance.
The Indian Negotiable Instruments Act, 1881
This Act regulates negotiable instruments like promissory notes, bills of exchange,
and cheques.
1. Negotiable Instruments:
● A negotiable instrument is a written document guaranteeing payment to the

holder or bearer.
● Examples: Promissory notes, bills of exchange, cheques.
2. Key Features:
1. Transferable by delivery or endorsement.

2. Legal recognition and protection under the Act.
3. Dishonor of cheques covered under Section 138 with provisions for penalties.
3. Dishonor of Negotiable Instruments:
● Reasons for Dishonor: Insufficient funds, mismatched signatures, or post-dated

cheques.
● Legal Action: A cheque bounce can lead to criminal proceedings under Section
138.
MCQs
Wage Legislation
1. Under the Minimum Wages Act, wages must be revised every:
a) 2 years
b) 3 years
c) 5 years
d) 10 years
Answer: c) 5 years
2. The Payment of Wages Act applies to employees earning below:

a) ₹18,000 per month
b) ₹15,000 per month

c) ₹10,000 per month
d) ₹20,000 per month
Answer: b) ₹15,000 per month
3. Which Act ensures equal pay for men and women?
a) Payment of Wages Act
b) Equal Remuneration Act
c) Minimum Wages Act
d) Factories Act
Answer: b) Equal Remuneration Act
The Indian Contract Act
1. Which of the following is NOT a valid contract?

a) Offer and acceptance exist.
b) Lawful consideration is present.
c) Object is illegal.
d) Free consent is ensured.
Answer: c) Object is illegal
2. A contract is discharged by impossibility of performance. This is called:

a) Breach of contract
b) Frustration of contract
c) Voidable contract
d) Void contract
Answer: b) Frustration of contract
The Negotiable Instruments Act
1. What is NOT a type of negotiable instrument under the Act?

a) Promissory Note
b) Cheque
c) Bill of Exchange
d) Debit Card
Answer: d) Debit Card
2. Dishonor of a cheque due to insufficient funds is addressed under:

a) Section 120
b) Section 138
c) Section 135
d) Section 140
Answer: b) Section 138
3. Which party writes a cheque?

a) Payee
b) Drawer
c) Drawee
d) Endorser
Answer: b) Drawer
The Indian Sale of Goods Act, 1930
This Act governs the sale and purchase of goods, defining the rights and duties of
buyers and sellers.
Key Features
1. Contract of Sale (Section 4):
○ A contract of sale involves the transfer of ownership of goods from the

seller to the buyer for a price.
○ It includes agreements to sell and sales.
2. Goods (Section 2):
○ Existing Goods: Already owned/possessed by the seller.

○ Future Goods: To be manufactured or acquired later.
○ Contingent Goods: Dependent on future events.
3. Conditions and Warranties (Sections 12-17):
○ Condition: Essential to the contract (breach allows repudiation).

○ Warranty: Non-essential (breach allows damages but not repudiation).
4. Transfer of Ownership (Sections 18-25):
○ Ownership passes when parties intend it to, usually on delivery or

payment.
5. Performance of the Contract (Sections 31-44):
○ Delivery of goods and payment are obligations of both parties.
The Indian Partnership Act, 1932
The Partnership Act governs partnerships, a type of business arrangement where

two or more people share profits and liabilities.
Key Features
1. Definition (Section 4):
A partnership is an agreement between two or more persons to share profits

of a business carried on by all or any of them acting for all.
2. Essential Features:

○ Agreement.
○ Sharing of profits.
○ Mutual agency (partners act as agents and principals).

3. Types of Partnerships:
○ Partnership at Will: Can be dissolved anytime by notice.
○ Particular Partnership: Formed for a specific venture or period.
4. Rights and Duties of Partners:
○ Right to participate in business, access accounts, and share profits.
○ Duty to act in good faith, be diligent, and avoid conflicts of interest.
5. Dissolution of Partnership (Sections 39-55):
○ By Agreement: Mutual consent of partners.
○ Compulsory Dissolution: Insolvency or unlawful business.
○ By Court Order: Misconduct, incapacity, or breach of agreement.
Social Legislation in India
Social legislation is aimed at improving the welfare of weaker sections of society.
Key Social Legislation Acts
1. The Child Labour (Prohibition and Regulation) Act, 1986:
○ Prohibits employment of children below 14 in hazardous occupations.

○ Regulates working conditions in non-hazardous industries.
2. The Dowry Prohibition Act, 1961:
○ Bans giving and receiving dowry.
○ Imposes penalties for demanding dowry.
3. The Protection of Women from Domestic Violence Act, 2005:
○ Provides protection to women from physical, emotional, sexual, and
financial abuse.
4. The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act,
1989:
○ Prevents discrimination and violence against SC/ST communities.
5. The Maternity Benefit Act, 1961:
○ Grants maternity leave and benefits to women employees.
MCQs
The Indian Sale of Goods Act, 1930
1. What is a "future good" under the Sale of Goods Act?

a) Goods that exist but are not sold.
b) Goods yet to be manufactured or acquired.
c) Goods owned by the buyer.
d) Goods delivered but not paid for.
Answer: b) Goods yet to be manufactured or acquired
2. Ownership of goods passes when:

a) The buyer makes an offer.
b) The seller agrees to sell.
c) The parties intend it to pass.
d) Payment is complete.
Answer: c) The parties intend it to pass
The Indian Partnership Act, 1932
1. A partnership can be dissolved by:

a) Payment of debts
b) Mutual agreement
c) Purchase of shares
d) Retirement of one partner
Answer: b) Mutual agreement
2. The relationship of partners is based on:

a) Employer-employee relationship
b) Contractual agreement
c) Government approval
d) Ownership rights
Answer: b) Contractual agreement
Social Legislation
1. The Dowry Prohibition Act was enacted in:

a) 1948
b) 1961
c) 1986
d) 2005
Answer: b) 1961
2. Which Act provides maternity leave benefits?

a) The Domestic Violence Act
b) The Dowry Prohibition Act
c) The Maternity Benefit Act
d) The Child Labour Act
Answer: c) The Maternity Benefit Act
3. Under the SC/ST Act, what is the primary objective?

a) Prevent employment of children
b) Prevent atrocities against SC/ST communities
c) Regulate partnerships
d) Promote industrial relations
Answer: b) Prevent atrocities against SC/ST communities
The Trade and Merchandise Marks Act, 1958

The Trade and Merchandise Marks Act, 1958 was enacted to provide for the
registration, protection, and better use of trade and merchandise marks in India.
This Act was later replaced by the Trade Marks Act, 1999, but the principles remain
relevant for understanding intellectual property rights in trademarks.
Key Features of the Act
1. Objective:
○ Protect trademarks against unauthorized use.
○ Ensure distinctiveness of goods or services.
○ Prevent consumer confusion regarding the origin of products.
2. Definition of a Trademark:
○ A trademark is a visual symbol used to distinguish goods or services of

one enterprise from those of another. It includes a name, logo, word,
symbol, or combination.
3. Registration of Trademarks:
○ Registration grants exclusive rights to the owner.

○ It provides legal protection and prevents misuse.
○ A registered trademark is valid for 7 years (under this Act) and
renewable thereafter.
4. Infringement:
○ Infringement occurs when a registered trademark is used without
authorization.
○ Legal remedies include injunctions, damages, and destruction of
counterfeit goods.
5. Prohibited Marks:
○ Marks likely to deceive the public or cause confusion.
○ Scandalous, obscene, or offensive marks.
○ Marks identical or deceptively similar to existing ones.
6. Passing Off:
○ Refers to the unauthorized use of a trademark that misleads consumers

to believe it is associated with another business.
7. Offenses and Penalties:
○ Penalties for infringement include fines and imprisonment.
Benefits of Trademark Registration
1. Grants exclusive ownership rights.

2. Protects brand identity.
3. Provides legal remedies against infringement.
4. Increases brand trust and recognition.
MCQs on Trade and Merchandise Marks Act, 1958
1. What does a trademark represent?

a) Ownership of land
b) Visual identity of goods or services
c) A method of manufacturing
d) A contract between parties
Answer: b) Visual identity of goods or services
2. For how long was a trademark registration valid under the Trade and
Merchandise Marks Act, 1958?
a) 5 years
b) 7 years
c) 10 years
d) 15 years
Answer: b) 7 years
3. What is “passing off” in trademark law?

a) Unauthorized transfer of goods
b) Using another’s trademark to mislead consumers

c) Legal assignment of trademarks
d) Licensing of trademarks
Answer: b) Using another’s trademark to mislead consumers
4. Which of the following marks cannot be registered as a trademark?

a) Distinctive logos
b) Offensive or obscene marks
c) Unique brand names
d) Invented words
Answer: b) Offensive or obscene marks
5. What is the remedy for trademark infringement?

a) Compensation
b) Injunction
c) Both a and b
Answer: c) Both a and b
6. What is the term for a registered trademark being renewed?

a) 5 years
b) 7 years
c) Indefinitely renewable
d) Non-renewable
Answer: c) Indefinitely renewable
7. The term 'Trade Dress' refers to:

a) The product’s physical shape or packaging
b) The brand’s marketing slogan
c) A specific type of logo
d) Trademark licensing
Answer: a) The product’s physical shape or packaging
Sales Tax in India
Sales Tax is a form of indirect taxation levied on the sale of goods and services. It is
paid by the consumer, but collected by the seller, who remits it to the government.
Key Features of Sales Tax
1. Definition:
Sales tax is imposed by the government on the sale of goods within a country
or state. It is calculated as a percentage of the sale price of the goods or
services.
2. Types of Sales Tax:

○ Central Sales Tax (CST): Levied by the central government on interstate
sales (sales occurring between two states).
○ State Sales Tax: Levied by individual states on sales within their
jurisdiction.
○ Value Added Tax (VAT): A more modern form of sales tax, where tax is
levied on the value added at each stage of production and distribution.
VAT was later replaced by Goods and Services Tax (GST).
3. GST (Goods and Services Tax):
○ Objective: GST replaced multiple indirect taxes, including sales tax,

service tax, excise duties, and more, to create a unified tax structure
across India.
○ Key Features:
■ GST is levied on the sale of goods and services.
■ It is a destination-based tax (levied at the point of consumption).
■ GST is divided into three categories:
■ CGST: Central Goods and Services Tax.
■ SGST: State Goods and Services Tax.

■ IGST: Integrated Goods and Services Tax (levied on interstate
trade).
Calculation of Sales Tax
1. Taxable Sale Price:
○ The sales tax is calculated on the taxable sale price, which is the selling
price of the goods after deducting any allowable discounts.
2. Sales Tax Rate:
○ Sales tax rates differ from state to state, and the rates for goods and
services vary based on categories.
○ For example, GST tax slabs can range from 0% to 28%, depending on the
type of goods or services.
3. Payment Process:
○ Sellers are responsible for collecting the tax from consumers and
remitting it to the tax authorities.
○ Businesses are required to file periodic returns and pay the sales tax
collected.
Exemptions and Exclusions
● Certain goods and services may be exempted from sales tax (like essential
goods such as food items in some states).
● Exports of goods are usually exempted from sales tax or GST.
● Some goods may be taxed at a lower rate to promote their consumption (e.g.,
basic necessities like medicine).
MCQs on Sales Tax
1. Sales tax is an example of which type of tax?

a) Direct tax
b) Indirect tax
c) Progressive tax
d) Regressive tax
Answer: b) Indirect tax
2. Which of the following taxes is levied by the central government in India on
interstate sales?
a) State Sales Tax
b) Goods and Services Tax (GST)
c) Central Sales Tax (CST)
d) Value Added Tax (VAT)
Answer: c) Central Sales Tax (CST)
3. Which tax system replaced sales tax in India?

a) Value Added Tax (VAT)
b) Excise Duty
c) Goods and Services Tax (GST)
d) Income Tax
Answer: c) Goods and Services Tax (GST)
4. Under GST, the tax is levied on which of the following?

a) Only goods
b) Only services
c) Both goods and services
Answer: c) Both goods and services
5. Which tax is paid by the consumer but collected by the seller?
a) Income Tax
b) Sales Tax
c) Corporate Tax
d) Capital Gains Tax
Answer: b) Sales Tax
6. What is the full form of GST?

a) Government Sales Tax
b) General Sales Tax
c) Goods and Services Tax
d) Goods Sales Tax
Answer: c) Goods and Services Tax
7. Which of the following is exempt from sales tax in most states in India?
a) Luxury goods
b) Medicine
c) Cars
d) Alcoholic beverages
Answer: b) Medicine
8. What is the highest tax slab under the GST system in India?
a) 12%
b) 18%
c) 28%
d) 5%
Answer: c) 28%
9. Under GST, what is the term for the tax levied on interstate sales?
a) CGST
b) SGST
c) IGST
d) CST
Answer: c) IGST
The Income Tax Act, 1961
The Income Tax Act, 1961 is the key legislation governing the taxation of income in
India. It provides the framework for determining income, tax rates, exemptions, and
rebates applicable to individuals, companies, and other entities.
Key Features of the Income Tax Act, 1961
1. Scope of Income:
○ The Act defines income broadly, including income from salaries,

business profits, capital gains, and other sources like interest, rent, etc.
○ Section 2(24) of the Act defines "income" to include any kind of
monetary or non-monetary benefit derived.
2. Taxable Persons:
○ The Act applies to individuals, Hindu Undivided Families (HUF),

companies, firms, associates of persons (AOP), and bodies of individuals
(BOI).
3. Income Tax Slabs:
○ The Act specifies tax slabs for individuals, where the rate of tax
depends on the income bracket. For example:
■ For individuals below 60 years, income up to ₹2.5 lakh is exempt
from tax.
■ Income between ₹2.5 lakh and ₹5 lakh is taxed at 5%.
■ Income between ₹5 lakh and ₹10 lakh is taxed at 20%.
■ Income above ₹10 lakh is taxed at 30%.
4. Assessment Year (AY) and Previous Year (PY):
○ Previous Year is the financial year in which income is earned.

○ Assessment Year is the year in which the income is assessed for tax.
5. Heads of Income: The Act divides income into five heads:
○ Income from Salary: Includes basic salary, allowances, bonuses, etc.

○ Income from House Property: Income earned from properties (rented or
self-occupied).
○ Profit and Gains from Business or Profession: Income earned from
business activities or professional services.
○ Capital Gains: Income from the sale of capital assets (like property,
stocks, etc.).
○ Income from Other Sources: Income not covered under other heads,
such as interest, dividends, lottery winnings, etc.
6. Deductions:
○ Deductions are allowed under Section 80C to 80U for various

investments, expenses, and contributions like Life Insurance premiums,
contributions to Provident Fund (PF), National Savings Certificates
(NSC), and donations to charitable organizations.
7. Tax Rebates and Exemptions:
○ Section 87A: Tax rebate for individuals with income below ₹5 lakh.
○ Exemptions like House Rent Allowance (HRA), Leave Travel Allowance
(LTA), etc.
8. Filing of Returns:
○ Form ITR is used for filing income tax returns. The due date for filing
returns is typically July 31st for individuals (unless extended).
9. Penalties and Prosecution:
○ Failure to comply with tax regulations can lead to penalties, interest on

late payment, or prosecution in cases of tax evasion.
Key Provisions Under the Income Tax Act
1. Section 10 - Exemptions:
○ Income exempt from tax, like agricultural income, certain allowances,

etc.
2. Section 80C - Deductions:
○ Provides deductions for investments in specified schemes such as Public

Provident Fund (PPF), National Savings Certificates (NSC), etc.
3. Section 80D - Medical Insurance:
○ Deductions for premiums paid towards health insurance for self, spouse,
children, and parents.
4. Section 80E - Education Loans:
○ Provides deductions on interest paid for education loans.

5. Section 80G - Donations:
○ Deductions for donations to charitable institutions.
MCQs on The Income Tax Act, 1961
1. The Income Tax Act, 1961 applies to: a) Only individuals
b) Only companies
c) Individuals, companies, firms, HUF, etc.
Answer: c) Individuals, companies, firms, HUF, etc.
2. What is the maximum income tax rate applicable to an individual in India
under the Income Tax Act, 1961?
a) 10%
b) 15%
c) 30%
d) 35%
Answer: c) 30%
3. Which of the following is NOT considered a head of income under the Income
Tax Act, 1961?
a) Income from Salary
b) Income from Property
c) Profit and Gains from Business
d) Capital Expenditure
Answer: d) Capital Expenditure
4. Under Section 10 of the Income Tax Act, which of the following is exempt from
tax?
a) Salary income
b) Agricultural income
c) Income from business
d) Capital gains
Answer: b) Agricultural income
5. What is the maximum amount deductible under Section 80C of the Income
Tax Act for investments in specified savings schemes?
a) ₹1 lakh
b) ₹1.5 lakh
c) ₹2 lakh
d) ₹50,000
Answer: b) ₹1.5 lakh
6. Which of the following is eligible for a tax rebate under Section 87A?
a) Individuals earning below ₹3 lakh
b) Individuals earning below ₹5 lakh
c) Senior citizens above 80 years
d) Individuals earning above ₹10 lakh
Answer: b) Individuals earning below ₹5 lakh
7. The penalty for failure to file income tax returns under the Income Tax Act is:
a) ₹1,000
b) ₹10,000
c) ₹5,000
d) Varies depending on the delay
Answer: d) Varies depending on the delay
8. Which of the following is eligible for deductions under Section 80D of the
Income Tax Act?
a) Interest on education loan
b) Medical insurance premiums
c) Donations to charity
d) Depreciation on assets
Answer: b) Medical insurance premiums
9. What is the tax treatment for capital gains under the Income Tax Act, 1961?
a) Fully exempt from tax
b) Taxed as income from salary
c) Taxed based on the period of holding (short-term or long-term)
d) Taxed as income from business
Answer: c) Taxed based on the period of holding (short-term or long-term)
Pollution Control Act in India
The Pollution Control Act in India primarily refers to the Water (Prevention and
Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act,
1981, along with other environmental regulations under the Environment Protection
Act, 1986. These laws aim to control and prevent pollution of water, air, and land,
ensuring the protection of public health and the environment.
Key Features of the Pollution Control Acts
1. Water (Prevention and Control of Pollution) Act, 1974
● Objective: To prevent and control water pollution, maintain the wholesomeness

of water, and provide standards for the discharge of pollutants into water
bodies.
● Pollution Control Boards:
○ Central Pollution Control Board (CPCB): Formed under the Act to
coordinate and enforce water pollution control policies.
○ State Pollution Control Boards (SPCBs): Set up by state governments to
manage water pollution at the regional level.
● Effluent Standards: The Act specifies permissible limits of pollutants for
industries discharging into water bodies.
● Consent to Establish and Operate: Industries must obtain consent from the
concerned SPCB to establish and operate their units.
● Penalties for Violation: The Act provides penalties, including imprisonment
and fines, for polluting water bodies.
2. Air (Prevention and Control of Pollution) Act, 1981
● Objective: To control and reduce air pollution, safeguard human health, and
maintain the air quality by setting permissible limits of pollutants.
● Pollution Control Authorities:
○ Central Pollution Control Board (CPCB): Responsible for formulating

policies and coordinating efforts to control air pollution at the national
level.
○ State Pollution Control Boards (SPCBs): Responsible for air quality
monitoring and pollution control measures at the state level.
● Air Quality Standards: The Act mandates the setting of air quality standards
and specifies the permissible limits for industrial emissions.
● Industrial Compliance: Industries are required to install pollution control
devices to ensure emissions meet the prescribed standards.
● Penalties: Violators of air pollution norms may face fines or imprisonment.
3. Environment Protection Act, 1986
● Objective: To provide a framework for coordinating the activities of the state

and central pollution control boards.
● Environment Protection Rules: The Act empowers the central government to
lay down rules for environmental protection.
● Environmental Clearances: Before setting up industries, an Environmental
Impact Assessment (EIA) is required.
● Penalties: Non-compliance with environmental norms can result in fines,
imprisonment, or both.
Key Provisions Under the Pollution Control Acts
1. Pollution Control Boards:
○ CPCB: National level body responsible for promoting the environment's

protection and controlling pollution.
○ SPCBs: State-level bodies that ensure pollution control measures are
effectively implemented and monitored.
2. Discharge of Pollutants:
○ Water Pollution: Effluents from industries or any other source are

prohibited from being discharged into water bodies unless they meet
specific treatment standards.
○ Air Pollution: Industrial emissions should be treated and meet the
prescribed air quality standards set by the respective authorities.
3. Permits and Consent:
○ Industrial units must obtain prior permission from the relevant

authorities (CPCB/SPCB) before starting operations or setting up a new
unit.
4. Penalties:
○ Offenders may be fined or imprisoned depending on the nature and

severity of the pollution caused. Penalties are imposed for
non-compliance with norms related to air, water, and environmental
pollution.
5. Environmental Impact Assessment (EIA):
○ The Environment Protection Act requires an EIA for projects that have a
significant impact on the environment, ensuring that new projects take
pollution control measures into account.
MCQs on Pollution Control Acts
1. The Water (Prevention and Control of Pollution) Act, 1974 aims to: a) Control
air pollution
b) Control water pollution
c) Control noise pollution
d) Control land pollution
Answer: b) Control water pollution
2. Which of the following is the key body responsible for coordinating efforts to
control water pollution in India?
a) Ministry of Environment and Forests
b) Central Pollution Control Board (CPCB)
c) State Pollution Control Board (SPCB)
d) Indian Environmental Protection Authority
Answer: b) Central Pollution Control Board (CPCB)
3. The Air (Prevention and Control of Pollution) Act, 1981 was enacted to control
and reduce:
a) Water pollution
b) Air pollution
c) Soil pollution
d) Noise pollution
Answer: b) Air pollution
4. Which of the following is responsible for setting permissible air quality
standards under the Air (Prevention and Control of Pollution) Act, 1981?
a) State Government
b) Central Government
c) Central Pollution Control Board (CPCB)
d) Indian Council for Air Quality
Answer: c) Central Pollution Control Board (CPCB)
5. Under the Environment Protection Act, 1986, what is required before setting
up industries?
a) Pollution Control Device
b) Environmental Impact Assessment (EIA)
c) Air Quality Certificate
d) Waste Management Plan
Answer: b) Environmental Impact Assessment (EIA)
6. What is the maximum penalty for violating the provisions of the Water
(Prevention and Control of Pollution) Act, 1974?
a) Fine of ₹10,000
b) Imprisonment for 6 months
c) Fine and imprisonment for up to 7 years
d) No penalties prescribed
Answer: c) Fine and imprisonment for up to 7 years
7. Which of the following is exempted from obtaining a permit under the Air
(Prevention and Control of Pollution) Act, 1981?
a) Small-scale industries
b) Industrial units causing no pollution
c) Agricultural activities
d) Government-owned industrial units
Answer: b) Industrial units causing no pollution
8. Under the Water (Prevention and Control of Pollution) Act, 1974, who must
approve an industrial unit before it starts discharging pollutants?
a) Central Government
b) State Pollution Control Board (SPCB)
c) Ministry of Water Resources
d) Local Municipal Authority
Answer: b) State Pollution Control Board (SPCB)
Indian Boilers Act, 1923
The Indian Boilers Act, 1923 was enacted to ensure the safety of boilers in India,
regulating their construction, installation, operation, and maintenance. The primary
aim of the Act is to prevent accidents related to boilers and pressure vessels.
Key Features of the Indian Boilers Act, 1923
1. Objective:
○ The main objective of the Act is to ensure the safety of life and property
by providing guidelines for the construction, installation, and operation
of boilers, steam engines, and pressure vessels.
2. Definitions:
○ Boiler: A closed vessel used to generate steam or hot water under

pressure. It is used for various purposes such as heating, power
generation, etc.
○ Inspector: A government-appointed individual who is authorized to
inspect boilers, ensuring compliance with the Act's safety standards.
3. Registration of Boilers:
○ Boilers, steam generators, and pressure vessels must be registered with

the Chief Inspector of Boilers before being installed and used.
○ The owner/operator must submit necessary documents and details
about the boiler's specifications.
4. Inspection and Certification:
○ Boilers are required to be periodically inspected by certified inspectors

to ensure their safety.
○ Initial Inspection: After construction, the boiler must be inspected
before it is first operated.
○ Periodic Inspection: Regular inspections during operation to ensure
compliance with safety standards and to detect any potential faults.
5. Repair and Maintenance:
○ The Act mandates that boilers should be properly maintained and

repaired to avoid accidents.
○ Boilers must not be operated if they are in a defective condition or have

not passed the required inspections.
6. Power to Close Defective Boilers:
○ If any boiler is found to be unsafe, inspectors have the authority to stop

its operation immediately until the necessary repairs or improvements
are made.
7. Safety Valves and Other Safety Measures:
○ Boilers must be equipped with safety valves and other mechanisms to

control the pressure and prevent accidents due to overpressure or other
hazards.
8. Penalties for Violation:
○ If the provisions of the Act are violated (e.g., operating a defective

boiler, failing to conduct necessary inspections, or not registering a
boiler), the owner/operator can face fines and imprisonment.
9. State and Central Authorities:
○ The Chief Inspector of Boilers at the state level is responsible for the
administration of the Act in the state.
○ The Ministry of Labour and Employment, Government of India, plays a
role at the central level in formulating policies related to boiler safety.
Provisions Under the Indian Boilers Act
1. Section 7: Registration of Boilers:
○ The owner must apply to the Chief Inspector of Boilers for the
registration of the boiler, providing details such as design, construction,
and location.
2. Section 8: Inspection of Boilers:
○ All boilers must undergo an initial inspection and subsequent periodic

inspections by government-appointed inspectors.
3. Section 9: Certification:
○ After inspection, a boiler is certified as fit for use. Boilers that are
defective or unsafe may not be certified for operation.
4. Section 11: Powers of Inspectors:
○ Inspectors have the authority to stop the operation of unsafe boilers

and recommend the necessary repairs or modifications.
5. Section 18: Penalties:
○ Failure to comply with the provisions of the Act may result in penalties,
including fines and imprisonment.
MCQs on the Indian Boilers Act, 1923
1. The primary objective of the Indian Boilers Act, 1923 is to: a) Control the cost
of boilers
b) Ensure the safety of boilers and pressure vessels
c) Promote boiler manufacturing
Answer: b) Ensure the safety of boilers and pressure vessels
2. Which of the following is required for the operation of a boiler under the
Indian Boilers Act, 1923?
a) Permission from the local municipality
b) Certification by the Chief Inspector of Boilers
c) Approval from the Ministry of Environment
d) Registration with the Boiler Manufacturing Association
Answer: b) Certification by the Chief Inspector of Boilers
3. Who is responsible for the periodic inspection of boilers under the Indian
Boilers Act, 1923?
a) Ministry of Power
b) Chief Inspector of Boilers and authorized inspectors
c) Local authorities
d) Pollution Control Board
Answer: b) Chief Inspector of Boilers and authorized inspectors
4. What is the consequence if a boiler is found defective during an inspection?

a) A fine is imposed on the owner
b) The inspector recommends repairs and the boiler may not be operated
until repaired
c) The boiler is shut down permanently
d) No action is taken if the boiler is in use for more than 5 years
Answer: b) The inspector recommends repairs and the boiler may not be
operated until repaired
5. Which of the following is true regarding the maintenance of boilers under the
Indian Boilers Act, 1923?
a) Boilers must be repaired only once every five years
b) Boilers should be periodically inspected and maintained to prevent
accidents
c) Boilers must be replaced every 10 years
d) No maintenance is required if the boiler is under warranty
Answer: b) Boilers should be periodically inspected and maintained to
prevent accidents
6. What is the penalty for violating the provisions of the Indian Boilers Act, 1923?
a) A fine or imprisonment
b) Suspension of boiler operations for 6 months
c) Closure of the industry

d) No penalty is mentioned in the Act
Answer: a) A fine or imprisonment
7. Under the Indian Boilers Act, 1923, who is authorized to inspect boilers?
a) Government-appointed inspectors
b) Boiler manufacturers
c) Boiler operators
d) Local community representatives
Answer: a) Government-appointed inspectors
8. Which of the following must be installed in a boiler under the Indian Boilers
Act, 1923?
a) Air conditioning system
b) Pressure relief valves and other safety devices
c) Water filters
d) Soundproof materials
Answer: b) Pressure relief valves and other safety devices
9. Boilers must be registered with the Chief Inspector of Boilers before:
a) Manufacturing
b) Installation
c) Operation
d) Maintenance
Answer: c) Operation
Explosives Act, 1884 (Explosive License Act)
The Explosives Act, 1884 is a key legislation in India that governs the manufacture,
possession, transport, sale, use, and import of explosives. The Act aims to ensure
the safety and control over the handling of explosives and materials that can be
used to cause explosions, preventing accidents, and ensuring public safety.
Key Features of the Explosives Act, 1884
1. Objective:
○ The primary objective of the Explosives Act is to regulate the

manufacture, storage, transport, sale, and use of explosives. It is
intended to reduce the risks of accidents and misuse associated with
explosive substances.
2. Definitions:
○ Explosives: Any substance or mixture of substances that, by chemical

reaction, can produce heat, light, sound, gas, or a combination of these,
which can cause a sudden release of energy, including ammunition,
gunpowder, and dynamite.
○ Explosive License: A license issued by the competent authorities for the
manufacture, storage, or sale of explosives.
3. Licensing:
○ Manufacturing License: Any manufacturer of explosives needs to obtain

a license from the government.
○ Storage License: For storing explosives, industries must obtain a storage
license from the relevant authorities.
○ Transport License: Explosives cannot be transported without obtaining
a transport license.
4. Storage and Transportation:
○ The Act prescribes specific standards for the safe storage and
transportation of explosives, including the construction of storage
facilities and the use of secure methods for transportation.
5. Safety Measures:
○ Safety measures must be followed when handling explosives, including

the installation of safety equipment, signage, and proper storage
protocols.
○ The Act mandates the use of proper packaging and labeling for
explosive materials to avoid accidents during transit.
6. Inspection:
○ The Act empowers authorized officers to inspect premises where

explosives are stored or manufactured, ensuring that safety protocols
are followed.
○ Inspections are conducted periodically to verify compliance with safety
standards.
7. Penalties:
○ Violations of the provisions of the Explosives Act can result in penalties,

including fines and imprisonment.
○ Serious violations, such as illegal possession or unlicensed
manufacturing, can result in stricter penalties.
8. Central and State Authorities:
○ The Ministry of Commerce and Industry is responsible for implementing

the provisions of the Explosives Act.
○ The Petroleum and Explosives Safety Organization (PESO) is the central
authority that monitors and ensures compliance with the Explosives
Act.
9. Amendments:
○ The Act has been amended over time to incorporate new provisions
related to modern explosives, materials, and technologies.
Key Provisions Under the Explosives Act
1. Section 3: Prohibition of Certain Explosives:
○ Prohibits the possession, manufacture, or use of certain explosives

without the appropriate licenses.
2. Section 4: License for Manufacture, Possession, and Sale:
○ Requires individuals or companies to obtain licenses for the

manufacture, possession, or sale of explosives.
3. Section 5: Conditions for Granting Licenses:
○ Establishes the conditions under which licenses for explosives can be

granted, including the type of premises, safety measures, and
qualifications of applicants.
4. Section 7: Transport of Explosives:
○ Regulates the transportation of explosives and requires a license for

such activities.
5. Section 9: Inspection:
○ Provides the authorities the power to inspect premises and

transportation vehicles to ensure compliance with safety standards.
6. Section 12: Penalties for Violation:
○ Provides penalties for the manufacture, sale, possession, or transport of

explosives without a proper license or in violation of safety rules.
MCQs on Explosives Act, 1884
1. The primary purpose of the Explosives Act, 1884 is to: a) Promote the sale of
explosives
b) Regulate the use of explosives to ensure public safety

c) Manufacture explosives
d) Encourage the transport of explosives
Answer: b) Regulate the use of explosives to ensure public safety
2. Who is responsible for granting licenses for the manufacture of explosives
under the Explosives Act, 1884?
a) Ministry of Environment
b) Petroleum and Explosives Safety Organization (PESO)
c) Ministry of Defense
d) Local Municipality
Answer: b) Petroleum and Explosives Safety Organization (PESO)
3. Which of the following is required for the legal possession or transport of
explosives under the Explosives Act, 1884?
a) Written consent from local authorities
b) A license issued by the authorities
c) Only an identification card
Answer: b) A license issued by the authorities
4. What is the role of the Petroleum and Explosives Safety Organization (PESO)
under the Explosives Act, 1884?
a) Issue permits for explosives
b) Enforce safety standards for explosives
c) Monitor compliance with regulations
d) All of the above
Answer: d) All of the above
5. What happens if a person is found guilty of manufacturing explosives without

a license under the Explosives Act, 1884?
a) The person is allowed to continue manufacturing explosives
b) The person may face fines or imprisonment

c) The person is issued a warning
d) No penalty is imposed
Answer: b) The person may face fines or imprisonment
6. Which of the following is required for the safe storage of explosives under the
Explosives Act, 1884?
a) Any open space
b) Properly designed and secure storage facilities
c) Storage in wooden containers
d) No safety measures are required
Answer: b) Properly designed and secure storage facilities
7. The Explosives Act, 1884 applies to which of the following?

a) Only the transportation of explosives
b) Only the manufacture of explosives
c) The manufacture, possession, transport, and sale of explosives
d) Only explosives used for military purposes
Answer: c) The manufacture, possession, transport, and sale of explosives
8. Under the Explosives Act, 1884, the government can inspect premises where
explosives are stored to: a) Ensure that the owner has a proper storage
facility
b) Confirm the type of explosives stored
c) Ensure compliance with safety regulations
d) Both a and c
Answer: d) Both a and c
9. Which section of the Explosives Act, 1884 regulates the transport of
explosives?
a) Section 3
b) Section 5
c) Section 7
d) Section 9
Answer: c) Section 7
10.Which of the following is NOT covered under the Explosives Act, 1884?
a) Explosives used in industrial applications
b) Explosives used in mining operations
c) Explosives used for fireworks
d) Explosives used in kitchen cooking
Answer: d) Explosives used in kitchen cooking
Drugs and Cosmetics Act, 1940 (Drugs and Cosmetics

Manufacturing License)
The Drugs and Cosmetics Act, 1940 is a key piece of legislation in India that
regulates the manufacturing, sale, distribution, and import of drugs and cosmetics.
It ensures the safety, efficacy, and quality of drugs and cosmetics sold in India.
Under this Act, obtaining a Manufacturing License is essential for companies
involved in the production of drugs and cosmetics.
Key Features of the Drugs and Cosmetics Act, 1940
1. Objective:
○ The Act's main objective is to ensure that drugs and cosmetics sold in
India are safe, effective, and of the required quality. It regulates the
manufacturing, sale, and import of drugs and cosmetics and provides a
framework for enforcing these regulations.
2. Manufacturing License:
○ To manufacture drugs or cosmetics in India, companies need to obtain a

Manufacturing License from the Drugs Controller General of India (DCGI).
○ The license is issued only after the company complies with certain
standards and requirements set by the Central Drugs Standard Control
Organization (CDSCO).
3. Conditions for Granting a Manufacturing License:
○ The manufacturing facility must meet the standards for Good

Manufacturing Practices (GMP) set by the regulatory authorities.
○ The premises where drugs or cosmetics are manufactured should be
approved and inspected by authorized personnel.
○ A qualified person with knowledge of the manufacturing process must
oversee the production process.
○ The application for a license should include details such as the list of
products to be manufactured, the equipment used, and the safety
standards.
4. Requirements for Good Manufacturing Practices (GMP):
○ Proper cleanliness and hygiene must be maintained in the

manufacturing premises.
○ Equipment and machinery used in the manufacturing process must be
suitable for the type of drug or cosmetic being produced.
○ Adequate documentation and record-keeping for manufacturing
processes, raw materials, and finished products must be maintained.
5. Regulatory Authorities:
○ The Drugs Controller General of India (DCGI) and the Central Drugs
Standard Control Organization (CDSCO) are responsible for regulating
drug and cosmetic manufacturing, ensuring compliance with safety and
quality standards.
6. Inspection:
○ Authorized officials inspect manufacturing units to ensure compliance

with the Drugs and Cosmetics Act and GMP standards. This inspection
ensures that drugs and cosmetics are produced under the required
conditions to maintain quality.
○ If any discrepancies are found during inspections, the manufacturing
license can be suspended or revoked.
7. Penalties for Violations:
○ Violation of the provisions of the Drugs and Cosmetics Act can lead to
penalties such as fines, imprisonment, or both.
○ Selling, manufacturing, or distributing substandard drugs or cosmetics
without a valid license can result in severe legal consequences.
8. Renewal of Manufacturing License:
○ A manufacturing license must be renewed periodically. Companies must

ensure that their facilities continue to comply with GMP standards for
the license to be renewed.
Key Provisions Under the Drugs and Cosmetics Act, 1940
1. Section 18: Manufacturing, Sale, or Distribution of Drugs and Cosmetics:
○ No person shall manufacture, sell, or distribute drugs and cosmetics

without obtaining the necessary license.
2. Section 24: Inspection and Compliance:
○ Regulatory authorities have the power to inspect premises where drugs

and cosmetics are manufactured, stored, or sold to ensure compliance
with the provisions of the Act.
3. Section 27: Penalties for Non-Compliance:
○ Penalties include fines, suspension or revocation of the manufacturing

license, and imprisonment for violating the provisions of the Act.
4. Section 33: Power to Issue Rules for Licensing:
○ The central government has the power to issue rules for the licensing of
manufacturers and distributors of drugs and cosmetics, specifying
conditions and requirements for obtaining and renewing licenses.
MCQs on Drugs and Cosmetics Manufacturing License
1. Which of the following is required to manufacture drugs or cosmetics in India?

a) Approval from the Ministry of Health
b) Manufacturing License from the Drugs Controller General of India (DCGI)
c) Registration with local authorities
Answer: b) Manufacturing License from the Drugs Controller General of India
(DCGI)
2. The Good Manufacturing Practices (GMP) standards are meant to ensure that:
a) Drugs and cosmetics are manufactured without any raw materials
b) Drugs and cosmetics are manufactured under safe, hygienic, and quality
conditions
c) Drugs are manufactured without any regulatory oversight
d) Drugs are produced in any environment without any standard protocols
Answer: b) Drugs and cosmetics are manufactured under safe, hygienic, and
quality conditions
3. Under the Drugs and Cosmetics Act, who inspects the manufacturing units to
ensure compliance with the Act’s provisions? a) The local municipal authority
b) Authorized government inspectors
c) The Ministry of Health
d) The central government
Answer: b) Authorized government inspectors
4. Which of the following must be included in the application for a

manufacturing license for drugs or cosmetics? a) The price of the products
being manufactured
b) The qualifications of the personnel overseeing production
c) Details of the manufacturing process
d) All of the above
5. What happens if a manufacturing unit is found violating the provisions of the
Drugs and Cosmetics Act, 1940? a) The company will receive a warning
b) The manufacturing license can be suspended or revoked
c) The company will automatically be allowed to continue production
d) The government will bear the cost of rectification
Answer: b) The manufacturing license can be suspended or revoked
6. The Drugs and Cosmetics Act, 1940 mandates that manufacturers of drugs or
cosmetics must comply with: a) The local laws only
b) The international standards only
c) The Good Manufacturing Practices (GMP) guidelines
Answer: c) The Good Manufacturing Practices (GMP) guidelines
7. Which of the following is a penalty for manufacturing drugs or cosmetics

without a valid license under the Drugs and Cosmetics Act, 1940? a) A fine
b) Imprisonment
c) Suspension of business operations
d) All of the above
8. Which government authority is responsible for regulating the manufacturing

of drugs and cosmetics in India? a) Ministry of Commerce and Industry
b) Drugs Controller General of India (DCGI)
c) State Health Departments
d) Central Bureau of Investigation (CBI)
Answer: b) Drugs Controller General of India (DCGI)
9. What is the main purpose of obtaining a manufacturing license under the
Drugs and Cosmetics Act, 1940? a) To sell the products directly to consumers
b) To ensure that the drugs and cosmetics meet safety, quality, and efficacy
standards
c) To avoid paying taxes on the products manufactured
d) To avoid inspections from authorities
Answer: b) To ensure that the drugs and cosmetics meet safety, quality, and
efficacy standards
10.What happens if the manufacturing unit does not meet the Good
Manufacturing Practices (GMP) standards? a) The company will be given a
warning
b) The manufacturing license may be revoked or not renewed
c) The company will be fined, but the license remains intact
d) The company can continue operations without any penalty
Answer: b) The manufacturing license may be revoked or not renewed
Khadi and Village Industries Commission (KVIC) Act, 1956
The Khadi and Village Industries Commission (KVIC) Act, 1956 is a key piece of
legislation in India that established the Khadi and Village Industries Commission
(KVIC) to promote the production and marketing of Khadi (handspun and
handwoven cloth) and village industries. The KVIC Act aims to provide employment,
promote rural development, and support traditional crafts in India, particularly in

rural areas.
Key Features of the KVIC Act, 1956
1. Objective:
○ The main objective of the KVIC Act, 1956 is to promote and organize the
production and marketing of Khadi and village industries in the rural
areas of India. It is designed to enhance rural employment, generate
income, and preserve traditional industries.
2. Establishment of the Khadi and Village Industries Commission:
○ The Khadi and Village Industries Commission (KVIC) was established

under this Act to promote the growth and development of Khadi and
village industries. The commission has the authority to:
■ Plan and execute the programs for the development of Khadi and
village industries.
■ Provide financial assistance to the producers of Khadi and village
industries.
■ Promote research and development in the field of rural industries.
3. Promotion of Khadi:
○ The Act specifically focuses on the development of Khadi, which is

considered a symbol of self-reliance and rural employment in India. The
KVIC is tasked with the promotion of Khadi production, marketing, and
distribution.
4. Village Industries:
○ The Act also focuses on promoting village industries in rural areas,

including industries such as pottery, woodwork, handlooms, leather
goods, coir, and agro-based industries.
5. Financial Assistance:
○ The KVIC is empowered to provide financial assistance to people

involved in Khadi production or village industries. This may include
grants, loans, or subsidies to support the development and growth of
these industries.
6. Research and Development:
○ The KVIC is responsible for promoting research and development in

Khadi and village industries. This includes improving production
techniques, introducing new methods, and enhancing the quality of
products.
7. Training and Education:
○ The Act also emphasizes providing training and educational programs

for individuals involved in Khadi and village industries to improve their
skills and productivity.
8. Marketing and Promotion:
○ The KVIC is tasked with ensuring the effective marketing and promotion
of Khadi and village industry products. It can establish outlets and
markets, as well as develop sales strategies to increase the demand for
Khadi and village-made goods.
9. Board of Members:
○ The KVIC is governed by a Board of Members appointed by the

Government of India. The board includes individuals with expertise in
areas related to the promotion of Khadi and village industries, and the
members are responsible for making decisions regarding policies,
financing, and operations.
10.Advisory Role:
○ The KVIC can also provide advice and guidance to state governments
and other organizations involved in the promotion of rural industries.
Key Provisions Under the KVIC Act
1. Section 3: Establishment of the Commission:
○ The Commission is established with the authority to promote and

develop Khadi and village industries throughout the country.
2. Section 4: Functions of the Commission:
○ The KVIC is responsible for planning, promoting, financing, and

supervising the development of Khadi and village industries.
3. Section 5: Powers of the Commission:
○ The Commission has the power to make rules, provide grants and loans,
and take measures to promote and develop Khadi and village industries.
4. Section 6: Financial Assistance:
○ The Commission has the authority to provide financial assistance to

eligible individuals, groups, and organizations involved in the production
of Khadi or village industries.
5. Section 12: Audit and Reporting:
○ The KVIC is required to submit annual reports and accounts to the

central government for auditing. This ensures transparency and
accountability in the use of public funds.
MCQs on KVIC Act, 1956
1. The primary objective of the Khadi and Village Industries Commission (KVIC)
Act, 1956 is to: a) Promote industrialization in urban areas
b) Regulate the manufacturing of all types of goods
c) Promote Khadi and village industries in rural areas
d) Establish a monopoly on village industry products
Answer: c) Promote Khadi and village industries in rural areas
2. Which of the following is a key responsibility of the Khadi and Village
Industries Commission (KVIC)?
a) Regulate the international trade of Khadi
b) Provide financial assistance to the promotion of village industries
c) Manufacture Khadi products itself
Answer: b) Provide financial assistance to the promotion of village industries
3. The KVIC Act was enacted in which year?

a) 1947
b) 1950
c) 1956
d) 1960
Answer: c) 1956
4. Who appoints the members of the Khadi and Village Industries Commission
(KVIC)?
a) The President of India
b) The Prime Minister of India
c) The Government of India
d) The Ministry of Rural Development
Answer: c) The Government of India
5. The Khadi and Village Industries Commission (KVIC) is responsible for
promoting which of the following?
a) Only Khadi production

b) Only village industries related to agriculture
c) Both Khadi production and village industries
Answer: c) Both Khadi production and village industries
6. What is the role of the Khadi and Village Industries Commission (KVIC) in
promoting research and development?
a) It funds research only in Khadi production techniques
b) It conducts research and development to improve production processes
and quality
c) It does not have any role in research and development
d) It hires researchers to conduct studies on village industry market trends
Answer: b) It conducts research and development to improve production
processes and quality
7. Which of the following is NOT a village industry promoted by the KVIC under
the Act?
a) Pottery
b) Coir industry
c) Leather goods
d) Automotive manufacturing
Answer: d) Automotive manufacturing
8. What kind of financial assistance can the KVIC provide to individuals or groups
involved in village industries?
a) Only grants
b) Only loans
c) Grants, loans, or subsidies
d) Only tax exemptions
Answer: c) Grants, loans, or subsidies
9. The Khadi and Village Industries Commission (KVIC) Act allows the commission
to: a) Make rules for regulating the sale of Khadi
b) Conduct market research only
c) Provide loans for international exports
d) Regulate global trade of village industry products
Answer: a) Make rules for regulating the sale of Khadi
10.The KVIC is responsible for ensuring which of the following?

a) Promoting urban industries
b) Generating rural employment through the promotion of Khadi and village
industries
c) Setting up manufacturing plants for large-scale production
Answer: b) Generating rural employment through the promotion of Khadi and
village industries
Industrial Facilitation Act
The Industrial Facilitation Act is an important legislation aimed at creating a

conducive environment for the smooth establishment, growth, and operation of
industries in a country. The Act seeks to streamline regulatory processes, reduce
bureaucratic hurdles, and provide support to industrial units through various
measures such as financial assistance, infrastructure development, and simplifying
procedures for setting up industries.
The specific provisions and scope of the Industrial Facilitation Act may vary from
one jurisdiction to another. However, in a general context, it focuses on ensuring
that industrial units face minimal obstacles while complying with the necessary
regulations and standards.
Key Features of the Industrial Facilitation Act
1. Objective:
○ The Industrial Facilitation Act aims to promote industrial growth by

providing a streamlined regulatory framework, easing the process of
obtaining licenses and approvals, and addressing challenges faced by
industries.
○ It also focuses on reducing the time and cost associated with setting up
and operating industries.
2. Simplification of Regulatory Procedures:
○ The Act may provide a mechanism to simplify various industrial

regulatory procedures such as obtaining environmental clearances,
licenses, and approvals.
○ It seeks to reduce the red tape and bureaucratic delays associated with
starting and running industrial units.
3. Financial Assistance:
○ Under this Act, financial support may be provided to industries in the

form of loans, subsidies, or grants. These financial incentives are aimed
at encouraging investment in the industrial sector and helping small and
medium industries grow.
○ It may also involve providing low-interest loans to entrepreneurs setting
up new industries, as well as offering incentives for the establishment
of industries in backward or underserved regions.
4. Infrastructure Development:
○ The Act may focus on the development of industrial parks, clusters, and
zones that provide essential infrastructure such as power supply, water,
transportation, and communication facilities to support industrial
growth.
○ The establishment of industrial parks and zones helps reduce the cost
of setting up an industry and improves the ease of doing business.
5. Promotion of Investment:
○ The Act may aim to attract both domestic and foreign investments in
industrial sectors by offering incentives such as tax exemptions,
rebates, and attractive terms for investors.
○ It may also include measures to protect investor interests and ensure a
stable and predictable regulatory environment.
6. Regulatory and Compliance Support:
○ It may provide a framework to assist industries in complying with

environmental, labor, and safety regulations by offering consultation
services, guidance, and support.
○ The Act may include provisions for facilitating compliance audits and
ensuring industries adhere to national standards.
7. Institutional Mechanisms:
○ The Act may establish specialized institutions or agencies tasked with

facilitating industrial development, ensuring compliance with
regulations, and assisting with problem-solving for industrial units.
○ It may also include a dispute resolution mechanism to resolve conflicts
between industries and regulatory authorities.
8. Ease of Doing Business:
○ A central feature of the Industrial Facilitation Act is the emphasis on

making it easier for industries to operate in the country by improving
the overall business climate. This includes measures to reduce the cost
of doing business, shorten approval times, and reduce the complexity of
the regulatory environment.
9. Promoting Innovation and Research:
○ The Act may include provisions for encouraging innovation in industrial

processes, the adoption of new technologies, and investment in
research and development (R&D).
○ It could also involve funding or support for industrial R&D activities that
enhance productivity and competitiveness.
10.Sustainability and Green Initiatives:
● The Act may encourage industries to adopt environmentally sustainable

practices, such as energy-efficient technologies, waste management
solutions, and the use of renewable resources.
● It may offer incentives for industries that implement green technologies or
adopt sustainable business practices.
MCQs on Industrial Facilitation Act
1. The primary objective of the Industrial Facilitation Act is to: a) Promote
industrial growth through regulatory ease
b) Increase government control over industries
c) Regulate industrial exports
d) Provide labor welfare benefits
Answer: a) Promote industrial growth through regulatory ease
2. Which of the following does the Industrial Facilitation Act aim to simplify? a)
Procedures for obtaining industrial licenses and approvals
b) The import-export regulations for industrial goods
c) Education and healthcare regulations for industries
Answer: a) Procedures for obtaining industrial licenses and approvals
3. Under the Industrial Facilitation Act, what kind of financial support can
industries receive? a) Loans with high interest rates
b) Grants, subsidies, and low-interest loans
c) Only tax exemptions

Answer: b) Grants, subsidies, and low-interest loans
4. Which of the following is a key feature of the Industrial Facilitation Act? a) The
promotion of environmental protection laws
b) The development of industrial parks with essential infrastructure
c) The creation of industrial unions
d) The regulation of international industrial trade
Answer: b) The development of industrial parks with essential infrastructure
5. The Industrial Facilitation Act is designed to: a) Create new government-run
industries
b) Encourage investments by providing incentives and support
c) Prevent the establishment of private industries
d) Only focus on large industries
Answer: b) Encourage investments by providing incentives and support
6. The Industrial Facilitation Act is meant to promote which of the following? a)
International trade of industrial goods
b) Investment in small and medium-sized industries
c) State-owned industrial corporations only
d) The expansion of government-owned enterprises
Answer: b) Investment in small and medium-sized industries
7. Which of the following is NOT a provision that the Industrial Facilitation Act
may include? a) Simplification of regulatory procedures for setting up
industries
b) Tax exemptions for industries that pollute the environment
c) Infrastructure development in industrial zones
d) Financial incentives for industrial research and innovation
Answer: b) Tax exemptions for industries that pollute the environment
8. The Industrial Facilitation Act may offer which of the following to encourage
industrial growth? a) Increased bureaucratic checks
b) Complex licensing procedures
c) Financial assistance and incentives for innovation
d) Restrictions on foreign investments
Answer: c) Financial assistance and incentives for innovation
9. Which of the following best describes the role of the Industrial Facilitation Act
in promoting ease of doing business? a) It reduces bureaucratic hurdles and
provides a supportive environment for industries
b) It enforces stricter regulations on industries
c) It restricts the setting up of new industries
d) It only focuses on large industries
Answer: a) It reduces bureaucratic hurdles and provides a supportive
environment for industries
10.Which sector is the Industrial Facilitation Act primarily designed to support?

a) Agriculture
b) Industrial and manufacturing sectors
c) Service sector
d) Retail and wholesale trade
Answer: b) Industrial and manufacturing sectors
Industrial Disputes Resolution (IDR) Act
The Industrial Disputes Resolution (IDR) Act is a legal framework designed to

promote industrial harmony, address conflicts between employers and employees,
and ensure the smooth functioning of industries. The primary objective of this Act
is to provide mechanisms for the resolution of industrial disputes, which may arise
due to issues like working conditions, wages, strikes, layoffs, or other
employment-related matters.
While the term IDR Act may not directly refer to a single legislation in some
jurisdictions, it is often associated with the Industrial Disputes Act, 1947, in India,
which governs industrial disputes and provides a structured approach for their
resolution.
Key Features of the Industrial Disputes Resolution Act (India)
1. Objective:
○ The primary objective of the Industrial Disputes Act (IDA), 1947, is to

promote industrial peace and harmony by providing mechanisms for the
settlement of disputes between employers and employees. It aims to
prevent strikes and lockouts, improve employer-employee relations, and
regulate the process for the closure of industries.
2. Dispute Resolution Mechanism:
○ The Act provides a framework for the conciliation, arbitration, and

adjudication of industrial disputes. The three main methods for
resolving disputes under the Act are:
■ Conciliation: Involves a neutral third party (Conciliation Officer)
trying to mediate between the parties to find a mutually
agreeable solution.
■ Arbitration: A method in which an arbitrator is appointed to give a
binding decision on the dispute.
■ Adjudication: The dispute is referred to a Labour Court, Industrial
Tribunal, or National Tribunal, which passes a binding judgment.
3. Industrial Disputes:
○ The Act covers a wide range of industrial disputes, including disputes

related to wages, bonuses, working conditions, leave, and employee
welfare. It also addresses issues such as industrial actions (strikes and
lockouts) and unfair labor practices.
4. Strike and Lockout Regulations:
○ The Act specifies conditions under which strikes (by workers) and
lockouts (by employers) are legal. For instance, before going on strike,
workers must provide a notice to the employer. Similarly, employers
must also follow procedures before declaring a lockout.
5. Layoffs, Retrenchment, and Termination:
○ The IDR Act provides regulations on layoffs, retrenchment, and

termination of employees. It requires employers to follow proper
procedures and provide compensation to workers affected by
retrenchment or layoffs.
6. Establishment of Industrial Tribunals and Labour Courts:
○ The Act establishes Labour Courts and Industrial Tribunals to resolve

disputes that cannot be settled through conciliation or arbitration.
These bodies play a crucial role in ensuring that disputes are settled in a
fair and timely manner.
7. National Industrial Tribunal:
○ In cases where disputes have a nationwide impact or are of significant

importance, the National Industrial Tribunal is constituted to resolve the
issue.
8. Wages and Compensation:
○ The IDR Act ensures that workers receive their lawful wages and
compensation in case of disputes over terms and conditions of
employment. This includes severance packages, compensation for

termination, and disputes regarding pay hikes and allowances.
9. Employer-Employee Relations:
○ The Act also emphasizes improving employer-employee relationships

through various provisions like recognition of trade unions, collective
bargaining, and maintaining harmonious work environments.
10.Settlement of Unfair Labor Practices:
○ The IDR Act deals with unfair labor practices by employers and
employees. It prohibits employers from adopting practices that
undermine labor rights, such as wrongful termination, and ensures that
employees cannot engage in illegal strikes or other disruptive activities.
MCQs on Industrial Disputes Resolution (IDR) Act
1. The primary objective of the Industrial Disputes Act is to: a) Promote strikes
and lockouts
b) Provide mechanisms for the resolution of industrial disputes
c) Regulate international labor laws
d) Increase government control over industries
Answer: b) Provide mechanisms for the resolution of industrial disputes
2. Which of the following is NOT a method for resolving industrial disputes under
the Industrial Disputes Act? a) Conciliation
b) Arbitration
c) Adjudication
d) Bankruptcy proceedings
Answer: d) Bankruptcy proceedings
3. Which authority is responsible for the conciliation of industrial disputes under
the Industrial Disputes Act? a) Labour Court
b) Conciliation Officer
c) Industrial Tribunal
d) National Industrial Tribunal
Answer: b) Conciliation Officer
4. The Industrial Disputes Act governs disputes related to: a) Only employee
wages
b) Working conditions and employee welfare
c) Strikes and lockouts
d) All of the above
5. Before going on strike, workers must give a notice to the employer according
to which Act? a) Industrial Relations Act
b) Industrial Disputes Act, 1947
c) Employment Protection Act
d) Trade Union Act
Answer: b) Industrial Disputes Act, 1947
6. Under the Industrial Disputes Act, who is responsible for resolving disputes
that cannot be settled through conciliation or arbitration? a) Labour Court
b) National Tribunal
c) Industrial Tribunal
d) All of the above
7. In the context of industrial disputes, what does the term 'retrenchment' refer
to? a) Termination due to a personal issue
b) The reduction of the workforce for operational reasons
c) A dispute over wages
d) An unfair labor practice
Answer: b) The reduction of the workforce for operational reasons
8. Which of the following is a condition under which a strike can be considered
legal under the Industrial Disputes Act? a) Workers give prior notice to the
employer
b) Workers strike without informing the employer
c) Employers lockout workers first
d) Workers go on strike without attempting conciliation
Answer: a) Workers give prior notice to the employer
9. The National Industrial Tribunal is constituted to resolve disputes that: a) Only
concern one particular industry
b) Affect the labor union
c) Have national importance or widespread impact
d) Concern small enterprises only
Answer: c) Have national importance or widespread impact
10.Which of the following is a role of the Labour Court under the Industrial
Disputes Act? a) To assist with financial disputes between companies
b) To resolve disputes related to working conditions and wages
c) To manage government contracts
d) To oversee employer profits
Answer: b) To resolve disputes related to working conditions and wages
Conclusion
The Industrial Disputes Act (IDR Act) is a critical framework designed to maintain
industrial peace and promote healthy employer-employee relationships by
providing structured methods for resolving disputes. It addresses a wide range of
industrial conflicts, including issues related to strikes, retrenchment, wages, and
working conditions. The Act facilitates the process of resolving disputes through
conciliation, arbitration, and adjudication, ensuring that industrial operations
continue smoothly and fairly for all parties involved.
Micro, Small, and Medium Enterprises Development (MSMED) Act,

2006
The MSMED Act, 2006 was enacted by the Government of India to provide a legal
framework for the development and promotion of Micro, Small, and Medium
Enterprises (MSMEs) in the country. The Act aims to enhance the competitiveness
and sustainability of MSMEs by providing them with better access to resources,
credit, and technology. It also establishes a framework for the regulation of
MSME-related matters, including their classification, facilitation of credit, and
dispute resolution.
Key Features of the MSMED Act, 2006
1. Objective:
○ The MSMED Act aims to promote the growth of Micro, Small, and
Medium Enterprises (MSMEs) in India by providing them with financial,
technical, and regulatory support. It seeks to enhance the overall
competitiveness of MSMEs by facilitating ease of doing business and
ensuring timely payments from buyers.
2. Classification of MSMEs:
○ The Act classifies MSMEs into two categories:

■ Manufacturing Enterprises: These are enterprises engaged in the
production or manufacturing of goods.
■ Service Enterprises: These are enterprises engaged in providing
services.
○ Both categories are further classified based on their investment in plant
and machinery (for manufacturing enterprises) or equipment (for
service enterprises).
3. Classification of MSMEs under the Act:
○ Micro Enterprises:
■ Investment in plant and machinery/equipment: ≤ Rs. 1 crore
■ Annual turnover: ≤ Rs. 5 crore
○ Small Enterprises:
■ Investment in plant and machinery/equipment: > Rs. 1 crore and ≤
Rs. 10 crore
■ Annual turnover: > Rs. 5 crore and ≤ Rs. 50 crore
○ Medium Enterprises:
■ Investment in plant and machinery/equipment: > Rs. 10 crore and
≤ Rs. 50 crore
■ Annual turnover: > Rs. 50 crore and ≤ Rs. 250 crore
4. Facilitation of Credit:
○ The Act provides measures to ensure that MSMEs have better access to
credit facilities from financial institutions and banks. It mandates a
simplified process for obtaining loans and guarantees support for
businesses.
5. Advisory and Counseling Services:
○ The National Board for Micro, Small, and Medium Enterprises is

established under the Act to advise the government on policy matters
concerning MSMEs. It also promotes various programs aimed at skill
development and entrepreneurship.
6. Delays in Payments and Credit Recovery:
○ The MSMED Act provides mechanisms for timely payments from buyers
to MSMEs. It includes provisions to ensure that MSMEs are paid within
45 days of supply, and if payments are delayed, the buyer must pay
interest on the outstanding amount.
○ The Act includes provisions for the recovery of credit from buyers, thus
protecting MSMEs from delayed or non-payment situations.
7. National Board for MSME:
○ The Act establishes a National Board for Micro, Small, and Medium
Enterprises, which is responsible for formulating policies, advising the
government, and implementing programs aimed at the development
and promotion of MSMEs.
8. State Governments and MSME Facilitation:
○ The Act allows state governments to establish MSME facilitation

councils to resolve issues related to delayed payments and provide
assistance to MSMEs at the local level.
9. Special Provisions for Sick MSMEs:
○ The Act provides provisions for identifying and dealing with sick MSMEs.
It facilitates the rehabilitation of such units through a structured
process, including financial assistance or restructuring of debts.
10.Women and SC/ST Entrepreneurs:
○ The MSMED Act also includes provisions to promote the participation of

women and Scheduled Castes (SC)/Scheduled Tribes (ST) in MSME
ventures. It offers various incentives and financial support for
entrepreneurs from these communities.
11.Development of Technology:
○ The Act promotes the adoption of new technologies by MSMEs through

various schemes and financial incentives. This helps MSMEs to upgrade
their technology and improve product quality and competitiveness.
MCQs on MSMED Act, 2006
1. The MSMED Act, 2006 primarily aims to: a) Promote large-scale industries
b) Facilitate the growth of Micro, Small, and Medium Enterprises
c) Regulate foreign trade
d) Encourage large enterprises only
Answer: b) Facilitate the growth of Micro, Small, and Medium Enterprises
2. Which of the following is NOT a classification under the MSMED Act, 2006? a)
Micro Enterprises
b) Small Enterprises
c) Large Enterprises
d) Medium Enterprises
Answer: c) Large Enterprises
3. What is the maximum annual turnover allowed for a Micro Enterprise under
the MSMED Act? a) Rs. 1 crore
b) Rs. 5 crore
c) Rs. 10 crore
d) Rs. 50 crore
Answer: b) Rs. 5 crore
4. What is the threshold investment in plant and machinery/equipment for a

Small Enterprise under the MSMED Act? a) ≤ Rs. 1 crore
b) ≤ Rs. 5 crore
c) > Rs. 1 crore and ≤ Rs. 10 crore
d) > Rs. 10 crore
Answer: c) > Rs. 1 crore and ≤ Rs. 10 crore
5. Which of the following does the MSMED Act provide for the MSMEs? a) Tax
exemption only
b) Facilitation of credit, timely payments, and advisory services
c) Strict regulations on employee wages
d) Control over international trade agreements
Answer: b) Facilitation of credit, timely payments, and advisory services
6. How many days does the MSMED Act mandate for timely payment to be made
by buyers to MSMEs? a) 15 days
b) 30 days
c) 45 days
d) 60 days
Answer: c) 45 days
7. Which of the following is a provision under the MSMED Act for the
rehabilitation of sick MSMEs? a) Free grants
b) Financial assistance and debt restructuring
c) Exemption from taxes
d) Complete closure of sick units
Answer: b) Financial assistance and debt restructuring
8. Which board is responsible for advising the government on MSME-related

policies under the MSMED Act? a) Industrial Development Board
b) National Board for Micro, Small, and Medium Enterprises
c) Ministry of Commerce and Industry
d) Small Enterprises Development Board
Answer: b) National Board for Micro, Small, and Medium Enterprises
9. The MSMED Act provides provisions to promote the participation of which of
the following entrepreneurs? a) Women entrepreneurs only
b) SC/ST entrepreneurs only
c) Both women and SC/ST entrepreneurs
d) Only male entrepreneurs
Answer: c) Both women and SC/ST entrepreneurs
10.The MSMED Act encourages MSMEs to adopt: a) International standards

b) New technologies and improve competitiveness
c) Government monopolies
d) Traditional business models
Answer: b) New technologies and improve competitiveness
Conclusion
The MSMED Act, 2006 plays a pivotal role in the development of Micro, Small, and
Medium Enterprises (MSMEs) in India by providing a conducive legal framework that
supports growth, access to credit, timely payments, and technological
advancements. The Act ensures the long-term sustainability of MSMEs through
financial assistance, advisory services, and a focus on their integration into the
national economy. It also includes provisions for the rehabilitation of sick
enterprises, ensuring that MSMEs can recover from financial distress.
Industrial Policy in India
India's Industrial Policy has undergone several revisions and reforms since
independence, aiming to promote industrialization, economic growth, and
self-reliance. The government has continually adapted industrial policies to align
with changing national priorities, economic conditions, and global trends.
The key aim of the Industrial Policy is to ensure balanced and inclusive industrial
development, which promotes sustainable growth and employment generation. The
policy also emphasizes the development of Micro, Small, and Medium Enterprises
(MSMEs), fostering entrepreneurship, and improving global competitiveness.
Key Features of Industrial Policy in India
1. Industrial Policy of 1948
● The first industrial policy announced in 1948 aimed at laying the foundation
for the establishment of heavy industries and the development of key sectors
like steel, mining, and heavy machinery.
● The policy emphasized public sector investment and control over key
industries, setting the stage for import substitution and self-reliance.
2. Industrial Policy Resolution of 1956
● This policy was a milestone in India's industrialization journey. It classified

industries into three categories:
1. Schedule A: Industries reserved for the public sector (e.g., defense,
heavy industries).
2. Schedule B: Industries in which the private sector could participate but
under state guidance.
3. Schedule C: Industries that could be left to the private sector without
restrictions.
● It also emphasized state control over large-scale industries, which were
viewed as essential for economic growth.
● This policy marked a shift towards encouraging private participation and

reducing bureaucratic controls on industries.
● The policy introduced several liberalization measures and focused on
improving industrial efficiency.
● The policy focused on improving the capital goods sector, enhancing

technological capabilities, and supporting export promotion.
● The focus was on encouraging foreign direct investment (FDI), technology
transfer, and greater private sector participation.
● The 1991 Economic Reforms led by Prime Minister P.V. Narasimha Rao and
Finance Minister Dr. Manmohan Singh brought about significant liberalization.
● Key features of the 1991 policy included:

○ Deregulation of industries, reducing licensing requirements.
○ Encouragement of foreign investment and private sector participation.
○ Focus on enhancing global competitiveness and integration with the
world economy.
○ Introduction of the automatic route for FDI and trade liberalization.
6. National Manufacturing Policy, 2011
● This policy aimed to increase the share of manufacturing in India's GDP to 25%
by 2025.
● It emphasized the development of industrial hubs, setting up National
Investment and Manufacturing Zones (NIMZs), and creating a conducive
environment for the growth of manufacturing industries.
● Focused on skills development, innovation, and sustainable growth.
7. Make in India Initiative (2014)
● Launched by Prime Minister Narendra Modi, the Make in India initiative aimed
to turn India into a global manufacturing hub.
● It focused on promoting FDI, encouraging entrepreneurship, and improving
ease of doing business.
● The initiative emphasized manufacturing in sectors like electronics,
automobiles, and defense, alongside creating jobs for the youth.
8. Atmanirbhar Bharat Abhiyan (2020)
● The Atmanirbhar Bharat (Self-Reliant India) initiative is aimed at fostering a

self-reliant economy and boosting domestic manufacturing.
● The policy focuses on local production, strengthening supply chains, and
reducing dependency on imports.
● It also emphasizes innovation and the promotion of MSMEs, with specific
focus on the digital economy and technology-driven industrial growth.
Key Objectives of Industrial Policy
● Industrial Growth: Promote balanced and sustainable industrial growth across

all sectors, including manufacturing, services, and agriculture.
● Employment Generation: Creating jobs, particularly in the MSME sector and
through initiatives like Skill India.
● Technological Advancement: Encourage innovation, research, and
development, with a focus on indigenous technologies and self-reliance.
● Global Competitiveness: Make Indian industries competitive globally through
reforms, liberalization, and integration into the global supply chain.
● Sustainable Development: Promote green technologies, resource-efficient
production, and environmental sustainability.
● Investment and Infrastructure: Attract both domestic and foreign
investments, especially in infrastructure and manufacturing sectors.
● Regional Disparities: Reducing industrial disparities between regions and
ensuring that industrial growth is spread across urban and rural areas.
MCQs on Industrial Policy
1. The first Industrial Policy of India was announced in which year? a) 1947
b) 1956
c) 1948
d) 1960
Answer: c) 1948
2. Which Industrial Policy of India classified industries into three categories –
Schedule A, B, and C? a) Industrial Policy of 1980
b) Industrial Policy of 1956
c) Industrial Policy of 1991
d) Industrial Policy of 1977
Answer: b) Industrial Policy of 1956
3. The Industrial Policy of 1991 was primarily focused on: a) Promoting
state-owned enterprises
b) Liberalization, privatization, and globalization

c) Reducing foreign investments
d) Increasing import duties
Answer: b) Liberalization, privatization, and globalization
4. What was the main goal of the Make in India initiative? a) Encouraging tourism
b) Promoting local art and culture
c) Turning India into a global manufacturing hub
d) Fostering agricultural growth
Answer: c) Turning India into a global manufacturing hub
5. The National Manufacturing Policy, 2011, aims to increase the share of
manufacturing in India's GDP to: a) 15% by 2025
b) 25% by 2025
c) 40% by 2025
d) 30% by 2030
Answer: b) 25% by 2025
6. The Atmanirbhar Bharat Abhiyan focuses on: a) Reducing imports and
promoting domestic manufacturing
b) Expanding the agricultural sector
c) Boosting the service sector
d) Encouraging foreign investments in agriculture
Answer: a) Reducing imports and promoting domestic manufacturing
7. Which of the following is the primary focus of the Industrial Policy of 1977? a)
Private sector participation
b) Heavy investment in public sector enterprises
c) Promoting the IT sector
d) State control over all industries
Answer: a) Private sector participation
8. The 1991 Industrial Policy was aimed at: a) Protecting domestic industries
through heavy regulation
b) Reducing the role of the public sector in the economy
c) Nationalizing industries in key sectors
d) Increasing trade restrictions
Answer: b) Reducing the role of the public sector in the economy
9. The Make in India initiative aims to promote: a) Only small-scale industries
b) Foreign multinational companies
c) Manufacturing across various sectors like electronics, defense, and
automobiles
d) Import of foreign goods
Answer: c) Manufacturing across various sectors like electronics, defense, and
automobiles
10.Which Industrial Policy emphasized the promotion of foreign direct

investment (FDI) in India? a) Industrial Policy of 1977
b) Industrial Policy of 1991
c) Industrial Policy of 2001
d) Industrial Policy of 2011
Answer: b) Industrial Policy of 1991
Conclusion
India's Industrial Policy has evolved over time to reflect changing economic needs
and global conditions. From early emphasis on self-reliance and public sector
dominance to the liberalization and privatization strategies of the 1991 reforms,
industrial policy in India has played a crucial role in shaping the country's economic
landscape. The more recent initiatives like Make in India and Atmanirbhar Bharat
reflect the ongoing emphasis on self-reliance, global competitiveness, and
technological advancement, while continuing to focus on the welfare and growth of
the MSME sector.
Aerospace Policy in India
India's Aerospace Policy has evolved to cater to the growing needs of both civil
aviation and space exploration. The policy focuses on fostering technological
advancements, expanding domestic production, improving infrastructure, and
enhancing India's global position in the aerospace sector. With initiatives like Make
in India and Atmanirbhar Bharat, the Indian government aims to make the country a
significant player in the global aerospace industry.
Key Features of India’s Aerospace Policy
1. Civil Aviation Sector
● Objective: The primary goal is to make India a global hub for aviation services by
increasing the number of airports, improving air connectivity, and boosting
passenger and cargo traffic.
● Growth Initiatives: The government’s focus has been on encouraging private
sector participation, improving infrastructure at airports, and reducing
regulatory hurdles to promote domestic and international air traffic.
● UDAN Scheme: The Ude Desh ka Aam Naagrik (UDAN) scheme aims to make air
travel accessible and affordable for the common man by connecting smaller
towns with major cities.
● Aircraft Manufacturing: India has been promoting domestic manufacturing of
aircraft through partnerships with major aerospace companies like Airbus and
Boeing.
2. Space Exploration and Satellite Technology
● ISRO (Indian Space Research Organisation): India has made tremendous strides in space
exploration through ISRO, which has launched several successful missions
such as the Mars Orbiter Mission (Mangalyaan) and Chandrayaan missions to
the Moon.
● Policy Support: The government has been promoting the development of

indigenous technologies for satellite production, launch vehicles, and
spacecraft.
● Commercialization: The Indian National Space Promotion and Authorization
Center (IN-SPACe) was set up to promote private participation in space
missions, satellite launches, and satellite services.
● Space Hub: India is aiming to become a global hub for satellite services,
focusing on applications such as remote sensing, telecommunications, and
weather forecasting.
3. Military Aerospace and Defense
● Self-Reliance: The aerospace policy emphasizes self-reliance in the defense

sector, with a focus on manufacturing indigenous aircraft, drones, missile
systems, and other aerospace technologies.
● Make in India: The Make in India initiative aims to boost local production of
defense aircraft, including fighter jets, transport aircraft, and drones.
Companies like HAL (Hindustan Aeronautics Limited) and DRDO (Defense
Research and Development Organisation) are involved in developing
indigenous aerospace technologies.
● Private Sector Involvement: The policy encourages private companies to
participate in aerospace research and development, aiming to create a more
competitive and self-sufficient defense aerospace industry.
4. Infrastructure and Research & Development
● Aeronautical Research and Development: Government initiatives focus on developing

cutting-edge technologies in aerodynamics, materials science, propulsion
systems, and avionics. This also includes the enhancement of aerospace R&D
facilities in collaboration with academic institutions and research
organizations.
● Aerospace Parks: The establishment of aerospace parks in various states to
promote innovation, collaboration between industries, and the production of
components for the aerospace industry.
● Modernization of Airports and Air Traffic Management: To support growing air

traffic, India is modernizing its airports and air traffic management systems.
Digitalization and automation are key features of this modernization.
5. Policy Incentives and Financial Support
● Fiscal Support: The Indian government offers financial incentives, subsidies, and
tax exemptions to encourage aerospace manufacturing, including support for
setting up R&D centers and manufacturing units.
● Ease of Doing Business: Efforts have been made to reduce regulatory red tape,
make the process of obtaining licenses and approvals simpler, and create a
more conducive environment for foreign investment.
● Export Promotion: The policy encourages aerospace exports, focusing on
enhancing the competitiveness of Indian aerospace products in the global
market.
6. Global Positioning
● Strategic Partnerships: India aims to collaborate with global aerospace giants such
as Boeing, Airbus, and Lockheed Martin to improve its technological
capabilities, with an emphasis on joint ventures and partnerships in
manufacturing and R&D.
● Global Aerospace Hub: The long-term vision is to position India as a key player
in the global aerospace industry, with a focus on aerospace exports, global
partnerships, and innovation.
MCQs on Aerospace Policy
1. Which organization is primarily responsible for space exploration and satellite
technology in India? a) DRDO
b) HAL
c) ISRO
d) IN-SPACe
Answer: c) ISRO
2. The UDAN Scheme is aimed at: a) Promoting international air travel
b) Making air travel affordable for the common man
c) Developing airports in major cities
d) Increasing defense aerospace production
Answer: b) Making air travel affordable for the common man
3. Which of the following is a primary goal of India’s Aerospace Policy? a) To

promote only defense aerospace manufacturing
b) To become a global hub for aerospace exports
c) To reduce participation from the private sector
d) To promote only space research
Answer: b) To become a global hub for aerospace exports
4. The Indian National Space Promotion and Authorization Center (IN-SPACe) is
aimed at: a) Launching military satellites
b) Promoting private participation in space missions
c) Providing space tourism opportunities
d) Controlling air traffic management
Answer: b) Promoting private participation in space missions
5. Which government initiative aims to boost indigenous manufacturing of

defense aircraft in India? a) Digital India
b) Make in India
c) Smart Cities Mission
d) Skill India
Answer: b) Make in India
6. The Aerospace Parks in India are designed to: a) Provide spaces for
agricultural activities
b) Promote collaboration and innovation in aerospace
c) Develop residential infrastructure

d) Focus only on commercial aviation
Answer: b) Promote collaboration and innovation in aerospace
7. Which aerospace company in India is primarily involved in manufacturing

aircraft and defense systems? a) Boeing
b) HAL (Hindustan Aeronautics Limited)
c) Airbus
d) Lockheed Martin
Answer: b) HAL (Hindustan Aeronautics Limited)
8. What is the primary focus of the Indian government's policy on aerospace
exports? a) Developing airports in rural areas
b) Expanding international air traffic
c) Enhancing the competitiveness of Indian aerospace products in the global
market
d) Reducing air traffic congestion
Answer: c) Enhancing the competitiveness of Indian aerospace products in
the global market
9. The Make in India initiative for aerospace aims to: a) Increase India’s
dependence on foreign aerospace imports
b) Focus solely on space exploration
c) Promote domestic manufacturing of aerospace components and aircraft
d) Eliminate private sector participation in aerospace manufacturing
Answer: c) Promote domestic manufacturing of aerospace components and
aircraft
10.What is the key feature of the UDAN Scheme in India? a) Connecting smaller
towns with major cities
b) Promoting international air traffic
c) Developing large international airports
d) Increasing military aircraft production

Answer: a) Connecting smaller towns with major cities
Conclusion
India's Aerospace Policy is a comprehensive strategy to boost both civil aviation and
space exploration while encouraging self-reliance and global competitiveness.
Through initiatives like Make in India, UDAN, and IN-SPACe, India aims to develop
indigenous technologies, expand aerospace manufacturing, and promote private
participation. The policy's focus on research and development, infrastructure
improvement, and strategic partnerships is shaping India’s position as an emerging
aerospace hub on the global stage.

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ACTS AND POLICIES Exam Dais App

ACTS AND POLICIES:

1. Factories Act 1948

Some of these measures are as follows:

Objectives of Factories Act, 1948

●​ To ensure that factories adhere to global best practices in the factories

●​ To provide a fair and decent livelihood for all working-class people

●​ To reduce any social or industrial tensions

Provisions of Factories Act, 1948

The Industrial Disputes Act, 1947

1.​ To prevent and resolve industrial disputes.

1.​ Industrial Dispute:​

Any dispute between employers and employees or among employees

Authorities Under the Act

1.​ Conciliation Officer: Appointed to mediate disputes.

1.​ Works Committees (Section 3):​

Established in units with 100+ workers to promote good relations.​

2.​ Conciliation (Sections 4-6):​

3.​ Adjudication (Sections 7-9):​

4.​ Strikes and Lockouts (Sections 22-25):​

○​ Regulates strikes by employees and lockouts by employers.

○​ Lay-off: Temporary suspension of work.

7.​ Voluntary Arbitration (Section 10A):​

1.​ Illegal strikes/lockouts: Fine and/or imprisonment.

MCQs on The Industrial Disputes Act, 1947

2.​ Who is responsible for mediating industrial disputes?​

3.​ What is required for a strike in public utility services to be legal?​

Answer: b) 14 days’ prior notice​

4.​ What does Section 25A of the Act deal with?​

5.​ Which authority deals with disputes of national importance?​

7.​ Which section defines "protected workmen"?​

1. The Minimum Wages Act, 1948

2. The Payment of Wages Act, 1936

●​ Objective: Ensures timely payment of wages to employees without

3. The Equal Remuneration Act, 1976

The Indian Contract Act, 1872

1. Key Elements of a Valid Contract:

1.​ Offer and acceptance.

1.​ Void Contract: Not enforceable by law.

1.​ Performance of contractual obligations.

The Indian Negotiable Instruments Act, 1881

●​ A negotiable instrument is a written document guaranteeing payment to the

1.​ Transferable by delivery or endorsement.

3. Dishonor of Negotiable Instruments:

●​ Reasons for Dishonor: Insufficient funds, mismatched signatures, or post-dated

2.​ The Payment of Wages Act applies to employees earning below:​

b) ₹15,000 per month​

The Indian Contract Act

1.​ Which of the following is NOT a valid contract?​

2.​ A contract is discharged by impossibility of performance. This is called:​

The Negotiable Instruments Act

1.​ What is NOT a type of negotiable instrument under the Act?​

2.​ Dishonor of a cheque due to insufficient funds is addressed under:​

3.​ Which party writes a cheque?​

The Indian Sale of Goods Act, 1930

1.​ Contract of Sale (Section 4):​

○​ A contract of sale involves the transfer of ownership of goods from the

2.​ Goods (Section 2):​

○​ Existing Goods: Already owned/possessed by the seller.

○​ Condition: Essential to the contract (breach allows repudiation).

● To ensure that factories adhere to global best practices in the factories

● To provide a fair and decent livelihood for all working-class people

● To reduce any social or industrial tensions

1. To prevent and resolve industrial disputes.

1. Industrial Dispute:

1. Conciliation Officer: Appointed to mediate disputes.

1. Works Committees (Section 3):

Established in units with 100+ workers to promote good relations.

2. Conciliation (Sections 4-6):

3. Adjudication (Sections 7-9):

4. Strikes and Lockouts (Sections 22-25):

○ Regulates strikes by employees and lockouts by employers.

○ Lay-off: Temporary suspension of work.

7. Voluntary Arbitration (Section 10A):

1. Illegal strikes/lockouts: Fine and/or imprisonment.

2. Who is responsible for mediating industrial disputes?

3. What is required for a strike in public utility services to be legal?

Answer: b) 14 days’ prior notice

4. What does Section 25A of the Act deal with?

5. Which authority deals with disputes of national importance?

7. Which section defines "protected workmen"?

● Objective: Ensures timely payment of wages to employees without

1. Offer and acceptance.

1. Void Contract: Not enforceable by law.

1. Performance of contractual obligations.

● A negotiable instrument is a written document guaranteeing payment to the

1. Transferable by delivery or endorsement.

● Reasons for Dishonor: Insufficient funds, mismatched signatures, or post-dated

2. The Payment of Wages Act applies to employees earning below:

b) ₹15,000 per month

1. Which of the following is NOT a valid contract?

2. A contract is discharged by impossibility of performance. This is called:

1. What is NOT a type of negotiable instrument under the Act?

2. Dishonor of a cheque due to insufficient funds is addressed under:

3. Which party writes a cheque?

1. Contract of Sale (Section 4):

○ A contract of sale involves the transfer of ownership of goods from the

2. Goods (Section 2):

○ Existing Goods: Already owned/possessed by the seller.

○ Condition: Essential to the contract (breach allows repudiation).

○ Ownership passes when parties intend it to, usually on delivery or

○ Delivery of goods and payment are obligations of both parties.

1. Definition (Section 4):

2. Essential Features:

○ Mutual agency (partners act as agents and principals).

1. The Child Labour (Prohibition and Regulation) Act, 1986:

○ Prohibits employment of children below 14 in hazardous occupations.

○ Grants maternity leave and benefits to women employees.

1. What is a "future good" under the Sale of Goods Act?

2. Ownership of goods passes when:

1. A partnership can be dissolved by:

2. The relationship of partners is based on:

1. The Dowry Prohibition Act was enacted in:

2. Which Act provides maternity leave benefits?

3. Under the SC/ST Act, what is the primary objective?

○ A trademark is a visual symbol used to distinguish goods or services of

○ Registration grants exclusive rights to the owner.

○ Refers to the unauthorized use of a trademark that misleads consumers

1. Grants exclusive ownership rights.

1. What does a trademark represent?

3. What is “passing off” in trademark law?

b) Using another’s trademark to mislead consumers

4. Which of the following marks cannot be registered as a trademark?

5. What is the remedy for trademark infringement?

6. What is the term for a registered trademark being renewed?

7. The term 'Trade Dress' refers to:

2. Types of Sales Tax:

○ Objective: GST replaced multiple indirect taxes, including sales tax,

■ SGST: State Goods and Services Tax.

1. Taxable Sale Price:

1. Sales tax is an example of which type of tax?

3. Which tax system replaced sales tax in India?

4. Under GST, the tax is levied on which of the following?

6. What is the full form of GST?

1. Scope of Income:

○ The Act defines income broadly, including income from salaries,

○ The Act applies to individuals, Hindu Undivided Families (HUF),

4. Assessment Year (AY) and Previous Year (PY):

○ Previous Year is the financial year in which income is earned.

○ Income from Salary: Includes basic salary, allowances, bonuses, etc.