CBSE 2021 Class 12 Economics Term 1 Paper

Q.No. 55−60 are to be answered on the basis of the following text:
To make India a globally competitive economy, there must be a larger focus on exporting to the most demanding markets. A stronger participation of Indian Micro, Small and Medium Enterprises (MSMEs) in the global market can accelerate such a growth. This will lead to more opportunities in scaling up production, will speed up innovation and productivity. The MSME sector in India is the backbone of our country's economic structure and without this the country cannot progress. With over 63 million, MSME units, this sector covers 80% of the industries. This sector accounts for 31% of GDP and 45% of total exports. It is also the second largest employer in India providing jobs to over 120 million people. The MSME's should work towards becoming a part of global value chains (GVCs). It must also, find new opportunities to integrate themselves with the GVCs as exporters.

Question : 59

Total: 60

Vocal for local initiative of the Government of India is a boon for the MSMEs segment as it _______.
(Choose the correct alternative)
(i) reduces dependence on other countries for import
(ii) boost entrepreneurship in the country
(iii) save foreign exchange
(iv) uses superior technology

(i) and (ii)
(i), (ii) and (iv)
(i), (ii), (iii) and (iv)
(i), (ii) and (iii)

Solution:

(d) (i), (ii) and (iii)
Explanation: The idea is to promote local industries and consumer local products wherever possible so that long term effects of an increase in demand can be used to promote domestic industry. It helps to boost the entrepreneurship in the country and reduce the imports from other countries to save foreign exchange.

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