Economy Key Terminologies — Industry
1. Previous Year Questions (UPSC)
Context: Understanding key industrial terminologies is crucial for UPSC preparation. The following terms have been asked in previous years' examinations.
| Year | Term | Explanation |
|---|---|---|
| 2020 | West Texas Intermediate (WTI) | West Texas Intermediate (WTI) is a grade of crude oil that is used as a benchmark for pricing oil in the United States. WTI is traded on the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE) in London. WTI is widely used as a benchmark for crude oil prices in the United States and serves as a reference price for other crude oils in the global market. |
| 2020 | Trade-Related Investment Measures (TRIMs) | TRIMs are rules and regulations that are applied by countries to regulate and control foreign investment within their borders. These measures can include requirements for local content, technology transfer, export performance, and domestic ownership requirements. |
| 2019 | Nationalized Industries (Coal Sector) | Nationalized industries refer to industries that are owned and operated by the government rather than private individuals or companies. In India, several industries have been nationalized over the years. The nationalization of industries in India began with the Industrial Policy Resolution of 1948, which identified key sectors that were deemed to be of strategic importance and nationalized. |
| 2016 | UDAY Scheme | 'UDAY' stands for Ujjwal DISCOM Assurance Yojana, and it is a scheme launched by the Government of India in 2015 to help financially stressed state electricity distribution companies (DISCOMs). The UDAY scheme aims to improve the operational efficiency of DISCOMs and reduce their financial losses. |
| 2016 | District Mineral Foundation (DMF) | The District Mineral Foundation (DMF) is a trust set up in India as a part of the Mines and Minerals (Development and Regulation) Amendment Act, 2015. The purpose of the DMF is to provide financial and other assistance for the welfare of people and areas affected by mining-related operations in the country. |
| 2012 | National Investment and Manufacturing Zones (NIMZs) | The NIMZs is an initiative of the Government of India to promote industrialization in the country. The NIMZs are envisaged as large integrated industrial townships with world-class infrastructure and facilities for manufacturing industries. |
| 2012 | Single Window Clearance (SWC) | Single Window Clearance (SWC) is a mechanism that is designed to simplify and streamline the process of obtaining regulatory approvals for businesses. |
| 2012 | Technology Acquisition and Development Fund (TADF) | The TADF is a scheme launched by the Government of India to facilitate the acquisition of technology by Micro, Small, and Medium Enterprises (MSMEs) in the country. The fund is managed by the Small Industries Development Bank of India (SIDBI). |
| 2012 | Core Industries | The core industries in India refer to the eight core industries sectors that are essential for the growth and development of the economy. These sectors are coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity. |
| 2012 | Index of Industrial Production (IIP) | The Index of Industrial Production (IIP) is a measure of the growth in the production output of the industrial sector in India. It is calculated on a monthly basis and is released by the Central Statistics Office (CSO) of India. The IIP includes three major sectors - mining, manufacturing, and electricity. It also covers a wide range of industries within these sectors, including textiles, chemicals, machinery, food and beverages etc. |
| 2012 | Purchase Managers Index (PMI) | It is a composite index. It measures the economic health of a country's manufacturing sector. It is based on a survey of purchasing managers. Purchasing managers are responsible for buying goods and services for businesses. |
2. Important Terms in News
Context: These industrial terms frequently appear in news and policy discussions, making them essential for UPSC aspirants to understand.
Reverse Flip
- Reverse flipping is the process of shifting the domicile of an Indian company back to India after it had moved its headquarters overseas, usually for tax or regulatory reasons.
- It is also known as 're-domiciling'.
Special Economic Zones (SEZ)
- SEZ is a specifically delineated duty-free enclave, deemed to be foreign territory for trade operations, duties and tariffs.
Key Industrial Terms at a Glance:
- Reverse Flip: Shifting Indian company domicile back to India (re-domiciling)
- SEZ: Duty-free enclave deemed foreign territory for trade operations
- Reverse Flip: Shifting Indian company domicile back to India (re-domiciling)
- SEZ: Duty-free enclave deemed foreign territory for trade operations
3. Summary: Key Industrial Terminologies
| Term | Key Definition |
|---|---|
| WTI | West Texas Intermediate - crude oil benchmark in US (traded on NYMEX) |
| TRIMs | Trade-Related Investment Measures - rules regulating foreign investment |
| Nationalized Industries | Government-owned and operated industries (Industrial Policy Resolution 1948) |
| UDAY Scheme | Ujjwal DISCOM Assurance Yojana (2015) - for financially stressed DISCOMs |
| DMF | District Mineral Foundation (Mines and Minerals Amendment Act, 2015) |
| NIMZs | National Investment and Manufacturing Zones (industrial townships) |
| SWC | Single Window Clearance - streamlining regulatory approvals |
| TADF | Technology Acquisition and Development Fund (for MSMEs, managed by SIDBI) |
| Core Industries | Eight sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity |
| IIP | Index of Industrial Production (monthly, released by CSO) - mining, manufacturing, electricity |
| PMI | Purchase Managers Index - measures economic health of manufacturing sector |
| Reverse Flip | Shifting Indian company domicile back to India (re-domiciling) |
| SEZ | Special Economic Zones - duty-free enclaves for trade operations |
Key Takeaways for UPSC
- WTI: US crude oil benchmark (NYMEX) - UPSC 2020
- TRIMs: WTO rules regulating foreign investment - UPSC 2020
- UDAY Scheme: DISCOM reform (2015) - UPSC 2016
- DMF: Mining welfare fund (Mines and Minerals Act, 2015) - UPSC 2016
- Core Industries: 8 sectors including coal, steel, cement - UPSC 2012
- IIP: Monthly industrial output measure (CSO) - UPSC 2012
- PMI: Manufacturing sector health indicator - UPSC 2012
- Reverse Flip: Re-domiciling Indian companies - In news
- SEZ: Duty-free enclaves for trade - In news
High-Yield Interactive UPSC Quiz (Chapter 4: Industry)
Q1. West Texas Intermediate (WTI) is a benchmark for:
Correct Answer: B. West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark for pricing oil in the United States. (UPSC 2020)
Q2. TRIMs stands for:
Correct Answer: A. TRIMs stands for Trade-Related Investment Measures, which are rules and regulations applied by countries to regulate foreign investment. (UPSC 2020)
Q3. The UDAY Scheme was launched to help:
Correct Answer: C. UDAY (Ujjwal DISCOM Assurance Yojana) is a scheme launched in 2015 to help financially stressed state electricity distribution companies (DISCOMs). (UPSC 2016)
Q4. The District Mineral Foundation (DMF) was established under which act?
Correct Answer: B. The District Mineral Foundation (DMF) was set up as a part of the Mines and Minerals (Development and Regulation) Amendment Act, 2015. (UPSC 2016)
Q5. How many core industries are there in India?
Correct Answer: D. There are eight core industries in India: coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity. (UPSC 2012)
Q6. The Index of Industrial Production (IIP) is released by:
Correct Answer: B. The Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of India on a monthly basis. (UPSC 2012)
Q7. The Purchase Managers Index (PMI) measures the economic health of:
Correct Answer: B. The Purchase Managers Index (PMI) is a composite index that measures the economic health of a country's manufacturing sector based on a survey of purchasing managers. (UPSC 2012)
Q8. The Technology Acquisition and Development Fund (TADF) is managed by:
Correct Answer: C. The Technology Acquisition and Development Fund (TADF) is managed by the Small Industries Development Bank of India (SIDBI). (UPSC 2012)
Q9. Reverse flipping is also known as:
Correct Answer: B. Reverse flipping is the process of shifting the domicile of an Indian company back to India. It is also known as 're-domiciling'.
Q10. Special Economic Zones (SEZ) are:
Correct Answer: B. SEZ is a specifically delineated duty-free enclave, deemed to be foreign territory for trade operations, duties and tariffs.