Topic Details (Notes format)

Micro, Small and Medium Enterprises (MSMEs)

Subject: Economics

Book: Comprehensive Indian Economy

MSMEs form the backbone of India’s industrial output and job market, especially in rural areas. They face hurdles in credit accessibility, technology adoption, and marketing. Schemes like MUDRA loans aim to ease financing, while cluster development programs promote collaboration. The revised MSME definition (based on turnover) broadens coverage. Key exam themes: analyzing how MSMEs boost local incomes, the role of SIDBI, and reasons behind frequent sickness (lack of economies of scale, poor infrastructure). Reforms to address skill gaps and e-commerce integration can be crucial to uplift MSME competitiveness.

Practice Questions

Which of the following is a characteristic of “perfect competition”?

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What does “balance of trade” refer to?

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Which organization is responsible for estimating India’s Gross Domestic Product (GDP)?

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What is the main function of the Reserve Bank of India (RBI)?

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Which is the largest source of tax revenue for the Government of India?

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Which term refers to an economy that has elements of both capitalism and socialism?

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What does the term “capital account” refer to in the balance of payments?

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Which term refers to the decrease in the value of a currency relative to foreign currencies?

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What is meant by “monetary policy”?

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What is “inflation targeting”?

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