UPSC Editorials Quiz : 8 October 2025

Solution: C

Pair 1 is correctly matched. The PM Vishwakarma scheme was launched in 2023 with the specific objective of providing holistic, end-to-end support to traditional artisans and craftspeople (Vishwakarmas) across 18 trades. The support includes recognition through a certificate and ID card, skill upgradation, a toolkit incentive, collateral-free credit support (up to ₹3 lakh), incentives for digital transactions, and marketing support. It aims to integrate these artisans into the formal economy and value chains.

Pair 2 is correctly matched. The MSME Competitive (LEAN) Scheme is part of the MSME Champions scheme. Its primary objective is to improve the competitiveness of MSMEs by encouraging them to adopt ‘Lean Manufacturing’ principles. These principles focus on systematically eliminating waste from the manufacturing process, leading to improved productivity, quality, and cost-effectiveness. The scheme provides financial assistance and expert guidance to MSMEs for implementing these tools.

Pair 3 is correctly matched. The Udyam Registration Portal was launched in July 2020 as a major reform for the MSME sector. It replaced the earlier complex Udyog Aadhaar Memorandum (UAM) process. It is a completely online, paperless, and free-of-cost registration process based on self-declaration. An enterprise that registers receives a permanent registration number and an ‘Udyam Registration Certificate’. This portal serves as the primary single-window system for the identification and classification of MSMEs, making it easier for them to access various government schemes and benefits.

Solution: C

• Disguised unemployment, or hidden unemployment, is a situation where more people are employed in an activity than are actually required, such that their marginal productivity is zero or close to zero. If some of these workers are withdrawn from the activity, the total output will not fall.
• Option (a) and (d) are incorrect. The IT, banking, and financial services sectors are part of the organised services sector. They are characterized by high productivity, formal employment contracts, and a clear relationship between the number of workers and output. The marginal productivity of an employee in these sectors is significantly positive.
• Option (b) is incorrect. The capital goods manufacturing sector is also typically part of the organised sector, requiring skilled labour and capital-intensive processes. While it can face cyclical unemployment, it is not characterized by disguised unemployment.
• Option (c) is correct. The agricultural sector in India is the classic example of an economy with widespread disguised unemployment. Due to a lack of alternative employment opportunities, entire families are often engaged on a small plot of land. While everyone appears to be working, the work could be done by fewer people without any loss in agricultural output. The contribution of the additional workers to production is negligible. This is a major reason for the low per-capita productivity in Indian agriculture and underscores the need for job creation in the manufacturing and services sectors to absorb this surplus labour.

Solution: D

• Industrial Licensing: This was the cornerstone of the system. Private firms were required to obtain a license from the government to start a new unit, expand capacity, or diversify production. This gave the state extensive control over the pattern of industrial investment.
• Reservation of industries for the public sector: A significant number of key industries, especially in heavy and strategic sectors (like mining, energy, and steel), were exclusively reserved for Public Sector Undertakings (PSUs). This was done to ensure state control over the “commanding heights” of the economy, a key tenet of the Nehruvian socialist model.
• Quantitative restrictions on imports: The ISI policy aimed to protect domestic industries from foreign competition to allow them to grow. This was achieved through high tariffs and, more importantly, strict quantitative restrictions (quotas) on the import of foreign goods, especially consumer goods. This forced domestic consumers and producers to rely on domestically produced items, regardless of quality or cost.
• Phased Manufacturing Programme (PMP): This was a specific policy tool under the ISI framework, particularly in sectors like automobiles. Firms, including foreign collaborations, were required to progressively increase the proportion of domestically sourced components in their final products over a specified period. The goal was to foster backward linkages and develop a domestic ancillary industry, thereby reducing reliance on imported parts and deepening the industrial base.

Solution: B

Statement 1 is incorrect. The Sustainable Mountain Development Summit (SMDS) is organized by the Integrated Mountain Initiative (IMI), which is a civil society-led network. It is not organized by the Ministry of Environment, Forest and Climate Change, although government officials do participate in the summit.

Statement 2 is correct. A key feature of the SMDS is the ‘Mountain Legislators’ Meet’ (MLM). This provides a unique platform for elected representatives from the IHR states to engage in policy dialogue, share experiences, and collaborate on solutions for the sustainable development of their region.

Solution: C

• Statement 1 is correct; the PM E-DRIVE scheme is a key government initiative aimed at accelerating the adoption of electric vehicles in the country. A critical component of this strategy is addressing “range anxiety” among potential EV users by ensuring the availability of charging infrastructure.
• Statement 2 is correct. A major thrust of the PM E-DRIVE scheme is to expand the network of public EV charging stations. To this end, the scheme provides significant subsidies—up to 100% in some cases—for the installation of charging infrastructure at various locations, including government premises, public transport hubs, and highways.
• Statement 3 is also correct. To ensure the effective and streamlined execution of this ambitious plan, the government has designated Bharat Heavy Electricals Limited (BHEL), a public sector undertaking, as the Project Implementation Agency (PIA).