Consider the following statements regarding the MAARG portal launched by the Government of India:
1. The MAARG portal is exclusively designed for the direct equity funding of deep-tech agricultural startups by the Reserve Bank of India.
2. Startups must have an annual turnover exceeding Rs 100 crore to register and access services on the MAARG portal.
3. The portal falls under the direct administrative control of the Ministry of Finance to regulate startup valuations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. MAARG (Mentorship, Advisory, Assistance, Resilience and Growth) is a national mentorship platform by DPIIT (Ministry of Commerce and Industry) to facilitate mentorship for startups. It is not a funding portal by the RBI, has no Rs 100 crore turnover requirement, and is not controlled by the Ministry of Finance.
Consider the following statements regarding the PLI Scheme for Food Processing Industry (PLISFPI):
1. The scheme aims to support the creation of global food manufacturing champions and promote Indian brands in international markets.
2. Ready to Eat (RTE) / Ready to Cook (RTC) foods and marine products are among the primary targeted product segments.
3. The scheme uniquely includes a component that directly incentivizes the branding and marketing activities of Indian food products abroad.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The PLISFPI targets specific segments like RTE/RTC, fruits & vegetables, marine products, and mozzarella cheese. Uniquely among PLI schemes, it also provides specific financial grants for in-store branding, shelf space renting, and marketing of Indian brands abroad to build global champions.
Consider the following statements regarding the Inter-Ministerial Board (IMB) for Startups:
1. The Inter-Ministerial Board is set up by DPIIT to validate startups for granting specific tax-related benefits.
2. An IMB certificate is mandatory for a recognized startup to claim an income tax holiday under Section 80-IAC of the Income Tax Act.
3. Every single entity that receives DPIIT startup recognition automatically receives the IMB certificate upon incorporation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The IMB evaluates startups for tax exemption eligibility, and its certification is mandatory to claim benefits under Section 80-IAC. Statement 3 is incorrect because DPIIT recognition and IMB certification are separate processes. A startup must apply specifically to the IMB for the tax certificate, and approval is not automatic upon DPIIT recognition.
Consider the following statements regarding the general administration of PLI Schemes in India:
1. All 14 PLI schemes are managed and disbursed by a single central nodal agency called the PLI Authority of India.
2. PLI incentives are distributed as advance capital payments to companies before they make any actual investments or production.
3. The World Trade Organization (WTO) has officially prohibited India from implementing the PLI scheme, leading to its complete suspension in 2023.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because there is no single "PLI Authority of India"; the schemes are administered by respective nodal ministries (e.g., MeitY for electronics, Ministry of Heavy Industries for autos). Statement 2 is incorrect because PLI incentives are strictly post-performance, disbursed only after verifying that the company has met incremental investment and sales targets. Statement 3 is incorrect; the schemes are active and designed to be WTO-compliant, with no such suspension existing.
Consider the following statements regarding the PLI Scheme for Textiles:
1. The scheme explicitly targets the traditional handloom and khadi sectors to boost rural employment and heritage crafts.
2. Manufacturers of traditional cotton-based apparel receive the highest incentives under the PLI Textile scheme.
3. The scheme requires no minimum investment condition; any registered textile company can claim incentives on incremental sales.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statements 1 and 2 are incorrect because the PLI for Textiles specifically targets Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles, explicitly excluding traditional cotton and handloom to capture a larger share of the global synthetic market. Statement 3 is incorrect because the scheme is structured into parts requiring strict minimum investments (e.g., Rs 100 crore or Rs 300 crore) to be eligible.
Consider the following statements regarding the 'Startup India' Initiative:
1. The initiative was launched in 2016 to build a strong ecosystem for nurturing innovation and entrepreneurship in the country.
2. An entity is considered a startup up to 10 years from the date of its incorporation or registration.
3. Only private limited companies and registered partnership firms are eligible to be recognized as startups, completely excluding Limited Liability Partnerships (LLPs).
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The Startup India action plan was launched in 2016, and the definition of a startup extends up to 10 years from incorporation. Statement 3 is incorrect because Limited Liability Partnerships (LLPs) are also eligible to be recognized as startups under the DPIIT criteria.
Consider the following statements regarding the Startup India Seed Fund Scheme (SISFS):
1. The SISFS is designed to provide financial assistance to startups specifically for proof of concept, prototype development, product trials, and market entry.
2. The entire corpus of the fund is disbursed as non-refundable grants directly to individual startup founders' personal bank accounts by the Ministry of Finance.
3. Foreign venture capitalists are officially designated to manage and approve the disbursement of funds under the SISFS.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The SISFS aims to provide crucial early-stage seed funding for prototypes and proof of concept. Statement 2 is incorrect because the funds are not given directly to founders' personal accounts by the Ministry of Finance; DPIIT provides funds to eligible incubators, which then disburse them to startups as grants or debt/convertible debentures. Statement 3 is incorrect because the funds are managed by an Experts Advisory Committee (EAC) and disbursed through government-approved incubators, not foreign venture capitalists.
Consider the following statements regarding 'Bhashini' and its intersection with the startup ecosystem:
1. Bhashini is an initiative by the Reserve Bank of India to provide low-interest language-agnostic loans to fintech startups.
2. Only DPIIT-recognized startups that have achieved unicorn status are legally permitted to access the Bhashini API infrastructure.
3. The primary goal of Bhashini is to completely replace human software coders with Artificial Intelligence in the Indian startup ecosystem by 2025.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Bhashini is the National Language Translation Mission launched by MeitY to transcend language barriers using AI. Statement 1 is incorrect; it is not an RBI loan initiative. Statement 2 is incorrect; its APIs and datasets are openly accessible to startups, MSMEs, and developers to build vernacular applications, irrespective of unicorn status. Statement 3 is incorrect; its goal is digital inclusion and language translation for citizens, not replacing software coders.
Consider the following statements regarding the PLI Scheme for High-Efficiency Solar PV Modules:
1. The scheme aims to build gigawatt-scale manufacturing capacity for high-efficiency solar photovoltaic modules in India.
2. The incentive structure mathematically rewards manufacturers for achieving higher module efficiencies and increased domestic value addition.
3. The scheme completely bans the importation of all solar panels into India to force domestic adoption.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The scheme supports domestic manufacturing to reduce import dependence, with incentives increasing as the manufacturer's efficiency and local value addition (e.g., producing cells and wafers locally) increase. Statement 3 is incorrect because India relies on tariffs (like Basic Customs Duty) to discourage imports, but there is no absolute ban on importing solar panels.
Consider the following statements regarding Intellectual Property Rights (IPR) benefits for Startups:
1. Recognized startups are provided an 80% rebate in the statutory fee for filing patent applications compared to established corporate entities.
2. The Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP) provides facilitators whose professional fees are borne entirely by the government.
3. Startups receive a 50% rebate on the statutory fees for filing trademark applications.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. To encourage IPR generation, the government provides startups with an 80% rebate on patent filing fees, a 50% rebate on trademark filing fees, and covers the facilitator's professional fees under the SIPP scheme.
Consider the following statements regarding the Startup India Seed Fund Scheme (SISFS):
1. It aims to provide financial assistance to startups for proof of concept, prototype development, product trials, and market entry.
2. The fund is not given directly by the government to startups but is disbursed through approved incubators across India.
3. The DPIIT has constituted an Experts Advisory Committee (EAC) to evaluate and select incubators for the allotment of Seed Funds.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The SISFS provides early-stage funding (proof of concept, prototyping) via approved incubators. An Experts Advisory Committee (EAC) constituted by DPIIT is responsible for the overall execution and monitoring of the scheme, including incubator selection.
Consider the following statements regarding the criteria for an entity to be recognized as a 'Startup' by DPIIT:
1. The entity's turnover for any of the financial years since incorporation should not have exceeded Rs 100 crore.
2. An entity formed by splitting up or reconstructing an already existing business is fully eligible to be recognized as a startup.
3. The entity must be working towards innovation, development or improvement of products, processes, or have a scalable business model.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 3 are correct. The turnover limit is Rs 100 crore, and the entity must focus on innovation or scalability. Statement 2 is incorrect because the DPIIT notification explicitly states that an entity formed by splitting up or reconstructing an existing business shall not be considered a startup to prevent abuse of benefits.
Consider the following statements regarding the PLI Scheme for White Goods:
1. The scheme exclusively covers the domestic manufacturing of Air Conditioners and LED Lights.
2. It provides incentives based solely on the volume of exports, completely ignoring domestic market sales.
3. The mere assembly of completely knocked down (CKD) kits imported from abroad automatically qualifies a company for the highest PLI incentive rate.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The White Goods PLI targets ACs and LED lights. Statement 2 is incorrect because incentives are based on incremental sales in both domestic and export markets. Statement 3 is incorrect because the scheme is specifically designed to discourage mere assembly; it requires significant domestic value addition and component manufacturing to qualify for incentives.
Consider the following statements regarding the PLI Scheme for Specialty Steel:
1. The scheme aims to help India move up the steel value chain and reduce imports of high-end, value-added steel.
2. It covers strategic categories like coated/plated steel products, high strength/wear-resistant steel, and electrical steel.
3. Both large integrated steel players and secondary steel players are eligible to participate and claim incentives under the scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The PLI for Specialty Steel seeks to substitute imports in strategic sectors (defense, auto, power). It specifically targets 5 categories of specialty steel (including coated, electrical, and high-strength steel). The scheme is broad-based, allowing participation from both large integrated manufacturers and smaller secondary steel producers.
Consider the following statements regarding 'Unicorn' startups in the Indian ecosystem:
1. A unicorn is defined by the Government of India as a privately held startup company valued at over one billion Indian Rupees.
2. India currently holds the first rank globally in terms of the total number of unicorn startups.
3. Startups automatically lose their DPIIT recognition immediately upon reaching unicorn status, regardless of their age or turnover.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because a unicorn is a privately held startup valued at over one billion US Dollars, not Rupees. Statement 2 is incorrect because India generally ranks third globally in the number of unicorns (behind the US and China). Statement 3 is incorrect because DPIIT recognition is lost if a startup crosses 10 years of age or Rs 100 crore in turnover, not simply by hitting a billion-dollar valuation.
Consider the following statements regarding Deep Tech Startups in India:
1. The Draft National Deep Tech Startup Policy strictly prohibits foreign venture capital from investing in any Indian deep-tech firms due to national security concerns.
2. Deep tech startups typically have a much shorter gestation period and lower capital requirements compared to traditional consumer e-commerce startups.
3. Under the Startup India scheme, the term 'Deep Tech' refers exclusively to startups developing applications for smartphone operating systems.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; the policy encourages funding, and foreign VC investment is allowed (subject to standard FDI rules). Statement 2 is incorrect; deep tech startups face longer gestation periods, high R&D risk, and require much higher patient capital. Statement 3 is incorrect; deep tech involves substantial scientific or engineering innovations (like AI, quantum computing, biotechnology, robotics), not just mobile apps.
Consider the following statements regarding Deep Tech Startups:
1. Deep tech startups are entities whose business models are based on substantial scientific advances and high-tech engineering innovations.
2. They generally have a much shorter gestation period for product development compared to typical business-to-consumer (B2C) e-commerce startups.
3. The Government of India completely bans foreign venture capital investments in all deep-tech startups operating in the AI sector.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. Deep tech startups are based on tangible scientific discoveries or engineering innovation (e.g., AI, biotech, quantum computing). Statement 2 is incorrect because deep tech startups require substantial R&D, leading to significantly longer gestation periods and higher patient capital requirements. Statement 3 is incorrect because foreign venture capital investment is allowed and actively sought for Indian deep tech startups.
Consider the following statements regarding the Atal Innovation Mission (AIM):
1. AIM is a flagship initiative set up by NITI Aayog to promote a culture of innovation and entrepreneurship across the country.
2. Atal Tinkering Labs (ATLs) under AIM are established exclusively in higher education universities to fund advanced PhD research.
3. The operations of AIM are funded completely through mandatory Corporate Social Responsibility (CSR) contributions, with zero government budgetary allocation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. AIM is NITI Aayog's flagship innovation initiative. Statement 2 is incorrect because Atal Tinkering Labs (ATLs) are established in schools (for students in classes 6-12), not universities, to foster curiosity and innovation early on. Statement 3 is incorrect because AIM is heavily funded by direct central government budgetary allocations.
Consider the following statements regarding the PLI Scheme for Pharmaceuticals:
1. A major target of the scheme is to reduce India's import dependence on Key Starting Materials (KSMs) and Active Pharmaceutical Ingredients (APIs).
2. The scheme's benefits are restricted exclusively to companies manufacturing traditional Ayurvedic and Homeopathic medicines.
3. Incentives under this scheme are distributed based on a lottery system rather than incremental sales or investment performance.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The scheme was launched precisely to achieve self-reliance in critical bulk drugs (KSMs, APIs, DIs). Statement 2 is incorrect because it covers modern biopharmaceuticals, complex generic drugs, and in-vitro diagnostic devices, not just traditional medicines. Statement 3 is incorrect because incentives are strictly based on meeting incremental investment and sales targets, not a lottery system.
Consider the following statements regarding the pillars of the Startup India Action Plan (2016):
1. One of the core pillars focuses heavily on 'Simplification and Handholding' for budding entrepreneurs.
2. Providing 'Funding Support and Incentives' is officially recognized as a core pillar of the plan.
3. The third fundamental pillar is dedicated to fostering 'Industry-Academia Partnership and Incubation'.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The Startup India Action Plan, launched in January 2016, is built on three core pillars: 1) Simplification and Handholding (easing compliances), 2) Funding Support and Incentives (providing capital and tax benefits), and 3) Industry-Academia Partnership and Incubation (building incubators and innovation centers).
Consider the following statements regarding the PLI Scheme for Drones and Drone Components:
1. The scheme offers incentives calculated on the gross revenue of the company, completely disregarding domestic value addition.
2. The incentive rate for drones tapers down significantly every year, starting from 20% in the first year to 5% in the third year.
3. The scheme is implemented by the Ministry of Defence exclusively for military drone manufacturers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because the incentive is explicitly based on 'Value Addition' (Sales minus purchase of eligible inputs), not gross revenue. Statement 2 is incorrect because the scheme exceptionally maintains a constant incentive rate of 20% on value addition for all three years. Statement 3 is incorrect because the scheme is administered by the Ministry of Civil Aviation and covers civilian/commercial drones as well.
Consider the following statements regarding 'Bhashini' and its relation to the Indian startup ecosystem:
1. Bhashini is a scheme providing direct financial subsidies to startups that translate their mobile apps into English.
2. Only startups that have already achieved unicorn status are legally permitted to use the Bhashini APIs.
3. Bhashini is administered by the Ministry of Corporate Affairs to track startup compliance in regional languages.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Bhashini is the National Language Translation Mission launched by the Ministry of Electronics and IT (MeitY), not the Ministry of Corporate Affairs (Statement 3). It aims to provide open-source AI datasets and APIs for Indian languages to startups and developers to build vernacular digital solutions, not English (Statement 1). It is an open ecosystem available to all developers, MSMEs, and startups, not restricted to unicorns (Statement 2).
Consider the following statements regarding Intellectual Property Rights (IPR) benefits for DPIIT-recognized startups:
1. Recognized startups are provided an 80% rebate in statutory fees for filing patent applications compared to established corporate entities.
2. The Scheme for Facilitating Startups Intellectual Property Protection (SIPP) assists startups by empaneling facilitators whose professional fees are borne by the government.
3. Under the updated patent rules, recognized startups can avail the facility of expedited examination of their patent applications.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. To encourage innovation, the government provides an 80% rebate on patent filing fees, covers the professional fees of IP facilitators under the SIPP scheme, and allows startups to use the fast-track/expedited examination route for patent applications.
Consider the following statements regarding the PLI Scheme for Telecom and Networking Products:
1. The scheme is designed to offer a higher percentage rate of incentive for Micro, Small, and Medium Enterprises (MSMEs) compared to large non-MSME companies.
2. The scheme was subsequently amended to incorporate additional incentives for design-led manufacturing to build a robust 5G ecosystem.
3. Only companies with zero prior experience in telecom manufacturing are eligible to apply to foster new market entrants.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. MSMEs receive an extra 1% incentive over the base rate for large companies. The scheme was expanded in 2022 to include design-led manufacturing, specifically targeting 5G equipment. Statement 3 is incorrect because the scheme is open to both existing and new manufacturers, subject to meeting investment and sales thresholds.
Consider the following statements regarding the PLI Scheme for Textiles:
1. The scheme explicitly focuses on incentivizing traditional handloom and pure cotton textiles to support rural artisans.
2. There is no minimum investment requirement for claiming benefits under the PLI scheme for textiles.
3. The scheme is primarily administered by the Khadi and Village Industries Commission (KVIC).
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because the PLI for Textiles specifically targets Man-Made Fibre (MMF) apparel, MMF fabrics, and Technical Textiles, excluding traditional cotton and handloom to capture a larger share of the global synthetic market. Statement 2 is incorrect because the scheme requires strict minimum investments (e.g., Rs 100 crore or Rs 300 crore) to be eligible. Statement 3 is incorrect because it is administered by the Ministry of Textiles, not KVIC.
Consider the following statements regarding the structure and execution of PLI schemes:
1. All 14 PLI schemes share identical incentive rates, base years, and operational durations to ensure administrative uniformity.
2. The PLI incentives are disbursed immediately to the companies upon the signing of the Memorandum of Understanding (MoU), before any actual production occurs.
3. The World Trade Organization (WTO) officially prohibits India from implementing the PLI scheme, and all disbursements have been legally suspended since 2023.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because PLI schemes have different base years, incentive rates, and tenures depending on the sector's specific needs. Statement 2 is incorrect because PLI disbursements are strictly post-performance, given only after verifying incremental investment and incremental sales. Statement 3 is incorrect; the schemes are active, disbursements are ongoing, and they are designed to be WTO-compliant.
Consider the following statements regarding the 'Startup India Hub':
1. The Startup India Hub strictly functions as a physical office in New Delhi where founders must manually submit paper applications for government schemes.
2. It charges a mandatory monthly subscription fee for startups to access government incubation schemes.
3. Foreign citizens are entirely barred from accessing or utilizing any resources on the Startup India Hub platform.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because the Startup India Hub is a comprehensive online platform acting as a single-point contact for the entire ecosystem. Statement 2 is incorrect because access to the Hub and its resources is completely free. Statement 3 is incorrect because the Hub provides resources for global investors, NRIs, and foreign entrepreneurs interested in the Indian market.
Consider the following statements regarding the PLI Scheme for Specialty Steel:
1. The scheme targets the manufacturing of specialty steel grades like coated/plated steel products, high-strength steel, and electrical steel.
2. It aims to reduce India's import dependence on high-end steel required for strategic sectors like defense, capital goods, and automobiles.
3. Only Public Sector Undertakings (PSUs) like SAIL and RINL are permitted to apply for incentives under this specific PLI scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The scheme targets value-added specialty steel to substitute imports in strategic sectors. Statement 3 is incorrect because the scheme is open to both private and public sector companies, and major private steelmakers have actively participated and signed MoUs under the scheme.
Consider the following statements regarding the PLI Scheme for Telecom and Networking Products:
1. The scheme provides financial incentives to boost domestic manufacturing and attract investments in the telecom and networking products value chain.
2. The scheme structure provides an additional incentive rate for Micro, Small and Medium Enterprises (MSMEs) compared to large corporations.
3. The scheme was subsequently amended to include an additional incentive for design-led manufacturing to build a strong ecosystem for 5G products.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The telecom PLI scheme boosts domestic production, explicitly provides higher incentive percentages for MSMEs (e.g., 7% vs 4% base rate for large companies), and was amended to introduce a design-led manufacturing component specifically to capture the 5G hardware ecosystem.
Consider the following statements regarding the PLI Scheme for Drones and Drone Components:
1. The scheme provides a highly attractive incentive set at a constant 20% of the value addition made by the manufacturer.
2. The PLI benefit is restricted exclusively to companies that export 100% of their domestically manufactured drones.
3. The Ministry of Defence is the nodal ministry directly implementing this PLI scheme for civil and commercial drones.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The Drone PLI scheme uniquely offered a constant 20% incentive on value addition for three years, an exception to other PLI schemes where rates taper down. Statement 2 is incorrect because domestic sales also qualify for the incentives. Statement 3 is incorrect because the Ministry of Civil Aviation is the nodal ministry for this scheme.
Consider the following statements regarding the Fund of Funds for Startups (FFS):
1. The FFS does not invest directly into startups but provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds.
2. The operational and managerial responsibility for the FFS lies with the Small Industries Development Bank of India (SIDBI).
3. The initial corpus of the FFS is solely raised through public donations and foreign NGO grants.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The FFS operates as an anchor investor, providing capital to SEBI-registered AIFs, which then invest in startups. SIDBI manages the fund. Statement 3 is incorrect because the FFS was established with a corpus of Rs 10,000 crore directly funded by the Government of India, not through public donations or NGO grants.
Consider the following statements regarding the PLI Scheme for White Goods:
1. The PLI scheme for White Goods strictly covers the domestic manufacturing of Air Conditioners and LED Lights.
2. Incentives are provided solely for the assembly of imported components into final products without any local manufacturing.
3. The scheme allows companies to claim incentives without needing to meet any specific minimum incremental investment thresholds.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The White Goods PLI applies to ACs and LED lights. Statement 2 is incorrect because the scheme aims to deepen sectoral value chains; mere assembly of imported completely knocked down (CKD) kits does not qualify for incentives. Statement 3 is incorrect because claiming PLI benefits requires meeting strict pre-defined incremental investment and incremental sales thresholds.
Consider the following statements regarding 'Angel Tax' in the context of Indian startups:
1. Angel tax is an income tax levied on unlisted companies when they issue shares to an investor at a price higher than their fair market value.
2. Prior to its abolition in the Union Budget 2024-25, DPIIT-recognized startups fulfilling specific criteria were exempt from Angel Tax.
3. The tax was originally introduced in the Income Tax Act under Section 56(2)(viib) primarily as a measure to curb money laundering.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. Angel tax was introduced under Section 56(2)(viib) of the IT Act in 2012 to prevent money laundering through the issuance of shares at a premium. DPIIT-recognized startups enjoyed exemptions from this tax to facilitate early-stage funding, and the tax was completely abolished in the 2024-25 Budget.
Consider the following statements regarding the PLI Scheme for High-Efficiency Solar PV Modules:
1. The scheme incentivizes the rapid import of fully assembled solar panels to meet India's renewable energy targets by 2030.
2. Polysilicon manufacturing is strictly excluded from the scope of this PLI scheme to focus only on final panel assembly.
3. The incentives are calculated inversely, where manufacturers receive higher financial incentives for producing lower efficiency modules to cater to rural markets.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because the scheme incentivizes *domestic manufacturing* to reduce import dependence, not importing. Statement 2 is incorrect because the scheme strongly encourages backward integration, offering incentives for establishing comprehensive plants from polysilicon to wafers, cells, and modules. Statement 3 is incorrect because the incentive matrix rewards higher module efficiency and higher domestic value addition with higher incentive rates.
Consider the following statements regarding public procurement benefits for recognized Startups:
1. Recognized startups are exempted from the requirement of submitting an Earnest Money Deposit (EMD) when bidding for government tenders.
2. Government departments are legally prohibited from procuring goods and services from startups using the Government e-Marketplace (GeM) portal.
3. Startups must prove at least 15 years of prior experience to be eligible to bid on any defense sector contracts.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. Startups are exempt from EMD to ease participation in public procurement. Statement 2 is incorrect because the GeM portal has a dedicated 'Startup Runway' specifically to facilitate government procurement from startups. Statement 3 is incorrect because recognized startups are granted specific relaxations in 'prior turnover' and 'prior experience' criteria for government tenders.
Consider the following statements regarding the Credit Guarantee Scheme for Startups (CGSS):
1. The CGSS mandates that startups must provide at least 50% physical collateral to access the guaranteed loans.
2. The scheme is administered directly by the Reserve Bank of India (RBI) through its regional offices.
3. Only startups working exclusively in the agricultural sector are eligible to apply for this guarantee scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because the primary objective of the CGSS is to provide *collateral-free* debt funding to startups. Statement 2 is incorrect because the scheme is operated by the National Credit Guarantee Trustee Company Ltd (NCGTC), not the RBI. Statement 3 is incorrect because the scheme covers DPIIT-recognized startups across all eligible sectors, not just agriculture.
Consider the following statements regarding the GENESIS platform:
1. The 'Gen-Next Support for Innovative Startups' (GENESIS) platform was launched by MeitY to discover and promote deep-tech innovation in Tier-II and Tier-III cities.
2. GENESIS restricts its financial funding solely to startups operating within the defense and aerospace manufacturing sectors.
3. The platform operates as a fully autonomous statutory body established by an Act of Parliament.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. GENESIS was launched by the Ministry of Electronics and Information Technology (MeitY) to foster tech innovation in smaller cities. Statement 2 is incorrect because it supports a wide range of tech startups, not just defense. Statement 3 is incorrect because it is a programmatic initiative by MeitY, not an autonomous statutory body created by an Act of Parliament.
Consider the following statements regarding the PLI Scheme for Pharmaceuticals:
1. The scheme aims to enhance India's manufacturing capabilities by increasing investment in the production of Key Starting Materials (KSMs) and Active Pharmaceutical Ingredients (APIs).
2. The entire financial outlay for the Pharmaceuticals PLI scheme is provided collaboratively by state governments.
3. Under this scheme, only foreign multinational pharmaceutical companies are eligible to receive production-linked incentives.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The scheme reduces import dependence on critical bulk drugs (KSMs/APIs). Statement 2 is incorrect because it is a Central Sector Scheme funded entirely by the Union Government. Statement 3 is incorrect because domestic companies heavily participate and are major beneficiaries of the scheme.
Consider the following statements regarding the DPIIT criteria for an entity to be recognized as a 'Startup':
1. A startup's turnover for any financial year since its incorporation should not have exceeded Rs 100 crore.
2. The entity must be incorporated as a private limited company, a registered partnership firm, or a limited liability partnership (LLP).
3. A sole proprietorship firm is fully eligible to apply for and be recognized as a startup under DPIIT rules.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The DPIIT notification limits turnover to Rs 100 crore and restricts eligible entity types to Private Limited Companies, Registered Partnerships, and LLPs. Statement 3 is incorrect because sole proprietorships are not eligible for startup recognition under the DPIIT criteria.
Consider the following statements regarding the Production Linked Incentive (PLI) Scheme:
1. The PLI scheme provides incentives to companies calculated on the basis of incremental sales from products manufactured in domestic units.
2. The PLI scheme is completely funded and administered by the World Bank to boost developing economies.
3. The scheme was initially launched for all 14 target sectors simultaneously in a single phase in early 2020.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The PLI scheme incentivizes incremental sales of domestically manufactured goods. Statement 2 is incorrect because it is a Central Sector Scheme funded entirely by the Government of India. Statement 3 is incorrect because it was initially launched for 3 sectors (mobile/electronics, pharma APIs, and medical devices) in March 2020, and later expanded to 14 sectors.
Consider the following statements regarding the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage:
1. The scheme aims to establish local manufacturing capacities for Advanced Chemistry Cell (ACC) batteries to reduce import dependence.
2. Beneficiary manufacturing firms must ensure a mandatory minimum domestic value addition to qualify for the production-linked incentives.
3. The initiative is strategically aligned with India's broader push towards electric mobility and the integration of renewable energy.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The National Programme on ACC Battery Storage aims to achieve 50 GWh of ACC and 5 GWh of "Niche" ACC manufacturing capacity. It requires manufacturers to commit to setting up an ACC facility and achieving a minimum domestic value addition. It is a critical component for EV adoption and renewable energy storage.
Consider the following statements regarding the MAARG Portal:
1. MAARG stands for Mentorship, Advisory, Assistance, Resilience and Growth.
2. It is a one-stop national platform to facilitate mentorship for startups across diverse sectors, functions, and geographies.
3. The portal allows registered mentors to connect with startups to provide guidance on scaling, business strategy, and networking.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. Launched by DPIIT, the MAARG portal is the National Mentorship Platform. It matches startups with mentors (industry leaders, investors, academicians) to provide strategic guidance, assistance, and resilience support.
Consider the following statements regarding the PLI Scheme for IT Hardware:
1. The scheme covers the domestic manufacturing of laptops, tablets, all-in-one PCs, and servers.
2. The scheme is open exclusively to foreign multinational companies and strictly prohibits domestic Indian manufacturers from participating.
3. Incentives under this scheme are calculated based on the total number of new employees hired rather than incremental sales.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The PLI for IT Hardware covers laptops, tablets, AIO PCs, and servers. Statement 2 is incorrect because the scheme has specific categories and target segments for both global companies and domestic companies. Statement 3 is incorrect because the incentives are linked to incremental sales of domestically manufactured goods over a base year, not the number of employees hired.
Consider the following statements regarding the Fund of Funds for Startups (FFS):
1. The Fund of Funds for Startups (FFS) is operated and managed by the Small Industries Development Bank of India (SIDBI).
2. The FFS directly invests capital into early-stage startups to provide them with crucial seed funding.
3. The scheme was established with a total corpus of Rs 10,000 crore to boost the Indian startup ecosystem.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 3 are correct. The FFS is operated by SIDBI and has a corpus of Rs 10,000 crore. Statement 2 is incorrect because the FFS does not invest directly in startups. Instead, it provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, which in turn invest in startups.
Consider the following statements regarding public procurement benefits for recognized Startups:
1. DPIIT-recognized startups are exempt from the requirement of submitting an Earnest Money Deposit (EMD) when bidding for government tenders.
2. All recognized startups are completely exempted from paying corporate income tax for the first 15 years of their operation.
3. Government departments are mandated to relax the criteria of 'prior turnover' and 'prior experience' for recognized startups in public procurement.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 3 are correct. Under the Startup India initiative, recognized startups get EMD exemptions and relaxations in prior experience/turnover criteria for government tenders. Statement 2 is incorrect because the income tax exemption (under Section 80-IAC) is available for 3 consecutive years out of the first 10 years of incorporation, subject to inter-ministerial board approval, not 15 years.
Consider the following statements regarding the PLI Scheme for Automobile and Auto Components:
1. The scheme specifically incentivizes the manufacturing of Advanced Automotive Technology (AAT) products.
2. It is designed to overcome cost disabilities and build a robust, localized supply chain for Electric Vehicles (EVs) in India.
3. Conventional internal combustion engine (ICE) vehicles using petrol and diesel are the primary beneficiaries of this specific PLI scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The scheme targets Advanced Automotive Technology (AAT) vehicles and components, aiming to catalyze the transition to EVs and hydrogen fuel cell vehicles. Statement 3 is incorrect because conventional ICE vehicles (petrol/diesel) are excluded from the incentives under this scheme to prioritize green mobility.
Consider the following statements regarding the PLI Scheme for Large Scale Electronics Manufacturing:
1. It offers a production-linked incentive ranging from 4% to 6% on incremental sales of goods manufactured in India over a base year.
2. The scheme specifically targets the manufacturing of mobile phones and specified electronic components.
3. Both domestic and foreign companies are eligible to apply under this scheme, subject to different incremental investment and sales thresholds.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The PLI for Large Scale Electronics Manufacturing provides incentives of 4-6% on incremental sales, targets mobile phones and components, and has tailored investment/sales criteria for both global champions (foreign firms) and domestic companies.
Consider the following statements regarding the Semicon India Program (Semiconductor PLI):
1. The Semicon India program aims to develop the semiconductor and display manufacturing ecosystem to establish India as a global electronics hub.
2. It provides fiscal support of up to 50% of the project cost uniformly for setting up Semiconductor Fabs and Display Fabs in India.
3. The scheme is administered directly under the Ministry of New and Renewable Energy to integrate solar chip manufacturing.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The Semicon India program is a massive initiative offering 50% pari-passu fiscal support for setting up semiconductor and display fabs. Statement 3 is incorrect because the scheme is administered by the India Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology (MeitY), not the Ministry of New and Renewable Energy.
Consider the following statements regarding the 'Startup India Hub':
1. It serves as a single-point system of contact for the entire startup ecosystem to enable knowledge exchange and access to funding.
2. The Hub facilitates queries and handholds startups through their lifecycle, including navigating the process for obtaining DPIIT recognition.
3. It actively assists startups in participating in various international and domestic events, exhibitions, and pitch programs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The Startup India Hub is the central nodal platform for the initiative. It acts as a one-stop-shop for networking, handles thousands of queries, assists with DPIIT registration, and facilitates global market access and event participation for Indian startups.
Consider the following statements regarding the overarching objectives of the Production Linked Incentive (PLI) Scheme:
1. The PLI scheme was primarily designed to scale up domestic manufacturing capability and promote exports.
2. State governments are the sole funding and administrative agencies for all PLI schemes implemented in India.
3. The scheme requires participating companies to permanently hand over 50% of their equity to the Central Government.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The PLI scheme aims to boost domestic manufacturing and reduce import dependence. Statement 2 is incorrect because the PLI schemes are Central Sector Schemes funded and administered by the Union Government across various ministries. Statement 3 is incorrect because the scheme offers financial incentives based on incremental sales and investment, without any requirement for companies to surrender equity to the government.
Consider the following statements regarding the National Startup Advisory Council (NSAC):
1. The NSAC was constituted to advise the Government of India on measures needed to build a strong ecosystem for nurturing innovation.
2. The Council is chaired by the Union Minister for Commerce & Industry.
3. It includes ex-officio members from various government ministries and departments alongside non-official industry experts.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The NSAC advises the government on fostering startup growth. It is chaired by the Minister of Commerce and Industry and features a mix of ex-officio government members and nominated non-official members (successful founders, investors, and veterans).
Consider the following statements regarding 'Unicorn' startups:
1. A unicorn is defined by DPIIT as any registered startup that employs more than 10,000 people domestically.
2. India is currently the undisputed global leader, possessing the highest number of unicorn startups in the world.
3. Startups that attain unicorn status are immediately nationalized by the Government of India to protect economic interests.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because a 'unicorn' is a universally accepted financial term for a privately held startup valued at over US$ 1 billion, irrespective of employee count. Statement 2 is incorrect because the USA and China hold the first and second ranks respectively; India ranks third. Statement 3 is incorrect because unicorns remain private, independent companies; they are not nationalized.
Consider the following statements regarding Incubators and Accelerators in the startup ecosystem:
1. Business incubators typically help early-stage entrepreneurs refine their ideas, build prototypes, and set up their initial company structure.
2. Accelerators are primarily statutory government bodies tasked with regulating and auditing the taxation of startup companies.
3. The Atal Incubation Centres (AICs) are established directly under the Ministry of Finance to monitor startup revenues.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. Incubators nurture early-stage startups with workspace, mentorship, and resources. Statement 2 is incorrect because accelerators are private or public programs that help existing startups scale quickly through intense, time-limited mentorship and funding, not statutory tax regulatory bodies. Statement 3 is incorrect because Atal Incubation Centres are established by the Atal Innovation Mission (AIM) under NITI Aayog, not the Ministry of Finance.
Consider the following statements regarding the Credit Guarantee Scheme for Startups (CGSS):
1. The scheme provides credit guarantees to loans extended by Scheduled Commercial Banks and Non-Banking Financial Companies (NBFCs) to DPIIT-recognized startups.
2. The National Credit Guarantee Trustee Company Ltd (NCGTC) operates as the operating agency to manage the scheme.
3. The primary objective of the scheme is to provide collateral-free debt funding to startups, mitigating the risks for lenders.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The CGSS facilitates collateral-free loans for startups by providing a guarantee to lenders (Member Institutions like banks and NBFCs). It is operated and managed by the NCGTC.
Consider the following statements regarding the PLI Scheme for Automobile and Auto Components:
1. The scheme heavily incentivizes the manufacturing of Advanced Automotive Technology (AAT) products, including electric vehicles and their components.
2. The scheme is open exclusively to existing automotive companies, completely barring new non-automotive investors from participating.
3. Internal Combustion Engine (ICE) vehicles using conventional fossil fuels receive the highest incentive multiplier rates under this specific scheme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Only statement 1 is correct. The scheme focuses on zero-emission and Advanced Automotive Technology (AAT) vehicles. Statement 2 is incorrect because the scheme is open to new non-automotive investors (Champion OEM Incentive Scheme). Statement 3 is incorrect because conventional ICE vehicles are excluded from receiving incentives under this specific PLI, which aims to catalyze the transition to EVs and deep tech.
Consider the following statements regarding the Atal Innovation Mission (AIM):
1. AIM is an initiative operated directly under the Ministry of Commerce and Industry to register new companies.
2. Atal Tinkering Labs (ATLs) are established in IITs and IIMs exclusively to promote post-doctoral research in quantum mechanics.
3. AIM was dissolved and completely replaced by the Startup India initiative in 2020 to streamline funding.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect because AIM is a flagship initiative set up by NITI Aayog, not the Ministry of Commerce and Industry. Statement 2 is incorrect because Atal Tinkering Labs (ATLs) are established in schools (for students in classes 6-12) to foster curiosity and innovation early on, not in IITs/IIMs for post-doctoral research. Statement 3 is incorrect because AIM and Startup India are active, complementary initiatives that co-exist.
Consider the following statements regarding the Section 80-IAC Tax Exemption for Startups:
1. It allows eligible recognized startups to claim a 100% tax holiday on profits for 3 consecutive financial years.
2. The tax holiday must be claimed within the first 10 years of the startup's incorporation.
3. All DPIIT-recognized startups automatically receive this tax exemption without requiring any further regulatory approvals.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. Startups can claim a 100% deduction of profits for 3 consecutive years out of their first 10 years. Statement 3 is incorrect because mere DPIIT recognition is not enough; the startup must specifically apply to and be granted a certificate by the Inter-Ministerial Board (IMB) to claim this exemption.
Consider the following statements regarding the National Startup Advisory Council (NSAC):
1. The NSAC is chaired by the Union Minister of Commerce and Industry.
2. It includes non-official members representing various stakeholders, such as successful startup founders and veterans who have scaled companies in India.
3. The NSAC possesses statutory powers to directly allocate sovereign funding to unicorn startups from the Consolidated Fund of India.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statements 1 and 2 are correct. The NSAC is chaired by the Minister of Commerce and Industry and comprises non-official members like founders, investors, and ecosystem enablers. Statement 3 is incorrect because the NSAC is purely an advisory body meant to advise the Government on measures needed to build a strong ecosystem; it has no statutory powers to allocate funding.
Consider the following statements regarding the PLI Scheme for Food Processing Industry (PLISFPI):
1. A primary objective of the scheme is to support the creation of global food manufacturing champions originating from India.
2. The scheme incentivizes the manufacturing of specific food product segments like ready-to-cook/ready-to-eat foods, processed fruits, vegetables, and marine products.
3. It uniquely includes a component offering financial grants for branding and marketing activities abroad to promote Indian food brands globally.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: All three statements are correct. The PLISFPI focuses on supporting Indian brands to become global champions. It targets segments like RTE/RTC, marine products, and mozzarella cheese. Furthermore, it has a dedicated component (Component 2) that provides grants for in-store branding, shelf space renting, and marketing of Indian brands in international markets.
Consider the following statements regarding government initiatives for youth and innovation:
1. The 'YUVA Innovator Scheme' is managed by the Securities and Exchange Board of India (SEBI) to regulate algorithmic stock market trading by young startups.
2. To access any central government startup grants, entities must mandatorily list on the BSE SME exchange within one year of incorporation.
3. The Atal Innovation Mission (AIM) was dissolved and completely replaced by the Startup India initiative in 2021.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: None of the statements are correct. Statement 1 is incorrect; SEBI does not run a YUVA Innovator Scheme for algo-trading (YUVA generally relates to author mentorship by the Ministry of Education). Statement 2 is incorrect; there is no mandatory listing requirement for startups to access government grants. Statement 3 is incorrect; AIM (under NITI Aayog) and Startup India (under DPIIT) co-exist and serve complementary roles in the ecosystem.