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

What is “quantitative easing”?

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

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is meant by “liquidity trap”?

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

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What is meant by “crowding out” in economics?

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What is the primary role of the Securities and Exchange Board of India (SEBI)?

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Which of the following causes demand-pull inflation?

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What does the term “national income” refer to?

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Which of the following is a feature of monopolistic competition?

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