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Question

After the abolition of industrial licensing in India in 1991, _______ is one of the few industries for which it is mandatory to obtain an industrial license.

This question was previously asked in
RRB NTPC 2019 CBT 1 Question Paper (8-Mar-2021) (Shift 2)
The correct answer is
wine

India's Industrial Licensing Post-1991

Following India's economic liberalization in 1991, the government abolished the industrial licensing requirement for most industries. This reform aimed to boost industrial growth and ease of doing business.

Mandatory Licensing Exceptions

However, specific sectors were retained under mandatory licensing due to policy considerations such as public health, environmental impact, or social concerns. Among the options provided, the wine industry is an example of a sector that often requires specific licenses beyond the general industrial license, typically due to regulations concerning alcohol production and distribution.

The other industries listed, such as leather goods, beverages (in general), and food processing, generally do not require a mandatory industrial license under the post-1991 policy framework, although specific operational permits might still be necessary.

Analysis of Options

The question asks for an industry where obtaining an industrial license is still mandatory after the 1991 policy change. Based on regulatory practices:

  • Leather: Generally de-licensed.
  • Beverages: General category, mostly de-licensed, though specific types might have rules.
  • Wine: Requires specific licenses due to alcohol regulations.
  • Vegetable and food processing: Generally de-licensed.

Therefore, wine is the correct exception.

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