Industries and Industrial policies

Statement 1 is correct. The monthly Index of Eight Core Industries (ICI) is a production volume index, measuring monthly changes in the output of industry. ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
Statement 2 is correct. It is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
# The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
# India’s eight core industrial sectors contracted by 8.5% in August compared to Au­gust 2019, marking the sixth month in a row of shrinking output.

Statement1 is incorrect. The purchasing managers’ index (PMI) is an economic indicator that surveys purchasing managers at businesses that make up a given sector. The most common PMI surveys are the manufacturing PMI and the services PMI.
It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
The most common elements include: New orders, Factory output, Employment, Suppliers’ delivery times and Stocks of purchases.
The most common answers include: Improvement, No change and Deterioration.
Statement 2 is correct. A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction. Higher the difference from this mid-point greater is the expansion or contraction.

Statement 1 is incorrect. The purchasing managers’ index (PMI) is an economic indicator that surveys purchasing managers at businesses that make up a given sector. The most common PMI surveys are the manufacturing PMI and the services PMI.
The purchasing managers’ index consists of several different surveys that are compiled into a single numerical result depending on one of several possible answers to each question.
The most common elements include: New orders, Factory output, Employment, Suppliers’ delivery times, Stocks of purchases.
The most common answers include: Improvement, No change, Deterioration.
Statement 2 is correct. The headline PMI is a number from 0 to 100. A PMI above 50 represents an expansion when compared with the previous month. A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change. The further away from 50 the greater the level of change.

Statement 1 is correct. The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.
Incentive: The Scheme extends an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year 2019-20.
Statement 2 is incorrect. The Scheme is only applicable for target segments namely mobile phones and specified electronic components.
Specified Electronic Components: SMT components, Discrete semiconductor devices including transistors, diodes, thyristors, etc., Passive components including resistors, capacitors, etc. for electronic applications, Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks, Sensors, transducers, actuators, crystals for electronic applications, System in Package (SIP), Micro or Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS), and Assembly, Testing, Marking and Packaging (ATMP) units.

The Quick Estimates of Index of Industrial Production (IIP) are released on 12th of every month (or previous working day if 12th is a holiday) with a six weeks lag and compiled with data received from source agencies, who in turn receive the data from the producing factories/ establishments.
Statement 1 is correct. The weightage of Manufacturing, Mining and Electricity production in overall Index of Industrial Production (IIP) is 77.63 per cent, 14.37 per cent and 7.99 per cent respectively.
Statement 2 is correct. There have been nine revision of base year of all-India IIP since the beginning of its dissemination with first being 1937. Currently base year for IIP calculations is 2011-12.

Option 1 is correct. Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.
Option 2 is correct. The The Ministry of Electronics and Information Technology had notified ‘Phased Manufacturing Programme for cellular mobile handsets and sub-assemblies/ parts thereof’ with the objective of substantially increasing the domestic value addition for establishment of arobust Cellular mobile handsets manufacturing eco-system in India. It promotes domestic production of mobile phones by providing tax relief and other incentives on components and accessories used for the devices.

Annual Survey of Industries (ASI) is conducted by National Statistical Office (NSO), Ministry of Statistics & Programme Implementation. ASI is principal source of industrial statistics in India.
The Annual Survey of Industries (ASI) is the principal source of industrial statistics in India. It provides statistical information to assess and evaluate, objectively and realistically, the changes in the growth, composition and structure of organized manufacturing sector comprising activities related to manufacturing processes, repair services, gas and water supply and cold storage.
From ASI 2010-11 onwards, the survey is being conducted annually under the statutory provisions of the Collection of Statistics (COS) Act, 2008.

A regulatory sandbox (RS) usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of the testing.
It allows the regulator, the innovators, the financial service providers (as potential deployers of the technology) and the customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks.

Both statements are correct.
The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
The Scheme aims at mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crores in the form of a fully guaranteed emergency credit line.
Under the Scheme, 100% guarantee coverage is provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. three lakh crores to eligible MSMEs and interested MUDRA borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.
The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs).

Statement 1 is incorrect. The 2019 rankings are the 4th edition of Business Reform Action Plan (BRAP) ranking of states.
Ranking of States based on the implementation of Business Reform Action Plan started in the year 2015. Till date, State Rankings have been released for the years 2015, 2016 and 2017-18.
The Business Reform Action Plan 2018-19 includes 180 reform points covering 12 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, etc.
The larger objective of attracting investments and increasing Ease of Doing Business in each State was sought to be achieved by introducing an element of healthy competition through a system of ranking states based on their performance in the implementation of Business Reform Action Plan.
Statement 2 is correct. The top ten states under State Reform Action Plan 2019 are:
Andhra Pradesh, Uttar Pradesh, Telangana, Madhya Pradesh, Jharkhand, Chhattisgarh, Himachal Pradesh, Rajasthan, West Bengal and Gujarat.

Statement 1 is correct. Doing Business is a World Bank Group flagship publication, it is a series of annual studies measuring the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies—from Afghanistan to Zimbabwe—and over time.
Statement 2 is correct. Doing Business covers 12 areas of business regulation. Ten of these areas—starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
Doing Business also measures regulation on employing workers and contracting with the government, which are not included in the ease of doing business score and ranking.
# The World Bank has paused the publication of its ‘Doing Business’ report because of statistical irregularities.

Statement 1 is correct. Post liberalization in the early nineties there was a paradigm shift from a regime of command and control to a facilitating regime with increased reliance on market forces.
It also led to the enactment of the Competition Act 2002 and establishment of the Competition Commission of India to lay the foundation of a competition ecosystem in the country. It replaced its predecessor the Monopolies and Restrictive Trade Practices Act, 1969.
Statement 2 is correct. The Commission functions as a market regulator by preventing and regulating anti-competitive practices in the country. It also carries out advisory and advocacy functions. The objectives of the Commission as given under Section 18 of the Act are:
–to prevent practices having adverse effect on competition,
–to promote and sustain competition in markets,
–to protect the interests of consumers, and
–to ensure freedom of trade carried on by other participants in markets in India.

The Ministry of Tourism brings out an Annual Publication called “India Tourism Statistics” every year giving details of international and domestic tourism, including details about the classified hotels etc. In addition, “Tourism Statistics at a Glance” is also brought out, giving updated and latest key statistical data.
Statement 1 is correct. Uttar Pradesh has drawn the highest number of domestic tourists in 2019, leaving Tamil Nadu behind. Last year UP was at number two.

Statement 2 is incorrect. In the purpose-wise Foreign Tourist Arrivals (FTAs) in India in 2019, Leisure Holiday and recreation topped followed by Business and Professionals visitors.

The monthly Index of Eight Core Industries (ICI) is a production volume index. ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
It is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
Statement 1 is incorrect. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
Statement 2 is correct. Refinery Products has highest weightage in Index of Eight Core Industries (ICI).

Emerging industry that is gaining favor with investors and is expected to be an engine of future economic growth through steadily rising generation of employment and profits is referred colloquially as Sunrise Industry.
A sunrise industry is a new business or business sector showing potential for substantial and rapid growth.
Notable characteristics of sunrise industries include high-growth rates and a lot of start-ups and venture capital funding.

Statement 1 is incorrect. Union Ministry of Electronics and Information Technology recently launched “Chunauti”- Next Generation Startup Challenge Contest to further boost startups and software products with special focus on Tier-II towns of India.
Statement 2 is correct. It aims to identify around 300 startups working in identified areas such as Edu-Tech, Agri-Tech, Logistics & Transportation Management, Infrastructure & Remote monitoring, Medical Healthcare, Jobs & Skilling, Linguistic tools & technologies etc. and provide them seed fund of upto Rs. 25 Lakh and other facilities.
The startups selected through Chunauti will be provided various kinds of support from the Government through Software Technology Parks of India centers across India. They will get incubation facilities, mentorship, security testing facilities, access to venture capitalist funding, industry connect as well as advisories in legal, Human Resource (HR), IPR and Patent matters.
The startups will also be provided cloud credits from leading cloud service providers.

Steel production and consumption of India.

Statement 1 is incorrect: India stood at second position in the production of crude

steel. It is also the third largest consumer of the finished steel after China and USA.

Statement 2 is incorrect: The per capita consumption of steel in India is 74.1 kg during

2018-19. The per capita consumption was increased in last ten years except 2013-14.

In CY 2019, the world crude steel production reached 1870 million tonnes (mt) and showed a growth of 3.4% over CY 2018.
• China remained world’s largest crude steel producer in same period (996 mt) followed by India (111mt), Japan (99mt) and the USA (88mt).
• Per capita finished steel consumption in 2018 was 224.5 kg for world and 590.1 kg for China (Source: World Steel Association).
• The same for India was 73.3 kg in 2018 (Source: JPC) and 75.7 kg (provisional) in 2019.The per capita consumption of India in 2018-19 was 74.1 kg and that in 2019-20 was 74.6 kg (prov.)
The Indian steel industry has entered into a new development stage, post de-regulation, riding high on the resurgent economy and rising demand for steel.
• Rapid rise in production has resulted in India becoming the 2nd largest producer of crude steel during 2018 and 2019 (prov), from its 3rd largest status in 2017.
• The country was also the largest producer of Sponge Iron or DRI in the world and the 3rd largest finished steel consumer in the world after China & USA in 2019 (prov.)

Startups drive economic growth, create employment and foster a culture of
innovation. In order to promote innovation and entrepreneurship among enterprising youth, the Hon’ble Prime Minister of India had announced the “Startup India, Stand-up India”
initiative on August 15, 2015.
Statement 1 is correct: Maharashtra, Karnataka and Delhi are the top three
performers in terms of State-wise distribution of recognized startups in India.

Statement 2 is incorrect: As per industry-wide distribution of recognized startups, IT

Services accounted for 13.9 per cent followed by Healthcare and Life Sciences (8.3 per cent)

and education (7.0 per cent).

Statement 1 is incorrect: The chart clearly establishes that India has the 3rd largest
entrepreneurship ecosystem in the world.
Statement 2 is correct: Literacy, education, physical infrastructure are the key areas
that will foster entrepreneurship and thereby job creation and wealth creation.

Annual Survey of Industries (ASI) is conducted by National Sample Survey

Office (NSSO). ASI is principal source of industrial statistics in India. It does not cover unorganized or unregistered or informal sector enterprises.

• ASI, an annual event, not only facilitates suitable data collection based on appropriate sampling techniques but also ensures timely dissemination of statistical information to asses and evaluates the dynamics in composition, growth and structure of organized manufacturing sector.
• The structure and function of the industrial sector is an important perspective of Indian Economy. It is imperative for industries to grow both qualitatively and quantitatively to boost the economy.
• The well-being of the industries depends truly on the formulation and promotion of industrial policies framed by the policy makers.
• To frame suitable industrial policies the policy makers need to be aware about the quantified aspect of the existing scenarios in the industries in the country.
• This is where the Annual Survey of Industries (ASI) is conducted by National Sample

Survey Office, Government of India.

Asian Development Bank (ADB) had prepared Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).

 The Andhra Pradesh government has mooted development of nodes in Visakhapatnam, Machilipatnam, Donakonda and on the Yerpedu-Srikalahasti stretch.

 The VCIC has been identified for development in the first phase of Kolkata-Kanyakumari East Coast Economic Corridor.

 The ADB, which prepared the concept paper, has agreed to give $500 million towards multi-tranch financing facility and policy-based loan worth $125 million.

The Corporate Affairs Ministry (MCA) has come up with the ‘Companies Fresh Start Scheme 2020’ to enable companies make good of any filing-related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.

 To provide a similar facility to Limited Liability Partnerships (LLPs), the MCA has also revised the ‘LLP Settlement Scheme, 2020’, which is in vogue today.

 The Fresh Start scheme and modified LLP Settlement Scheme reduce compliance burden during the unprecedented public health situation caused by Covid-19.

 The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from April 1 and ending on September 30.

 The Schemes, apart from giving longer timelines for corporate to comply with various filing requirements under the Companies Act 2013 and LLP Act, 2008, significantly reduce the related financial burden on them, especially for those with long standing defaults, thereby giving them an opportunity to make a “fresh start”.

 Both the Schemes also contain provision for giving immunity from penal proceedings, including against imposition of penalties for late submissions and also provide additional time for filing appeals before the concerned Regional Directors against imposition of penalties, if already imposed.

Both statements are correct.

The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a

specific response to the unprecedented situation caused by COVID-19 and the consequent

lockdown, which has severely impacted manufacturing and other activities in the MSME

sector.

The Scheme aims at mitigating the economic distress being faced by MSMEs by providing

them additional funding of up to Rs. 3 lakh crores in the form of a fully guaranteed

emergency credit line.

Under the Scheme, 100% guarantee coverage is provided by National Credit Guarantee

Trustee Company Limited (NCGTC) for additional funding of up to Rs. three lakh crores to

eligible MSMEs and interested MUDRA borrowers, in the form of a Guaranteed Emergency

Credit Line (GECL) facility.

The GECL is a loan for which 100% guarantee would be provided by National Credit

Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs).

Statement 1 is correct. The Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.

Incentive: The Scheme extends an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year 2019-20.

Statement 2 is incorrect. The Scheme is only applicable for target segments namely mobile phones and specified electronic components.

Specified Electronic Components: SMT components, Discrete semiconductor devices including transistors, diodes, thyristors, etc., Passive components including resistors, capacitors, etc. for electronic applications, Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks, Sensors, transducers, actuators, crystals for electronic applications, System in Package (SIP), Micro or Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS), and Assembly, Testing, Marking and Packaging (ATMP) units.

Option 1 is correct. Production Linked Incentive Scheme (PLI) for Large
Scale Electronics Manufacturing offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

Option 2 is correct. The The Ministry of Electronics and Information Technology had notified ‘Phased Manufacturing Programme for cellular mobile handsets and subassemblies/ parts thereof’ with the objective of substantially increasing the domestic value addition for establishment of a robust Cellular mobile handsets manufacturing ecosystem in India. It promotes domestic production of mobile phones by providing tax relief and other incentives on components and accessories used for the devices.

Both statements are correct.

The Leather Sector Skill Council (LSSC) recently announced the launch of Skill Certification
Assessment for Leather Employees (SCALE) India web platform and android app.

SCALE will help candidates in the skilling ecosystem to get assessed and certified on their knowledge, skills and behaviour on a specific qualification pack.
It also enables access to micro-learning modules for bridging the skill gaps that are identified and can be re-assessed and certified at the end of the learning on the specific qualification pack.
From an employer standpoint, the platform will serve as a job portal with access to a certified talent pool of candidates to hire from, leading to increase in productivity and profitability. Employers can share their skill gap requirements and check for suitable training modules available to bridge the skill gap of their workforce and raise training requests for short term/customised training that would be serviced by the LSSC.

# LSSC was set up as a non-profit organisation in 2012 as one of the key sector skill councils approved by National Skill Development Corporation (NSDC).

Force majeure is a common clause in contracts to remove liability for natural
and unavoidable catastrophes. It comes into play when unforeseeable circumstances that
prevent either party from fulfilling a contract.
The provisions of ‘Act of God’ also have similar effect. Generally, an “Act of God” is
understood to include only natural unforeseen circumstances, whereas force majeure
includes both naturally occurring events and events that occur due to human intervention.
However, both concepts elicit the same consequences in law.

Statement 1 is incorrect. The 2019 rankings are the 4th edition of Business
Reform Action Plan (BRAP) ranking of states.
Ranking of States based on the implementation of Business Reform Action Plan started in
the year 2015. Till date, State Rankings have been released for the years 2015, 2016 and
2017-18.
The Business Reform Action Plan 2018-19 includes 180 reform points covering 12
business regulatory areas such as Access to Information, Single Window System, Labour,
Environment, etc.
The larger objective of attracting investments and increasing Ease of Doing Business in
each State was sought to be achieved by introducing an element of healthy competition
through a system of ranking states based on their performance in the implementation of
Business Reform Action Plan.

Statement 2 is correct. The top ten states under State Reform Action Plan 2019 are:
Andhra Pradesh, Uttar Pradesh, Telangana, Madhya Pradesh, Jharkhand, Chhattisgarh,
Himachal Pradesh, Rajasthan, West Bengal and Gujarat.

Statement 1 is correct. Start-Up Village Entrepreneurship Programme
(SVEP) is implemented by Deendayal Antyodaya Yojana –National Rural Livelihoods
Mission (DAY-NRLM), Ministry of Rural Development, as a sub-scheme since 2016.
Activities under SVEP are designed to promote rural enterprises, one of the key areas is to
develop pool of community resource persons – enterprise promotion (CRP-EP) who are
local and support entrepreneurs setting-up rural enterprises.
Another key area is to promote the block resource center (BRC) in SVEP blocks, to
monitor and manage the community resource persons, appraise SVEP loan application and
acts as the repository of enterprise related information in the concern block.
Statement 2 is correct. SVEP promotes both individual and group enterprises, set-up and
promote enterprises majorly on manufacturing, trading and service sectors. The program
invested largely on building the capacities of the entrepreneurs to run the businesses
profitably based on the local demand and eco-system.

Statement 1 is correct. Recently the Department for Promotion of Industry
and Internal Trade (DPIIT) conducted the second edition of the States’ Startup Ranking
Exercise, with the key objective to foster competitiveness and propel States and Union
Territories to work proactively towards uplifting the startup ecosystem.
A National Report which highlights the vision, trajectory, methodology and the future
roadmap of the States Ranking Exercise has been released. A State Specific Report for each
of the 25 participating entities has also been released, containing a comprehensive analysis
of respective ecosystem, which highlights strengths and priority areas for future.
Statement 2 is correct. Gujarat is the ‘Best Performer’ state, while Karnataka and Kerala
are the ‘Top Performers’.

Statement 1 is correct. The Central Government has established the Central
Consumer Protection Authority as a body corporate in exercise of the powers conferred
by section 10 of the Consumer Protection Act, 2019.
Statement 2 is correct. CCPA will carry out the following functions:
-inquiring into violations of consumer rights, investigating and launching prosecution at the
appropriate forum;
-passing orders to recall goods or withdraw services that are hazardous, reimbursement of
the price paid, and discontinuation of the unfair trade practices, as defined in the Bill;
-issuing directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher
to either discontinue a false or misleading advertisement, or modify it;
-order discontinuation of unfair trade practices and misleading advertisements, impose
penalties on manufacturers/endorsers/publishers of misleading advertisements.

The Companies (Amendment) Bill, 2020 has been passed by the parliament
recently.
Statement 1 is correct. The Bill empowers the central government to allow certain classes
of public companies to list classes of securities (as may be prescribed) in foreign
jurisdictions.
Statement 2 is correct. Under the Companies Act, 2013, companies with net worth,
turnover or profits above a specified amount are required to constitute Corporate social
responsibility (CSR) Committees and spend 2% of their average net profits in the last three
financial years, towards its CSR policy.
The Bill exempts companies with a CSR liability of up to Rs 50 lakh a year from setting up
CSR Committees. Further, companies which spend any amount in excess of their CSR
obligation in a financial year can set off the excess amount towards their CSR obligations
in subsequent financial years.

Statement 1 is correct. Technical textiles are textiles materials and products manufactured primarily for technical performance and functional properties rather than aesthetic characteristics.

Technical Textiles products are divided into 12 broad categories (Agrotech, Buildtech, Clothtech, Geotech, Hometech, Indutech, Mobiltech, Meditech, Protech, Sportstech, Oekotech, Packtech) depending upon their application areas.

Statement 2 is incorrect. United States of America is the world’s largest producer and consumer of technical textiles having 23% share followed by Western Europe having 22 % share, China having 13% and Japan having 7% share.

India shares nearly 6% of world market size of 250 Billion USD. However, the annual average growth of the segment is 12%, as compared to 4% world average growth.

# Ministry of Textiles has invited proposals for constitution of a dedicated Export Promotion Council (EPC) for Technical Textiles.

# The National Technical Textiles Mission has a four year implementation period from FY 2020-21 to 2023-24. Constitution of an Export Promotion Council for Technical Textiles is part of one of the components of the National Technical Textiles Mission.

Statement 1 is correct. A consumer is defined under the Consumer Protection Act 2019 as a person who buys any good or avails a service for a consideration.  It does not include a person who obtains a good for resale or a good or service for commercial purpose.  It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

Statement 2 is correct. Central Consumer Protection Authority (CCPA) is to regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.

CCPA will carry out the following functions, including: (i) inquiring into violations of consumer rights, investigating and launching prosecution at the appropriate forum; (ii) passing orders to recall goods or withdraw services that are hazardous, reimbursement of the price paid, and discontinuation of the unfair trade practices, as defined in the Bill; (iii) issuing directions to the concerned trader/ manufacturer/ endorser/ advertiser/ publisher to either discontinue a false or misleading advertisement, or modify it; (iv) imposing penalties, and; (v) issuing safety notices to consumers against unsafe goods and services.

# The CCPA has referred the recent complaints of Honey adulteration to FSSAI.

The Consumer Protection Act 2019 aims at protecting and strengthening the rights of the consumers by establishing authorities, imposing strict liabilities and penalties on product manufacturers, electronic service providers, misleading advertisers, and by providing additional settlement of consumer disputes through mediation.

Article 2(42) of the act defines “service” as service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, telecom, boarding or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service.

Statement 1 is incorrect. First-ever National Startup Awards (‘NSA’) were concluded in October 2020, to recognize and reward outstanding startups and ecosystem enablers that are building innovative products or solutions and scalable enterprises, with high potential of employment generation or wealth creation, demonstrating measurable social impact.

Statement 2 is incorrect. It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce. Only DPIIT registered startup entities are eligible for participation.

The Consumer Protection Bill, 2019 was introduced in Lok Sabha by the Minister of Consumer Affairs, Food and Public Distribution, Mr. Ram Vilas Paswan on July 8, 2019. The Bill replaces the Consumer Protection Act, 1986. Key features of the Bill include:

 A consumer is defined as a person who buys any good or avails a service for a consideration. It does not include a person who obtains a good for resale or a good or service for commercial purpose. It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.

 Six consumer rights have been defined in the Bill, including the right to: (i) be protected against marketing of goods and services which are hazardous to life and property; (ii) be informed of the quality, quantity, potency, purity, standard and price of goods or services; (iii) be assured of access to a variety of goods or services at competitive prices; and (iv) seek redressal against unfair or restrictive trade practices.

 The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.

 The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement. In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.

 Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state, and national levels.

 Complaints against an unfair contract can be filed with only the State and National Appeals from a District CDRC will be heard by the State CDRC. Appeals from the State CDRC will be heard by the National CDRC. Final appeal will lie before the Supreme Court.