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  9. Q46

JKPSC KAS 2023 · Question 46 of 100

Consider the following statements regarding the Inverted duty structure. 1. Inverted duty structure is where the import duty on finished goods is low compared to the import duty on raw materials used in producing such finished goods. 2. It encourages domestic manufacturing by making it more competitive against imported finished goods. The correct statement/s is/are:

Indian Economy

  1. A1 onlyCorrect
  2. B2 only
  3. CBoth
  4. DNeither 1 nor 2

Answer: A. 1 only

Explanation

An inverted duty structure means lower duty on finished goods than on their raw-material inputs (1 correct) — which discourages domestic manufacturing and encourages imports, so statement 2 is wrong.

Source: JKPSC KAS Prelims 2023 (Set A) via TheExamPillar

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