Question

State Financial Corporations mainly give assistance to develop which of the following?

• A. Small and medium scale industries
• B. Agricultural farms
• C. Cotton industry
• D. Large scale industries

Answer 1

The Correct Option is A

The question asks which sector mainly receives assistance from State Financial Corporations. Let's analyze each option to understand the correct answer:

1. Small and medium scale industries: State Financial Corporations (SFCs) are primarily set up to provide financial aid to small and medium scale industries. These corporations aim to boost economic development and support entrepreneurial ventures that may not have easy access to finance from traditional banking institutions.
2. Agricultural farms: SFCs are not mainly focused on agriculture. While agriculture is crucial to the economy, specialized institutions like NABARD (National Bank for Agriculture and Rural Development) primarily handle agricultural finance.
3. Cotton industry: The cotton industry is a specific sector within the broader category of industries. Although some assistance may be given to cotton industries if they fit the criteria of small and medium enterprises, this is not the primary focus of SFCs.
4. Large scale industries: Large scale industries typically have access to extensive funding options and do not rely on SFCs, which are designed to support smaller businesses that face funding challenges.

Based on this analysis, the correct answer is: Small and medium scale industries.

State Financial Corporations play a critical role in fostering growth and innovation among small and medium enterprises by providing them access to necessary financial resources.