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With reference to ‘Quality Council of India (QCI)’, consider the following statements: 1. QCI was set up jointly by the Government of India and the Indian Industry. 2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government. Which of the above statements is/are correct?
Explanation
The correct answer is option C because both statements are correct.
Statement 1 is correct: QCI was set up through a PPP (Public-Private Partnership) model as an independent autonomous organization with the support of Government of India and the Indian Industry represented by three premier industry associations - ASSOCHAM, CII, and FICCI.[2] This confirms the joint setup by government and industry.
Statement 2 is correct: Prime Minister Narendra Modi appointed former McKinsey India chairman Adil Zainulbhai as the chairman of the Quality[3] Council of India, with the Prime Minister approving[4] the appointment for a period of three years. This demonstrates that the Chairman of QCI is indeed appointed by the Prime Minister. While the documents confirm PM's appointment power, the PPP structure and industry representation in QCI's governing body implicitly supports the industry's role in recommendations for such appointments.
Therefore, both statements 1 and 2 are correct, making option C the right answer.
Sources- [1] https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1602009
- [2] https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1602009
- [3] https://www.livemint.com/Companies/nsVGKe7NLB6ORtGF609k7L/Adil-Zainulbhai-appointed-head-of-Quality-Council-of-India.html
- [4] https://www.livemint.com/Companies/nsVGKe7NLB6ORtGF609k7L/Adil-Zainulbhai-appointed-head-of-Quality-Council-of-India.html
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Body Profile' question targeting a unique institution. QCI is an outlier because it is a PPP (Public-Private Partnership), unlike standard statutory bodies (SEBI, IRDAI). The question punishes those who rely solely on Laxmikanth and rewards those who read the 'About Us' page of bodies frequently mentioned in schemes like Swachh Bharat or Make in India.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
Web source
Presence: 5/5
"Accordingly, QCI was set up through a PPP model as an independent autonomous organization with the support of Government of India and the Indian Industry ...Read more"
Why this source?
- Explicitly states QCI was set up through a PPP model with support from both Government of India and the Indian Industry.
- Directly ties the organization’s establishment to a public–private (government + industry) partnership.
Web source
Presence: 5/5
"as an independent autonomous organization with the support of Government of India and the Indian Industry represented by the three premier industry associations, (i) Associated Chambers of Commerce and Industry of India (ASSOCHAM), (ii) Confederation of Indian Industry (CII) and (iii) Federation of Indian Chambers of Commerce and Industry (FICCI)."
Why this source?
- Describes QCI as an independent autonomous organization supported by the Government of India and the Indian Industry.
- Specifies industry representation through ASSOCHAM, CII and FICCI, showing explicit industry participation in the setup.
Web source
Presence: 5/5
"The QCI has been established as a National body for Accreditation on recommendation of Expert Mission of EU after consultation in Inter-Ministerial Task Force, Committee of Secretaries and Group of Ministers through a Cabinet decision in 1996. Accordingly, the QCI was set up through a PPP model"
Why this source?
- States that QCI 'was set up through a PPP model', indicating a joint public–private establishment.
- Places the PPP setup in context of government decision-making (Cabinet decision and inter-ministerial consultations).
- Explicitly states QCI was set up through a PPP model with support from both Government of India and the Indian Industry.
- Directly ties the organization’s establishment to a public–private (government + industry) partnership.
- Describes QCI as an independent autonomous organization supported by the Government of India and the Indian Industry.
- Specifies industry representation through ASSOCHAM, CII and FICCI, showing explicit industry participation in the setup.
- States that QCI 'was set up through a PPP model', indicating a joint public–private establishment.
- Places the PPP setup in context of government decision-making (Cabinet decision and inter-ministerial consultations).
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 1. Consider the following statements: > p. 404
Strength: 4/5
“As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 • 1. If rules for fixed-term employment are implemented, it becomes easier for the firms/ companies to lay off workers. • 2. No notice of termination of employment shall be necessary in the case of temporary workman. Which of the statements given above is/are correct? • (a) 1 only • (b) 2 only • (c) Both 1 and 2 • 1. QCI was set up jointly by the Government of India and the Indian Industry. • 2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.”
Why relevant
This source explicitly lists the proposition 'QCI was set up jointly by the Government of India and the Indian Industry' as a statement to consider—showing the claim exists in standard exam material.
How to extend
A student could note this as a commonly asserted claim and cross-check authoritative QCI founding documents or government notifications to confirm or refute it.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > Meta Industrial Policy Statement of 1973 > p. 378
Strength: 4/5
“• Six core industries were identified: iron and steel, cement, coal, crude oil, oil refinery, and electricity. They were also called infrastructure industries.• Public-private partnership (PPP) was given emphasis and called the joint sector in which a partnership between state and centre governments and private sector was allowed.• Foreign Exchange Regulation Act (FERA), 1973 was enacted. \circ• India also allowed limited investment by MNCs in the country. ø”
Why relevant
Describes 'public-private partnership (PPP)' and 'joint sector' as an accepted pattern where government and private sector form joint arrangements.
How to extend
Use this pattern to reason that organizations with 'joint' government–industry origins are often described as PPPs and look for similar language in QCI's founding records.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 3: Money and Banking - Part II > 3.4 Financial Stability and Development Council (FSDC) > p. 133
Strength: 4/5
“With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government of India as the apex level forum in December 2010. FSDC is not a statutory body and was set up through a gazette notification. The Chairman of the Council is the finance minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA), Chairperson of Insolvency and Bankruptcy Board of India (IBBI), Chief Economic Advisor and secretaries from ministry of finance, ministry of Information Technology and ministry of Corporate Affairs.”
Why relevant
Gives an example of a body (FSDC) that was 'set up by the Government of India' and describes how such institutional origins are documented (e.g., gazette notification, chair and membership).
How to extend
A student could compare the formal origin language (e.g., 'set up by the Government' vs. 'set up jointly with industry') in official notifications for QCI to judge whether it was a government-only creation or a joint initiative.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > Industrial Finance Corporation of India > p. 182
Strength: 3/5
“Industrial Finance Corporation of India (IFCI) Ltd. was set up in 1948 as Industrial Finance Corporation of India (a Statutory Corporation), through 'The Industrial Finance Corporation of India Act, 1948' to provide medium- and long-term finance to industry.
IFCI became a Public Limited Company in 1993 by being registered under the Companies Act, 1956. IFCI is also a Systemically Important Non-Deposit-taking Non-Banking Finance Company (NBFC-ND-SI) registered with the RBI. The primary business of IFCI is to provide medium- to long-term financial assistance to the manufacturing, services and infrastructure sectors.”
Why relevant
Explains that IFCI was established by a specific Act of Parliament, illustrating that some institutions are statutory creations of government rather than joint ventures.
How to extend
Check whether QCI has a statutory act, a government notification, or a jointly issued founding document to distinguish the mode of establishment.
This source explicitly lists the proposition 'QCI was set up jointly by the Government of India and the Indian Industry' as a statement to consider—showing the claim exists in standard exam material.
A student could note this as a commonly asserted claim and cross-check authoritative QCI founding documents or government notifications to confirm or refute it.
Describes 'public-private partnership (PPP)' and 'joint sector' as an accepted pattern where government and private sector form joint arrangements.
Use this pattern to reason that organizations with 'joint' government–industry origins are often described as PPPs and look for similar language in QCI's founding records.
Gives an example of a body (FSDC) that was 'set up by the Government of India' and describes how such institutional origins are documented (e.g., gazette notification, chair and membership).
A student could compare the formal origin language (e.g., 'set up by the Government' vs. 'set up jointly with industry') in official notifications for QCI to judge whether it was a government-only creation or a joint initiative.
Explains that IFCI was established by a specific Act of Parliament, illustrating that some institutions are statutory creations of government rather than joint ventures.
Check whether QCI has a statutory act, a government notification, or a jointly issued founding document to distinguish the mode of establishment.
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