Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q63: The UNIDO (United Nations Industrial Development Organization) methodology for Cluster Development is the standard model adopted by India. Which of the following represents the correct chronological sequence of the main phases?

A
Trust Building → Action Plan Implementation → Diagnostic Study → Monitoring.
B
Diagnostic Study → Trust Building → Action Plan Implementation → Monitoring & Evaluation.
C
Action Plan Implementation → Diagnostic Study → Trust Building → Handover.
D
Monitoring → Trust Building → Diagnostic Study → Action Plan Implementation.
✅ Correct Answer: B
Concept Definition: The UNIDO approach is a structured "Cluster Development Journey."
The Phases:





Diagnostic Study: First, map the cluster, identify the "pain points," and analyze the value chain.




Trust Building: Engage stakeholders to break the isolation.
This is often the hardest phase.




Action Plan Implementation: Execute the Soft and Hard interventions defined in the study.




Monitoring & Evaluation: Assess the impact and ensure the cluster can sustain itself (Exit Strategy).
Key Takeaway: You cannot build trust without a diagnosis, and you cannot implement without trust.