© Publisher

Edition - First
Edition Year - 2023
INDEX
Writer - SSGC
M.R.P.: 90/-
ISBN :
ECONOMIC & SOCIAL DEVELOPMENT
Printed at - Chapter Page No.
Shri Jee Printing Press
A. Economic Development
Contact :
Sam-Samayik 1. Nature of Indian Economy 3-3
Ghatna Chakra
2. National Income & Gross Domestic Product 3-6
188A/128, Chruchlane,
Allenganj, Prayagraj 3. Sustainable Economic Development 6-8
(Allahabad) - 211002
Ph.: 0532-2465524, 2465525 4. Agriculture and Allied Sectors 8-15
Mob.: 9335140296 5. Industrial Sector 15-23
e-mail : ssgcald@yahoo.co.in
Website : ssgcp.com 6. Tertiary Sector 23-24
e-shop : shop.ssgcp.com
7. Fiscal Policy & Revenue 24-33
Copyright 2023, by Sam- 8. Planning 33-37
Samayik Ghatna Chakra
Private Limited. No Part of this
9. Money & Banking 37-50
publication may be reproduces B. Social Development
or distributed in any form or by
any means, electronic, 1. Human Development 51-52
mechanical, photocopying,
recording or otherwise or
2. Employment & Welfare Schemes 52-62
stored in database or retrieval 3. Poverty & Unemployment 62-65
system without the prior
written permission of C. External Sector
publisher. The program listings
1. International Trade 66-70
(if any) may be entered stored
and exeuted in a computer 2. Foreign Exchange, FDI, External Debt 70-75
system, but they may not be
reproduced for publication. 3. International Organizations 75-81

Writer & Associates :

D. Miscellaneous 82-87
l Ashutosh Srivastava E. Demography
l Raj Kumar Srivastava 1. India : Population 88-97
l Ashok Kumar Pal 2. India : Urbanization 98-102
l Anand Gupta
3. World : Population & Urbanization 102-104
l Asif Iqbal

Economic & Social Development E-2

 Economic and Social Development
A. Economic Development
Nature of Indian Economy  Indian model of development ensures interest of
— State and Person both
 Mixed economy means  Among the Voluntary Social Service, Farming,
—Co-existence of public and private sectors Transportation and Service, it is not an economic activity
 Indian Economy is a —Mixed economy -- Voluntary Social Service
 Main characterstics of Indian Economy is
—Mixed economy National Income & Gross
 It will be true to classify India as
— A labour-surplus economy Domestic Product
 An underdeveloped economy is generally characterized
 The term National Income represents
by these — Low per capita income and Low rate
of capital formation —Gross National Product at market prices (GNPMP)
 These characteristics correctly explains that India is an minus depreciation and indirect taxes plus subsidies
underdeveloped economy  National Income is
— Inequitable distribution of income; High dependency — Net National Product at factor cost (NNPFC)
ratio; Slower rate of increase in national income  The Net National Product at Market Price (NNP MP )
 These features indicates that Indian economy is in a is
developing category —Gross National Product at Market Price – Depreciation
— Occupation is mainly agriculture; Disguised
unemployment; Poor quality of human capital National Income (NNPFC ) = NNPMP – Indirect Taxes +
 The Indian Economy can be described as Subsidies
— A developing economy  These statement are correct
 The Indian Economy is characterised by — NNP = GNP – Depreciation and NNP = GDP + Net
— Pre-dominance of Agriculture ; Low per Income from Abroad – Depreciation
Capita Income ; Massive Unemployment
 The National income of a country for a given period is
 These activities constitute real sector in the economy
equal to the — Monetary value of final goods and services
— Farmers harvesting their crops and produced by normal residents of a country
Textile mills converting raw cotton into fabrics
 In an open economy, the National Income (Y) of the
 These activities do not constitute real sector in the
economy is (C, I, G, X, M stand for Consumption,
economy — A commercial bank lending money to a
Investment, Govt. Expenditure, total exports and total
trading company; A corporate body issuing
imports respectively)
Rupee Denominated Bonds overseas
 Among the social behaviour, natural resources, energy
—National Income (Y) = C + I + G + (X – M)
 Among the product method, diminishing cost method,
resources and capital resources, non-economic element
in growth of the country is — Social Behaviour income method and expenditure method, this is not a
 Out of oil sector reforms, public sector reforms, legal method to calculate the Gross Domestic Product (GDP)
sector reforms and reform of government and public — Diminishing cost method
institutions, it is not part of the 'Second Generation of  Net National Product (NNP) and Gross National Product
Economic Reforms' identified by the Government (GNP) are — Value measures of the National
—Legal System Reforms production and both are different

GS Pointer Economic & Social Development E–3

 'Base year' in National Income accounting means  Assertion (A) : The Indian economic policy is increasingly
—The year whose prices are being being criticized by insiders as well as outsiders.
used to calculate the real GDP Reason (R) : The criticism is largely based on ideological
 One of the main problem in calculating National Income in differences.
India is — Non-organized sector —Both (A) and (R) are true and (R) is
 The correct statements are as follows : the correct explanation of (A)
— Statement I : Net Domestic Product = Gross Domestic  The main strategies of new economic policy adopted in
Product – Depreciation 1991 are
Statement II : Per Capita Income = Net National —Liberalization, Privatization and Globalization
Product (NI) ÷ Total Population of the Nation  Economic liberalization in India started with
Statement III : Net Domestic Product is the —Substantial changes in industrial licensing policy
better metrics than Gross Domestic Product  This is correct regarding stabilization and structural
for comparing the economies of the world adjustment as two components of the new economic policy
 If over a given period of time both prices and monetary adopted in India
income have been doubled, the real income will be —Structural adjustment is a gradual multi-step process,
— Unchanged while stabilization is a quick adaptation process
 Theoretically, if economic growth is conceptualized, this  He is called the pioneer of liberalization of Indian Economy
is not usually taken into consideration —Dr. Manmohan Singh
— Growth in financial aid from World Bank  One of the reasons for India's occupational structure
 For economic growth, these are generally taken into remaining more or less the same over the years has been
consideration b — Growth in GDP, GNP, Per Capita that —investment pattern has been directed
GNP, Per Capita Income towards capital intensive industries
 The correct statements about Amartya Sen’s advices re-  This is not a major factor of economic growth
garding priorities for Indian Economy are : —Technocrats and Bureaucrats
— It should be people-oriented; Economic security to  The most appropriate measure of a country’s economic
the poorest of the poor; Safeguards against
growth is its
integration of these with world economy
—Per Capita Product (Per Capita Net National
 The view that ‘Planning in India should, in future, pay
Product or Per Capita Real Income)
more attention to the people than to commodities’ was
 The best index of economic development is provided by
given by —Amartya Sen
— Growth in per capita real income from year to year
 The Hindu rate of growth refers to the growth rate of
—National Income/GDP  The standard of living in a country is represented by
 Economic growth is usually coupled with —Inflation —Per Capita Income
 The proportion of labour in GNP (Gross National  The growth rate of Per Capita Income at current prices is
Product) becomes low due to this reason higher than that of Per Capita Income at constant prices,
—Wages lag behind prices because the latter takes into account the rate of
—Increase in price level
 The correct match is as follows :
 That the Per Capita Income in India was Rs. 20 in
Economic Development – Constructive change
1867-68, was ascertained for the first time by
Economic growth – Gross Domestic Product
Sustainable Development – Environment
—Dadabhai Naoroji
 He was the chairman of National Income Committee
Quality of life – Health
appointed by the Government of India in 1949
 With reference to Indian economy, the correct statement
is — The percentage share of Public Sector in GDP —P.C. Mahalanobis
has declined in the last 10 years  The economist who for the first time scientifically deter-
 In the context of Indian economy, the correctly matched mined National Income in India —V.K.R.V. Rao
pairs are :  In the gone by decade of 90s the highest rate of growth of
Melt down – Fall in stock prices GDP was obtained in this year —1999-2000
Recession – Contraction in Economic Activities  During 2010-2020, the highest rate of growth of GNI was
Slow down – Decrease in Economic Activities obtained in this year —2016-17 (8.3%)
GS Pointer Economic & Social Development E–4
 This organization is formed with the merger of Central  According to Asian Development Outlook Supplement
Statistical Office (CSO) and National Sample Survey Of- 2022 (December, 2022), growth rate of India is estimated
fice (NSSO) in 2019 —National Statistical Office (NSO) at — 8.7% in 2021 and 7.0% in 2022
 The office which releases data of the National Income in  States in descending order of Per Capita Income for the
India —NSO (National Statistical Office) year 2020-21 are as follows :
 The National Income of India is estimated by — Gujarat > Maharashtra > Punjab > Uttar Pradesh
—NSO (National Statistical Office)  Consider the following states:
 In India which agency is entrusted with the collection of 1. Gujarat 2. Karnataka
data of capital formation — RBI and NSO 3. Maharashtra 4. Tamil Nadu
 Indicate the vital change in the measurement of National The descending order of these states with reference to
Income of India in 2015 their Per Capita Net State Domestic Product in 2020-21 is
—Both the base year and calculation method have changed — 2, 1, 4, 3
 In new GDP data, base year has been changed from 2004-  The latest Per Capita Income at current prices is lowest for
05 to — 2011-2012 the Indian State of —Bihar
 At present (2015) this base year is being used for estimation
 This State has minimum Per Capita Annual Income among
of National Income in India — 2011-12 all States of India —Bihar
 The new GDP series released by the CSO in February, 1999
 This State has the highest Per Capita Income (at present
was with reference to base prices of —1993-94
for 2020-21) — Goa
 This is a sign of economic growth
 This State/Union Territory recorded highest Per Capita
—A sustained increase in real Per Capita Income
 Assertion (A) : Economic development requires a multi-
Income during 2020-21 — Goa
 Among the Karnataka, West Bengal, Gujarat and Haryana,
dimensional approach.
Reason (R) : The present Government of India is focus- this State has highest Per Capita Average Income in 2020-
sing mainly on micro-economic issues. 21 —Karnataka
—(A) is true, but (R) is false  This State has the highest growth in Gross State Domestic
 In year 2021-22 (P.E.) in India, Per Capita Net National Product in 2020-21 —Manipur
Income at current prices and factor cost was —Rs. 150007  Assertion (A) : Economic growth in India has generally
 In year 2022-23 (1st A.E.) Per Capita Income at current remained stagnant for the last ten years.
prices in India is estimated at —Rs. 170620 Reason (R): Foodgrains production has not increased for
 As per Economic Survey 2022-23, in this year the rate of last several years —(A) and (R) both are incorrect
growth of India's Per Capita Income at constant prices  Assertion (A) : Though India's National Income has gone
was the highest during the period 1951-52 to 2021-22 up several fold since 1947, there has been no marked
—1988-89 and 2021-22 (P.E.) (7.5% in both years) improvement in the Per Capita Income level.
 In the year 2022-23 (at 2011-12 prices), the Per Capita Reason (R) : Sizeable proportion of the population of India
Income in India is —Rs. 96522 (1st A.E.) is still living below the poverty line.
 In the context of Indian Economy, the correct statements
—(A) is false, but (R) is true
are : —The growth rate of GDP has not constantly
 In India, rural incomes are generally lower than the urban
increased in the last five years; The growth
incomes. These reasons account for this
rate in Per Capita Income has not constantly
increased in the last five years
— A large number of farmers are illiterate and know
little about scientific agriculture; Prices of primary
 According to Economic Survey 2022-23, real growth rate
for financial year 2023-24 is assumed as based on IMF products are lower than those of manufactured products;
(International Monetary Fund) estimates —6.1 Percent Investment in agriculture has been low when
 As per Economic Survey 2022-23, The annual growth rate compared to investment in industry
of GVA of the Indian Economy at 2011-12 prices during  With reference to the 'Capital formation' the correct
2022-2023 (1st A.E.) has been estimated at —6.7 per cent statements are :
 The estimated GDP growth rate at constant prices for 2021- — Process of capital formation depends on savings and
22 and 2022-23 is effectiveness of financial institutions; Investment is the
— 9.1% (1st R.E.) and 7.0% (2nd A.E.) respectively essential factor of capital formation

GS Pointer Economic & Social Development E–5

 The main reason for low growth rate in India, inspite of 3. Public corporations and other public enterprises
high rate of savings and capital formation is 4. Government
—High capital-output ratio The correct descending order of contribution of the above
 Despite being a high saving economy, capital formation sectors is —1, 2, 3, 4
may not result in significant increase in output due to  With reference to the Indian economy, the correct state-
—High capital-output ratio ments are :
 The main causes of slow rate of growth of Per Capita — A share of the household financial savings goes
Income in India are : towards government borrowings; Dated securities
— High capital-output ratio; issued at market-related rates in auctions form
High rate of growth of population etc. a large component of internal debt
 The reasons behind the low level of Per Capita Income in
Uttar Pradesh are : Sustainable Economic
— Fast growing population; Lack of entrepreneurship;


Inadequate infrastructural facilities etc.
Economic growth in country X will necessarily have to
Development
occur if —There is capital formation in X  The main objective of sustainable tourism is
 Major characteristics of Indian Economy are : —To manage tourism and environment while
— Low productivity of labour; Lower per capita maintaining cultural integrity and
income; Low rate of capital formation etc. ecological processes
 This is not a characteristic of Indian Economy  This is the Nodal Institution for implementation of
—Lack of Natural Resources Sustainable Development Goals in India —NITI Aayog
 These reasons are mainly responsible for slow growth of  India’s rank in the 2022 Sustainable Development Goal
Real Per Capita Income in India Index is —121th
— Rapid increase in population; High increase  India’s rank in the 2021 Sustainable Development Goal
in prices ; Slow growth in agriculture Index was —120th
and industrial sectors  According to the Report released by the NITI Aayog in
June 2021 on 'Sustainable Development Goals India Index
 In the 2001-2010 decade, the highest rate of gross domestic
2020-21', the Uttar Pradesh is grouped under this category
savings was achieved in the year —2007-08
 In the 2010-2020 period, the highest rate of gross domestic
—Performer
 As per SDG India Index and Dashboard 2020-21 published
savings was achieved in the year —2010-11
by the NITI Aayog, the top ranking States in their perfor-
 The average rate of domestic savings (gross) for the Indian
mance regarding SDGs in the country were
Economy is currently (in 2019-20 and 2020-21) estimated
—1. Kerala (Score 75), 2. Himachal Pradesh and
to be in the range of —28 to 30 percent Tamil Nadu (74 each), 3. Andhra Pradesh, Goa,
 In year 2020-21, India's gross domestic savings rate was
Karnataka and Uttarakhand (72 each),
—28.2 percent of GDP 4. Sikkim (71), 5. Maharashtra (70)
 Savings ratio in India in 2019-20 stands at
 According to 'Sustainable Development Goal (SDG)
—29.9 percent of GDP India Index, 2020-21' released by the NITI Aayog, this
 This sector contribute the most in savings in India State holds the first position —Kerala
—Household sector  Among Gujarat, Himachal Pradesh, Andhra Pradesh and
 Among the deposits, currency, physical assets and shares Tamil Nadu, this State is NOT in the list of top five States
and debentures, it has the highest share in the household on the Sustainable Development Goals Index 2020-21 in
savings of India —Physical assets India — Gujarat
 In India savings arise from the following four main  These cities were among the top three positions in the
sectors : Sustainable Development Goal Urban Index and Dash-
1. Household sector board 2021-22 declared by the NITI Aayog in November
2. Private corporate sector 2021 — 1. Shimla, 2. Coimbatore, 3. Chandigarh
GS Pointer Economic & Social Development E–6
 This Sustainable Development Goal (SDG) will target to  We mean by sustainable economic development that
water availability for all and its permanent management —Future economic development with
upto 2030 in India —SDG - 6 the development of present generation
 The correctly matched lists are as follows :  Neemrana, a model of sustainable economic development,
List – I List – II is located in —Rajasthan
(Sustainable Development Goal) (Related With)  The correct statements about sustainable development
SDG-10 – Reduced Inequalities are : -- Based on the global indicator framework and data
SDG-13 – Climate Action produced by National Statistical Systems and information
SDG-14 – Life below Water collected at regional level, the United Nations Secretary
SDG-15 – Life on Land General presents an Annual Sustainable Development
 These are sustainable development goals targeted to be Goal Report; Global Sustainable Development Report is
achieved by 2030 -- Gender Equality, Zero Hunger, produced to inform the quadrennial sustainable
Good Health and Well being development goal review deliberations at the U.N. General
 It is not a sustainable development goal targeted to be Assembly once every four years
achieved by 2030 -- Space Research  The 'Agenda – 21' of Rio Summit, 1992 is related to
 The concept of 'Limit to Growth' was propounded by -- Sustainable development
—The Club of Rome  The task force of blue economy for the sustainable devel-
 According to Meadows (1972), if the present trends in opment is a collaboration between India and this country
world population, industrialization, pollution, food —Norway
production and resource depletion continue unchanged,  In the context of any country, this would be considered as
the 'Limits to Growth' on our planet will be reached in the part of its social capital
next —100 years —The level of mutual trust and harmony in the society
 Natural resources should be used by the present  Human capital formation as a concept is better explained
generation in such a way that if there is minimum in terms of a process which enables
degradation of natural resources, then this kind of — Increasing the knowledge, skill levels and
development would it be called capacities of the people of the country;
-- Sustainable Development Accumulation of intangible wealth
 Balancing the need to use resources and also conserve  Skill development programme enhances —Human Capital
them for the future is called -- Sustainable development  Among the education, medical care, training and irriga-
 Assertion (A) : Sustainable development is important for tion, it will not have a direct impact on human capital for-
well being of human society. mation —Irrigation
Reason (R) : Sustainable development is a kind of  Increasing investment in human capital leads to
development that meets the needs of the present without —Proper use of resources; Increase in
compromising the ability of future generations to meet productivity; Skill development
their own needs. —Both (A) and (R) are true and  This country has topped in the Human Capital Index, 2020
(R) is the correct explanation of (A) —Singapore
 ‘Saving energy and other resources for the future without  India's rank in Human Capital Index, 2020 was — 116th
sacrificing people’s comfort in the present' is the defini-  Inclusive growth would necessitate
tion of this concept —Sustainable development —Development of infrastructure facilities;
 Sustainable development is described as the development Revival of agriculture; Increased availability
that meets the needs of the present without compromising of social services such as education and health
the ability of future generations to meet their own needs.  Inclusive growth is not expected to increase from this
In this perspective, inherently the concept of sustainable —High growth rate of National Income
development is intertwined with this concept  These can be said to be essentially the parts of Inclusive
—Carrying capacity Governance
 The base of sustainable development is —Establishing effective District Planning Committees
—Environmental approach in all the districts; Increasing the government spend-
 Sustainable development is a case of inter-generational ing on public health; Strengthening
sensibilities in respect of use of —Natural resources the Mid-day Meal Scheme

GS Pointer Economic & Social Development E–7

 These can aid in furthering the Government's objective of  The advantages of implementing the ‘National Agricul-
inclusive growth ture Market’ scheme are
— Promoting Self-Help Groups; Promoting Micro, — It is a pan-India electronic trading portal for agricul-
Small and Medium Enterprises; Implementing tural commodities; It provides the farmers access to
the Right to Education Act nationwide market, with prices commensurate with the
 A new chapter on sustainable development and climate quality of their produce
change was first introduced in the Economic Survey of  Suraj Dhara Yojana is implemented for
—2011-12 —Exchange of seeds
 Increase in absolute and per capita real GNP do not con-  Among the Jawahar Lal Nehru, Lal Bahadur Shastri, Charan
note a higher level of economic development, if Singh and Abul Kalam Azad, who did not approve the idea
—Poverty and unemployment increase of co-operative farming in India —Charan Singh
Agriculture and Allied Sector  Bullock Capitalist means
—Farmers who have some resources but are not rich
 These are parts of land reforms in India
 ‘Kisan Divas’ is celebrated on — December 23
 First Krishi Vigyan Kendra in India was established in the
— Abolition of Zamindari system; Ceiling on
land holdings; Tenancy reforms
year — 1974
 This is not a part of land reforms in India
 The Farmers' Produce Trade and Commerce (Promotion
and Facilitation) Act, 2020 had provisions for —Multiple-cropping scheme
—Intra-State and inter-state trade of farmers' produce  These measures have been taken to make the agrarian
beyond the physical premises of APMC markets structure conducive to agricultural growth
 These were not mentioned in the 'Farmers Produce, Trade —Abolition of intermediaries; Tenancy
and Commerce Act 2020' of India reforms; Ceiling on land holdings
—Essential Commodities; Contract  With reference to the measures of tenancy reforms in In-
Farming; Minimum Support Price dia, the correct statements are
 Assertion (A) : The Union Budget 2020-21 has focused — Regulation of rent; Security of tenure;
on Rural Development with aim of doubling farmers' Conferment of ownership on tenants
income.  The size of marginal landholdings in India is
Reason (R) : The 16 Action points announced in the budget —Less than 1 hectare
is centred around agriculture, irrigation and rural  A farmer, which has land holding between 1 to 2 hectare is
development. known as —Small Farmer
—Both (A) and (R) are true and (R)  The average size of landholdings in Bihar in
is the correct explanation of (A) comparison with other States is
 Genetic Industry includes — Agriculture —Second lowest (after Kerala)
 Objectives of food management in India include  The most critical stage for irrigation in wheat is
—Procurement and distribution of foodgrains —C.R.I. (Crown Root Initiation) stage
and Maintenance of buffer stock  The total production of wheat in India as per the 2nd
 It is not an objective of food management in India Advance Estimates in the year 2022-23
—Export of foodgrains —112.18 million tonnes
 These factors/policies were affecting the price of rice in  Among the rural poverty, urban poverty, skilled labour
India in the recent past and migration from cities to villages, the effective reason
— Minimum Support Price; Government's trading; of slow agricultural development in India is
Government's stockpiling; Consumer subsidies —Rural Poverty
 In India, these can be considered as public investment in  The correctly matched lists are as follows :
agriculture Land allotted to big feudal landlords
— Computerization of Primary Agricultural Credit – Jagirdari System
Societies; Social Capital development; Setting Land allotted to revenue farmers or
up of cold storage facilities by the governments rent collectors – Zamindari System

GS Pointer Economic & Social Development E–8

 Land allotted to each peasent with  The average yield of cotton is highest in India for the
the right to sublet, mortgage, gift or sell State of —Rajasthan
– Ryotwari System  The descending order of the States from the point of view
Revenue settlements made at village of wheat production in the country is
– Mahalwari System — Uttar Pradesh, Madhya Pradesh, Punjab
 Black soil of India is highly suited for the production of  The net crop sown area in India is about
— Cotton crop —14 crore he ctares
 The substitution of steel for wooden ploughs in  The average cropping intensity of India in 2018-19 is
agricultural production is an example of —141.6 percent
—Capital-augmenting technological progress  In last 15 years, foodgrain production has recorded a nega-
 The share of agriculture and allied sectors in the GVA (at tive growth rate in
current basic prices) of India in 2022-23 (2nd A.E.) is — 2009-10, 2012-13, 2014-15 and 2015-16
—18.3 percent  The average annual growth rate (at constant prices) of
 Share of agriculture and allied sectors in GVA of India in agriculture and allied sectors was negative in
2021-22 is around —19.0 percent —2014-15
 In 2020-21 the contribution of agriculture and allied sec-  In the year 1997-98, Indian agriculture sector has shown a
tors in the GVA of India stands at —20.3 per cent negative growth of —About 1 percent
 The contribution of agriculture in Indian Economy is  Under which Five Year Plan, did agriculture register a
—Decreasing negative growth —Third
 Since the advent of Planning era in India, the share of  Assertion (A) : Near self -sufficiency has been achieved
agriculture sector in GDP has —Continued to decline in India in the production of foodgrains.
 These are true in reference to Agriculture Census (2015- Reason (R) : India no longer imports foodgrains in bulk
16) — Small and marginal farmers are 86.08% of total
quantity.
farmers whereas they hold only 46.94% of farm land
—Both (A) and (R) are true and (R) is
(out of total farm land); Statewise, based on total number
the correct explanation of (A)
of farmers, Maharashtra is at third position; Statewise,
 What do we mean by the statement "India has achieved
based on total farmed land
national food security but has not secured household
area, Rajasthan is at first position
security" —There is sufficient food stock but all
 As per the NSSO 70th Round ‘Situation Assessment Survey
households do not have access to it
of Agricultural Households’, the true statements are :
 According to the report of CAG published in the year 2000
— Rajasthan has the highest percentage share of
on PDS, the government subsidy on foodgrains
agricultural households among its rural house-
increased from 1992-93 to 1998-99 by
holds; Out of the total agricultural households
in the country, about 45 percent belong to OBCs;
—More than three times
 The largest vegetable producing country in the world
In Kerala, a little over 60 percent of agricultural
households reported to have received maximum — China
income from sources other than agricultural activities  India is the world's second largest producer of
 The percentage of rural households engaged in agriculture, — Vegetable and Fruits
as estimated by National Sample Survey Office in 2014  The amount of onion exported from India in 2021-22 was
—57.8 Percent about —15.37 lakh tonnes
 As per Economic Survey 2022-23, the three largest rice  'Kashi Lalima' is the variety of — Okra/Lady finger
producing States are  This mango variety is mostly exported from India
— 1. West Bengal 2. Uttar Pradesh 3. Punjab —Alphonso
 This State has largest area under Soyabean cultivation  The correctly matched lists are as follows :
—Madhya Pradesh Fruit Largest Producer
 Three largest Soyabean producing States are Mango – Uttar Pradesh
—1. Maharashtra, 2. Madhya Pradesh 3. Rajasthan Litchi – Bihar
 These countries have the highest per hectare production Coconut – Kerala
of cotton in the world —Australia and China Apple – Jammu & Kashmir

GS Pointer Economic & Social Development E–9

 The correctly matched pairs are :  The correctly matched pairs about India's economic
Crop Country indicator and agricultural production (all in rounded
Rubber – Thailand figures) in 2022-23 are :
Coffee – Brazil GDP per capita (current prices) : Rs. 196716
Olive – Spain Rice : 131 million tons
Sugarcane – Brazil Wheat : 112 million tons
 As per the data of FAO, top 4 coffee (green) producing  Agriculture income tax in India can be levied by
countries in 2021 are —State Governments
—1. Brazil, 2. Vietnam, 3. Indonesia, 4. Colombia  Among the Pulses, Coffee, Sugar and Edible oils, India’s
 The State which ensures maximum production of Coffee in main agricultural import item is — Edible oils
India —Karnataka (About 70%)  Preferred variety of Mango for export is —Alphonso
 Among the agricultural commodities – Spices, Fresh fruits,  The percentage of labour force which is provided direct
Vegetable oils and Pulses – imported by India, this employment by the agriculture sector in India (As per 2011
accounts for the highest imports in terms of value in the Census) — 55%
last five years —Vegetable oils  In Uttar Pradesh maximum percentage of workers are
 This pulse was imported in the largest quantity in 2020-21 engaged in —Agriculture sector
—Lentil (Masoor)  The approximate percentage of India's labour force in
 Among the agricultural products – Coffee, Basmati Rice, 2011, which depends on agriculture for their livelihood
Raw Cotton and Tea, this fetches the largest foreign — 55%
exchange for the country from its export — Rice  Among the Jute, Groundnut, Jowar and Sugarcane, it is
 Among the Oil Lakes, Raw Cotton, Rice and Spices, the not a cash crop —Jowar
most valuable item in the agricultural export of India is  The main objective of Vishesh Krishi and Gram Udyog
— Rice Yojna is —Promotion of agricultural export
 Niger crops is a oil seed crop. The content of oil in its  The nationwide ‘Soil Health Card Scheme’ aims at
— Checking the overuse of fertilizers in farmlands
seeds is about —37 – 47%
 The leading mulberry silk producing Indian State is  Kissan Bahi Yojana was started in Uttar Pradesh in
—Karnataka —1992
 The correct statements are :  ‘Uttar Pradesh Diversified Agriculture Support Project’
— India is the only country in the world producing all (UPDASP) was sponsored in Uttar Pradesh by
the five known commercial varieties of silk; India
— World Bank
 ‘Krishak Samridhi Aayog’ was established in Uttar Pradesh
is the largest producer of sugar in the world
 The largest silk producer in the world is —China in this year — 2017
 In this State, the area under Tube-well irrigation is the
 India's rank in the silk production in the world — Second
highest —Uttar Pradesh
 The pathways to increase productivity in agriculture are
 Command Area Development Programme was launched
—Efficient irrigation; Quality seeds; Use of pesticides;
in 1974-75 for
Use of fertilizers
 These are the reasons for low productivity in Indian
— The development of water-use efficiency
 Accelerated Irrigation Benefits Programme was launched
agriculture —Pressure of population on land; Disguised
during 1996-97 to provide loan assistance to
unemployment; Small land holdings
—States for completion of irrigation projects
 This is not the reason for low productivity in Indian
 Since 2015-16, for Rashtriya Krishi Vikas Yojana, the
agriculture —Co-operative farming
following funding pattern is correct
 The importance of agriculture in Indian economy is —State (40%) , Centre (60%)
indicated by its contribution to  These are included in 'National Agricultural Development
—National Income and Employment; Industrial Yojna' —Soil Test Lab; Fertilizers' Quality Control
Development and International Trade ; Labs; Agricultural Tools Test Lab;
Supply of Foodgrains Agricultural Engineering

GS Pointer Economic & Social Development E–10

 P. Sengupta and G. Sdasyuk (1968) had divided India into  There are among the objectives of National Food Security
how many micro agricultural regions —60 Mission (NFSM)
 For the 8 thPlan, India was divided into how many —Distribution of high yielding variety seeds;
agro-climatic zones by the Planning Commission —15 Demonstration of improved production
 National Horticulture Mission was launched in this Five technologies popularising newly
Year Plan —Tenth released variety of crops
 The National Horticulture Mission was started in  The is not an objective of National Food Security Mission
—May, 2005 (NFSM) —Strengthening credit facilities
 Among the Jammu and Kashmir, Arunachal Pradesh, Uttar  ‘National Food Security Mission’ was launched to in-
Pradesh and Himachal Pradesh, this State is covered under crease the production of these commodities
the National Horticulture Mission (NHM) — Wheat, Rice, Pulses
—Uttar Pradesh  These crops are covered under the National Food Security
 These are among the objectives of 'National Horticulture Mission —Pulses; Rice; Wheat; Coarse Cereals
Mission'  National Food Security Mission in India has started with
—Achieving higher growth in horticulture; Post-harvest effect from —Rabi Season 2007-08
management; Human resource development  At present, National Food Security Mission (NFSM) has
 This is not the objective of 'National Horticulture Mission' 8 components. These are
—Providing financial assistance —1. NFSM-Rice, 2. NFSM-Wheat, 3. NFSM- Pulses,
 Krishi Shramik Samajik Suraksha Yojna provides 4. NFSM- Coarse Cereals, 5. NFSM-Sub Mission on
—Benefits of pension and insurance Nutri-cereals, 6. NFSM-Commercial crops,
 'Small Farmers Development Programme' was started in 7. NFSM-Oilseeds and Oilpalm,
the year —1971 8. NFSM-Seed Village Programme
 This is true for National Food Security Act  Under this law, the State Food Commissions are estab-
— It provides legal entitlement to 67 percent of lished —National Food Security Act, 2013
population at subsidised food; It has four schedules  As per Economic Survey 2020-21, States in decreasing
 With reference to the National Food Security Act, the order of milk production are
correct statements are : — Madhya Pradesh > Gujarat > Punjab > Haryana
— It will cover upto 75 percent rural and 50 percent  The top 5 States in milk production in 2021-22 are :
urban population; Special focus on nutritional — 1. Rajasthan, 2. Uttar Pradesh, 3. Madhya Pradesh,
support to women and children; Eldest woman of 4. Gujarat, 5. Andhra Pradesh
above 18 years age will be head of household  The correctly matched pairs are as follows :
 With reference to the provisions made under the National Animal Breed
Food Security Act, 2013, the correct statements are : Buffalo – Bhadawari
— The eldest woman in a household, of age 18 years or Cow – Sindhi
Goat – Jamunapari
above, shall be the head of the household for the purpose
Cow – Tharparkar
of issuance of a ration card; Pregnant women
 The most important fish industry in India is
and lactating mothers are entitled to a ‘take-home
ration’ of 600 food calories (Kcal) — At natural inland
per day during pregnancy and for six months thereafter  The largest producer country of fish in the world is
 The correct statements are : —China
—The Food Safety and Standards Act, 2006 replaced the  The ‘blue revolution’ is related with —Fish production
Prevention of Food Adulteration Act, 1954; The Food  It is related to Blue Revolution in India — Pisciculture
Safety and Standards Authority of India (FSSAI) is  Black revolution is related to the —Crude oil production
under the administrative control of Union Ministry  Yellow Revolution is concerned with the production of
of Health and Family Welfare — Oilseeds
GS Pointer Economic & Social Development E–11
 ‘Yellow Revolution’ is related with  National Agriculture Technology Project (NATP) was
—Rapeseed-Mustard production funded in India by —World Bank
 White Revolution is related with — Milk production  With reference to 'Pradhan Mantri Fasal Bima Yojana', the
 The correctly matched lists are as follows : correct statement is
Revolution Related with — This scheme covers post-harvest losses arising
Golden Revolution – Horticulture and Honey out of the cyclones and unseasonal rains
Grey Revolution – Fertilizers  Crop Insurance Scheme in India was started in —1985
Yellow Revolution – Oilseed production  National Agricultural Insurance Scheme replacing
Black Revolution – Petroleum production Comprehensive Crop Insurance Scheme was introduced
 Father of Green Revolution in the World is in the year —1999
—Norman E. Borlaug  National Agricultural Insurance Scheme was launched in
 In the context of India, the man who is known as Father of the year —1999-2000
Green Revolution — M.S. Swaminathan  In this financial year, the Union Budget proposed to extend
 Indian Green Revolution started from —Pantnagar the National Agriculture Insurance Scheme to Kharif crop
 The persons who are associated with the Green Revolution as well —2004-05
when its started in India  Weather Based Crop Insurance scheme was first\
— M.S. Swaminathan, C. Subramaniam, Indira Gandhi implemented in —Karnataka
 This most appropriately describes the nature of Green  The correct Statements are :
Revolution of late sixties of 20th century — Varsha Bima, the rainfall insurance scheme,
— Seed-Fertilizer-Water technology is managed by the Agriculture Insurance Company of
 The reason for increase in price of foodgrains India Ltd. (AICIL); The scheme was introduced
distributed through public distribution system is to during the 2004 South-West monsoon period
—Lesson the burden of subsidy involved in scheme  Crop Insurance schemes are implemented by
 Operation Flood is related to —Milk production —Agriculture Insurance Company of India (AIC) and
 Self-sufficiency in food, in the true sense of freedom from other empanelled public and private sector
hunger, has not been achieved in India inspite of a more general insurance companies
than three-fold rise in foodgrains production over 1950-  The correct statements are :
1990. These were the reasons for it : — The Crop Insurance Scheme in India was started in
— The green revolution has been restricted to small the year 1985; The total number of agro-climatic
pockets of the country; The cost of food is too high zones in U.P. is 9; Food for Work Programme
compared to the earnings of the poor; Too much was started in the year 1977
emphasis is laid on wheat and paddy compared to the  Hariyali Yojana is related to —Watershed Management
coarse grains  'Vishesh Krishi Upaj Yojana' is related to
 The States of India which have derived maximum benefits —Export of agricultural products
from green revolution  'Rashtriya Vishesh Krishi Upaj Yojna' is mainly concerned
—Punjab, Haryana & U.P. (Western) with —Exportable agricultural produce
 The Second Green Revolution proposed by the Prime  These are correct regarding the Pradhan Mantri Krishi
Minister does not include Sinchai Yojana
—Encourage foreign direct investment in agriculture —Repair and renovate water bodies; Construction of
 This agriculture practice is eco-friendly wells; Enhancement of recharging of aquifiers;
—Organic farming Construction of structures of rain harvesting
 With reference to 'Initiative for Nutritional Security through  The objective of PM-KUSUM Scheme is
Intensive Millets Promotion' the correct statements are : — To remove farmers' dependence on diesel and
— This initiative aims to demonstrate the improved kerosene and to link pump sets to solar energy
production and post-harvest technologies, and to  National Land Records Modernization Programme
demonstrate value addition techniques, in an (NLRMP) was launched in —2008
integrated manner, with cluster approach; Poor,  Rainfed Area Development Programme (RADP) was
small, marginal and tribal farmers have larger launched by the Department of Agriculture and
stake in this scheme Cooperation, Government of India in the year —2011-12

GS Pointer Economic & Social Development E–12

 Handbook of Agriculture is published by — I.C.A.R.  The F.R.P. of sugarcane is recommended by
 U.P. Council of Agricultural Research is located at —Commission for Agricultural Costs and Prices (CACP)
—Lucknow  The economic cost of foodgrains to the Food Corporation
 The market of Agricultural Products in India is regulated of India is Minimum Support Price and bonus (if any) paid
by —Agricultural Produce Market Committee to the farmers plus
Act enacted by States —Procurement incidentals and distribution cost
 NAFED is mainly connected with  The correct statements are :
—Agricultural marketing — The Commission for Agriculture Cost and Prices
 The apex organization for marketing cooperatives at the recommends the Minimum Support Prices for 22
national level is —NAFED crops and FRP for sugarcane; The Union Ministry of
 Among the NAFED, State Trading Corporation, IFFCO Agriculture and Farmers' Welfare has launched the
and MMTC, this agency is not engaged in exporting National Food Security Mission
agricultural goods from India —IFFCO  Consider the following :
 In India, markets in agricultural products are regulated 1. Areca nut 2. Barley
under the —Agricultural Produce Market Committee 3. Coffee 4. Finger millet
(APMC) Acts enacted by States 5. Groundnut 6. Sesamum
 Golden rice has been made richer in —Vitamin A 7. Turmeric
 Demand of most agricultural products is found to be The Cabinet Committee on Economic Affairs has an-
—Inelastic nounced the Minimum Support Price for which of the above
 First Agricultural University in India was established —2, 4, 5 and 6 only
at —Pantnagar  Since 1997-98, this is correct regarding Minimum Support
 The correctly matched pairs are as follows : Price (MSP) —MSP > C2 costs
National Agricultural Innovation Project – 2006  It determines the minimum support price in India
Krishi Vigyan Kendra – 1974 — Commission for Agricultural Costs and Prices
National Agricultural Technology Project – 1998  The Agricultural Prices Commission (APC) was set up in
Lab to Land Programme – 1979 the year —1965
 Indian Institute of Vegetable Research is located at  ACP was renamed as CACP (Commission for Agricultural
—Varanasi Costs and Prices) in — 1985
 Central Food Technological Research Institute is located  Minimum Support Price is decided by — CACP
at —Mysuru  It makes recommendation regarding fixing of minimum
 National Academy of Agricultural Research Management support price for various crops
(NAARM) is located at —Hyderabad —Commission for Agricultural Costs and Prices
 Indian Grassland and Fodder Research Institute is located  It recommends support price of the wheat
at —Jhansi —Commission for Agricultural Costs and Prices
 Headquarters of International Potato Centre (CIP) is  Institution which recommends support prices of
situated in —Lima, Peru foodgrains
 In this State 'Neeru-Meeru' water harvesting programme —Commission for Agricultural Costs and Prices
was launched in the year 2000 —Andhra Pradesh  These are the objectives of the Commission for Agricultural
 The correct statements are : Costs and Prices (CACP)
— The Union Government determines the Fair and — To stabilize agricultural prices; To ensure
Remunerative Price (FRP) of sugarcane for each sugar meaningful real income levels to the farmers;
season; Sugar and sugarcane are essential commodi- To protect the interest of the consumers by
ties under the Essential Commodities Act providing essential agricultural commodities at
 ‘Fair and Remunerative Price’ is related to this crop reasonable rates through public distribution system
— Sugarcane  Public procurement of food grains at support prices
 The Fair and Remunerative Price (F.R.P.) of the sugarcane ensures the following:
is approved by — Stability in farm prices; Remunerative prices to the
—Cabinet Committee on Economic Affairs (CCEA) farmers; Building food stocks for public distribution
GS Pointer Economic & Social Development E–13
 The correct statements regarding the Minimum Support  Long-term agricultural credit is provided by
Price are : —Land Development Bank
— If the market price is low, then farmers can sell  This is the largest source of agricultural credit in India in
their produce to the government; This ensures recent years —Commercial Banks
minimum fixed prices for the farmers' yields;  Followings are the sources of institutional credit to
It is helpful in Food Security Mission agriculture in India :
 The Minimum Support Price fixed by the Government for 1. Co-operative Banks
the purchase of wheat in Rabi Marketing Season (RMS) 2. Regional Rural Banks
2023-24 is —Rs. 2125/quintal 3. Commercial Banks
 The Minimum Support Price (MSP) during 2022-23 for The correct sequence in descending order of their
paddy per quintal (common) is —Rs. 2040 importance is —3, 1, 2
 This State of India has recently (in 2020) decided to fix a  In India, this have the highest share in the disbursement
Minimum Support Price (MSP) for fruits and vegetables of credit to agriculture and allied activities
—Kerala —Commercial Banks
 Minimum Support Price for groundnut announced by the  Among the Commercial Banks, Foreign Private Banks,
Government of India for 2022-23 is —5850 Rs/quintal Cooperative Banks and Regional Rural Banks, this is
 The price at which the Government purchases foodgrains, providing least institutional credit to agriculture and allied
is —Procurement Price activities in recent years —Foreign Private Banks
 The prices at which the government purchases foodgrains  To improve institutional agricultural credit flow, this credit
for maintaining the public distribution system and for target for 2022-23 and 2023-24 has been fixed in the Union
building up buffer-stock is known as Budget of India
— Procurement Prices —Rs. 18 lakh crore and Rs. 20 lakh crore respectively
 Among the Tobacco, Cotton, Soyabean and Rubber, it is  Under the Kisan Credit Card scheme, short-term credit
not a cash crop — Soyabean support is given to farmers for these purposes
 At present, the effective rate of interest for farmers on timely — Working capital for maintenance of farm assets;
repayment of short term (upto one year) bank loan upto Consumption requirements of farm
Rs. three lakh is —4 percent households; Post-harvest expenses
 Among the seed, fertilizer, irrigation water and land  Kisan Credit Card Scheme was announced in the year
revenue, it is not included in running cost capital of a farm —1998-99
—Land revenue  The correct statements about Kisan Credit Card Scheme
 This does not contribute to the rural economy are — The Kisan Credit Card scheme was
—Practice of lending personal money launched in the year 1998-99; This scheme provides
 The main principles of agriculture finance are adequate and timely credit support to the farmers
— Objective (Purpose), Person and Productivity Planning for their cultivation needs
 Institutional sources of agricultural finance in India  Consider the following events and arrange them in
—Cooperative Societies and Banks, Commercial chronological order :
Banks, Regional Rural Banks 1. Establishment of NABARD
 The farmers are provided credit from a number of sources 2. Self Help Group Bank Linkage Programme
for their short-and long-term needs. The main sources of 3. Kisan Credit Card Plan
credit to the farmers include 4. Establishment of Regional Rural Bank
—Primary Agricultural Cooperative Societies, The correct answer is —4, 1, 2, 3
Commercial Banks, RRBs and private money-lenders  The New Package for Agriculture announced by the UPA
 The correct statements are : Government does not provide
– In terms of short-term credit delivery to the —Concession in loan payment
agriculture sector, Scheduled Commercial Banks  Government of India has taken a decision to set up a Price
deliver more credit in comparison to District Stabilisation Fund in 2003 for the growers of
Central Cooperative Banks (DCCBs) and Regional —Coffee, Tea, Rubber and Tobacco
Rural Banks; One of the most important functions  At present, these crops are covered for price control un-
of DCCBs is to provide funds to the Primary der the price stabilization fund of the Government of India
Agricultural Credit Societies — Potato, Onion, Pulses
GS Pointer Economic & Social Development E–14
 With reference to the management of minor minerals in  The correct statements with reference to Indian Railways
India, the correct statements are : are : — Achieving 100 percent electrification by 2023;
—Sand is a ‘minor mineral’ according to the A net zero carbon emission network by 2030
prevailing law in the country;  In India, the first rubber based tyre Metro is being built in
State Governments have the power to frame rules —Nashik
related to the grant of minor minerals and  The first showroom in India of the retail furniture giant
to prevent illegal mining of minor minerals
'Ikea' was opened in this city in 2018 —Hyderabad
Industrial Sector  In this district of Madhya Pradesh Industrial Develop-
ment Centre Banmore is situated —Morena
 With reference to ‘PM Gati Shakti Scheme’, these state-  These two cities of Madhya Pradesh are included in 'town
ments are correct of export excellence' —Dewas & Indore
-- The PM Gati Shakti Scheme-National Plan was  The chairman of the committee on revisiting and revitaliz-
launched in 2021; The PM Gati Shakti Scheme ing the PPP model of Infrastructure development was
pertains to seven engines (Roads, Railways, —V. Kelkar
Airports, Ports, Mass Transport, Waterways,  This infrastructure sector of India is related with Bharatmala
Logistics Infrastructure) of NIP will be aligned
Project —Road infrastructure
with PM Gati Shakti Framework
 Assertion (A) : Government has launched the 'National
 The first Indian Private Sector Company to find place
Infrastructure Pipeline (NIP)' for period of 2020-30.
in Global 500 list of ‘Fortune Magazine’ in 2006
Reason (R) : The objective of NIP is to provide equitable
—Reliance Industries Ltd.
access to infrastructure for all.
 In the list of 2022 of Fortune 'Global 500', Walmart is at the
top, while in Indian companies, top 3 are —(A) is false, but (R) is true
– L.I.C. of India, Reliance Industries, Indian Oil  This industrial/economic corridors of India are being de-
 According to Fortune India List of 500 Companies/ veloped in collaboration with Japan
Corporations, the biggest Company/Corporation in 2022 —Delhi-Mumbai and Chennai-Bega
was —Reliance Industries Ltd.  These purpose for which the Deepak Parekh Committee
 The correct statements are : was constituted—To suggest measures for financing the
— Petroleum and Natural Gas Regulatory Board development of infrastructure
(PNGRB) is a regulatory body set up by the Govern-  According to recent data released by Indian Cellular
ment of India in 2006; One of the tasks of PNGRB Association (ICA), India has acquired this position in the
is to ensure competitive markets for gas; Appeals world in producing mobile phones —Second
against the decisions of PNGRB go before the  With reference to ‘National Investment and Infrastructure
Appellate Tribunals for Electricity Fund’, the correct statements are :
 With reference to the Corporate Social Responsibility — It is an organ of NITI Aayog; It has a proposed
(CSR), the correct statements are :
corpus of Rs. 40000 crore
— Companies Act 2013, introduces mandatory CSR;  The National Manufacturing Policy (NMP) released by
Companies covered under this will have to spend at
the Government of India on — 4 November, 2011
least two percent of their average net-profit for the
 National Manufacturing Policy was introduced by the
past three years in the activities under CSR
 The country which has made Corporate Social Respon-
Government of India in — 2011
 These are the objectives of National Manufacturing Policy,
sibility Act first —India
 These statements are correct about Uday Kotak Committee: 2011 :
—It was instituted by SEBI; It relates to corporate – To increase manufacturing sector growth to 12-14
governance; It recommends that at least half of the percent over the medium turn; To create 100 million
company's board must comprise independent additional jobs by 2025 in manufacturing sector; To
directors; It recommends that the post of chairman enhance global competitiveness of Indian manufactur-
and managing director should be separated ing through appropriate policy support

GS Pointer Economic & Social Development E–15

 The recent policy initiative(s) of Government of India to  In India, this one compiles information on industrial dis-
promote the growth of manufacturing sector are : putes, closures, retrenchments and lay-offs in factories
– Setting up of National Investment and Manufacturing employing workers — Labour Bureau
Zones; Providing the benefit of ‘single window  With reference to ‘Quality Council of India (QCI)’,
clearance’; Establishing the Technology the correct statements are :
Acquisition and Development Fund
– QCI was set up jointly by the Government
 India’s first ‘National Investment and Manufacturing Zone’
of India and the Indian Industry; Chairman of
was proposed to be set up in —Andhra Pradesh
QCI is appointed by the Prime Minister on the
 These statements are correct about ‘Make in India’
Programme recommendations of the industry to the Government
— ‘Make in India’ Programme was launched in the year  The correct chronological sequence of the following en-
2014; It aims at encouraging companies for actments in India is :
manufacturing in India and facilitating investment 1. MRTP Act
 The Government policy ‘Make in India’ aims at 2. Industries (Development and Regulation) Act
—Removal of bureaucratic sloth; Reduction in cost 3. FERA
of manufacturing; Elimination of red tapism; 4. Minimum Wages Act —4, 2, 1, 3
Making the Indian products competitive Act Year
 'The Make in India' Programme was started in MRTP Act – 1969
—September, 2014 Industries (Development
 Logo of 'Make in India' is — Silhouette of a Lion and Regulation) Act – 1951
 Among the Make in India, Ease of Doing Business, Start-
FERA – 1973
up India and Digital India, it is not an initiative for indus-
Minimum Wages Act – 1948
trial development —Digital India
 Assertion (A) : In the past few years, there is a lot of
 The specific requirements of the ‘start-ups’ can be ful-
merger and acquisition going on in Indian Industrial sector.
filled through
—Angel investors, Venture capital, Crowd funding Reason (R) : There has been considerable dilution in
 "Initially the specific requirements of the Start-up can be MRTP Act provisions.
fulfilled through the new age financing alternatives " has —Both (A) and (R) are true, and (R)
been suggested by —Pranab Mukherjee is the correct explanation of (A)
 With reference to 'Stand-Up India Scheme', the correct  The Trade Disputes Act of 1929 provided for
statements are : —A system of tribunals and a ban on strikes
– Its purpose is to promote entrepreneurship  As per the Industrial Employment (Standing Orders)
among SC/ST and women entrepreneur; Central (Amendment) Rules, 2018, the correct statements
It provides for refinance through SIDBI are : – If rules for fixed-term employment are imple-
 ‘Stand-up-India’ scheme for promoting entrepreneurship mented, it becomes easier for the firms/companies to lay
is related to — Women, SC and ST off workers; No notice of termination of employment shall
 ‘Stand-up India’ Scheme’s purpose is
be necessary in the case of temporary workman
—To encourage entrepreneurship among  The correct statements are
the SC/STs and women entrepreneur
– The Factories Act, 1881 was passed with a view to
 Pradhan Mantri Mudra Scheme is aimed at
improve working conditions of labour and it had not
—Bringing the small entrepreneurs
into formal financial system provisions for fix the wages of industrial workers
 The Mudra Yojna of the Government of India is designed and to allow the workers to form trade unions;
to —Provide easy financial assistance N.M. Lokhande was a pioneer in organizing
to set up small business the labour movement in British India
 The loan amount which will be granted by banks under  These labour related Acts have been amalgamated into
Pradhan Mantri Mudra Yojana for industry, business and the 'Code on Wages, 2019'
services under Kishor Enterprise is — Minimum Wages Act; Payment of Wages Act;
—More than Rs. 50,000 and up to Rs. 5,00,000 Payment of Bonus Act; Equal Remuneration Act
GS Pointer Economic & Social Development E–16
 With reference to casual workers employed in India, the  The correct statements are :
correct statements are : — Coal sector was nationalized by the Government of
– All casual workers are entitled for Employees India under Indira Gandhi; Now, coal blocks are allo-
Provident Fund coverage; All casual workers are cated by way of public auction; At present, India is
entitled for regular working hours and overtime importing coal to meet the shortages of domestic sup-
payment; The government can by a notification ply, as India is not self-sufficient in coal production
specify that an establishment or industry shall pay  Among the large industry, small scale industry, micro in-
wages only through its bank account dustry, medium size industry and construction industry,
 With effect from 1 April, 2023 the minimum wage for this is not included in manufacturing sector
unskilled labour in Uttar Pradesh has been fixed at —Construction Industry
— Rs. 10089 per month  In this year, the latest classification of MSME was done
 The share of industry in GDP of India is —2020
—Between 25-30 percent  The correct statements about revision in classification of
(in 2nd A.E. of 2022-23: 28.3%) Micro, Small and Medium Enterprises (MSME) in 2020 are :
 What was the industrial growth rate of India during — The Government of India announced a revision in
2022-23 (1st A.E.) with 2011-12 as the base year MSME definition in the Atmanirbhar Bharat Package
—4.1 percent on 13th May, 2020; The change in definition is
 Assertion (A) : There was an increase in industrial effective from 1st July, 2020; The new definition
production during 1999-2000.
has the same formula of classification of
Reason (R) : The period witnessed a stable exchange rate
manufacturing and service units
and improved business sentiments.
 In Industrial Policy of 1991, the investment amount for
—Both (A) and (R) are individually true,
small scale industries approved for general and auxiliary
and (R) is the correct explanation of (A)
 Among the Manufacturing, Mining, Electricity and
units was —Rs. 60 lakh, Rs. 75 lakh
 In India, at present businesses with an investment upto
Construction activities, it has not been included in the
Rs. 1 crore and turnover upto Rs. 5 crore are known as
Industrial Poduction Index of India — Construction
 This is not included in the Index of Industrial Production —Micro Enterprise
(IIP), which is the measure of industrial activities in the  This partly defines the micro-enterprise in India
Indian Economy —Gas and water supply —Investment in Plant and Machinery or
 This agency releases the Index of Industrial Production to equipment not more than Rs. 1 crore
measure industrial performance in India  Micro, Small and Medium Enterprises Development
—National Statistical Office (NSO) (MSMED) Act was passed in the year —2006
 The series for the Index of Industrial Production (IIP),  The limit of capital investment for small scale industries as
which was released by Government of India on 10th June per New Industrial Policy, 1991 was —Rs. 60 lakh
2011, had changed the base year from 1993-94 to  At present, investment in Plant and Machinery in a small
—2004-05 scale manufacturing unit should be
 Index of Industrial Production (IIP)'s current base year is —Not more than Rs. 10 crore
—2011-12  As per the Micro, Small and Medium Enterprises
 In India, in the overall Index of Industrial Production, the Development Act, 2006, medium enterprises in
Indices of Eight Core Industries have a combined weight manufacturing sector were defined as those with the
of 40.27%. These Eight Core Industries are investment of —Rs. 5 crore to Rs.10 crore
— Cement, Fertilizers, Natural Gas, Refinery  At present, this is the prescribed investment limit for
Products, Coal, Crude Oil, Steel and Electricity medium enterprises as per the revision in classification of
 This is not included in 8 Core Sectors in India Micro, Small and Medium Enterprises in 2020
— Chemicals —More than Rs. 10 crore but not
 In the 'Index of Eight Core Industries', these are given the more than Rs. 50 crore
highest weight —Refinery Products (28.0376%),  Investment limit for micro enterprises, provided for in the
Electricity (19.8530%) and Steel (17.9166%) Act passed in 2006 was
 During the year 2021-22, this industry recorded the highest —Rs. 25 lakh for manufacturing sector and
growth rate in India — Cement Rs. 10 lakh for services sector

GS Pointer Economic & Social Development E–17

 This State had the largest number of registered factories  This Indian state has the largest number of Cotton
—Tamil Nadu Textile Mills —Tamil Nadu
 Small-scale industries are, in most cases, not as efficient  In India, the highest production of mill-made cotton cloth
and competitive as the large-scale ones. Yet the comes from — Gujarat
Government provides preferential treatment and  The oldest large scale industry of India is
reservations in a range of products to the small firms —Cotton textiles
because small-scale industries  The first industry to develop in India was the
— Provide higher employment on a per unit capital —Cottage industry
deployment basis and promote a regional dispersion  This industry is regarded as the most basic for our modern
of industries and economic activities civilization — Iron and Steel
 For a developing country like India small scale and cottage  The industry for which Nepanagar is known is
industries should be encouraged primarily because they —Newsprint paper
—Generate large employment opportunities  The Hazira Fertilizer Factory is based on —Natural Gas
 Small Scale and Cottage Industries are important,
because — They provide more employment  This statement is not correct about the fertilizer industry
 Among the Textile, Paper, Handloom and Jute Industries, of India — India is self-reliant with respect
the most important small scale industry in India is to chemical fertilizers
—Handloom  These places are known for paper manufacturing industry
 The largest industry of Uttar Pradesh in terms of — Yamunanagar, Guwahati and Ballarpur
employment is —Handloom  Though a few (gas-based) industries have already been
 From this sector, largest quantity of cotton textile is established, good reserves of natural gas in India remain
produced in the country — Powerloom unutilized. This vast resource of natural gas can be used
 These are the problems of Small Scale Industries in the production of —Fertilizers
—Lack of capital; Lack of marketing  The Oil and Natural Gas Commission (ONGC) was set up
experience; Lack of raw materials in —1956
 This is not the problem of Small Scale Industries (SSIs)  OIL (Oil India Limited) is an enterprise involved in
—Strikes and lockouts —Oil exploration
 The Head Office of Small Industries Development Bank of  With reference to the Public Sector Undertakings in India,
India (SIDBI) is located at —Lucknow the correct statements are :
 The correctly matched lists are as follows : — Minerals and Metals Trading Corporation of India
Committee Formation (Year) Limited is the largest non-oil importer of the
Nayak Committee – 1991 country; Project and Equipment Corporation of
Abid Hussain Committee – 1995 India Limited is under the Ministry of Industry;
S.S. Kohli Committee – 2000 ECGC Limited (Formerly Export Credit Guarantee
Karve Committee – 1955 Corporation of India Limited) provides export credit
 Nayak committee is related to —Small industries insurance support to Indian exporters. It is not
 This committee recommended the abolition of reservation related to enforcing quality control and compulsory
of items for the small scale sector in industry pre-shipment inspection
—Abid Hussian Committee  The correct statements are
 Abid Hussain Committee was related to — MMTC Limited is India’s largest international
—Small and medium industries trading organization; Neelanchal Ispat Nigam
 The contribution of India's manufacturing MSMEs in the Limited has been set-up by MMTC jointly
country's total manufacturing GVO at current prices is with the Government of Odisha
—Around 33%  This is the largest trading Government Company of India
 Among the sugar, cotton textile, jute and cement, this sec- —Minerals and Metals Trading Corporation (MMTC)
tor got high rate of growth in its cooperative units  With reference to the functions of Public Sector in India,
—Cotton textile the correct statements are :
 In India, maximum number of workers are employed in — To provide public utility resources; To build social
—Textile Industry and economic overhead capital; To ensure
 This industry provides the maximum employment in India balanced regional and sectoral growth;
—Textiles To pursue egalitarian goals

GS Pointer Economic & Social Development E–18

 The correct statements about public sector in India:  Among the BHEL, IOC, CIL and OIL, these enjoy
— In the public sector of India, there are basic and ‘Maharatna’ status —All of these
heavy industries; All industries of the public  In this year Bharat Heavy Electricals Limited (BHEL) was
sector are not profit-orientedl; Jobs are received the status of Maharatna Company — 2013
secured in the industries of the public sector  The Government of India announced a 'Maharatna'
 In India the Public Sector is most dominant in scheme for giving more autonomy and power to expand
—Commercial banking to some of its 'Navratnas' in the financial year
 Among the NTPC, SAIL, BHEL and TISCO, it is not a —2010-11
public sector undertaking/enterprise —TISCO  Among the Indian public sector undertakings SAIL, BEL,
 It is not a Public enterprise —Leather Factory, Gwalior ONGC and NTPC, it has not received the 'Maharatna' status
 Among the SAIL, BHEL, ONGC and ESSAR OIL, it is not —BEL
of the same category (public sector company)  As on 5 August, 2023, the Maharatna Companies in India
—ESSAR OIL (now Nayara Energy) are —13
 At present, the Government holding in BPCL is —52.98%  As on 5 August, 2023, the Navratna Companies in India
 Which of the following are the public sector undertakings are —14
of the Government of India  Among the Coal India Ltd., Bharat Heavy Electricals Ltd.,
1. Balmer Lawrie and Company Ltd. Bharat Electronics Ltd. and Gas Authority of India Ltd., it
is included in ‘Navratna’
2. Dredging Corporation of India
3. Educational Consultants of India Ltd. (EDCIL)
—Bharat Electronics Limited
 Among the SAIL, GAIL and MTNL the Public Sector
—1 and 3 only
 Which among the following is in the Private Sector
undertaking included in ‘Navratna’ is —MTNL
 This company has not been accorded status of ‘Navratna’
1. Bongaigaon Refinery 2. Manglore Refinery
—Indian Aluminium Company Limited
3. Haldia Refinery 4. ESSAR Oil Ltd.
 Among Aluminium Companies – NALCO, BALCO,
— Only 4 HINDALCO and MALCO, it has been given 'Navaratna
 Which of the following oil refineries are in the public sector
Status' by the Government of India —NALCO
1. Digboi Oil Refinery 2. Barauni Oil Refinery
 The maximum amount which has been provided as financial
3. Nunmati Oil Refinery 4. Mathura Oil Refinery
autonomy by the Ministry of Heavy Industries and Public
—All of these Enterprises of Union Government to the 'Mini Ratna',
 HAL is related to manufacturing of —Aircrafts Category-I —Rs. 500 crore
 Among the MMTC, MTNL, NCL and NHPC, it is related  Six more Public Sector Undertakings have been accorded
with the field of electricity generation —NHPC status of Miniratna by the Government of India (September
 The development of tourism and hotel industry in India is 2006).This is not included amongst them
the function of —Indian Telephone Industries
—I.T.D.C. (India Tourism Development Corporation)  The correctly matched pairs are as follows :
 In this year the BSNL was established —2000 Aluminium Plants Location
 Among the BSNL, NTPC, BHEL and SBI, in this Public Bharat Aluminium Company – Korba
Sector Enterprise the Government has 100% equity Limited (BALCO)
—BSNL Indian Aluminium Company – Hirakud
 In 2021-22, the top 3 loss making Central Public Sector Limited (INDAL)
Enterprises (CPSEs) were Madras Aluminium Company – Mettur
—1. Bharat Sanchar Nigam Ltd. Limited (MALCO) (Salem)
2. Mahanagar Telephone Nigam Ltd. Hindustan Aluminium Corporation – Renukoot
3. Air India Assets Holding Ltd. Limited (HINDALCO)
 The Gas Authority of India Ltd. had planned to invest  The Apex institution in the field of Industrial finance in
Rs. 8,000 crores for laying pipelines from India is —Industrial Development Bank of India
—Vijayawada to Vijaipur  Helpline 'Udyami' is meant for
 This now decide the oil-prices in India —Oil companies —Micro, small and medium enterprises
 The concept of 'Navratna' is associated with  Headquarter of Madhya Pradesh Finance Corporation is at
—selected Public Sector Enterprises —Indore
GS Pointer Economic & Social Development E–19
 Long term credit to small and medium enterprises is  Concept of 'Joint Sector' for industrial development of
provided in Uttar Pradesh through India was envisaged in Industrial Policy Resolution of
—U.P. Small Industries Corporation, U.P. State —1956
Industrial Development Authority and  The licensing policy for the industries drew strength
U.P. Financial Corporation from —Industries Act 1951
 The U.P. Financial Corporation does not finance  In India, liberal Industrial Policy was adopted in the
—Tourism related industries year —1991
 'Udyog Bandhu' is an  Assertion (A): Many industries in India have obtained
— Organization to assist industrial units in ISO 9001 and ISO 9002 certification in the recent past.
solving time-bound establishment and Reason (R) : There has been considerable liberalization in
investment related problems the licensing policy of the Government of India.
 This region of the Uttar Pradesh has developed most from —Both A and R are true, but R is
the industrial point of view —Western not the correct explanation of A
 BIFR was related to  According to 1991 Industrial Policy, the number of indus-
—Reconstruction and financing of sick units tries for which licensing was necessary, were —18
 Mega Food Parks scheme has been initiated by the  The number of industries for which industrial licensing is
Government of India with the objective required has now been reduced to —4
 The Policy of liberalization, privatization and globalization
—To improve infrastructure facilities
was announced as New Economic Policy by Prime
for food processing industries
 With this purpose the Government of India is promoting
Minister —Narsimha Rao
 The Industrial Policy, 1991 was criticized on a number of
the concept of 'Mega Food Parks'
points. This was not one of them
— To provide good infrastructure facilities for the food
—Neglect of agriculture sector
processing industry;To increase the processing of
 The Industrial Policy, 1991 was criticized on these points
perishable items and reduce wastage
—Erratic industrial growth; Threat from foreign
 This is a social objective of business
competition; Misplaced faith in foreign investment
—Employment generation  Some time back, the Government of India, decided to
 The companies go for business process re-engineering delicense 'white goods' industry. 'White goods' include
with the help of technology because —Items purchased for conspicuous consumption
—Customers' demand and expectations are  In the context of India’s Five Year Plans, a shift in the
continuously increasing; IT being leveraged pattern of industrialization, with lower emphasis on heavy
to provide competitive edge in products and industries and more on infrastructure begin in
services at lower costs; The pace of change — Eighth Plan
has accelerated with the liberalization  The largest centre of textile industry in India at present is
of economies world over —Mumbai
 The correctly matched lists are as follows :  A company declares dividend on —Subscribed Capital
Type of Organization Important Features  From the balance sheet of a company, it is possible to
Sole trader – Unlimited liability —Determine the size and composition of
Partnership – Contractual Relationship the assets and liabilities of the company
Co-operatives – Betterment of weaker sections  This group of goods is not included in FMCG (Fast
Public Limited – Large number of risk bearers Moving Consumer Goods)
Company —Automobile (Car and Motor Cycle)
 Venture capital means  These group of goods are included in FMCG
—A long-term start-up capital provided —Toiletries, Dairy Products, Bakery Products
to new entrepreneurs  The correctly matched lists are as follows :
 This statement appropriately describes the 'fiscal stimulus' Industries Industrial Centres
—It is an intense affirmative action of the Government Pearl fishing – Tuticorin
to boost economic activity in the country Automobiles – Pune
 The first Industrial Policy of the free India was announced Ship-building – Mormugao
in —1948 Engineering goods – Pinjore

GS Pointer Economic & Social Development E–20

 This mode of privatization is the most comprehensive and  The centres of cement industry and theirs States :
complete —Transferring ownership and management Sikka – Gujarat
to the private sector Katni – Madhya Pradesh
 Assertion (A) : Disinvestment is an integral part of Churk – Uttar Pradesh
liberalization of economy in India. Tirunelveli – Tamil Nadu
Reason (R) : The proceeds are being used according to  The correctly matched lists are as follows :
stated policy. —Both A and R are true, but R is Place Industrial Centre
not a correct explanation of A Vishakhapattanam – Ship-building
 Assertion (A): The Government is resorting to Muri – Aluminium
disinvestment of some of the public sector units (PSUs). Gurugram – Automobiles
Reason (R): PSUs have not generated enough employ- Panki – Fertilizers
ment opportunities. —A is true, but R is false  The correctly matched lists are as follows :
 Disinvestment in Public Enterprises started from this Centres Industries
financial year —1991-92 Aonla – Fertilizers
 Among the Bhilai, Bokaro, Jamshedpur and Bhadravati
Modinagar – Rubber
Iron and Steel Plants, this is not located on a riverside
Barabanki – Polyfibre
—Bhilai Kanpur – Explosives
 The Bhilai Steel Plant has been established with the
 The correctly matched lists are as follows :
assistance of —Soviet Union (USSR) City Industry
 Bhilai Steel Plant is a-----------enterprise.
Coimbatore – Cotton Textiles
—Public Sector Rourkela – Iron and Steel
 Rourkela Steel Plant was established in collaboration with
Kapurthala – Rail Coach
—Germany (West Germany) Barauni – Petroleum Refining
 Bokaro Steel Plant was established with the help of
 Correct matching of the lists is as follows :
—Soviet Union (USSR) Singrauli (Madhya Pradesh) – Coal
 The correctly matched pairs are as follows :
Kajarhat (Uttar Pradesh) – Cement
Rourkela – Germany (West Germany)
Koyali (Gujarat) – Oil
Bhilai – USSR (Soviet Union)
Anand (Gujarat) – Milk
Durgapur – UK
 The correctly matched pairs is as follows :
Bokaro – USSR (Soviet Union)
Bio-technology Park – Lucknow
 The correctly matched lists are as follows :
Tronica city – Ghaziabad
Bhilai – Chhattisgarh
Plastic city – Kanpur
Bokaro – Jharkhand
Leather Technology Park – Unnao
Durgapur – West Bengal  With reference to the National Investment Fund to which
Rourkela – Odisha the disinvestment proceeds are routed, the correct state-
 The correctly matched pairs are : ments are :
Integrated Steel Plant – Neelanchal Ispat Nigam – Certain Asset Management Companies are appointed
at Jajpur (Odisha) Ltd. as the fund managers; A certain proportion of annual
Power Plant at Jamnagar – Essar Power income is used for financing select social sectors
(Gujarat)  These are the purposes to which the National Renewal
Nabinagar Power Plant – Indian Railways & Fund has been set up
(Bihar) NTPC Ltd. – To restructure sick small industries; To help
Kayakulam Power Plant – NTPC Ltd. workers likely to be displaced due to retrenchment
(Kerala) in the process of industrial restructuring
 The Indian Diamond Institute (IDI) has been established  This is the objective of National Renewal Fund
at —Surat —To safeguard the interests of workers who
 Foreign equity holding allowed in small scale sector in may be affected by technological upgradation
1995-96 was — 24% of industry or closure of sick units

GS Pointer Economic & Social Development E–21

 The objectives of the National Renewal Fund set up in  Among the Gujarat, Maharashtra, Tamil Nadu and Uttar
February 1992 were Pradesh, this State enjoys ideal conditions for the
— To give training and counselling for development of petrochemical industries —Gujarat
workers affected by retrenchment  Assertion (A) : Coastal Gujarat has been called an
or VRS; Redeployment of workers industrial workshop.
 National Renewal Fund has been established for Reason (R): It is dotted with manufacturing units of
—Retraining of labour textiles and garments, pharmaceutical and petrochemicals.
— Both A and R are true, and R is
 National Renewal Fund (NRF) was constituted for the the correct explanation of A
purpose of —Social security  Participation of labourers in management means
 This is referred to as the ‘Golden Hand Shake’ — Participation in policy-decision making
—Voluntary Retirement Scheme  Among the Bhilai, Ranchi, Asansol and Durgapur, this
industrial town is located on the Chota Nagpur plateau
 Kandla, situated in the Gulf of Kutch, is well known for —Ranchi
—Asia's first Export Processing Zone  Dewas is famous for its —Printing of currency notes
 Industrial development in India, to an extent, is constrained  These are correctly matched :
by —Lack of savings to invest; Lack of technology, Setting up of the first – 1818 (Near Calcutta)
cotton Mill
skills and infrastructure; Limited purchasing
Manufacture of the first – 1870 (Near Calcutta)
power among the larger masses
machine-made paper
 CRISIL —Evaluates the credit worthiness of a company
Setting up of the first – 1904 (Near Madras)
 The term 'Base Erosion and Profit Shifting' is sometimes
cement factory
seen in the news in the context of
 Consider the following events
—Curbing of the tax evasion by I. Development of sugar industry by Indians
multinational companies II. Starting of first jute mill in Rishra
 A labour intensive industry is one that III. Production of steel in India for the first time
—Employs more hands IV. Starting of first textile mill in Bombay
 This groups is not co-partner of Industrial Relation Correct chronological order of these events is
—Consumers and their organizations —I, II, IV and III
 The largest producer of sugar in India (in 2021-22 Sugar  The correctly matched pairs are :
Season) is —Maharashtra Enterprises Industrial Groups
VSNL – Tata
 Among the Punjab, Andhra Pradesh, Haryana and Uttar
Mundra Sez – Adani
Pradesh, sugar industry is mostly developed in this State
CMC Ltd. – Tata
—Uttar Pradesh
IPCL – Reliance
 The President of Sugar De-control Committee was
 The multinational companies functioning in India are :
—C. Rangarajan —Samsung Corporation, L.G. etc.
 The correctly matched pairs are :  The correctly matched pairs are as follows :
Katni – Cement & Lime Stone Automobile manufacturer Headquarters
Surat – Cotton Textiles BMWAG – Germany
Churk – Cement Daimler AG – Britain (UK)
Ludhiana – Hosiery Renault SA – France
 The correctly matched lists are as follows : Volkswagon AG – Germany
Industry Production Centre  Assertion (A) : Information technology is fast becoming a
Jute Products – Titagarh very important field of activity in India.
Silk Textile – Bengaluru Reason (R) : Software is one of the major exports of the
Woollen- Hosiery – Ludhiana country and India has a very strong base in hardware.
Woollen Carpet – Bhadohi —A is true, but R is false
 HINDALCO, an aluminium factory located at Renukoot  The All India Khadi and Village Industries Board was set
owes its site basically to —Abundant supply of electricity up during the —1st Five YearPlan (in January, 1953)

GS Pointer Economic & Social Development E–22

 The head office of Khadi and Village Industries
Commission (KVIC) is located at —Mumbai Tertiary Sector
 The correctly matched pairs are as follows :
Goswami Committee – Problem of Industrial  In India Tertiary Sector includes
Sickness —Trade and Transport ; Finance and Real Estate
Janki Raman Committee – Probe of Share Scam  In India, Service Sector includes
Malhotra Committee – Reforms in Insurance — Transport and Communication; Hotels
Sector  Among the forestry, manufacturing farming and marketing,
Tarapore Committee – Full convertibility of Rupee it is a tertiary activity —Marketing
 Meera Seth committee was related to  These are included in the primary sector of Indian economy
—Development of Handlooms — Agriculture, Forestry & Fishing,
 Sathyam Committee was related with —Textile policy Mining & Quarrying
 The Chairman of the National Commission for Enterprises  Transport, Communication and Commerce come under
in the Unorganized Sector was —Arjun Sengupta the —Tertiary activities
 Rajasthan State Industrial Development and Investment  The largest source of National Income in India is
Corporation established in 1969 under the Companies Act —Service Sector
1956 helps to —Establish Industrial areas; Provide social
 The share of Tertiary Sector in GVA of Indian economy
infrastructure; Provide project report,
during 2022-23 (1st A.E.) at current basic prices was
project profile and managerial services
 Rajasthan State Industrial Development and Investment
—53.4% (132.06 lakh crore)
 With reference to the Indian economy, consider the
Corporation (RIICO) has signed a MOU with a Japanese
following activities
company for establishment of Japanese units in Neemrana
Industrial Area. That Japanese company is 1. Agriculture, Forestry and Fishing
— Japanese External Trade Organization (JETRO) 2. Manufacturing
 In the States of India, the State Finance Corporations have 3. Trade, Hotels, Transport and Communication
given assistance mainly to develop 4. Financing, Insurance, Real Estate and Business services
—Medium and Small Scale Industries The decreasing order of the contribution of these sectors
 The rank of India in 2021-22, in World Textile Exports is to the Gross Value Added (GDP) at current basic prices is
— Second —4, 1, 3, 2
 The correctly matched pairs (industry and industrialist)
Note : As per the 2nd Advance Estimates of National
are as follows :
Income, 2022-23, share of components of Gross Value
Reliance – Mukesh Ambani
Wipro – Azim Premji Added (GVA) at current prices is as follows :
Airtel – Sunil Bharti Mittal 2022-23 (2nd A.E.)
Nano Car – Ratan Tata 1. Services Sector 53.4%
 'e-Biz' refers to Trade, hotels, transport, communication
— Single window for approach to government services and services related to broadcasting 18.1%
 E-Commerce means —Trade on Internet Financial, real estate and professional
 This is the largest e-commerce company of India services 21.4%
—M-junction Public administration, defence and
 This is the largest software company in India
other services 13.9%
—TCS (Tata Consultancy Services)
2. Industry 28.3%
 The purpose of 'District Mineral Foundations' in India is
— Protecting the interests of the persons Mining & quarrying 2.4%
affected by mining operations Manufacturing 14.7%
 The term ‘Domestic Content Requirement’ is sometimes Electricity, gas, water supply and
seen in the news with reference to other utility services 3.0%
—Developing solar power production in our country Construction 8.2%
 With reference to the Indian Renewable Energy 3. Agriculture & Allied Sector 18.3%
Development Agency Limited (IREDA), the correct
statements are  During 2022-23, this service sector registered fastest
— It is a Public Limited Government Company; growth in India — Trade, Hotels, Transport,
It is a Non-Banking Financial Company Communication & Services related to Broadcasting

GS Pointer Economic & Social Development E–23

 Among the services sector, which has the highest share in  According to Economic Survey 2023 about services, these
the India’s GVA in 2022-23 statements are correct
—Financial, Real Estate & Professional Services -- Fashion, grocery and general merchandise will be
captured nearly two-third of the Indian e-commerce
 The largest share of Gross Domestic Product (GDP) in
market by 2027; P.M.I. services witnessed strongest
India comes from —Services sector expansion since July, 2022;75 digital banking units
Note : The share of components of GVA at current basic announced for transforming financial services; Credit
prices is as follows : growth to services is above 16% since July, 2022
2020-21 2021-22 2022-23  ‘TRAI’ is a regulatory body associated with this sector
Component —Telecom
(2nd R.E.) (1st R.E.) (2nd A.E.)
Agriculture &
Allied sectors 20.3 19.0 18.3
Fiscal Policy & Revenue
Industry 27.3 28.5 28.3  Along with the Budget, the Finance Minister also places
Services Sector 52.4 52.5 53.4 other documents before the Parliament which include 'The
Macro Economic Framework Statement'. The aforesaid
 This is the correct sequence in decreasing order of the
document is presented because this is mandated by
contributions of different sectors to the Gross Domestic
— Provisions of the Fiscal Responsibility and
Product of India —Services > Industry > Agriculture Budget Management Act, 2003
 This sector contributes most to the GDP of India  The gender budgeting was initiated in India in
—Tertiary sector — Union Budget 2005-06
 This sector of Indian economy has the highest contribution  Among the PM Gati Shakti, Inclusive Development and
to GDP (Gross Domestic Product) —Services sector Disinvestment, it is not included in the priorities of India
 The share of services in India's GDP and total employ- Budget 2022-23 — Disinvestment
ment in 2012-13 respectively were approximately  Among the export performance, the poor and the
underprivileged, youth and rural population, this was not
—57% and 28% included in the ten main themes of the Union Budget for
 In these States/UTs, the share of services sector in GSDP the financial year 2017-18 — Export performance
has been largest in 2019-20  Among the Transform India, Clean India, Educate India
—Chandigarh (74.00%), Delhi (68.22%) and Energise India, it was not included in the intended
 These statements are true about the Indian Economy objectives of the Union Budget, 2017-18— Educate India

— The share of services sector in India’s GDP is above Note : The Union Budget 2023-24 adopts the following
50%; About 55% (as per Census 2011) of India's seven priorities, which compliments each other and act
as the 'Saptarishi' guiding us through the Amrit Kaal :
working population is engaged in agriculture; India
(i) Inclusive Development, (ii) Reaching the Last Mile,
occupies only 2.4% of the world's geographical area
(iii) Infrastructure and Investment, (iv) Unleasing the
 The rank of growth rate of services sector of India in the Potential, (v) Green Growth, (vi) Youth Power, and (vii)
world during the period 2001 to 2012 was — Second Financial Sector.
 Since 1980, the share of the tertiary sector in the total GDP  According to the Union Budget 2021-22, Finance Minister
of India has —Shown an increasing trend proposed a new levy Agriculture Infrastructure and De-
 In India, between 2001 to 2005, growth rate of this velopment Cess. This cess will be levied on
sector has consistently increased —Services — 29 products
 As the economy develops, the share of the tertiary sector  Assertion (A) : Fiscal deficit of Indian Government as a
in the GDP —Increases percentage of GDP was higher in 2017-18 as compared to
Budget estimates.
 During 2011-12 to 2015-16, the contribution of Services
Reason (R) : Growth in indirect tax collection was relatively
Sector in the growth rate of Indian economy was
lower during 2017-18 on account of introduction of GST.
— About 69.0% (More than 60 % in 2018-19 — Both (A) and (R) are true, and
and around 55 % in 2019-20) (R) is the correct explanation of (A)

GS Pointer Economic & Social Development E–24

 The correct statements are :  The Government has collected the all time high gross GST
— Tax revenue as a percent of GDP of India has not steadily revenue in the month of (till May, 2023)
increased in the last decade; Fiscal deficit as a — April, 2023 (187035 crore)
percent of GDP of India has not steadily increased in  The term 'Revenue Neutral Rate' was in news recently is
the last decade related to — Goods and Service Tax (GST)
 Consider the following items :  Saksham project approved by Govt. of India is related to
1. Cereal grains hulled
--A new indirect tax network
 As per the Economic Survey 2015-16, this has been
2. Chicken eggs cooked
constructed as the Chakravyuha Challenge of the Indian
3. Fish processed and canned
economy -- Movement of Indian economy from socialism
4. Newspapers containing advertising material
with limited entry to marketism without exit
Among the above items, these are exempted under GST  In India, it formulates the fiscal policy
(Goods and Services Tax) — 1, 2 and 4 --Ministry of Finance
 The ‘Goods and Services Tax’ was proposed by a task  Long-term fiscal policy was announced by this finance
force, whose President was — Vijay Kelkar minister of India -- V.P. Singh
 The most likely advantage of implementing ‘Goods and  The controlling authority of government expenditure is
Services Tax’ (GST)— It replaced multiple taxes collected -- Ministry of Finance
by multiple authorities and will thus  Among the Expenditure, Revenue, Banking Division and
create a single market in India Economic Affairs, it is not a department in the Ministry of
 GST is that kind of tax — Indirect Tax Finance -- Banking Division
 This Constitution (Amendment) Act provides for Goods  Assertion (A): In recent times, the growth in the public
and Services Tax (G.S.T.) sector employment has been very sluggish in India.
— The Constitution (One Hundred and First) Reason (R) : There has been reassessment of the role of
Amendment Act, 2016 State in economic development.
 This Constitution Amendment Act made necessary provi-
-- Both A and R are true, and R
is the correct explanation of A
sions for the implementation of GST (Goods and Services
 This is not an objective of fiscal policy of Government of
Tax) regime — 101st Amendment Act India -- Regulation of inter-state trade
 GST (Goods and Services Tax) is introduced in India from  These are the objectives of fiscal policy of Government of
— July 01, 2017 India -- Full employment; Price stability; Equal
 The introduction of Goods and Services Tax from July distribution of wealth and income
2017 is expected to create — An uniformity in Indian  Fiscal policy is concerned with
market; Improve tax compliance -- Taxation and government expenditure
 The correct statements about GST Council are :  Among the production policy, tax policy, foreign policy
— GST Council is chaired by the Union Finance and interest rate policy, it is part of fiscal policy
Minister and the Minister of State-in-charge of --Tax policy
Revenue or Finance at the centre is a member; The  This economist introduced fiscal policy as a tool to rectify
GST Council will decide the tax rate, exempted goods the Great Depression of 1929-30 -- Prof. J.M. Keynes
and the threshold under the new taxation regime  The correctly matched lists are as follows :
 Among the Excise Duty, Custom Duty, Value Added Tax Boom – Business activity at high level with in-
and Service Tax, this tax is not included in Goods and creasing income, output and employ-
ment at macro level
Services Tax (GST) — Custom Duty
Recession – Gradual fall of income, output and
 Among the Property Tax, Corporation Tax, Value Added
employment with business activity in
Tax and Income Tax, this taxe is abolished by the Goods
a low gear
and Services Tax — Value Added Tax Depression – Unprecedented level of under –
 Among the alcohol for human consumption, electricity, employment and unemployment,
petroleum products and ghee, it has been kept under the drastic fall in income, output and
purview of Goods and Services Tax (GST) — Ghee employment
 The collection of 'Goods and Service Tax' in Indian economy Recovery – Steady rise in the general level of
in October, 2020 was — More than Rs. One lakh crore prices, income, output and employment

GS Pointer Economic & Social Development E–25

 This step is most likely to be taken at the time of an  These are true about the total outlay in the Union Budget
economic recession 2023-24
-- Increase in expenditure on public projects -- Interest payment (20%), State share of taxes and
 The revenue estimates of the Budget in India are prepared duties (18%), Subsidies (7 %), Defence (8%)
by -- Ministry of Finance  In the Union Budget for 2023-24, capital receipts
 It is responsible for the preparation and presentation of -- are less than revenue receipts
Union Budget to the Parliament  Among the Income tax, Public borrowing, VAT and Sub-
-- Department of Economic Affairs sidy, it is not a source of Public revenue -- Subsidy
 Economic Survey of India is related to  These are the sources of income in current account of the
-- Ministry of Finance Central Government -- Corporation Tax , Profit from
 It is responsible for preparing the Annual Economic Survey Public Enterprises, Excise duties
-- Department of Economic Affairs, Ministry of Finance  It is not included in the revenue account of Union Budget
 Economic Survey of India is published officially, every -- Small Savings
year by the -- Ministry of Finance, Govt. of India  These are included in the Capital Budget of the Govern
 The correctly matched lists are as follows : ment of India
Ministry of Industry – Wholesale Price Index -- Expenditure on acquisition of assets like roads,
National Statistical Office – National Accounts buildings, machinery etc.; Loan received
Statistics from foreign governments; Loan and
Reserve Bank of India – Report on Currency advances granted to the States
and Finance and Union Territories
Ministry of Finance – Economic Survey  With reference to Union Budget, these were covered under
 'Budget' is an instrument of Non-Plan Expenditure
-- Fiscal policy of the Government -- Defence expenditure; Interest payments;
 In this country, zero-based budgeting was first adopted Salaries and pensions; Subsidies
-- U.S.A.  In the Union Budgets in India, this is the largest in amount
 Statement (A) : Zero-Base Budget has been introduced in -- Revenue expenditure
India.  This did not take place in the Union Budget for 2017-18
Reason (R) : Zero-Base Budget technique involves a -- Increase in the number of
critical review of every scheme before a budgetary centrally sponsored schemes
provision is made.
 Note : Union Budget 2017-18 contained 3 major reforms:
-- Both (A) and (R) are correct, and (R)
(i) Advancement of date of presentation of Union Budget
is the correct explanation of (A)
almost by a month (from February- end to 1 st
 In the Union Budget for 2023-24, among the Rural
February).
Development, Social Services, Energy and Transport
(ii) Removal of Plan and Non-Plan classification of
sectors, it has been allocated largest outlay -- Transport
expenditure.
 As per Budget Estimates 2023-24, arrange the following
(iii) Merger of Railway Budget with the General Budget.
sectors in descending order as per their allocated outlay:
1. Rural Development 2. Energy  In this budget, the Railway Budget was merged with the
3. Transport 4. Social Services Union Budget in India -- Budget 2017-18
-- 3, 1, 2, 4  In this year the Railway Budget was merged with the Gen-
 As per Union Budget 2023-24, correctly matched lists are eral Budget in India — 2017
as follows :  There has been a persistent deficit budget year after year.
List-I List-II These actions can be taken by the Government to reduce
(Sector) (Budget Allocation : the deficit -- Reducing revenue expenditure;
in lakh crores) Rationalizing subsidies
Defence – 4.33  It is the most important/largest item of revenue expendi-
Agriculture and allied activities – 0.84 ture of the union government -- Interest Payments
Subsidy for food – 1.97  In the Union Budget the largest item of revenue expendi-
Rural development – 2.38 ture is -- Interest Payments
GS Pointer Economic & Social Development E–26
 Interest payment is an item of -- Revenue expenditure 3. The upward trend in the ratio of Fiscal Deficit to GDP
 It is the most important item of expenditure of the Union in recent years has an adverse effect to private
Government on revenue account -- Interest Payments investments.
 The largest item of public expenditure in the Union 4. Interest payments is the Single largest component of
Budgets in recent years is -- Interest Payments non-plan revenue expenditure of the Union
 In the context of governance, consider the following : Government.
1. Encouraging Foreign Direct Investment inflows Among the above statements the correct are :-- 2, 3 and 4
2. Privatization of higher educational institutions  Consider the following budget deficits of Central
3. Down-sizing of bureaucracy Government :
4. Selling/offloading the shares of Public Sector 1. Primary deficit
Undertakings
2. Fiscal deficit
Among the above, these can be used as measures to con-
3. Revenue deficit
trol the fiscal deficit in India -- 3 and 4 only The correct descending order of their values is : -- 2, 3, 1
 These statements are true for Finance Sector (Fiscal
 This forms the largest share of deficit in Government of
Management) in the Union Budget-2023
-- Fiscal Deficit of 3.5% of GSDP allowed for states;
India budget --Fiscal deficit
 As compared to revenue deficit, fiscal deficit will always
Budget estimates 2023-24 for total expenditure is
about 45 lakh cr.; Fiscal Deficit 2025-26, the target remain -- Higher
is to be below 4.5%; Fifty years interest  The correctly matched lists are as follows :
free loans to states Fiscal deficit – Excess of Total Expenditure over
 These statements are correct with reference to India Total Receipts less borrowings
-- The fiscal deficit target for the year 2022-23 was Budget deficit – Excess of Total Expenditure over
placed at 6.4 percent of GDP; The fiscal deficit Total Receipts
target for the year 2023-24 has been Revenue deficit – Excess of Revenue Expenditure
placed at 5.9 percent of GDP over Revenue Receipts
 For the Financial Year 2023-24 the Union Government aims Primary deficit – Excess of Total Expenditure over
to restrict the fiscal deficit at -- 5.9 percent of GDP Total Receipts less borrowings
 In the Union Budget 2021-2022 the fiscal deficit was and Interest Payments
pegged at -- 6.8 percent of GDP (6.7% as per Actuals)  Fiscal deficit in the Union budget means
 Fiscal deficit/GDP ratio has been maximum in the financial -- The sum of budgetary deficit and net increase in
year -- 2020-21 (9.2% of GDP) internal and external borrowings
 Fiscal deficit stood at that percentage of GDP in the year  Fiscal deficit is
1990-91 -- 8.4 -- Sum of budget deficit and Govt's
 This was the most important reason for the popularity of market borrowings and liabilities
the National Budget of February 1997  Fiscal deficit implies
-- Reduction in almost every tax -- Total expenditure – (Revenue receipts + recovery of
 The present combined fiscal deficit of States has touched loans + receipts from disinvestment)
a record of
 In India's Union Budget, Fiscal deficit means
-- Rs. 8.05 lakh crore (4.1% of GDP) in 2020-21 -- The difference between total revenue and
 The Budget for 2012-13 sought to restrict expenditure on
total expenditure of the government
subsidies to -- 3.5 percent of GDP
 Assertion (A) : Fiscal deficit is greater than budgetary
 As per Budget Estimates of 2023-24, total subsidy expen-
deficit.
diture is -- 1.34 percent of GDP
Reason (R) : Fiscal deficit is the borrowing from the Reserve
 In the revised estimates of 2022-23, total subsidy expendi-
ture stood at -- 2.06 percent of GDP Bank of India plus other liabilities of Government to meet
 With reference to the Indian Public Finance, consider the its expenditure. -- Both A and R are true, and R
following statements : is the correct explanation of A
1. External liabilities reported in the Union Budget are  If interest payments are subtracted from gross fiscal
based on historical exchange rates. deficit, the remainder will be -- Gross Primary deficit
2. The continued high borrowing has kept the real interest  If interest payment is added to Primary deficit, it is
rates high in the economy. equivalent to -- Fiscal deficit
GS Pointer Economic & Social Development E–27
 If primary deficit is zero, then the amount of borrowing will  A bill shall be deamed to be Money Bill if
be —Just equal to the interest payment -- It contains only provisions related to
 Primary deficit in the Union Budget for 2023-24 is estimated imposition, abolition, remission, alteration
at -- 2.3 percent of the GDP or regulation of any tax
 As per the revised estimates of 2022-23, Primary deficit  A Money Bill deals with the
stood at -- 3.0 percent of GDP -- Regulation of borrowing of money or giving
any guarantee by the Government of India
 Revenue deficit in India implies that
 A Money Bill has provisions for the
-- Indian Government needs to borrow in order to -- Custody of the Consolidated/
finance its expenses which do not create capital assets Contingency Fund of India
 After deducting grants for the creation of capital assets  With respect to the procedure of Budget in the
from revenue deficit, we arrive at Parliament, "the amount of demand be reduced to Re 1" is
-- Effective Revenue deficit called -- Policy Cut-Motion
 Effective Revenue deficit was introduced in the Union  Among the Censure, Call Attention, Cut and Adjournment
Budget of -- 2011-12 motions, it has contextual relationship with the Union
 In Budget Estimates 2023-24, the effective Revenue deficit Budget -- Cut motion
is estimated at -- 1.7 percent of GDP  The correctly matched pairs are :
 A larger part of the Fiscal deficit in Union Government Policy cut Motion – Budget demand be reduced
Budget is filled by -- Domestic borrowings to Rs. one
Economy cut Motion – Budget demand be reduced
 Assertion (A) : Deficit financing leads to inflation.
by a specified amount
Reason (R) : It increases money supply as compared to
Token cut Motion – Budget demand be reduced
goods and services.
by Rs. one hundred
-- Both (A) and (R) are true, and (R)  Vote on Account is meant for
is the correct explanation of (A) -- Appropriating funds pending passing of budget
 Deficit financing creates additional paper currency to fill  The Finance Ministry (Government of India) has
the gap between expenditure and revenue. This device introduced the concept of 'Outcome-Budget' from 2005.
aims at economic development. But if it fails, it generates Under this, the monitoring of the outcomes will be the
-- Inflation responsibility of
 This is the effect of deficit financing on economy -- Finance Ministry and Planning Commission
-- Increase in money supply (Now NITI Aayog) jointly
 This is likely to be the most inflationary in its effects  The concept of Performance Budget has been borrowed
-- Creation of new money to finance a budget deficit from -- U.S.A.
 In India, deficit financing is used for raising resources for  Ad hoc Treasury bill system of meeting budget deficit in
-- Economic development India was abolished on -- 31st March, 1997
 The Indian Parliament exercises control on the audit of the
 Assertion (A) : There is a history of fiscal deficit in Central
Budget through its -- Public Accounts Committee
Government budgets in India.
 The correct statements are :
Reason (R) : Indian agriculture has enjoyed large amount
-- The Fiscal Responsibility and Budget Management
of subsidies compared to Western countries. (FRBM) Review Committee Report has recommended a
-- (A) is true, but (R) is false debt to GDP ratio of 60% for the general (combined)
 Statement (A) : A big source of deficit in the Government’s government by 2023, comprising 40% for the Central
budget is the financial subsidy. Government and 20% for the State Governments; As per
Reason (R) : The level of financial subsidy is much higher the Constitution of India, it is mandatory for a State to
in Indian agriculture than in developed countries. take the Central Government’s consent for raising any
-- A is true, but R is false loan if the former owes any outstanding liabilities to the latter
 Regarding Money Bill, this statement is correct  Fiscal Responsibility and Budget Management Act was
-- A Money Bill is concerned with appropriation of enacted in India in the year
money out of the Consolidated Fund of India -- 2003 (effective from July, 2004)
GS Pointer Economic & Social Development E–28
 According to FRBM Bill, the target for achieving the tax-  At present, share of direct taxes in Gross Domestic Product
GDP ratio by 2008-09 was -- 12 percent (GDP) in India is about -- 6%
 In R.E. of 2022-23 and B.E. of 2023-24, the ratio of gross tax  The tax-GDP ratio in India is nearly
revenue to GDP are estimated at -- 11.1 percent -- Between 16-17 percent
 This was not stipulated in the Fiscal Responsibility and  Tax-GDP ratio in India in 2008-09 was estimated at
Budget Management Act, 2003 -- 16.5 percent
-- Elimination of Primary deficit by  The Tax-GDP ratio of Centre in the financial year 2023-24
the end of the fiscal year 2008-09 in India is estimated at —11.1%
 These were stipulated in the Fiscal Responsibility and
 A decrease in tax to-GDP- ratio of a country does not
Budget Management Act, 2003
indicate -- Slowing economic growth rate or less
-- Elimination of revenue deficit by the end of fiscal year equitable distribution of National Income
2007-08; Fixing government guarantees in any
 A redistribution of income in a country can be best brought
financial year as a percentage of GDP; Non-borrowing
about through -- Progressive taxation combined
by the Central government from RBI except under
with progressive expenditure
certain circumstances
 This kind of Tax System is found in India
 Fiscal Responsibility and Budget Management Act, 2003
is adopted in Rajasthan with objectives to — Overall degressive
-- Ensure financial discipline in government  According to the Union Budget 2016-17, a surcharge of
 The disinvestment target for Public Sector Banks and 15% is payable if the income is -- Above Rs. 1 Crore
Financial Institutions in the Union Budget 2020-21was  In the Central Government budget 2011-12, a new category
— Rs. 90,000 Crores of 'Very Senior Citizens' has been created for the purpose
 This amount has been targeted in the Union Budget 2023- of Income Tax. This category covers the persons of age
24 from the disinvestment of Public Sector Enterprises -- 80 years and above
-- Rs. 51,000 Crore  As per the Union Budget 2023-2024, the senior citizens
 As against the target of Rs. 10,000 crore from disinvestment have not to pay income tax upto an income of
by the Government of India for 2000-2001, there was a -- Rs 5.00 lakh
realisation of only -- Rs. 1,829 crore  These were true for Central Sales Tax
 According to Railway Budget 2016-17, this research -- It was levied on interstate trade; It is
organization will be set up under Railways -- SRESTHA levied in the Union Territories
 The Railway Budget 2013-14 has approved to introduce a  Growth in Gross Tax Revenue in the case of Central
new hyper luxury class. It is to be called -- Anubhuti Government was highest in last 10 years in
 Direct Tax Code in India is related to -- Income Tax -- 2021-22 (33.7%) and 2016-17 (17.9%)
 The imposition of ‘expenditure tax’ was suggested in  Three largest sources of tax revenue to the Central
India for the first time by -- Kaldor Government of India in 2023-24 are
 With reference to India’s decision to levy an equalization
-- 1. Goods and Services Tax (17%),
tax of 6% on online advertisement services offered by
2. Corporation Tax (15%),
non-resident entities, these statements are correct :
3. Income Tax (15%)
-- It is not introduced as a part of the Income Tax Act;
 The contribution of Customs and Union Excise Duties in
Non-resident entities that offer advertisement
services in India can not claim a tax credit in their the Central Government revenue in 2023-24 are
home country under the ‘Double Taxation -- 8.9% and 12.9%, respectively
Avoidance Agreements’  Consider the following important sources of tax revenue
 ‘Tobin Tax’ is levied on for the Central Government in India :
— Foreign exchange transactions I. Union Excise Duty II. Corporation Tax
 Tax on sale of inherited property is -- Capital Gain Tax III. Income Tax IV. Service Tax
 The share of income tax in Gross Domestic Product in the The correct descending order of above in terms of Gross
year 2022-23 and 2023-24 are estimated at -- 2.98% Tax Revenue is -- II, III, I, IV
GS Pointer Economic & Social Development E–29
 Following are the correct matches of the estimated source  These statements are true for the Income Tax in India
of revenue of the Union Budget 2020-21. -- It is a progressive tax; It is a direct tax
List - I List - II  This set of sources of revenue belongs to the Union
(Source) (Percentage of Revenue) Government -- Customs duties, Corporation tax
Corporation Tax – 18 percent  These taxes belong to the State Governments
Income Tax – 17 percent -- Sales Tax (now SGST), Land Revenue,
Customs – 4 percent Holding Tax etc.
Central Excise – 7 percent  Among the Income Tax, Wealth Tax, Estate Duty and Sales
 In the Union Budget 2023-24, the largest sources of revenue Tax, it is not a direct tax in India -- Sales tax
are as follows :  The correctly matched pairs are as follows
-- GST (17%), Corporation Tax (15%), Income Capital Gain Tax – Sale of Property
Tax (15%), Union Excise Duties (7%) Central Excise Duty – Factory Produce
 Consider the following important sources of tax revenue Customs Duty – Import
for the Central Government : Corporation tax – Income
1. Corporation tax  Corporation tax is levied on -- Income of Company
2. Tax on income other than corporation tax  Corporation tax -- is levied by the Union and shared
3. Customs by the Union and the States
4. Union Excise Duties  The Minimum Alternative Tax (MAT) was introduced in
The correct descending order of above in terms of gross the Budget of the Government of India for the year
tax revenue is -- 1, 2, 4, 3 -- 1996-97
 This was the most important source of the tax revenue of  MODVAT is related to -- Union Excise Duties
the Union Government in 2009-10 -- Corporation Tax  CENVAT is related with -- Union Excise Duties
 The indirect taxes are termed regressive taxing mechanism  VAT is imposed
because -- They are charged at the same rates for all -- On all stages of value addition between
income groups production and final sale
 In the year 2013-14, largest source of tax revenue of the  Number of States, which had not implemented 'Value
Union Government was -- Corporation Tax Added Tax' in India upto December 2005 was -- 7
 Among the Income Tax, Corporation Tax, Union Excise  Value Added Tax was first introduced in India in -- 2005
Duties and Customs, it is the largest source of revenue in  In this State in India Value Added Tax was first time applied
India -- Corporation Tax -- Haryana
 In the Union Budget 2005-06 the largest source of revenue  The wealth tax was first introduced in India in -- 1957
was -- Corporation Tax  Service tax was introduced in India on the recomm-
 In India, the tax proceeds of which one of the following as endation of -- Raja J. Chelliah Committee
a percentage of gross tax revenue has significantly  The correct statements regarding service tax are :
declined between 2005-06 to 2009-10 -- It is an indirect tax; It was introduced during 1994-95
-- Union Excise Duties  Service Tax in India was introduced in the year
 Among the Service Tax, Education Cess, Customs Duty -- 1994-95
and Road Tax, this is not a tax/duty levied by the Govern-  The Union Budget 2015-16 had increased the service tax
ment of India -- Road Tax from 12% to -- 14%
 This tax is levied by Union and collected and appropriated  The number of services subject to Service Tax in 2009-10
by States -- Stamp Duties was -- 110
 Net proceeds of all taxes (after deducting cess, surcharge  Income tax in India was introduced by -- James Wilson
and cost of collection) collected by the Union are  Among the Income Tax, Trade Tax, Import Duty and Ex-
-- Shareable with the States cise Duty, this tax does not directly increase the price of a
 The correct statement regarding the levying, collecting commodity to buyers -- Income tax
and distribution of Income Tax is  The tax on import and export is known as -- Custom duty
--The Union levies, collects and distributes the  Among the Income Tax, Excise Duty, Octroi and Sales Tax,
proceeds of income tax between itself and the States it is a direct tax -- Income Tax
GS Pointer Economic & Social Development E–30
 Excise duty is an -- Indirect tax  The Union Finance Minister Arun Jaitley announced in
 Among the Sales Tax, Excise Duty, Customs Duty and October, 2016 that under the Income Declaration Scheme
Wealth Tax, it is a direct tax -- Wealth Tax (IDS), 2016 the amount of declared black money till
 Consider the following taxes : September 30, 2016 was about -- Rs. 65,250 crore
1. Corporation tax 2. Customs duty  Generally after every five years, Finance Commission is
3. Wealth tax 4. Excise duty appointed in India to
Of these, indirect taxes are -- 2 and 4 -- Determine the share of States in the
 Among the Income Tax, Corporation Tax, Sales Tax and Central grants and revenue of the Union
Wealth Tax, this is not a direct tax -- Sales Tax  Under this Article of Constitution of India, the formation
 Consider the following : of Finance Commission is laid down -- Article 280
1. Fringe Benefit Tax  The distribution of finances between Centre and States is
2. Interest Tax done on the recommendation of -- Finance Commission
3. Security Transaction Tax  The primary function of the Finance Commission in
Of the above, these are Direct Taxes -- 1, 2 and 3 India is to
 The sales tax you pay while purchasing a toothpaste is a -- Distribute revenue between the Centre and the States
--Tax imposed and collected by the State Government  The primary duty of the Finance Commission of India is
 Among the Fringe Benefit Tax, Minimum Alternate Tax,
-- To give the recommendations on distribution of tax
Capital Gains Tax and Tax on company profit, it is not
revenue between the Union and States
related with income from corporate sector in India
 The non-plan grants to the States by the Central
-- Capital Gains Tax Government are made on the recommendations of
 This tax is not levied by the Union Government
-- Finance Commission
-- Entertainment Tax
 The correct statement with regard to the Planning
 Among the Entertainment Tax, State Excise Duty,
Commission (PC) and Finance Commission (FC)
Agricultural Income Tax and Corporation Tax, it is not
-- Recommendations given by both are
levied by the State Governments -- Corporation Tax
not binding on the Government
 Among the Land Revenue, Registration Fee, Customs
 This tax is not shared by the Central Government with U.P.
Duty and Commercial Tax, it does not mainly form a part of
Government under the Finance Commission Award
Tax Revenue of State Governments in India
-- Customs Duty -- Agriculture Income Tax
 The correct statement about Fifteenth Finance Commission
 Excise Duty on liquor is imposed by --State Governments
is -- The recommendations of the commission will cover
 In this year's budget, the Commodity Transaction Tax
the periods of 2020-21 and 2021-26
(CTT) was introduced in the Budget of India -- 2013-14
 These comes under the definition of Adjusted Gross  The share of Bihar in the divisible pool of Central Taxes on
Revenue (AGR) -- Interest Income; Dividend; Forex Gain the recommendation of the 15th Finance Commission is
 This situation best reflects ‘Indirect Transfers’ often talked -- 10.06%
 th
According to the 15 Finance Commission’s recommen-
about in media recently with reference to India
—A foreign company transfers shares and such shares dations, this share will Bihar receive in divisible pool of
derive their substantial value from assets located in India Central taxes from 2021-26 — 10.06%
 By this department, the 'e-Sahyog' Project was launched  The recommendation of the 14th Finance Commission for
in October 2015 -- Income Tax Dept. increase the share of net proceeds of union taxes between
 This is the maximum limit of the payment of Gratuity at centre to states has been fixed at -- 42 percent
present, as per the Payment of Gratuity Act 1972  The 15th Finance Commission
-- Rs. 20 Lakh -- has decreased the share of States in the Central
 The Voluntary Disclosure of Income Scheme, 1997 was divisible pool from 42 percent to 41 percent
launched by the Finance Ministry with effect from  The Chairman of the 15th Finance Commission
-- 1 July, 1997 -- N.K. Singh
GS Pointer Economic & Social Development E–31
 Among the Ashok Kumar Lahiri, Sudipto Mundle, Ramesh  The correctly matched lists are as follows :
Chand and Ajay Narayan Jha, he was not a member of the List I (Committees) List II (Chaired by)
15th Finance Commission — Sudipto Mundle Disinvestment of shares in – C. Rangarajan
 The Chairman of the 14th Finance Commission was Public Sector Enterprises
-- Dr. Y.V. Reddy Industrial Sickness – Onkar Goswami
 The Chairman of the 13th Finance Commission was Tax Reforms – Raja Chelliah
-- Dr. Vijay L. Kelkar Reforms in Insurance Sector – R.N. Malhotra
 The period of recommendations made by Thirteenth  Recommendations of the Kelkar Task Force were related
Finance Commission was -- 2010-15 to -- Taxes
 This percentage of central tax revenue had been
 The Committee which has recommended abolition of Tax
recommended for allocation to the States by the
Rebates under Section 88 of Income Tax Act of India
Thirteenth Finance Commission -- 32.0%
 Thirteenth Finance Commission had proposed that the
-- Kelkar Committee
 Among the Kelkar, Chelliah, Narasimhan and Vaghul
combined debt-GDP ratio of the Centre and the States by
committees, the latest committee to submit its report on
year 2014-15 should be -- 68 percent
 This has been assigned the highest weightage by the tax reforms was -- Kelkar Committee
13th, 14th and 15th Finance Commissions of India while  The correct statements are :
recommending devolution of Union taxes amongst States -- Global Trust Bank has been amalgamated with the
-- Fiscal Capacity / Income Distance Oriental Bank of Commerce; The second report
 These were among the noticeable features of the recom- of the Kelkar Committee dealing with direct and indirect
mendations of the Thirteenth Finance Commission taxes offered two options regarding the deduction for
-- A design for the Goods and Services Tax, and a interest on housing loan from the taxable income
compensation package linked to adherence to the  Tax reforms in India in 1990s had been undertaken on the
proposed design; Devolution of a specified share recommendations of the committee headed by
of central taxes to local bodies as grants -- R. J. Chelliah
 The Chairman of the 10th Finance Commission was  Chelliah Committee was related to
-- K.C. Pant -- Reforms in direct and indirect taxes
 The Chairman of the First Finance Commission of India  Among the National Savings Certificate, Public Provident
was -- K.C. Neogy Fund, Indira Vikas Patra and National Savings Scheme, it
 The correctly matched lists are as follows : is different from the others from the point of view of tax
Finance Commission Chairman relief to individuals -- Indira Vikas Patra
9th – N.K.P. Salve  It is not eligible for any income tax rebate
10th – K.C. Pant
-- Kisan Vikas Patra
11th – A.M. Khusro
th
 A PAN has initially a five-alphabet series like AFZPK
12 – C. Rangarajan
7190K. Here P stands for -- Individual
 The Chairman of 12th Finance Commission was
 PAN card issued by the Income Tax Department cannot be
-- C. Rangarajan
 The extent of money transfer to the States out of sharable
used for this purpose -- Proof of address
 In the year 2001, the Prime Minister announced a five
pool of tax collection according to the 12 th Finance
Commission had been fixed at -- 30.5 percent year excise duty holiday for industries in
 As per the recommendations of the Twelfth Finance Com- -- Earthquake ravaged Kutch district
mission, the revenue deficit of the Centre and States by  The Union Budget 2000 awarded a Tax Holiday for the
the year 2009-10 should be -- Zero % North-Eastern Region to promote industrialisation for
 11th Finance Commission has recommended that in the tax -- 10 years
revenue collected by the Union, the shareable part of States  Consider the following sources of Revenue of the
will be -- 29.5% Panchayats :
 According to the Tenth Finance Commission, the share of 1. Local Authority Grant by Finance Commission
resources to be transferred to States from the divisible 2. Assistance by Central Cooperative Banks
pool will be -- 29% 3. Allocations for Centrally Sponsored Schemes

GS Pointer Economic & Social Development E–32

 4. NABARD  This was called as Economic Cabinet of India by Ashok
5. Allocation from State Finance Commission Chandra -- Planning Commission
Of the above, the correct sources of Finance for Panchyats  National Development Council
would be -- 1, 2, 3 and 5 -- Reviews the National Plans
 This tax is levied by the Gram Panchayats  The National Development Council was mainly concerned
-- Tax on Local Fairs with --Approval of Five Year Plans
 Consider the following actions by the government:  The Chairman of the National Development Council is
1. Cutting the tax rates -- Prime Minister of India
2. Increasing the government spending  The National Development Council was formed in the
3. Abolishing the subsidies year — 1952
In the context of economic recession, which of the above  National Development Council was constituted on
actions can be considered a part of the ‘fiscal stimulus’ -- 6 August, 1952
package -- 1 and 2 only  The final authority in India to approve Five Year Plans was
 The main source of fund for the National Highway -- National Development Council
Authority of India is -- Cess  The 'Planning Commission' was set up in India in -- 1950
 This pair is correctly matched  Planning commission is constituted in India
-- Import Quota — Physical Control -- By a resolution of the Cabinet
 The correctly matched lists are as follows :  The Planning Commission of India was
Open-general license – External Trade -- An advisory body
TRYSEM – Employment  Planning Commission of India was a
Wholesale Price Index – Inflation -- Quasi-Political body
Cash Reserve Ratio – Debt control  The correct statements about NITI Aayog are :
-- It has not a full-time Chairman; It was set up to
Planning replace the Planning Commission; It was set up
in January, 2015; It is based on the principle
 Under the Constitution of India, Economic Planning is a of Cooperative Federalism
subject in -- Concurrent List  NITI Aayog came into existence on -- 1st January, 2015
 The Development, Monitoring and Evaluation Office,  The Government of India has established NITI Aayog to
which monitors the progress of long term policies in an replace the --Planning Commission
attached office under -- NITI Aayog  'NITI Aayog' has been formed replacing Planning
 The Development Monitoring and Evaluation Office commission on -- January 1, 2015
(DMEO) was constituted on —18 September, 2015  In Government of India's NITI Aayog, which is an
 Consider the following statements : economic policy-making think tank, the full form of NITI
1. National Development Council is an organ of the is -- National Institution for Transforming India
Planning Commission.  It is the Nodal Institution for implementation of
2. The Economic and Social Planning is kept in the Sustainable Development Goals in India -- NITI Aayog
Concurrent List in the Constitution of India.  The first Vice-Chairman of the NITI Aayog was
3. The Constitution of India prescribes that Panchayats -- Arvind Panagariya
should be assigned the task of preparation of plans for  At present, the CEO of the NITI Aayog is
economic development and social justice. -- B.V.R. Subrahmanyam
Among the statements given above the correct are :  Among the Amitabh Kant, S.S. Mundra, Cyrus Mistry and
-- 2 and 3 only Somya Kanti Ghosh, the CEO of the NITI Aayog was
 The correct statement is -- Amitabh Kant
--The scope of the Finance Commission is limited to a  According to NITI Aayog, this State is at the top in the
review of the revenue segment of the budget, while India Innovation Index 2019, 2020 and 2021 -- Karnataka
the Planning Commission takes an overall review  As per the report of the NITI Aayog, this State had emerged
embracing both capital and revenue as the fastest growing economy in India in 2014-15
requirements of the States -- Bihar
GS Pointer Economic & Social Development E–33
 As per the fourth edition of State Health Index released by the national state on the advice of planning commission
the NITI Aayog in December 2021, this State performed would adopt a comprehensive scheme; Modi Government
best among the ‘Smaller States’ category — Mizoram renamed 'Planning Commission' as 'Niti Aayog';
 In NITI Aayog's Health Index for 2019-20, Bihar scored Subhash Chandra Bose announced the formation of a
-- 31.00 National Planning Committee with Jawaharlal Nehru as
 The Aspirational District Programme (ADP) of NITI Aayog Chairman in 1938
was launched in — January 2018  The Gandhian Plan was expounded in 1944 by
 The correct statements regarding the Planning Commis- -- Shriman Narayan Agarwal
sion of India are  Planned Development in India was opposed by
-- There is no mention of Planning Commission in the -- Mahatma Gandhi
Constitution; There is no fix tenure for its Deputy-  He drafted the 'Sarvodaya Plan' -- Jai Prakash Narayan
Chairman and members; There is no fixed  Consider the following about the 'Rolling Plan' :
qualification prescribed for its member I. A plan for the current year which includes the annual
 Among the Dr. Manmohan Singh, Pranab Mukherjee, P. budget
Chidambaram and Montek S. Ahluwalia, he has not been II. A plan for a fixed number of years, say 3, 4 or 5
the Deputy Chairman of the Planning Commission of India III. It is revised every year as per requirements of the
-- P. Chidambaram economy
 The ex-officio chairman of Planning Commission was IV. A perspective plan for 10, 15 or 20 years
-- Prime Minister of India Among the above, the correct statements are :
 These are associated with 'Planning' in India -- I, II, III and IV
-- The National Development Council and Parliament  'The Rolling Plan' for backward countries was suggested
 ‘India Vision 2020’ was prepared by by -- Gunnar Myrdal
-- S.P. Gupta Committee  The 'Rolling Plan' concept in National Planning was
 Planning was considered prerequisite introduced by the -- Janata Party Government
-- For balanced socio-economic development; For  In this year ‘Rolling Plan’ was in operation in India
extending the benefits of development in an even --1978-79
manner; For focusing on removal of regional  The major objective of Indian Five Year Plans was
disparities; For maximizing the utilization -- Self-reliance and reduction of
of available resources dependence on foreign aid
 The basic difference between imperative and indicative  th
The period of the 12 Five-Year Plan was -- 2012-2017
planning is that  These were the visions of 12th Five Year Plan
-- In the case of the imperative planning the market -- Real GDP growth rate of 8 percent; Agricultural
mechanism is entirely replaced by a command growth rate of 4 percent; Head count ratio
hierarchy, while in the case of indicative planning, of consumption poverty to be reduced
it is looked upon as a way to improve by 10 percent points
the functioning of market system  During the 12th Five Year Plan, the growth rate of
 The maximum resources are mobilised for India's public agriculture, forestry and fish farming had been estimated
expenditure under plans -- From borrowings to be -- 4.0%
 Under Gadgil-Mukherjee Formula, the higher weightage  The expected target of development in the ‘vision paper’
was given to -- Population of the 12th Five Year Plan (2012-2017) as accepted by the
 'National Planning Committee' was set up by National Development Council was
-- Subhash Chandra Bose -- 9% (It was later fixed at 8% by the NDC)
 These statements are true for Planning in India  th
In the 12 Five Year Plan, this sector had largest allocation
-- In August 1937, the Congress Working Committee at of funds -- Social Services
its meeting in Wardha adopted a resolution of national  The document of Twelfth Five Year Plan suggested that
reconstruction and social planning; Subhash Chandra the largest expenditure in this plan would be on
Bose, in his presidential speech at Haripura declared that -- Social Services
GS Pointer Economic & Social Development E–34
 According to the government estimates during 12th Five  The theme of the Eleventh Five Year Plan for education
Year Plan, the infrastructure sector will require an sector was -- Compulsory elementary education
investment of -- US $ 1000 billion  Number of IITs (Indian Institute of Technology) targeted
 In India, this Five Year Plan was launched with a focus on to set up in the Eleventh Five Year Plan was -8
 The annual growth rate of the economy as envisaged in
sustainable growth -- 12th
the mid-term appraisal of the 10th plan was -- 7.0 percent
 The main objective of the 12th Five Year Plan was
 The growth rate target of the Tenth Five Year Plan was
-- Faster, sustainable and more inclusive growth
-- 8.0%
 Eleventh Five Year Plan emphasized on
 The Tenth Five Year Plan ended in year -- 2007
-- Faster and more inclusive growth  The period of Tenth Five Year Plan was -- 2002-2007
 The plan period of Eleventh Five Year Plan was th
 The true statements about the 10 Five Year Plan targets
-- 2007 - 2012 -- 8% increase in GDP during the plan period;
 The core concept of the Eleventh Five Year Plan was Poverty ratio to be reduced and brought to 20% by
-- Faster and more inclusive growth 2007; Literacy to be increased to 75% by 2007
 The theme of the Approach Paper of the Eleventh Five  This sector was allocated the highest percentage in the
Year Plan had been Tenth Plan Outlay -- Energy
--Towards faster and more Inclusive growth  The Tenth Five Year Plan targeted the highest growth rate
 The objective of the Eleventh Five Year Plan was in -- Communication
-- Inclusive growth  Among pulses and oilseeds, fruits and vegetables, cereals
 According to the Approach Paper of the 11th
Five Year and other crops, during Tenth Five Year Plan, growth rate
Plan, with the achievement of targeted growth rate and was highest in -- Pulses and oilseeds
population growing at 1.5 percent per annum, the real in-  In the Tenth Five Year Plan investment rate was
come of the average Indian would double in -- 10 years -- Higher than savings rate
 The largest increase of employment opportunities during  The growth in GDP in years 2000-02, compared with the
the Eleventh Five Year Plan had been expected in Tenth Plan target has been
-- Construction -- About half of what expected
 The size of the Eleventh Five Year Plan of India was  This Five Year Plan of India focused on the Growth with
-- Rs. 36,44,718 crore Social Justice and Equaity -- 9th
 In the Eleventh Five Year Plan highest allocation had been  The growth rate percentage for the 9th Five Year Plan had
made for -- Social services followed by Energy sector been targeted at -- 6.5%
 th
This percentage of education budget under 9 Five Year
 th
In the 11 Five Year Plan, this sector accounts for maxi-
Plan had been allocated to primary education -- 57.1%
mum combined Central, State and U.T. expenditure
 In this Five Year Plan the Women's Component Plan was
-- Social sector
introduced as a major strategy -- Ninth Five Year Plan
 The rate fixed for industrial development in the Eleventh
 This was the correct estimate of the Capital-Output Ratio
Plan was -- Between 10 and 11 percent for the Ninth Five Year Plan -- 4.3
 The targeted annual growth rate of agricultural production
 The Seventh Five Year Plan ended in March 1990, the
in India in the 11th plan was -- 4.0 percent Eighth Five Year Plan started in -- April, 1992
 Target for annual growth rate of Gross Domestic Product  This Five Year Plan was operated in India during April
during the Eleventh Five Year Plan was -- 9.0 percent 1992-March 1997 -- Eighth Plan
 Inclusive growth as enunciated in the Eleventh Five Year  This Five Year Plan of India recognized human develop-
Plan included ment as the core of developmental efforts
-- Reduction in poverty; Extension of employment -- Eighth Five Year Plan
opportunities; Reduction of gender inequalities  The annual growth rate aimed at in the Eighth Five Year
 Inclusive growth as enunciated in the Eleventh Five Year Plan was -- 5.6%
Plan does not include this  The rate of industrial development fixed in the 8th Five
-- Strengthening of capital market Year Plan was -- 7.5%
GS Pointer Economic & Social Development E–35
 The total amount of investment outlay in the Eighth Plan  Under this Five Year Plan the decision to establish a
-- Rs. 798000 crore socialistic pattern of society was taken
 The largest source of financing the public sector outlay of -- Second Five Year Plan
the Eighth Five Year Plan came from  Second Five Year Plan of India was based on an economic
-- Government borrowings model developed by -- P.C. Mahalanobis
 th
The major shift in the 8 Five Year Plan from its preceding
 The Second Five Year Plan was based on this model
ones was -- The concentration of public investment
-- Mahalanobis Model
in infrastructural sectors
 Planning in India, in real sense, began with the Second
 The Eighth Five Year Plan is different from the earlier ones.
The critical difference lies in the fact that Five Year Plan. The architect of Indian Planning was
-- P.C. Mahalanobis
-- Considerable emphasis is placed
 Mahalanobis Plan Model adopted in India in the mid-
on infrastructure growth
 The Sixth and the Eighth Five Year Plans covered the fifties aimed at -- Setting up heavy industries which
period 1980-85 and 1992-97 respectively. The Seventh Five were capital intensive
Year Plan covered the period -- 1985-90  The strategy of development of industries and industrial-
 The main slogan of the Seventh Five Year Plan was ization was part of this Plan -- Second
-- Food, Work and Productivity  First Five Year Plan was started in -- 1951-52
. 'Food, Work and Productivity' slogan was given in the  The Planned Development Model was adopted in India
-- Seventh Five Year Plan from -- 1st April, 1951
 The strategy adopted under IRDP in the Seventh Plan  First Five Year Plan of India was based on the :
was -- Adoption of total household approach -- Harrod-Domar Model
 This programme was initiated during the Sixth Five Year
 The priority of the First Five Year Plan was
Plan -- Integrated Rural Development Programme
-- Development of Agriculture
 During which Five Year Plan was the Emergency clamped,
 The correct statements regarding Indian Planning are :
new elections took place and the Janata Party was elected
-- Fifth -- The Second Five Year Plan emphasized on the
 Among the Third, Fifth, Sixth and Eighth, Plans, this Plan establishment of heavy industries; The Second Five
was originally called Rolling Plan — Sixth Plan Year Plan introduced the concept of import
 The Five Year Plan that terminated one year before the substitution as a strategy for industrialization
scheduled period was -- Fifth Five Year Plan  With reference to India’s Five Year Plans, the correct
 This Plan declared its objective of self-reliance and zero statements are : -- From the Second Five Year Plan, there
net foreign aid -- Fifth Five Year Plan was a determined thrust towards substitution of basic
 The basic objective of Fifth Five Year Plan was and capital goods industries; The Fourth Five Year Plan
-- Poverty removal adopted the objective of correcting the earlier trend of
 In this Five Year Plan anti-poverty programmes based on i ncreased concentration of wealth and economic power
the theme ‘Garibi Hatao’ was first introduced  The correctly matched lists are as follows :
-- Fifth Five Year Plan Five Year Plan Applied Growth Model
 Consider the following events and arrange these in First – Harrod-Domar Model
chronological order : Second – Mahalanobis Model
I. Garibi Hatao
Third – S. Chakravarty Model
II. Bank Nationalization
Fourth – Ashok Rudra Model
III. Beginning of Green Revolution -- III, II, I
The correctly matched lists are as follows :
 The Growth Centre Approach was adopted under the
1st Plan – Community Development (1952)
-- Fourth Five Year Plan
 The objective of self-sustaining development in India was 2nd Plan – Rapid Industrialization
first adopted in -- Fourth Five Year Plan 3rd Plan – Expansion of basic industries

GS Pointer Economic & Social Development E–36

 4th Plan – Achievement of self-reliance and  The planning process in the industrial sector in India has
growth with stability assumed a relatively less important position in the nine-
ties as compared to that in the earlier period. This is not
5th Plan – Minimum needs programme
true in this regard -- The nation's priorities have shifted
 The correctly matched lists are as follows :
away from industrial development to rural development
First Five Year Plan – 1951-56  Statement (A) : ' Bottom-UP Planning' is a goal that is yet
Third Five Year Plan – 1961-66 to be achieved.
Fourth Five Year Plan – 1969-74 Reason (R) : Village as a unit is very suitable for
economic viability.
Sixth Five Year Plan – 1980-85
-- Both (A) and (R) are true, and
 Among the First, Sixth, Tenth and Fourth Five Year Plans,
(R) is the correct explanation of (A)
economic development rate was maximum in  Arrange the following in their chronological order :
-- Tenth Five Year Plan 1. First Five Year Plan was submitted to Parliament.
 Among the Eighth, Seventh, Sixth and Fifth Five Year Plans, 2. National Development Council was set-up.
the cumulative annual growth rate of Real Gross National 3. First devaluation of Indian currency after independence
Product in India was maximum in -- Eighth Five Year Plan took place.
4. India became member of International Monetary Fund
 During the planning periods, the highest growth rate was
(IMF). -- 4, 3, 1, 2
achieved during the -- Eleventh plan
 'Yojana' magazine is being published by
 During this Five Year Plan, India has achieved the maxi-
-- Publications Division
mum per-capita growth rate -- Eleventh Plan  The book, 'Planned Economy for India' is authored by
 The correct match of List-1 and List-2 is as follows : -- M. Visvesvaraya
Plan Growth rate in U.P. (%)  The author of the book titled ‘Planning and the Poor’ is
Sixth Plan – 3.9 -- B.S. Minhas
Seventh Plan – 5.7
Money and Banking
Eighth Plan – 3.2
Ninth Plan – 2.5  The importance of the term ‘Interest Coverage Ratio’ of a
firm in India are
 During the era of Planning in India, the total number of
-- It helps in understanding the present risk of a firm
years not covered by any Five Year Plan was -- 7 that a bank is going to give loan to; It helps in evaluating
 The Plan Holiday in India refers to the period -- 1966-69 the emerging risk of a firm that a bank is going to give
 That decade in Indian Planning deserves to be called 'the loan to; The lower a borrowing firm's level of Interest
decade of jobless growth' -- 1991-2000 Coverage Ratio, the worse is its ability to service its debt
 'Twenty Point Economic Programme' was first launched  The purpose of Inter-Creditor Agreement signed by
in the year -- 1975 Indian banks and financial institutions recently
 Core sector in the planning means -- To aim at faster resolution of stressed assets of Rs.
50 crore or more which are-under consortium lending
-- Selected basic industries
 This statement best describes the term ‘Scheme for
 The principal reason why national economic planning is
Sustainable Structuring of Stressed Assets (S4A)’,
still being pursued inspite of embracing a market econony
recently seen in the news
since 1991 is that
-- It is a scheme of RBI for reworking the financial
-- Five Year Plans can continue to provide a long-term structure of big corporate entities facing
perspective to the economy in market-friendly fashions genuine difficulties

GS Pointer Economic & Social Development E–37

 The Reserve Bank of India’s recent directives relating to 3. Savings deposits with the banks
‘Storage of Payment System Data’, popularly known as 4. Currency
data diktat, command the payment system providers that The correct sequence of these assets in the decreasing
-- They shall ensure that entire data relating to order of liquidity is -- 4, 1, 3, 2
payment systems operated by them are  The money multiplier in an economy increases with
stored in a system only in India -- Increase in the banking habit of the people
 This committee has been constituted by the Government  Money multiplier in India is defined as
of India to boost cashless transaction Broad Money
-- Neeraj Kumar Gupta Committee -- Reserve Money
 This one best describes the term ‘Merchant Discount
 What is black money -- It is an illegal income upon which
Rate’ sometimes seen in news
income tax is not paid
--The charge to a merchant by a bank for  This effect of creation of black money in India has been
accepting payments from his customers
the main cause of worry to the Government of India
through the bank’s debit cards
-- Loss of revenue to the State Exchequer
 This one links all the ATMs in India
due to tax evasion
-- National Payments Corporation of India
 This was not the stated objective of demonetization in
 The correct statements are :
-- National Payments Corporation of India (NPCI) helps India -- Increasing the growth rate of G.D.P.
 Paper currency was first started by the Government in
in promoting the financial inclusion in the country;
NPCI has launched RuPay, a card payment scheme India in -- 1862
 This is a most likely consequence of implementing the  The ‘Naya paisa’ was introduced with the decimal system
‘Unified Payments Interface (UPI)’ of coinage become paisa on -- June 1, 1964
-- Mobile wallets will not be necessary for online payments  In India, the decimal coinage system was introduced in
 With reference to ‘Bitcoins’, sometimes seen in the news, the year -- 1957
the correct statements are :  This statement correctly describes the meaning of legal
-- Anyone with a Bitcoin address can send and receive tender money -- The money which a creditor is under
Bitcoins from anyone else with a Bitcoin address; compulsion to accept in settlement of his claims
Online payments can be sent without either side  The Reserve Bank of India has the power to print currency
knowing the identity of the other notes of Rupees upto -- Rs. 10,000
 With reference to Non-Fungible Tokens (NFTs), the cor-  Note issuing department of RBI should always possess
rect statements are : the minimum gold stock of worth -- Rs 115 crore
—They enable the digital representation of physical  In India ‘Currency Notes issue system’ is based on
assets; They are unique cryptographic tokens -- Minimum reserve system
that exist on a blockchain  Reserve Bank of India issues currency notes against
 The sum of these constitutes Broad Money (M3) in India -- Gold; Foreign security; Govt. of India security
-- Currency with the public; Demand deposits  It is authorized to issue coins in India
with banks; Time deposits with banks; -- Ministry of Finance
Other deposits with RBI  Coins are minted in India at
 If you withdraw Rs. 1,00,000 in cash from your Demand -- Mumbai, Kolkata, Noida and Hyderabad
Deposit Account at your bank, the immediate effect on  Currency expansion can be best described by
aggregate money supply in the economy will be --
Higher prices
-- To leave it unchanged  With reference to Indian economy, demand-pull inflation
 Consider the following liquid assets : can be caused/increased by
1. Demand deposits with the banks -- Expansionary policies; Fiscal stimulus ;
2. Time deposits with the banks Higher purchasing power

GS Pointer Economic & Social Development E–38

 Due to inflation  The most common measure of estimating inflation in
-- Prices of goods increase; The value of money falls India is -- Consumer Price Index
 This is the definite implication of a fall in inflation rate  In India, headline inflation is based on
-- Prices are increasing more slowly than before -- Consumer Price Index-Combined (CPI-C)
 Who benefits most from inflation -- Debtors  The four percent inflation target in India with tolerance
 Inflation is beneficial to this section of economy level of + / – 2 percent for the period 2016 to 2021 was
-- Debtors fixed by -- Government of India
 The annual rate of inflation in India during the
 Consider the following statements :
2021-22 based on the monthly average of the Wholesale
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
Price Index was -- 13.0³
 The correct statements are:
Among the above the correct statement is -- Only 1
 A zero rate of inflation obtains necessarily in a year where
-- The weightage of food in Consumer Price Index (CPI)
is higher than that in Wholesale Price Index (WPI);
the annual rate of inflation
The WPI does not capture changes in the prices of
-- In every week of the year is zero
services, which CPI does; Reserve Bank of India has
 This statement is an appropriate description of deflation now adopted CPI (comb.) as its key measure of
-- It is a persistent fall in the general Inflation and to decide on changing the key policy rates
price level of goods and services  The correct statements with respect to Consumer Price
 A rapid increase in the rate of inflation is sometimes Index are :
attributed to the 'base effect'. The 'base effect' is -- It computes price changes in both goods and services;
-- It is the impact of the price levels of previous It is computed by the National Statistical Office (NSO);
year on the calculation of inflation rate It is taken as the measure of inflation while
 This governmental step has proved relatively effective in formulating Monetary Policy by RBI
controlling the double digit rate of inflation in the Indian  It brings out the ‘Consumer Price Index Number for
economy in the recent years Industrial Workers’ -- The Labour Bureau
-- Containing budgetary deficit and  The base of Consumer Price Index for industrial workers
unproductive expenditure has been shifted from 2001 to -- 2016
 Assertion (A) : The government faces a tough time tack-  This price index is used to compensate the wages of Cen-
ling the bottleneck inflation. tral Government employees
Reason (R) : The situation is due to deficiencies existing -- Consumer Price Index for Industrial Workers
in the economy such as supply bottleneck and inefficient  The basis of determining dearness allowances to
distribution. employees of India is -- Consumer Price Index
-- Both (A) and (R) are true, and (R) is  This Institution/Office bring out the Wholesale Price In-
the correct explanation of (A) dex (WPI) data in India

 Core inflation is defined as

-- Office of Economic Adviser (OEA),
Ministry of Commerce and Industry
-- Headline inflation excluding both
 The weightage (in percent) of manufactured products in
food inflation and fuel inflation
calculation of Wholesale Price Index (WPI) is — 64.23%
 Inflation indicates the rise in the price of
 With reference to the Wholesale Price Index (WPI), the
-- A basket of commodities on a point-to-point basis
correct statements are :
 Inflation rate going down does not mean
-- The new WPI series with base year 2011-12 = 100
-- Price are declining
became effective from April 2017; In the new WPI
 This is correct about inflation
series, the weight for primary articles is 22.62%;
-- The inflation rate in India is calculated on the The weight for manufactured products is
basis of the Consumer Price Index (Combined) 64.23% in new WPI series
GS Pointer Economic & Social Development E–39
 In calculation of Index of wholesale prices this sector is  Assertion (A) : Between October 2009 and February 2010
assigned maximum weightage -- Manufactured products the inflation rate in India was negative.
 The new WPI series was introduced on Reason (R) : Petrol price had come down from 140 $ a
-- 12 May, 2017 (effective from April, 2017) barrel to 30 $ a barrel in the global market.
 The base year for All-India Wholesale Price Index (WPI) -- Both (A) and (R) are true, and
has been changed by the Government of India from 2004- (R) is the correct explanation of (A)
05 to -- 2011-12  In India, the first Bank of limited liability managed by
 The new series of Wholesale Price Index (WPI) released Indians and founded in 1881 was
by the Government of India is with reference to the base -- Oudh Commercial Bank
prices of -- 2011-12  With reference to India, consider the following :
 In October 2009, a decision has been taken that the base 1. Nationalization of Banks
year of Wholesale Price Index (WPI) has been shifted from 2. Formation of Regional Rural Banks
1993-94 to -- 2004-2005 3. Adoption of villages by Bank Branches
 With reference to India, the correct statements are : Among the above, these can be considered as steps taken
-- The Wholesale Price Index (WPI) in India is available to achieve the ‘financial inclusion’ in India -- 1, 2 and 3
on a monthly basis only; As compared to Consumer  In the context of independent India’s economy, this was
Price Index for Industrial Workers [CPI (IW)] the the earliest event to take place
WPI gives less weight to food articles -- Enactment of Banking Regulation Act
 The current price index (base 1960) is nearly 330. This Note : Nationalization of Life insurance companies – 1956
means that -- Weighted mean of prices of certain Nationalization of State Bank of India – 1955
items has increased 3.3 times Enactment of Banking Regulation Act – 1949
 Producer Price Index measures Introduction of First Five Year Plan – 1951
-- The average change in the prices of  The Government of India has nationalized 14 banks of the
produced goods and services country in -- July, 1969
 Assertion (a) : Cost push inflation is caused by shift in  Arrange the following in chronological order :
aggregate supply curve. 1. Nationalization of 14 major banks
Reason (R) : Shift in aggregate supply curve takes place 2. Nationalization of SBI
because of increase in wages. 3. Nationalization of RBI
-- Both (A) and (R) are true, and 4. Nationalization of LIC -- 3, 2, 4, 1
(R) is the correct explanation of (A)  The correct statements are :
 It is NOT a method to control inflation -- Gorewala Committee’s recommendation led to the
-- Reducing the rate of interest establishment of State Bank of India; Six Commercial
 These are methods to control inflation Banks were nationalized on April 15, 1980
-- Controlling the demand; Controlling the supply  With reference to ‘EASE-Index’, this statement is correct
of money; Rationing of commodities; — It is a way to measure the
Increasing the rate of interest
performance of the public sector banks
 With reference to inflation in India, this statement is
 The number of public sector scheduled commercial banks
correct -- Decreased money circulation helps in India (excluding State Bank of India Group) is presently
in controlling the inflation
-- 11
 India has experienced persistent and high food inflation in
 The recent amalgamation of public sector banks in India is
the recent past. These could be the reasons :
aimed at these multiple gains
-- As a consequence of increasing incomes, the
consumption patterns of the people have undergone -- Economies of scale; Improved access to capital;
a significant change; The food supply chain Covering larger geographical areas;
has structural constraints Banks of global size

GS Pointer Economic & Social Development E–40

 The functions of commercial banks in India include  The Bank of Rajasthan had been merged with -- ICICI
-- Purchase and sale of shares and securities on behalf  This bank was closed due to securities scam
of customers; Acting as executors and trustees of wills -- Bank of Karad
 Among the ICICI, HDFC, Indian Overseas Bank and UTI  These institutions are involved in long-term industrial
Bank, it is the commercial bank of public sector financing -- ICICI, IDBI and IFCI
-- Indian Overseas Bank  The correctly matched lists are as follows :
 It was a private bank -- Bank of Punjab Bank Type
 Among the Bank of Baroda, Canara Bank, ICICI Bank and Indian Bank – Public
Punjab National Bank, it is not a nationalized bank ICICI Bank – Private
-- ICICI Bank CITI Bank – Foreign
 The State Bank of India was established in -- 1955 Saraswat Bank – Cooperative
 The largest commercial bank of India is  This Foreign Bank operating in India, has the largest number
-- State Bank of India of branches in the country
 The largest public sector commercial bank of India is the -- Standard Chartered Bank
-- State Bank of India (SBI)  The correctly matched pairs are as follows :
 This commercial banks of India comes in top 100 global Large Bank Country of origin
banks -- SBI ABN Amro Bank – Netherlands
 This bank has formed ‘farmers clubs’ to reach out to the
Barclays Bank – UK
farmers easily -- State Bank of India Kookmin Bank – South Korea
 Since October 2020, the SBI’s Chairman has been
 Consider the following :
-- Dinesh Kumar Khara 1. Regional Rural Banks 2. Lead Bank Scheme
 With reference to the ‘Banks Board Bureau (BBB)’, these
3. NABARD 4. State Bank of India
statements were correct
The correct chronological sequence of establishment of
— BBB (now FSIB) recommends for the selection of
these banks are : -- 4, 2,1, 3
heads for Public Sector Banks; BBB (now FSIB)
Note : SBI – 1955; Lead Bank Scheme – 1969; Regional
helps the Public Sector Banks in developing
Rural Banks – 1975; NABARD – 1982
strategies and capital rising plans
 At present, the Chairman of public sector banks are  The percentage of rural branches of all kinds of private,
selected by the public sector commercial Banks including Regional Rural
-- Financial Services Institutions Bureau (FSIB) Banks as on 30.06.2012, according to RBI, was
 This bank has started the ‘Simply Click’ credit card scheme approximately -- 37%
-- SBI  L.B.S. is one of the economic measures taken by the Gov-
 This bank became the first bank to open its branch in ernment of India for financial inclusion. What is L.B.S. in
China -- State Bank of India this context — Lead Banking Scheme
 This Private Bank for the first time set up its branch in  The 'Lead Bank' Scheme was launched in
China -- Axis Bank -- December, 1969
 This Indian commercial bank started the first ever moving  The functions of the Lead Bank are performed by
ATM Services -- ICICI -- A bank designated for this purpose
 This private sector bank has launched 'e-Kisaan Dhan'  The basic aim of Lead Bank Scheme is that
app for farmers -- HDFC Bank -- Individual banks should adopt
 The Commercial Banks which have been merged with the particular districts for intensive development
Punjab National Bank are  The Service Area Approach was implemented under the
-- New Bank of India (1993), Oriental Bank of purview of -- Lead Bank Scheme
Commerce and United Bank of India (2020)  District Credit Planning is done -- Under the Lead bank
GS Pointer Economic & Social Development E–41
 This banks operates mainly in relation to small industries  What is ‘Shadow Banking’
-- SIDBI -- Financial transactions and other activities of
 The Head Office of Small Industries Development Bank non-banking financial intermediary
of India (SIDBI) is located at -- Lucknow  The difference between a bank and a Non-Banking
 SIDBI has been established to Financial Institution (NBFI) is that
-- Finance small scale industries -- A bank indulges in a number of activities relating
 The correctly matched pairs are : to finance with a range of customers, while an
Name of the bank Location of head office
NBFI is mainly concerned with the term
Allahabad Bank – Kolkata
loan needs of large enterprises
Small Industries Development – Lucknow
 With reference to the Non-Banking Financial Companies
Bank of India
(NBFCs) in India, the correct statements are :
Indian Overseas Bank – Chennai
 ‘Financial Inclusion’ can be encouraged
-- They can engage in the acquisition of securities
issued by the government; They cannot accept
-- By issuing a ‘specific letter of credit’ to the deserving
beneficiaries; By providing banking services to people demand deposits like Savings Account
of lower income group with ‘zero’ or ‘minimum  On this date, the Ombudsman Scheme for the Non-Bank-
balance’; By providing financial services ing Financial Companies (NBFC), 2018 was effectively in-
to low income group troduced by Reserve Bank of India
 The objectives of financial inclusion are -- 23 February, 2018
-- To extend financial services to poor population;  Microfinance is the provision of financial services to
To extend financial sector into rural areas; people of low-income groups. This includes both the
To unlock the door of growth potential of weaker section consumers and the self-employed. The services rendered
 It is not the objective of financial inclusion under microfinance are :
-- Shrinking of banking infrastructure -- Credit facilities, Savings facilities, Insurance
 These are the hindrance in the process of financial facilities, Fund Transfer facilities
inclusion  RBI had set up a committee to study and give suggestions
-- Low income, illiteracy, lack of banks’ branches on the microfinance sector. Its Chairman was
 The Chairman of the ‘Committee on Financial Inclusion’ -- Y.H. Malegam
constituted in January 2005 was -- C. Rangarajan  ‘Gullak Bachcha Bank’ is a bank based in -- Patna
 This committee has given its recommendations on
 Among the credit to farmers, deposits of public, borrowing
‘financial inclusion’ -- Rangarajan Committee from RBI and demand deposits of industries, it is an asset
 The purpose of setting up of Small Finance Banks (SFBs)
for a Commercial Bank -- Credit to farmers
in India are -- To supply credit to small business units;
 Among the advances, deposits, investments and money
To supply credit to small and marginal farmers
at call and short notice, it is not included in the assets of
 The establishment of ‘Payment Banks’ is being allowed in
India to promote financial inclusion. These statements are
a commercial bank in India -- Deposits
correct in this context :  Among the Demand deposits, Time deposits, Inter-bank
-- Mobile telephone companies and supermarket chains liabilities and other borrowings, it is the most important
that are owned and controlled, by residents are eligible component of the liabilities of commercial banks in India
to be promoters of Payment Banks; Payment Banks -- Time deposits
cannot issue credit cards; Payment Banks cannot  Non-performing assets in commercial banks mean
undertake lending activities -- Loans in which interest or
 RBI has cleared the resolution to start Payment Banks in principal amount is not recovered
India for improving Financial Inclusion. Following  Priority sector lending by banks in India constitutes the
committee had recommended the creation of Payment lending to : -- Agriculture, Micro and small
Banks -- Nachiket Mor Committee enterprises,Weaker sections

GS Pointer Economic & Social Development E–42

 Short Term Loans is of -- Upto 1 year or 15 months  In India, the interest rate on savings accounts in all the
 The offering of ‘teaser loans’ by commercial banks is a Nationalized Commercial Banks is fixed by
cause of economic concern because -- Commercial banks based on market interest rate
-- The teaser loans are considered to be an aspect of  The purposes of the ‘Marginal Cost of Funds Based
sub-prime lending and banks may be exposed Lending Rate’ (MCLR) announced by RBI are :
to the risk of defaulters in future -- These guidelines help improve the transparency in
 Consider the following : the methodology followed by banks for determining
1. Market borrowing the interest rates on advances; These guidelines
help ensure availability of bank credit at interest rates
2. Treasury bills
which are fair to the borrowers as well as the banks
3. Special securities issued to RBI
 The correct statements related to Reserve Bank of India
Among the above, these are components of internal debt
(RBI) are :
-- 1, 2 and 3
-- It is the apex bank; It regulates the money supply
 In the context of the Indian economy, non-financial debt
 In India, it is responsible for maintaining price stability by
includes -- Housing loans owed by households; Amounts
controlling inflation — Reserve Bank of India
outstanding on credit cards; Treasury bills
 Consider the following statements regarding Reserve Bank
 The term ‘Core Banking Solutions’ is sometimes seen in of India :
the news. This statement best describes this term 1. It is a banker to the Central Government.
-- It is a networking of a bank’s branches which 2. It formulates and administers monetary policy.
enables customers to operate their account 3. It acts as an agent of the Government in respect of
from any branch of the bank on its network India’s membership of IMF.
regardless of where they open their accounts 4. It handles the borrowing programme of Government of
 The Government of India had acquired the RBI’s stake in India.
2007 in -- State Bank of India Among the above these statements are correct
 At present, it is not under the control of the Reserve Bank -- 1, 2, 3 and 4
of India -- NABARD  The Fiscal agent and advisor to Government in monetary
 The National Housing Bank (NHB) was set up in India as and financial matters is -- R.B.I.
a wholly-owned subsidiary of -- Reserve Bank of India  The correct statements are :
Note : Now Govt. of India holds 100% stake in NHB. -- The Reserve Bank of India manages and services
 ‘Basel III Accord’ or simply ‘Basel III’, often seen in the Government of India Securities and State Government
news, seeks to -- Improve banking sector’s ability to deal Securities; Treasury bills are issued by the
with financial and economic stress and improve Government of India and there are no treasury
risk management bills issued by the State Governments; Treasury
bills offer are issued at a discount from the par value
 Basel II relates to
 Treasury bills are sold in India by
-- International standards for measuring
the adequacy of a bank's capital
-- Reserve Bank of India
 With reference to India, consider the following statements:
 The correct statements are :
1. Retail investors through demat account can invest in
-- Capital Adequacy Ratio (CAR) is the amount that the 'Treasury Bills' and 'Government of India Debt Bonds'
banks have to maintain in the form of their own
in primary market.
funds to offset any loss that banks incur if
2. The 'Negotiated Dealing System-Order Matching' is a
the account holder fail to repay any dues; government securities trading platform of the Reserve
CAR is decided by the Central bank/bank regulator Bank of India.
 With reference to Deposit Insurance and Credit Guarantee 3. The 'Central Depository Services Ltd.' is jointly
Insurance Corporation, These statements are correct : promoted by the Reserve Bank of India and the
-- It is a subsidiary of Reserve Bank of India; Bombay Stock Exchange.
Deposits upto Rs. 5 lakh are insured by it Among the above, the correct statements are -- 1 and 2

GS Pointer Economic & Social Development E–43

 The Reserve Bank of India does not carries out the  These statements are correct regarding the Monetary
transactions of this State Government -- Sikkim Policy Committee (MPC) -- It decides the RBI’s benchmark
 The Reserve Bank of India regulates the commercial banks interest rates; It is a 6-member body including the
in matters of -- liquidity of assets; branch expansion; Governor of RBI; It functions under the chairmanship of
merger of banks; winding -up of banks the RBI Governor
 The correct statement about RBI are :  In India ‘Money and Credit’ is controlled by the
-- It is the Central Bank of the country; -- Reserve Bank of India
It is the banker of the Central and State  It is not an instrument of selective credit control in India
Governments; It is the custodian of the -- Variable cash reserve ratios
country’s Foreign Exchange Reserves  Some instruments of selective credit control in India are
 The headquarters of RBI is located in -- Mumbai -- Regulation of consumer credit; Rationing of credit;
 The Reserve Bank of India was established in -- 1935 Margin requirements
 The Banker’s Bank is -- Reserve Bank of India  It is not the method of quantitative credit control
 It controls the credit creation by commercial banks in India -- Rationing of credit
-- Reserve Bank of India  Open market operations are included in
 In India, the central bank's function as the 'lender of last -- Quantitative techniques of credit control
resort' usually refers to -- Providing liquidity to the banks  With reference to Indian economy, consider the
having a temporary crisis following :
 This statement is not correct regarding the Reserve Bank 1. Bank Rate
of India -- It issues all types of currency notes 2. Open market operations
 In Indian currency, the one rupee note was issued under 3. Public debt
the signature of 4. Public revenue
-- Finance Secretary, Ministry of Finance, Govt. of India Among the above, these are the components of monetary
 These are the functions of Reserve Bank of India policy -- 1 and 2
-- Regulation of Credit (Credit control); Regulation of  Open market operations of Reserve Bank of India refer to
currency; Apex body of scheduled commercial banks; -- Trading in securities
Conducting monetary policy
 In the context of Indian economy, 'Open Market Operations'
 This is not a function of Reserve Bank of India
refers to -- Purchase and sale of government
-- Credit creation securities by the RBI
 This is not a function of the Reserve Bank of India
 Variable reserve rates and Open Market Operations are
-- Regulation of foreign trade the means of -- Monentary Policy
 The Reserve Bank of India (RBI) acts as a bankers’ bank.
 Assertion (A) : Under Operation Twist, RBI
This would imply that
simultaneously sell short-term securities and buys long-
-- Other banks retain their deposits with the RBI; The
term securities.
RBI lends funds to the commercial banks in times
Reason (R) : The main objective of this operation is to
of need; The RBI advises the commercial
promote long-term investment.
banks on monetary matters
 This bank is the Central Bank of India
-- Both (A) and (R) are true, and
-- Reserve Bank of India (R) is the correct explanation of (A)

 Monetary Policy is -- Complementary to fiscal policy  These measures would result in an increase in the money
 This is not an objective of Monetary Policy supply in the economy
-- Equitable Distribution of Income and Assets -- Purchase of government securities from the public
 Who formulates the monetary policy in India by the Central Bank; Borrowing by the
-- Monetary Policy Committee (MPC) government from the Central Bank

GS Pointer Economic & Social Development E–44

 The measures that RBI uses to control inflation in the  Lowering the Cash Reserve Ratio, it will have the following
economy impact on the economy
-- Increase Bank Rate ; Increase Cash Reserve -- Banks will have higher leverage to liquidity;
Ratio ; Increase Statutory Liquidity Ratio; The economy may see increased investment;
Sell of government securities Supply of currency in the economy may broaden
 In the context of Indian economy, this is the purpose of  If the Cash Reserve Ratio is lowered by the RBI, it's impact
‘Statutary Reserve Requirements’ on credit creation will be -- Increase
-- To enable the Central Bank to control the amount  When the Reserve Bank of India announces an increase
of advances the banks can create of the Cash Reserve Ratio, it means
 This term indicates a mechanism used by commercial banks -- The commercial banks will have less money to lend
for providing credit to the government  This statement is correct regarding increase in the Cash
-- Statutory Liquidity Ratio Reserve Ratio in India -- It reduces credit creation
 When the Reserve Bank of India reduces the Statutory  Repo rate comes under purview of -- Monetary Policy
Liquidity Ratio by 50 basis points, this is likely to happen  'Repurchase Option’ is used -- To regulate the money
-- Scheduled Commercial banks supply and inflation in the economy
may cut their lending rates
 It regulates the Repo Rate -- Reserve Bank of India
 The banks are required to maintain a certain ratio between
 The interest rate at which the Reserve Bank of India lends
their cash in hand and total assets. This is called to Commercial banks in the short term to maintain liquidity
-- SLR (Statutory Liquidity Ratio) is known as -- Repo Rate
 Among the Bank Rate, C.R.R., P.L.R. and S.L.R., it is not
 The rate of interest at which Reserve Bank of India lends
determined by Reserve bank of India -- P.L.R. short term funds to the Commercial Banks is known as
 The terms ‘Marginal Standing Facility Rate’ and ‘Net
-- Repo Rate
Demand and Time Liabilities’, sometimes appearing in
 The rate at which banks lend to Reserve Bank of India is
news, are used in relation to -- Banking operations known as -- Reverse Repo Rate
 If the RBI decides to adopt an expansionist monetary policy,  The correct statements are :
among the following, it would not do -- The repo rate is the rate at which other banks borrow
1. Cut and optimize the Statutory Liquidity Ratio from the Reserve Bank of India;
2. Increase the Marginal Standing Facility Rate A value of 1 for Gini Coefficient in a country
3. Cut the Bank Rate and Repo Rate -- 2 only implies that there is perfectly unequal
 If the interest rate is decreased in an economy, it will income for everyone in its population
-- Increase the investment expenditure in the economy  The correct statements are :
 Financial sector reforms in India consist of -- Bank Rate is the rate of interest which RBI charges
-- Lowering down of CRR and SLR; its clients on their long-term borrowing;
Entry of private firms in insurance sector; Repo Rate is the rate of interest which RBI charges
Deregulation of interest rates its clients on their short-term borrowing
 Since the economic reforms were launched in India, this  Inflation rate based on Consumer Price Index increases if
statement is true for Statutory Liquidity Ratio (SLR) and -- Bank rate is decreased; Reverse repo rate is decreased
Cash Reserve Ratio (CRR) of the commercial banks  An increase in the Bank Rate generally indicates that the
-- Both SLR and CRR have been reduced -- Central Bank is following a tight money policy
 The mandatory proportion of the total deposits and  The lowering of Bank Rate by the Reserve Bank of India
reserves of the commercial banks deposited with the leads to -- More liquidity in the market
Reserve Bank of India is called -- Cash Reserve Ratio  Bank Rate implies the rate of interest
 An increase in CRR by the Reserve Bank Of India results -- At which the Reserve Bank of India
in -- Reduction in liquidity in the economy discounts the Bills of Exchange

GS Pointer Economic & Social Development E–45

 Bank rate means  Industrial Finance Corporation of India works as
-- Official rate of interest charged by Central Bank -- A development bank
 Bank Rate means the rate of interest  Consider the following :
-- Charged by Reserve Bank of India on 1. Industrial Finance Corporation of India
loans given to commercials banks 2. Industrial Credit and Investment Corporation of India
 At present (as on 5 August, 2023) the policy rates and 3. Industrial Development Bank of India
reserve ratios of RBI are as follows : 4. Unit Trust of India
-- Policy Repo Rate – 6.50% The correct sequence in which the above were established

Fixed Reverse Repo Rate – 3.35% is : -- 1, 2, 4, 3

 Consider the following financial institutions of India:
Standing Deposit Facility Rate – 6.25%
1. Industrial Finance Corporation of India (IFCI)
MSF Rate – 6.75%
2. Industrial Credit and Investment Corporation of India
Bank Rate – 6.75%
(ICICI)
CRR – 4.50%
3. Industrial Development Bank of India (IDBI)
SLR – 18.00%
4. National Bank for Agriculture and Rural Development
 Consider the following Governors of Reserve Bank of In- (NABARD)
dia and arrange them in chronological order : The correct chronological sequence of the establishment
I. Dr. C. Rangarajan of these institution is -- 1, 2, 3, 4
II. Dr. I.G. Patel  The correctly matched lists are as follows :
III. Dr. D. Subbarao Industrial Credit and Investment – 1955
IV. Dr. Manmohan Singh -- II, IV, I and III Corporation of India (ICICI)
 The correct statements are : Industrial Development Bank of – 1964
– The Governor of the Reserve Bank of India (RBI) India (IDBI)
is appointed by the Central Government; The Industrial Finance Corporation of – 1948
Governor of the RBI draws his power from the RBI Act India (IFCI)
 Among the Manmohan Singh, Bimal Jalan, C. Rangarajan Small Industries Development – 1990
and Raja J. Chelliah, he has not been the Governor of Bank of India (SIDBI)
 The correctly matched lists are as follows :
Reserve Bank of India -- Raja J. Chelliah
1982 – Export-Import Bank of India
 At present, the Governor of the Reserve Bank of India is
1964 – Industrial Development Bank of India
-- Shaktikanta Das
1955 – Industrial Credit and Investment Corpo-
 The Committee on Financial Sector Assessment was
ration of India
Co-chaired by -- Deputy Governor of Reserve Bank of 1987 – Board of Industrial and Financial Re-
India and Finance Secretary, Government of India construction
 The accounting year of the Reserve Bank of India is  Among the SEBI, SAIL, SIDBI and NABARD, it is a
-- April - March marketing institution -- SAIL
 The financial year for banks is April-March; but what is  Among the State Bank of India, SIDBI and NABARD, it is
the financial year for RBI -- April-March not an apex institution -- State Bank of India
 Negotiable Instruments Act came into effect in --- 1882  The correctly matched pairs of Institutions and their
 Meaning of company limited by shares is establishment year are as follows :
-- Restricted liability of holders Institution Established in (Year)
 It is not a feature of Limited Liability Partnership firm Life Insurance Corporation – 1956
-- Partners should be less than 20 of India (L.I.C.)
(There is not any limit) Unit Trust of India (U.T.I.) – February, 1964
 An International Financial Services Centre has been set Industrial Development Bank – July, 1964
up at -- Gandhinagar of India (IDBI)

GS Pointer Economic & Social Development E–46

 Securities and Exchange Board – 1988  It is the largest mutual fund organization in India
of India (SEBI) -- SBI Mutual Fund
 The Head Office of National Stock Exchange of India is
 The Life Insurance Corporation of India was established
located at -- Mumbai
in -- 1956
 The promoters of National Stock Exchange of India in-
 The Insurance Regulatory and Development Authority
was set up in India on -- April, 2000 clude -- State Bank of India, LIC, GIC, IDBI
 The correct statements are:
 For regulation of the insurance business in the country
the government has formed
-- Sensex is based on 30 of the most important stocks
available on the Bombay Stock Exchange (BSE);
-- Insurance Regulatory and Development Authority
For calculating the Sensex, all the stocks
 IRDAI regulates -- Insurance Companies
are assigned proportional weightage
 IRDAI has set up a panel under whose chairmanship to
 A rise in 'SENSEX' means
examine need for standard cyber liability insurance product
-- P. Umesh -- An overall rise in prices of shares of group of 30
companies registered with Bombay Stock Exchange
 The word ‘Actuaries’ is related to -- Insurance
 ‘BSE Sensex’ is an index to measure ups and downs in the
 'Principle of Indemnity' does not apply to -- Life Insurance
share market. The number of companies covered under
 Provident Fund in India is -- Contractual savings
 Money received by the Government under the 'State
the index are -- 30
 At present, no. of companies BSE GREENEX Index
Provident Funds' is credited to the
-- Public Accounts Fund includes -- 25

 Importance of these institutions in India has reduced to  Among the major stock exchanges of India, the exchange

most -- Pension Funds which recorded highest turnover

 In India, it was regulated by the Forward Markets Com- -- National Stock Exchange
mission -- Commodities Futures Trading  The volatility in the Indian share market is due to :
 This agency regulates the mutual funds in India -- SEBI -- Inflow and outflow of foreign funds; Fluctuations in
 SEBI Act was passed in the year -- 1992 foreign capital markets; Changes in the monetary policy
 It controls the working of share market in India -- SEBI  ‘Dalal Street’ is situated at -- Mumbai
 This organization is the main regulator of stock markets in  Terms ‘Bull’ and ‘Bear’ are associated with this branch of
India -- Security and Exchange Board of India (SEBI) commercial activity -- Share Market
 To prevent recurrence of scams in Indian capital  In the parlance of financial investments, the term ‘bear’
market, the Government of India has asigned regulatory denotes -- An investor who feels that the price of
powers to -- SEBI a particular security is going to fall
 It is related to the regulation of stock exchange operations  Among the Broker, Bull, Bear and Stag, it is not a speculator
-- SEBI in the stock exchange -- Broker
 Private Sector Mutual Funds in India were permitted in  Sweat Equity shares are issued to
-- 1993 — Employees of the company
 Unit Scheme 1964 was in news, because  Insider trading is related to -- Share market
-- Its net worth had dropped significantly due to the  Capital Market means -- Share market
long slump in the stock market  The most volatile part of the Organized Money Market in
 The objectives of Unit Trust of India are : India is -- Call Money Market
-- To give the benefit of its earnings to small investors;  Among the IDBI, ICICI, Money Market Mutual Funds
To invest in such a way as to promote industrial and RBI, it is not a participant in the India’s money market
development; To mobilise public savings -- RBI
GS Pointer Economic & Social Development E–47
 With reference to the Indian economy, the correct  The correctly matched pairs are :
statements are Japan – Nikkei
-- 'Commercial Paper' is a short-term unsecured Singapore – STI
promissory note; 'Call Money' is a short-term U.K. – FTSE
finance used for inter-bank transactions U.S.A. – Nasdaq
 For which, commercial paper is the source of credit China – Shcomp
-- Corporate Industry  This is related to Brent Index -- Crude oil prices
 With reference to Convertible Bonds, the correct state-  Debenture holders of a company are its -- Creditors
ments are :  Among the LIC Policy, Bank Fixed Deposit, Kisan Vikas
—As there is an option to exchange the bond for equity, Patra and Debenture of a Company, it is different from the
Convertible Bonds pay a lower rate of interest; The
others from the point of view of ownership
option to convert to equity affords the bondholder a
-- Debenture of a Company
degree of indexation to rising consumer prices
 The first Land Development Bank was established in 1920.
 Indian Government Bond Yields are influenced by
It was located in -- Jhang (Punjab)
-- Actions of the United States Federal Reserve;
 Land Development Bank provides loans to farmers for
Actions of the Reserve Bank of India;
-- Long term
Inflation and short-term interest rates
 This function of Land Development Bank is correct
 With reference to the Indian economy, the advantages of
‘Inflation-Indexed Bonds (IIBs)’ are
-- Providing long term loans to farmers
— Government can reduce the coupon rates on its  This bank gives Long term loans to Agriculture
borrowing by way of IIBs; IIBs provide protection -- Land Development Bank
to the investors from uncertainty regarding inflation  Land Development Banks is a part of
 This is issued by registered foreign portfolio investors to -- Co-operative Credit Structure
overseas investors who want to be part of Indian stock  Central Cooperative Banks work at -- District level
market without registering themselves directly  Structure of Co-operative credit societies is
-- Participatory Note -- Three tiered
 Limit of investment for outstanding corporate bond for  This operates at the district level
Foreign Portfolio Investment in Union Budget 2020-21 has -- Central Cooperative Bank
been extended upto -- 15%  With reference to 'Urban Cooperative Banks' in India, the
 Blue Chip means correct statements are :
-- Shares giving consistent high rate of return -- They can issue equity shares and preference shares;
 Gilt-edged market means They were brought under the purview of the Banking
-- Market of Government securities Regulation Act, 1949 through an Amendment in 1966
 These are called gilt edged securities  As on March 2022, the number of Urban Co-operative
— Government Securities Banks in India is -- 1514
 Among the Sensex, B.S.E., Nifty and SAPs, it is irrelevant
 Consumer Cooperative Stores are set up
in the context of share market -- SAPs
-- by the members
 ‘NIKKEI’ is
 It is not a source of direct finance to individuals
-- Share Price Index in Tokyo Stock Exchange
 S & P 500 is related to
-- NABARD
 During this Plan Period the National Bank for Agriculture
-- An index of stocks of large companies
 The correctly matched pairs are : and Rural Development (NABARD) was established
Dow Jones – New York -- Sixth Five Year Plan
Hang Seng – Hong Kong  The apex bank for providing agricultural refinance in India
FTSE-100 – London is -- NABARD
GS Pointer Economic & Social Development E–48
 The ‘National Bank for Agriculture and Rural Develop-  Narasimham Committee was related to
ment’ was set up in the year -- 1982 -- Banking Structure Reforms
 NABARD came into existence in the year -- 1982  This committee examined and suggested Financial Sector
 The Headquarter of NABARD is in -- Mumbai reforms -- Narasimham Committee
 Only organization to cater to all types of credit  The Committee on Financial Sector Reforms 2008, in India
requirements of agriculture and rural development was headed by -- Raghuram Rajan
activities, is -- NABARD  On recommendations of this committee, the Microfinance
 NABARD prodives refinance Institutions were set up in 2011 -- Malegam Committee
-- For agriculture and rural development  The Bimal Jalan Panel was set up by Reserve Bank of India
 The Apex Institution to finance agriculture credit in to -- Scrutinize application for new bank licenses
India is -- NABARD  The first Chairman of the ‘Disinvestment Commission’ of
 The Apex bank of agriculture sector is -- NABARD India was -- G.V. Ramkrishna
 In relation to Agricultural Finance and Refinance, this  Rangarajan Committee on disinvestment of shares was
institution is the biggest -- NABARD appointed by the Government of India in -- 1993
 NABARD is related to -- National Bank for Agriculture
 Among the Disinvestment, Banking reform, Tax reform
and Rural Development
and Foreign trade, the Rangarajan Committee was
 In India, NABARD does not provide refinance to
constituted for -- Disinvestment
-- Export-Import Bank  He was made the Chairman of the working group on
 The nodal agency for implementing the ‘Rural
revision of Wholesale Price Index Series in 2007
Infrastructure Development Fund Programmes’ is
-- Abhijit Sen
-- NABARD
 With reference to ‘Financial Stability and Development
 The first Regional Rural Bank was formed in -- 1975
Council’, the correct statements are :
 In India, regional rural banks were established in the year
-- It is headed by Union Finance Minister; It monitors
-- 1975
macroprudential supervision of the economy
 The functions of Regional Rural Banks are
 Recently, a scheme named ‘Swabhimaan’ was launched.
-- To provide credit to small and marginal farmers;
It’s main aim is
To provide credit to common people in rural areas;
To supplement Scheduled Commercial Banks
-- To take banks to the doorsteps of the rural poor
 It is not the function of Regional Rural Banks  ‘Swabhimaan Scheme’ launched in India is associated
-- To take over the functions of Agricultural with -- Rural banking
Refinance Corporation of India  These are the facilities the beneficiaries can get from the
 They grant direct credit assistance to rural household services of Business Correspondent (Bank Saathi) in
-- Regional Rural Banks; Land Development Banks branchless areas -- It enables the beneficiaries to draw
 Bhandari Committee was related to their subsidies and social security benefits in their
— Regional Rural Banks’restructuring villages; It enables the beneficiaries in the rural areas to
 Consider the following events and arrange them in make deposits and withdrawals
chronological order :  These are the purposes of the Government’s ‘Sovereign
1. Establishment of NABARD – 1982 Gold Bond Scheme’ and ‘Gold Monetization Scheme’
2. Self Help Group Bank Linkage Programme – 1992-93 -- To bring the idle gold lying with Indian households
3. Kisan Credit Card Plan – 1998 into the economy;To Reduce India's
4. Establishment of Regional Rural Bank – 1975 dependence on gold imports
-- 4, 1, 2, 3  Among the NABARD, Commercial Banks, RRBs and
 The Narasimham Committee for Financial Sector Reforms Cooperative Banks, it does not implement the Self Help
has suggested reduction in -- SLR and CRR Groups (SHGs) – Bank Linkage Programme -- NABARD
GS Pointer Economic & Social Development E–49
 This is covered by the Kisan Credit Card Scheme  This type of market is suitable for vegetable crops
-- Consumption Credit and Investment Credit -- Very short term
 Kisan Credit Card (KCC) Scheme for farmers was introduced  The supply-side economics lays greater emphasis on the
in -- 1998-1999 point of view of -- Producer
 When the total product remains constant, the marginal
 With reference to the institution of Banking Ombudsman
product will be -- Zero
in India, this statement is not correct
 A consumer is said to be in equilibrium, if
-- The orders passed by the Banking Ombudsman are -- He is able to fulfil his need with
final and binding on the parties concerned a given level of income
 These are the credit rating agencies in India  Other things remaining unchanged, market demand for a
-- CRISIL, CARE, ICRA good might increase, if
 Consider the following Credit Rating Agencies and arrange -- price of its substitute increases; its price falls
them in chronological order :  With fixed demand and increase in supply, the price of the
1. CARE commodity is likely to -- Decrease
 A rise in general level of prices may be caused by
2. ICRA
-- An increase in the money supply;
3. CRISIL – 3, 2, 1
A decrease in the aggregate level of output;
Credit Rating Agency Set up Year An increase in the effective demand
CARE – 1993  Supply of money remaining the same when there is an
ICRA – 1991 increase in demand for money, there will be
CRISIL – 1987 -- An increase in the rate of interest
 Assertion (A) : All businessmen make profit due to price-
 The correct statements are :
hike.
— The rating agency popularly known as ICRA is a Reason (R) : The customer has to curtail his needs due to
public limited company ; Brickwork Ratings is an price-hike.
Indian credit rating agency; In India, credit rating -- Both A and R are true, but
agencies are regulated by SEBI R is not the correct explanation of A
 Under these circumstances may ‘capital gains’ arise  Improvement of profit volume ratio can be done by the
-- When there is a natural increase in the value of the -- Increasing selling price; Altering sales mixture;
Reducing Variable cost
property owned; When you purchase a painting
 With reference to Commerce, these statements are correct
and there is a growth in its value due to
— It is the field of business that assists in the
increase in its popularity removal of all impediments to the facilitation
 The Phillips Curve represents relationship between of exchange and It deals with the factors
-- Inflation and Unemployment of delivering the products to the consumers
 'Smart Money' is a term used for -- Credit Card  Auctions or dynamic pricing markets are examples of
 It is called ‘Plastic Money’ -- Credit card — B2B commerce and C2C commerce
 Consumers fix price on their own, which business accept
 The term ‘plastic money’ applies to
or decline comes under _____ model — C2B
-- Credit cards mainly issued by the banks  With reference to the expenditure made by an organisation
 It is not a prepaid payment instrument or a company, these statements are correct
-- Credit Card of a Nationalized Bank — Acquiring new technology is capital
 With reference to trade, this statement is correct expenditure; Debt financing and equity financing are
— It represents demand and supply both considered as part of capital receipts
 For pricing of public goods, the concept of ‘Shadow Prices’
 For the existence of a market it is indispensable -- Prices
was given by -- J. Tinbergen
 Market is an economic tendency, which leads to this trend
 If a commodity is provided free to the public by the
-- Consumerism Government, then
 The buyer's market is known where -- The opportunity cost is transferred from the
-- Supply is more than the demand consumers of the product to the tax-paying public

GS Pointer Economic & Social Development E–50