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Indian Economy

621 questions asked in UPSC Prelims.

2002 · Q85Indian EconomyInfrastructure & Industrymoderate

With reference to the public Sector Undertaking in India, consider the following statements: 1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country. 2. Project and Equipment Corporation of India Limited is under the Ministry of Industry. 3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities Which of these statements is/are correct?

  1. (a)1 only
  2. (b)1 and 2
  3. (c)2 and 3
  4. (d)3 only
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Official answer(a) 1 only

2002 · Q87Indian EconomyFiscal Policy & Budgetdifficult

With reference to the Indian Public Finance consider the following statements: 1. External liabilities reported in Union Budget are based on historical exchange rates. 2. The continued high borrowing has kept the real interest rates high in the economy. 3. The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect to private investments. 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct?

  1. (a)1, 2 and 3
  2. (b)1 and 4
  3. (c)2, 3 and 4
  4. (d)1, 2, 3 and 4
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Official answer(c) 2, 3 and 4

2002 · Q96Indian EconomyHuman Development, Poverty & Employment Schemesmoderate

Which reference to the government’s welfare schemes, consider the following statements: 1. Under the Antyodaya Anna Yojana, the food grains are available to the poorest of the poor families at Rs 2 per kg for wheat and Rs 3 per kg for rice. 2. Under the National Old Age Pension Scheme, the old and destitute are provided Rs 75 per month as Central pension, in addition to the amount provided by most State Governments. 3. Government of India has allocated 25 kg food grains per Below Poverty Line family per month, at less than half the economic cost. Which of these statements are correct?

  1. (a)1 and 2
  2. (b)1 and 3
  3. (c)2 and 3
  4. (d)1, 2 and 3
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Official answer(a) 1 and 2

2002 · Q109Indian EconomyInfrastructure & Industrymoderate

Consider the following statements: 1. NTPC is the largest power utility in India. 2. ONGC accounts for half of the LPG production in India. 3. Indian Oil Corporation operates all the oil refineries in India. 4. The Indian Ordinance Factory is the largest departmentally run industrial undertaking in the country. Which of these statements is/are correct?

  1. (a)1 only
  2. (b)2 and 3
  3. (c)2, 3 and 4
  4. (d)1 and 4
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Official answer(d) 1 and 4

2002 · Q122Indian EconomyBanking & Financial Sectormoderate

Consider the following financial institutions of India: 1. Industrial Finance Corporation of India (IFCI) 2. Industrial Credit and Investment Corporation of India (ICICI) 3. Industrial Development Bank of India (IDBI) 4. National Bank for Agriculture and Rural Development (NABARD) The correct chronological sequence of the establishment of these institutions is

  1. (a)1, 2, 3, 4
  2. (b)2, 3, 4, 1
  3. (c)3, 4, 1, 2
  4. (d)4, 1, 2, 3
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Official answer(a) 1, 2, 3, 4

2002 · Q132Indian EconomyInfrastructure & Industrymoderate

With reference to power sector in India consider the following statements: 1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana. 2. 100 per cent Foreign Direct Investment in power is allowed without upper limit 3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 states. Which of these statements is/are correct?

  1. (a)1 only
  2. (b)1 and 2
  3. (c)2 and 3
  4. (d)3 only
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Official answer(b) 1 and 2

2002 · Q133Indian EconomyExternal Sector & Balance Of Paymentseasy

A country is said to be in debt trap if

  1. (a)it has to abide by the conditionalities imposed by the International Monetary Fund
  2. (b)it has to borrow to make interest payments on outstanding loans
  3. (c)it has been refused loans or aid by creditors abroad
  4. (d)the World Bank charges a very high rate of interest on outstanding as well as new loans
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Official answer(b) it has to borrow to make interest payments on outstanding loans

2002 · Q137Indian EconomyExternal Sector & Balance Of Paymentsmoderate

Consider the following statements: Full convertibility of the rupee may mean 1. Its free float with other international currencies. 2. Its direct exchange with any other international currency at any prescribed place inside and outside the country. 3. It acts just like any other international currency. Which of these statements are correct?

  1. (a)1 and 2
  2. (b)1 and 3
  3. (c)2 and 3
  4. (d)1, 2 and 3
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Official answer(d) 1, 2 and 3

2001 · Q19Indian EconomyNational Income & Economic Growthmoderate

The term National Income represents

  1. (a)Gross National Product at market prices minus depreciation
  2. (b)Gross National Product at market prices minus depreciation net factor income from abroad
  3. (c)Gross National Product at market prices minus depreciation and indirect taxes subsidies
  4. (d)Gross National Product at market prices minus net factor income from abroad
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Official answer(c) Gross National Product at market prices minus depreciation and indirect taxes subsidies

2001 · Q29Indian EconomyInfrastructure & Industrymoderate

Assertion (A): There was an increase in industrial production during 1999-2000. Reason (R): The period witnessed a stable exchange rate and improved business sentiments.

  1. (a)Both A and R are individually true, and R is the correct explanation of A
  2. (b)Both A and R are individually true, but R is NOT a correct explanation of A
  3. (c)A is true, but R is false
  4. (d)A is false, but R is true
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Official answer(a) Both A and R are individually true, and R is the correct explanation of A

2001 · Q30Indian EconomyIT & Services Sectormoderate

Assertion (A): India's software exports increased at an average growth rate of 50% since 1995-96. Reason (R): Indian software companies were cost-effective and maintained international quality.

  1. (a)Both A and R are individually true, and R is the correct explanation of A
  2. (b)Both A and R are individually true, but R is NOT a correct explanation of A
  3. (c)A is true, but R is false
  4. (d)A is false, but R is true
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Official answer(a) Both A and R are individually true, and R is the correct explanation of A

2001 · Q31Indian EconomyExternal Sector & Balance Of Paymentsmoderate

Assertion (A): Ceiling on foreign exchange for a host of current account transaction heads was lowered in the year 2000. Reason (R): There was a fall in foreign currency assets also.

  1. (a)Both A and R are individually true, and R is the correct explanation of A
  2. (b)Both A and R are individually true, but R is NOT a correct explanation of A
  3. (c)A is true, but R is false
  4. (d)A is false, but R is true
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Official answer(c) A is true, but R is false

2001 · Q38Indian EconomyInfrastructure & Industrymoderate

Consider the following statements regarding power sector in India: I. The installed capacity of power generation is around 95000 MW. II. Nuclear plants contribute nearly 15% of total power generation. III. Hydroelectricity plants contribute nearly 40% of total power generation. IV. Thermal plants at present account for nearly 80% of total power generation. Which of these statements is/are correct?

  1. (a)I only
  2. (b)II and III
  3. (c)III and IV
  4. (d)I and IV
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Official answer(d) I and IV