UPSC IAS Archives

31. In the context of India, which of the following factors is/are contrib

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

1. The foreign currency earnings of India’s IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad

Select the correct answer using the code given below.

1 only

1 and 3 only

2 only

1, 2 and 3

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UPSC IAS – 2019

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The question asks which factors contribute to reducing the risk of a currency crisis in India. A currency crisis is often associated with insufficient foreign exchange reserves to meet external obligations or defend the currency’s value against speculative attacks. Factors that increase foreign currency inflows or reduce dependence on foreign currency outflows help mitigate this risk.
Statement 1: The foreign currency earnings of India’s IT sector represent significant inflows of foreign exchange, boosting the country’s reserves. This directly helps in building a buffer against potential crises and reduces the risk.
Statement 3: Remittances from Indians abroad are also a major source of foreign currency inflow into India. Similar to IT sector earnings, remittances augment foreign exchange reserves and contribute to external stability, thus reducing the risk of a currency crisis.
Statement 2: Increasing government expenditure, if not financed sustainably, can lead to higher fiscal deficits. This can potentially exacerbate current account deficits (if it stimulates imports) or lead to inflation, which can erode confidence in the currency and potentially increase the risk of external instability, rather than reduce it.
Therefore, factors 1 and 3 contribute to reducing the risk of a currency crisis, while factor 2 is generally considered a potential risk factor if not managed prudently.

Strong foreign currency inflows from sources like IT exports and remittances increase foreign exchange reserves, which act as a buffer against currency crises. Unchecked increases in government expenditure can potentially increase external vulnerabilities.

A currency crisis typically involves a sharp decline in the value of a country’s currency, often accompanied by a depletion of foreign exchange reserves and difficulties in servicing external debt. Building up foreign exchange reserves through exports, services earnings, remittances, and foreign investment inflows is a key strategy for preventing such crises. Conversely, large and persistent current account deficits, unsustainable fiscal policies, excessive external borrowing, and capital flight can increase the vulnerability to a currency crisis.

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32. Which of the following is not included in the assets of a commercial b

Which of the following is not included in the assets of a commercial bank in India?

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Advances

Deposits

Investments

Money at call and short notice

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Deposits are not included in the assets of a commercial bank in India.

In banking terminology, assets are what a bank owns or what is owed to it, while liabilities are what a bank owes to others.
A) Advances (Loans): When a bank provides a loan to a customer, the customer owes the bank money. This is an asset for the bank.
B) Deposits: When a customer deposits money into an account, the bank owes that money back to the customer. Therefore, deposits represent a liability for the bank, not an asset.
C) Investments: Banks invest in various instruments like government securities, bonds, and shares. These investments are assets owned by the bank.
D) Money at call and short notice: This refers to very short-term loans made by banks to other financial institutions. The amount lent is owed back to the lending bank, making it an asset.

The balance sheet of a commercial bank lists its assets (like cash reserves, loans, investments) and liabilities (like deposits, borrowings, capital). The fundamental accounting equation applies: Assets = Liabilities + Equity. Deposits are the primary source of funds for most banks and are thus their largest liability.

33. Consider the following statements : 1. Most of India’s external debt

Consider the following statements :

1. Most of India’s external debt is owed by governmental entities.
2. All of India’s external debt is denominated in US dollars.

Which of the statements given above is/are correct?

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1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Neither statement 1 nor statement 2 is correct.

Statement 1 is incorrect. India’s external debt is owed by various sectors, including sovereign (government) and non-sovereign entities (such as corporate sector, banks, and NRI depositors). Data from the Reserve Bank of India (RBI) consistently shows that non-sovereign debt constitutes a larger portion of India’s total external debt than sovereign debt. For instance, non-sovereign debt often accounts for over three-fourths of the total external debt.

Statement 2 is incorrect. India’s external debt is denominated in multiple currencies. While the US dollar is the dominant currency, a significant portion is also denominated in Indian Rupees (e.g., Rupee Denominated Bonds held by non-residents), SDRs, Japanese Yen, Euro, and other currencies. Therefore, not all of India’s external debt is denominated in US dollars.

India’s external debt composition is monitored closely by the government and RBI. Key components of non-sovereign debt include commercial borrowings, NRI deposits, short-term trade credit, and rupee debt. The currency composition is important for assessing exchange rate risk.

34. With reference to the management of minor minerals in India, consider

With reference to the management of minor minerals in India, consider the following statements :

1. Sand is a ‘minor mineral’ according to the prevailing law in the country.
2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.

Which of the statements given above is/are correct?

1 and 3 only

2 and 3 only

3 only

1, 2 and 3

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Statements 1 and 3 are correct.

Statement 1 is correct. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) defines ‘minor minerals’. Section 3(e) of the Act lists several minerals as minor minerals, including building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral. Ordinary sand is explicitly included.

Statement 2 is incorrect. Section 15 of the MMDR Act, 1957, empowers State Governments to make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith. This includes the power to frame rules related to the grant of leases. The Central Government’s rule-making power under Section 14 applies only to minerals *other than* minor minerals.

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Statement 3 is correct. Section 23C of the MMDR Act, 1957, empowers State Governments to make rules for preventing illegal mining, transportation and storage of minor minerals and for the purposes connected therewith.

The management and regulation of minor minerals fall primarily under the jurisdiction of State Governments, including making rules for their grant, regulating leases, and preventing illegal mining. Major minerals are regulated by the Central Government under the MMDR Act, 1957, though states play a significant role in their administration as well.

35. The Service Area Approach was implemented under the purview of

The Service Area Approach was implemented under the purview of

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Integrated Rural Development Programme

Lead Bank Scheme

Mahatma Gandhi National Rural Employment Guarantee Scheme

National Skill Development Mission

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The Service Area Approach was implemented under the purview of the Lead Bank Scheme.

The Service Area Approach (SAA) was introduced by the Reserve Bank of India (RBI) in April 1989. It was an integral part of the Lead Bank Scheme, aiming to assign specific villages to each bank branch operating in rural and semi-urban areas. The objective was to ensure planned and orderly development of banking facilities, particularly credit delivery, in rural areas by making each branch responsible for a designated ‘service area’ (a cluster of villages). This was intended to improve the quality of credit planning and flow to the rural sector and avoid overlapping service areas among different banks.

The Lead Bank Scheme was introduced in 1969 based on the recommendations of the Gadgil Study Group and the Nariman Committee, aiming to give a lead role to individual banks (both public and private sector) for banking development in specific districts. The SAA operationalized the ground-level implementation of credit plans under the Lead Bank Scheme by assigning specific geographical responsibilities to bank branches. The SAA guidelines were revised in 2004, and the focus shifted towards Block as the unit for planning rather than individual villages assigned to branches.

36. Consider the following statements: As per the Industrial Employment (S

Consider the following statements:
As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018

1. if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
2. no notice of termination of employment shall be necessary in case of temporary workman

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Answer is Wrong!

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UPSC IAS – 2019

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Statement 1 is correct.

Statement 1 is correct. The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (which led to insertion in model Standing Orders) introduced Fixed-Term Employment (FTE). A fixed-term workman is engaged for a fixed period. Upon expiry of the fixed term, the employment automatically terminates. This bypasses the requirement for following the formal retrenchment procedures under the Industrial Disputes Act, 1947 (like notice period or compensation based on service length) that would typically apply to permanent employees being laid off. Thus, for the employer, it is easier to end the employment at the conclusion of the term compared to laying off a permanent worker.

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Statement 2 is incorrect. The rule introduced by the 2018 amendment regarding termination notice specifically states: “Provided that in case of a *fixed term workman*, no notice of termination of employment shall be necessary”. This rule applies to ‘fixed term workmen’, which is a specific category introduced by the amendment. The term ‘temporary workman’ under the Standing Orders might encompass different types of temporary arrangements, and the rules regarding notice for temporary workers can differ based on service duration and specific company Standing Orders (if certified). The statement uses the potentially broader term “temporary workman” while the amendment’s specific provision applies to the newly defined “fixed term workman”.

Fixed-Term Employment (FTE) was introduced to provide flexibility to employers to hire workers for specific projects or periods without the complexities of managing permanent staff when the project or period ends. FTE workers are entitled to the same wages, allowances, and other benefits as permanent workers doing the same work, but their employment ends automatically with the contract period.

37. As per the Solid Waste Management Rules, 2016 in India, which one of t

As per the Solid Waste Management Rules, 2016 in India, which one of the following statements is correct?

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Waste generator has to segregate waste into five categories.

The Rules are applicable to notified urban local bodies, notified towns and all industrial townships only.

The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.

It is mandatory on the part of waste generator that the waste generated in one district cannot be moved to another district.

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Answer is Wrong!

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Statement C is correct.

Statement A is incorrect. The Solid Waste Management Rules, 2016, mandate waste generators to segregate waste into three streams: wet waste (biodegradable), dry waste (including plastic, paper, metal, wood), and domestic hazardous waste.

Statement B is incorrect. The Rules apply to every urban local body, cantonment board, railway colony, every airport, every port and harbour, every special economic zone, every State and Central Government organisations, and every industrial township, and other entities generating solid waste. Their applicability is much wider than just notified urban local bodies and industrial townships.

Statement C is correct. Schedule I of the Solid Waste Management Rules, 2016, provides detailed and elaborate criteria for the identification of sites for solid waste processing and disposal facilities (like landfills), covering aspects related to environment, land use, and social impact.

Statement D is incorrect. While the rules promote decentralization and managing waste within the urban local body, they do not impose a mandatory prohibition on the movement of waste from one district to another. Movement for regional processing facilities or specific types of waste is permitted subject to regulations and permissions.

The Solid Waste Management Rules, 2016 replaced the Municipal Solid Wastes (Management and Handling) Rules, 2000. Key aspects include source segregation, responsibility of waste generators, role of urban local bodies, waste pickers integration, promotion of composting and bio-methanation, and standards for processing and disposal facilities.

38. Consider the following statements: The Environment Protection Act, 198

Consider the following statements:
The Environment Protection Act, 1986 empowers the Government of India to

1. state the requirement of public participation in the process of environmental protection, and the procedure and manner in which it is sought
2. lay down the standards for emission or discharge of environmental pollutants from various sources

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Both statements 1 and 2 are correct.

Statement 1 is correct. The Environment Protection Act, 1986 (EPA) is an umbrella Act that gives broad powers to the Central Government to take all such measures as it deems necessary for the purpose of protecting and improving the quality of the environment. While the Act itself might not detail the exact procedure for public participation, it empowers the Central Government to make rules (Section 25) to carry out the purposes of the Act, which can and do include requirements for public consultation in processes like Environmental Impact Assessment (EIA) notifications issued under the Act. Thus, the Act empowers the government to state the requirement and lay down the procedure for public participation through rules and notifications framed under it.

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Statement 2 is correct. Section 3(2)(iv) of the Environment Protection Act, 1986, explicitly empowers the Central Government to “lay down standards for the quality of environment in its various aspects, lay down standards for emission or discharge of environmental pollutants from various sources whatsoever”. This is a direct and core power granted by the Act.

The EPA, 1986 was enacted following the Bhopal Gas Tragedy and is a crucial piece of legislation for environmental governance in India. It delegates significant authority to the Central Government to coordinate activities of state governments, plan and execute nationwide programmes, and set standards for environmental quality and pollution control.

39. Consider the following statements: 1. According to the Indian Patent

Consider the following statements:

1. According to the Indian Patents Act, a biological process to create a seed can be patented in India.
2. In India, there is no Intellectual Property Appellate Board.
3. Plant varieties are not eligible to be patented in India.

Which of the statements given above is/are correct?

1 and 3 only

2 and 3 only

3 only

1, 2 and 3

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UPSC IAS – 2019

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Statements 2 and 3 are correct.

Statement 1 is incorrect. According to Section 3(j) of the Indian Patents Act, 1970, “plants and animals in whole or any part thereof other than micro-organisms but including seeds, varieties and species and essentially biological processes for production or propagation of plants and animals” are not patentable inventions. A biological process to create a seed for propagation falls under this exclusion.

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Statement 2 is correct. The Intellectual Property Appellate Board (IPAB) was abolished by the Tribunals Reforms (Rationalisation and Conditions of Service) Act, 2021. Its functions have been transferred to the High Courts.

Statement 3 is correct. As mentioned in the explanation for Statement 1, plant varieties are explicitly excluded from patentability under the Indian Patents Act, 1970 (Section 3(j)). Protection for plant varieties is provided under a separate legislation, the Protection of Plant Varieties and Farmers’ Rights Act, 2001 (PPV&FR Act).

India’s patent law aligns with international agreements like the TRIPS Agreement, which allows member countries to exclude plants, animals, and essentially biological processes from patentability. The PPV&FR Act, 2001, offers a sui generis system for protecting plant breeder’s rights, farmer’s rights, and encouraging the development of new plant varieties.

40. Which Article of the Constitution of India safeguards one’s right to m

Which Article of the Constitution of India safeguards one’s right to marry the person of one’s choice?

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Article 19

Article 21

Article 25

Article 29

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The correct answer is Article 21.

Article 21 of the Constitution of India guarantees the right to life and personal liberty. The Supreme Court of India has, through various judgments, interpreted the right to life and personal liberty expansively to include a wide range of rights necessary for a person’s dignified existence, including the right to privacy and the right to choose one’s partner or spouse. Landmark cases like *Shafin Jahan vs. Asokan K.M. and Others* (2018) have unequivocally upheld the right of an adult to marry a person of their choice as an integral part of Article 21.

Article 19 guarantees various freedoms, such as freedom of speech and expression, assembly, association, movement, residence, and profession. While related to personal autonomy, it doesn’t specifically safeguard the right to marry.
Article 25 guarantees the freedom of conscience and the right to freely profess, practice, and propagate religion. It is relevant in cases where religious conversion is involved in a marriage choice, but the fundamental right to choose the partner itself is rooted in personal liberty under Article 21.
Article 29 deals with the protection of interests of minorities. It is not related to the right to marry one’s choice.

The right to marry is considered a crucial aspect of personal autonomy and is protected under the broader umbrella of the right to life and personal liberty guaranteed by Article 21. This right is subject to reasonable restrictions imposed by law and public order.