UPSC IAS Archives

31. Consider the following statements : 1. The quantity of imported edib

Consider the following statements :

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1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any customs duty on all the imported edible oils as a special case.

Which of the statements given above is/are correct ?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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The correct option is A because statement 1 is generally true regarding India’s edible oil market over the last five years (prior to the question being framed), while statement 2 is incorrect.

India is one of the world’s largest importers of edible oils, significantly relying on imports to meet domestic demand. The government levies customs duties on imported edible oils, although the rates may vary over time based on policy objectives like protecting domestic producers or controlling inflation.

Statement 1 is accurate. India’s domestic production of edible oils has consistently fallen short of consumption, leading to substantial imports of palm oil, soybean oil, and sunflower oil. The volume of imports has often exceeded domestic production. Statement 2 is incorrect; the Indian government imposes customs duties (basic customs duty, agriculture infrastructure and development cess, etc.) on imported edible oils, though rates are adjusted periodically. There is no blanket policy of zero customs duty on all imported edible oils.

32. Consider the following statements: 1. The Fiscal Responsibility and

Consider the following statements:

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1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023; comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct ?

1 only

2 and 3 only

1 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is correct. The Fiscal Responsibility and Budget Management (FRBM) Review Committee headed by N.K. Singh recommended a debt-to-GDP ratio of 60% for the general government (Centre + States) by 2023, with a break-up of 40% for the Central Government and 20% for the State Governments.
Statement 2 is incorrect. As per government data around the time this question would be relevant (e.g., pre-pandemic years), the Central Government’s liabilities were significantly higher than 21% of GDP and also higher than the State Governments’ liabilities. State Governments’ total outstanding liabilities were typically around 25-30% of GDP, while the Centre’s liabilities were closer to 50-55% of GDP. The statement provides figures that are roughly the opposite of the actual situation.
Statement 3 is correct. Article 293(3) of the Constitution of India states that a State may not, without the consent of the Government of India, raise any loan if there is still outstanding any part of a loan which has been made to the State by the Government of India or by its predecessor Government, or in respect of which a guarantee has been given by the Government of India. This makes the Centre’s consent mandatory for states indebted to the Centre before raising further loans.

– The N.K. Singh FRBM Review Committee recommended specific debt-to-GDP targets for the Centre and States.
– Central government liabilities are typically higher than State government liabilities as a percentage of GDP.
– States need Central government’s consent to raise loans if they have outstanding loans from the Centre.

The debt-to-GDP ratio is a key indicator of fiscal health. High debt levels can constrain government spending and increase vulnerability to economic shocks. The FRBM Act aims to ensure fiscal discipline.

33. With reference to India’s decision to levy an equalization tax of 6% o

With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct ?

1. It is introduced as a part of the Income Tax Act.
2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below :

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1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is incorrect. The equalization levy (often referred to as ‘Google Tax’) was initially introduced in India by the Finance Act, 2016, as a separate levy on specified services received by a resident in India or a non-resident having a permanent establishment in India, from a non-resident service provider without a permanent establishment in India. It was *not* initially introduced as a part of the Income Tax Act, 1961, but as a distinct levy. Later, it was expanded and included within the Finance Act framework, but the initial introduction was separate.
Statement 2 is incorrect. Double Taxation Avoidance Agreements (DTAAs) are typically designed to address taxes on income. The equalization levy, as introduced, was a levy on the gross consideration for specified services, distinct from income tax. Whether it falls within the scope of specific DTAAs is complex and depends on the definition of ‘taxes covered’ in each treaty. Generally, standalone levies like the equalization levy are not automatically covered by DTAAs, and therefore, claiming a tax credit in the home country under standard DTAA provisions is unlikely or not straightforward.

– The equalization levy was introduced by the Finance Act, 2016, as a separate levy, not initially part of the Income Tax Act.
– DTAAs primarily cover income taxes and may not apply to levies like the equalization levy, making tax credit claims under DTAA unlikely.
– The levy targeted business models of digital companies where traditional nexus rules for taxation were not effective.

The equalization levy was expanded in Finance Act, 2020, to cover e-commerce operators and transactions, levied at 2% on gross consideration for e-commerce supply or services by a non-resident e-commerce operator. This further complicated its interaction with DTAAs.

34. What is/are the consequence/consequences of a country becoming the mem

What is/are the consequence/consequences of a country becoming the member of the ‘Nuclear Suppliers Group’?

1. It will have access to the latest and most efficient nuclear technologies.
2. It automatically becomes a member of “The Treaty on the Non-Proliferation of Nuclear Weapons (NPT)”.

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

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is correct. Membership in the Nuclear Suppliers Group (NSG) facilitates trade in nuclear material, equipment, and technology for peaceful purposes among member states. Being an NSG member allows a country access to the latest and most efficient nuclear technologies from other member countries, provided they adhere to the NSG guidelines and safeguards.
Statement 2 is incorrect. NSG membership and the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) membership are separate. NSG guidelines require members to be parties to the NPT as non-nuclear-weapon states or to meet certain non-proliferation commitments. However, NSG membership does not automatically make a country an NPT member. India, for instance, is not a member of the NPT (as it possesses nuclear weapons and views the treaty as discriminatory) but received a specific waiver from the NSG in 2008 allowing it to engage in nuclear commerce. India is seeking full NSG membership but is not an NPT member.

– NSG membership allows access to global nuclear trade and technology for peaceful uses under safeguards.
– NSG membership and NPT membership are not the same.
– NSG members are generally required to adhere to non-proliferation commitments, often including being NPT members (though exceptions/waivers exist).

The NSG is a group of nuclear supplier countries that aims to prevent nuclear proliferation by controlling the export of materials, equipment, and technology that can be used to manufacture nuclear weapons.

35. Which one of the following best describes the term “Merchant Discount

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news ?

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The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.

The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.

The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.

The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Merchant Discount Rate (MDR) is the fee charged by a bank or a payment service provider to a merchant for processing debit or credit card transactions. It is typically calculated as a percentage of the transaction value. This fee is paid by the merchant to the bank for the service of facilitating card payments from customers.

– MDR is a charge paid by the merchant.
– It is paid to the bank or payment processor.
– It is for accepting payments through debit/credit cards.
– It is usually a percentage of the transaction value.

MDR includes fees paid to various parties involved in the transaction, such as the issuing bank, the acquiring bank, the payment networks (like Visa, Mastercard), and the payment gateway provider. The government has taken steps to lower MDR, especially for small value transactions and digital payments, to promote a cashless economy.

36. Consider the following statements: 1. The Parliament of India can pl

Consider the following statements:

1. The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India.
2. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it.

Which of the statements given above is/are correct ?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is correct. The Parliament of India can place a particular law in the Ninth Schedule by enacting a Constitutional Amendment Act under Article 368. Laws placed in the Ninth Schedule were initially intended to be immune from judicial review.
Statement 2 is incorrect. The absolute immunity from judicial review for laws in the Ninth Schedule was challenged and limited by the Supreme Court. In the *Kesavananda Bharati* case (1973), the Court propounded the ‘Basic Structure Doctrine’. Later, in the *I.R. Coelho case* (2007), the Supreme Court ruled that laws placed in the Ninth Schedule after April 24, 1973 (the date of the *Kesavananda Bharati* judgment) are open to judicial scrutiny and can be challenged on the ground that they violate the basic structure of the Constitution. Thus, it is not true that the validity of a law placed in the Ninth Schedule *cannot* be examined by *any* court.

– Parliament can add laws to the Ninth Schedule via constitutional amendment.
– Laws in the Ninth Schedule were initially considered immune from judicial review.
– The Supreme Court ruled that laws added to the Ninth Schedule after April 24, 1973, are subject to judicial review based on the Basic Structure Doctrine (*I.R. Coelho case*).

The Ninth Schedule was added by the 1st Constitutional Amendment Act, 1951, primarily to protect agrarian reform laws from being challenged in courts on the ground of violation of fundamental rights (specifically, the right to property).

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37. How is the National Green Tribunal (NGT) different from the Central Po

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)?

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The NGT has been established by an Act whereas the CPCB has been created by an executive order of the Government.
The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.

Which of the statements given above is/are correct ?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is incorrect. The National Green Tribunal (NGT) was established by the National Green Tribunal Act, 2010. The Central Pollution Control Board (CPCB) was constituted under the Water (Prevention and Control of Pollution) Act, 1974, and its powers and functions were further expanded under the Air (Prevention and Control of Pollution) Act, 1981. Both bodies are established by Acts of Parliament, not executive orders.
Statement 2 is correct. The NGT is a specialized judicial body established to handle environmental cases, thus providing environmental justice and helping to reduce the burden of environmental litigation in higher courts. The CPCB is a regulatory authority primarily tasked with promoting cleanliness of streams and wells, improving air quality, conducting environmental monitoring, and enforcing pollution control standards. Their functions are distinct.

– NGT is a statutory body established by the NGT Act, 2010.
– CPCB is a statutory body established under the Water Act, 1974 and Air Act, 1981.
– NGT has judicial functions related to environmental disputes.
– CPCB has regulatory and executive functions related to pollution control.

NGT has jurisdiction over all civil cases involving substantial questions relating to the environment and acts as a fast-track court for environmental matters. CPCB advises the central government on pollution prevention and control and coordinates activities of State Pollution Control Boards.

38. As per the NSSO 70th Round “Situation Assessment Survey of Agricultura

As per the NSSO 70th Round “Situation Assessment Survey of Agricultural Households”, consider the following statements:

Rajasthan has the highest percentage share of agricultural households among its rural households.
Out of the total agricultural households in the country, a little over 60 percent belong to OBCs.
In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities.

Which of the statements given above is/are correct ?

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2 and 3 only

2 only

1 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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According to the NSSO 70th Round “Situation Assessment Survey of Agricultural Households” (2013), Statement 1 is correct: Rajasthan had the highest percentage share of agricultural households among its rural households (78.4%).
Statement 2 is incorrect: Out of the total agricultural households in the country, OBCs constituted 44.8%, not over 60%.
Statement 3 is correct: In Kerala, for 61.2% of agricultural households, the major source of income was from ‘wage/salary earnings’ (which falls under non-agricultural activities), indicating that a little over 60% received maximum income from sources other than agricultural activities.

– NSSO 70th Round survey provides data on the socio-economic conditions of agricultural households.
– Rajasthan had the highest proportion of agricultural households in rural areas.
– OBCs are a significant but not majority (over 60%) group among agricultural households nationally.
– Kerala’s agricultural households show high dependence on non-agricultural income sources.

Agricultural household is defined in the survey as a household having at least one member self-employed in agriculture either in principal or subsidiary status and having a total value of produce of at least Rs 3000 during the last 365 days.

39. Which of the following leaf modifications occur(s) in the desert areas

Which of the following leaf modifications occur(s) in the desert areas to inhibit water loss ?

Hard and waxy leaves
Tiny leaves
Thorns instead of leaves

Select the correct answer using the code given below :

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2 and 3 only

2 only

3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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All three listed leaf modifications are adaptations found in plants in desert areas to minimize water loss through transpiration.
1. Hard and waxy leaves: A thick, waxy cuticle on the leaf surface reduces evaporation of water.
2. Tiny leaves: Reducing the surface area of leaves directly reduces the total surface area available for transpiration.
3. Thorns instead of leaves: Thorns are often modified leaves or branches. If they are modified leaves (e.g., in cacti), they drastically reduce the surface area for transpiration. Thorns also deter herbivores, protecting the plant.

– Desert plants (xerophytes) have adaptations to conserve water.
– Adaptations include reducing leaf surface area and preventing water loss through barriers.
– Waxy cuticle, reduced leaf size, and modifications like thorns are common water-conserving adaptations.

Other adaptations in desert plants include sunken stomata, fleshy stems for water storage, and extensive root systems.

40. Consider the following statements: In the first Lok Sabha, the singl

Consider the following statements:

In the first Lok Sabha, the single largest party in the opposition was the Swatantra Party.
In the Lok Sabha, a “Leader of the Opposition” was recognised for the first time in 1969.
In the Lok Sabha, if a party does not have a minimum of 75 members, its leader cannot be recognised as the Leader of the Opposition.

Which of the statements given above is/are correct ?

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1 and 3 only

2 only

2 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

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Statement 1 is incorrect. In the first Lok Sabha (1952-1957), the single largest party in the opposition was the Communist Party of India (CPI), not the Swatantra Party, which was formed later in 1959.
Statement 2 is correct. The post of ‘Leader of the Opposition’ was formally recognized in the Lok Sabha for the first time in 1969. It was given statutory recognition later by the Salary and Allowances of Leaders of Opposition in Parliament Act, 1977.
Statement 3 is incorrect. For a party’s leader to be recognized as the Leader of the Opposition in the Lok Sabha, the party must have a strength equal to at least 10% of the total strength of the House. This threshold is 55 members (10% of 545), not 75.
Therefore, only statement 2 is correct.

– Swatantra Party was not the largest opposition in the first Lok Sabha.
– Leader of the Opposition was officially recognized in 1969.
– The minimum strength required for a party to have a recognized Leader of the Opposition in Lok Sabha is 10% of the total strength of the House (55 members).

The absence of a recognized Leader of the Opposition can occur if no opposition party secures the required 10% seats. This happened after the Lok Sabha elections of 2014 and 2019.