UPSC SO-Steno Archives

21. The feasibility report of the Japan International Cooperation Agency (

The feasibility report of the Japan International Cooperation Agency (JICA) was approved by the Government of India in

November, 2014

December, 2014

December, 2015

November, 2015

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The question likely refers to the feasibility report for the Mumbai-Ahmedabad High-Speed Rail project (often called the Bullet Train project), for which the Japan International Cooperation Agency (JICA) conducted a feasibility study. The feasibility report was submitted by JICA in July 2015, and the Union Cabinet of India approved the project based on this report in December 2015.

The JICA feasibility report for the Mumbai-Ahmedabad High-Speed Rail project was approved by the Government of India in December 2015.

This project is a flagship infrastructure initiative involving significant technical and financial assistance from Japan. The approval of the feasibility report was a critical step towards the implementation of India’s first high-speed rail line.

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22. Which one of the following would be achieved through measures such as

Which one of the following would be achieved through measures such as increased supply of cheaper domestic coal, coal linkage rationalisation, liberal coal swaps from inefficient to efficient plants, coal price rationalisation based on GCV (Gross Calorific Value), supply of washed and crushed coal, and faster completion of transmission lines ?

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Operational efficiency

Reduction in cost of power

Reduction in interest cost

Enforcing financial discipline

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The listed measures are primarily aimed at optimizing the cost of fuel (coal) and improving the efficiency of its usage and transmission in the power sector. Using cheaper domestic coal, rationalizing linkages, allowing swaps, pricing based on Gross Calorific Value (GCV), and using washed/crushed coal all directly reduce the cost of fuel per unit of energy or improve plant efficiency to get more energy from the fuel, thereby lowering the cost of power generation. Faster completion of transmission lines reduces transmission losses and grid costs. All these measures directly contribute to a reduction in the overall cost of generating and supplying power. While operational efficiency (A) is improved by some measures (like washed coal), the overarching goal and consequence of these actions in the context of the power sector are primarily related to reducing the cost of electricity. Options C and D are related to financial aspects not directly addressed by these technical/operational measures.

Measures targeting cheaper, better quality, and more efficiently supplied coal, along with improved transmission, directly reduce the input costs and losses in power generation and delivery, leading to a reduction in the cost of power.

The cost of coal is a major component of thermal power generation costs in India. Measures to optimize coal sourcing, quality, and usage are crucial for making power more affordable and improving the financial health of power generation and distribution companies. Similarly, reducing transmission and distribution losses through better infrastructure is vital for delivering power efficiently and reducing costs for the end consumer.

23. Some portions of the disinvestment proceeds should be used : 1. in t

Some portions of the disinvestment proceeds should be used :

1. in the divested PSU itself for upgrading purposes
2. in the turn-around of the other PSUs
3. in the public debt repayment/ pre-payment
4. in the social infrastructure (education, healthcare, etc.)

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1, 2 and 3 only

2, 3 and 4 only

1 and 4 only

1, 2, 3 and 4

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Disinvestment proceeds are typically used by the government for strategic purposes. Option 1, using proceeds to upgrade the *divested* PSU itself, is generally not the purpose; once a PSU is sold off, its investment needs are the responsibility of the new owners or the residual government holding. Options 2, 3, and 4 represent common and stated objectives for utilizing disinvestment proceeds in India. Funds are often used to turn around or restructure other loss-making or potentially viable PSUs, to reduce the national debt burden (by repayment/pre-payment), and to finance social sector programs and infrastructure development (education, healthcare, etc.) which otherwise might require increased taxation or borrowing.

Common uses of disinvestment proceeds include reducing government debt, funding social sector programs, and investing in other public sector enterprises.

The specific allocation of disinvestment proceeds is decided by the government based on its fiscal priorities. In recent years, the emphasis has often been on using the proceeds for infrastructure development and social sector schemes, besides covering the fiscal deficit or reducing debt. The National Investment Fund (NIF) was established to park disinvestment proceeds, initially intended for specific uses like investing in profitable and revivable PSUs or meeting social sector needs.

24. Which one of the following is an important driver of economic growth w

Which one of the following is an important driver of economic growth which helps in sustaining high growth rate, increasing productivity, a major source of non-debt financial resources, and employment generation ?

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Foreign Direct Investment

Ease of doing business

Make in India

Start-up India

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Foreign Direct Investment (FDI) is widely recognized as a crucial driver of economic growth. It brings significant capital flows which are typically non-debt creating, unlike external borrowings. FDI often brings advanced technology, management expertise, and access to global markets, which can enhance productivity. It also leads to the establishment of new businesses or expansion of existing ones, creating substantial employment opportunities. Ease of doing business is an enabler, Make in India is a manufacturing promotion initiative, and Start-up India supports entrepreneurship, but FDI is the direct source of non-debt finance and a comprehensive driver across all mentioned aspects.

FDI is a major source of non-debt capital, technological transfer, and management know-how, directly contributing to increased productivity, employment generation, and sustained economic growth.

FDI inflow is influenced by factors like market size, economic stability, policy environment (ease of doing business), availability of skilled labor, and infrastructure. Governments often actively seek to attract FDI through policy reforms, incentives, and promotional activities like Make in India, aiming to leverage its benefits for overall economic development.

25. The first Industrial Policy Statement of India was announced on

The first Industrial Policy Statement of India was announced on

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8th March, 1948

8th April, 1948

6th March, 1949

6th April, 1949

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India’s first Industrial Policy Resolution was announced on April 6, 1948. Among the given options, April 8, 1948, is the closest date. It is highly probable that the option contains a minor typographical error, and it intends to refer to the correct date.

The first Industrial Policy Resolution in independent India was announced in 1948, laying down the broad framework for industrial development in the country.

The 1948 Industrial Policy Resolution broadly classified industries into four categories: those under exclusive state monopoly, those where the state would progressively establish new undertakings, those under state regulation, and those open to private enterprise. It also emphasized the role of cottage and small-scale industries. This policy set the stage for India’s mixed economy model of development. Subsequent Industrial Policy Resolutions were announced in 1956, 1977, 1980, and the New Industrial Policy in 1991.

26. Supply chain activities cover everything, such as 1. Product develop

Supply chain activities cover everything, such as

1. Product development
2. Sourcing
3. Production
4. Logistics

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1, 2 and 3 only

2, 3 and 4 only

1 and 4 only

1, 2, 3 and 4

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Modern supply chain management takes a comprehensive view that includes activities from the initial conception or design of a product to its final delivery and even post-sales service. While traditionally, supply chain focused primarily on sourcing, production, and logistics, the integration of product development (design and engineering) with supply chain considerations (like manufacturability, sourcing options, cost implications) is crucial for optimizing the entire process and ensuring competitive advantage. Therefore, a complete understanding of supply chain activities encompasses product development, sourcing of raw materials/components, production (manufacturing/assembly), and logistics (transportation, warehousing, distribution).

A comprehensive supply chain encompasses the entire flow from concept to consumer, including design, sourcing, production, and logistics.

Supply chain management involves coordinating and integrating these flows both within and among companies. Effective supply chain management aims to improve efficiency, reduce costs, enhance quality, and deliver value to customers. Other activities often considered part of or closely integrated with the supply chain include demand planning, inventory management, quality control, and customer service.

27. There have been certain anomalies in India’s food management under the

There have been certain anomalies in India’s food management under the PDS which need immediate attention :

1. The percentage distribution of the economic cost of wheat and rice has been rising fast. The pooled cost of food grains accounts for two-thirds of the economic cost of wheat and rice. This has made the economic cost of food grains to the Food Corporation of India increase over the years.
2. Increasing costs of labour, fertilizers, pesticides and other inputs have made production of crops costlier over the time. This forced the Government to keep on increasing the MSPs of the crops, too.

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1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Statement 1 is confusingly phrased and likely incorrect in its assertion about the “percentage distribution” and the “pooled cost accounting for two-thirds of the economic cost” (pooled cost *is* the economic cost for FCI, covering acquisition and distribution). However, the general point it attempts to make about the economic cost of food grains for FCI rising is true and a major anomaly. But the reasoning presented in statement 1 is flawed.
Statement 2 is correct. The increasing cost of agricultural inputs like labour, fertilizers, pesticides, seeds, and machinery directly raises the cost of cultivation for farmers. To ensure farming remains remunerative and to incentivize production, the government is compelled to periodically increase the MSPs for various crops. This increase in MSPs significantly contributes to the higher procurement cost for the Food Corporation of India (FCI), which is a major component of the economic cost of food grains under PDS.
Given the clear validity of statement 2 and the questionable phrasing and accuracy of statement 1’s causal link, only statement 2 represents a correctly stated anomaly/challenge and its reason.

Rising input costs in agriculture lead to increased MSPs, which in turn increases the economic cost of procurement and management of food grains for the government under the PDS.

The economic cost of food grains for FCI comprises the cost of procurement (including MSP, bonuses, procurement incidentals) and the cost of distribution (including freight, handling, storage, administrative overheads). The rising economic cost necessitates higher food subsidies, putting a strain on the government exchequer. Other anomalies in PDS include leakages, targeting issues, and storage losses.

28. The MSPs are fixed at incentive level, to fulfil the following purpose

The MSPs are fixed at incentive level, to fulfil the following purposes :

1. to induce less investment by farmers in the farm sector.
2. to motivate farmers to adopt improved crop production technologies.
3. to enhance production and thereby farmers’ income.

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1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

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Statement 1 is incorrect. Minimum Support Prices (MSPs) are fixed at incentive levels specifically to *encourage* farmers to invest more in the farm sector by assuring them a minimum price for their produce, thereby reducing market risk. Statements 2 and 3 are correct. By ensuring a floor price, MSPs reduce the risk associated with adopting new technologies (like better seeds, fertilizers) that require higher initial investment. This motivates farmers to modernize agriculture, leading to increased production and potentially higher income, especially for farmers cultivating MSP-covered crops who can sell their produce at the guaranteed price.

MSPs aim to provide a price guarantee to farmers, reduce income volatility, encourage production of certain crops, and incentivize investment and technology adoption.

MSPs are announced by the Government of India for certain crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP). While intended to support farmers, the MSP system has also been criticized for creating market distortions, encouraging the production of specific crops (like rice and wheat) over others, impacting soil health, and contributing to procurement and storage challenges.

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29. Consider the following statements: The major traits of depression coul

Consider the following statements:
The major traits of depression could be as given below:

an extremely low aggregate demand in the economy causes activities to decelerate
the inflation being comparatively lower
the employment avenues start shrinking forcing unemployment rate to grow fast

Which of the above statements are correct ?

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1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

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Statements 1, 2, and 3 are all correct descriptions of major traits of an economic depression.

An economic depression is characterized by a severe and prolonged decline in economic activity. This involves: 1. A significant drop in aggregate demand, leading to reduced spending and production (deceleration of activities). 2. Low inflation or deflation (falling prices) due to the collapse in demand and economic stagnation. 3. A sharp increase in unemployment as businesses fail and production slows down, leading to widespread job losses.

A depression is a more severe form of a recession. Key indicators include substantial declines in GDP, high unemployment rates, and often deflation.

30. Out of the many reasons forwarded by the experts responsible for the f

Out of the many reasons forwarded by the experts responsible for the failure of the land reforms in India, the following could be considered the most important ones :

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Land in India is considered a symbol of social prestige, status and identity unlike the other economies which succeeded in their land reform programmes, where it is seen as just an economic asset for income-earning.
Political will which was required to affect land reforms and make it a successful programme.
Rampant corruption in public life, political hypocrisy and leadership failure in the Indian democratic system.

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1 and 2 only

2 and 3 only

1, 2 and 3

1 and 3 only

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All three statements accurately reflect significant reasons cited by experts for the limited success and failure of land reforms in India. Land ownership in India is deeply intertwined with social status, power, and identity, making resistance to redistribution strong among vested interests. The lack of consistent and strong political will across different states and over time hindered effective implementation and enforcement of land reform laws. Widespread corruption in the bureaucracy responsible for implementation, political hypocrisy where leaders championed reforms but did not earnestly pursue them, and general leadership failures also contributed to the poor execution and outcomes of the reforms.

The failure of land reforms in India is multifaceted, stemming from socio-cultural factors (land as status symbol), political factors (lack of will, hypocrisy), and administrative factors (corruption, implementation issues).

Land reforms in India included measures like abolition of intermediaries (Zamindari, Ryotwari, Mahalwari systems), tenancy reforms (security of tenure, rent regulation, ownership rights), and ceiling on land holdings. Despite initial legislative efforts, implementation challenges, legal loopholes, lack of proper land records, and socio-political resistance severely limited the impact of these reforms, particularly the redistribution of surplus land.