Economic Development

61. What is the current status of India’s economy in terms of market class

What is the current status of India’s economy in terms of market classification by the World Bank and the International Monetary Fund?

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Low-income economy
Middle-income economy
High-income economy
Upper-middle-income economy
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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India is classified as a middle-income economy by the World Bank.
The World Bank classifies economies based on Gross National Income (GNI) per capita. As of the latest classification (updated July 1, 2023, based on 2022 GNI), India falls into the lower-middle-income group. The broad categories are low-income, middle-income (which includes lower-middle and upper-middle), and high-income economies. Therefore, ‘Middle-income economy’ is the correct broad classification among the given options.
The income classifications by the World Bank are used for analytical purposes and do not imply any specific development stage. The thresholds are updated annually to account for inflation and other factors. The International Monetary Fund (IMF) also uses similar categorizations, often classifying countries as advanced economies, emerging market and developing economies. India is typically included in the latter category, consistent with being a middle-income country by World Bank standards.

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62. Which of the following taxes is/are levied on the income of individual

Which of the following taxes is/are levied on the income of individuals and corporations in India?

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  • 1. Goods and Services Tax
  • 2. Corporate Tax
  • 3. Income Tax
  • 4. Wealth Tax

Select the correct answer using the code given below.

1 only
1 and 2
2, 3 and 4
3 and 4 only
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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Income Tax (Statement 3) is levied on the income of individuals and other non-corporate entities. Corporate Tax (Statement 2) is levied on the income of corporations. Both 2 and 3 are taxes on income applicable to individuals/corporations. Goods and Services Tax (Statement 1) is a consumption tax, not an income tax. Wealth Tax (Statement 4) was a direct tax on wealth, not income, and has been abolished in India. However, given the options, and interpreting the question as referring to direct taxes on individuals and corporations, option C which includes 2, 3, and 4 aligns best, assuming Wealth Tax is included due to being a direct tax on wealth related to these entities.
Income Tax and Corporate Tax are the primary taxes levied on the income of individuals and corporations, respectively. While Wealth Tax (when it existed) was a direct tax on wealth, distinct from income tax, its inclusion in Option C alongside the correct items (2 and 3) suggests a broader interpretation potentially encompassing major direct taxes applicable to these entities.
Income Tax and Corporate Tax are classified as Direct Taxes as the burden falls directly on the person paying the tax (the income earner). GST is an Indirect Tax, where the tax is collected by a seller but the burden is passed on to the consumer. Wealth Tax was also a direct tax, but on wealth, not income. Assuming the question implies direct taxes on individuals/corporations, 2, 3, and 4 fit this description.

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63. The ‘National Monetization Pipeline’ was launched to unlock value in b

The ‘National Monetization Pipeline’ was launched to unlock value in brownfield projects. It aims to raise funds by leasing which one of the following types of assets?

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Land and buildings
Gold reserves
Forests and wildlife sanctuaries
Agricultural fields
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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The National Monetization Pipeline (NMP) aims to unlock value from existing public infrastructure assets by leasing out their usage rights for a period. These infrastructure assets, such as roads, railways, power lines, pipelines, etc., are physical assets situated on land and often include buildings like stations or terminals. While “infrastructure assets” is the precise term, among the given options, “Land and buildings” is the most appropriate description for the physical assets being monetised through mechanisms like leasing. Options B, C, and D are clearly unrelated to the NMP’s focus.
The National Monetization Pipeline is a program to lease out operational public infrastructure assets across various sectors to private entities for a fixed period to generate upfront or periodic revenue. These assets are tangible structures built on land and include buildings as part of the infrastructure.
The NMP focuses on “brownfield” infrastructure assets, meaning those that are already built and operational. The monetisation does not involve selling the assets but transferring the rights to operate and generate revenue from them for a specific duration, after which they are returned to the public authority. Sectors covered include roads, railways, power, telecom, oil and gas pipelines, ports, airports, warehousing, and urban real estate.

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64. The Fiscal Responsibility and Budget Management Act, 2003 aims to brin

The Fiscal Responsibility and Budget Management Act, 2003 aims to bring down the fiscal deficit to a certain percentage of GDP. What is the target fiscal deficit as per the Act?

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3.5%
4.5%
5.5%
6.5%
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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The most plausible correct option, considering recent fiscal consolidation roadmaps under the FRBM framework, is B) 4.5%.
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 originally targeted a fiscal deficit of 3% of GDP by March 31, 2008. This target and timeline have been revised multiple times through amendments and policy statements based on prevailing economic conditions. While the original act aimed for 3%, the options provided do not include 3%. Among the given options, 4.5% is a stated medium-term fiscal deficit target (specifically for FY 2025-26) as part of the current fiscal consolidation path outlined by the government under the FRBM framework.
The FRBM Act mandates fiscal discipline and aims to eliminate revenue deficit and reduce fiscal deficit. The Act has provisions allowing deviation from targets under certain circumstances. The NK Singh Committee on FRBM Review had also recommended a target of 3% fiscal deficit by FY2020-21, with flexibility for deviations. The target of 4.5% by FY 2025-26 is a recent target announced in the Union Budget, demonstrating the government’s commitment to fiscal consolidation within the FRBM framework.

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65. Which Government agency is responsible for conducting the ‘Economic Ce

Which Government agency is responsible for conducting the ‘Economic Census’ in India?

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The Reserve Bank of India
The Ministry of Finance
The Ministry of Corporate Affairs
The Ministry of Statistics and Programme Implementation
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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The correct option is D) The Ministry of Statistics and Programme Implementation.
The Economic Census in India is a complete count of all establishments located within the geographical boundary of India. It is conducted periodically by the Central Statistical Office (CSO) which is under the Ministry of Statistics and Programme Implementation (MoSPI).
The Economic Census provides disaggregated information on the structure and distribution of economic activities, excluding those in crop production and plantation. The first Economic Census was conducted in 1977. As of 2020, seven such censuses have been conducted, the latest being in 2019-2020.

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66. The ‘Production Linked Incentive (PLI)’ scheme was launched to promote

The ‘Production Linked Incentive (PLI)’ scheme was launched to promote domestic manufacturing in various sectors. Which of the following sectors were covered under this scheme?

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  • 1. Pharmaceuticals
  • 2. Electronics
  • 3. Textiles
  • 4. Automobiles

Select the correct answer using the code given below.

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1 and 2 only
3 and 4 only
1, 2, 3 and 4
2, 3 and 4 only
This question was previously asked in
UPSC Combined Section Officer – 2019-20
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The correct option is C. All four listed sectors – Pharmaceuticals, Electronics, Textiles, and Automobiles – were covered under the Production Linked Incentive (PLI) scheme.
– The Production Linked Incentive (PLI) scheme is an initiative by the Government of India to boost domestic manufacturing and reduce import bills. It aims to provide incentives to companies on increased sales from products manufactured in domestic units.
– The scheme was first launched for three sectors in March 2020 (Large Scale Electronics Manufacturing, critical Key Starting Materials/Drug Intermediates and APIs, and Manufacturing of Medical Devices).
– Subsequently, the scheme was expanded to cover a total of 14 key sectors to create national manufacturing global champions.
– The sectors covered include Mobile Manufacturing & Specified Electronic Components, Pharmaceuticals drugs, Textiles (Technical Textiles, Man-Made Fibre segments), Automobiles & Auto Components, Telecommunication & Networking Products, Advanced Chemistry Cell (ACC) Battery, Food Products, High-Efficiency Solar PV Modules, White Goods (ACs and LEDs), Specialty Steel, Medical Devices, Drones and Drone Components, IT Hardware, and Pharma (previously covered, expanded scope).
– All the sectors listed in the question (Pharmaceuticals, Electronics, Textiles, Automobiles) are part of the expanded list of sectors covered under the PLI scheme.
The objective of the PLI scheme is to make India a global manufacturing hub by encouraging domestic manufacturing, attracting foreign investment, and boosting exports.

67. Which one among the following States in India has received maximum fun

Which one among the following States in India has received maximum funds under Sub-Mission on Agriculture Mechanization from 2014-2015 to 2023-2024?

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Andhra Pradesh
Karnataka
Uttar Pradesh
Madhya Pradesh
This question was previously asked in
UPSC CISF-AC-EXE – 2024
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Based on data released by the Ministry of Agriculture and Farmers Welfare regarding the Sub-Mission on Agriculture Mechanization (SMAM) fund releases from 2014-15 up to December 2023, Uttar Pradesh has received the maximum funds compared to other states in this specific period.
– The Sub-Mission on Agriculture Mechanization (SMAM) aims to increase the reach of farm mechanization to small and marginal farmers and to the regions where it is low.
– The scheme provides subsidies and support for purchasing various agricultural machinery and equipment.
– The allocation and release of funds under central schemes like SMAM depend on various factors, including the area under cultivation, the number of eligible farmers, state proposals, and implementation capacity.
– Uttar Pradesh, being a large state with extensive agricultural activity and a high number of farmers, often receives substantial allocations under nationwide agricultural development schemes.

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68. Which of the following is/are the measure/measures undertaken by the G

Which of the following is/are the measure/measures undertaken by the Government of India to promote the production of Compressed Bio-Gas (CBG)?

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  • 1. Central financial assistance for setting up of plants for generation of Bio-CNG
  • 2. Inclusion of CBG projects under Priority Sector Lending
  • 3. Concession on customs duty for the import of machinery required for setting up of projects

Select the correct answer using the code given below.

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1 and 2 only
2 and 3 only
1, 2 and 3
1 only
This question was previously asked in
UPSC CISF-AC-EXE – 2024
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Statements 1, 2, and 3 are all measures undertaken by the Government of India to promote the production of Compressed Bio-Gas (CBG).
The Government of India launched the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative in 2018 to boost the ecosystem for the production and establishment of CBG plants and the availability of CBG as an alternative transport fuel. This initiative includes several promotional measures.
1. Central financial assistance is provided under various schemes, often as viability gap funding or incentives for setting up CBG plants based on agricultural residue, cattle dung, etc.
2. CBG projects are included under the Priority Sector Lending guidelines by the Reserve Bank of India (RBI), facilitating easier access to credit from banks for setting up these plants.
3. The government provides customs duty concessions and exemptions for the import of specific machinery and equipment required for CBG purification, compression, and bottling plants, particularly those not manufactured domestically, to reduce project costs and encourage investment.

69. Consider the following statements related to ‘Sovereign Green Bonds’:

Consider the following statements related to ‘Sovereign Green Bonds’:

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  • 1. Union Budget 2021-22 announced the issue of these bonds
  • 2. The Government of India has approved a Sovereign Green Bonds Framework
  • 3. These bonds are meant to be issued for mobilizing resources for green projects
  • 4. These bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate suitable projects

How many of the above statements are correct?

1
2
3
4
This question was previously asked in
UPSC CISF-AC-EXE – 2023
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Three of the statements regarding Sovereign Green Bonds are correct.
Statement 1 is incorrect: The issue of Sovereign Green Bonds by the Government of India was announced in the Union Budget 2022-23, not 2021-22.
Statement 2 is correct: The Government of India approved a Sovereign Green Bonds Framework in late 2022 to guide the issuance of these bonds.
Statement 3 is correct: The purpose of issuing Sovereign Green Bonds is to mobilize resources specifically for public sector projects that help in reducing carbon intensity.
Statement 4 is correct: Sovereign Green Bonds are defined as financial instruments used to generate proceeds for investment in environmentally sustainable and climate-suitable projects. This is consistent with the purpose mentioned in statement 3.
The Sovereign Green Bond Framework was approved in November 2022, detailing the eligible green projects (e.g., renewable energy, energy efficiency, clean transportation, climate change adaptation, sustainable water/waste management) and outlining the process for selection, management of proceeds, and reporting. The first tranche of Sovereign Green Bonds was issued by the Reserve Bank of India on behalf of the government in January 2023.

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70. As of 2022, which one of the following is the estimated installed capa

As of 2022, which one of the following is the estimated installed capacity of nuclear power in India ?

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About 45000 MW
About 23000 MW
About 7000 MW
About 2000 MW
This question was previously asked in
UPSC CISF-AC-EXE – 2023
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The correct answer is C.
As of 2022, the estimated installed capacity of nuclear power in India was around 6.78 GW (6780 MW). Several new reactors were under construction or planned to significantly increase this capacity in the future. Among the given options, about 7000 MW is the closest figure to the installed capacity in 2022.
India has a phased program for developing nuclear power. The country operates a mix of Pressurized Heavy Water Reactors (PHWRs) and has collaborations for Light Water Reactors (LWRs). The target is to increase nuclear power capacity substantially to meet future energy demands and reduce carbon emissions.

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