Poverty, Planning, Finance and Economic/Social Development (Part-I)

Total Questions: 50

11. Economic Survey in India is published officially, every year by the: [1998]

Correct Answer: (c) Ministry of Finance, Govt. of India
Solution:

• The Economic Survey is an annual report presented by the government before the Union Budget to assess India's economic condition.
• Prepared by the Economic Division of the Ministry of Finance under the Chief Economic Adviser’s supervision, it is tabled in both houses of Parliament by the Union Finance Minister.
• The survey assesses economic performance, highlights sectoral developments, outlines challenges and provides an economic outlook for the coming year.
• The Economic Survey was first presented in 1950-51 as part of the budget and became a separate document from the Union Budget in 1964, tabled a day before the budget.

12. Which one of the following regions of the world supplies the maximum of our imported commodities (in terms of rupee value)? [1998]

Correct Answer: (c) Asia and Oceania
Solution:

India imported most of their commodities from Asia and Oceania.
• The top imports of India are Crude Petroleum ($170B), Coal Briquettes ($58.7B), Gold ($35.8B), Petroleum Gas ($32B), and Diamonds ($26.1B).
• It imports mostly from China ($110B), UAE ($51B) and the US ($48.5B), Saudi Arabia ($46.2B), and Russia ($40.4B).
• In 2022, India was the world’s biggest importer of Coal Briquettes ($58.7B), Diamonds ($26.1B), Palm Oil ($11.1B), Mixed Mineral or Chemical Fertilizers ($7.88B), and Nitrogenous Fertilizers ($7.37B).

13. The planning process is the industries sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is not true in this regard? [1999]

Correct Answer: (d) The nation's priorities have shifted away from industrial development to rural development
Solution:Statement (a), (b) and (c) are true which explain the declining important position of industries sector after nineties in the planning process.
Economic Planning in India Evolution
• India adopted a system of five yearly planning to address its various socio-economic problems in 1951.
• Some of the great architects of Indian planning include Jawaharlal Nehru, P.C Mahalanobis, V.R Gadgil, V.K.R.V Rao.
• After becoming the first prime minister of independent India, Nehru established the Planning Commission in 1950.
• The major function of the Planning Commission was to formulate plans keeping in view the resources of the country and suggesting the best methods to utilize them effectively and in a balanced manner.
• Planning commission prepared the first five-year plan (FYP) for the period 1951-1956. By 2014, India has already experienced more than sixty years of planning and 12th 5-year plan ended in 2017 after the formation of NITI Aayog.

14. Which one of the following is the objective of National Renewal Fund? [1999]

Correct Answer: (a) To safeguard the interests of workers who may be affected by technological upgradation of industry or closure of sick units
Solution:

The main objective of the National Renewal Fund was to provide a social safety net to the workers who are likely to be affected by technological up-gradation and modernisation in the Indian industry. The objectives of were to be achieved as follows:
• By providing assistance to firms to cover the costs of retraining and redeployment of employees arising as a result of modernisation and technological upgradation of existing capacities and from Industrial restructuring.
• By providing funds for compensation to employees affected by restructuring or closure of industrial units, both in the public and private sectors.
• By providing funds for employment generation schemes in the organised and unorganised sectors in order to provide a social safety net for labour.
The government included two schemes under this fund viz. Voluntary Retirement Scheme (VRS) for central public sector undertakings; and re-training scheme for rationalised workers in organised sector.

15. The Employment Assurance Scheme envisages financial assistance to rural areas for guaranteeing employment to at least: [1999]

Correct Answer: (c) one man and one woman in a rural family living below the poverty line.
Solution:Employment Assurance scheme was launched on 2nd October, 1993. It is open to all adult rural poor who are in need of wage employment.
A maximum of two adults per family would be provided wage employment, when there is demand during lean agricultural season, subject to availability of funds.
• Employment Assurance Scheme was launched on 2nd October 1993 for implementation in 1778 identified backward blocks of different States.
• The block selected were in the drought-prone areas, desert areas, tribal areas and hilly areas.
• Later, the scheme was extended to the remaining blocks of the country in a phased manner.
• At present, the scheme is being implemented in all the rural blocks of the country.
• The programme has been restructured from 1.4.99.

16. A rise in 'SENSEX' means: [2000]

Correct Answer: (c) an overall rise in prices of shares of group up companies registered with Bombay Stock Exchange
Solution:Increase in Sensex reflects the overall mood of the economy. A rise in it means that investors and FIIs are positive about the growth of Indian economy and expect that it will be sustained in future.
Sensex
The BSE’s benchmark index in India is the Sensex. In the beginning, Sensex was only a basket of thirty stocks that represented the largest financially sold products in India. These thirty equities were listed on the BSE on January 1, 1986.
According to BSE, which was originally known as Bombay Stock Exchange, it is India’s oldest index and includes time-series data dating back to 1979.
The Sensex index serves as a barometer for the Indian stock markets for investors.
In layman’s terms, an increase in the Sensex value indicates a general increase in the price of shares. On the other hand, if the Sensex falls, it indicates that stock prices are generally falling.

17. Assertion (A): The rate of growth of India's exports has shown an appreciable increase after 1991. [2000]

Reason (R): The Govt. of India has resorted to devaluation

Correct Answer: (a) Both A & R are true & R is the correct explanation of A
Solution:Devaluation of currency is conscious decision taken by Central bank of country to lower the external value of domestic currency. As a result of this Indian goods become cheaper for Foreigners. Import decrease and exports increases.
Currency devaluation occurs when a nation's central bank deliberately lowers the value of its currency. Devaluation of currency means when a currency is devalued, buying a unit of foreign currencies or goods priced in foreign currencies takes more. A country's currency value falls over other currencies when it is devalued. Devaluation makes a currency less attractive to foreign investors while making a nation's exports cheaper and more competitive internationally. A devaluation boosts a country's struggling economy by increasing exports and reducing imports.
China has faced criticisms for devaluing its currency to boost its GDP and establish a strong position in global trade. In 2016, there were reports of China devaluing its currency with plans to revalue it after the U.S. presidential election. In response, President Donald Trump imposed tariffs on Chinese goods. The Brazilian real has experienced significant devaluation since 2011, leading to various issues like declining oil and commodity prices and corruption.

18. Match List I with List II and select the correct answer using the codes given below the lists: [2000]

List-I List-II 
A. UN Development Programme1. UN India Human Development Report
B. National Council2. India Development of Applied Economic Report Research
C. Indira Gandhi3. World Development Institute of Research Development Research
D. World Bank4. Human Development Report

Codes:

ABCD
(a)1234
(b)4213
(c)2341
(d)2143
Correct Answer: (a)
Solution:UN Development programme brings out UN India Human Development Report. National council of Applied Economic Research brings out India Development Report. Human Development Report is bring out by world Bank. World Development Research is carried out by Indira Gandhi Institute of Development Research.

19. "...instil into the vast millions of workers, men and women, who actually do the job, a sense of partnership and of cooperative performance..." The above passage relates to: [2000]

Correct Answer: (b) Community Development
Solution:Community Development is a process where community members come together to take collective action and generate solutions to common problems. It seeks to empower individuals and groups of people with the skills they need to effect change within their communities.
Community development relies heavily on participation, empowerment, capacity building, and social change. It fundamentally believes in the principle that communities hold within themselves the ability to identify and solve their issues. Thus, community development is not about giving aid but rather about enabling the community to improve its own conditions.
The concept of the community development programme in India was introduced post-independence as a multi-purpose project to ensure the social and economic transformation of rural areas. The programme was based on the idea that progress could be achieved through the development of human resources and the use of local resources.
The Community Development Programme started in the year 1952 in India and is considered one of the largest rural reconstruction programmes globally. The programme aimed to transform the socio-economic landscape of rural India and was a significant attempt towards decentralized planning and democratic local self-governance.

20. Economic liberalisation in India started with: [2000]

Correct Answer: (a) substantial changes in industrial licensing policy.
Solution:

Economic liberalization in India started with industrial de-licensing.
• Liberalisation is the removal of restrictions from the private sector activities typically pertaining to the economic system.
• Liberalization includes the removal of controls and regulations from a country’s economy to ensure that businesses and corporations can maximize their contribution to economic development.
• In India, it began with the introduction of a new economic policy to tide over conditions of the balance of payment crisis.
• Liberalization was undertaken to attain objectives like industrialization, expansion in the role of private and foreign investment, and the introduction of a free market system.