UPSC 2003 › Indian Economy

21 questions · 2003 · answers as per the UPSC key

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Topics: Infrastructure & Industry (4)Agriculture & Rural Development (3)External Sector & Balance Of Payments (3)International Trade & WTO (3)Banking & Financial Sector (2)Human Development, Poverty & Employment Schemes (2)Financial Markets & Capital Markets (1)Fiscal Policy & Budget (1)National Income & Economic Growth (1)Taxation (1)
UPSC 2003 · Q14 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. India is the original home of the cotton plant.
  2. India is the first country in the world to develop hybrid cotton variety leading to increased production.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (c) Both 1 and 2
UPSC 2003 · Q23 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. Molasses is a by-product of sugar production process.
  2. Bagasse obtained in the sugar mills is used as a fuel in the boilers to generate steam for the sugar factories.
  3. Sugar can only be produced from sugarcane as the raw material.

Which of these statements are correct?

(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 3
Show answer
Answer: (a) 1 and 2
UPSC 2003 · Q32 · Indian Economy › Banking & Financial Sector · Save

In India, the first bank of limited liability managed by Indians and founded in 1881 was

(a) Hindustan Commercial Bank
(b) Oudh Commercial Bank
(c) Punjab National Bank
(d) Punjab and Sind Bank
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Answer: (b) Oudh Commercial Bank
UPSC 2003 · Q34 · Indian Economy › Fiscal Policy & Budget · Save

The government holding in BPCL is

(a) More than 70%
(b) Between 60% and 70%
(c) Between 50% and 60%
(d) Less than 50%
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Answer: (b) Between 60% and 70%
UPSC 2003 · Q36 · Indian Economy › Infrastructure & Industry · Save

During the year 2000-01,

which one of the following industries recorded highest growth rate in India?

(a) Cement
(b) Coal
(c) Electricity
(d) Steel
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Answer: (c) Electricity
UPSC 2003 · Q46 · Indian Economy › Financial Markets & Capital Markets · Save

Debenture holders of a company are its

(a) Shareholders
(b) Creditors
(c) Debtors
(d) Directors
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Answer: (b) Creditors
UPSC 2003 · Q58 · Indian Economy › External Sector & Balance Of Payments · Save

Which one of the following statements is correct with reference to FEMA in India?

(a) The Foreign Exchange Regulation Act (FERA), was replaced by Foreign Exchange Management Act (FEMA) in the year 2001
(b) FERA was given a sunset clause of one year till 31st May 2002 to enable Enforcement Directorate to complete the investigation of pending issues
(c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
(d) As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rules
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Answer: (c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
UPSC 2003 · Q59 · Indian Economy › International Trade & WTO · Save

Consider the following statements

  1. India’s import of crude and petroleum product during the year 2001-02 accounted for about 27% of India’s total imports.
  2. During the year 2001-02, India’s exports had increased by 10% as compared to the previous year

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (a) Only 1
UPSC 2003 · Q62 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

As per the Human Development Index given by UNDP,

which one of the following sequences of South Asian countries is correct, in the order of higher to lower development?

(a) India—Sri Lanka—Pakistan—Maldives
(b) Maldives—Sri Lanka—India—Pakistan
(c) Sri Lanka—Maldives—India—Pakistan
(d) Maldives—India—Pakistan—Sri Lanka
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Answer: (b) Maldives—Sri Lanka—India—Pakistan
UPSC 2003 · Q64 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. India ranks first in the world in fruit production.
  2. India ranks second in the world in the export of tobacco.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (a) Only 1
UPSC 2003 · Q65 · Indian Economy › Infrastructure & Industry · Save

Which one of the following statements is correct?

(a) Alliance Air is a wholly owned subsidiary of Indian Airlines
(b) The Airports Authority of India manages seven of the country's international airports
(c) The Airports Authority of India is the regulatory organisation for enforcing civil air regulations in India
(d) It is the function of Directorate General of Civil Aviation to plan and construct runways and terminal buildings and to provide air safety services
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Answer: (a) Alliance Air is a wholly owned subsidiary of Indian Airlines
UPSC 2003 · Q74 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

Which one among the following States has the highest female literacy rate as per the Census 2001?

(a) Chhattisgarh
(b) Madhya Pradesh
(c) Orissa
(d) Rajasthan
Show answer
Answer: (a) Chhattisgarh
UPSC 2003 · Q75 · Indian Economy › National Income & Economic Growth · Save

Which one among the following countries has the lowest GDP per capita?

(a) China
(b) India
(c) Indonesia
(d) Sri Lanka
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Answer: (b) India
UPSC 2003 · Q82 · Indian Economy › Infrastructure & Industry · Save

Consider the following statements:

  1. In the last five years, Indian software exports have increased at a compound annual growth rate of about 60%.
  2. The software and service industry in India registered an overall growth of about 28% in rupee terms during the year 2001-2002.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2
UPSC 2003 · Q83 · Indian Economy › Infrastructure & Industry · Save

Which one of the following statements is correct?

(a) India is the second largest producer of nitrogenous fertilisers in the world
(b) India is the ninth largest steel producing country in the world
(c) India is the second largest producer of silk in the world
(d) India ranks third in the world in coal production
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Answer: (b) India is the ninth largest steel producing country in the world
UPSC 2003 · Q85 · Indian Economy › External Sector & Balance Of Payments · Save

With reference to Government of India’s decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements:

  1. Out of the 100% FDI allowed by India in tea sector, the foreign firm would have to disinvest 33% of the equity in favour of an Indian partner within four years.
  2. Regarding the FDI in print media in India, the single largest Indian shareholder should have a holding higher than 26%.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (b) Only 2
UPSC 2003 · Q87 · Indian Economy › Taxation · Save

The Kelkar proposals which were in the news recently were the

(a) recommendations for reforms in the power sector
(b) recommendations for tax reforms
(c) guidelines for the privatisation
(d) guidelines for reducing vehicular pollution, and the promotion of CNG use
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Answer: (b) recommendations for tax reforms
UPSC 2003 · Q96 · Indian Economy › Banking & Financial Sector · Save

Consider the following statements:

  1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 per cent of the paid-up capital.
  2. Foreign Direct Investment up to 49 per cent from all sources is permitted in private sector banks in India under the automatic route.

Which of these statements is/are correct?

(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2
UPSC 2003 · Q102 · Indian Economy › External Sector & Balance Of Payments · Save

Assertion (A): During the year 2001-02, the value of India’s total exports declined, registering a negative growth of 2.17%.

Reason (R): During the year 2001-02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.

(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
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Answer: (d) A is false but R is true
UPSC 2003 · Q104 · Indian Economy › International Trade & WTO · Save

Assertion (A): The new EXIM Policy is liberal, market-oriented and favours global trade.

Reason (R): GATT has played a significant role in the liberalisation of economy.

(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
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Answer: (c) A is true but R is false
UPSC 2003 · Q143 · Indian Economy › International Trade & WTO · Save

Among the following commodities imported by India during the year 2001-02, which one was the highest in terms of Rupee value?

(a) Edible oil
(b) Fertilizers
(c) Organic and inorganic chemicals
(d) Pearls, precious and semi-precious stones
Show answer
Answer: (a) Edible oil