UPSC 2004 › Indian Economy

16 questions · 2004 · answers as per the UPSC key

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Topics: Agriculture & Rural Development (3)Infrastructure & Industry (3)Banking & Financial Sector (2)External Sector & Balance Of Payments (2)Human Development, Poverty & Employment Schemes (2)Economic Planning & Five-Year Plans (1)Fiscal Policy & Budget (1)International Trade & WTO (1)Taxation (1)
UPSC 2004 · Q1 · Indian Economy › Fiscal Policy & Budget · Save

With reference to Indian Public Finance, consider the following statements:

  1. Disbursements from Public Accounts of India are subject to the Vote of Parliament.
  2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
  3. Appropriations and disbursements under the Railway Budget are subject to the same form of Parliamentary control as other appropriations and disbursements.

Which of these statements given above are correct?

(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 3
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Answer: (b) 2 and 3
UPSC 2004 · Q9 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

Which one of the following statements is NOT correct?

(a) Under the Targeted Public Distribution System, the families Below Poverty Line are provided 50 kg of food grains per month per family at subsidized price.
(b) Under Annapurna Scheme, indigent senior citizens of 65 years of age or above eligible for National Old Age Pension but not getting pension can get 10 kg of food grains per person per month at BPL rates.
(c) Ministry of Social Justice and Empowerment has a scheme in which indigent people living in welfare institutions like orphanages are given 15 kg of food grains per person per month at BPL rates.
(d) Ministry of Human Resource Development gives financial support to Mid-Day Meal Scheme for the benefit of class I to V students in Government or Government-aided Schools.
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Answer: (a) Under the Targeted Public Distribution System, the families Below Poverty Line are provided 50 kg of food grains per month per family at subsidized price.
UPSC 2004 · Q20 · Indian Economy › Infrastructure & Industry · Save

Which one of the following was the largest IT software and services exporter in India during the year 2002-03?

(a) Birlasoft
(b) Infosys Technologies
(c) Tata Consultancy Services
(d) Wipro Technologies
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Answer: (c) Tata Consultancy Services
UPSC 2004 · Q22 · Indian Economy › Infrastructure & Industry · Save

Consider the following statements:

  1. The Oil Pool Account of Government of India was dismantled with effect from 1-4-2002.
  2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India.
  3. An expert committee headed by Dr. R.A. Mashelkar to formulate a national auto fuel policy recommended that Bharat Stage-II Emission Norms should be applied throughout the country by 1 April, 2004.

Which of these statements given above 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 2004 · Q23 · Indian Economy › External Sector & Balance Of Payments · Save

In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?

(a) Chemicals other than fertilizers
(b) Services sector
(c) Food processing
(d) Telecommunication
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Answer: (d) Telecommunication
UPSC 2004 · Q36 · Indian Economy › Taxation · Save

Which of the following is not a recommendation of the task force on direct taxes under the chairmanship of Dr. Vijay L. Kelkar in the year 2002?

(a) Abolition of Wealth Tax
(b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
(c) Elimination of standard deduction
(d) Exemption from tax on dividends and capital gains from the listed equity
Show answer
Answer: (b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
UPSC 2004 · Q40 · Indian Economy › Infrastructure & Industry · Save

Consider the following statements:

  1. National Thermal Power Corporation has diversified into hydropower sector.
  2. Power Grid Corporation of India has diversified into telecom sector.

Which of these statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2
UPSC 2004 · Q47 · Indian Economy › Banking & Financial Sector · Save

Consider the following statements:

  1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India.
  2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2
UPSC 2004 · Q52 · Indian Economy › Economic Planning & Five-Year Plans · Save

Consider the following statements:

  1. The highest deciding body for planning in India is the Planning Commission of India.
  2. The Secretary of the Planning Commission of India is also the Secretary of the National Development Council.
  3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India.

Which of the statements given above is/are correct?

(a) 1 and 2
(b) 2 and 3
(c) 2 only
(d) 3 only
Show answer
Answer: (b) 2 and 3
UPSC 2004 · Q69 · Indian Economy › Human Development, Poverty & Employment Schemes · Save

Assertion (A): The Central Rural Sanitation Programme was launched in 1986 to improve the quality of life of rural people in India.

Reason (R): Rural sanitation is a subject in the Concurrent List in the Constitution of India.

(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
Show answer
Answer: (c) A is true but R is false
UPSC 2004 · Q74 · Indian Economy › International Trade & WTO · Save

Assertion (A): India does not export natural rubber.

Reason (R): About 97 % of India's demand for natural rubber is met from domestic production.

(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
Show answer
Answer: (d) A is false but R is true
UPSC 2004 · Q75 · Indian Economy › External Sector & Balance Of Payments · Save

Assertion (A): For the first time, India had no trade deficit in the year 2002-03.

Reason (R): For the first time, India's exports crossed worth $50 billion in the year 2002-03.

(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
Show answer
Answer: (d) A is false but R is true
UPSC 2004 · Q76 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India.
  2. The Kisan Credit Card holders are provided personal accident insurance of Rs 50,000 for accidental death and Rs 25,000 for permanent disability.

Which of these statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (b) 2 only
UPSC 2004 · Q77 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. Regarding the procurement of food grains, Government of India follows a procurement target rather than an open-ended procurement policy.
  2. Government of India announces minimum support prices only for cereals.
  3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform central issue prices to the States/Union Territories.

Which of these statements given above is/are correct?

(a) 1 and 2
(b) 2 only
(c) 1 and 3
(d) 3 only
Show answer
Answer: (d) 3 only
UPSC 2004 · Q78 · Indian Economy › Agriculture & Rural Development · Save

Consider the following statements:

  1. Farmers prefer to grow food grains with highly remunerative support prices.
  2. Most of the cultivation of oil-seed crops continues to be dependent on rainfall.
  3. Oils from the seeds of tree origin and rice bran have remained unexploited.
  4. It is far cheaper to import oil seeds than to cultivate the oil-seed crops.

India continues to be dependent on imports to meet the requirement of oilseeds in the country because

Which of these statements is/are correct?

(a) 1 and 2
(b) 1, 2 and 3
(c) 3 and 4
(d) 1, 2, 3 and 4
Show answer
Answer: (b) 1, 2 and 3
UPSC 2004 · Q130 · Indian Economy › Banking & Financial Sector · Save

Consider the following statements:

  1. Reserve Bank of India was nationalized on 26 January 1950.
  2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.

Which of these statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (d) Neither 1 nor 2