IE&IFS MODULE A

@JAIIB_CAIIB_2024_NOTES_MCQs

@JAIIB_CAIIB_2024_NOTES_MCQs
Economic Planning in India
Planned economy for India

Planned economy for India (1934)

by M Visvesvaraya
 Planned Economy for India

Ø ● The era of economic planning in India started with

Visvesvaraya’s ten-year Plan.

Ø ● Sir M. Visvesvaraya published a book titled “Planned

Economy for India” in 1934 wherein he presented a draft to
double the national income in a decade.

Ø ● He proposed to shift the labour from the agrarian set

up to the industries thereby advocating for democratic
capitalism (similar to the USA) with emphasis on
industrialization.
 National Planning Committee (NPC)
Ø ● It was the first attempt to develop a national plan
for India emanated in 1938 with the set-up of NPC
under the chairmanship of Jawahar Lal Nehru.

Ø ● However, because of the commencement of

World War II, the reports of the committee could not
be prepared. The papers finally came out after
independence in 1948-49.
 The Bombay Plan (1944)
Ø A small group of influential business leaders
in Bombay drew up and published in January
1944, a plan for the economic development of
India.

Ø Mr. J. R. D. Tata and Mr. G. D. Birla were

primarily responsible for the initiation of the
study.
Ø ● Eight leading industrialists and technocrats formulated
a draft titled “A Brief Memorandum Outlining a Plan of
Economic Development for India” under the editorship of
Purushottamdas Thakurdas in 1944.

Ø ● This draft is known as the ‘Bombay Plan’.

Ø ● The basic objectives of the plan were doubling the

output of the agricultural sector and a five-fold growth in the
industrial sector in 15 years.
 The Gandhian Plan (1944)

Ø In the light of the basic principles of Gandhian

economics, S. N. Agarwal authored 'The Gandhian
Plan' in 1944 in which he put emphasis on the
expansion of small unit production and agriculture.
 People’s Plan (1945)

Ø The People’s Plan was Authored by M N Roy and drafted by

the Post- War Re-Construction Committee of the Indian
Federation of Labour.
 People’s Plan (1945)
Ø ● People’s plan was drafted by M. N. Roy, the
communist leader, on behalf of the Post- War
Reconstruction Committee of the Indian Federation of
Lahore in 1945.

Ø ● It was based on ‘Marxist Socialism’ and gave

primacy to agriculture. It advocated for the
nationalization of agriculture and all production
activities.
 Sarvodaya Plan (1950)

Ø It was drafted by Jaiprakash Narayan. The plan was

mainly inspired by the Gandhian Plan provided by S N
Agarwal & the Idea of Sarvodaya presented by another
Gandhian leader Vinoba Bhave.
 Sarvodaya Plan (1950)

Ø ● This plan was drafted by Jai Prakash Narayan in

1950.
Ø ● It was inspired by Gandhi Plan and Vinoba
Bhave’s principles of self-reliance.
Ø ● It laid stressed upon agriculture as well as small
and cotton industries.
Ø ● It advocated self-sufficiency by curtailing the use
of foreign technology and implementing land reforms
and decentralized participatory planning.
Planning Commission
Planning Commission

Ø Formed: 15 March 1950

Ø Jurisdiction: Government of India

Ø Headquarters: New Delhi

Ø First executive: Jawaharlal Nehru

Ø Objectives: Formulates India's Five-Year Plans,

among other functions

Planning
NITI Aayog
Ø Formed: 1 January 2015

Ø Objectives: Foster involvement and

participation in the economic policy-making

process by the State Governments of India

Ø Jurisdiction: Government of India

Ø Headquarters: New Delhi

Ø Chairperson: Narendra Modi

The Goals of Five-Year Plans
Five Year Plans
First Five-Year Plan (1951-1956): Emphasized agriculture and
improving living standards.

Second Five-Year Plan (1956-1961): Known as the Mahalanobis Plan,

it focused on industrialization.

Third Plan (1961-1966): Balanced development of agriculture and industry. Failed to

achieve targets due to wars with China (1962) and Pakistan (1965) and severe drought.

Three Annual Plans (1966-1969): The Five-Year Plan was disrupted due to economic
and political instability.
Fourth Plan (1969-1974): Emphasis on growth with stability and social justice.
Again faced issues due to the war with Pakistan (1971) and the global oil crisis.
Fifth Plan (1974-1979): Poverty alleviation and self- reliance. Introduced
measures like the Minimum Needs Programme but faced challenges in
implementation.
Sixth and Seventh Plans (1980-1985, 1985-1990): Economic stabilization and
increasing productivity in all sectors. Success in agricultural production,
technology, and export promotion.
Eighth Plan (1992-1997): Modernization, growth, and human development.
Post-liberalization era, encouraging private and foreign investment.
Ninth Plan (1997-2002): Social justice and sustainable development.

Emphasis on decentralization and Panchayati Raj institutions.

Tenth and Eleventh Plans (2002-2007, 2007-2012): Economic growth,

human development, and inclusive growth. Progress in sectors like

education, healthcare, and infrastructure.

Twelfth Plan (2012-2017): Faster, sustainable, and more inclusive growth.

The slowdown in the global economy affected the growth targets.

Que : Which of the following are functions of NITI Aayog?

A. To formulate credible plans at the state level

B. Partnerships with National and International Think Tanks
C. To focus on technology upgradation and capacity building for implementation
of programmes and initiatives

D. All of the above

Niti Aayog serves as an advisory body or a “Think Tank” of the
government of India to advise on social and economic issues. Apart
from designing strategic and long term policies and programmes
for the Government of India, NITI Aayog also provides relevant
technical advice to the Centre, State and Union Territories.
Que : The father of Indian planning is______.

A. Jawahar lal Nehru

B. Mahatma Gandhi
C. B.R. Ambedkar
D. M. Visvesvaraya
In India, Planning started with Mr. Mokshagundam Visvesvaraya
wrote a book name “Planned economy for India” in 1934. He also
known as the father of planning in India.
Que : Planning commission was established in ___________.

A. 1947
B. 1949
C. 1950
D. 1955
Que : Who was the ex officio chairman of the
planning commission?

A. President
B. Prime Minister
C. Vice President
D. Home Minister
Que : Who was the First Chairman of the
Planning commission of India?

A. M. Visvesvaraya
B. Pt. Jawahar Lal Nehru
C. P.C. Mahalanobis
D. John Mathai
Que : The slogan, 'Garibi Hatao', was aligned with which
main objective of the Fifth Five-Year Plan?

A. Mass education
B. Revival of cottage industries
C. Poverty eradication
D. Employment generation
• The objective of Fifth Five Year plan was the removal of poverty
and attainment of self-reliance and top Priority was given to
Agriculture.
Que : Under which plan did the Government introduce
an agricultural strategy which gave rise to Green
Revolution?

B. Third Five Year Plan

C. Fourth Five Year Plan
D. Sixth Five Year Plan
E. Seventh Five Year Plan
Third Five Year Plan emphasized the need to accelerate growth in
agriculture and improve production. It is also called Gadgil Yojna
Que : Which Five Year Plan had an objective of 'Rapid
industrialization' with particular emphasis on
development of basic and heavy industries?

A. First
B. Second
C. Third
D. Fourth
Que : NABARD was established during which of the
following five-year?

A. Fourth Five Year Plan

B. Fifth Five Year Plan
C. Sixth Five Year Plan
D. Seventh Five Year Plan
Que : Durgapur, Bhilai and Rourkela iron steel
plants were setup during which plan?

A. Second
B. First
C. Four
D. Third
Three Iron and Steel Industries were established

• Raurkela Steel Plant - Orissa with the support of Germany

• Bhilai Steel Plant - Chhattisgarh with support of Russia
• Durgapur Steel Plant - West Bengal with support of U.K
Que : Which of the following statement is correct about
the NITI Aayog?
A. NITI Aayog was Formed 25 January 2016
B. NITI Aayog headquartered in Mumbai
C. NITI Aayog comes under the Ministry of
Commerce and Industry
D. The full form of NITI Aayog is National institution
for Transforming India
On 1st January 2015, NITI Aayog was established which replaced
the Planning Commission and the Planning Commission was
dissolved on 13th August 2014 by the NDA government. It serves as
an advisory body or a “Think Tank” of the government of India to
advise on social and economic issues.
PLAN YEAR
First Plan
• FIVE YEAR PLAN LIST 1951-56
Second Plan 1956-61
Third Plan 1961-66
Annual Plan (Plan Holiday) 1966-69

Fourth Plan 1969- 74

Fifth Plan 1974-79

Rolling Plan 1979-80

Sixth Plan 1980-85
Seventh Plan 1985-90
Planning Gap 1990-92
Eighth Plan 1992-97
Nineth Plan 1997 -2002
Tenth Plan 2002-2007
Eleventh Plan 2007-2012

Twelfth Plan 2012-2017

The economic sectors can be categorized into five main groups:
Primary, Secondary, Tertiary, Quaternary, and Quinary. Each
plays a unique role in the economy, contributing to
development, employment, and overall growth.
Primary Sector Role
Natural Resource Extraction: Includes agriculture, fishing, forestry,
and mining.
Food Production: Supplies essential food products.

Importance
Foundation of Economy: Base for all other products and industries.
Employment: Major source of employment in many countries,
especially developing ones.
Secondary Sector Role
Manufacturing and Processing: Transforms raw materials into
finished goods.
Infrastructure Building: Includes construction of roads, buildings,
bridges, etc.

Importance
Value Addition: Adds value to raw materials by transforming them.
Industrial Growth: Fuels industrialization and modernization.
Tertiary Sector Role
Services Provision: Includes banking, retail, education, healthcare, etc.
Support to Other Sectors: Provides support to primary and secondary sectors
through services like transportation, finance, etc.

Importance
Economic Development: Often the largest sector in developed economies.
Quality of Life: Enhances living standards by providing essential services.
Quaternary Sector Role

Information and Knowledge Services: Includes IT, research,

consultancy, etc.
Technological Advancement: Focus on innovation and
technological development.

Importance
Knowledge Economy: Drives the modern knowledge- based
economy.
Global Competitiveness: Helps in building a competitive edge
in the global market.
Quinary Sector Role
High-level Decision Making: Includes top executives,
legislators, non-profit organizers, etc.
Human Services: Focus on human health, education, culture,
and scientific research.

Importance
Strategic Management: Governs and guides other sectors.
Human Development: Focuses on services that improve human
well-being.
CONTRIBUTION OF DIFFERENT SECTORS
ORGANISED AND UNORGANISED SECTORS
The _____ Revolution focused on increasing the production
of _____ and was launched in India in _______.

(a) Green, food grains, 1960s

(b) White, dairy products, 1970s
(c) Green, dairy products, 1960s
(d) White, food grains, 1970s
The Green Revolution focused on increasing the production of food grains

and was launched in India in the 1960s. The Green Revolution in India

started in the 1960s to address the issue of food scarcity. It was focused on

improving the yield of food grain crops, particularly wheat and rice, by

promoting high yielding varieties, expansion of farming areas, double

cropping, and using modern technology and practices, including the use of

fertilizers and pesticides.

Choose the correct statement about the Indian economy;

1. Primary sectors include almost 50% of the total population

2. The primary sector includes Agricultural and Natural
resources

(1) Both 1 and 2 are correct

(2) Only 1 is correct
(3) Only 2 is correct
(4) Quinary sector
The primary sector Indian economy provides the highest employment
the Indian economy. It includes Agricultural and allied activities in
which almost 50% to 60% of the Indian workforce associates. There
are five sectors in the economy as follows.
Primary Sector - raw materials.
Secondary Sector - manufacturing.
Tertiary Sector - services.
Quaternary Sector - knowledge.
Quinary Sector - an extension of the tertiary/quaternary sector.
Choose the correct statement about the Secondary sector of

the Indian economy.

1. It contributes approx 21-26% to the Economy

2. The Industrial sector is part of the secondary sector

(1) Only 1 is correct

(2) Only 2 is correct

(3) Both 1 and 2 are correct

(4) None of the above statements is correct

The secondary sector contributes almost 21-26% of the Indian

GDP. It includes construction and the public utility industries

of electricity, gas, and water textile. Manufacturing is an

important activity for those economies that abandon the labor

force it helps economic growth and development. The are 8

sectors also called core sectors Refinery Products, Electricity,

Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilizers.

Consider the given statement

1. Banking is part of the tertiary sector of the economy

2. The tertiary sector contributes a very less percentage to the
Indian economy Choose the correct statement

(1) Only 1 is correct

(2) Only 2 is correct
(3) Both 1 and 2 is correct
(4) Neither 1 nor 2 is correct
Banking is included in the Tertiary sector. The tertiary sector

contributes almost 50-60 % of the GDP maximum in all

sectors of the economy. The tertiary sector includes Banking,

Communication, and telecom almost all service sectors.

Consider the given statement

1. Banking is part of the tertiary sector of the economy

2. The tertiary sector contributes a very less percentage to the
Indian economy Choose the correct statement

(1) Only 1 is correct

(2) Only 2 is correct
(3) Both 1 and 2 is correct
(4) Neither 1 nor 2 is correct
Banking is included in the Tertiary sector. The tertiary sector

contributes almost 50-60 % of the GDP maximum in all

sectors of the economy. The tertiary sector includes Banking,

Communication, and telecom almost all service sectors.

Arrange the following revolutions in the primary sector in
India in chronological order:

I. Blue Revolution (Fisheries)

II. Green Revolution (Agriculture)
III. White Revolution (Milk/Dairy)
IV. Yellow Revolution (Oil seeds)

(a) II-I-III-IV (b) III-IV-I-II

(c) IV-II-III-I (d) II-III-I-IV
1: Green Revolution (Agriculture) - The first major revolution in the primary
sector in India was the Green Revolution, which took place in the late 1960s and
early 1970s. This revolution aimed at increasing agricultural productivity with
the help of high yielding varieties of seeds, irrigation, and the use of fertilisers
and pesticides.

2: White Revolution (Milk/Dairy) - The next major revolution was the White
Revolution in the 1970s, also known as Operation Flood. It transformed
India from a milk-deficient nation to the world's largest milk producer.

3: Blue Revolution (Fisheries) - The Blue Revolution, aimed at increasing the

production of fish and marine products, began in 1985 till 1990.

4: Yellow Revolution (Oil seeds) - The Yellow Revolution, which launched in

1986-87, focused on increasing the production of oil seeds, particularly mustard
and sunflower.
Fill in the blanks in the given statements:
I. The sunrise sector in the Indian economy signifies industries that
have ____ (a) ____.
II. These sectors show ____(b)____ in terms of revenue and job
opportunities.
III. One of the examples of the sunrise sector in India is ____ (c)
____.
(a) (a):just started(b):slow growth(c):the textile industry
(b) ((a):a promising future(b):rapid growth(c):the IT industry
(c) (a):just started(b):rapid growth(c):the agriculture industry
(d) (a):a promising future(b):slow growth(c):the textile industry
The sunrise sector in the Indian economy signifies industries that have a promising
future. Sunrise sectors are the most promising and dynamic segments of the economy
that are expected to grow significantly in the future. These sectors are characterized by
high growth potential, considerable investments, and cutting-edge technology.
These sectors show rapid growth in terms of revenue and job opportunities. Given their
potential, sunrise sectors often exhibit a high growth rate, resulting in increased revenue
and employment opportunities. They are expected to become key drivers of economic
growth.
One of the examples of the sunrise sector in India is the IT industry. Information
Technology is one of the sunrise sectors in India, witnessing tremendous growth and
contributing significantly to the economy in terms of revenue and job creation. Other
examples could include renewable energy, electric vehicles, biotechnology, etc.,
depending on the time and evolving economic trends.
PRIORITY SECTOR & MSME
The Priority Sector refers to sectors of the economy that
may not receive adequate attention from the financial
system but are considered essential for overall economic
development. The Reserve Bank of India (RBI) identifies
and categorizes certain sectors as the Priority Sector to
ensure that these areas receive timely and adequate credit.
PRIORITY SECTOR LENDING NORMS
PRIORITY SECTOR LENDING NORMS
The Reserve Bank of India (RBI) identifies certain sectors as
'Priority Sectors' to ensure directed credit flow to these areas.
Which of the following is NOT considered a part of the Priority
Sectors by RBI?

(a) Micro, Small and Medium Enterprises (MSMEs)

(b) Export Credit
(c) Real Estate
(d) Agriculture
The Reserve Bank of India (RBI) recognizes various sectors as 'Priority
Sectors' to guarantee that these crucial areas receive an adequate flow of
credit.
This classification aims to ensure that the vulnerable sections of society
and the sectors that impact large segments of the population benefit from
institutional credit.
The sectors include Micro, Small and Medium Enterprises (MSMEs),
Export Credit, Agriculture, and many others.
Real Estate is NOT considered a part of the Priority Sectors by the RBI.
Consider the following statements regarding Small Finance Bank (SFB):
1. It is registered as a Public Limited Company under the
Companies Act, 2013.
2. It is mandated to extend 75% of its adjusted net bank credit to
the Priority Sector Lending (PSL).
3. SFBs are governed only by the provisions of the Banking
Regulation Act, 1949.

Which of the statements given above is/are correct?

(1) 1 and 2 only (2) 2 only
(3) 2and3only (4) 1,2and3
Consider the following pairs:
Initiatives to Promote MSME: Sector Specific Purpose
1. Udyam Registration Portal: MSMEs can directly register their cases about
delayed payments by Central/ State Departments.
2. MSME SAMBANDH: Monitors the implementation of the Public Procurement
from MSEs by Central Public Sector Enterprises.
3. ASPIRE Initiative: Promotes innovation & rural entrepreneurship through rural
Livelihood Business Incubator (LBI).
Which of the pairs given above are correctly matched?
(1) 1and2only (2) 2and3only
(3) 1and3only (4) 1,2and3
2

Udyam registration is now mandatory for all MSMEs.

It provides multiple benefits to help MSMEs succeed,
some of which are: Collateral-free loans from banks
and financial institutions and subsidised interest rates.
Simplified process of obtaining licences, permits,
registrations, and approvals.
With reference to Priority Sector lending (PSL), Consider the
following statements :
1. Foreign banks with less than 20 branches in India have no
targets under Priority Sector lending (PSL).
2. It is one of the quantitative tools of monetary policy.
3. It is one of the tools to resolve the issue of Non-Performing
Assets of the banking sector.

Which of the statements given above is/are incorrect?

(1) 1 only
(2) 1 and 2 only
(3) 2 and 3 only
(4) All of the above
The Reserve Bank of India (RBI) identifies certain sectors as
'Priority Sectors' to ensure directed credit flow to these areas.
Which of the following is NOT considered a part of the Priority
Sectors by RBI?

(a) Micro, Small and Medium Enterprises (MSMEs)

(b) Export Credit
(c) Real Estate
(d) Agriculture
The Reserve Bank of India (RBI) recognizes various sectors as 'Priority
Sectors' to guarantee that these crucial areas receive an adequate flow of
credit.
This classification aims to ensure that the vulnerable sections of society
and the sectors that impact large segments of the population benefit from
institutional credit.
The sectors include Micro, Small and Medium Enterprises (MSMEs),
Export Credit, Agriculture, and many others.
Real Estate is NOT considered a part of the Priority Sectors by the RBI.
Que : Which of the following is not a part of
the priority sector?

A. Education
B. Housing
C. Banking
D. Social Infrastructure
The categories under the priority sector are as follows:

1. Agriculture
2. Micro, Small, and Medium Enterprises
3. Export Credit
4. Education
5. Housing
6. Social Infrastructure
7. Renewable Energy
8. Others
Que : Domestic commercial banks have to
lend what percentage of their respective
ANBC to the priority sector?
A. 10%
B. 12%
C. 18%
D. 40%
Que : Loans to individuals for educational
purposes, including vocational courses, not
exceeding ____________ are considered eligible for
priority sector classification.
A. Rs 5 lakh
B. Rs 10 lakh
C. Rs 15 lakh
D. Rs 20 lakh
Loans to individuals for educational
purposes, including vocational courses,
not exceeding Rs 20 lakh are considered
eligible for priority sector classification.
Que : RRBs have to lend what percent of their
respective ANBC to the priority sector?
A. 7.5%
B. 12%
C. 18%
D. 40%
E. 75%
Que : What is the overall target for
agriculture sector under PSL category for
domestic commercial banks?

A. 7.5%
B. 12%
C. 18%
D. 40%
Que : Which of the following area covered under
agriculture under PSL norms?

A. Agricultural Infrastructure
B. Ancillary Activities
C. Small and Marginal Farmers
D. All of the above
v The lending to the agriculture sector includes Farm Credit (Agriculture and
Allied Activities), lending for Agriculture Infrastructure and Ancillary
Activities.

v Farm Credit to Individual farmers including Self Help Groups (SHGs) or Joint
Liability Groups (JLGs) includes groups of individual farmers and
Proprietorship firms of farmers, directly engaged in Agriculture and Allied
Activities, such as dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture.
ü Agricultural Infrastructure
ü Ancillary Activities
ü Small and Marginal Farmers
Que : Consider the following statements regarding PSL limits for
banks and find out the wrong one;

A. The overall target for domestic commercial banks is 40% of

their respective ANBC
B. Out of this they have to lend 10% in agriculture sector
C. 7.5% to MSME sector
D. 12% to weaker section
Que : What will be the total PSL target for Primary
Urban Co-Operative banks till March 31, 2024?
A. 40%
B. 45%
C. 50%
D. 60%
E. 75%
Globalization refers to the process of increased interconnectivity

and interdependence among countries, economies, and people. It

involves the expansion of international trade, investment,

information technology, and cultural exchanges.

The 1991 economic reforms marked a paradigm shift in the Indian
economic policy framework. These reforms aimed at liberalizing and
opening up various sectors of the economy. Which of the following
policy measures was NOT a part of the 1991 economic reforms in India?

(a) Abolition of the License Raj

(b) Devaluation of the Indian Rupee
(c) Introduction of Goods and Services Tax (GST)
(d) Reduction in import tariffs
The 1991 economic reforms in India, often termed as the LPG (Liberalization,
Privatization, and Globalization) reforms, brought about major changes in
India's economic policies. Among the key measures were: Abolition of the
License Raj, which ended the need for industries to obtain permits and licenses
for expanding capacity, entering new areas, and establishing new ventures.
Devaluation of the Indian Rupee to make exports more competitive and reduce
the balance of payments crisis that India was facing at the time.
Reduction in import tariffs to integrate the Indian economy with the global
market and reduce the cost of imported goods.
The introduction of the Goods and Services Tax (GST) was not a part of the
1991 reforms. GST was introduced much later, in 2017, to unify the various
indirect taxes into a single tax regime and create a seamless national market.
Fill in the blanks in the given statements:
I. Protectionism, which is the opposite of globalization, involves (a).
II. The re-emergence of protectionism may lead to (b) in global trade.
III. One of the ways countries exercise protectionism is through the
imposition of (c).
(a) (a): promoting free trade (b): an increase (c): lower tariffs
(b) (a): imposing trade barriers (b): a decrease (c): higher tariffs
(c) (a): promoting free trade (b): a decrease (c): higher tariffs
(d) (a): imposing trade barriers (b): an increase (c): lower tariffs
Protectionism, which is the opposite of globalization, involves imposing trade barriers.
Protectionism refers to the economic policy of restraining trade between nations through
methods such as tariffs on imported goods, restrictive quotas, and other government regulations
designed to discourage imports and protect domestic industries from foreign competition.
The re-emergence of protectionism may lead to a decrease in global trade. When countries start
retaliation from other nations, resulting in a global trend towards decreased free trade. This can
cause a reduction in global trade volumes, potentially leading to lower economic growth
worldwide.
One of the ways countries exercise protectionism is through the imposition of higher tariffs.
Tariffs are taxes imposed on imported goods, which are used to make imported goods more
expensive and less competitive than domestically produced goods. This is a common form of
protectionism designed to protect local industries from foreign competition.
Which of the following options correctly defines the term
globalisation?
(1) A rise in economic integration among nations
(2) The development towards restricted cross- border flows of
goods and services, capital, and labour force
(3) The reduction in economic integration among nations
(4) The concept of reducing international trade barriers
What is one positive impact of globalisation on India's economy?

(1) Increased poverty and inequality

(2) Increased barriers to trade with other nations

(3) Increased foreign investment and export opportunities

(4) Increased reliance on domestic production and consumption

Consider the following statement regarding how has
globalisation impacted India? Identify the correct Statement.
a. Increased competition in the domestic market
b. Improved access to foreign technology and capital
c. Encouraged protectionism and economic isolationism
Created opportunities for Indian businesses to expand globally
(1) a, b and c
(2) (2) b, c and d
(3) a, b and d
(4) a, b, c, d
3
India's 1991 economic reforms serve as an illustrative example, comprising a
mix of liberalization, stabilization, and structural reforms. Faced with a balance
of payments crisis, India undertook a series of measures, including:

ü Liberalizing Trade: Reducing import tariffs and quotas.

Deregulating Industries: Abolishing industrial licenses and
ü allowing foreign direct investment (FDI) in many sectors.
ü Privatizing State-owned Enterprises: Selling government stakes in public
sector companies.
ü Stabilizing the Economy: Implementing fiscal discipline and monetary
measures to stabilize the financial system.
Banking Sector Reforms

ü Liberalization: Introduction of private banks and reduction of controls on

interest rates and lending.
ü Prudential Norms: Implementation of international banking standards like
Basel norms to ensure safety and stability.
ü Financial Inclusion: Efforts to extend banking services to rural and
underserved areas, such as the Jan Dhan Yojana.
ü Digital Banking: Adoption of online banking, mobile banking, and digital
payments to enhance accessibility and convenience.
Narasimhan Committee I (1991)
The first Narasimham Committee was formed in 1991 to look into all aspects of the financial system
in India. Major recommendations and outcomes included:
(a) Reduction of SLR (Statutory Liquidity Ratio) and CRR (Cash Reserve Ratio): SLR and CRR
were gradually reduced to enable banks to have more funds available for lending.
(b) Deregulation of Interest Rates: Interest rates were liberalized to reflect the market dynamics
better.
(c) New Banking Licenses to Private Players: Private banks were allowed to operate, leading to
increased competition and efficiency.
(d) Prudential Norms for Income Recognition and Asset Classification: Introduction of prudential
norms to enhance transparency and risk management.
(e) Establishing Development Financial Institutions (DFIs): Suggested setting up DFIs to fund long-
term projects.
(f) Setting Up of Debt Recovery Tribunals (DRTs): For faster resolution of loan recovery disputes.
Narasimhan Committee II (1998)
The second Narasimham Committee was formed in 1998 to review the implementation of the
previous recommendations and propose further reforms. Key recommendations and outcomes
were:
(a) Capital Adequacy and Risk Management: Suggested adherence to Basel norms to ensure global
compatibility in risk management.
(b) Stressed on Narrow Banking Concept: Weak banks were suggested to invest in risk-free
government securities.
(c) Universal Banking Concept: Encouraged the integration of commercial banking
with investment banking.
(d) Governance of Public Sector Banks (PSBs): Proposed measures to improve the governance of
PSBs, including Board-level changes.
(e) Mergers and Consolidations: Suggested that large Indian banks should be allowed to take over
smaller ones to create globally competitive institutions.
(f) Greater Autonomy to Banks: Recommended giving more operational autonomy to banks,
particularly in appointments and working mechanisms.
Capital Market Reforms

Securities and Exchange Board of India (SEBI): Establishment of SEBI to regulate and develop the
capital markets.
Dematerialization: Transition from physical share certificates to electronic trading.
Foreign Portfolio Investment: Allowing foreign investors to invest in Indian stocks and bonds.

Insurance Sector Reforms

Opening to Private Players: Allowing private companies, including foreign ones, to operate in the
insurance sector.
Regulatory Oversight: Establishment of the Insurance Regulatory and Development Authority of
India (IRDAI).
This relaxation of government regulations and reduction of trade barriers

to promote free market activity is also known as ________.

(a) Structural Adjustment (b) Economic Liberalization

(c) Economic Privatization (d) Market Socialism

Economic Liberalization refers to a relaxation of
government regulations and reduction of trade
barriers, allowing for increased participation of
private entities in the economy.
The economic reforms in India, known as the ____ reforms,
marked a paradigm shift from a _____ economy to a _____
economy, and they were initiated in the year _______.

(a) LPG, closed, open, 1991

(b) GDP, open, closed, 2001
(c) LPG, open, closed, 1991
(d) GDP, closed, open, 2001
The economic reforms in India, known as the LPG reforms, marked a paradigm shift
from a closed economy to an open economy, and they were initiated in the year
1991. In response to a major balance-of payments crisis, India embarked on a series
of economic reforms in 1991, referred to as the Liberalization, Privatization, and
Globalization (LPG) model. Liberalization involved the removal or reduction of
restrictions or barriers on the free exchange of goods and services. Privatization
involved the transfer of ownership, control, and management of government-owned
or public sector entities to the private sector. Globalization involved the integration
of the country’s economy with the world economy. These reforms marked a
significant shift from a largely closed and centrally planned economy to an open and
market-led economy, aiming to enhance efficiency, boost growth, and make India a
globally competitive economy.
Economic reforms are fundamental changes in economic policies that
are aimed at improving the efficiency and effectiveness of an economy.
They can take various forms, such as liberalization, privatization,
globalization, or structural reforms.

Which of the following is NOT typically considered a component of

broad economic reforms?

(a) Removal of trade barriers and encouragement of international trade

(b) Deregulation of industries and reduction of government interference
(c) Implementation of stringent environmental regulations
(d) Privatization of state-owned enterprises
Implementation of stringent environmental regulations might be
part of a broader governance strategy, but it doesn't align with
the usual objectives of economic reforms, such as increasing
market efficiency, promoting competition, and reducing
government intervention in the economy.
Which of the following statement(s) is incorrect in the context of
the Banking Reforms and Policies in India?

I. The Narasimham Committee was formed in the early 1980s

to address the issues of the financial system in India.
II. Basel III norms in India are aimed to strengthen the
regulation, supervision, and risk management of banks.
III. The Insolvency and Bankruptcy Code (IBC) was enacted in
India in 2016 to address insolvency and bankruptcy issues.
IV. The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to
provide accessible and affordable housing to all Indians.

(a) I & II (b) II & III

(c) I & IV (d) III & IV
I. The Narasimham Committee was formed in the arly 1990s, not the
1980s, to address the issues of the financial system in India. This
committee laid down significant suggestions for financial sector
reforms.
II. Basel III norms indeed aim to strengthen the regulation,
supervision, and risk management of banks, so this statement is
correct.
III. The Insolvency and Bankruptcy Code (IBC) was indeed enacted
in India in 2016 to resolve insolvencies in a time-bound manner, so
this statement is also correct.
IV. The Pradhan Mantri Jan Dhan Yojana (PMJDY) is aimed at
ensuring access to various financial services like banking, savings
and deposit accounts, remittance, credit, insurance, and pension in an
affordable manner, not housing. Therefore, this statement is incorrect.
When was the concept of globalisation formally
introduced in India?

(1) 1985-86
(2) 1990-91
(3) 1991-92
(4) 1995-96
How did the Balance of Payment Crisis affect bank rates?

(1) They remained unchanged

(2) They decreased significantly
(3) They were lowered to attract investors
(4) They were raised
4
Which of the following were objectives of the New Economic Policy (NEP) introduced
in India in 1991?

(A) Increase government control over the economy.

(B) Restrict the flow of goods and services across international borders.
(C) Stabilize the economy and remove unnecessary restrictions.
(D) Decrease the growth rate of the economy to address imbalances.
(E) Reduce the reserved sectors for government intervention.

(1) Only A and B (2) Only C and E

(3) Only B and E (4) Only A and D

2
What was one of the negative impacts of the economic

reforms on the agricultural sector?

(1) Decrease in mechanization

(2) Increase in food grain production

(3) Decrease in workforce

(4) Stagnation of agricultural growth

4
Which one of the following is a positive impact of the
economic reforms in India?

(1) Decrease in foreign investment

(2) Decrease in foreign exchange reserves
(3) Increase in agricultural growth
(4) Increase in the service sector growth
Q. India's export trade is facilitated by the _______________,
which functions under the _______________.

A. The Ministry of Commerce and Industries of the Indian

government, also known as the Reserve Bank of India (RBI).
B. The Reserve Bank of India (RBI), the Indian government, and
the ministry of finance.
C. The Directorate General of Foreign Trade (DGFT), is part of the
Ministry of Commerce and Industry in the government of India.
D. Ministry of Finance, Government of India's Directorate
General of Foreign Trade (DGFT).
Ø A government organization called the Directorate General of
Foreign Trade (DGFT) is in authority of creating and
executing India's foreign trade policies.
Ø It is regulated the Ministry of Commerce and Industry. The
DGFT is the authority of notifying the procedures that must
be followed for export commerce in India. It is necessary for
promoting and controlling the nation's trade-related
activities abroad.
Q. Which of the following is /(are) advantage of the exporters' Gold Card Scheme?
A. A stand-by limit of at least 20% of the assessed limit is made available to help with
sudden orders that require urgent credit.
B. Banks may consider waiver of collaterals and exemption from ECGC insurance and
waiving collateral requirements based on the creditworthiness and track record of the
cardholder.
C. The applicable interest rate under the Gold Card Scheme will not be higher than the
bank's standard rate for export credit.
D. The issuing banks may decide to provide customers the option of adding more value
to their cards through supplemental services including ATM, Internet banking, and
international debit/credit cards.

A. A and B.
B. A, B and C.
C. A and C.
D. A, B ,C and D.
Ø The ability to further enhance the value of their cards through
supplemental services like ATMs, Internet banking, and
international debit/credit cards is not included in the Gold Card
Scheme. This is so that exporters can receive financing more
easily and effectively; the Gold Card Scheme is not intended to
offer additional banking services.
Ø A stand-by limit of at least 20% of the assessed limit may also
be made available to help with sudden orders that require
urgent credit. and can be used to meet immediate credit
demands.
Ø The relaxation of collateral requirements and exclusion from
ECGC insurance can lower the cost of financing for exporters.
Ø The interest rate cap makes sure that exporters don't overpay
for financing.
Q. Under the Export Bill Rediscounting (EBR) plan, Pre-
shipment Credit may last for a maximum of:

A. 30 days
B. 60 days
C. 90 days
D. 180 days
Ø Under the EBR program, Pre-shipment Credit may last up to
90 days. This indicates that the exporter may only borrow
money from the bank up to 90 days before the shipment of
the products.
Ø A large number of exporters need this length of time to find
raw materials, manufacture goods, and prepare the
products for transportation. The length of the maximum
Pre-shipment Credit period permitted by the EBR system is
90 days.
Ø If an exporter were permitted to borrow money for an
extended amount of time, the risk would rise and it would
be difficult for them to repay the loan.
Que : New Economic Reforms with LPG model was
passed in which year?

A. 1991
B. 1992
C. 1995
D. 2000
India made LPG reforms in 1991. LPG reforms are also known as
Liberalization, Privatization and Globalization reforms. They have
transformed the way India as an economy works and opened the
country up to the world for trade and commerce.
Que : _____________ account monitors the flow of funds from goods and
services trade (import and export) between countries.

A. Saving Account
B. Current Account
C. Capital Account
D. Financial Account
• The current account monitors the flow of funds from goods and
services trade (import and export) between countries.
Que : Which country is the largest trading partner of India?

A. China
B. USA
C. UAE
D. UK
Que : A country’s BOP is vital for the following reasons___________.

A. BOP of a country reveals its financial and economic status.

B. BOP statement can be used as an indicator to determine whether
the country’s currency value is appreciating or depreciating.
C. BOP statement helps the Government to decide on fiscal and trade
policies.
D. All the above
Que : __________ is an investment fund that is based in a
country other than the one where the investment is made.

A. Foreign Institutional Investment

B. Foreign Trade Investment
C. Forex
D. Foreign Trade Investment
Foreign Institutional Investment (FII) is a type of investment fund
that is based in a country other than the one where the investment
is made. FII only invests in the secondary market. FII does not have
a specific company to target
Que : An _____ is a financial investment made by a company
or individual in another country’s business interests.

A. RBI
B. FDI
C. SEZ
D. FII
• A circumstance in which a foreign entity gets ownership or
control rights over the shares of a firm in a country or forms a
corporation in that country is referred to as foreign direct
investment (FDI).
Que : FDI in India is allowed by two modes Government
route and __
A. Automatic route
B. Trade route
C. Bank route
D. State route
• In India, FDI is permitted through two routes, the automatic
route, and the government route. Automatic Route does not
require government approval.
Que : When payments of foreign exchange are more than
receipts, then the Balance of Payments is __________.

A. Surplus
B. Deficit
C. Balanced
D. Favourable
• When payments of foreign exchange are more than receipts,
then the Balance of Payments is unfavourable or deficit.
Que : Balance of trade is the ___________.

A. Difference between export and import of

services
B. Total of export and import of services
C. Difference between export and import of
goods
D. Total of export and import of goods
• Balance of payment is the record of all economic transactions
but Balance of trade is the difference between total exports and
imports of an economy in one financial year.
Que : What is the Devaluation of currency?

i) When the value of domestic currency decreases in relation to

the value of the foreign currency (flexible system)
ii) Fall in the value of the domestic currency in relation to
foreign currency as planned by the Central Bank (Fixed system)
A. Only i
B. Only ii
C. Both i and ii
D. None of the above
• Devaluation is the fall in the value of a domestic currency
compared to foreign currency as planned by the Central Bank
when the exchange rate is not determined by forces of demand
and supply under a fixed exchange rate system.
Que : India’s all economic transactions with the outside
world in a year will be known as___.

A. Balance of Trade
B. Balance of Payments
C. Foreign trade account
D. All of the above
• Balance of payment refers to the outcome of all the total
transactions of an economy between the residents and the rest
of the world carried out in a specific period of time.
Que : Where are the Foreign exchange reserves
held in India?

A. Finance Ministry
B. Central Treasury
C. Reserve Bank of India
D. State Bank of India
Que : ______ means selling the products at a price less than
the ongoing price in the international market.

A. Quota
B. Tariff
C. Subsidy
D. Dumping
• Dumping refers to lower-priced sales of goods abroad, below the
cost and price in their home market.
Automatic Route
Think of the automatic route like a fast-track lane in an amusement park. If you
meet all the requirements, you can go right in without waiting for special
permission.

Government Route
Imagine the government route like a gate with a security guard. Before you can
go in, you have to get permission from the guard.

Hybrid Route
A hybrid route is like having a combination of the fast-track lane and the gate
with a security guard. You might be able to go in quickly for some things but
need permission for others.
Greenfield FDI:

Think of it as building a new playground from scratch. Greenfield FDI is

when a foreign company builds a new business in another country from the
ground up.

Brownfield FDI:
Imagine buying an old playground and renovating it. Brownfield FDI is when
a foreign company buys or merges with an existing local company.

Joint Venture: Think of building a playground with a friend. A joint

venture is when a foreign company partners with a local company to create a
new business together.
What is the FDI limit of the Mining Sector and what is
the entry route?
(1) 26%, Automatic
(2) 100%, Automatic
(3) 26%, Government
(4) 100%, Government
2019 allowing 100% FDI under automatic route
for sale of coal, coal mining activities including
associated processing infrastructure subject to
the provisions of the Coal Mines (Special
Provisions) Act, 2015
Which scheme has been added as an additional scheme eligible
to claim benefits under the Export Promotion of Capital Goods
(EPCG) Scheme under FTP 2023?

(1) Prime Minister Mega Integrated Textile Region and Apparel

Parks (PM MITRA) scheme
(2) Common Service Provider (CSP) Scheme
(3) Dairy Sector Upgradation Scheme
(4) Green Technology Development Scheme
Prime Minister Mega Integrated Textile Region
and Apparel Parks (PM MITRA) scheme has been
added as an additional scheme eligible to claim
benefits under CSP(Common Service Provider)
Scheme of Export Promotion capital Goods
Scheme(EPCG).
Which of the following is/are the key pillar(s) of the Foreign
Trade Policy (2023)?

(A) Incentive to Remission

(B) Export promotion through collaboration -
Exporters, States, Districts, Indian Missions
(C) Ease of doing business, reduction in transaction cost and
e-initiatives

(1) Only B and C

(2) Only C
(3) Only A and C
(4) All of the above
The policy is built on the principles of trust and
partnership with exporters and is based on four
pillars: Incentive to Remission, Export Promotion
through Collaboration, Ease of Doing Business,
and Emerging Areas.
The special one-time Amnesty Scheme introduced under the

FTP 2023 is aimed at addressing default on__________.

(1) Import duties

(2) Export Obligations

(3) Income tax liabilities

(4) Custom duty exemptions

2

The new FTP is introducing a one-time Amnesty

Scheme for exporters to close the old pending
authorizations and start afresh. The FTP 2023
encourages recognition of new towns through
“Towns of Export Excellence Scheme” and exporters
through “Status Holder Scheme”.
Which of the following statements is/are TRUE regarding the Foreign Trade Policy
(2023)?
(A) The policy aims at process re-engineering and automation for exporters.
(B) The policy introduces a one-time Amnesty Scheme for importers to close the old
pending authorizations and start afresh.
(C) The policy encourages collaboration with Indian Missions for export promotion.
(1) Only A
(2) Only C
(3) Only A and C
(4) All of the above
What is the main difference between Foreign Direct Investment (FDI) and
Foreign Portfolio Investment (FPI)?

(1) FDI involves investment in unlisted Indian company, while FPI involves
investment in a listed Indian company.
(2) FDI requires a minimum investment of 10% of the post issue paid-up
equity capital, while FPI does not have a minimum investment requirement.
(3) FDI can only be made by individuals, while FPI can be made by
individuals and entities.
(4) FDI is repatriable, while FPI is non- repatriable.
What is meant by "downstream investment"?

(1) Investment made by an Indian entity in another Indian entity.

(2) Investment made by a foreign entity in a foreign company.
(3) Investment made by a foreign entity in an Indian company.
(4) Investment made by an Indian entity in a foreign company.
1

Investment by an Indian company (which is owned or

controlled by foreigners) into another Indian entity is
considered as Indirect Foreign Investment (IFI). It is also
known as downstream investment.
No Poverty (SDG 1): India has implemented various poverty alleviation programs, such as the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA), to enhance livelihood opportunities.
Zero Hunger (SDG 2): Schemes like the Public Distribution System (PDS) and the Mid-Day Meal
Scheme have been targeted at reducing hunger and promoting food security.

Good Health and Well-being (SDG 3)

India has focused on improving healthcare infrastructure, launching the Ayushman Bharat program, which
provides health insurance coverage to millions of low-income families.

Quality Education (SDG 4)

The Right to Education Act and digital learning initiatives are examples of efforts to enhance the
accessibility and quality of education.

Gender Equality (SDG 5)

With programs like Beti Bachao, Beti Padhao, India has worked to promote gender equality and empower
women and girls.
Clean Water and Sanitation (SDG 6)
The Swachh Bharat Mission has aimed to improve sanitation and ensure access to clean water.
Affordable and Clean Energy (SDG 7)
India has aggressively pursued renewable energy, setting ambitious targets for solar and wind energy
production.
Decent Work and Economic Growth (SDG 8)
By implementing policies to promote small and medium-sized enterprises (SMEs), India has aimed to
foster economic growth and employment.
Industry, Innovation, and Infrastructure (SDG 9)
Make in India and Start-Up India are examples of efforts to bolster innovation, industrial
development, and infrastructure.
Reduced Inequality (SDG 10)
Various welfare schemes have been targeted at reducing income and social inequality among different
sections of society.
Climate Action (SDG 13)
India's commitment to the Paris Agreement, the National Action Plan on Climate Change (NAPCC),
and the International Solar Alliance demonstrates its proactive stance on climate change mitigation and
adaptation.

Life on Land (SDG 15)

Initiatives like the Green India Mission are aimed at protecting and restoring the country's biodiversity.
Partnerships for the Goals (SDG 17)
India has engaged in various international collaborations and partnerships to achieve the SDGs.
The Sustainable Development Goals (SDG) India Index is a comprehensive measure that tracks the
country's progress towards the 17 SDGs. Developed by the NITI Aayog in collaboration with the United
Nations, the index serves as a monitoring tool and guides the policies of different states and union
territories in India.
Corporate Social Responsibility (CSR) activities refer to the
initiatives taken by companies to contribute to societal,
economic, and environmental development. These actions reflect
a company's commitment to operate in a socially responsible
manner by contributing to the welfare and sustainable
development of the communities where they operate.
Areas of Focus
CSR activities encompass various domains such as:
ü Education
ü Health and Sanitation
ü Environmental Sustainability
ü Skill Development
ü Rural Development
ü Poverty Alleviation
ü Gender Equality
Disaster Relief
Legal Framework in India

The Companies Act, 2013, in India, mandates certain companies to

spend at least 2% of their average net profits on CSR activities.

This law applies to companies with a net worth of INR 500 crore or

more, a turnover of INR 1000 crore or more, or a net profit of INR 5

crore or more.
Which of the following is NOT a part of the 17 SDGs?
(1) Quality Education
(2) Clean Water and Sanitation
(3) Zero Hunger
(4) Combat HIV/AIDS, malaria and other diseases
When was the SDG Index launched by
NITI Aayog?

(1) 2018
(2) 2020
(3) 2015
(4) 2016
What was the score of Kerala, which was at the top
of rankings in the third edition of the SDG index of
NITI Aayog?

(1) 70
(2) 100
(3) 85
(4) 75
State Wise Performance: Kerala retained its
position at the top of the rankings in the third
edition of the index, with a score of 75,
followed by Tamil Nadu and Himachal
Pradesh, both scoring 72.
The Sustainable Development Goals consists
of 17 goals and _______ targets.

(1) 170
(2) 169
(3) 168
(4) 167
The 17 SDGs and 169 targets are part of a
transformative agenda - the 2030 Agenda for
Sustainable Development adopted by 193 Member
States at the UN General Assembly Summit in
September 2015, and which came into effect on 1
January 2016.
Which of the following sections of the
Companies Act 2013 provide legal support for
CSR in India?

(1) 130
(2) 125
(3) 135
(4) 145
The Companies Act, 2013 provides for CSR
under section 135. Thus, it is mandatory for the
companies covered under section 135 to comply
with the CSR provisions in India. Companies are
required to spend a minimum of 2% of their net
profit over the preceding three years as CSR.
Which of the following statements is FALSE about India's First
Five-Year Plan (1951-1956)?
(1) The plan was based on the Harrod-Domar Model.
(2) The plan was successful due to good harvests in the last two
years of the plan.
(3) The plan focussed on the industry
(4) The actual growth achieved during the plan period was more
than the targeted growth.
(3)
ü The actual growth achieved during the plan period was
3.6%, which was higher than the targeted growth of
2.1%.
ü The plan was based on the Harrod-Domar Model.
ü The plan focused on agriculture, price stability, power,
and transport. The plan was successful primarily
because of good harvests in the last two years of the
plan.
ü The objectives of rehabilitating refugees, achieving
food self-sufficiency, and controlling prices were more
or less achieved.
Why were the Three Annual Plans (1966-69) introduced?

(1) To focus on industrial growth

(2) To address the crisis in the agriculture sector

(3) To implement new taxation policies

(4) To reduce the fiscal deficit

(2)
ü The Three Annual Plans (1966-69) was introduced as a
result of the failure of the Third Plan, which had led to a
devaluation of the rupee and an inflationary recession.
ü The focus of these plans was on agriculture, which was
facing a crisis at the time.
ü The government implemented a new agricultural strategy
that involved the distribution of high-yielding varieties of
seeds, extensive use of fertilisers, exploitation of
irrigation potential, and soil conservation.
What is the main difference between the Planning
Commission and NITI Aayog in India?
(1) The Planning Commission was responsible for transfer of
Plan funds to State Govts, whereas NITI Aayog is not.
(2) NITI Aayog aims to foster cooperative federalism with the
States, while the Planning Commission did not.
(3) The Planning Commission had the mandate to formulate
plans for effective utilization of resources, which is not the
case with NITI Aayog.
(4) The Planning Commission was established in 1947,
whereas NITI Aayog was established in 2015.
(2)
Which of the following plan is based on “Prasanta
Chandra Mahalanobis” model ?

(1) First five year plan

(2) Second five year plan
(3) Fourth five year plan
(4) Fifth five year plan
(2)
Rapid Industrialization is the basic objective of
which plan ?
(1) Second Five year plan
(2) Third five year plan
(3) Fourth five year plan
(4) Fifth five year plan
(1)
Planning commission was established as
..............on ................
(1) Non constitutional body, 15 March 1950
(2) Constitutional Body, 15 March 1950
(3) Non Statutory Body, 15 March 1951
(4) Statutory Body, 15 March 1951
(1)
Q. The Five-Year Plan of India focused primarily
on infrastructural investments, with a significant
emphasis on energy, telecommunications, and
transport.

(A) seventh (B) eighth

(C) ninth (D) tenth
(B)
The Eighth Five-Year Plan of India (1992-1997) emphasized
the importance of infrastructural investments. A significant
amount of funding was directed towards energy,
telecommunications, and transport. This plan marked a
departure from the previous strategies and aimed at
strengthening the infrastructure to support rapid
industrialization and economic growth. The Eighth Plan's
approach was pivotal in modernizing India's infrastructural
facilities, which laid the foundation for substantial growth in
the subsequent years.
First Five-Year Plan (1951-1956): Emphasized agriculture and
improving living standards.

Second Five-Year Plan (1956-1961): Known as the Mahalanobis Plan,

it focused on industrialization.

Third Plan (1961-1966): Balanced development of agriculture and industry. Failed to

achieve targets due to wars with China (1962) and Pakistan (1965) and severe drought.

Three Annual Plans (1966-1969): The Five-Year Plan was disrupted due to economic
and political instability.
Fourth Plan (1969-1974): Emphasis on growth with stability and social justice.
Again faced issues due to the war with Pakistan (1971) and the global oil crisis.
Fifth Plan (1974-1979): Poverty alleviation and self- reliance. Introduced
measures like the Minimum Needs Programme but faced challenges in
implementation.
Sixth and Seventh Plans (1980-1985, 1985-1990): Economic stabilization and
increasing productivity in all sectors. Success in agricultural production,
technology, and export promotion.
Eighth Plan (1992-1997): Modernization, growth, and human development.
Post-liberalization era, encouraging private and foreign investment.
Ninth Plan (1997-2002): Social justice and sustainable development.

Emphasis on decentralization and Panchayati Raj institutions.

Tenth and Eleventh Plans (2002-2007, 2007-2012): Economic growth,

human development, and inclusive growth. Progress in sectors like

education, healthcare, and infrastructure.

Twelfth Plan (2012-2017): Faster, sustainable, and more inclusive growth.

The slowdown in the global economy affected the growth targets.

Q. In recent years, the term "Sunrise Sector" has been used
to describe industries that have promising growth potential
and are expected to be the driving forces of economic
growth in the future. Which among the following sectors has
been recognized as a "Sunrise Sector" in the Indian economy
due to its potential to drive exports and employment?

(A) Coal Mining

(B) Information Technology (IT) and IT-enabled Services
(C) Traditional Textiles
(D) Petroleum Refining
(B) Solution:
• The "Sunrise Sector" refers to sectors of the economy
that promise strong growth potential and the capability
to become significant in terms of revenue,
employment, and contribution to the nation's GDP.
• In the context of the Indian economy, the Information
Technology (IT) and IT-enabled Services (ITES) sector
have been termed as a "Sunrise Sector" because of its
rapid growth over the past few decades.
• This sector has not only added significantly to export
earnings but has also provided vast employment
opportunities, especially for the young and educated
population of the country
Q The Reserve Bank of India (RBI) identifies certain
sectors as 'Priority Sectors' to ensure directed credit
flow to these areas. Which of the following is NOT
considered a part of the Priority Sectors by RBI?

(A) Micro, Small and Medium Enterprises (MSMEs)

(B) Export Credit
(C) Real Estate
(D) Agriculture
(C) Solution:
• The Reserve Bank of India (RBI) recognizes various
sectors as 'Priority Sectors' to guarantee that these crucial
areas receive an adequate flow of credit.
• This classification aims to ensure that the vulnerable
sections of society and the sectors that impact large
segments of the population benefit from institutional
credit.
• The sectors include Micro, Small and Medium Enterprises
(MSMEs), Export Credit, Agriculture, and many others.
• Real Estate is NOT considered a part of the Priority
Sectors by the RBI.
Q. The 1991 economic reforms marked a paradigm shift
in the Indian economic policy framework. These reforms
aimed at liberalizing and opening up various sectors of
the economy. Which of the following policy measures was
NOT a part of the 1991 economic reforms in India?

(A) Abolition of the License Raj

(B) Devaluation of the Indian Rupee
(C) Introduction of Goods and Services Tax (GST)
(D) Reduction in import tariffs
(C)
ü The 1991 economic reforms in India, often termed as
the LPG (Liberalization, Privatization, and
Globalization) reforms, brought about major changes
in India's economic policies. Among the key measures
were:
ü Abolition of the License Raj, which ended the need for
industries to obtain permits and licenses for
expanding capacity, entering new areas, and
establishing new ventures.
ü Devaluation of the Indian Rupee to make exports
more competitive and reduce the balance of payments
crisis that India was facing at the time.
ü Reduction in import tariffs to integrate the Indian
economy with the global market and reduce the cost of
imported goods.

ü The introduction of the Goods and Services Tax (GST)

was not a part of the 1991 reforms. GST was
introduced much later, in 2017, to unify the various
indirect taxes into a single tax regime and create a
seamless national market
Q. Foreign Direct Investment (FDI) is an investment made by a
firm or individual in one country into business interests
located in another country. It often takes the form of either
establishing business operations or acquiring business assets
in the foreign country. One of the main benefits of FDIs for the
host country is that it________.

(A) restricts the flow of capital and technology

(B) brings in foreign capital and technology, and can create jobs
(C) increases reliance on import rather than domestic production
(D) diminishes the competition in the local market
(B)

ü FDIs bring in foreign capital and technology, and

can create jobs in the host country.
ü By attracting investment from foreign firms or
individuals, the host country can benefit from an
influx of capital, advanced technology, managerial
expertise, and often, an increase in job
opportunities.
ü These factors can contribute to economic growth
and development in the host country.
The _____ Revolution focused on increasing the production
of _____ and was launched in India in _______.

(a) Green, food grains, 1960s

(b) White, dairy products, 1970s
(c) Green, dairy products, 1960s
(d) White, food grains, 1970s
The Green Revolution focused on increasing the production of food grains

and was launched in India in the 1960s. The Green Revolution in India

started in the 1960s to address the issue of food scarcity. It was focused on

improving the yield of food grain crops, particularly wheat and rice, by

promoting high yielding varieties, expansion of farming areas, double

cropping, and using modern technology and practices, including the use of

fertilizers and pesticides.

Choose the correct statement about the Indian economy;

1. Primary sectors include almost 50% of the total population

2. The primary sector includes Agricultural and Natural
resources

(1) Both 1 and 2 are correct

(2) Only 1 is correct
(3) Only 2 is correct
(4) Quinary sector
The primary sector Indian economy provides the highest employment
the Indian economy. It includes Agricultural and allied activities in
which almost 50% to 60% of the Indian workforce associates. There
are five sectors in the economy as follows.
Primary Sector - raw materials.
Secondary Sector - manufacturing.
Tertiary Sector - services.
Quaternary Sector - knowledge.
Quinary Sector - an extension of the tertiary/quaternary sector.
Choose the correct statement about the Secondary sector of

the Indian economy.

1. It contributes approx 21-26% to the Economy

2. The Industrial sector is part of the secondary sector

(1) Only 1 is correct

(2) Only 2 is correct

(3) Both 1 and 2 are correct

(4) None of the above statements is correct

The secondary sector contributes almost 21-26% of the Indian

GDP. It includes construction and the public utility industries

of electricity, gas, and water textile. Manufacturing is an

important activity for those economies that abandon the labor

force it helps economic growth and development. The are 8

sectors also called core sectors Refinery Products, Electricity,

Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilizers.

Consider the given statement

1. Banking is part of the tertiary sector of the economy

2. The tertiary sector contributes a very less percentage to the
Indian economy Choose the correct statement

(1) Only 1 is correct

(2) Only 2 is correct
(3) Both 1 and 2 is correct
(4) Neither 1 nor 2 is correct
Banking is included in the Tertiary sector. The tertiary sector

contributes almost 50-60 % of the GDP maximum in all

sectors of the economy. The tertiary sector includes Banking,

Communication, and telecom almost all service sectors.

Consider the given statement

1. Banking is part of the tertiary sector of the economy

2. The tertiary sector contributes a very less percentage to the
Indian economy Choose the correct statement

(1) Only 1 is correct

(2) Only 2 is correct
(3) Both 1 and 2 is correct
(4) Neither 1 nor 2 is correct
Banking is included in the Tertiary sector. The tertiary sector

contributes almost 50-60 % of the GDP maximum in all

sectors of the economy. The tertiary sector includes Banking,

Communication, and telecom almost all service sectors.

Arrange the following revolutions in the primary sector in
India in chronological order:

I. Blue Revolution (Fisheries)

II. Green Revolution (Agriculture)
III. White Revolution (Milk/Dairy)
IV. Yellow Revolution (Oil seeds)

(a) II-I-III-IV (b) III-IV-I-II

(c) IV-II-III-I (d) II-III-I-IV
1: Green Revolution (Agriculture) - The first major revolution in the primary
sector in India was the Green Revolution, which took place in the late 1960s and
early 1970s. This revolution aimed at increasing agricultural productivity with
the help of high yielding varieties of seeds, irrigation, and the use of fertilisers
and pesticides.

2: White Revolution (Milk/Dairy) - The next major revolution was the White
Revolution in the 1970s, also known as Operation Flood. It transformed
India from a milk-deficient nation to the world's largest milk producer.

3: Blue Revolution (Fisheries) - The Blue Revolution, aimed at increasing the

production of fish and marine products, began in 1985 till 1990.

4: Yellow Revolution (Oil seeds) - The Yellow Revolution, which launched in

1986-87, focused on increasing the production of oil seeds, particularly mustard
and sunflower.
Fill in the blanks in the given statements:
I. The sunrise sector in the Indian economy signifies industries that
have ____ (a) ____.
II. These sectors show ____(b)____ in terms of revenue and job
opportunities.
III. One of the examples of the sunrise sector in India is ____ (c)
____.
(a) (a):just started(b):slow growth(c):the textile industry
(b) ((a):a promising future(b):rapid growth(c):the IT industry
(c) (a):just started(b):rapid growth(c):the agriculture industry
(d) (a):a promising future(b):slow growth(c):the textile industry
The sunrise sector in the Indian economy signifies industries that have a promising
future. Sunrise sectors are the most promising and dynamic segments of the economy
that are expected to grow significantly in the future. These sectors are characterized by
high growth potential, considerable investments, and cutting-edge technology.
These sectors show rapid growth in terms of revenue and job opportunities. Given their
potential, sunrise sectors often exhibit a high growth rate, resulting in increased revenue
and employment opportunities. They are expected to become key drivers of economic
growth.
One of the examples of the sunrise sector in India is the IT industry. Information
Technology is one of the sunrise sectors in India, witnessing tremendous growth and
contributing significantly to the economy in terms of revenue and job creation. Other
examples could include renewable energy, electric vehicles, biotechnology, etc.,
depending on the time and evolving economic trends.
Q. Which of the following steps did the Reserve Bank of
India (RBI) take as part of its monetary policy response
to the Global Financial Crisis?

(A) Decrease in repo and reverse repo rates

(B) Reduction in cash reserve ratio (CRR)
(C) Conducting open market operations
(D) All of the above
Sol (D).
ü Decrease in repo and reverse repo rates: In response to the global
financial crisis, the RBI reduced both the repo and reverse repo rates.
The repo rate is the rate at which the RBI lends to commercial banks,
and the reverse repo rate is the rate at which it borrows from them.
Decreasing these rates was intended to make borrowing cheaper,
stimulate spending, and hence boost the economy.
ü Reduction in cash reserve ratio (CRR): The RBI also decreased the cash
reserve ratio. The CRR is the minimum proportion of total deposits
that banks are required to keep with the RBI. Reducing the CRR frees
up more resources for banks to lend, thus injecting liquidity into the
economy.
ü Conducting open market operations: Open market operations involve
the purchase and sale of government securities by the central bank.
The RBI conducted open market operations to control liquidity in the
market during the global financial crisis.
What is the FDI limit of the Mining Sector and what is
the entry route?
(1) 26%, Automatic
(2) 100%, Automatic
(3) 26%, Government
(4) 100%, Government
2019 allowing 100% FDI under automatic route
for sale of coal, coal mining activities including
associated processing infrastructure subject to
the provisions of the Coal Mines (Special
Provisions) Act, 2015
Where is the headquarters of the IMF and it
consists of how many member countries?
(1) Washington D.C, USA, 190
(2) Paris, France, 193
(3) Washington D.C, USA, 193
(4) Geneva, Switzerland, 190
After US Dollar & Euro, which of the following
currencies has the largest weightage in determining
the value of SDR (Special Drawing Right)?
(1) Japanese Yen
(2) Chinese Yuan (Renminbi)
(3) British Pound
(4) Indian Rupee
Q. In financial markets, there exists an arrangement where funds
are borrowed and lent for a very short period, usually overnight.
It's typically used by banks to meet short-term liquidity needs. The
interest rate on these funds fluctuates depending on market
conditions, and there are no collateral requirements. This form of
borrowing and lending is known as________.

(A) Term Money (B) Call Money

(C) Demand Money (D) Reserve Money
Sol (B).
• Call Money is an arrangement in financial markets where funds
are borrowed and lent for a very short period, usually
overnight. Banks typically use this to meet short-term liquidity
needs. The interest rate on these funds fluctuates depending on
market conditions and there are no collateral requirements.
• Term Money refers to funds borrowed or lent for a period
greater than a day, but less than a year.
• Demand Money is money that is payable on demand. It is a
liability that a bank must pay when requested by the depositor.
• Reserve Money, also known as high-powered money or
monetary base, is the total amount of money in the economy
available for the multiplication of loans and investments by
banks. It consists of currency (notes and coins) in circulation
and reserves (deposits) held by commercial banks at the central
bank.
Q. The reform of the banking sector in India between 1992-
2008 was a critical phase in transforming the banking
landscape in the country. This period saw significant
changes like the introduction of prudential norms,
improvement in technology, and efforts to increase
transparency and competition. One of the pivotal reforms
during this period was the implementation of the Basel
Accords, which primarily aimed to _____.

(A) increase the gold reserves of the central bank

(B) encourage the merger of small banks
(C) enhance the quality and stability of the financial
system
(D) regulate the foreign exchange market
(C)
The implementation of the Basel Accords during the
reform of the banking sector in India between 1992-2008
aimed to enhance the quality and stability of the
financial system.

ü The Basel Accords are international regulatory

frameworks developed by the Basel Committee on
Banking Supervision to ensure that financial
institutions maintain enough capital reserves to
absorb unexpected losses.

ü By implementing these standards, the goal was to

strengthen the resilience and stability of the banking
system, thereby fostering a more robust and
transparent financial environment.
Q. Local Area Banks (LABs) are small-sized banks in
India that operate within a specified geographic area,
usually covering two or three contiguous districts. The
main objective of introducing LABs was to
_______.

(A) compete with international banks on a global scale

(B) provide banking services exclusively to large
corporations
(C) promote stock market investments
(D) enhance financial inclusion by extending banking
services in underbanked and unbanked areas
(D)
The main objective of introducing Local Area Banks
(LABs) in India was to enhance financial inclusion by
extending banking services in underbanked and
unbanked areas.
ü These small-sized banks focus on meeting the
financial needs of the local population, especially in
rural and semi-urban regions.
ü By providing services like savings, credit, and other
banking facilities to people who may have limited
access to conventional banking, LABs play a significant
role in promoting financial inclusion and economic
development in the areas they serve.
Q. Development Financial Institutions (DFIs) are specialized
institutions that provide financial support for economic
development, primarily in the industrial, infrastructure,
and agricultural sectors. One of the main objectives of
DFIs is to ______.

(A) prioritize profit maximization over social and economic

development
(B) promote and finance projects that contribute to
economic growth and development
(C) exclusively invest in high-risk financial markets
(D) focus solely on short-term lending without regard to
developmental impact
(B)
• One of the main objectives of Development Financial
Institutions (DFIs) is to promote and finance projects
that contribute to economic growth and development.
• DFIs play a crucial role in providing funds for large-
scale projects that can drive economic development,
particularly in emerging markets and less-developed
regions.
• They often support sectors that are vital for social and
economic progress but might be underserved by
conventional commercial banks. DFIs may also
consider social and environmental factors in their
investment decisions, aiming to foster sustainable
growth.
Q. "Bad Banks" refer to a financial entity that is created
to buy and hold non-performing assets (NPAs) from other
financial institutions. The primary purpose of a bad bank
is to____.

(A) generate immediate profits for shareholders

(B) invest in high-risk financial markets
(C) segregate and manage toxic assets, improving the
selling bank's balance sheet
(D) provide traditional banking services to individual
customers
(C) Solution:
• The primary purpose of a bad bank is to segregate and
manage toxic assets, improving the selling bank's
balance sheet.

• By purchasing non-performing assets (NPAs) from

other financial institutions, a bad bank isolates these
problematic assets, allowing the selling bank to clear
them off its balance sheet.

• The bad bank itself may work on restructuring or

liquidating the toxic assets to recover as much value
as possible.
Q. The EASE (Enhanced Access and Service Excellence) agenda
was launched by the__________in__________with an aim to__________.

(A) Reserve Bank of India, 2018, facilitate the role of Public

Sector Banks in the Indian economy
(B) Government of India, 2018, facilitate the role of Public
Sector Banks in the Indian economy
(C) Reserve Bank of India, 2019, discourage the role of
Public Sector Banks in the Indian economy
(D) Government of India, 2019, discourage the role of Public
Sector Banks in the Indian economy
Sol (B).
The EASE (Enhanced Access and Service Excellence) agenda was launched by the
Government of India in 2018 with an aim to facilitate the role of Public Sector
Banks in the Indian economy. The EASE agenda is a reform initiative for Public
Sector Banks (PSBs) with the objective of institutionalising clean and smart
banking. It was launched by the Government of India's Department of Financial
Services (DFS) to strengthen PSBs and to improve their performance. The aim is
to enhance access and service excellence by improving the customer experience,
leveraging FinTech (Financial Technology), boosting credit off- take, and
deepening financial inclusion.
Q. The Banking Regulation Act, which governs the
operation of banks in India, was passed in the year
_______ and the amendments made in _______ extended its
provisions to cooperative banks.

(1) 1949, 1965 (2) 1955, 1966

(3) 1949, 1966 (4) 1955, 1965
Solution (3)
● The Banking Regulation Act, which governs the
operation of banks in India, was passed in the year
1949 and the amendments made in 1966 extended its
provisions to cooperative banks.
● The Banking Regulation Act was initially enacted in
1949 in India to consolidate and amend the law
relating to banking.
● The Act provides a framework for the supervision
and regulation of banking companies by the Reserve
Bank of India.
● The Act was later amended in 1966 to include
cooperative banks under its purview, which was aimed
at providing the same level of regulatory framework to
cooperative banks as is applicable to commercial
banks.
Q. Arrange the following events in the chronological
order they took place in the history of economic
planning:

I. Formulation of the first Five-Year Plan

II. Introduction of mixed economy concept in India
III. Establishment of the Planning Commission
IV. Introduction of economic liberalization and
market-based economy
V. Transition from agricultural to industrial focus in
economic planning

(1) II-I-III-V-IV (2) IV-V-II-I-III

(3) II-III-I-V-IV (4) I-IV-II-III-V
Solution (3)
I: Introduction of mixed economy concept in India - India adopted
the mixed economy concept soon after independence, which
combined features of both capitalist and socialist economies.
II: Establishment of the Planning Commission - To facilitate
economic planning, the Planning Commission was established in
1950. It was entrusted with the responsibility of formulating Five-
Year Plans for economic development.
III: Formulation of the first Five-Year Plan - The first Five-Year Plan
was formulated by the Planning Commission in 1951, focusing on
the development of the agricultural sector.
IV: Transition from agricultural to industrial focus in economic
planning - Subsequent Five-Year Plans gradually shifted focus from
agricultural development to industrialization to achieve balanced
economic growth.
V: Introduction of economic liberalization and market-based
economy - The economic crisis of 1991 led to the introduction of
economic liberalization and a transition towards a more market-
based economy, significantly altering the course of economic
planning in India
Q. Which of the following activities is most closely
associated with the Quinary sector of the economy?

(1) Agricultural farming

(2) Automobile manufacturing
(3) Data processing
(4) High-level decision making
Quaternary Sector Role

Information and Knowledge Services: Includes IT, research,

consultancy, etc.
Technological Advancement: Focus on innovation and
technological development.

Importance
Knowledge Economy: Drives the modern knowledge- based
economy.
Global Competitiveness: Helps in building a competitive edge
in the global market.
Quinary Sector Role
High-level Decision Making: Includes top executives,
legislators, non-profit organizers, etc.
Human Services: Focus on human health, education, culture,
and scientific research.

Importance
Strategic Management: Governs and guides other sectors.
Human Development: Focuses on services that improve human
well-being.
Q. Match the following correctly:

1. Economic A. Quantitative measure, focuses on the

Development Gross Domestic Product (GDP)
2. Economic B. Qualitative measure, concerned with the
Growth overall well-being of citizens
3. Development C. Broad-based, encompasses quality of
life, poverty reduction, literacy, etc.
4. Growth D. Narrow in scope, primarily concerned
with increase in a country’s output

(1) 1-B, 2-A, 3-C, 4-D (2) 1-A, 2-D, 3-B, 4-C
(3) 1-C, 2-B, 3-D, 4-A (4) 1-D, 2-C, 3-A, 4-B
Solution (1)
The correctly matched table is as follows:
1. Economic B. Qualitative measure, concerned with the
Development overall well-being of citizens

2. Economic A. Quantitative measure, focuses on the Gross

Growth Domestic Product (GDP)s

3. C. Broad-based, encompasses quality of

Develop life, poverty reduction, literacy, etc.
ment
4. Growth D. Narrow in scope, primarily concerned with
increase in a country’s output
Q. The _______ is a regional economic
cooperation established in _______.

(1) ASEAN, 1967

(2) EU, 1957
(3) NAFTA, 1994
(4) APEC, 1989
Solution (1)
● The ASEAN is a regional economic cooperation
established in 1967.
● The Association of Southeast Asian Nations (ASEAN)
is a regional intergovernmental organization
comprising ten countries in Southeast Asia, which
promotes intergovernmental cooperation and
facilitates economic, political, security, military,
educational, and sociocultural integration among its
members and other countries in Asia.
● The member countries are Indonesia, Malaysia,
Philippines, Singapore, Thailand, Brunei, Laos,
Myanmar, Cambodia, and Vietnam.
Q. Which of the following sources of financing has
been significant for India's Five-Year Plans?

(1) Foreign Direct Investment (FDI)

(2) Disinvestment proceeds
(3) Market borrowing
(4) Donations from private individuals
Solution (3)
(1) Foreign Direct Investment (FDI): While FDI has been
an important part of India's economic strategy and has
helped in its development, it has not been a primary
source of funding for the Five-Year Plans.
(2) Disinvestment Proceeds: Although disinvestment
proceeds have occasionally contributed to the
government's resources, they have not been a steady or
significant source of financing for the Five-Year Plans.
(3) Market Borrowing: Market borrowing was a primary
source of funding for India's Five-Year Plans. The
government borrows from the domestic market through
the issuance of government securities (such as bonds).
(4) Donations from Private Individuals: Donations from
private individuals do not make up a significant portion of
the funding for the Five-Year Plans.
Q. Arrange the following types of economic planning
based on the level of government control from the
least to the most:
I. Indicative Planning
II. Directive Planning
III. Market Economy
IV. Mixed Economy

(1) III-I-IV-II
(2) I-III-IV-II
(3) II-I-III-IV
(4) IV-II-I-III
Solution (1)
1. Market Economy - In a market economy, economic
decisions and the pricing of goods and services are
guided by the interactions of a country's individual
citizens and businesses. There's minimal government
control or planning.
2. Indicative Planning - In this type of planning, the
government sets broad objectives and policies for the
economy but leaves market forces to decide how to
achieve these objectives. There's some level of
government intervention but less than in a mixed
economy.
3. Mixed Economy - A mixed economy combines market
and command economy elements. The government has
some control over the allocation of resources and
societal welfare but also allows market forces to
operate.
4. Directive Planning - Also known as a command or
centrally planned economy, high levels of government
control characterize directive planning. The
government decides what to produce, how much to
produce, and where to allocate resources.
Q. Which revolution in the primary sector was
primarily focused on the development and growth of
fish production?

(1) Green Revolution (2) White Revolution

(3) Blue Revolution (4) Golden Revolution
Solution (3)
(1) Green Revolution: This was a set of research
technology transfer initiatives that happened between
the 1930s and the late 1960s, increasing agricultural
production worldwide, particularly in developing
countries. In India, it specifically refers to the
increased production of food grains due to the use of
high-yielding variety seeds, especially in wheat and
rice.
(2) White Revolution: This initiative in India
transformed the country from a milk-deficient nation
into the world's largest milk producer, surpassing the
USA in 1998. It was achieved by creating a nationwide
milk grid.
(3) Blue Revolution: This revolution refers to the
period of intense growth in the worldwide aquaculture
industry from the mid-20th century onwards. In the
context of India, it refers to the increase in the
production of fish and marine products.

(4) Golden Revolution: The period between 1991 and

2003 is called the Golden Revolution in India. It is
associated with rapid growth in the horticulture sector,
including fruits, vegetables, tuber crops, flowers, etc.
Q. Which of the following statement(s) is incorrect about
Organised and Unorganised sectors in an economy?
I: The organised sector generally includes those
enterprises or places of work where the terms of
employment are regular and assured for the workers.
II: The unorganised sector is characterised by small and
scattered units, largely outside government regulations'
control.
III: Workers in the unorganised sector enjoy the same
benefits as those in the organised sector, such as pensions
and paid leaves.
IV: The unorganised sector, despite its size, contributes
a smaller proportion to the national income compared to
the organised sector.
(1) Only I (2) Only III
(3) Both I and II (4) Both III and IV
Solution (2)
• Statement I. is correct. The organised sector is
characterised by certain terms of employment being
regular and assured for the workers. This includes jobs
with security and benefits provided to the workers.
• Statement II. is correct. The unorganised sector comprises
small and scattered units, which are largely beyond the
reach of government regulation.
• Statement III. is incorrect. Workers in the unorganised
sector often do not enjoy the same benefits as those in the
organised sector. They are usually subject to irregular and
low pay, and lack job security and benefits like pensions
and paid leaves.
• Statement IV. is correct. In many economies, the
unorganised sector, despite often being larger in terms of
employment, contributes a smaller proportion to the
national income compared to the organised sector due to
lower productivity and scale of operations.
ORGANISED AND UNORGANISED SECTORS
Q. Which of the following sectors was not directly
targeted for relief and reforms in India's
Atmanirbhar Bharat package?

(1) MSMEs
(2) Agriculture and allied activities
(3) Telecom
(4) Migrant Workers
Solution (3)
(1) MSMEs: The package included several measures for
the Micro, Small, and Medium Enterprises (MSME)
sector, including collateral-free loans and changes in the
definition of MSMEs to enable more firms to benefit
from government schemes.
(2) Agriculture and Allied Activities: The package also
introduced measures to strengthen infrastructure
logistics and capacity building in the agriculture sector,
including financing facility for funding Agriculture
Infrastructure Projects at the farm-gate & aggregation
points.
(3) Telecom: The Atmanirbhar Bharat package did not
specifically target the telecom sector with relief
measures or reforms.
(4) Migrant Workers: The package addressed the
challenges faced by migrant workers due to the
pandemic, including provisions for affordable rental
housing, increased funding for the rural employment
guarantee scheme, and food security.
Q. Which of the following is not typically involved in the
real sector transformation of an economy?

(1) Transition from agriculture to manufacturing and

services
(2) Increased digitalization and technological
innovation
(3) Development of social welfare programs
(4) Infrastructure development
Solution (3)

Development of social welfare programs: While

important for the overall well-being and stability of an
economy, the development of social welfare programs is
not typically associated with the transformation of the
real sector of the economy.
Q. Which of the following statements is not true regarding
India's relationship with the World Trade Organization
(WTO)?

(1) India is one of the founding members of the WTO.

(2) India has never resorted to the WTO's dispute
resolution mechanism.
(3) India has advocated for the rights of developing
nations within the WTO.
(4) India has raised concerns about agricultural
subsidies in developed nations at the WTO.
Solution (2)
(1) India is one of the founding members of the WTO:
This is true. India has been a member of the WTO since
the organization's establishment on January 1, 1995.
(2) India has never resorted to the WTO's dispute
resolution mechanism: This is false. India has been
active in the WTO's dispute settlement system and has
initiated numerous disputes against other member
nations.
(3) India has been an advocate for the rights of
developing nations within the WTO: This is true. India
has consistently pushed for the interests of developing
nations within the WTO, particularly on issues like
agricultural subsidies and access to affordable
medicines.
Q. Arrange the following steps in the process of forming
and implementing a Regional Economic Cooperation:
I. Decision on the Level of Integration
II. Signing of an Agreement
III. Identifying Common Economic Goals
IV. Implementation of Policies
V. Drafting of Policies and Procedures
VI. Negotiations among Countries

(1) III-VI-II-I-V-IV (2) I-II-III-VI-IV-V

(3) VI-III-I-V-II-IV (4) IV-VI-I-II-III-V
Solution (1)
Step 1: Identifying Common Economic Goals - The first step
in forming regional economic cooperation is identifying
common economic goals that all member countries wish to
achieve.
Step 2: Negotiations among Countries - After identifying
common economic goals, negotiations among the
countries are held to determine how these goals can be
achieved, what the terms of cooperation will be, and how
disputes will be settled.
Step 3: Signing of an Agreement - Once the negotiations are
complete, an agreement is signed by all the countries. This
agreement outlines the objectives of the cooperation and
how it will be achieved.
Step 4: Decision on the Level of Integration - This decision
could range from a free trade area, to a customs union,
common market, economic union, or complete economic
integration.
Step 5: Drafting of Policies and Procedures - The policies
and procedures for implementing the regional economic
cooperation are then drafted. These policies and
procedures lay out how the cooperation will be managed
and how it will function.
Step 6: Implementation of Policies - Finally, the policies are
implemented. This involves each member country taking
the necessary actions to meet the objectives of the
cooperation.
Which scheme has been added as an additional scheme eligible
to claim benefits under the Export Promotion of Capital Goods
(EPCG) Scheme under FTP 2023?

(1) Prime Minister Mega Integrated Textile Region and Apparel

Parks (PM MITRA) scheme
(2) Common Service Provider (CSP) Scheme
(3) Dairy Sector Upgradation Scheme
(4) Green Technology Development Scheme
Prime Minister Mega Integrated Textile Region
and Apparel Parks (PM MITRA) scheme has been
added as an additional scheme eligible to claim
benefits under CSP(Common Service Provider)
Scheme of Export Promotion capital Goods
Scheme(EPCG).
Which of the following is/are the key pillar(s) of the Foreign
Trade Policy (2023)?

(A) Incentive to Remission

(B) Export promotion through collaboration -
Exporters, States, Districts, Indian Missions
(C) Ease of doing business, reduction in transaction cost and
e-initiatives

(1) Only B and C

(2) Only C
(3) Only A and C
(4) All of the above
The policy is built on the principles of trust and
partnership with exporters and is based on four
pillars: Incentive to Remission, Export Promotion
through Collaboration, Ease of Doing Business,
and Emerging Areas.
The special one-time Amnesty Scheme introduced under the

FTP 2023 is aimed at addressing default on__________.

(1) Import duties

(2) Export Obligations

(3) Income tax liabilities

(4) Custom duty exemptions

2

The new FTP is introducing a one-time Amnesty

Scheme for exporters to close the old pending
authorizations and start afresh. The FTP 2023
encourages recognition of new towns through
“Towns of Export Excellence Scheme” and exporters
through “Status Holder Scheme”.
Which of the following statements is/are TRUE regarding the Foreign Trade Policy
(2023)?
(A) The policy aims at process re-engineering and automation for exporters.
(B) The policy introduces a one-time Amnesty Scheme for importers to close the old
pending authorizations and start afresh.
(C) The policy encourages collaboration with Indian Missions for export promotion.
(1) Only A
(2) Only C
(3) Only A and C
(4) All of the above
What is the main difference between Foreign Direct Investment (FDI) and
Foreign Portfolio Investment (FPI)?

(1) FDI involves investment in unlisted Indian company, while FPI involves
investment in a listed Indian company.
(2) FDI requires a minimum investment of 10% of the post issue paid-up
equity capital, while FPI does not have a minimum investment requirement.
(3) FDI can only be made by individuals, while FPI can be made by
individuals and entities.
(4) FDI is repatriable, while FPI is non- repatriable.
What is meant by "downstream investment"?

(1) Investment made by an Indian entity in another Indian entity.

(2) Investment made by a foreign entity in a foreign company.
(3) Investment made by a foreign entity in an Indian company.
(4) Investment made by an Indian entity in a foreign company.
1

Investment by an Indian company (which is owned or

controlled by foreigners) into another Indian entity is
considered as Indirect Foreign Investment (IFI). It is also
known as downstream investment.
Q. Which of the following is not a key measure taken by
India in its progress toward the Sustainable Development
Goals (SDGs)?

(1) The Pradhan Mantri Jan Dhan Yojana for financial

inclusion
(2) The Swachh Bharat Abhiyan for sanitation and
hygiene
(3) The Rashtriya Swasthya Bima Yojana for universal
health coverage
(4) The Pradhan Mantri Vyapari Maan-Dhan Yojana for
climate change mitigation
Solution (4)
(1) The Pradhan Mantri Jan Dhan Yojana for financial
inclusion: This aligns with SDG 1 (No Poverty) and SDG 8
(Decent Work and Economic Growth) by expanding access to
financial services.
(2) The Swachh Bharat Abhiyan for sanitation and hygiene:
This supports SDG 6 (Clean Water and Sanitation) by aiming to
provide access to sanitation facilities across the country.
(3) The Rashtriya Swasthya Bima Yojana for universal health
coverage: This is aligned with SDG 3 (Good Health and Well-
being) by aiming to provide health insurance to the poor.
(4) The Pradhan Mantri Vyapari Maan-dhan Yojana for climate
change mitigation: This is a pension scheme for traders and
self-employed individuals, which does not directly address
any climate change mitigation measures or align directly with
SDG 13 (Climate Action).
Q. Which of the following services is NOT permitted to be
provided by Payment Banks in India?

(1) Offering forex services at customer locations.

(2) Issuing credit cards.
(3) Offering mobile banking services.
(4) Providing remittance services.
Solution (2)
(1) Offering forex services at customer locations:
Payment banks can indeed offer forex services to their
customers.
(2) Issuing credit cards: According to the guidelines by
RBI, Payment banks are not allowed to issue credit cards
to their customers.
(3) Offering mobile banking services: Payment banks
are primarily established to increase financial inclusion
by providing small savings accounts and remittance
services to migrant labourers, low-income households,
and small businesses. Therefore, offering mobile banking
services is one of the main operations of these banks.
(4) Providing remittance services: This is one of the
core functions of a Payment bank.
Q. Which of the following statement(s) is incorrect
about Commercial Paper?
I: Commercial Paper is a type of unsecured, short-
term debt instrument issued by corporations.
II: Commercial Paper can have maturities ranging up
to 364 days.
III: Commercial Paper is typically backed by physical
assets such as real estate or commodities.
IV: Commercial Paper is generally used for funding
short-term liabilities, such as accounts payables and
inventories.

(1) Only II (2) Only III

(3) Both I and II (4) Both II and IV
Solution (2)

Commercial Paper is an unsecured form of promissory

note that pays a fixed rate of interest. It is typically issued
by large corporations to raise money to meet short-term
debt obligations. It's not backed by collateral, such as
physical assets like real estate or commodities.
Fill in the blanks in the given statements:
I. Protectionism, which is the opposite of globalization, involves (a).
II. The re-emergence of protectionism may lead to (b) in global trade.
III. One of the ways countries exercise protectionism is through the
imposition of (c).
(a) (a): promoting free trade (b): an increase (c): lower tariffs
(b) (a): imposing trade barriers (b): a decrease (c): higher tariffs
(c) (a): promoting free trade (b): a decrease (c): higher tariffs
(d) (a): imposing trade barriers (b): an increase (c): lower tariffs
Protectionism, which is the opposite of globalization, involves imposing trade barriers.
Protectionism refers to the economic policy of restraining trade between nations through
methods such as tariffs on imported goods, restrictive quotas, and other government regulations
designed to discourage imports and protect domestic industries from foreign competition.
The re-emergence of protectionism may lead to a decrease in global trade. When countries start
retaliation from other nations, resulting in a global trend towards decreased free trade. This can
cause a reduction in global trade volumes, potentially leading to lower economic growth
worldwide.
One of the ways countries exercise protectionism is through the imposition of higher tariffs.
Tariffs are taxes imposed on imported goods, which are used to make imported goods more
expensive and less competitive than domestically produced goods. This is a common form of
protectionism designed to protect local industries from foreign competition.
Which of the following options correctly defines the term
globalisation?
(1) A rise in economic integration among nations
(2) The development towards restricted cross- border flows of
goods and services, capital, and labour force
(3) The reduction in economic integration among nations
(4) The concept of reducing international trade barriers
What is one positive impact of globalisation on India's economy?

(1) Increased poverty and inequality

(2) Increased barriers to trade with other nations

(3) Increased foreign investment and export opportunities

(4) Increased reliance on domestic production and consumption

Consider the following statement regarding how has
globalisation impacted India? Identify the correct Statement.
a. Increased competition in the domestic market
b. Improved access to foreign technology and capital
c. Encouraged protectionism and economic isolationism
Created opportunities for Indian businesses to expand globally

1) a, b and c
(2) b, c and d
(3) a, b and d
(4) a, b, c, d
This relaxation of government regulations and reduction of trade barriers

to promote free market activity is also known as ________.

(a) Structural Adjustment (b) Economic Liberalization

(c) Economic Privatization (d) Market Socialism

Economic Liberalization refers to a relaxation of
government regulations and reduction of trade
barriers, allowing for increased participation of
private entities in the economy.
The economic reforms in India, known as the ____ reforms,
marked a paradigm shift from a _____ economy to a _____
economy, and they were initiated in the year _______.

(a) LPG, closed, open, 1991

(b) GDP, open, closed, 2001
(c) LPG, open, closed, 1991
(d) GDP, closed, open, 2001
The economic reforms in India, known as the LPG reforms, marked a paradigm shift
from a closed economy to an open economy, and they were initiated in the year
1991. In response to a major balance-of payments crisis, India embarked on a series
of economic reforms in 1991, referred to as the Liberalization, Privatization, and
Globalization (LPG) model. Liberalization involved the removal or reduction of
restrictions or barriers on the free exchange of goods and services. Privatization
involved the transfer of ownership, control, and management of government-owned
or public sector entities to the private sector. Globalization involved the integration
of the country’s economy with the world economy. These reforms marked a
significant shift from a largely closed and centrally planned economy to an open and
market-led economy, aiming to enhance efficiency, boost growth, and make India a
globally competitive economy.
Economic reforms are fundamental changes in economic policies that
are aimed at improving the efficiency and effectiveness of an economy.
They can take various forms, such as liberalization, privatization,
globalization, or structural reforms.

Which of the following is NOT typically considered a component of

broad economic reforms?

(a) Removal of trade barriers and encouragement of international trade

(b) Deregulation of industries and reduction of government interference
(c) Implementation of stringent environmental regulations
(d) Privatization of state-owned enterprises
Implementation of stringent environmental regulations might be
part of a broader governance strategy, but it doesn't align with
the usual objectives of economic reforms, such as increasing
market efficiency, promoting competition, and reducing
government intervention in the economy.
Which of the following statement(s) is incorrect in the context of
the Banking Reforms and Policies in India?

I. The Narasimham Committee was formed in the early 1980s

to address the issues of the financial system in India.
II. Basel III norms in India are aimed to strengthen the
regulation, supervision, and risk management of banks.
III. The Insolvency and Bankruptcy Code (IBC) was enacted in
India in 2016 to address insolvency and bankruptcy issues.
IV. The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to
provide accessible and affordable housing to all Indians.

(a) I & II (b) II & III

(c) I & IV (d) III & IV
I. The Narasimham Committee was formed in the arly 1990s, not the
1980s, to address the issues of the financial system in India. This
committee laid down significant suggestions for financial sector
reforms.
II. Basel III norms indeed aim to strengthen the regulation,
supervision, and risk management of banks, so this statement is
correct.
III. The Insolvency and Bankruptcy Code (IBC) was indeed enacted
in India in 2016 to resolve insolvencies in a time-bound manner, so
this statement is also correct.
IV. The Pradhan Mantri Jan Dhan Yojana (PMJDY) is aimed at
ensuring access to various financial services like banking, savings
and deposit accounts, remittance, credit, insurance, and pension in an
affordable manner, not housing. Therefore, this statement is incorrect.
When was the concept of globalisation formally
introduced in India?

(1) 1985-86
(2) 1990-91
(3) 1991-92
(4) 1995-96
How did the Balance of Payment Crisis affect bank rates?

(1) They remained unchanged

(2) They decreased significantly
(3) They were lowered to attract investors
(4) They were raised
Which of the following were objectives of the New Economic Policy (NEP) introduced
in India in 1991?

(A) Increase government control over the economy.

(B) Restrict the flow of goods and services across international borders.
(C) Stabilize the economy and remove unnecessary restrictions.
(D) Decrease the growth rate of the economy to address imbalances.
(E) Reduce the reserved sectors for government intervention.

(1) Only A and B (2) Only C and E

(3) Only B and E (4) Only A and D

What was one of the negative impacts of the economic

reforms on the agricultural sector?

(1) Decrease in mechanization

(2) Increase in food grain production

(3) Decrease in workforce

(4) Stagnation of agricultural growth

Which one of the following is a positive impact of the
economic reforms in India?

(1) Decrease in foreign investment

(2) Decrease in foreign exchange reserves
(3) Increase in agricultural growth
(4) Increase in the service sector growth
Q. India's export trade is facilitated by the _______________,
which functions under the _______________.

A. The Ministry of Commerce and Industries of the Indian

government, also known as the Reserve Bank of India (RBI).
B. The Reserve Bank of India (RBI), the Indian government, and
the ministry of finance.
C. The Directorate General of Foreign Trade (DGFT), is part of the
Ministry of Commerce and Industry in the government of India.
D. Ministry of Finance, Government of India's Directorate
General of Foreign Trade (DGFT).
Ø A government organization called the Directorate General of
Foreign Trade (DGFT) is in authority of creating and
executing India's foreign trade policies.
Ø It is regulated the Ministry of Commerce and Industry. The
DGFT is the authority of notifying the procedures that must
be followed for export commerce in India. It is necessary for
promoting and controlling the nation's trade-related
activities abroad.
Q. Which of the following is /(are) advantage of the exporters' Gold Card Scheme?
A. A stand-by limit of at least 20% of the assessed limit is made available to help with
sudden orders that require urgent credit.
B. Banks may consider waiver of collaterals and exemption from ECGC insurance and
waiving collateral requirements based on the creditworthiness and track record of the
cardholder.
C. The applicable interest rate under the Gold Card Scheme will not be higher than the
bank's standard rate for export credit.
D. The issuing banks may decide to provide customers the option of adding more value
to their cards through supplemental services including ATM, Internet banking, and
international debit/credit cards.

A. A and B.
B. A, B and C.
C. A and C.
D. A, B ,C and D.
Ø The ability to further enhance the value of their cards through
supplemental services like ATMs, Internet banking, and
international debit/credit cards is not included in the Gold Card
Scheme. This is so that exporters can receive financing more
easily and effectively; the Gold Card Scheme is not intended to
offer additional banking services.
Ø A stand-by limit of at least 20% of the assessed limit may also
be made available to help with sudden orders that require
urgent credit. and can be used to meet immediate credit
demands.
Ø The relaxation of collateral requirements and exclusion from
ECGC insurance can lower the cost of financing for exporters.
Ø The interest rate cap makes sure that exporters don't overpay
for financing.
Q. Under the Export Bill Rediscounting (EBR) plan, Pre-
shipment Credit may last for a maximum of:

A. 30 days
B. 60 days
C. 90 days
D. 180 days
Ø Under the EBR program, Pre-shipment Credit may last up to
90 days. This indicates that the exporter may only borrow
money from the bank up to 90 days before the shipment of
the products.
Ø A large number of exporters need this length of time to find
raw materials, manufacture goods, and prepare the
products for transportation. The length of the maximum
Pre-shipment Credit period permitted by the EBR system is
90 days.
Ø If an exporter were permitted to borrow money for an
extended amount of time, the risk would rise and it would
be difficult for them to repay the loan.
When was the SDG Index launched by
NITI Aayog?

(1) 2018
(2) 2020
(3) 2015
(4) 2016
What was the score of Kerala, which was at the top
of rankings in the third edition of the SDG index of
NITI Aayog?

(1) 70
(2) 100
(3) 85
(4) 75
State Wise Performance: Kerala retained its
position at the top of the rankings in the third
edition of the index, with a score of 75,
followed by Tamil Nadu and Himachal
Pradesh, both scoring 72.
The Sustainable Development Goals consists
of 17 goals and _______ targets.

(1) 170
(2) 169
(3) 168
(4) 167
The 17 SDGs and 169 targets are part of a
transformative agenda - the 2030 Agenda for
Sustainable Development adopted by 193 Member
States at the UN General Assembly Summit in
September 2015, and which came into effect on 1
January 2016.
Which of the following sections of the
Companies Act 2013 provide legal support for
CSR in India?

(1) 130
(2) 125
(3) 135
(4) 145
The Companies Act, 2013 provides for CSR
under section 135. Thus, it is mandatory for the
companies covered under section 135 to comply
with the CSR provisions in India. Companies are
required to spend a minimum of 2% of their net
profit over the preceding three years as CSR.
Which of the following does not belong to the list of priority
sectors identified in India?

i) MSME
ii) Education
iii) Health
iv) Agriculture

A. Only (iii)
B. Only (ii)
C. (i) & (ii)
D. (iii) & (iv)
ANS: A
The list of priority sectors recognised in India are:
1. Micro, Small and Medium Enterprises
2. Agriculture
3. Education
4. Housing
5. Export Credit
6. Social Infrastructure
7. Renewable Energy
8. Others
Thus, Health is not a part of the priority sector.
When was the first Narasimham Committee appointed?

a. 1997

b. 2000

c. 1990

d. 1991
ANS: D

The government realised that there was a need for an

efficient banking system for the economic development of
India. To realise the same, Dr. Manmohan Singh
established the Committee on Financial System in 1991
under the chairmanship of Maidavolu Narasimham, who
was the 13th governor of the RBI.

The report was introduced in the same year in the

parliament.
The value of the SDR is calculated from a weighted
basket of how many currencies?

A. 3
B. 2
C. 4
D. 5
ANS: D
The SDR, or the Special Drawing Right, is calculated on the basis of the
weighted basket of five major currencies. They are;
1. U.S. dollar
2. Euro
3. Japanese Yen
4. Chinese Yuan
5. British Pound
Special drawing rights (SDR) are a type of international reserve currency
that was created by the International Monetary Fund (IMF) in 1969. They
are used by member countries to add to their current money reserves.
Concerns about the limits of gold and dollars as the only way to settle
international accounts led to the creation of SDRs. SDRs increase
international liquidity by adding to the standard reserve currencies.
Q. The IRDAI, or the Insurance Regulatory and
Development Authority of India, was set up under the
recommendations of which of the following committees?

A. Narasimham Committee
B. Raghuram Rajan Committee
C. Kelkar Committee
D. Malhotra Committee
ANS: D
• In 1993, R.N. Malhotra, former Governor of the Reserve Bank of India, was
put in charge of a committee aimed to look into ways to improve the
insurance industry.
• The Malhotra Committee suggested that the insurance sector adopt the idea
of "professionalisation" to make a strong case for letting foreign capital in.
• In the report it sent to the government in 1994, the group suggested:
üInsurance should also be open to private companies.
üForeign companies should be able to get into the insurance business, ideally
in partnership with Indian companies.
üThe Insurance Regulatory and Development Authority (IRDA) should be set
up as an independent body to oversee the insurance industry and help it
grow.
Q. Which of the following types of FDI can be best described
through the following definition?
“It is a type of FDI when companies set up or grow their business
operations overseas from scratch, creating brand new jobs
and/or facilities.”

A. Brownfield FDI
B. Joint Venture
C. Greenfield FDI
D. None of the above
ANS: C

FDI can be broadly classified into the following three categories:

ü Greenfield FDI: When companies set up their subsidiaries in another

country and build operations from scratch.

ü Brownfield FDI: When MNCs buy stock of firms and companies already
established in the host country.

ü Joint Venture: When a foreign company and local company join hands
to share technology, investment and profits.
The World Bank Group consists of how many
institutions?

A. 2
B. 3
C. 4
D. 5
ANS: D
There are five institutions that are a part of the World Bank Group. They are:

1. IBRD, which stands for International Bank for Reconstruction and

Development, gives out loans, credits, and funds.
2. Low-income countries can get loans from the International
Development Association (IDA) at low or no interest.
3. The International Finance Corporation (IFC) helps businesses and
governments make investments, get advice, and manage their assets.
4. The Multilateral Guarantee Agency (MIGA) protects investors and
loans from political risks like war.
5. The International Centre for the Settlement of Investment Disputes
(ICSID) helps investors and governments work out their differences
over investments.
Q. The Sustainable Development Goals are a collection
of _______ interlinked objectives designed by the UN.

A. 17
B. 16
C. 18
D. 19
ANS: A
The UN designed 17 Sustainable Development Goals with 169 targets and 304 indicators
that have to be achieved by 2030. They are:
1. No Poverty
2. Zero Hunger 1. Sustainable Cities and Communities
2. Responsible Consumption and Production
3. Good Health and Well-being
3. Climate Action
4. Quality Education 4. Life Below Water
5. Gender equality 5. Life on Land
6. Peace and Justice Strong Institutions
6. Clean Water and Sanitation 7. Partnerships to achieve the Goal
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation, and Infrastructure
10. Reduced inequalities
Which of the following was the last five year plan of India before
the dissolution of the Planning Commission?

A. 12th Five Year Plan

B. 15th Five Year Plan

C. 13th Five Year Plan

D. 10th Five Year Plan

ANS: A
üThe last five year plan in the series of five year plans was
the 12th five-year plan, which was launched for the period
of 2012-17. "Faster, More Sustainable, and More Inclusive
Growth" was the theme of the last Five Year Plan.
üThe plan was meant to improve infrastructure projects
and give all villages access to energy.
üThe target growth rate of the plan was 8%, but 6.7% was
actually attained.
Q. Which of the following best describes the ‘Quaternary Sector’?

A. It includes activities concerned with the processing of the raw

materials.
B. It includes all the activities related to education, and R&D.
C. It includes occupations like senior management, research
scientists, financial and legal advisors.
D. The number of people in this sector is quite small.
ANS: B

Also known as the ‘knowledge’ sector, the Quaternary

Sector includes schooling, training, research and
development, and the development of new technologies.
This group of services includes the people who work in
office buildings, elementary schools, college classrooms,
hospitals and doctors' offices, accounting firms, theatres,
and brokerage firms.
Q. Which of the following sectors can be said to contribute
the most to the GDP of India?

A. Primary Sector
B. Manufacturing Sector
C. Tertiary Sector
D. Agricultural Sector
ANS: C

ØThe largest sector of India is the service sector with 53.89%

of India's gross value added (GVA) coming from this sector.
With a GVA of Rs. 46,444,000 crores, the secondary sector
contributes 25.92% to the GDP. While the Agriculture sector
contributes the rest.

ØThe contribution of the Agriculture sector to the Indian

economy is much higher than the average (6.4%) of the rest of
the world. The share of the industry and services sectors is
less than the average for the world.
Which of the following statement(s) is incorrect in the context of the NITI
Aayog?
I: NITI Aayog stands for National Institution for Transforming India and is
the policy think tank of India’s government.
II: It was launched in 2017, replacing the Planning Commission of India.
III: The ex-officio chairperson of NITI Aayog is the Prime Minister of India.
IV: The headquarters of NITI Aayog is in Mumbai.

I & II
II & III
I & III
II & IV
ANS: D
üThe NITI Aayog stands for the National Institution for
Transforming India and it is the apex public policy think tank of
the government, which was created in 2015 to replace the
Planning Commission.
üThe location of the headquarters of the NITI Aayog is New Delhi.
üThe NITI Aayog consists of two hubs: Team India Hub and the
Knowledge and Innovation Hub. The ex-officio chairperson of the
organization is the Prime Minister of India. The current members
of NITI Aayog are (as on 15 May).
IE&IFS MODULE A

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@JAIIB_CAIIB_2024_NOTES_MCQs