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INSIGHTSIASPRACTICEQUESTIONSONECONOMICSURVEY-2018

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INSIGHTSIASPRACTICEQUESTIONSONECONOMIC

SURVEY-2018FORUPSCCIVILSERVICESPRELIMNARYEXAM-2018

MAY25,2018INSIGHTSACTIVELEARNING,VIJAYANAGAR,BANGALORE

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1 Public expenditure on social services in last few years has consistently

a. Increased b. Decreased c. Almost constant d. No definite conclusion can be made

Answer – d The expenditure on social services by the Centre and States as a proportion of GDP has remained in the range of 6 per cent during 2012-13 to 2014-15. There has been a marginal decline to 5.8 per cent in 2015-16 which has further moved up to 6.6 per cent in 2017-18 (BE) 2 Right to Education Act 2009 stipulates 1. Physical infrastructure of schools 2. Both school-wise and class-wise learning outcomes

Select from the codes below a. 1 only b. 2 only c. Both d. None

Answer – c • RTE Act, 2009 lays down the guidelines for maintaining the

norms and standards relating inter alia to a) Pupil Teacher Ratios (PTRs) b) buildings and infrastructure c) school-working days d) teacher-working hours

both primary and upper primary schools.

• Towards improving the learning outcomes at elementary school level, Central Rules under the RTE Act have been amended in February, 2017 to include the defined class-wise, subject-wise learning outcomes



3 The average number of pupils (students) per classroom in a school in a given school-year is called as School Classroom Ratio. In this context, consider the following 1. About a quarter of schools in India have SCR greater than

30. 2. With the increased enrolment in schools, India has

witnessed increase in SCR as well. Select from the codes below

a. 1 only b. 2 only c. Both d. None

Answer – a • SCR is defned as average number of pupils (students) per

classroom in a school in a given school-year. The ideal size should be at 30 students per classroom.

• At all India level, percentage of schools with SCR greater than 30 students declined from 43 per cent in 2009-10 to 25.7 per cent in 2015-16. Though, SCR improved in almost all of the States, there are variations in the improvement across States.

4 Consider the following

1. India has better Pupil Teacher Ratio amongst the BRICS countries.

2. The recruitment and deployment of teachers is the responsibility of State governments.

Select from the codes below a. 1 only b. 2 only c. Both d. None

Answer – b



While India had a PTR of 23:1 at national level for primary schools in 2015-16, at primary level and upper primary level, the PTR should be 30:1 and 35:1, respectively. The global average of PTR in 2015 was 23.4:1. In countries as China, it was 16.3:1, 20.9:1 in Brazil, 19.8:1 in Russia and 33.6:1 in South Africa.

• The recruitment, service conditions and redeployment of teachers are primarily in the domain of respective State Governments and UT Administrations.

• However, the Central Government through the flagship programmes of Sarva Shiksha Abhiyan (SSA) at elementary level and Rashtriya Madhyamik Shiksha Abhiyan (RMSA Integrated) at secondary level provides assistance to the State Governments and UTs for additional teachers to



maintain appropriate PTR as per the prescribed norms for various levels of schooling.

5 Consider the following about education of girls

1. Gender Parity Index probes the inequality of education attainment between boys and girls.

2. Beti Bachao Beti Padhao seeks to fill the gap of inequality in education at secondary level as well.

Select from the codes below


Answer – c

• Gender Parity Index (GPI) in education is a valuable indicator which reflects the discrimination against girls in access to educational opportunities. In higher education, gender disparities still prevail in enrolment for which continuous efforts are being made by the Government to improve net intake rate for women in higher education. Gender Parity Index (GPI) is a socioeconomic index usually designed to measure the relative access to education of males and females. This index is released by UNESCO. In its simplest form, it is calculated as the quotient of the number of females by the number of males enrolled in a given stage of education (primary, secondary, etc.)

• With consistent efforts by the Government through programmes like Beti Padhao, Beti Bachao, the GPI has improved substantially at the primary and secondary levels of enrolment



http://pib.nic.in/newsite/PrintRelease.aspx?relid=112671

6 Consider the following about the Ease of Doing Business Rankings

1. It is released by World Economic Forum. 2. In the recent ranking, India has substantially improved on

indices of taxation, insolvency and enforcing contracts. Select from the codes below


Answer – d The index developed by World Bank on the basis of 10 parameters or 10 sub-indices

• India jumped thirty places to break into the top 100 for the frst time in the World Bank’s Ease of Doing Business Report (EODB), 2018

• India leaped 53 and 33 spots in the taxation and insolvency indices, respectively, on the back of administrative reforms in taxation and passage of the Insolvency and Bankruptcy Code. It also made strides on protecting minority investors and obtaining credit, and retained a high rank on getting electricity, after a 70 spot rise in EODB, 2017 due to the government’s electricity reforms

• India continues to lag on the indicator on enforcing contracts, marginally improving its position from 172 to 164 in the latest report, behind Pakistan, Congo and Sudan.

7 Consider the following about exports of India

1. There was no direct data on international exports of states before GST.

2. Larger firms account for majority of the exports.



Which of the above is correct a. 1 only b. 2 only c. Both d. None

Answer – a The distribution of the GST base among the states is closely linked to the size of their economies, allaying fears of major producing states that the shift to the new system would undermine their tax collections. Data on the international exports of states (the first in India’s history) suggests a strong correlation between export performance and states’ standard of living. India’s exports are unusual in that the largest firms account for a much smaller share of exports than in other comparable countries. 8 Consider the following data unearthed after implementation of GST 1. Formality in the non-farm sector is high compared to

previous calculations. 2. Indirect taxpayers have decreased. 3. The manufacturing states are losing revenue compared to

the earlier tax regime. Select from the codes below

a. 1 only b. 1 and 3 only c. 2 and 3 only d. All of them

Answer – a

• India’s formal sector, especially formal non-farm payroll, is substantially greater than currently believed. Formality defned in terms of social security provision yields an estimate of formal sector payroll of about 31 percent of the non-agricultural work force; formality defned in terms of



being part of the GST net suggests a formal sector payroll share of 53 percent.

• There has been a fifty percent increase in the number of indirect taxpayers. Adjusting the base for double and triple counting, the GST has increased the number of unique indirect taxpayers by more than 50 percent_a substantial 3.4 million. They were not captured earlier because of their total turnover, business-to-consumer (B2C) transactions account for only 17 percent of the total. The bulk of transactions are business-to business (B2B) and exports, which account for 30-34 percent apiece

• The distribution of the GST base among the states is closely linked to the size of their economies, allaying fears of major producing states that the shift to the new system would undermine their tax collections.

9 Consider the following about the private non-agricultural formal sector in India

1. Such firms are about a quarter of the total firms. 2. They produce about half of the total production in the non-

agricultural private sector. Which of the above is/are correct?


Answer – d

• The size of the formal sector (defned here as being either in the social security or GST net) is 13 percent of total frms(71 million) in the private non-agriculture sector but 93 percent of their total turnover.



• The registered below-threshold frms account for 32 percent of total frms but less than 1 percent of total turnover, while the largest account for less than 1 percent of firms but 66 percent of turnover, and 54 percent of total tax liability

• Registered smaller firms seem to be equally involved in selling to consumers (B2C) and selling to other firms (B2B). Medium and large firms, in contrast, have a much greater presence in B2B than B2C transactions

10 Weighted average tax rate under GST is around

a. 15% b. 20% c. 12% d. 10%

Answer – a

• Revenue Neutral Rate RNR Committee had estimated a base of Rs. 68.8 lakh crore and the GST Council had estimated a base of Rs. 65.8 lakh crore. GST tax base (excluding exports) is Rs. 65-70 lakh crore, broadly similar to these two previous estimates

• The weighted average collection rate (incidence) is about 15.6 percent. So, as estimated by the RNR committee, the single tax rate that would preserve revenue neutrality is between 15 to 16 percent

11 Which of the following states has the highest indirect tax base under GST

a. Maharashtra b. Madhya Pardesh c. Uttar Pardesh d. Tamil Nadu



Answer – a • In the run-up to the GST, there was anxiety amongst the

manufacturing states that the switch to a destination and consumption-based tax would transfer the tax base toward consuming states.

• State-wise share of the total GST base suggests that the top states are Maharashtra (16 percent), Tamil Nadu (10 percent), Karnataka (9 percent), Uttar Pradesh (7 percent), and Gujarat (6 percent). So the biggest tax bases still seem to be in the biggest producing states.

• It is true that the share of Maharashtra’s and Gujarat’s tax base under the GST is lower than their share of manufacturing. But because these two states also have a signifcant presence in services, their tax base share remains in line with their share of GSDP.

12 Smaller firms are opting to be part of GST regime despite having the option of Composition scheme. What is the most likely reason for such behaviour?

a. GST has lesser taxes. b. They purchase from the larger firms. c. Larger firms purchase from them. d. GSTN technology is more easy to use.

Answer – b

• Before the GST was introduced, it was expected that small dealers who sell directly to consumers would chose the composition scheme while those who sell to bigger companies would opt (or be forced) into regular registration, because purchasing frms would not buy unless they could get input tax credits

• Small B2C frms want to be part of the GST because they buy from large enterprises. In fact, 68 percent of their purchases are from medium or large registered enterprises,



giving them a powerful incentive to register, so they could secure input tax credits on these purchases.

13 Which state accounts for the largest share in India’s exports

a. Gujarat b. Maharashtra c. Tamil Nadu d. Karnataka

Answer – b Five states—Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana—in that order account for 70% of India’s exports 14 India’s internal trade is 60% of its total trade. Which state has the largest trade surplus in inter-state trade? a. Haryana b. Maharashtra c. Gujarat d. Odhisa

Answer – c Interstate trade

• The fve largest exporting states are Maharashtra, Gujarat, Haryana, Tamil Nadu and Karnataka

• The fve largest importing states are Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka and Gujarat

• The states with the largest internal trade surpluses are Gujarat, Haryana, Maharashtra, Odisha and Tamil Nadu.

15 Conisder the following about India’s GDP growth rate

1. It is about 4% higher than the global GDP rate. 2. It is slower than the average of emerging market and

developing economies.





Answer – a The growth is around 4 percentage points higher than global growth average of last 3 years and nearly 3 percentage points more than the average growth achieved by emerging market & developing economies 16 Consider the following statements 1. India’s savings as a percentage of GDP is around 30%. 2. India’s food production is consistently growing year by year

over the last decade. Select from the codes below


Answer – a



17 Consider the following statements

1. India’s manufacturing growth rate is continuously growing at more than 8% year-on-year after the announcement of ‘Make in India’ scheme.

2. Public sector constitutes major chunk of the growth in services in last few years.



Answer – b



18 It is said that India has moved from “socialism with limited entry to marketism without exit”. Which of the following mechanisms is likely to help the firms to exit?

a. Insolvency Code b. Bank recapitalisation c. FDI liberalisation d. None of the above

Answer – a

• Facilitating “exit” has been one of India’s most intractable challenges, evoking the generalization that over the last 50 years India had gone from “socialism with limited entry to marketism without exit.” The IBC resolution process could prove a valuable technology for tackling this long-standing problem in the Indian corporate sector. The recently proposed Financial Resolution and Deposit Insurance (FRDI) bill would do the same for fnancial frms.

• In the case of the TBS challenge, exit has proved particularly intractable because the objectives are many, conflicting, and politically diffcult. Policymakers have had to fnd a way to reduce the debts of



stressed companies to sustainable levels. At the same time, they have had to minimize the bill to taxpayers, limit moral hazard, and avoid the perception of favouring controlling equity holders (promoters). The IBC aims to solve these problems through the expedient of transparently auctioning off stressed frms to the highest bidders, excluding those which are toxically blemished.


1. Before GST, there was no systematic firm level export data. 2. India has lesser concentration of a few companies over

exports compared to other countries. 3. India’s export profile is unique due to substantial service

exports vis-à-vis other countries. Select from the following codes

a. 1 and 2 only b. 2 and 3 only c. 1 and 3 only d. All of the above

Answer – d

• Until now, no such analysis has been possible for India because frm level export data are diffcult to construct. (In principle, DGCIS and Customs have these data but they have not been systematically compiled or used by researchers.) However, with the new GST data it is possible to construct frm-level exports.

• Export concentration by firms is much lower in India than in the US, Germany, Brazil, or Mexico. For example, top 1 percent of frms accounted for 72, 68, 67, and 55 percent of exports in Brazil, Germany, Mexico, and USA respectively but only 38 percent in the case of India

• There is one caveat which could help explain the atypical Indian distribution: unlike in other countries, Indian



data includes exports of services, where concentration ratios tend to be much lower than in manufacturing

20 Consider the following organisations for social security in India

1. EPFO provides for medical benefits to private sector employees.

2. ESIC provides for pensions for the private sector employees. Select from the codes below


Answer – d

• In India, government provides this for its employees, and the Employees’ Provident Fund Organization (EPFO) provides it to private sector employees in respect of pensions and provident funds. EPFO contribution is mandatory for industries employing greater than 20 workers, and whose monthly wage/salary is below Rs. 15,000. Above that level, contributions are voluntary. Of the total active members (for whom the monthly contribution is deposited by the employer), 86 percent earn less than Rs 15,000, and about 98 percent have opted for a combination of the ‘provident fund-pension’ option.

• Employees’ State Insurance Corporation (ESIC) in respect of medical benefts. ESIC contribution is mandatory for certain frms, employing greater than 10 workers, and for workers in these frms whose monthly wage/ salary is below Rs. 21,000.

21 Which of the following sectors are exempted from GST?



1. Education 2. Health 3. Electricity


a. 1 and 2 only b. 3 only c. All of the above d. None of the above

Answer – c “Less than 0.1 percent of frms accounting for about 14 percent of turnover are in the social security net but not in the GST net. These are mostly frms that are in GST-exempted sectors (such as education, health, electricity), although there are many frms that appear to be outside the GST even though they are in the GST-included sectors.” 22 Consider the following

1. There is a meagre percentage of firms which are in both tax net and social security net.

2. There is a meagre percentage of firms which are tax exempted but are covered in social security net.

Which of the above is correct


Answer - c

• About 0.6 percent of frms, accounting for 38 percent of total turnover, 87 percent of exports, and 63 percent of GST liability are what might be called in the “hard core” formal sector in the sense of being both in the tax and social security net.



• At the other end, 87 percent of frms, representing 21 percent of total turnover, are purely informal, outside both the tax and social security nets

• Around 12 percent of frms, accounting for 41 percent of turnover, 13 percent of exports, and 37 percent of tax liabilities are in the tax net but not the social security net. These frms are relatively smaller than those in both nets, since they have a lower average turnover and average tax rate, 7 percent compared with 16.3 percent

• Finally, less than 0.1 percent of frms accounting for about 14 percent of turnover are in the social security net but not in the GST net. These are mostly frms that are in GST-exempted sectors (such as education, health, electricity), although there are many frms that appear to be outside the GST even though they are in the GST-included sectors.


1. Government is seeking “Capital Restructuring of CPSEs” than disinvestment.

2. BHARAT 22 is a new ETF to realise restructuring of CPSEs. Select from the codes below

a. 1 nly b. 2 only c. Both d. None

Answer – c

• Budget 2016-17 focused on the need to migrate from the’ disinvestment based approach’ to ‘investment based approach’ for CPSEs. Accordingly, renaming the Department as ‘DIPAM’ with expanded mandate denotes a paradigm



shift in the thinking process of the Government on its strategy to manage its investment in CPSEs

• Department also laid down comprehensive guidelines on “Capital Restructuring of CPSEs:” in May, 2016 for effcient management of Government’s investment in CPSEs by addressing various aspects, such as, payment of dividend, buyback of shares, issues of bonus shares and splitting of shares.

• The commitment for time-bound listing of CPSEs has been taken on-board as an integral part of the reforms initiatives of the Government by making an announcement to this effect in the Budget 2017-18

• Government started using index based ETF to offer an investment opportunity in CPSEs to pension funds and retail investors in India. And pursuant to the announcement made in the Budget in this regard, a new ETF, namely BHARAT 22 was announced in August, 2017.

24 Which of the following are NBFCs

1. Peer to Peer 2. Account Aggregators



Answer – c

• Non-Banking Financial Companies (NBFCs) bring in diversity and effciency to the financial sector and make it more responsive to the needs of the customers.

• Peer to Peer (P2P) and Account Aggregators are the new categories of NBFC that have been introduced recently.



• To further fnancial inclusion through direct interaction between small lenders and small borrowers and to address the associated consumer protection issues, the Reserve Bank has introduced a new category of Non-Banking Financial Company (NBFC) called NBFC-P2P (NBFC- Peer to Peer Lending Platform) with light touch regulation and emphasis on adequate disclosures.

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. 25 Consider the following about the NBFC sector

1. Their balance sheets mostly comprises of public funds. 2. CRAR of NBFCs is only around 10%, making them hugely

risky. 3. NBFCs have a considerable share in bank assets despite

having meagre share in deposits. Which of the above statements is correct?


Answer – c



• NBFCs depended largely on public funds for funding their balance sheets, like borrowings through Non-Convertible Debentures (NCDs)

• The Capital to Risk Weighted Assets Ratio (CRAR) of NBFC sector declined slightly to 22.5 per cent as on end-September 2017 from 22.8 per cent as on March 31, 2017. The gross NPA ratio (per cent to advances) of NBFC sector declined to 5.5 per cent as on end-September 2017 from 6.1 per cent as on March 31, 2017

• NBFC sector, as a whole, accounted for 17 per cent of bank assets and 0.26 per cent of bank deposits. The consolidated balance sheet size of the NBFC sector is `20.7 lakh crores.

26 Which sector has seen most defaults since outlining Insolvency and Bankruptcy Code

a. Steel b. Banking c. Coal d. Telecom

Answer – a



27 Which of the following sector accounts for highest growth in non-food credit generally

a. Services b. Personal loans c. Industry d. Agriculture and allied activities

Answer – b Bank credit lending to Services and Personal Loans (PL) segments continue to be the major contributor to overall NFC growth

28 In the industrial sector, which sub-sector has the least credit growth rate

a. Micro and small scale b. Medium scale c. Textiles d. Infrastructure

Answer – b



Credit growth fnally picked up in industrial sector after remaining persistently negative from October 2016 to October 2017. However, growth of credit to medium scale industries has remained negative since June 2015.

29 Comparing the performance indices of NBFCs with Scheduled Commercial Banks (SCBs), which of the following are true

1. CRAR of NBFCs is higher than SCBs. 2. Gross NPAs ratio of SCBs has been increased. 3. Both Return on Assets and Return on Equity are higher in

NBFCs. Select from the codes below


Answer – d

• Capital to Risk Weighted Assets Ratio (CRAR) of NBFC sector declined slightly to 22.5 per cent as on end-September 2017 from 22.8 per cent as on March 31, 2017. Capital to Risk-weighted Asset Ratio (CRAR) of SCBs increased from 13.6 per cent to 13.9 per cent between



March 2017 and September 2017 largely due to an improvement for private sector banks

• The gross NPA ratio (per cent to advances) of NBFC sector declined to 5.5 per cent as on end-September 2017 from 6.1 per cent as on March 31, 2017. Gross Non Performing Advances (GNPA) ratio of Scheduled Commercial Banks (SCBs) increased from 9.6 per cent to 10.2 per cent between March 2017 and September 2017.

• The Return on Assets (RoA) of the sector increased to 2.0 per cent as on end September 2017 as compared to 1.6 per cent as on end-March 2017. The Return on Equity (RoE) increased significantly to 9.0 per cent (annualized) as on end September 2017 from 7.0 per cent as on end-March 2017. SCBs’ Return on Assets (RoA) remained unchanged at 0.4 per cent between March 2017 and September 2017 while their Return on Equity (RoE) declined from 4.3 per cent to 4.2 per cent.

Difference between banks & NBFCs NBFCs lend and make investments and hence their activities are akin to that of banks; however there are a few differences as given below: i. NBFC cannot accept demand deposits ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

30 The term “economic convergence” refers to a. Less developed countries growing faster than High income

countries b. Reducing inequalities between the poor and rich people c. A term used by World Bank to refer the impact of

environmental degradation on growth



d. None of the above Answer – a A major driver of these good times, is “economic convergence,” whereby poorer countries have grown faster than richer countries and closed the gap in standards of living. The convergence process has been broadening and accelerating for the last 20-30 years 31 Voluntary National Reviews is related to a. Implementation of Sustainable Development Goals b. Implementation of Paris Climate Change Goals c. Voluntary contribution of developed countries to Green

Climate Fund d. Reform in UN Security Council

Answer – a India is one of the countries that has volunteered to take part in the Voluntary National Reviews (VNRs) at the High-Level Political Forum (HLPF) 2017. India presented its 1st VNR on implementation of SDGs on 19th July, 2017 in the HLPF at United Nations, New York. The VNR report is based on an analysis of progress under various programmes and initiatives in the country. The VNR report focused on 7 SDGs: 1 (No Poverty); 2 (Zero Hunger); 3 (Good Health and Well-Being); 5 (Gender Equality); 9 (Industry, Innovation and Infrastructure), 14 (Life below Water) and 17 (Partnerships for the Goals). 32 What are the possible reasons for middle income countries to be entrapped in stagnation of growth after years of high growth

1. Presence of low cost competitors to manufacturing 2. Rapid higher movement in value-added chain


a. 1 only



b. 2 only c. Both d. None

Answer – a

• The reasons for the trap/stall were supposed to be twofold, operating as a kind of pincer.

• On the one hand, as countries attained middle income status, they would be squeezed out of manufacturing and other dynamic sectors by poorer, lower-cost competitors.

• On the other hand, they would lack the institutional, human, and technological capital to carve out niches higher up the value-added chain.

• Thus, pushed from below and unable to grasp the top, they would find themselves doomed to, well, middle income status.

33 Which of the following are in the process of formulating indictors comparable to SDGs at the national level

a. NITI Aayog b. Ministry of Statistics & Programme Implementation c. RBI d. Both a and c

Answer – b

• In the light of the global SDG indicators endorsed by the UN Statistical Commission, the draft national SDG indicators are being developed by Ministry of Statistics & Programme Implementation with inputs from Central Ministries and various other stakeholders and are now at an advanced stage of fnalization.

• In the light of the global SDG indicators endorsed by the UN Statistical Commission, the draft national SDG indicators are being developed by



Ministry of Statistics & Programme Implementation with inputs from Central Ministries and various other stakeholders and are now at an advanced stage of fnalization.

34 Consider the following 1. Gravity model of trade suggests that smaller economies

trade more than larger countries. 2. The world is witnessing intensified trade after global

financial crisis. Select from the codes below


Answer – a

• Basic gravity theory implies that smaller countries tend to trade more than larger ones. A world made up of two equal-size countries will experience more trade than a world in which the larger country accounts for 95 percent of world output. Over time, the world is becoming more equal in the distribution of the underlying output. For example, between 1970 and 2000, it was as if there were 7.0 – 7.5 equally sized countries trading with each other according to the gravity model. Since 2000, as more countries have started catching up with the rich, world output has become more dispersed.

• But this globalization has led to a backlash in advanced countries reflected in the decline in world trade-GDP ratios since 2011



35 Consider the following about urbanisation in India

1. India’s urban population is around 25% according to 2011 census.

2. Issuance of municipal bonds is allowed through 74th

Constitutional Amendment by the municipal bodies which satisfy certain conditions.

Select the right statements


Answer – d

• According to Census 2011, 377.1 million Indians comprising 31.16 per cent of the country’s population live in urban areas. India’s urban population is projected to grow to about 600 million by 2031.

• In July, 2015, the Securities and Exchange Board of India (SEBI) notifed a new regulatory framework - Issue and



Listing of Debt Securities by Municipalities Regulations for issuing municipal bonds in India

36. Premature industrialisation is the stage in countries like India where the human resource shift from informal sector to low cost production process, thereby impeding industrialisation. In this light, consider the following in respect of India about premature industrialisation

1. It has been high in both pre-liberalisation and post-liberalisation eras

2. It is increasing in the 21st century Select from the codes below


Answer – c

• Successful development requires two kinds of structural transformations: 1) a shift of resources from low productivity to high productivity sectors (as highlighted by Sir Arthur Lewis); and 2) a larger share of resources devoted to sectors that have the potential for rapid productivity growth. In many cases, however, resources do not shift in this way. They shift instead from informal, low productivity sectors to ones that are marginally less informal/more productive. These are cases of “thwarted structural transformation”.

• There is a solid positive relationship, suggesting that richer countries attained higher levels of peak manufacturing and earlier in the development process. Thus China has lower premature industrialisation than India, and both have higher than US.



• In particular, based on the detailed study of India by Amirapu and Subramanian, dynamic sectors are those with high levels of productivity and potential for unconditional convergence. Such a list comprises manufacturing, fnance, telecommunications, and professional services.

• Therefore, good growth comprises growth accounted for by labor share shifts into these good sectors and their productivity growth. . In particular, based on the detailed study of India by Amirapu and Subramanian, dynamic sectors are those with high levels of productivity and potential for unconditional convergence. Such a list comprises manufacturing, fnance, telecommunications, and professional services.

• For China, the average, share of good growth over the entire period is 53 percent while India’s is 37 percent, falling to about 32 percent since the Global Financial Crisis

37 Saubhagya scheme seeks to



a. Achieve 100% electrification of all villages b. Provide adolescent girls with scholarships for higher

education deterring early marriage c. Reducing mortality rate in the newly born children from

malnutrition d. None of the above

Answer – d

• Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) scheme was launched in 2015 to achieve 100 per cent village electrification

• Saubhagya scheme launched on 25th September, 2017, to provide energy access to all by last mile connectivity and electricity connections to all remaining unelectrifed households in rural and urban areas to achieve universal household electrifcation in the country.

Status of rural electrification

As of August 2017, about 1% of the villages in India remain un-electrified (3,146 villages). However, with regard to households, around 23% (4.1 crore households) are yet to be electrified.

Definition of an electrified village

An electrified village is defined as one that has the following:

(i) provision of basic infrastructure such as distribution transformers and lines in the inhabited locality

(ii) provision of electricity in public places like schools, panchayat office, health centers, dispensaries, and community centers, and

(iii) at least 10% of the total number of households in the village are electrified.

38 Lewisian model talks about

a. Shift from farm to industrial sector b. Implications of world trade on nation’s economy



c. Inflation and employment are complimentary d. Interest rate is directly proportional to GDP growth rate

Answer – a Successful development requires two kinds of structural transformations:

a. a shift of resources from low productivity to high productivity sectors (as highlighted by Sir Arthur Lewis)

b. a larger share of resources devoted to sectors that have the potential for rapid productivity growth

The dual-sector model is a model in developmental economics. It is commonly known as the Lewis model after its inventor W. Arthur Lewis. It explains the growth of a developing economy in terms of a labour transition between two sectors, the capitalist sector and the subsistence sector 39 Which of the following states have achieved 100% household electrification

1. Kerala 2. Punjab 3. Nagaland 4. Gujarat


a. 1 only b. 2 and 3 only c. 1,2 and 4 d. All of the above

Answer – c

• Out of 18.1 crore rural households in the country, 14.2 crore (78%) rural households have been electrified



• Kerala, Tamil Nadu, Andhra Pradesh, Goa, Gujarat and Punjab have achieved 100 per cent electrifcation of households.

• In contrast, Bihar, Jharkhand and Nagaland have achieved less than 50 per cent.

40 Consider the following about ASER survey

1. A sample of school children is tested on reading and arithmetic in rural India.

2. There are no significant differences between boys and girls in learning outcomes.



Answer – c

• Learning poverty headcount (LPC), which measures the number of children who do not meet the basic learning benchmark, has been possible through possible by the Annual Survey of Education Reports (ASER) that have over time tested a sample of children between the ages of 5 and 16, residing in rural India. Students are tested in terms of a set of tasks in reading and arithmetic, which have remained constant over time

• There are no signifcant differences in the LPC for boys and girls.

• It is sobering enough that learning poverty counts are around 40 percent, roughly where India’s consumption poverty numbers were in the 1970s. But if technology going forward is going to be even more human capital intensive as current trends suggest (dotted yellow line), the wedge between the opportunities offered to the future labour force and the capabilities to take advantage of them will widen



even further. That is the true magnitude of India’s human capital challenge.

ASER – By Pratham (NGO) • annual survey that aims to provide reliable estimates of

children’s enrolment and basic learning levels for each district and state in India.

• ASER has been conducted every year since 2005 in all rural districts of India.

• It is the largest citizen-led survey in India • It is also the only annual source of information on children’s

learning outcomes available in India today. • Unlike most other large-scale learning assessments, ASER

is a household-based rather than school-based survey. This design enables all children to be included – those who have never been to school or have dropped out, as well as those who are in government schools, private schools, religious schools or anywhere else.


1. GDP growth of low income countries has been higher than those of high income countries after global financial crisis.

2. Agricultural productivity of low income countries has been higher than those of high income countries.



Answer – a

• The poorest have been growing faster than lower middle income countries, who have been growing faster



than upper middle income countries who in turn have been growing faster than the richest.

• Growth rates for richer countries have been consistently greater than for developing countries in each time period.

Agricultural productivity of low income countries has been lower than those of high income countries. 42 Consider the following about renewable energy in India

1. The share of renewable energy in total installed capacity has tripled in a decade.

2. Solar and wind tariffs are currently falling. Select from the following codes


Answer – c



• As on 30th November, 2017, the total installed capacity of electricity in India was 330860.6 MW out of which 18 per cent was from renewable energy sources. The share of renewables in the total installed capacity has been increasing over the years and the current share is around 3 times what it was in the year 2007

• Between March, 2016 and December, 2017, the installed capacity of solar power increased from around 6.8 GW to 17 GW. In recent years, India has been witnessing falling solar tariffs. While this has a positive impact on the cost of procuring power, it has also initiated certain discussions about renegotiation of already signed power purchase agreements (PPAs) by certain states. The recent auctions for solar power procurement have led to discovery of very low tariffs. Auctions for wind based power were frst held by Solar Energy Corporation of India in February, 2017 which realised a tariff of ` 3.46/unit

http://pib.nic.in/newsite/PrintRelease.aspx?relid=174832 43 Match the correct ones

1. Gender Inequality Index – United Nations Development Program

2. Global Gender Gap Index – World Economic Forum Select from the codes below


Answer – c Both are true. Gender Inequality Index (GII) is an index for measurement of gender disparity that was introduced in the 2010 Human Development Report edition by the United Nations Development Programme (UNDP). According to the UNDP, this index is a



composite measure to quantify the loss of achievement within a country due to gender inequality. It uses three dimensions to measure opportunity cost: reproductive health, empowerment, and labor market participation

Global Gender Gap Report was first published in 2006 by the World Economic Forum. R eport examines four overall areas of inequality between men and women in 130 economies around the globe, over 93% of the world’s population:

1. Economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled employment

2. Educational attainment – outcomes on access to basic and higher level education

3. Political empowerment – outcomes on representation in decision-making structures

4. Health and survival – outcomes on life expectancy and sex ratio.

44 Consider the following about Employee State Insurance Act scheme

1. The scheme under the Act is applicable in all districts of the country

2. Family members are also covered under the scheme Select the right statements


Answer – b

• Employee’s State Insurance (ESI), Act has been extended to all 325 complete districts as well as 93 district headquarters area. The scheme is also partially



available in centers in 85 districts. Arrangements are being made for further extension of the scheme across the country by 2022. Under the scheme, insured persons are entitled to various cash benefts in the event of abstention from work due to sickness, temporary disablement, permanent disablement, dependent beneft, unemployment allowance, maternity beneft etc.

• The family members of the insured persons are also entitled to medical beneft. As on 31.03.2017, the number of insured persons covered under ESI scheme is 3.19 crore and total benefciaries including their family members are 12.40 Crore. ESI has a network of 152 hospitals, 1467 dispensaries, 628 branch offces and 62 regional /sub regional offces across the country

45 Consider the following about economic participation of women

1. India has gender gap of employment more than 50% 2. Most women are employed in low skilled jobs compared to

men 3. MGNREGA has more than 50% of workers as women for the

last couple of years Which of the above are true

a. 1 and 2 b. 2 and 3 c. 1 and 3 d. All of the above

Answer – a

• In the case of India, the gender gap in labour force participation rate is more than 50 percentage points. The lower participation of women in economic activities adversely affects the growth potential of the economy



• Women workers are the most disadvantaged in the labour market as they constitute a very high proportion among the low skilled informal worker category, and are engaged in low-productivity and low paying work. Owing to this, women earn very low wages, mostly piece rates in highly insecure jobs

• (MGNREGA) is one of the important schemes which ensures participation by women in the economic activity by stipulating minimum 33 per cent participation by women. In the last financial year, of all the workdays, 54 per cent were generated by women, 22 per cent by Schedule Castes and 17 per cent by Schedule Tribes.

46 Mahila-e-haat seeks to

a. Enhance health outcomes of women b. Encourage women entrepreneurship c. Protect women workers from exploitation at informal

workplaces d. Make available agri loans to women farmers without having

land in their names Answer – b For economic empowerment of women through promoting the spirit of creating selfemployment ventures, Mahila E-Haat, an initiative for meeting aspirations and needs of women entrepreneurs has been launched with the objective to provide an e-marketing platform by leveraging technology for showcasing product made/manufactured/sold by women entrepreneurs/SHGs/NGOs. 47 Consider the following about women participation in politics

1. The average number of women in Parliament of India is 11-12%.

2. More than 40% women are elected representatives at Panchayati Raj level.





Answer – c

• As per the report ‘Women in Politics 2017 (IPU & UN)’ Lok Sabha had 64 (11.8 percent of 542 MPs) and Rajya Sabha had 27 (11 per cent of 245 MPs) women MPs.

• As on October 2016, out of the total 4118 MLAs across the country, only 9 per cent were women. Among the State assemblies, the highest percentage of women MLAs were from Bihar, Haryana and Rajasthan with 14 per cent followed by Madhya Pradesh and West Bengal with 13 per cent and Punjab with 12 per cent

• There are 13.72 lakh elected women representatives (EWRs) in PRIs which constitute 44.2 percent of total elected representatives (ERs) as on December, 2017. Women sarpanchs (chairperson) accounted for 43 percent of total gram panchayats (GPs) across the country, exhibiting active leadership of women in local governments

48 Consider the following about Clinical Establishment Act

1. The clinical establishments have to charge the rates within a specific range decided by National Council for Clinical Establishments in consultation with States

2. The Act is applicable in all states Select the right code

a. 1 only b. 2 only c. Both



d. None Answer – a

• Under Clinical Establishments (Registration and Regulation) Act, 2010 and Clinical Establishments (Central Government) Rules, 2012, the clinical establishments (in the States / Union Territories where the Act is applicable) shall charge the rates for each type of procedure and services within the range of rates determined by the Central Government from time to time in consultation with the State Governments. The clinical establishments are also required to display the rates charged for each type of services provided and facilities available, at a conspicuous place both in the local language and English. The National Council for Clinical Establishments has approved a standard list of medical procedures and a standard template for costing of medical procedures and shared the same with the States and UTs

• Act is applicable in 10 States/UTs, which needs to be taken up by remaining States while ensuring strict compliance as well.

49 Consider the following statements about housing in India 1. Share of rental housing has decreased since independence 2. Vacant houses percentage has increased in urban areas

Select the right code


Answer – c

• Policies related to housing need to recognize that India has an increasingly fluid population. A successful housing policy should enable horizontal or spatial mobility, namely



the ability to move to, between and within cities as job opportunities arise.

• Share of rental housing has actually been declining in Indian cities since independence from 54 per cent in 1961 to 28 per cent in 2011

• Despite the shortage of housing in urban India (more than 18 million households in 2012, there is also a trend increase in vacant houses: from 6.5 million in 2001 to 11.1 million in 2011

50 Consider the following about logistics sector in India

1. A new Logistics Division has been created in Department of Commerce

2. Logistics Performance Index is released by World Bank Select the right code


Answer – c



• By recognising the importance of the logistics sector, a new Logistics Division has been created in the Department of Commerce to develop and coordinate integrated development of the logistics sector, improvement in existing procedures, identifcation of bottlenecks and gaps, and introduction of technology based interventions in this sector

• Global Ranking of the World Bank’s 2016 Logistics Performance Index shows that India jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall logistics performance.

Logistics Performance Index (LPI)

1. It helps countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.

2. It is the weighted average of the country scores on six key dimensions:

a) efficiency of the clearance b) quality of trade and transport related infrastructure c) ease of arranging competitively priced shipments d) competence and quality of logistics services e) ability to track and trace consignments f) timeliness of shipments in reaching destination

within the scheduled or expected delivery time 51 Which state has highest growth in the services sector in the last financial year

a. Bihar b. Maharashtra c. Gujarat d. Tamil Nadu

Answer – a



• In terms of services GSVA share, Delhi and Chandigarh are at the top with over 80 per cent share, while Sikkim is at the bottom with 31.7 per cent share. In terms of services GSVA growth, Bihar is at the top and Uttar Pradesh at the bottom with 14.5 per cent and 7.0 per cent growth respectively in 2016-17

52 Consider the following about National LED programme

1. Seeks to replace incandescent lights with LEDs in households

2. Seeks to replace conventional street lighting with LEDs Select from the codes below


Answer – c National LED programme includes two components

a. Unnat Jyoti by Affordable LED for All (UJALA) providing LED bulbs to domestic consumers with a target to replace 77 crore incandescent bulbs with LED bulbs. Note : This programme has been recently emulated by the Malaysia

b. Street Lighting National Programme (SLNP) to replace 1.34 crore conventional street lights with smart and energy efficient LED street lights by March 2019

53 Consider the following about water transport

1. More than 90% India’s trade by volume is transported through sea

2. Jal Marg Vikas Project is launched on National Waterway 1





Answer – c

• Shipping is an important indicator of commodity trade of any country. Around 95 per cent of India’s trade by volume and 68 per cent in terms of value is transported by sea

• ‘Jal Marg Vikas Project’ on National Waterways-I (NW-I) in river Ganga, a large integrated IWT project, has been launched between Varanasi and Haldia covering a distance of 1380 kms at an estimated cost of `5369 crore. It is being implemented with the financial and technical support of the World Bank. The Project entails development of fairway with 3 meters depth between Varanasi and Haldia.

• On NW-2 (River Brahmaputra), Ro-Ro services have commenced between Dhubri and Hatsingimari in July 2017 on an Inland Waterways Authority of India (IWAI) vessel. Roll-on/roll-off (RORO or ro-ro) ships are vessels designed to carry wheeled cargo, such as cars, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven on and off the ship on their own wheels or using a platform vehicle

• Further, under the National Waterways Act, 2016, 106 additional inland waterways have been declared as National Waterways (NWs). http://pib.nic.in/newsite/PrintRelease.aspx?relid=148091 http://www.insightsonindia.com/2012/07/17/national-inland-waterways-of-india-maps-and-details/




1. India’s share of freight transport for roads is lesser than that of US

2. India has higher road density than US Select from the codes below


Answer – c

India’s road density at 1.66 km/sq.km of area is higher than that of Japan (0.91 km/ sq km), USA (0.67 km/ sq km), China (0.46 km/ sq. km), Brazil (0.18 km/sq.km) and Russian Federation (0.08 km/ sq km) 55 Consider the following statements



1. India’s ranking in latest Logistics Performance Index has increased

2. It is released by World Bank Select the right code


Answer – c

• India has improved its ranking in the “Logistics Performance Index” (LPI) from 54 in 2014 to 35 in 2016

• Indian logistics industry is estimated to be worth around US$ 160 billion in 2016-17 and has grown at a compound annual growth rate (CAGR) of 7.8 per cent over the past fve years. Considering the impact of implementation of the Goods and Services Tax (GST), the Indian logistics market is expected to reach about US$ 215 billion in 2019-20, growing at a CAGR of 10.5%.

56 Which sector attracts highest FDI flows

a. Service sector b. Manufacturing c. Mining



d. Agriculture Answer – a

• The services sector accounted for two thirds of global FDI stock in 2015, though a large part of this relates to affliates of primary sector and manufacturing multinational enterprises (MNEs) that perform services-like activities, and fall under services as a default category.

• The share of services in total value of announced Greenfeld projects increased to 58.2 per cent in 2016 from 54.1 per cent in the previous year.


1. Investment in share market has grown since demonetisation 2. Flows in mutual funds is about 1% of GDP

Select the correct code


Answer – c

• The government’s campaign against illicit wealth over the past few years—exemplified by demonetisation—has in effect imposed a tax on certain activities, specifically the holding of cash, property, or gold. Cash transactions have been regulated; reporting requirements for the acquisition of gold and property have been stiffened. In addition, rupee returns to holding gold have plunged since mid-2016, turning negative since mid-2017. In addition, previously, stock prices had suffered because reporting requirements were higher on shares than purchases of other asset. But



the attack on illicit wealth has helped to level the playing feld.

• All of this has caused investors to re-evaluate the attractiveness of stocks. Investors have accordingly reallocated their portfolios toward shares, with inflows through stock mutual funds, in particular, amounting in 2016-17 to five times their previous year’s level

58 Which state has the highest percentage of women representatives at Panchayat levels

a. Rajasthan b. Kerala c. Gujarat d. Karnataka

Answer – a




1. SDG 3 relates to health and well being 2. The share of private sector is larger than that of public

sector in health in India Select the right statements


Answer – c

• Ensuring healthy lives and promoting the well-being for all at all ages is essential to sustainable development (SDG-3).



60 Mahila Shakti Kendra seeks to

a. Develop leadership skills of women b. Empower women with skills to protect themselves in

sexually distress situations c. Encourage to make consortium of women SHGs for better

bargaining in availing credit d. None of the above

Answer – a

• For leadership development and to address women’s issues at village levels, Mahila Shakti Kendra scheme has been launched at the village level. Over 300 thousand



student volunteers are being sent out in 115 most backward districts under this new scheme. District Level Centres for Women are also being set up in 640 districts under this scheme, which will provide convergence at the district level for all initiatives related to women.

• Besides, Nai Roshni, a leadership development programme, is also operational for benefting the women belonging to minority communities

61 Which state has the highest net irrigated area to total cropped area

a. Gujarat b. Punjab c. Uttar Pardesh d. Kerala

Answer – c


1. USA, UK and EU account for around 90 per cent of the total IT-ITES exports



2. North East is in the special focus for BPO sector in India Select from the codes below


Answer – c

• India’s IT Business Process Management (IT-BPM) industry grew by 8.1 per cent in 2016-17 to US$ 139.9 billion (excluding e-commerce and hardware) . IT-BPM exports grew by 7.6 per cent to US$ 116.1 billion from US$ 107.8 billion during the same period. E-commerce market is estimated at US$ 33 billion

• USA, UK and EU account for around 90 per cent of the total IT-ITES exports. While, there are new challenges surfacing in these traditional geographies, demand from APAC, Latin America and Middle East Asia is growing and new opportunities are emerging for expanding in continental Europe, Japan, China and Africa.

• “To further promote this sector, many initiatives have been taken. These include the establishment of BPO Promotion and Common Services Centres to help create digital inclusion and equitable growth and provide employment to 1.45 lakh persons, mostly in the small towns; setting up a separate Northeast BPO promotion scheme as well”


1. Business services constitute the highest share in India’s service imports by value.

2. Travel constitutes the highest share in India’s service exports by value.


a. 1 only b. 2 only c. Both



d. None Answer – a

64 In the Consumer Price Index (CPI), Consumer Food Price Index (CFPI) is a subpart with about 39% share. Which of the following types of food constitutes the highest share in CFPI?

a. Cereals and products b. Milk and products c. Vegetables d. Pulses and products

Answer – a



65 World Investment Report is released by

a. World Bank b. IMF c. United Nations Conference on Trade and Development

(UNCTAD) d. G20

Answer – c As per the World Investment Report 2017 published by United Nations Conference on Trade and Development (UNCTAD), following a surge in foreign investment in 2015, global FDI flows fell by 2 per cent in 2016, to US $1.75 trillion, amid weak economic growth. Global FDI flows are projected to increase by about 5 per cent in 2017. 66 Recently the government has approved enhancing the buffer stock of pluses. Consider the following in this respect

1. Both domestic and imported pulses can form part of buffer stock

2. All schemes with nutrition component will utilize pulses from the buffer stock, including armed and paramilitary forces





Answer – c

• Government approved enhancement in buffer stock of pulses from 1.5 lakh MT to 20 Lakh MT to enable effective market intervention for moderation of retail prices. Accordingly, a dynamic buffer stock of pulses of upto 20 lakh tonnes has been built under the Price Stabilization Fund (PSF) Scheme through both domestic procurement as well as imports. Of this, 3.26 lakh MT has been released for market intervention and buffer management.

• Pulses from the buffer are being provided to States/UTs for PDS distribution, Mid-day Meal scheme, etc.

• In addition, pulses from the buffer are being utilized to meet the requirement of pulses by Army and Central Para-military Forces.

• Recently, it has also been decided that all Ministries/Departments having schemes with a nutrition component or providing food/catering/hospitality services would utilize pulses from the Central buffer for their operations.

67 Government has removed restrictions on export of edible oils recently. Which of the following oils are still banned from export?

1. Sunflower 2. Palm oil 3. Musturd oil


a. 1 and 2 b. 2 and 3



c. 1 and 3 d. All of them

Answer – d

• Export of edible oils was allowed only in branded consumer packs of up to 5 kg. with a minimum export price of USD 900 per MT.

• With a view to incentivizing domestic production this restriction has been removed on oil except for palm oil, mustard oil and sunflower oil


1. Disability Adjusted Life Years (DALYs) is a metric which is used to enhance productivity of differently-abled people

2. Pradhan Mantri Matru Vandana Yojana seeks to provide adequate rest to pregnant and lactating mothers through cash incentive

3. ICDS also takes care of lactating and pregnant women besides children


a. 1 and 2 b. 2 and 3 c. 1 and 3 d. All of them

Answer – b

• DALYs express the premature death and disability attributable to a particular cause, and are made up of two components: years of life lost (YLLs) and years of life lived with disability (YLDs). YLLs measure all the time people lose when they die prematurely, before attaining their ideal life expectancy. Ideal life expectancy is based on the highest life expectancy observed in the world for that



person’s age group. YLDs measure years of life lived with any short- or long-term condition that prevents a person from living in full health. They are calculated by multiplying an amount of time (expressed in years) by a disability weight (a number that quantifes the severity of a disability). Adding together YLLs and YLDs yields DALYs, a measure that portrays in one metric the total health loss a person experiences during their life..It is a collective effort of Indian Council of Medical Research (ICMR), PHFI and IHME, University of Washington

• The earlier Maternity Beneft Programme, for the eligible pregnant women and lactating mothers (PW&LM) has now been named as Pradhan Mantri Matru Vandana Yojana (PMMVY) a Centrally Sponsored Scheme, in January, 2017 for providing partial compensation for the wage loss in terms of cash incentive so that the woman can take adequate rest before and after delivery of the frst child.

• ICDS scheme aims at the holistic development of children upto 6 years of age and to meet nutritional needs of pregnant women and lactating mothers. Recently, rationalization, restructuring and continuation of four child centric schemes such as (a) Anganwadi Services (in place of ICDS) (b) Scheme for Adolescent Girls (SAG) (in place of SABLA) (c) Child Protection Services (in place of Integrated Child Protection Scheme) (d) National Crèche Scheme (in place of Rajiv Gandhi National Crèche Scheme) of the Ministry under ‘Umbrella Integrated Child Development Services’ Scheme has been approved by the Government

69 There is seasonality in food inflation compared to general inflation. In this context, consider the following about inflation pattern in India



1. Food inflation is highest in summer months. 2. Vegetables witness the highest change in inflation number

over a given year. Select from the codes below


Answer – c

• The price variations/fluctuations in items arising from supply shocks during certain periods of the year are characterized as seasonal in nature. General (Headline) inflation is more volatile than core; it fluctuates more due to large changes in the relative prices of certain food items vulnerable to supply shocks.



70 Consider the following about Baltic Dry Index

1. It is an index which speculates on freight trade 2. It has regained its earlier positions after its fall in 2008



Answer – a

• Baltic Dry Index, a freight index and a good proxy for the robustness of trade and shipping services which fell from a peak of 11,793 on 20 May 2008 to a low of 663 on 8 December 2008 and was in the red at 290 on 11 February 2016, improved since then and was at 1,164 on 17 January 2018



71 Consider the following about space services of India

1. Foreign exchange earnings has increased from both satellite launching and satellite mapping

2. Antrix is the arm of ISRO which deliberates India’s commercial space services for countries



Answer – b

• Foreign exchange earnings of India from export of satellite launch services increased noticeably.

• India’s share in global satellite launch services revenue has also increased to 1.1 per cent in 2015-16 from 0.3 per cent in 2014-15. Antrix foresees greater utilization of PSLV, GSLV and GSLV-Mk-III launch services by the international community for launching their Low Earth orbit (LEO) satellites.

• In Satellite Mapping, there has been a decline in the foreign exchange earnings in recent years, primarily due to free and open data policy adopted by many space



agencies. India is negotiating with the customers for renewal of contracts. Antrix currently enables direct reception and processing of data from Indian Remote Sensing (IRS) Satellites namely Resourcesat-2, Oceansat-2 and Cartosat-1 at International Ground Stations/ processing facilities outside India, while there are efforts on to rope in ASEAN for availing mapping services from ISRO.

Antrix Corporation Limited was incorporated as a private limited company owned by Government of India in September 1992 as a Marketing arm of ISRO for promotion and commercial exploitation of space products, technical consultancy services and transfer of technologies developed by ISRO. Another major objective is to facilitate development of space related industrial capabilities in India. 72 Consider the following about antimicrobial resistance

1. It is true for both fungi and virus. 2. India has set up National Surveillance System for Anti

Microbial Resistance Choose the correct code


Answer – c

• Antimicrobial resistance (AMR) occurs when microorganisms such as bacteria, viruses, fungi and parasites change in ways that render the medications used to cure the infections they cause ineffective. It occurs naturally but is facilitated by the inappropriate use of medicines, for example using antibiotics for viral infections such as cold or flu, or sharing antibiotics. Low-



quality medicines, wrong prescriptions and poor infection prevention and control also encourage development and spread of drug resistance.

• World Health Organization’s frst global report on AMR in 2014 reported that it is not a country specifc issue but a global concern that is jeopardizing global health security. AMR is of particular concern in developing nations, including India, where the burden of infectious diseases is high and healthcare spending is low

• India has fnalized a comprehensive and multi-sectoral National Action Plan aligning to the Global Action Plan and adopted a holistic and collaborative approach involving all stakeholders such as UN, WHO, FAO and other UN agencies towards prevention and containment of AMR

• Government of India has initiated series of actions including setting up a National Surveillance System for AMR, enacted regulations (Schedule-H-1) to regulate sale of antibiotics, brought out National Guidelines for use of antibiotics etc

73 Consider the following about Swach Bharat Mission Gramin

1. It is implemented by Ministry of Rural Development 2. Quality Council of India undertake surveys on toilet usage


A. 1 only B. 2 only C. Both D. None

Answer – b

• It is implemented by Ministry of Drinking Water and Sanitation

http://swachhbharatmission.gov.in/SBMCMS/about-us.htm



• “The surveys conducted by National Sample Survey Offce

(NSSO,2016) and Quality Council of India (QCI, 2017) on usage of toilets by the individuals who have access to toilets reported more than 90 per cent of individuals using toilets in 2016 and 2017.”

74 Consider the following about measurement of housing inflation

1. RESIDEX is released by National Housing Bank 2. House Price Index is released by RBI

Select the codes below


Answer – c

• The first official housing price index for the country named ‘NHB RESIDEX’ was launched in July, 2007 by the National Housing Bank (NHB). Overtime, the base year has been



revised to FY 2012-13 to ensure capturing the latest information and accurately reflect the current economic situation in the country. Currently, National Housing Bank is publishing NHB RESIDEX for 50 cities on quarterly basis with FY 2012-13 as base year. Among 50 cities covered are 18 State/UT capitals and 37 Smart Cities. NHB is not computing the composite all India housing price index as of now.

• Reserve Bank of India (RBI) began compiling a house price index (HPI) in 2007 with a quarterly HPI for Mumbai city (Base 2002-03=100). Since then, it has extended its coverage to 9 more cities, revised its base to 2010-11=100, and started publishing a composite All India HPI. RBI’s quarterly HPI is based on transactions data received from housing registration authorities in ten major cities.

75 Consider the following about the structure of agricultural growth

1. Share of livestock is increasing in Gross value added in agriculture in last decade

2. Share of crops is decreasing in gross value added in agriculture in last decade



Answer – c

• The share of livestock in GVA in agriculture has been rising gradually, the share of the crop sector in GVA has been on



the decline from 65 per cent in 2011-12 to 60 per cent in 2015-16.

• In 2002-03 the share of livestock in total farm incomes was just 4 per cent which increased to 13 per cent by 2012-13

76 Consider the following statements on tourism

1. Foreign tourist arrivals in India is less than outbound tourism of Indians

2. Domestic tourism is less than both foreign tourists and Indians tourists to abroad





Answer – a

• In India, the Tourism sector has been performing well with Foreign Tourist Arrivals (FTAs) growing at 9.7 per cent to 8.8 million and Foreign Exchange Earnings (FEEs) at 8.8 per cent to US$ 22.9 billion in 2016

• Outbound tourism has also picked up in recent years, with the number of departures of Indian nationals from India growing at 7.3 per cent during 2016 to 21.9 million from 20.4 million, in 2015. This is more than double the foreign tourist arrivals in India

• Domestic tourist visits grew by 12.7 per cent to 1,614 million in 2016 from 1,432 million in 2015. In terms of number of domestic tourist visits, Tamil Nadu, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Karnataka were the top 5 destination States, accounting for 61.3 per cent of total number of tourist visits in 2016.

77 The burning of crop residue is the most important factor for pollution in Delhi-NCR. In this respect, consider the following

1. It has increased after the use of combine harvesters began 2. Most of the crop residue is due to wheat 3. There exists a National Policy for the management of crop

residue Select the right code

a. 1 and 2 b. 1 and 3 c. 2 and 3



d. All of them Answer – b

• Crop residue burning is a practice that came with combine harvesters — machines that harvest, thresh and clean the separated grain at one go. It takes barely an hour and `1,000-1,500 to cover an acre of paddy using combines. The same job through traditional sickle-harvesting and manual threshing cum-cleaning requires about 10 men working a full day, and costing `4,500 or upwards. But combine-harvesting also leaves behind 14-15- inch long stalks in the felds that farmers have to, then, fnd a way to get rid of.

• According to a 2014 study by the Indian Agricultural Research Institute (IARI), in 2008-09 the country generated 620 million tonnes of crop residue, of which around 16 per cent was burnt on farms. Of which, 60 per cent was paddy straw, whereas wheat accounted for just 22 per cent. As per estimates, Punjab alone produces 19-20 million tonnes of paddy straw and about 20 million tonnes of wheat straw. About 85-90 per cent of this paddy straw is burnt in the feld, and, as the satellite images show, wheat straw is also increasingly being burnt in recent years.

• In 2014, the Union government had released the National Policy for Management of Crop Residue, which NGT directed the states to implement. Under this policy each state needs to have an action plan to stop residue burning by involving people at different levels—from communities to panchayats to state governments. It also calls for a mechanism to alert to cases of crop burning.

78 Consider the following about Panchayats

1. Their per capita spending is increasing consistently over the last few years

2. Their per capita spending in their jusrisdiction is higher than those of urban local bodies


a. 1 only




Answer – a

• The central and state governments spend on an average 15- 20 times more per capital than do RLGs. ULGs spend about 3 times more.

• More importantly, this gap has persisted over time despite per capita spending by RLGs increasing almost four-fold since 2010-11

79 Which of the following schemes can attract Indian diaspora for engagement in science and technology within India

1. VAJRA 2. INSPIRE Faculty Scheme 3. Ramalingaswami Re-entry Fellowship





Answer – d

• There are today more than 100,000 people with PhDs, who were born in India but are now living and working outside India (more than 91,000 in the U.S. alone). However, with the strength of India’s economy and growing anti-immigrant atmosphere in some Western countries, India has an opportunity to attract back more scientists

• There are a number of government programs such as the Ramanujan Fellowship Scheme, the Innovation in Science Pursuit for Inspired Research (INSPIRE) Faculty Scheme and the Ramalingaswami Re-entry Fellowship, that provide avenues to qualifed Indian researchers residing in foreign countries, to work in Indian institutes/universities, and the Visiting Advanced Joint Research Faculty Scheme (VAJRA).

There are many such schemes. Please go through the link below http://www.dbtindia.nic.in/funding-mechanism/fellowships-for-scientists/ http://pib.nic.in/newsite/PrintRelease.aspx?relid=77507 80 Consider the following about local bodies share in tax collection

1. For India’s most municipal corporations, their own tax base in total revenue is comparable to urban local bodies of advanced countries

2. Around 90% of the revenue of Gram Panchayats is devolved to them





Answer – c • At the third tier, India’s rural local governments (RLGs)

stand out on both counts. RLGs’ reliance on own resources is just 6 percent compared to 40 percent for third-tier governments in Brazil and Germany

• India’s urban local governments (ULGs), meanwhile, are much closer to international norms. Their own revenues as a share of total revenues are actually higher than Brazil and Germany, while their direct tax share (about 18 percent of total revenues) is only marginally lower than Brazil (19 percent) and somewhat lower

81 Consider the following about Patent applications

1. These have increased substantially for Indian residents abroad.

2. These have decreased within India. Select the right code

a. 1 only




Answer – c

• While India’s patent applications and grants have grown rapidly in foreign jurisdictions, the same is not true at home.

• While Indian residents were granted over 5000 patents in foreign offces in 2015, the number for resident flings in India was little over 800. The decrease in grants could have been due to a stricter examination process. But evidence suggests that there is a severe backlog and high rate of pendency for domestic patent applications. Reports indicate that due to manpower shortages there is a backlog of almost 2 lakh patents pending examination.

82 Which state has the lowest share of serives sector in its GDP

a. Delhi b. Sikkim c. Bihar d. Uttar Pardesh

Answer – b

• In terms of services GSVA share, Delhi and Chandigarh are at the top with over 80 per cent share, while Sikkim is at the bottom with 31.7 per cent share. In terms of services GSVA growth, Bihar is at the top and Uttar Pradesh at the bottom with 14.5 per cent and 7.0 per cent growth respectively in 2016-17

83 Consider the statements below

1. India’s public spending on science and technology is less than 1% of GDP



2. DRDO has the highest expenditure share in public research institutions of India.

3. Most of the research is done within universities against public institutions.



Answer – a • Investments in Indian science, measured in terms of Gross

Expenditure on R&D (GERD), have shown a consistently increasing trend over the years. GERD has tripled in the last decade in nominal terms – from Rs. 24,117 crores in 2004-05 to Rs. 85,326 crores in 2014-15 and an estimated Rs.1,04,864 crores in 2016-17 – and double in real terms. However, as a fraction of GDP, public expenditures on research have been stagnant – between 0.6-0.7 percent of GDP – over the past two decades.

• India is also distinctive in another dimension: its

universities play a relatively small role in the research activities of the country. However, publicly funded research in India concentrates in specialized research institutes under different government departments. This



leaves universities to largely play a teaching role – a decision that goes back to the 1950s.

84 The effects of climate chnge has been varied even in respect of change in temperature. In this respect consider the following

1. Uttar Pardesh and Punjab in general have become colder compared to half a decade ago

2. Jammu Kashmir has become more hotter compared to half a decade ago



Answer – c

• Temperature increases have been particularly felt in the North-East, Kerala, Tamil Nadu, Kerala, Rajasthan and Gujarat. Parts of India, for example, Punjab, Odisha and Uttar Pradesh have been the least affected.

• In contrast, extreme defciencies are more concentrated in Uttar Pradesh, North-East, and Kerala, Chattisgarh and Jharkhand.



85 Consider the following statements about agricultural GDP

1. Agricultural GDP rate in the decades following Green Revolution upto liberalisation was higher than the rate post global financial crisis

2. India’s agricultural GDP rate is more fluctuating than China’s after 1990s.

Select the correct answer below



a) 1 only b) 2 only c) 1 and 2 both d) none answer : b



Less fluctuation signifies lesser dependence on the vagaries of nature. 86 Consider the following statements

1. Service sector accounts for most of the employment in many of large economies except India and China.

2. India is increasing its share of employment in services in last decade faster than China.



Answer – a

• As per the ILO’s estimates, among the top 15 economies, the services sector accounted for more than two thirds of total employment in 2016 in most of them except India



and China, with India’s share of 30.6 per cent being the lowest.

• While China had the highest increase in the share of services employment (10.2 pp) during the period 2006 to 2016, increase in India was 5.2 pp

87 International Solar Alliance has programmes on a. Scaling Solar Applications for Agricultural Use b. Affordable Finance at Scale c. Scaling Solar Mini-grids d. All of them

Answer – d

• Presently ISA has three programmes a) Scaling Solar Applications for Agricultural Use, b) Affordable Finance at Scale c) Scaling Solar Mini-grids.

• In addition, ISA plans to launch two more programmes on Scaling Solar Rooftops, and Scaling E-Mobility & Storage.

• Strategic and fnancial partnerships have been entered into with the UNDP, the World Bank, EIB, EBRD and the Climate Parliament to further the mandate of ISA.

• United Nations including its organs are ISA’s strategic partners. ISA is also developing “Common Risk Mitigating Mechanism” (CRMM) for de-risking and reducing the fnancial cost of solar projects.

88 India has established eight Global Technology Watch Groups to tackle climate change in various areas. Under which mission/programme were they set up?

a. National Mission on Strategic Knowledge on Climate Change b. UNFCC c. UNEP



d. International Solar Alliance Answer – a

• As part of the mission on strategic knowledge on climate change, India has established 8 Global Technology Watch Groups in the areas of Renewable Energy Technology, Advance Coal Technology, Enhanced Energy Effciency, Green Forest, Sustainable Habitat, Water, Sustainable Agriculture and Manufacturing

• The mission is a sub part of National Action Plan on Climate Change, which includes eight national missions covering solar, energy effciency, agriculture, water, sustainable habitat, forestry, Himalayan ecosystem and knowledge.

89 In case of incipient climate change, which of the following impacts are likely

1. Kharif crops will witness more decline in productivity than rabi crops

2. Cereals are more immune to the climate change than pulses Select from the codes below


Answer – c

• There is varied susceptibility of different crops to temperature and precipitation.

• The clear pattern that emerges is that crops grown in rainfed areas— pulses in both kharif and rabi—are vulnerable to weather shocks while the cereals—both rice and wheat—are relatively more immune.



90 Consider the following about irrigation in India

1. Less than 50% of area is under irrigation in India 2. Maharashtra is among the least irrigated state 3. India is world’s most groundwater depleted country



Answer – d



• In the 1960s, less than 20 percent of agriculture was irrigated; today this number is in the mid-40s.

• The Indo-Gangetic plain, and parts of Gujarat and Madhya Pradesh are well irrigated. But parts of Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Chattisgarh and Jharkhand are still extremely vulnerable to climate change on account of not being well irrigated

• India pumps more than twice as much groundwater as China or United States. Indeed global depletion is most alarming in North India



91 Consider the following about investment in India

1. According to latest economic survey, it is more important to revive investments before savings.

2. Investment rate can be revived by solving Twin balance sheet problem, besides more public investment



Answer – c

• The notion that growth is constrained by saving has a long and illustrious pedigree going back to Ragnar Nurkse, Arthur Lewis, Rosenstein-Rodan and others. But it is clear that investment slowdowns are more detrimental to growth than saving slowdowns, a conclusion that was earlier reached by Rodrik. So, policy priorities over the short run must focus on reviving investment.

• India’s investment decline seems particularly diffcult to reverse, partly because it stems from balance sheet stress and partly because it has been usually large. Taken together, the results suggest a clear and urgent policy agenda which the government has launched; frst with the step-up in public investment since 2015-16; and now, given the constraints on public investment with policies to decisively resolve the TBS challenge.

92 Consider the following about tax status of states

1. Their total revenue constitutes only 60% of the taxes from their own sources with the rest coming from the Centre and other grants



2. Direct tax forms less than 10% in their total revenue Select the correct code


Answer – c

• At the second tier, all countries are broadly comparable in

their reliance on devolved resources, but India stands out as a country where the second tier (states) generate a very low share of its revenue from direct taxes: about 6 percent in India compared to 19 percent in Brazil in 2016 and a hefty 44 percent in Germany.



93 Rural Economic and Demographic Database is conducted by

a. NITI Aayog b. Ministry of Rural Development c. National Council for Applied Economic Research d. Observer Research Foundation

Answer – c

• There is little data on how rural local governments (RLGs) have fared over the past 25 years. There has been no comprehensive survey of how RLGs have fulflled their mandates.

• And the only database on the effectiveness of RLGs in providing goods and services is the National Council of Applied Economic Research’s (NCAER) Rural Economic and Demographic Database (REDS), which has not been updated since 2006-07



94 Consider the following about spending of rural local governments

1. Most of their funds go in irrigation works 2. Basic services like roads receive the least funds



Answer – d Given the overwhelming reliance on devolved funds which, to a large extent, are tied to sectors and schemes, it is not surprising that gram panchayats (GP) spend the bulk of such funds on earmarked areas, such as roads, other basic services, sanitation and community assets.The spending on purely local public goods like irrigation are not a priority out of such funds

95 Consider the following statemets



1. Most developed countries against emerging ones have higher proportion of direct tax as compared to indirect tax

2. Natural resource base contributing to non tax revenue may result in unresponsive government

Select the right code a. 1 only b. 2 only c. Both d. None

Answer – c

• Advanced countries collect a substantially higher proportion of their taxes as direct taxes than do emerging markets.Direct taxes account on average for about 70 percent of total taxes in Europe.

• The “aid” and “natural resource” curses illustrate what happens when countries rely on non-tax sources of government revenues: economic and institutional development is stunted


1. Fall in investments in India since global financial crisis is largely due to decline in corporate investments

2. Fall in savings after global financial crisis is largely due to fall in savings of households and government



Answer – c



• Private investment accounts for 5 percentage points out of the 6.3 percentage point overall investment decline over 2007-08 and 2015-16.

• The fall in saving, by about 8 percentage points over the same period, has been driven almost equally by a fall in household and public saving. The fall in household saving has in turn been driven by a fall in physical saving, partly offset by an increase in the holding of fnancial assets. Within the latter, there has been a shift from currency and bank deposits towards market instruments, viz. shares and debentures

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