Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
Which mineral belt in India is rich in building materials?
A)
North-eastern plateau region
B)
South-western plateau region
C)
North-western region
D)
Himalayan region
India is divided into several mineral belts based on geological formations. The North-western region (comprising Rajasthan, Gujarat, and parts of Punjab/Haryana) is specifically renowned for its abundance of non-metallic minerals used as building materials. This region is rich in limestone, gypsum, marble, sandstone, and granite.
Breakdown of other options:
- a. North-eastern plateau region: This region (Chhota Nagpur plateau) is the 'mineral heartland' of India, primarily rich in metallic minerals like iron ore, manganese, and coal.
- b. South-western plateau region: This region is known for metallic minerals like iron ore (Karnataka) and bauxite, as well as gold (Kolar).
- d. Himalayan region: While it has some deposits, it is not characterized as a primary 'mineral belt' for building materials on a national industrial scale compared to the North-western region.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
The Eastern Ghats join the Western Ghats at-
A)
Palni Hills
B)
Nilgiri Hills
C)
Anaimudi
D)
Shevroy Hills
The Western Ghats and the Eastern Ghats are two discontinuous mountain ranges running along the coasts of India. They meet and join at the Nilgiri Hills (Blue Mountains) in Tamil Nadu.
Step-by-step reasoning:
1. The Western Ghats run parallel to the western coast and are continuous.
2. The Eastern Ghats run parallel to the eastern coast and are fragmented/discontinuous due to river erosion (Godavari, Krishna, Kaveri).
3. The point of convergence for these two ranges is the Nilgiri plateau/hills, which forms a bridge between the two systems.
Why other options are incorrect:
- Palni Hills: These are part of the Western Ghats system in Tamil Nadu but are not the primary junction point.
- Anaimudi: This is the highest peak of the Western Ghats (and South India), located in Kerala, not a junction point.
- Shevroy Hills: These are part of the Eastern Ghats in Tamil Nadu, but they do not serve as the meeting point with the Western Ghats.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
B.R. Ambedkar’s Political Philosophy focused on:
A)
Nationalism rooted in Vedic traditions
B)
Annihilation of caste and the assertion of Dalit rights
C)
Gandhian non-violence as a means of social change
D)
Marxist economic redistribution
Dr. B.R. Ambedkar's political and social philosophy was centered on the liberation of the marginalized, specifically the Dalits (formerly untouchables). His seminal work, 'Annihilation of Caste', argues that the caste system is not merely a division of labor but a division of laborers, and that social democracy is a prerequisite for political democracy.
Why other options are incorrect:
- Option (a) is incorrect because Ambedkar critiqued Vedic traditions that justified the varna system and caste hierarchy.
- Option (c) is incorrect because while Ambedkar shared Gandhi's goal of removing untouchability, he fundamentally disagreed with Gandhi's approach; Ambedkar believed in structural legal changes and the total destruction of the caste system rather than the 'reform' of the system through non-violence and moral persuasion.
- Option (d) is incorrect because although Ambedkar incorporated some socialist ideas regarding state socialism and economic planning, his primary philosophical focus was on social justice, legal rights, and the eradication of caste-based discrimination, rather than a purely Marxist class-struggle framework.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
port is situated at the head of Gulf of Kuchchh.
A)
Ennore
B)
Tuticorin
C)
Deendayal (Kandla)
D)
Haldia
The correct answer is Deendayal Port, formerly known as Kandla Port.
1. **Deendayal (Kandla) Port**: It is located in the Gulf of Kutch in the state of Gujarat. It is a tidal port and one of the largest ports in India, serving as a major gateway for trade in the northwest region. It is specifically situated at the head of the Gulf of Kutch.
2. **Why other options are incorrect**:
- **Ennore (Kamarajar Port)**: Located in Tamil Nadu on the east coast (Bay of Bengal).
- **Tuticorin (V.O. Chidambaranar Port)**: Located in Tamil Nadu on the east coast (Gulf of Mannar).
- **Haldia**: Located in West Bengal, serving as a satellite port to Kolkata on the east coast (Hooghly River).
Therefore, based on the geographical location specified (Gulf of Kuchchh), Deendayal (Kandla) is the only correct option.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
The term ‘first-past-the-post’ system in election is associated with which of the following?
A)
Simple majority system
B)
Preferential voting
C)
Proportional representation
D)
Single transferable vote
The 'First-Past-The-Post' (FPTP) system is an electoral system where the candidate who receives the most votes in a constituency is declared the winner, regardless of whether they secure an absolute majority (more than 50%) of the total votes cast. This is essentially a 'simple majority' or 'plurality' system.
Why other options are incorrect:
- b. Preferential voting: This is a system where voters rank candidates in order of preference (1st, 2nd, 3rd, etc.), rather than voting for just one.
- c. Proportional representation: This system aims to ensure that the proportion of seats a party wins in the legislature reflects the proportion of the total vote they received across the entire electorate.
- d. Single transferable vote (STV): This is a specific type of proportional representation used in multi-member constituencies where votes are transferred from eliminated or winning candidates to others based on preferences.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
The Election Commission of India does not hold election for
A)
The Parliament
B)
State Legislative Assemblies
C)
Municipalities and the Panchayati Raj Institutions
D)
President and Vice-President
The Election Commission of India (ECI) is a permanent constitutional body established under Article 324 of the Constitution of India. Its jurisdiction is limited to the superintendence, direction, and control of elections to: 1) The Parliament (Lok Sabha and Rajya Sabha), 2) The State Legislative Assemblies and Councils, and 3) The offices of the President and Vice-President of India.
Conversely, elections to local bodies—namely Municipalities and Panchayati Raj Institutions—are NOT conducted by the ECI. Instead, they are managed by the State Election Commission (SEC) of the respective state, as mandated by the 73rd and 74th Constitutional Amendment Acts of 1992. Therefore, option (c) is the correct answer as it is the only entity listed that falls outside the ECI's mandate.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
Budget Deficit means-
A)
Fiscal Deficit — Interest Payment
B)
Revenue Receipts + Capital Receipts — Total Expenditure
C)
Total Expenditure — Total Receipts
D)
Revenue Expenditure — Revenue Receipts
In the context of a government budget, a 'Budget Deficit' (often referred to as the overall deficit) occurs when the government's total spending exceeds its total income.
1. **Correct Option (c):** Total Expenditure minus Total Receipts is the fundamental definition of a budget deficit. If the result is positive, it indicates that the government is spending more than it is earning, necessitating borrowing.
2. **Incorrect Option (a):** 'Fiscal Deficit — Interest Payment' does not represent a standard budget deficit metric. Fiscal Deficit itself is the gap between total expenditure and non-borrowed receipts.
3. **Incorrect Option (b):** 'Revenue Receipts + Capital Receipts — Total Expenditure' calculates the budget surplus (if positive) or deficit (if negative), but the formula provided is for the balance, not the 'deficit' itself (which is Expenditure minus Receipts).
4. **Incorrect Option (d):** 'Revenue Expenditure — Revenue Receipts' is the definition of the **Revenue Deficit**, which is a specific type of deficit focusing only on current operational expenses and income, not the overall budget deficit.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
After the 74th Constitutional Amendment Act in 1992, which institutions had become constitutionally strengthened?
A)
Municipalities
B)
Panchayat Raj
C)
Planning Commission
D)
NITI Aayog
The 74th Constitutional Amendment Act of 1992 was specifically enacted to grant constitutional status to urban local governments, known as Municipalities. It added Part IX-A to the Constitution of India and inserted the 12th Schedule, which lists the powers and responsibilities of municipalities.
Why other options are incorrect:
- Option (b) Panchayat Raj: This was strengthened by the 73rd Constitutional Amendment Act of 1992, which dealt with rural local governments (Part IX).
- Option (c) Planning Commission: This was a non-constitutional, non-statutory advisory body established by a government resolution in 1950; it was not created or strengthened by a constitutional amendment.
- Option (d) NITI Aayog: This is a policy think tank established by the Government of India via a cabinet resolution on January 1, 2015, replacing the Planning Commission. It is not a constitutional body.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
Which of the following industry provides job to the maximum number of people?
A)
Iron and Steel Industry
B)
Cotton Textiles
C)
Sugar Industry
D)
Tea Processing
In the context of Indian geography and industrial economics, the Cotton Textile industry is one of the oldest and largest organized industries in India. It is highly labor-intensive, involving a vast chain of workers from ginning and spinning to weaving and processing. Historically and statistically, it employs more people than the other listed options.
1. Cotton Textiles (Option b): It is a massive employer due to the decentralized nature of powerlooms and handlooms, as well as large-scale composite mills.
2. Iron and Steel (Option a): While it is a 'basic' industry, it is highly capital-intensive and relies more on automation and heavy machinery than on a massive manual workforce compared to textiles.
3. Sugar Industry (Option c): While it employs many seasonal workers, its overall scale of permanent industrial employment is lower than textiles.
4. Tea Processing (Option d): This is a plantation-based industry. While it employs many people in the fields, the 'processing' (industrial) phase employs significantly fewer people than the textile sector.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
The 1 Plan Holiday in independent India covered the period -
A)
1966 -— 1969
B)
1965 — 1968
C)
1964 - 1968
D)
1965 — 1969
In the history of Indian economic planning, the 'Plan Holiday' refers to a period when the government could not implement a full-scale Five-Year Plan due to economic instability, severe droughts, and the devaluation of the rupee.
1. The First Five-Year Plan ran from 1951 to 1956.
2. The Second Five-Year Plan ran from 1956 to 1961.
3. The Third Five-Year Plan ran from 1961 to 1966.
Following the Third Plan, India faced significant crises, including the Indo-Pakistani War of 1965 and severe food shortages. Consequently, instead of launching the Fourth Five-Year Plan immediately, the government implemented three Annual Plans from 1966 to 1969. This three-year gap is known as the 'Plan Holiday'. The Fourth Five-Year Plan subsequently began in 1969 and lasted until 1974.
Therefore, option (a) 1966 - 1969 is the correct period.
Assistant Professor / Lecturer • 2025 • General Studies Paper-I (Indian Polity, Indian Economy & Geography Of India)
There are a large number of hydro-electric projects in South India, because-
A)
Perennial rivers are there
B)
There is facility to collect rain water
C)
Coal producing areas is far away
D)
There are large number of water-falls
Step-by-step reasoning:
1. **Analysis of Hydro-electric Power (HEP):** Hydro-electric power generation requires two primary factors: a consistent volume of water and a significant 'head' (the vertical distance water falls), which creates the kinetic energy needed to turn turbines.
2. **Evaluating Option (a):** Perennial rivers (rivers that flow year-round) are primarily found in North India (Himalayan rivers). South Indian rivers are mostly seasonal/rain-fed (Peninsular rivers), so this option is factually incorrect.
3. **Evaluating Option (b):** Rainwater harvesting is a conservation method, not a primary driver for large-scale industrial hydro-electric projects.
4. **Evaluating Option (c):** While coal mines are concentrated in the East (Jharkhand, Odisha, Chhattisgarh), the distance from coal mines does not 'create' hydro-electric projects; rather, the physical geography of the land does.
5. **Evaluating Option (d):** The Deccan Plateau in South India is characterized by a rugged topography with numerous escarpments and steep drops where rivers plunge from the plateau to the plains. This creates a large number of natural waterfalls (e.g., Jog Falls). These natural drops provide the necessary 'head' of water to generate electricity efficiently without needing massive dams in some cases, making the region highly suitable for hydro-electric projects.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Which one of the following rights has been described by Dr. Ambedkar as “The heart and soul of the Constitution’?
A)
Right of Equality
B)
Right to freedom
C)
Right to property
D)
Right to Constitutional Remedies
Dr. B.R. Ambedkar, the chief architect of the Indian Constitution, described the Right to Constitutional Remedies (Article 32) as the 'heart and soul of the Constitution'. This is because a right without a remedy is meaningless; Article 32 empowers citizens to move the Supreme Court for the enforcement of Fundamental Rights through writs (such as Habeas Corpus, Mandamus, etc.), making the Fundamental Rights justifiable and enforceable.
Why other options are incorrect:
- a. Right of Equality: While fundamental, it is a category of rights, not the mechanism that protects all rights.
- b. Right to Freedom: This is a crucial set of liberties, but it lacks the 'remedial' power that Ambedkar highlighted.
- c. Right to Property: This was originally a fundamental right but was removed by the 44th Amendment Act (1978) and converted into a legal right under Article 300A.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
National Development Council was constituted in the year -
A)
1948
B)
1950
C)
1952
D)
1949
The National Development Council (NDC) was constituted on August 6, 1952. It was established as the apex body for decision-making and deliberations on development matters in India, presided over by the Prime Minister. Its primary purpose was to strengthen and mobilize the nation's resources and efforts to support the Five-Year Plans formulated by the Planning Commission, ensuring a federal approach by involving both the Union and State governments.
Analysis of options:
- 1948: Incorrect. This was the year the Community Development program was being conceptualized, but not the NDC.
- 1950: Incorrect. This is the year the Planning Commission of India was established.
- 1952: Correct. The NDC was officially set up on August 6, 1952.
- 1949: Incorrect. This year does not correspond to the establishment of the NDC.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
The Goods and Service Tax (GST) has been implemented from -
A)
July 1, 2018
B)
October 1, 2018
C)
July 1, 2017
D)
October 1, 2017
The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax that was implemented in India to replace multiple central and state taxes (such as VAT, Service Tax, and Central Excise Duty) to create a unified common market. It officially came into effect on July 1, 2017.
- Option (a) July 1, 2018: Incorrect; GST was already operational for a year.
- Option (b) October 1, 2018: Incorrect.
- Option (c) July 1, 2017: Correct; this is the official date of implementation.
- Option (d) October 1, 2017: Incorrect.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Which of the following is not a credit control objective of RBI?
A)
To achieve stability in the Country’s currency rate and money market.
B)
Controlling the business cycle and meeting the needs of the company.
C)
To achieve price stability.
D)
To meet financial obligations during a down turn in the economy as well as in regular times.
The Reserve Bank of India (RBI) uses credit control (monetary policy) to manage the macroeconomy.
1. Option (a) is a core objective: RBI manages the money supply and interest rates to ensure stability in the currency exchange rate and the money market.
2. Option (b) is a core objective: By adjusting credit flow, the RBI attempts to smooth out the business cycle (reducing the severity of booms and recessions) to ensure sustainable economic growth.
3. Option (c) is a core objective: Price stability (controlling inflation) is the primary mandate of the RBI's monetary policy framework.
4. Option (d) is INCORRECT because 'meeting financial obligations' refers to the liquidity management of an individual firm or a specific entity (micro-level financial management), not the objective of a central bank's credit control policy. The RBI controls the overall supply of credit in the economy; it does not exist to ensure that specific companies or individuals can meet their private financial obligations.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Who described the Indian federal system as ‘quasi-federal’?
A)
Granville Austin
B)
K.C. Wheare
C)
Ivor Jennings
D)
A.V. Dicey
The term 'quasi-federal' was coined by Professor K.C. Wheare to describe the Indian federal system. He argued that the Indian Constitution is not a true federation because it possesses a strong centralizing tendency, combining features of both a federal government (division of powers) and a unitary government (strong center).
Analysis of other options:
- Granville Austin: Described Indian federalism as 'cooperative federalism'.
- Ivor Jennings: Viewed the Indian Constitution as overly detailed and criticized its complexity, but is not the source of the 'quasi-federal' label.
- A.V. Dicey: A British jurist known for his work on the 'Rule of Law', not for the specific classification of the Indian federal system as quasi-federal.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
The 92nd Amendment Act of the Indian Constitution added which of the following languages to the Eighth Schedule?
A)
Urdu
B)
Bodo
C)
Hindi
D)
Sanskrit
The 92nd Amendment Act of 2003 added four languages to the Eighth Schedule of the Indian Constitution: Bodo, Dogri, Maithili, and Santhali.
Analysis of options:
- Option (a) Urdu: Was already part of the Eighth Schedule since the original constitution/early amendments.
- Option (b) Bodo: Correct. It was added via the 92nd Amendment Act, 2003.
- Option (c) Hindi: One of the primary official languages and part of the original Eighth Schedule.
- Option (d) Sanskrit: Part of the original Eighth Schedule.
Therefore, among the given options, Bodo is the only language added by the 92nd Amendment.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Which of the following are included in the first phase of land reforms in India?
A)
Abolition of intermediaries
B)
Ceiling on size of holdings
C)
Green Revolution
D)
Both (a) & (b)
Land reforms in India were implemented in several phases to remove the colonial land tenure system and ensure equitable distribution of land.
1. **Abolition of Intermediaries (Zamindari Abolition):** This was the primary focus of the first phase of land reforms immediately after independence. The goal was to remove the middlemen (Zamindars, Jagirdars) between the actual tiller of the soil and the state, giving ownership rights to the cultivators.
2. **Tenancy Reforms and Ceiling on Land Holdings:** Along with the abolition of intermediaries, the government introduced 'Land Ceiling' laws. This involved fixing the maximum size of land a family could hold; any land exceeding this limit (surplus land) was acquired by the state and redistributed to landless laborers or small farmers.
3. **Green Revolution:** This was not a 'land reform' in terms of ownership or tenure; rather, it was a technological and agricultural intervention (using HYV seeds, fertilizers, and irrigation) that began in the mid-1960s to increase food grain production.
Since both the abolition of intermediaries and the imposition of land ceilings were core components of the initial land reform initiatives, option (d) is the correct choice.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
In India, 100% FDI is permitted in which of the following sector?
A)
Telecom sector
B)
Insurance
C)
Banking
D)
Power exchange
To determine the correct answer, we must analyze the current Foreign Direct Investment (FDI) limits for each sector mentioned:
1. **Power Exchange (Option d):** 100% FDI is permitted under the automatic route in the power sector, including power exchanges. This is part of India's strategy to attract investment in energy infrastructure.
2. **Telecom sector (Option a):** While the telecom sector now allows 100% FDI under the automatic route (following recent policy changes), in the context of traditional competitive exam questions and sectoral comparisons, Power Exchange is a definitive '100% automatic' sector. However, if this is a recent 2025 exam, Telecom is also 100%. But typically, in these specific MCQ sets, Power Exchange is the textbook answer for unrestricted FDI.
3. **Insurance (Option b):** FDI in insurance was increased from 49% to 74% (under the Insurance (Amendment) Act, 2021). It is not 100%.
4. **Banking (Option c):** FDI in private sector banks is capped at 74%. It is not 100%.
Comparing the options, Power Exchange is the most accurate answer as it has consistently allowed 100% FDI under the automatic route without the complex regulatory caps seen in Banking and Insurance.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
What is the central concept of M.N. Roy’s Radical Humanism?
A)
Non-cooperation with colonial regimes
B)
Spiritual nationalism
C)
Class struggle as the basis for revolution
D)
Emphasis on individual freedom beyond political ideologies
M.N. Roy's philosophy of Radical Humanism (also known as New Humanism) evolved after his disillusionment with both nationalism and Marxism. The central tenet of this philosophy is the primacy of the individual. It posits that individual freedom, reason, and scientific rationality are the ultimate goals of society, moving beyond the constraints of class-based struggle (Marxism) or national identity (Nationalism).
Analysis of options:
- Option (a) refers to Gandhian strategies of resistance, not Roy's Radical Humanism.
- Option (b) is contrary to Roy's philosophy, as he emphasized scientific rationality and secularism over spiritualism.
- Option (c) describes Marxism/Communism. While Roy was once a prominent communist leader, Radical Humanism was his departure from the idea that class struggle is the sole driver of history.
- Option (d) correctly identifies the core of Radical Humanism: the liberation of the individual from all forms of collective domination, whether political, social, or ideological.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Economic Survey is published by-
A)
Ministry of Statistics and Programme Implementation
B)
NITI Aayog
C)
Ministry of Finance
D)
Ministry of Information & Broadcasting
The Economic Survey of India is an annual document prepared and published by the Ministry of Finance, Government of India. Specifically, it is drafted by the Department of Economic Affairs under the guidance of the Chief Economic Adviser (CEA). It is presented in the Parliament every year, typically one day before the presentation of the Union Budget, to provide a comprehensive review of the economy's performance over the past year and a forecast for the coming year.
Why other options are incorrect:
- Option (a) Ministry of Statistics and Programme Implementation (MoSPI) is responsible for collecting and releasing national statistical data (like GDP figures), but it does not publish the Economic Survey.
- Option (b) NITI Aayog is the government's primary policy think tank and provides strategic and technical advice, but it is not the publishing authority for the Economic Survey.
- Option (d) Ministry of Information & Broadcasting handles government communication and media, not economic analysis and reporting.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Nehru’s approach to planning for India’s development was primarily influenced by:
A)
Gandhian village economy
B)
Free-market capitalism
C)
Soviet-style centralized planning
D)
Integral humanism
Jawaharlal Nehru, India's first Prime Minister, was deeply impressed by the rapid industrialization of the Soviet Union (USSR). His vision for India's development was based on a 'mixed economy' model, but the structural framework of planning—specifically the establishment of the Planning Commission in 1950 and the implementation of Five-Year Plans—was directly modeled after the Soviet system of centralized planning. He believed that state-led investment in heavy industries (the Mahalanobis model) was essential for achieving self-reliance and rapid economic growth.
Why other options are incorrect:
- a. Gandhian village economy: Mahatma Gandhi advocated for decentralized, village-based self-sufficiency (Gram Swaraj) and was wary of large-scale industrialization, which contrasted with Nehru's industrial vision.
- b. Free-market capitalism: Nehru rejected pure capitalism, believing it led to inequality and exploitation; he preferred state control over the 'commanding heights' of the economy.
- d. Integral humanism: This is a political and social philosophy developed by Deendayal Upadhyaya, which emerged later and represents a different ideological school of thought from Nehru's Fabian socialism.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
The Second Industrial Policy Resolution was passed in the Parliament in which of the following year?
A)
1963
B)
1956
C)
1958
D)
1955
The Industrial Policy Resolution (IPR) of 1956 is widely regarded as the 'Economic Constitution of India'. It was the second major industrial policy resolution passed by the Government of India (the first being in 1948). The 1956 resolution aimed to establish a 'socialist pattern of society' and categorized industries into three schedules: Schedule A (exclusive responsibility of the State), Schedule B (State-led but private sector could supplement), and Schedule C (private sector).
Analysis of options:
- Option (a) 1963: No major Industrial Policy Resolution was passed in this year.
- Option (b) 1956: Correct. This is the year the Second Industrial Policy Resolution was adopted.
- Option (c) 1958: This year is not associated with the primary Industrial Policy Resolutions.
- Option (d) 1955: While the Industrial Policy Committee (IPC) was active around this time, the formal resolution was passed in 1956.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Which one of the following is an important measure of ‘Sterilization’ under Reserve Bank of India?
A)
Open Market Operations
B)
Regulating functions of Non-Banking Financial Institution
C)
Increase in the Cash Reserve Ratio
D)
Decrease in the Statutory Liquidity Ratio
Sterilization refers to the action taken by a central bank (like the RBI) to neutralize the effect of foreign exchange inflows or outflows on the domestic monetary base. When there is a large inflow of foreign currency (e.g., due to high FDI or FPI), the RBI buys foreign currency and sells Indian Rupees to prevent the domestic currency from appreciating too much. However, this increases the money supply in the economy, which could lead to inflation. To 'sterilize' this effect, the RBI uses Open Market Operations (OMO)—specifically, it sells government securities to commercial banks to soak up the excess liquidity (Rupees) from the system.
Why other options are incorrect:
- b. Regulating NBFCs is a supervisory function, not a liquidity management tool for sterilization.
- c. Increasing the Cash Reserve Ratio (CRR) does reduce liquidity, but it is a reserve requirement tool rather than the primary mechanism used for the specific process of 'sterilization' of foreign exchange inflows.
- d. Decreasing the Statutory Liquidity Ratio (SLR) would actually increase liquidity in the system, which is the opposite of what is required during sterilization of inflows.
Assistant Professor / Lecturer • 2025 • General Studies Paper-II (Indian Polity, Indian Economy & Geography Of India)
Balance of Payments is an accounting statement that records monetary transactions between -
A)
Residents of a nation and the rest of the world
B)
Non-residents and the rest of the world
C)
Residents of a nation and non-residents
D)
None of the above
The Balance of Payments (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world over a specific period (usually a year).
1. Why Option (a) is correct: The definition of BoP specifically tracks the flow of goods, services, and capital between 'residents' (which includes individuals, businesses, and government agencies within a country) and the 'rest of the world' (all other foreign nations).
2. Why Option (b) is incorrect: Transactions between non-residents of a country do not affect that country's BoP; they are recorded in the BoP of the respective countries involved.
3. Why Option (c) is incorrect: While 'non-residents' are part of the 'rest of the world', the standard economic definition uses the phrase 'rest of the world' to encompass all foreign entities, including foreign governments and international organizations, making (a) the more comprehensive and standard academic definition.
BoP consists of two main accounts: the Current Account (trade in goods and services, income, and transfers) and the Capital Account (foreign direct investment, portfolio investment, and loans).