Indian Economy

The external debt of India is the total debt the country owes to foreign creditors. The debtors can be the Union government, state governments, corporations, or citizens of India. The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.

- Commercial borrowings continued to be the largest component of external debt with a share of 37.4 per cent, followed by NRI deposits (24.1 per cent) and short-term trade credit (19.9 per cent).

- Statement 1 is incorrect: Non-Government Debt - 416.7 (US$ billion), Government Debt 104.5 (US$ billion).

- Statement 2 is also incorrect: US dollar-denominated debt continued to be the largest component of India's external debt with a share of 45.9 per cent at the end of December 2018, followed by the Indian rupee (24.8 per cent), SDR (5.1 per cent), yen (4.9 per cent) and euro (3.1 per cent).

* The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year.

* Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.

Statement 1 is not correct. The Government of India subsidizes fertilizers to ensure that fertilizers are easily available to farmers and the country remains self-sufficient in agriculture. This has been achieved largely by controlling the price of fertilizer and the amount of production. For example, as per the New Urea Policy of 2015, the government fixes the market price of urea.

Statement 2 is correct. Fertilizer production uses 1.2% of the world's total energy out of which 90% is used for ammonia production, which is a key ingredient in the production of nitrogen fertilizers. Ammonia can be produced from natural gas.

Statement 3 is correct. Sulfur is a major by-product of oil refining and gas processing. Most crude oil grades contain some sulfur, most of which must be removed during the refining process to meet strict sulfur content limits in refined products. Also, Sulphur is used in phosphoric acid fertilizer (There is a process known as 'The Wet Process' for producing the same).

Hence, option B is the correct answer.

Public investment in agriculture refers to government expenditures aimed at improving the agricultural sector, including infrastructure development, technological improvements, and providing institutional support.

Statement 1 is incorrect: Fixing the Minimum Support Price (MSP) is a policy decision, not an investment. While it affects the agricultural sector, it is not a direct public investment in terms of capital expenditure.

Statement 2 is correct: The computerization of Primary Agricultural Credit Societies (PACS) is a public investment because it involves government funds directed towards modernizing agricultural credit systems, enhancing efficiency, and accessibility for farmers.

Statement 3 is correct: Social Capital development is a public investment in agriculture, as it involves building networks and community-based resources that help farmers improve productivity and access to resources.

Statement 4 is incorrect: Free electricity supply is more of a subsidy, not a direct public investment in the form of capital expenditure.

Statement 5 is incorrect: Waiver of agricultural loans is a policy measure aimed at alleviating farmer debt but does not qualify as an investment in infrastructure or capital.

Statement 6 is correct: The setting up of cold storage facilities by the government is a direct public investment aimed at improving agricultural infrastructure and reducing post-harvest losses.

Hence, option C is the correct answer.

Statement 1 is incorrect: The oil palm tree (Elaeis guineensis) is native to West Africa, not Southeast Asia. However, Indonesia and Malaysia are now the largest producers of palm oil because the tree was introduced and widely cultivated there due to favorable tropical conditions.

Statement 2 is correct: Palm oil and its derivatives (such as palm kernel oil) are widely used in cosmetic and personal care products, including lipsticks, soaps, and perfumes. It acts as a moisturizing agent, emulsifier, and texture enhancer in these products.

Statement 3 is correct: Palm oil is a major feedstock for biodiesel production. Palm-based biodiesel (Palm Methyl Ester - PME) is used as a renewable fuel alternative in several countries, including Malaysia, Indonesia, and parts of Europe.

Statement 1 is Correct: The National Payments Corporation of India (NPCI) was established to facilitate retail payments and promote financial inclusion in India. They achieve this by 1. Developing and deploying innovative payment infrastructure like RuPay cards, UPI, etc. 2. Enabling participation of a wider range of players in the payments system, including non-bank entities. 3. Setting standards and guidelines to ensure secure and efficient electronic payments.

Statement 2 is Correct: RuPay is a domestic debit and credit card payment network launched by NPCI in India. It provides an alternative to international card networks like Visa and Mastercard. This domestic network can potentially lower transaction costs for merchants and banks compared to international schemes.

Therefore, both statement 1 and statement 2 are correct. Hence, option C is the correct answer.

Statement 1 is incorrect: Tax revenue as a percent of GDP in India has not steadily increased over the last decade. It has fluctuated — for instance, it rose during periods of strong economic growth but fell during years like 2019–20 and 2020–21 (due to slowdown and the pandemic). Hence, the trend is not steadily upward.

Statement 2 is incorrect: Fiscal deficit as a percent of GDP has also not steadily increased. It narrowed from around 4.5% in 2013–14 to about 3.4% in 2018–19, then spiked during the COVID-19 years (to around 9.2% in 2020–21) and has gradually declined since. Thus, there has been no steady increase over the decade.

Statement 1 is Correct: The Monetary Policy Committee (MPC) does decide the RBI's benchmark interest rates. This is its primary function, and it influences the cost of borrowing and lending in the economy.

Statement 2 is Incorrect: The MPC is a 6-member body, not 12. It includes the Governor of RBI and other members appointed by the government. The committee is not reconstituted every year, but members serve for specified terms.

Statement 3 is Incorrect: The MPC functions under the chairmanship of the Governor of RBI, not the Union Finance Minister.

Therefore, the correct answer is 1 only. Hence, option A is the correct answer.

Statement 1 is Incorrect: Under the PBPT Act, a transaction is specifically defined as benami if the person in whose name the property is held (the benamidar) is unaware of the transaction or denies knowledge of it. Therefore, lack of awareness does not exempt a transaction; rather, it is one of the conditions that characterizes a benami transaction.

Statement 2 is Correct: Section 5 of the Act provides that any property which is the subject matter of a benami transaction shall be liable to be confiscated by the Central Government.

Statement 3 is Incorrect: The Act provides for four authorities for the purpose of the Act: the Initiating Officer, the Approving Authority, the Administrator, and the Adjudicating Authority. Furthermore, the Act does provide for an appellate mechanism; any person aggrieved by an order of the Adjudicating Authority can appeal to the Appellate Tribunal, and subsequently to the High Court.

The Global Infrastructure Facility (GIF) is a partnership between governments, multilateral development banks, private sector investors, and financiers.

The GIF provides comprehensive project support by utilizing the combined expertise of its technical and advisory partners, including commercial banks and institutional investors. This ensures that well-structured and bankable infrastructure projects are brought to market sustainably, meeting the needs of governments and service users.

The GIF partnership is overseen by a Governing Council that supervises strategic programming and funds management, as well as the development of operational policies and procedures. Additionally, the Governing Council holds the GIF's management accountable for delivering on objectives and principles. The Governing Council is composed of representatives of funding and technical partners, as well as representatives of emerging markets and developing economies. It is co-chaired by the World Bank Group and a Funding Partner.

Statement 1 is Correct: Goods and Service Tax (GST) replaces multiple indirect taxes levied by central and state governments, creating a unified market. This can simplify tax compliance and potentially reduce the cost of goods and services for consumers.

Statement 2 is Incorrect: While GST can improve efficiency in tax collection, it's not a direct solution to the current account deficit, which is influenced by factors like trade balance and foreign investment.

Statement 3 is Incorrect: The impact of GST on economic growth is complex and depends on various other factors. It's unlikely to solely propel India's economy to overtake China's in the near future. Therefore, the most likely advantage of GST is 1 only.

Hence, option A is the correct answer.

Statement 1 is Incorrect: Share of agriculture in GDP has actually decreased since 1991, as the service sector has grown significantly.

Statement 2 is Correct: Share of India's exports in world trade has increased. India has become a more integrated part of the global economy, with a larger export footprint.

Statement 3 is Correct: FDI inflows have increased considerably. The liberalisation measures made India a more attractive destination for foreign investment.

Statement 4 is Correct: India's foreign exchange reserves have also increased enormously. This reflects India's improved ability to generate foreign currency and manage its external finances.

Therefore, the correct answer is 2, 3, and 4 only. Hence, option B is the correct answer.

Statement 1 is Correct: Small Finance Banks (SFBs) are niche banks specifically designed to cater to the underserved and unbanked sections of the population, including small businesses, marginal farmers, and micro-industries.

Statement 2 is Correct: SFBs focus on financial inclusion by providing credit facilities to small businesses and marginal farmers.

Statement 3 is Incorrect: In conclusion, While SFBs might indirectly contribute to rural development by providing credit to small businesses in rural areas, their primary objective is not explicitly to encourage young entrepreneurs to set up businesses there (option 3).

Hence, option A is the correct answer.

A scheme was launched by the Reserve Bank of India (RBI) on 13 June 2016, named Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme) for addressing the large stressed assets of the corporate sector with banks.

The S4A Scheme aims at the deep financial restructuring of big debted projects by allowing lenders (banks) to acquire equity of the stressed project.

In this context, the scheme makes the financial restructuring of large projects at the same time helping the lender's ability to deal with such stressed assets. It is intended to restore the flow of credit to critical sectors including infrastructure.

Hence, option B is the correct answer.

E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price through smooth marketing.

Statement 1 is Correct: Pan-India electronic trading portal (Correct) This is a core feature of NAM. It creates a unified online platform where farmers can connect with buyers from across the country, eliminating geographical restrictions and potentially increasing market access.

Statement 2 is Correct: Access to nationwide markets and better prices (Correct) NAM allows farmers to see prices prevailing in various mandis (wholesale markets) across the country. This transparency empowers them to choose the market offering the best price for their produce, potentially fetching them higher returns compared to traditional, localised markets.

Therefore, the correct answer is 1 and 2 both are correct.Hence, option C is the correct answer.