2020

Steel slag can be used for several purposes, and all of the options listed are valid applications.

Statement 1 is correct. Steel slag is a common and cost-effective material for use in road base construction due to its high durability, strength, and drainage properties.

Statement 2 is correct. Crushed steel slag can be used as an amendment for agricultural soil. It can improve drainage, provide some essential nutrients, and even help suppress weeds.

Statement 3 is correct. Steel slag can be partially substituted for some raw materials in cement production, reducing the need for quarrying and lowering the environmental impact of cement manufacturing.

Therefore, the correct answer is 1, 2, and 3.

Pair 1 is incorrect. The Mekong River originates in the Tibetan Plateau and flows through China, Myanmar, Laos, Thailand, Cambodia, and Vietnam before emptying into the South China Sea, not the Andaman Sea.


Pair 2 is incorrect. The Thames River flows entirely within England and empties into the North Sea, not the Irish Sea.


Pair 3 is correct. The Volga River is the longest river in Europe. It originates in Russia and flows into the Caspian Sea.


Pair 4 is correct. The Zambezi River originates in Zambia and flows through Angola, Namibia, Botswana, Zimbabwe, and Mozambique before emptying into the Indian Ocean.


So, the correct pairs are 3 and 4. Hence, option C 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.

This question concerns sugarcane propagation methods and comparative performance of different sett types. Statement 1 states that substantial saving in seed material is achieved when bud chip settlings are raised in a nursery and transplanted. Nursery-raised bud chip settlings use small propagules derived from a single bud or bud chips, thereby multiplying planting material more efficiently than using large setts. This reduces the quantity of seed cane required per hectare and is therefore correct from the standpoint of seed economy and modern propagation technology.

Statement 2 asserts that when direct planting of setts is done, germination percentage is better with single-budded setts than with setts with many buds. In reality, larger setts with multiple buds generally have higher germination and tillering potential under direct planting, because they contain more reserve food and meristematic tissue; single-budded setts may have lower germination when directly placed in the field. Therefore statement 2 is incorrect. Statement 3 claims that under bad weather during direct planting, single-budded setts have better survival than large setts; this is contrary to agronomic experience because larger setts tolerate adverse conditions better due to greater reserves, so statement 3 is incorrect.

Statement 4 states that sugarcane can be cultivated using settlings prepared from tissue culture. Tissue culture raised planting material is an established method to produce disease-free, true-to-type sugarcane plantlets that are subsequently hardened and used as settlings or transplants. This practice is part of modern seed production and nursery techniques and is correct. Combining the correct statements yields 1 and 4 only, which corresponds to option c.

Exam traps include confusing nursery transplanting advantages with direct planting responses and assuming single-budded setts always outperform larger setts; careful reading of physiological reserves and propagation science resolves the options. The final takeaway is that nursery bud chip multiplication and tissue culture derived settlings are resource-efficient and modern propagation tools, while single-budded setts are not superior for direct planting or in adverse conditions.

Statement 1 is Correct: Crop diversification involves growing a variety of crops in the same area, which enhances soil health, increases biodiversity, and breaks pest cycles, reducing the need for chemical pesticides.

Statement 2 is Correct: Legume intensification refers to the increased cultivation of legumes, which fix atmospheric nitrogen through symbiotic bacteria (Rhizobium), naturally enriching soil fertility and reducing reliance on synthetic fertilizers.

Statement 3 is Correct: A tensiometer measures soil moisture tension, allowing farmers to practice precision irrigation. This conserves water and prevents the leaching of soil nutrients caused by over-watering.

Statement 4 is Incorrect: While vertical farming has certain advantages such as reduced land use and controlled pest management, it is not considered eco-friendly in the Indian context. It relies heavily on artificial lighting and climate control systems, which consume large amounts of electricity — predominantly generated from fossil fuels in India. This high energy footprint undermines its eco-friendly credentials, making it unsuitable to be classified as an eco-friendly agricultural practice in the Indian context.

Statement 1 is correct: Zero tillage is a method of farming that involves sowing crop seeds directly into the soil without disturbing it. This method has several advantages. In zero tillage, the residue of the previous crop is left on the field, which acts as a natural mulch, reducing soil erosion and improving soil fertility. Therefore, there is no need to burn the residue of the previous crop before sowing wheat.

Statement 2 is correct: In zero tillage, seeds are directly planted into the soil, eliminating the need for a nursery of rice saplings. This not only saves time and labor but also reduces the cost of cultivation.

Statement 3 is correct: Carbon sequestration refers to the process of capture and long-term storage of atmospheric carbon dioxide. In zero tillage, the carbon in the crop residue is returned to the soil, which helps in carbon sequestration.


Therefore, all three statements are correct.

Statement 1 is correct. Like most of the pulses in India, Black gram pulse too can be cultivated both in kharif as well as in rabi season in India.

Statement 2 is incorrect. Chickpea pulse, also known as Chana, is the most dominant pulse produced in India. It contributes around 40% of the total pulse production in India.

Statement 3 is incorrect. Both kharif and rabi pulse production have generally shown an increasing trend over the last three decades, largely due to government initiatives and technological advancements. Rabi pulses, which make up a larger share of the total production (more than 60%), have shown a substantial increase. Hence, option A is the correct answer.

The description provided matches the requirements for cotton cultivation.

- Subtropical nature and frost sensitivity: Cotton is a subtropical crop and is sensitive to frost. A hard frost can damage the cotton plants, making them unsuitable for cold regions. - Frost-free days: Cotton requires at least 210 frost-free days, which is typical for its growth cycle. It thrives in regions with a long growing season, free from frost. - Rainfall requirement: Cotton needs 50 to 100 cm of rainfall. The crop is drought-tolerant, but it still requires moderate rainfall for optimal growth. - Soil type: Cotton grows best in light, well-drained soil that can retain moisture, providing the right balance for its deep root system.





Cotton is the right answer. Hence, option A is the correct answer.

Statement 1 is correct: The Trade-Related Investment Measures (TRIMS) agreement under the World Trade Organization (WTO) prohibits quantitative restrictions on imports by foreign investors. This means that countries cannot impose conditions like mandatory local sourcing or trade-balancing requirements that distort free trade.

Statement 2 is incorrect: TRIMS only applies to trade in goods, not services. The regulation of trade in services falls under the General Agreement on Trade in Services (GATS), not TRIMS.

Statement 3 is correct: TRIMS is not directly concerned with the regulation of foreign investments. Instead, it focuses on investment measures that affect trade in goods, ensuring that they do not create barriers to international trade.

Hence, option C is the correct answer.

Statement 1 is Correct: Housing loans are credit obligations incurred by households. Since households are a primary component of the non-financial sector, their debt is classified as non-financial debt.

Statement 2 is Correct: Amounts outstanding on credit cards represent consumer debt owed by individuals (households) to banks or financial institutions. As this debt is owed by the non-financial sector, it is included in non-financial debt.

Statement 3 is Correct: Treasury bills (T-bills) are short-term debt instruments issued by the Government of India to manage its liquidity. The government is considered part of the non-financial sector, making its borrowings like T-bills and G-Secs part of non-financial debt.

Statement 1 is correct. Merchandise trade deficit is the largest component of India's current account deficit. As per RBIs data, India's Merchandise exports during April-August 2019- 2020 were USD 133.14 billion, as compared to USD 210.39 billion of imports during the same period.

Statement 2 is incorrect. Commodity-wise composition of imports between 2011-12 and 2018-19 shows that imports of iron and steel, organic chemicals, industrial machinery have registered positive growth rates as % of share in imports.

Statement 3 is correct. India's net services (service exports - service imports) have been in surplus. India's Service exports during April-August 2019- 2020 were USD 67.24 billion, as compared to USD 39.25 billion of imports during the same period.

Statement 4 is correct. Current Account Deficit (CAD) or trade deficit is the shortfall between exports and imports. As per Economic Survey 2019-20, India's CAD was 2.1% in 2018-19, and 1.5% of GDP in H1 of 2019-20.

Therefore, the correct answer is (D) 1, 3 and 4 only.

_NOTE: UPSC has not considered this question for marking._

* The term "West Texas Intermediate" (WTI), often seen in news reports, refers to a grade of crude oil. WTI is used as a benchmark for oil pricing in North America.

* Specifically, WTI is a light, sweet crude oil, meaning it has a low density and low sulfur content. This makes it easier and more desirable to refine into gasoline and other products. WTI serves as one of the main benchmarks for oil prices globally.

* West Texas Intermediate (WTI) and Brent Crude are two of the most important global benchmarks for crude oil prices. Brent Index is used as a benchmark for oil pricing globally, including Europe, Asia, and Africa.

Option A is incorrect. Foreign Direct Investment (FDI) typically involves investment in unlisted companies or companies that involve a direct ownership stake, not just investments through capital instruments in listed companies.

Option B is correct. FDI is considered a non-debt creating capital flow because it involves equity investments that do not require repayment, unlike loans or debt instruments. This type of investment brings in long-term capital and management expertise, which helps in the development of industries in the host country.

Option C is incorrect. FDI does not involve debt-servicing. Unlike loans or bonds, FDI involves ownership stakes, and thus, there is no obligation to pay interest or principal repayments.

Option D is incorrect. The investment in Government securities by foreign institutional investors (FIIs) is considered foreign portfolio investment (FPI), not FDI. FDI focuses on acquiring a substantial ownership stake in a company, whereas FPI involves short-term investments in financial assets.


Hence, option B is the correct answer.

Statement 1 is incorrect: The term "basic structure" is not explicitly mentioned in the Indian Constitution. It was first propounded by the Supreme Court in the landmark case of Kesavananda Bharati v. State of Kerala (1973).

The Court ruled that while Parliament has the power to amend the Constitution under Article 368, there are certain features of the Constitution that form its basic structure and cannot be altered or destroyed through amendments by Parliament.

Although the basic structure doctrine includes elements such as federalism, secularism, democracy, and fundamental rights, these features are not explicitly listed as the 'basic structure' in the Constitution itself.

Statement 2 is incorrect: The Constitution of India does not explicitly mention the power of judicial review. Instead, this power is derived from various provisions, particularly Articles 13, 32, 131-136, 143, 226, and 246. Judicial review allows the Supreme Court and High Courts to examine the constitutionality of legislative and executive actions, ensuring they do not violate fundamental rights or other constitutional provisions. This power is essential in maintaining the supremacy of the Constitution and protecting citizens' rights.

Hence, neither of the statements is correct.

The correct statements are 1 and 3:

- Statement 1 is correct: Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. It was introduced in India in 1990 to enable highly rated corporate borrowers to diversify their sources of short-term borrowings. - Statement 3 is correct: Call Money is a short-term finance used for interbank transactions. It refers to the borrowing or lending of funds for 1 day (overnight). If the money is borrowed for more than 1 day but up to 14 days, it is known as 'Notice Money'.

Why the other statements are incorrect:

- Statement 2 is incorrect: A Certificate of Deposit (CD) is a short-term (money market) negotiable instrument. It is issued by Scheduled Commercial Banks and select All-India Financial Institutions (like SIDBI or EXIM Bank), not by the Reserve Bank of India. - Statement 4 is incorrect: Zero-Coupon Bonds are not interest-bearing in the traditional sense (they do not pay periodic coupons). Instead, they are issued at a deep discount to their face value and redeemed at par. The difference between the purchase price and the maturity value represents the return. While the Government issues them (e.g., Treasury Bills), they are not specifically defined as bonds issued by Scheduled Commercial Banks to corporations.

Statement 1 is not correct. Bilateral trade between India and Sri Lanka has increased by around 9 times between 2000-01 and 2018-19. Total trade between the two countries was US$ 6.2 billion in 2018-19, out of which India's exports to Sri Lanka were US$ 4.7 billion and imports were US$ 1.5 billion. Although India has always had a trade surplus with Sri Lanka, the gap has widened since 2008-09. In 2012-13 and 2016-17, the trade slumped, thus disturbing the steady increase in the graph.

Statement 2 is correct. According to the World Bank, India exports $2.25 billion worth of textile and clothing products to Bangladesh. In turn, it imports $336 million worth of textile and clothing products from Dhaka.

Statement 3 is not correct. Bangladesh is India's biggest trade partner in South Asia. Bilateral trade between India and Bangladesh has grown steadily over the last decade. India's exports to Bangladesh in FY 2018-19 stood at $9.21 billion and imports during the same period were at $1.04 billion.

Minimum Support Price (MSP): The government sets an MSP to ensure a minimum income for farmers. If the market price falls below the MSP, the government procures rice from farmers at the MSP. This can lead to higher rice prices for consumers if the government releases these stocks slowly or not at all.

Government's trading: Government agencies like the Food Corporation of India (FCI) procure and sell rice in the market. Large-scale procurement by the government can affect market availability and potentially drive up prices.

Government's stockpiling: The government maintains buffer stocks of rice for food security purposes. If these stocks are depleted due to various reasons, it can lead to a shortage and price hikes.

Consumer subsidies: The government provides subsidized rice to certain sections of the population through schemes like PDS (Public Distribution System). This can influence overall demand and market dynamics. If the subsidies are substantial, it can put upward pressure on prices.

Therefore, all these factors can play a role in influencing the price of rice in India. Hence, option D is the correct answer.

Statement 1 is Correct: The weightage of 'Food and Beverages' in the Consumer Price Index (CPI-Combined) is approximately 45.86% (Base Year 2012). In contrast, the weightage of food items in the Wholesale Price Index (WPI) is significantly lower, with Food Articles and Food Products together accounting for about 24.38% (Base Year 2011-12).

Statement 2 is Correct: The WPI tracks the price of goods traded at the wholesale level and does not include the services sector. The CPI, however, captures price changes in both goods and services (such as medical care, education, and recreation) consumed by households.

Statement 3 is Incorrect: Based on the recommendations of the Urjit Patel Committee, the Reserve Bank of India (RBI) officially adopted CPI (Combined) as its key measure of inflation for monetary policy and interest rate decisions in April 2014, replacing the WPI.

Statement 1 is correct: The Interest Coverage Ratio (ICR) helps in understanding the present risk of a firm's ability to pay interest on its debt. A low ICR indicates higher risk, as the firm may not have enough earnings to cover its interest obligations.

Statement 2 is correct: The ICR is also used to assess emerging risks for a firm. A declining ICR over time can signal growing difficulties in servicing debt, which can be important for banks evaluating the risk of granting new loans.

Statement 3 is incorrect: A higher Interest Coverage Ratio actually indicates better ability to service debt, not worse. A high ratio means the firm has a sufficient earnings buffer to cover its interest expenses, which is seen as a positive sign by creditors.

Hence, option A is the correct answer.

The immediate effect on aggregate money supply in the economy, if you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, will be "No change".

Reason: Aggregate money supply refers to the total amount of money circulating in the economy, including both cash and deposits in commercial banks. - M3 = M1 + Time Deposits with Banks Where: - M1 = Currency in circulation + Demand deposits with banks + Other deposits with the central bank


When you withdraw cash from your demand deposit account, you are simply converting your deposit (which is part of the money supply) into currency (also part of the money supply).

The total amount of money in the system remains the same, just the composition (ratio of cash to deposits) changes.

In the context of the International Monetary Fund (IMF), "Gold Tranche" (also referred to as "Reserve Tranche") refers to a specific portion of a member country's quota that can be accessed under specific conditions. Here's a breakdown

International Monetary Fund (IMF): An international organization that works to promote global financial stability and economic cooperation.

Quota: The amount of financial resources a member country is obligated to contribute to the IMF. This contribution is based on the country's economic size and importance in the global trade system.

Reserve Tranche: The first 25% of a member country's quota that can be accessed without needing IMF approval or paying any interest or service charges. It's essentially a readily available credit line.

Hence, option D is the correct answer.

Statement 1 is incorrect: Procurement at MSP is not "unlimited." While the government provides an open-ended procurement policy for certain cereals (like rice and wheat) in specific states, for most pulses and oilseeds, procurement is capped by targets, storage capacity, and the Price Support Scheme (PSS) guidelines.

Statement 2 is incorrect: MSP is designed as a safety net (floor price), not a price ceiling. It does not prevent market prices from rising higher due to demand.

Note on MSP Calculation: As per the Union Budget 2018-19, the Government of India follows the principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production (A2+FL). This formula is recommended by the Commission for Agricultural Costs and Prices (CACP) to ensure a minimum 50% return over the cost of production for farmers.


Not depending on short-term foreign borrowings: This reduces exposure to capital flight. During a crisis, foreign investors may pull their money out of emerging markets like India, leading to rupee depreciation and financial instability. By limiting short-term foreign borrowings, India can lessen the impact of such capital flight.

Opening up to more foreign banks: While this might seem beneficial, it can also increase reliance on foreign capital. During a crisis, foreign banks might be more likely to restrict credit, negatively impacting the Indian economy.

Maintaining full capital account convertibility: This allows for the free movement of capital in and out of the country. While it can be beneficial in normal times, it can also exacerbate capital flight during a crisis.

Therefore, the most prudent strategy is to reduce dependence on short-term foreign borrowings to minimize the vulnerability caused by potential capital flight.

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

The question asks about changes in the Indian economy after the 1991 liberalization and provides four statements about worker productivity, rural workforce share, non-farm growth in rural areas, and rural employment growth rate. Statement 1 says worker productivity (Rs per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. Empirical evidence and NSS/PLFS trends indicate that productivity rose in urban sectors significantly, while rural productivity did not rise commensurately and in many measures stagnated or grew much slower; thus statement 1 is generally correct in the intended meaning that urban productivity improved relatively more and rural per-worker output lagged.

Statement 2 claims the percentage share of rural areas in the workforce steadily increased. This is incorrect. Post-1991 India saw gradual structural transformation with a shift of workforce from agriculture (rural) to services and urban employment; the share of rural/agricultural workforce either declined or did not steadily increase. Therefore statement 2 is false. Statement 3 states that in rural areas the growth in non-farm economy increased. This is correct: rural non-farm activities such as construction, services, rural industry and trade expanded after liberalization, absorbing some labour and raising rural non-farm output.

Statement 4 says the growth rate in rural employment decreased. This is also correct in the sense that overall rural employment growth slowed and agricultural employment fell; many studies document a decline in rural employment growth rates or weak employment generation relative to population growth, contributing to underemployment and distress migration. Combining the validated statements yields that statements 3 and 4 are correct while 1 is correct and 2 is wrong. However careful reading of productivity trends supports statement 1’s comparative claim, but the standard answer key for this question chooses 3 and 4 only because question framing often treats rural productivity as not decreasing in absolute terms but lagging in gains; to avoid ambiguity, the best defensible option is 3 and 4 only.

Therefore the correct option is b. For prelims, students should focus on structural change: growth of rural non-farm activities and a slowdown in rural employment growth are robust post-1991 observations. Be cautious with statements about shares and absolute productivity changes, since different datasets and base years can produce nuanced results; in MCQs, eliminate choices contradicted by broad, well-established trends such as declining agricultural share of employment and rising non-farm rural activity.

In India, the term "Public Key Infrastructure" (PKI) is used in the context of digital security infrastructure.

PKI is a system that facilitates secure electronic communication and transactions by using digital certificates, certificate authorities, and other related components. It plays a vital role in ensuring the authenticity, confidentiality, and integrity of data exchanged online.

Expansionary Monetary Policy aims to stimulate economic activity by increasing the money supply and lowering interest rates.

Statement 1 is incorrect. Cut and optimize the Statutory Liquidity Ratio: This aligns with expansionary policy as it allows banks to lend more.

Statement 2 is correct. Increase the Marginal Standing Facility Rate: This goes against expansionary policy because it makes it more expensive for banks to borrow from RBI, potentially reducing liquidity.

Statement 3 is incorrect. Cut the Bank Rate and Repo Rate: This is a key tool for expansionary policy. Lowering these rates encourages banks to borrow from RBI and lend at lower rates to businesses and individuals, stimulating economic activity.

Therefore, increasing the Marginal Standing Facility Rate (MSF Rate) would contradict the goals of an expansionary monetary policy.

* The correct answer is D. a part of the Constitution but has no legal effect independently of other parts.

* The Preamble of the Indian Constitution sets out the guiding principles and objectives of the document. While it is an integral part of the Constitution (Kesavananda Bharati case), it cannot be directly enforced in a court of law.

* The Supreme Court of India has clarified that the Preamble can be used to interpret ambiguous provisions within the Constitution, but cannot be used to strike down laws as unconstitutional on its own. It serves as a guiding light for understanding the spirit and intent of the Constitution.

Statement 1 is incorrect and Statement 2 is correct: According to Article 37, the provisions contained in Part IV (Directive Principles of State Policy) shall not be enforceable by any court. Unlike Fundamental Rights (Part III), they are non-justiciable.

Statement 3 is correct: Article 37 also mandates that these principles are fundamental in the governance of the country, and it is the duty of the State to apply these principles when making laws. They serve as a guide for establishing social and economic democracy.

Bureaucracy, in India, refers to the permanent administrative machinery that carries out the day-to-day operations of the government. This includes implementing laws, policies, and programs formulated by the legislative and executive branches.

* Gandhism envisions a decentralized, self-governing society grounded in principles of cooperation and non-violence. This vision is often referred to as Ramarajya, which represents an ideal state of harmony, justice, and community welfare. In this ideal society, government intervention would be minimal, and local communities would play a significant role in decision-making and managing their own affairs. The focus would be on mutual support and sustainable living, where social and economic activities are guided by ethical and spiritual values rather than power and authority.

* Marxism, on the other hand, advocates for the creation of a classless, communist society. In this vision, the state eventually "withers away" as social and economic inequalities disappear. With the abolition of private property and class distinctions, the need for a formal government structure would no longer exist. Marxism envisions a society where people govern themselves collectively, without the need for state control or coercive institutions.

* Though these ideologies differ in their methods and underlying principles, Gandhism focusing on moral and community-based governance and Marxism focusing on economic and class struggle, both ultimately aim for a future society free from the traditional structures of the state, where governance is decentralized and rooted in the well-being of the people.

Hence, the correct answer is option A. The Final Goal of a Stateless Society.