Daily Current Affairs MCQ: 17th March 2025 - UPSC MCQ

• Statement-I: Gold smuggling is primarily regulated under the Customs Act, 1962, which includes provisions for penalties and confiscation. This statement is correct. The Customs Act, 1962, contains provisions for penalties, confiscation, and even imprisonment in the case of gold smuggling.
• Statement-II: The Customs Act, 1962, allows the government to impose penalties and confiscate goods involved in illegal gold imports, but it does not provide any provision for imprisonment. This statement is incorrect. The Customs Act includes provisions for imprisonment if the value of the smuggled goods exceeds ₹1 lakh, as stated under Section 135.
• Explanation: Statement-I is correct, but Statement-II is incorrect because the Customs Act does provide for imprisonment in gold smuggling cases. Therefore, the correct answer is Option C.

Statement 1 is correct: The Customs Act, 1962 includes provisions for penalties, including confiscation of illegal gold imports and imprisonment for up to 7 years if the value exceeds ₹1 lakh.
Statement 2 is incorrect: The Indian government aims to reduce gold imports to combat smuggling and stabilize trade, not increase them.
Statement 3 is correct: The Supreme Court has ruled that non-compliant gold imports are prohibited and subject to confiscation and penalties.

The Indian government's incentive policy for electronic components manufacturing primarily aims to enhance domestic value addition in the sector. It focuses on increasing domestic production from the current 15-20% to 30-40% by offering significant incentives. The policy also targets key components like display modules and printed circuit boards, aiming to make India self-reliant in the electronic components sector. This is part of the broader push to reduce the import dependency and boost local manufacturing.

• Sovereign Gold Bond Scheme - Government bonds backed by gold: This pair is correct. The Sovereign Gold Bond Scheme allows investors to buy bonds backed by the value of gold.
• Budget 2024 - Increase in import duty on gold: This pair is incorrect. The Budget 2024 actually reduced the import duty on gold from 15% to 6% to combat smuggling.
• Supreme Court Ruling (2003) - Gold smuggling cases are civil in nature: This pair is incorrect. Smuggling cases, including gold smuggling, are criminal offenses, not civil.
• UAE - Decrease in gold exports to India: This pair is incorrect. The UAE remains one of the largest suppliers of gold to India, and there has been no significant decrease in exports.

Therefore, only one pair is correctly matched, and the answer is Option A.

India has recently witnessed a significant rise in gold smuggling, primarily driven by increasing global gold prices. This situation reflects the growing demand for gold within the nation, making it an attractive target for smugglers. The Indian government has been implementing various policies to curb gold imports in an effort to manage the trade balance and reduce reliance on foreign gold sources. Interestingly, India remains the second-largest gold consumer in the world, following China, highlighting the cultural and economic importance of gold in Indian society.

• Baggage Rules, 2016 - Gold duty-free limit for men: 50g: This pair is incorrect. According to the Baggage Rules, the duty-free limit for men is 20g, not 50g.
• Customs Act, 1962 - Penalties for smuggling gold exceeding ₹1 lakh: This pair is correct. The Customs Act includes penalties and provisions for smuggling gold if the value exceeds ₹1 lakh.
• UAE - Major source of gold imports to India: This pair is correct. The UAE is a key source of gold imports into India.
• Gold Monetization Scheme - Integrates idle gold into the economy: This pair is correct. The Gold Monetization Scheme is aimed at bringing unused gold into the formal economy.

Therefore, three pairs are correctly matched, and the answer is Option C.

Statement 1 is correct: The Supreme Court has emphasized that language laws in India should evolve organically and respect linguistic diversity, as seen in the U.P. Hindi Sahittya Sammelan case.
Statement 2 is incorrect: The NEP 2020 does not mandate Hindi as the primary language of instruction but encourages its promotion. The focus is on linguistic inclusivity.
Statement 3 is correct: Article 29(1) protects the rights of groups to preserve their distinct languages, ensuring their linguistic identity is maintained.

Switzerland is one of the primary sources of gold imports for India, accounting for approximately 40% of total gold imports. Other major sources include the UAE and South Africa. Switzerland has a long-standing role as a key player in the global gold trade, especially in refining and exporting gold to countries like India, which is one of the largest consumers of gold globally.

• India - Surge in gold smuggling due to rising gold prices: This pair is correct. The surge in global gold prices has indeed led to an increase in smuggling activities in India, as seen with recent incidents of gold smuggling through various means.
• Switzerland - Major supplier of gold to India: This pair is also correct. Switzerland is one of the largest suppliers of gold to India, with a significant percentage of India’s gold imports coming from there.
• UAE - Increase in gold imports from India: This pair is incorrect. The UAE is one of the key sources of gold imports to India, not the other way around. India imports large quantities of gold from the UAE.
• South Africa - Key player in India’s electronics manufacturing growth: This pair is incorrect. South Africa does not play a significant role in India’s electronics manufacturing sector. The government’s incentive policies focus more on domestic manufacturing and key global players like the US, Japan, and Korea, not South Africa.

Therefore, two pairs are correctly matched, and the answer is Option B.

• Statement-I: India aims to reduce its gold imports through various policy changes. This statement is correct as the government has been taking measures to control gold imports to reduce the economic burden.
• Statement-II: The Indian government has reduced the import duty on gold from 15% to 6% in the Budget 2024 to combat smuggling. This statement is also correct. In the Budget 2024, the Indian government reduced the import duty to counter the rising gold smuggling activities.
• Explanation: Statement-II directly explains Statement-I because the reduction in gold import duty is one of the key policy changes the government is using to reduce gold imports and curb smuggling. Therefore, both statements are correct, and Statement-II explains Statement-I.