Test: Weekly Current Affairs: July 15th to 21st - UPSC MCQ

1. Statement 1 is correct: The PM Dhan-Dhaanya Krishi Yojana indeed aims to boost agricultural productivity in targeted districts by merging 36 existing schemes from 11 Union Ministries. This integration is part of a unified support system designed to enhance the overall effectiveness of the initiative.
2. Statement 2 is correct: The selection criteria for districts under PMDDKY include low agricultural productivity, low cropping intensity, and low credit disbursement. Additionally, the scheme ensures representation across states by selecting at least one district from each state, thereby promoting balanced regional development.
3. Statement 3 is correct: The PMDDKY is expected to directly benefit 1.7 crore farmers across the country. It also aims to integrate allied sectors such as livestock, dairy, and fisheries to enhance local livelihoods and bolster the agricultural economy.
Therefore, all three statements are correct, making Option D the right answer.

Weak consumer demand is identified as a significant reason for sluggish corporate investment in India. Even though corporate profits have increased, particularly after tax reforms, the lack of anticipated consumer demand has deterred many companies from expanding. This highlights a disconnect between profitability and investment decisions, where businesses are hesitant to invest without a clear signal of consumer spending revival. An interesting fact is that despite rising profits, wage growth and hiring have remained stagnant, further contributing to the investment stagnation.

1. Statement 1: This statement is correct. Green methanol is indeed a promising green fuel that can reduce carbon emissions by 90-95% compared to traditional fuels. However, one of the significant barriers to its adoption is the high production cost, which makes it economically challenging at present.

2. Statement 2: This statement is incorrect. While the International Maritime Organization (IMO) is working towards evolving regulations to support the transition to green fuels, these regulations have not been uniformly adopted across the globe. There are variations in adoption due to different national policies and market conditions, which hinders market confidence and uniform implementation.

3. Statement 3: This statement is correct. India, through its National Green Hydrogen Mission, is making significant strides to become a leader in the production of green hydrogen. This initiative is part of India's broader strategy to support sustainable shipping fuels and align its maritime sector with global climate goals.

Therefore, the correct answer is Option C: 1 and 3 Only. Statements 1 and 3 are correct, while Statement 2 is incorrect.

1. Statement 1 is correct: Catastrophe Bonds (Cat Bonds) provide a diversification benefit because the risks associated with them, such as natural disasters, are largely uncorrelated with general financial market movements. This makes them attractive to investors looking to diversify their portfolios beyond traditional financial market risks.
2. Statement 2 is correct: Investors in Catastrophe Bonds do indeed risk losing their principal investment if a major disaster occurs. This is because the bonds are designed to provide financial relief to the issuer in the event of a disaster, which means that the investors bear the risk of losing their investment if such an event triggers a payout.
3. Statement 3 is incorrect: Catastrophe Bonds were not first introduced in the early 2000s; they have been around since the late 1990s. The timeline provided in the source indicates that over USD 180 billion in Cat Bonds have been issued since their inception in the late 1990s, not the early 2000s. This correct historical context confirms the inaccuracy of the third statement.
Thus, the correct answer is Option B: 1 and 2 Only, as only these statements accurately reflect the characteristics and history of Catastrophe Bonds as described.

1. The Resistance Front (TRF) - Proxy group for Lashkar-e-Taiba (LeT): Correctly matched. TRF is perceived as a proxy for LeT, operating primarily in Jammu and Kashmir.

2. Operation Sindoor - Conducted by India in 2023: Incorrectly matched. Operation Sindoor was conducted by India in 2025, not 2023.

3. UN Security Council - Named TRF in the condemnation of the Pahalgam attack: Incorrectly matched. While the UN Security Council condemned the Pahalgam attack, it did not specifically name TRF.

4. TRF - Initially operated as a social media group: Correctly matched. TRF initially started as a social media group before evolving into a militant organization.

Pairs 1 and 4 are correctly matched, while pairs 2 and 3 are not, making the correct answer Option C: Only three pairs.

Catastrophe Bonds (Cat Bonds) serve the primary function of transferring the financial risk of natural disasters from governments or insurers to private investors. This mechanism allows for quick access to funds for post-disaster relief. By issuing Cat Bonds, governments can offload the risk associated with catastrophes like earthquakes, cyclones, and floods to investors in the global financial markets. Investors are attracted to Cat Bonds due to the potential for high returns, although they risk losing their principal investment if a major disaster occurs. This strategy not only provides financial relief after disasters but also promotes disaster preparedness and investment in risk mitigation technologies.

1. Green Methanol - Derived from green hydrogen and CO2 captured from industrial processes.

This pair is correctly matched. Green methanol is indeed produced using green hydrogen and CO2 captured from industrial processes, and it is known for significantly reducing carbon emissions compared to traditional fuels.

2. Green Ammonia - Requires no modifications for storage and transportation.

This pair is incorrectly matched. Green ammonia does require specialized storage and engine modifications due to its volatile nature, making it less straightforward to store and transport than traditional fuels.

3. Biofuels - Unlimited scalability due to abundant land availability.

This pair is incorrectly matched. Biofuels face scalability issues because of competition for land and food production, which limits their widespread adoption as a sustainable fuel source.

4. India's National Green Hydrogen Mission - Aims to make India a leading hub for green hydrogen.

This pair is correctly matched. The National Green Hydrogen Mission is part of India's strategy to become a leader in green hydrogen production, which is essential for sustainable shipping fuels.

Therefore, only pairs 1 and 4 are correctly matched, making the correct answer Option B: Only two pairs.

The primary aim of the Sevilla Commitment is to close the significant annual financing gap for Sustainable Development Goals (SDGs) in developing countries. By emphasizing strengthening domestic resource mobilization, expanding access to social protection, and promoting gender equality, the commitment seeks to address the challenges in sustainable development finance. This initiative plays a crucial role in advancing the 2030 Agenda and the SDGs by aligning financial flows with economic, social, and environmental goals.

Statement-I correctly describes Catastrophe Bonds (Cat Bonds) as hybrid financial instruments that blend features of insurance and bonds to shift the risk of natural disasters from governments or insurers to investors in global financial markets. This definition aligns with the key characteristics and functions of Cat Bonds as outlined in the text.

Statement-II accurately highlights the persistent issue of dowry-related deaths in India despite the practice being illegal since 1961. The statement also mentions the alarming number of annual dowry deaths and the challenges associated with underreporting, reflecting the gravity of the situation presented in the context.

Therefore, both Statement-I and Statement-II are factually correct, with Statement-II providing additional information that supports and complements the concept introduced in Statement-I, making option (a) the correct choice.

1. PMDDKY Target Districts - Selected based on high agricultural productivity: Incorrect. The PM Dhan-Dhaanya Krishi Yojana targets districts with low agricultural productivity, low cropping intensity, and low credit disbursement. It focuses on underperforming districts, not those with high productivity.

2. Cyber Frauds Origin - Predominantly from Southeast Asian countries: Correct. The news mentions that over 50% of cyber frauds targeting Indians originated from Southeast Asian countries like Cambodia, Myanmar, Vietnam, Laos, and Thailand.

3. NITI Aayog Role - Guiding and reviewing district plans under PMDDKY: Correct. NITI Aayog is responsible for guiding and reviewing district plans regularly as part of the PMDDKY's implementation and monitoring framework.

4. Budapest Convention - India is a signatory: Incorrect. India is not a signatory to the Budapest Convention on Cybercrime, which is an international treaty addressing cybercrime.

Thus, pairs 2 and 3 are correctly matched, making Option B the correct choice.

Weak demand plays a crucial role in hindering corporate investments in India despite tax reforms and public capital expenditure. Anticipated demand heavily influences investment decisions, and even though there have been tax reforms and increased infrastructure spending, low consumer demand has deterred expansion. This factor highlights the intricate relationship between consumer demand and corporate investment, showcasing the complexities of the economic landscape in India.

The primary aim of the PM Dhan-Dhaanya Krishi Yojana (PMDDKY) is to improve farm productivity in targeted districts. This initiative focuses on enhancing agricultural output through sustainable farming practices, better irrigation, storage facilities, credit access, and overall support to uplift the livelihoods of farmers in underperforming regions.

India's diplomatic efforts calling for global action against The Resistance Front (TRF) were prompted by the UN Security Council's condemnation of the Pahalgam attack. This condemnation, while not specifically naming TRF, led India to advocate for more stringent measures against the group, culminating in the engagement of Operation Sindoor in 2025.

Technological barriers for ships represent a significant challenge in adopting green fuels in global shipping. Ships and port facilities require substantial modifications to accommodate new types of fuels like green methanol or ammonia. These changes can be costly and time-consuming, deterring swift adoption. The transition to green fuels is not only about availability but also about ensuring that the existing infrastructure can support these innovations. This highlights the complexity of transitioning to sustainable practices in industries reliant on legacy systems.

The projected growth in global cereal production, as outlined in the OECD-FAO Agricultural Outlook 2025-2034, is primarily due to yield increases. This growth is expected to occur at a rate of 1.1% annually, driven by advancements in agricultural practices that enhance yield per unit area. Yield improvements play a crucial role in meeting the rising demand for cereals globally, ensuring food security, and supporting sustainable agricultural practices.

1. Debt Swaps for Development Hub - Incorrectly matched. This initiative was launched by Spain & the World Bank, not Italy.

2. Coalition for Global Solidarity Levies - Correctly matched. This initiative indeed proposes taxes on premium-class air travel to fund climate action.

3. FX EDGE Toolbox - Correctly matched. It provides currency risk management tools to promote local currency lending.

4. Debt-for-Development Swap Programme - Correctly matched. This program is led by Italy and converts €230 million in African debt into investments for development projects.

The correctly matched pairs are 2, 3, and 4.

1. Weak Demand - High multiplier effect of government capital expenditure: Incorrect. The low multiplier effect of government capital expenditure is one of the reasons hindering private investment, not a result of weak demand. Weak demand is primarily due to low consumer demand despite increased corporate profits, which deters investment.

2. Investment to GDP ratio - Increase in recent years: Incorrect. The investment to GDP ratio has decreased in recent years, with corporates investing only 12% of GDP in FY2022-23 compared to 16% during the period of 2004-2008.

3. Global Trade Headwinds - Weakening export-led investment opportunities: Correct. Global trade headwinds, including protectionist policies and tariff regimes, have indeed weakened export-led investment opportunities.

4. Make in India Initiative - Fostering manufacturing and innovation: Correct. The Make in India initiative is designed to foster manufacturing and innovation by providing a conducive environment for investment, development of industry, and enhancing sector-specific growth.

Pairs 3 and 4 are correctly matched. Hence, the correct answer is Option B: Only two pairs.

Global trade headwinds, including protectionist policies and tariff regimes, have weakened export-led investment opportunities in India. This situation complicates the investment landscape, as companies find it challenging to rely on international markets for growth. The impact of such trade policies can be significant, as they may lead to reduced competitiveness for Indian exports, directly affecting the willingness of businesses to invest in expansion. Notably, fluctuations in global demand can significantly shape investment strategies.

1. Statement 1 is correct. The Sevilla Commitment explicitly aims to close the USD 4 trillion annual financing gap for the Sustainable Development Goals (SDGs) in developing countries. This is a critical aspect of the commitment as it focuses on addressing the financial needs required to achieve the SDGs.

2. Statement 2 is correct. The Sevilla Platform for Action includes a Debt-for-Development Swap Programme, specifically led by Italy, which seeks to convert €230 million in African debt into investments for development projects. This initiative is part of the broader strategy to manage debt sustainably while promoting development.

3. Statement 3 is incorrect. While the Sevilla Commitment emphasizes various financial strategies to support sustainable development, it doesn't specifically prioritize shifting from loans to grants for climate finance. The focus is more on reforming financial systems and instruments rather than exclusively prioritizing grants over loans.

Thus, only statements 1 and 2 are correct, making Option B the correct answer.

1. Statement 1 is correct. The restructured Skill India Mission (2022-26) merges various programs, including the Pradhan Mantri Kaushal Vikas Yojana 4.0, Pradhan Mantri National Apprenticeship Promotion Scheme, and Jan Shikshan Sansthan, into a single Central Sector Scheme. This integration aims to streamline skill development initiatives and enhance their effectiveness.

2. Statement 2 is also correct. The draft Global Plastics Treaty acknowledges the contributions of waste pickers in plastic recycling but lacks binding protections and financial support for these workers. This highlights a gap in ensuring social justice within the treaty's framework.

3. Statement 3 is incorrect. The Pradhan Mantri National Apprenticeship Promotion Scheme provides a 25% stipend support, not 50%, to individuals aged 14-35 years engaged in apprenticeship training. This financial assistance is part of efforts to enhance apprenticeship training and improve employability.

Therefore, the correct statements are 1 and 2, making Option B the correct answer.

The response to the refugee crisis in Mizoram has been significantly influenced by historical ethnic ties between the Mizo community and the Chin people of Myanmar. This connection has fostered a sense of solidarity and community support for refugees, leading to an empathetic approach rather than strict deportation. The involvement of local organizations further emphasizes this community-centric response, showcasing how cultural and social factors can shape humanitarian actions. Interestingly, such ties often lead to grassroots support systems that are crucial during crises.

The primary aim of the Skill India Mission is to skill, reskill, and upskill the youth of India. This mission focuses on providing job-ready skills to empower the youth and enhance their employability in various sectors. Over the years, the Skill India Mission has trained millions of individuals in diverse fields, including emerging sectors like artificial intelligence, robotics, and green energy, aligning with the country's goal of fostering a skilled workforce for the future.

Statement 1 is correct. The Resistance Front (TRF) indeed emerged as a proxy for Lashkar-e-Taiba (LeT) after the revocation of Article 370, aiming to present a local façade and evade international scrutiny.

Statement 2 is incorrect. TRF initially surfaced as a social media group and later transformed into a militant organization, not the other way around. It began with an online presence before engaging in militant activities.

Statement 3 is incorrect. While TRF's involvement in cross-border smuggling is a concern, the U.S. designation of TRF as a terrorist organization is more broadly linked to its activities as a proxy for LeT and its role in militancy and terrorism, not just arms smuggling.

Therefore, only Statement 1 is correct, and the correct option is Option A: 1 Only.

1. Catastrophe Bonds: Primarily purchased by retail investors.

This statement is incorrect. While Catastrophe Bonds are gaining interest from retail investors, they are primarily purchased by institutional investors.

2. High Returns: Investors earn greater returns compared to typical government or corporate bonds.

This statement is correct. Investors typically earn higher returns on Catastrophe Bonds due to the higher risk involved, as they might lose their principal investment if a major disaster occurs.

3. Diversification Benefit: Risks associated with Cat Bonds are correlated with general financial market movements.

This statement is incorrect. The risks associated with Catastrophe Bonds are not correlated with general financial market movements, making them a good diversification option for investors.

4. Quick Capital Mobilization: Facilitates quicker payouts after disasters.

This statement is correct. Catastrophe Bonds are designed to provide quick access to funds after a disaster, which helps in minimizing the delay in aid and budget reallocations.

Thus, pairs 2 and 4 are correctly matched.

1. Global cereal production growth - Primarily due to expansion of harvested area
This pair is incorrectly matched. Global cereal production growth is primarily due to yield increases, with a minor contribution from the expansion of harvested area, which grows at a slower rate of 0.14% annually.

2. Biofuel demand - Driven by countries like Brazil, India, and Indonesia
This pair is correctly matched. The report highlights that biofuel demand is expected to rise, driven by countries like Brazil, India, and Indonesia.

3. Cereal consumption growth - Major contributors are India and Southeast Asia
This pair is correctly matched. India and Southeast Asia are projected to contribute to 39% of the growth in global cereal consumption.

4. Water demand for ethanol production - Requires 8-12 liters of water per liter of ethanol
This pair is correctly matched. The report mentions that ethanol production requires between 8-12 liters of water per liter of ethanol.

Pairs 2, 3, and 4 are correctly matched, making a total of three correctly matched pairs.