Test: Monthly Yojana and Kurkshetra Magazine April 2025 - UPSC MCQ

The primary aim of the Devolution Index report mentioned in the text is to assess the extent of power delegated to Panchayati Raj Institutions across various states. This evaluation is based on six dimensions, including Framework, Functions, Finances, Functionaries, Capacity Building, and Accountability, to determine the level of devolution of powers, responsibilities, finances, and personnel to PRIs in accordance with Article 243G of the Constitution.

1. Electronics exports in FY24 - Driven by the National Logistics Policy: Incorrect. The surge in electronics exports from $11 billion in FY21 to $26 billion in FY24 was significantly supported by the Production Linked Incentive (PLI) scheme, not the National Logistics Policy.

2. India-UAE Comprehensive Economic Partnership Agreement (CEPA) - Facilitates market access: Correct. The India-UAE CEPA is designed to facilitate access to new markets, making this pair correctly matched.

3. Production Linked Incentive (PLI) scheme - Supports electronics and electric vehicles: Correct. The PLI scheme is indeed aimed at boosting manufacturing and exports in sectors like electronics and electric vehicles, thus making this pair correctly matched.

4. Skill India Mission 2.0 - Focuses on AI and green technology skills: Correct. The Skill India Mission 2.0 places emphasis on upskilling the workforce in areas such as AI, green technology, and digital trade, aligning with the demands of emerging industries, making this pair correctly matched.

Thus, three pairs (2, 3, and 4) are correctly matched.

The main objective of the National Manufacturing Mission (NMM) outlined in the Union Budget 2025-26 is to increase the share of manufacturing in GDP to 25% by 2030, aligning with global leaders like China and South Korea. This mission aims to enhance the ease of doing business, improve skills training, support Micro, Small, and Medium Enterprises (MSMEs), provide access to technology, and ensure product quality to boost India's manufacturing sector and overall economic growth.

Statement-I is correct because the 73rd Constitutional Amendment Act of 1992 indeed established Panchayati Raj as the third tier of governance in India, aiming at democratic decentralization.
Statement-II is correct as well since the Panchayat Devolution Index 2024 report evaluates the devolution of power to PRIs across states and union territories, aligning with the concept of recognizing PRIs as a significant tier in governance. Moreover, the report assesses the transfer of powers, responsibilities, finances, and personnel to PRIs, reflecting the essence of the 73rd Constitutional Amendment Act. Hence, both statements are correct, and Statement-II elucidates the significance of Statement-I.

1. Jaipur 3R and Circular Economy Declaration (2025-2035) is correctly matched. It advocates for the principles of Reduce, Reuse, and Recycle as part of a vision for a circular, low-carbon, and resource-efficient economy.

2. Bharat Global Ports Consortium is incorrectly matched. It focuses on strengthening global trade resilience and bolstering Make in India exports, not on AI-driven semiconductors.

3. Revised Rashtriya Gokul Mission is correctly matched. This mission aims to improve various aspects of cattle breeding and milk production, including semen stations, artificial insemination, and breed improvement.

4. AIKosha is correctly matched. It is a platform designed to enhance AI innovation across India by offering access to datasets and AI models for various applications.

Thus, pairs 1, 3, and 4 are correctly matched.

1. Article 243G: Correctly matched. It empowers State Legislatures to delegate powers, authority, and responsibilities to PRIs, enabling them to function as self-governing entities.

2. Article 243H: Incorrectly matched. Article 243H grants PRIs the authority to levy, collect, and manage taxes and fees, not the establishment of State Finance Commissions.

3. Article 243-I: Incorrectly matched. Article 243-I mandates the establishment of State Finance Commissions every five years, not granting authority to PRIs for managing taxes.

4. Article 280(3)(bb): Correctly matched. It directs the Central Finance Commission to recommend measures for enhancing state funds to bolster PRI resources.

Thus, pairs 1 and 4 are correctly matched.

Both statements are accurate in the context of the 73rd Constitutional Amendment Act, 1992. Statement I correctly highlights the significance of the Act in establishing PRIs as a crucial tier of government for local governance. Statement II complements this by emphasizing the Act's objective to enhance the financial autonomy of PRIs, enabling better self-governance. Therefore, Statement II logically elaborates on the essence of Statement I, making Option A the correct choice.

1. The statement that the Panchayat Devolution Index 2024 indicates an increase in the overall devolution to PRIs by over 4 percentage points from 2013-14 to 2021-22 is correct. The report notes an increase from 39.9% to 43.9%, confirming the accuracy of this statement.

2. The 73rd Constitutional Amendment Act mandates the establishment of State Finance Commissions every five years under Article 243-I. This is a crucial mechanism intended to enhance the financial resources and autonomy of PRIs, making this statement correct.

3. The statement that the Panchayat Devolution Index 2024 ranks Kerala as the top state for financial autonomy provided to PRIs is incorrect. The report ranks Karnataka as the top state in terms of finances and accountability. Kerala is ranked second but is noted for its framework, not specifically for financial autonomy.

Therefore, only statements 1 and 2 are correct, making Option B the right choice.

Statement-I correctly highlights India's potential to attract significant passive flows through its inclusion in global financial market indices like JP Morgan's GBI-EM index. This recognition bodes well for India's economic prospects. Statement-II accurately notes India's ambitious goal of reaching 500 GW in renewable energy capacity by 2030. Both statements are factually correct, but they address different aspects of India's economic and environmental goals, hence they are not directly explanatory of each other.

- Statement 1 is correct. The Production Linked Incentive (PLI) scheme has been a significant factor in boosting India's electronics exports, which increased from $11 billion in FY21 to $26 billion in FY24. This indicates the scheme's effectiveness in enhancing domestic manufacturing capabilities and increasing export volumes.

- Statement 2 is correct. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA) have been instrumental in opening new markets for Indian exports. These agreements have reduced trade barriers and provided Indian exporters with greater market access, thereby supporting the growth in exports.

- Statement 3 is incorrect. Logistics costs in India are higher than those in developed countries. In India, logistics costs range from 14% to 16% of GDP, whereas in developed countries, they typically range from 8% to 10% of GDP. This discrepancy highlights one of the challenges India faces in enhancing its export competitiveness.

Thus, statements 1 and 2 are correct, while statement 3 is not. Therefore, the correct answer is Option B: 1 and 2 Only.