Test: Economic Development MCQs (August 2024 Current Affairs) - UPSC MCQ

Statement-I highlights the importance of Chinese technicians for Indian manufacturing, emphasizing their expertise and efficiency. This statement is supported by the content provided, where it is mentioned that Chinese workers are more productive and can help Indian industries overcome skill gaps.

However, Statement-II suggests that the presence of Chinese workers can help India establish a position at the bottom of the global skill ladder. This statement is not accurate as the intent is likely to bridge the skill gap and improve productivity rather than positioning India at the bottom of the skill ladder. The content emphasizes India's need for foreign technical help to enhance its manufacturing capabilities and competitiveness in the global market, not to lag behind.

Therefore, while Statement-I is correct based on the information provided, Statement-II does not align accurately with the context, making option (c) the most suitable choice.

Statement-I is accurate as it reflects India's goal to achieve high-income status by 2047 through a comprehensive economic strategy. However, Statement-II is incorrect because the projected per capita income for India by 2031 is not USD 4,500 but is estimated to be around USD 2,850, according to available data and projections. Hence, Statement-II is inaccurate in its projection of India's per capita income.

1. Agra-Gwalior high-speed corridor - Uttar Pradesh and Madhya Pradesh: Correct. Agra is in Uttar Pradesh, and Gwalior is in Madhya Pradesh.

2. Tharad-Deesa-Mehsana-Ahmedabad corridor - Gujarat: Correct. All these locations are in the state of Gujarat.

3. Guwahati Ring Road - Assam: Correct. Guwahati is the largest city in the state of Assam.

4. Raipur-Ranchi corridor - Chhattisgarh and Jharkhand: Correct. Raipur is the capital city of Chhattisgarh, and Ranchi is the capital city of Jharkhand.

All four pairs are correctly matched.

All three statements provided about the National Asset Reconstruction Company Ltd (NARCL) are correct:

1. Statement 1: Correct. NARCL has set a target to acquire stressed assets totaling Rs 2 trillion by the fiscal year 2026. This ambitious goal follows their achievement of acquiring Rs 1 trillion worth of distressed assets in FY24.

2. Statement 2: Correct. NARCL was indeed established in 2021. It is a government-supported bad bank, specifically created to address the issue of non-performing assets (NPAs) within the public sector banks.

3. Statement 3: Correct. The operational structure of NARCL involves a unique arrangement where NARCL acquires bad loan accounts from banks. The India Debt Resolution Co. Ltd (IDRCL) then manages the resolution process. This dual structure, although it has faced some operational challenges, is designed to streamline the management and recovery of distressed assets.

Therefore, all the statements are correct, making Option D the right answer.

Statement-I is correct as India indeed mandates CSR spending under clause 135 of the Companies Act, 2013. Statement-II is also correct as it highlights that while most countries have voluntary CSR frameworks, Norway and Sweden have transitioned to mandatory CSR provisions after initially following voluntary models. Therefore, both statements are accurate, and Statement-II provides additional context to support Statement-I.

Statement-I accurately reflects the decision of the MPC to maintain the policy repo rate at 6.50% in the 50th meeting. However, Statement-II provides an incomplete and inaccurate description of the composition of the MPC. While it correctly mentions the presence of the RBI Governor and a Deputy Governor, it fails to mention the specific roles of an officer from the Bank nominated by the Central Board and three individuals appointed by the central government, which are key components of the MPC. Therefore, Statement-II is incorrect in its representation of the MPC's membership.

1. CSR expenditure on education in FY23: Rs 10,085 crore - Correct. Government data revealed that education received the highest share of CSR expenditure in FY23, with Rs 10,085 crore allocated.

2. CSR spending on vocational skills in FY23: Rs 1,033 crore - Incorrect. CSR spending on vocational skills rose slightly to Rs 1,164 crore in FY23 from Rs 1,033 crore the previous year.

3. CSR expenditure on technology incubators in FY23: Rs 1 crore - Correct. Technology incubators received the lowest amount, with only Rs 1 crore in FY23 compared to Rs 8.6 crore in the previous year.

4. CSR spending on animal welfare in FY23: Rs 315 crore - Correct. Animal welfare surged from Rs 17 crore in FY15 to over Rs 315 crore in FY23.

Thus, three pairs are correctly matched.

Bad banks play a crucial role in managing non-performing assets (NPAs) within the banking sector by enhancing efficiency in asset resolution. By centralizing the management of NPAs, bad banks help in streamlining the process of recovering bad loans, thus enabling banks to focus on healthier lending practices and improving overall financial stability.

In FY23, companies outside the public sector contributed a significant 84% of the total CSR expenditure, highlighting the substantial contribution made by private sector entities towards corporate social responsibility initiatives.

1. Correct: Ayushman Bharat, specifically under the Pradhan Mantri Jan Arogya Yojana (PM-JAY) component, provides Rs. 5 lakh coverage per family per year for secondary and tertiary care hospitalization. This is designed to offer financial protection to vulnerable families for their healthcare needs.

2. Correct: According to the data, Maharashtra (20.49%) and Kerala (18.75%) had the highest rates of elderly admissions under the scheme. This indicates a significant utilization of the scheme by elderly individuals in these states.

3. Correct: The government’s plan to expand Ayushman Bharat includes covering all individuals over 70 years, regardless of economic status. This expansion aims to address the healthcare needs of the aging population comprehensively.

Therefore, all the given statements are correct, making Option D the right answer. The justification aligns with the information provided in the source material, ensuring the accuracy and relevance of the question and solution.

1. Statement 1 is correct: The government has indeed introduced a new mechanism where the National Highways Authority of India (NHAI) can pay up to 40% of the total project cost in ten installments based on progress. This is aimed at improving the financial viability for developers.

2. Statement 2 is correct: The length of National Highways in India has increased from 0.91 lakh km in 2013-14 to 1.46 lakh km in 2024, reflecting significant progress in highway construction.

3. Statement 3 is incorrect: The government’s revised Model Concession Agreement has introduced more favorable compensation and longer concession periods, not shorter, to attract private investors.

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

1. National Asset Reconstruction Company Ltd (NARCL) - Established in 2021

Correct. NARCL was indeed established in 2021 to tackle bad assets within public sector banks.

2. India Debt Resolution Co. Ltd (IDRCL) - Tasked with acquiring bad loan accounts

Incorrect. IDRCL is tasked with managing the resolution process of bad loan accounts, not acquiring them. NARCL acquires the bad loans.

3. Grant Street National Bank - Acquired bad assets from Mellon Bank

Correct. Grant Street National Bank is known for acquiring bad assets from Mellon Bank.

4. GST on Health Insurance - 18%

Correct. The current GST imposed on health insurance premiums in India is indeed 18%.

Thus, three pairs are correctly matched.

Statement-I correctly defines bad banks as specialized asset reconstruction companies that handle bad loans from commercial banks. Statement-II provides historical context about the origin of bad banks in the 1980s but does not directly explain the functions of bad banks as outlined in Statement-I. While both statements are factually accurate, Statement-II does not serve to elaborate or provide context for Statement-I, hence Option B is the correct choice.

The government's roadmap for infrastructure development in India emphasizes implementing innovative financing solutions to secure additional funding for development. This approach involves exploring infrastructure bonds and other creative financing options to support the growth of infrastructure projects. By encouraging innovative financing, the government aims to address funding challenges and facilitate the timely completion of critical infrastructure initiatives.

1. Statement 1: This statement is incorrect. The official recognition mentioned in the text pertains to the acknowledgment of the skill gap between Chinese and Indian factory supervisors and workers, not the expertise of Indian supervisors in low-tech, labour-intensive production.

2. Statement 2: This statement is correct. The text highlights that a shoe manufacturer in Vellore pointed out that Chinese professionals can produce 150 items using the same resources that Indian workers use to make 100 items.

3. Statement 3: This statement is correct. The text indicates that while the Indian government generally does not have many restrictions on foreign experts, there are specific limitations on Chinese workers due to national security concerns.

Therefore, the correct answer is Option C: 2 and 3 Only.