Test: Economic & Social - 1 - Bank Exams MCQ

Objectives of the Industrial Policy of 1991:

• Liberalization of the industrial sector: The Industrial Policy of 1991 aimed to liberalize the Indian economy by reducing government controls and regulations in the industrial sector. This included the abolition of licensing requirements for most industries, deregulation of various sectors, and the easing of restrictions on private and foreign investments.
• Encouraging foreign investment and technology transfer: The policy also aimed to attract foreign investment by providing incentives and creating a more favorable investment climate. This included allowing foreign direct investment (FDI) in various sectors and encouraging technology transfer to improve industrial competitiveness and efficiency.

Incorrect Objective:

• Promotion of public sector monopolies: This was not an objective of the Industrial Policy of 1991. In fact, the policy aimed to reduce the role of public sector monopolies by promoting competition and allowing private sector participation in industries previously reserved for the public sector.

Impact of the Industrial Policy of 1991:

• The liberalization measures led to rapid industrial growth and increased efficiency in various sectors.
• The policy attracted significant foreign investment, which contributed to technological advancements and enhanced productivity.
• The deregulation of industries allowed for greater competition and innovation, fostering a more dynamic industrial environment.
• Overall, the Industrial Policy of 1991 played a crucial role in transforming the Indian economy by integrating it with the global market and promoting sustainable economic development.

Demographic Trends and Economic Implications for India:

• Statement 1: A youthful population provides a potential demographic dividend. This means that a large proportion of young people in the population can lead to economic growth, provided there are adequate employment opportunities and investments in education and healthcare. This statement is correct.
• Statement 2: High urbanization rates lead to increased strain on urban infrastructure. Rapid urbanization can result in overburdened infrastructure, including transportation, housing, and sanitation facilities, creating challenges for urban planning and development. This statement is correct.
• Statement 3: Migration trends show a significant shift from urban to rural areas. This statement is incorrect as migration trends in India generally indicate movement from rural to urban areas in search of better employment and living conditions.

Implications of Demographic Trends:

• The youthful population can contribute significantly to economic development through increased productivity and innovation, provided they are well-educated and healthy.
• Urbanization needs to be managed effectively to ensure sustainable development and to avoid issues such as congestion, pollution, and inadequate public services.
• Effective policies and investments in infrastructure, education, and healthcare are crucial to harness the potential of India's demographic trends.

In News

• Ministry of Labour & Employment conducts a national level video-conference with all 36 States & UTs, to assess preparedness of States/UTs in finalization of draft Rules under the four Labour Codes.

Major Points

• During the videoconference, the eShram organization was mentioned in relation to the integration of BoC workers' database to ensure deduplication and portability of benefits.
• The Ministry emphasized the importance of finalizing the draft Rules under the four Labour Codes to ensure comprehensive labor reforms.
• States and UTs were urged to expedite the process and provide their feedback on the draft Rules.
• This initiative aims to streamline labor laws and improve the overall working conditions and benefits for workers across the country.

The correct answer is  Low levels of capital formation

• Low Levels of Capital Formation: An underdeveloped economy typically exhibits low levels of capital formation. This means there is insufficient investment in infrastructure, industries, and other capital goods necessary for economic growth.
• The main objective of economic development is to increase capital formation to enhance productivity and improve living standards.
• Characteristics of Underdeveloped Economies: These economies often suffer from inadequate infrastructure, limited access to financial resources, and low investment in productive assets.
• Impact: Low levels of capital formation hinder economic growth, leading to persistent poverty, low income levels, and limited economic opportunities.
• Development Strategies: To overcome low capital formation, underdeveloped economies need policies that promote investment, improve access to finance, and enhance infrastructure development.

Major Points

• High Literacy Rates: Underdeveloped economies often have low literacy rates, which limit their human capital and economic potential.
• High Levels of Technological Advancement: These economies generally lack advanced technology and innovation, which are characteristic of more developed economies.
• Diversified Industrial Base: Underdeveloped economies typically have a limited and undiversified industrial base, relying heavily on primary sectors such as agriculture.
• Low Population Growth: Underdeveloped economies often experience high population growth rates, which can strain resources and hinder economic development.

The Governor emphasized the importance of strong governance as the bedrock for informed and strategic decisions:

• This statement is correct.
• The Governor highlighted the crucial role of strong governance in ensuring that financial institutions make informed and strategic decisions, which is essential for maintaining the resilience of the financial system.

The Reserve Bank has significantly strengthened its supervisory systems by creating a unified department of supervision:

• This statement is correct.
• The RBI has indeed taken steps to enhance its supervisory framework by establishing a unified department of supervision, aimed at better oversight and regulation of financial institutions.

The Governor announced a new policy to reduce the capital to risk-weighted assets ratio (CRAR) to below the minimum regulatory requirement:

• This statement is incorrect.
• The RBI maintains stringent standards for the CRAR to ensure the stability and resilience of financial institutions. Reducing the CRAR below the minimum regulatory requirement would undermine financial stability and is not a policy the Governor would announce.

Understanding the statements regarding BoC workers

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Coverage
  • The inclusion of BoC workers under the PMJJBY for life insurance was indeed discussed during the videoconference chaired by the Ministry of Labour & Employment.
  • This scheme aims to provide life insurance cover to BoC workers, ensuring their financial security. Hence statement 1 is correct.
• Social and CAG Audits
  • All States and Union Territories were requested to complete social audits and CAG audits of the expenditures made under the BoC workers' cess fund.
  • This measure aims to ensure transparency and accountability in the utilization of funds meant for the welfare of BoC workers. Hence statement 2 is correct.
• Pradhan Mantri Jan Dhan Yojana (PMJDY) for Healthcare
  • The PMJDY is primarily a financial inclusion program, aimed at providing bank accounts and financial services to the unbanked population.
  • It does not specifically focus on providing healthcare facilities. Therefore, the mention of PMJDY for healthcare facilities for BoC workers is incorrect. Hence statement 3 is incorrect.

Financial Literacy Week 2024:

• The theme for Financial Literacy Week 2024 was "Make a Right Start: Become Financially Smart".
• This theme was specifically aimed at educating students and young adults about the importance of financial literacy.
• Financial Literacy Week focuses on raising awareness and educating individuals about various financial concepts and practices.
• Events and activities during the week included workshops, seminars, and interactive sessions to help young people understand the basics of managing finances, saving, and investing.

Objectives of Financial Literacy Week:

• To enhance financial literacy among students and young adults, equipping them with the knowledge to make informed financial decisions.
• To promote the importance of starting early in developing good financial habits and understanding financial products and services.
• To encourage savings, responsible spending, and informed investment decisions among the younger generation.
• To provide resources and tools that help young people navigate the financial landscape and avoid common financial pitfalls.

SHG Bank Linkage Programme (SHG-BLP):

• The SHG Bank Linkage Programme (SHG-BLP) was launched by NABARD in 1992, marking the beginning of what would become the world's largest microfinance project.
• This programme aimed to provide easier access to credit for rural women by linking self-help groups (SHGs) with banks.
• The initiative significantly reduced reliance on traditional money lenders, thereby empowering rural women financially.
• SHG-BLP has transformed the microfinance landscape in India, providing financial services to millions of rural women and enhancing their economic stability.

Impact of SHG-BLP:

• The programme has facilitated the formation and strengthening of self-help groups (SHGs) across the country.
• By linking SHGs with banks, SHG-BLP has enabled members to access credit, savings, and other financial services more easily.
• It has contributed to women's empowerment by enhancing their decision-making power and improving their socio-economic status.
• The success of SHG-BLP has inspired similar microfinance initiatives globally, making it a model for financial inclusion.

RBI's Role in FY24:

• The RBI's action of maintaining the status quo on the policy repo rate was crucial in managing inflation and ensuring financial stability in FY24.
• This approach focused on gradual inflation alignment to avoid sudden market disruptions and ensure steady economic growth.
• By keeping the policy repo rate unchanged, the RBI aimed to balance inflation control with supporting economic activity.
• Other measures, such as frequent adjustments to the SLR or imposing caps on interest rates, were not the primary actions taken by the RBI in FY24.

Objectives of RBI's Policy Actions:

• To control inflation while supporting economic growth.
• To ensure financial stability by avoiding abrupt changes in the monetary policy stance.
• To provide a predictable and stable interest rate environment for businesses and consumers.
• To enhance confidence in the financial markets by maintaining a consistent policy approach.

The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) offers skill training and certification to improve employability:

• This statement is correct.
• PMKVY aims to provide skill training and certification to improve the employability of youth by providing industry-relevant training and certification.

The Skill Loan Scheme provides loans to organizations for setting up training centers:

• This statement is incorrect.
• The Skill Loan Scheme is designed to provide financial assistance to individuals seeking to pursue skill development courses. It does not provide loans to organizations for setting up training centers.

The National Apprenticeship Promotion Scheme (NAPS) provides financial incentives to employers for apprenticeship training:

• This statement is correct.
• NAPS aims to promote apprenticeship training by providing financial incentives to employers to engage more apprentices, thereby enhancing the skill levels of the workforce.

The correct answer is  direct benefit transfer (DBT)

• National Social Assistance Programme (NSAP): The NSAP provides financial assistance in the form of social pensions to the elderly, widows, and persons with disabilities to ensure their basic needs are met.
• The main objective of NSAP is to provide a social safety net for vulnerable sections of society by offering financial support.
• Disbursement Method: The financial assistance under NSAP is disbursed using direct benefit transfer (DBT).
• Direct Benefit Transfer (DBT): DBT ensures that the financial assistance reaches the beneficiaries directly in their bank accounts, promoting transparency and efficiency in the disbursement process.
• Implementation: The scheme is implemented in collaboration with state governments, and the funds are transferred directly to the beneficiaries through their bank or post office accounts.

Major Points

• Checks: This method is not used for disbursing financial assistance under NSAP as it is less efficient and prone to delays.
• Cash Handouts: This method is not used for NSAP as it lacks transparency and security compared to DBT.
• Vouchers: Vouchers are not used for disbursing financial assistance under NSAP.
• Postal Orders: Postal orders are not used for NSAP as DBT offers a more secure and direct method of transferring funds.

Kisan Credit Card (KCC) Scheme:

• As of January 31, 2024, banks have issued 7.5 crore Kisan Credit Cards (KCC) to farmers across India.
• The total credit limit sanctioned under these KCCs amounts to ₹9.4 lakh crores.
• The KCC scheme aims to provide farmers with timely access to credit for their agricultural needs, including purchase of seeds, fertilizers, and other inputs.
• By facilitating easy and flexible credit access, the KCC scheme helps farmers manage their cash flow and enhances agricultural productivity.

Objectives of the KCC Scheme:

• To provide adequate and timely credit support to farmers for their cultivation and other needs.
• To simplify the process of credit disbursement to farmers by offering them a single credit facility for multiple purposes.
• To reduce the dependency on informal credit sources by making institutional credit easily accessible to farmers.
• To support agricultural and allied activities by providing flexible and affordable credit options.

Challenges and Steps in the Indian Education System:

• High dropout rates at the secondary level are a significant challenge in the Indian education system. Many students do not continue their education beyond primary school due to various socio-economic factors.
• The Right to Education (RTE) Act, implemented by the Government of India, aims to address these challenges by providing free and compulsory education for children aged 6 to 14 years. This step is crucial in ensuring that every child has access to basic education.
• The statement about the exclusive focus on urban education infrastructure is not entirely accurate. Efforts have been made to improve education infrastructure in both urban and rural areas, although disparities still exist.

Challenges in the Indian Education System:

• High dropout rates at the secondary level due to economic hardships, lack of access, and other social issues.
• Quality of education varies significantly between urban and rural areas, with rural areas often facing a shortage of trained teachers and resources.
• Infrastructure deficits in schools, including inadequate classrooms, sanitation facilities, and learning materials.

Steps Taken to Address Challenges:

• The Right to Education (RTE) Act ensures free and compulsory education for children aged 6 to 14, aiming to reduce dropout rates and improve enrollment.
• Government initiatives such as Sarva Shiksha Abhiyan (SSA) and Rashtriya Madhyamik Shiksha Abhiyan (RMSA) focus on improving school infrastructure and educational outcomes.
• Mid-Day Meal Scheme aims to enhance enrollment, retention, and attendance while also addressing nutritional needs of children.
• Efforts to train and recruit more teachers, especially in rural areas, to improve the quality of education.

The scheme is implemented by the Ministry of Food Processing Industries (MoFPI):

• This statement is correct.
• The SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) scheme is implemented by the Ministry of Food Processing Industries (MoFPI).

It aims to reduce wastage of agricultural produce and increase the income of farmers:

• This statement is correct.
• One of the key objectives of the SAMPADA scheme is to reduce post-harvest losses and wastage of agricultural produce, thereby increasing the income of farmers through better value realization and market linkages.

The scheme focuses solely on marine processing:

• This statement is incorrect.
• The SAMPADA scheme covers a wide range of agro-processing activities, including but not limited to marine processing. It aims to create modern infrastructure for food processing and value addition in the entire supply chain of agriculture and allied sectors.

Market Capitalisation to GDP Ratio:

• The market capitalisation to GDP ratio is a key indicator that compares the total market value of a country’s publicly traded companies to its Gross Domestic Product (GDP).
• As of the latest data, the Indian stock market’s market capitalisation to GDP ratio is the fifth largest in the world.
• This ratio reflects the size and value of the stock market relative to the overall economy.

Significance of Market Capitalisation to GDP Ratio:

• The market capitalisation to GDP ratio provides insights into the depth and maturity of a country's stock market.
• A higher ratio suggests a well-developed and sizable stock market relative to the economy.
• This ratio is used by investors and analysts to assess the market’s valuation levels and potential growth opportunities.

Social Issues and Government Approaches:

• Rising unemployment rates are a significant social issue in India. To address this, the government introduced the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), which incentivizes employers to generate new employment by providing them with financial support for the initial years of employee wages.
• High child mortality rates are another critical issue. The National Health Mission (NHM) aims to improve healthcare delivery across India, with a particular focus on maternal and child health, thereby reducing child mortality rates.
• The increasing digital divide highlights the gap in access to digital technologies and the internet between different sections of society. The government launched the Digital India initiative to bridge this divide by promoting digital literacy, improving online infrastructure, and making government services available electronically.

Challenges and Solutions:

• Unemployment: Addressed by the Pradhan Mantri Rojgar Protsahan Yojana, which supports employers in creating new jobs and reduces the financial burden on businesses during the initial employment period.
• Child Mortality: Tackled by the National Health Mission, which focuses on improving healthcare access, enhancing the quality of healthcare services, and implementing specific programs for maternal and child health.
• Digital Divide: The Digital India initiative aims to provide universal access to digital resources, improve digital infrastructure, and ensure that government services are easily accessible online to all citizens.

The correct answer is  Pradhan Mantri Jan Vikas Karyakram (PMJVK)

• Pradhan Mantri Jan Vikas Karyakram (PMJVK): This scheme aims to develop infrastructure, provide basic amenities, and reduce development deficits in identified Minority Concentration Areas.
• The main objective of PMJVK is to ensure holistic development of minority communities by providing essential facilities such as schools, sanitation, housing, and healthcare in minority-dominated regions.
• Removal of Non-functional Proposals: The Ministry of Minority Affairs has removed over 50,000 non-functional proposals for infrastructure projects under PMJVK, ensuring better allocation of resources to functional and impactful projects.
• Development Deficits: PMJVK focuses on reducing development deficits by creating critical infrastructure and improving the quality of life for minority communities.
• Implementation: The scheme is implemented in collaboration with state governments, local bodies, and other stakeholders to ensure effective execution and monitoring of projects.

Major Points

• Pradhan Mantri Gram Sadak Yojana (PMGSY): This scheme focuses on providing all-weather road connectivity to unconnected habitations in rural areas but does not specifically target minority communities.
• Pradhan Mantri Awas Yojana (PMAY): This scheme aims to provide affordable housing to all urban and rural poor, but it is not focused solely on minority communities.
• Swachh Bharat Mission (SBM): This mission aims to eliminate open defecation and improve solid waste management across India, not specifically targeting minority areas.
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): This scheme focuses on skill development and employment for rural youth, not specifically targeting infrastructure development in minority areas.

NABARD (National Bank for Agriculture and Rural Development):

• NABARD was established in 1982 to promote integrated rural development in India.
• It provides credit and financial services to farmers and rural businesses to enhance agricultural productivity and rural prosperity.
• NABARD plays a key role in supporting rural infrastructure development and ensuring the availability of financial resources for rural enterprises.
• It focuses on improving the livelihoods of the rural population by facilitating access to financial services and supporting sustainable development initiatives.

Objectives of NABARD:

• To provide financial assistance for agriculture, small-scale industries, cottage and village industries, and other rural crafts.
• To promote sustainable rural development through various developmental programs and initiatives.
• To support rural infrastructure projects that enhance agricultural productivity and rural connectivity.
• To facilitate financial inclusion by improving access to credit and financial services for the rural population.

The correct answer is: 1 and 2
India has made significant progress on climate action by increasing its renewable energy capacity:

• This statement is correct.
• India has substantially increased its renewable energy capacity, including solar and wind power, as part of its efforts to transition to cleaner energy sources and reduce greenhouse gas emissions.

India reduced the emission intensity of its GDP from 2005 levels by 33 percent in 2019:

• This statement is correct.
• India achieved a 33 percent reduction in the emission intensity of its GDP by 2019, reflecting its commitment to reducing carbon emissions while maintaining economic growth.

India's GDP grew at a CAGR of 3 percent between 2005 and 2019:

• This statement is incorrect.
• India's GDP growth rate during this period was higher than 3 percent CAGR. The country's economy experienced more robust growth rates, contributing to its overall economic development and capacity to invest in renewable energy and climate initiatives.

The correct answer is  Pradhan Mantri Janjatiya Unnat Gram Abhiyan

• Pradhan Mantri Janjatiya Unnat Gram Abhiyan: This scheme was introduced under the Budget 2024-2025 to improve the socio-economic condition of tribal communities by covering 63,000 villages and benefiting 5 crore tribal people.
• The main objective of this scheme is to promote inclusive development and social justice for the tribal population, ensuring they have access to essential services and opportunities for growth.
• Inclusive Development: The scheme focuses on various aspects such as education, healthcare, infrastructure, and employment to enhance the overall well-being of tribal communities.
• Social Justice: By addressing the specific needs of tribal populations, the scheme aims to reduce disparities and ensure equitable distribution of resources and opportunities.
• Implementation: The scheme is implemented in collaboration with state governments, local bodies, and tribal organizations to ensure effective delivery and monitoring of benefits.

Major Points

• Vanbandhu Kalyan Yojana: This scheme focuses on the overall development of tribal people but does not specifically target the extensive village coverage and large beneficiary count as the Pradhan Mantri Janjatiya Unnat Gram Abhiyan.
• Tribal Sub-Plan: While this plan aims at tribal welfare through dedicated funding, it is not the scheme introduced in the Budget 2024-2025.
• National Tribal Development Programme: This program also focuses on tribal development but does not specifically align with the objectives and scope of the newly introduced scheme.
• Adi Dravidar Welfare Scheme: This scheme targets the welfare of a different community and does not address the specific needs of tribal populations.

PM Gati Shakti:

• PM Gati Shakti is a National Master Plan for multi-modal connectivity, aiming to provide integrated and seamless connectivity for the movement of people, goods, and services.
• The plan seeks to enhance coordination and efficiency in infrastructure projects across various sectors such as roads, railways, ports, and airports.
• One of its key features is the creation of a digital platform that facilitates better planning and coordination among different government agencies and stakeholders.
• This digital platform aims to integrate all infrastructure initiatives under a single framework, ensuring holistic development and avoiding delays and cost overruns.

Objectives of PM Gati Shakti:

• To improve logistics efficiency and reduce the cost of transportation by providing multi-modal connectivity.
• To ensure timely implementation of infrastructure projects by enhancing coordination and reducing bottlenecks.
• To boost economic growth by improving the ease of doing business and attracting investments in infrastructure sectors.
• To support sustainable development by integrating environmental and social considerations into infrastructure planning and execution.

Economic Crisis of 1991:

• One of the major economic challenges in 1991 was the adverse balance of payments.
• The crisis was exacerbated by an increase in the deficit from Rs. 2,214 crore in 1980-81 to Rs. 17,367 crore in 1990-91.
• This significant increase in the deficit necessitated large amounts of foreign loans to stabilize the economy.
• The adverse balance of payments situation was a result of multiple factors including high oil prices, increased import costs, and declining exports.

Impact of the Balance of Payments Crisis:

• The balance of payments crisis led to a severe depletion of foreign exchange reserves, pushing the country to the brink of default.
• In response, the government initiated economic reforms in 1991 aimed at liberalization, privatization, and globalization.
• The reforms included measures to attract foreign investment, reduce fiscal deficits, and promote exports.
• These reforms marked a significant shift in India's economic policy, moving towards a more market-oriented economy.

Credit Disbursal by Scheduled Commercial Banks (SCBs):

• Credit disbursal by Scheduled Commercial Banks (SCBs) reached ₹164.3 lakh crore in FY24.
• This marks a growth of 20.2 percent at the end of March 2024.
• The significant growth in credit disbursal reflects the expansion of lending activities by SCBs to various sectors of the economy.
• Increased credit availability supports economic activities and stimulates growth in industries, businesses, and agriculture.

Factors Contributing to Credit Growth:

• Improved economic conditions and increased demand for credit from various sectors.
• Favorable monetary policies and measures by the Reserve Bank of India (RBI) to enhance liquidity in the banking system.
• Enhanced credit outreach programs and financial inclusion initiatives by banks.
• Focus on providing credit to priority sectors such as agriculture, small and medium enterprises (SMEs), and housing.

The correct answer is  Private Sector Banks

• Private Sector Banks: Private sector banks achieved the highest Priority Sector Lending (PSL) percentage to adjusted net bank credit (ANBC) in the financial year 2023-24.
• The main objective of Priority Sector Lending is to ensure that adequate credit is made available to sectors that are deemed important for the overall economic development, including agriculture, MSMEs, and other weaker sections.
• PSL Achievement: Private sector banks have demonstrated a strong commitment to PSL targets, leading to their top performance in terms of PSL percentage to ANBC.
• Impact: This achievement indicates the proactive role of private sector banks in supporting priority sectors, contributing to inclusive growth and economic development.
• Comparison: While public sector banks and foreign banks also contribute to PSL, private sector banks have outperformed them in the specified financial year.

Major Points

• Public Sector Banks: These banks play a significant role in PSL but did not achieve the highest percentage to ANBC in the financial year 2023-24.
• Foreign Banks: While they also contribute to PSL, their percentage to ANBC was lower than that of private sector banks in the financial year 2023-24.
• All of the above: This option is incorrect as only private sector banks achieved the highest PSL percentage to ANBC.
• None of the above: This option is incorrect as private sector banks achieved the highest PSL percentage to ANBC.

The correct answer is: 1, 2 and 3
Outstanding credit to micro enterprises increased significantly compared to the previous year:

• This statement is correct.
• The data indicates a significant increase in the outstanding credit extended to micro enterprises by Scheduled Commercial Banks (SCBs) as of December 2023, reflecting enhanced support and funding for these small businesses.

Small enterprises saw a decrease in the number of accounts from the previous year:

• This statement is correct.
• There was a noted decrease in the number of accounts for small enterprises, indicating either a consolidation of accounts or a reduction in the number of small businesses receiving credit.

Medium enterprises experienced an increase in both the number of accounts and the amount of outstanding credit during the same period:

• This statement is correct.
• Medium enterprises saw growth in both the number of credit accounts and the total amount of outstanding credit, demonstrating improved access to financial resources and expansion opportunities for these businesses.

Female Labour Force Participation Rate (FLFPR) in India:

• According to the Economic Survey 2023-24, the female labour force participation rate (FLFPR) in India has been rising over the last six years.
• According to the Economic Survey 2023-24, the FLFPR increased from 23.3% in 2017-18 to 37% in 2022-23.
• This increase indicates a positive trend in women's involvement in the workforce, contributing to economic growth and development.
• The rise in FLFPR can be attributed to various factors, including government initiatives to promote gender equality in employment and increased access to education and skills training for women.

Factors Influencing FLFPR:

• Government policies aimed at improving women's access to education and vocational training.
• Efforts to create a more inclusive work environment and provide equal opportunities for women in various sectors.
• Initiatives to enhance work-life balance for women, including flexible work arrangements and childcare support.
• Programs that encourage entrepreneurship among women, enabling them to start and grow their own businesses.

The correct answer is Manufacturing sector

Economic Survey 2023-24:

• According to the Economic Survey 2023-24, the Manufacturing sector is less exposed to Artificial Intelligence (AI) due to the limitations of industrial robots.
• Industrial robots in the Manufacturing sector face challenges related to adaptability, flexibility, and handling diverse tasks, making it difficult to fully integrate AI technologies.
• Despite advancements in automation, Manufacturing encounters limitations in AI applications compared to more structured and predictable environments.
• Other sectors like Services and Financial have seen broader AI adoption due to their more structured processes and data-driven applications.

AI Adoption Across Sectors:

• Sectors with repetitive tasks and predictable environments tend to benefit more from AI technologies.
• The Manufacturing sector faces difficulties with AI integration due to its need for high adaptability and the complexity of tasks involved in manufacturing processes.
• AI is more effectively integrated into Financial and Services sectors, which have clearer data patterns and structured operations that are more suitable for AI technologies.

The correct answer is  Scheme of Fund for Regeneration of Traditional Industries

• Scheme of Fund for Regeneration of Traditional Industries (SFURTI): This scheme aims at promoting traditional industries by organizing artisans into clusters to enhance productivity and competitiveness.
• The main objective of SFURTI is to support traditional industries by providing infrastructure, training, and market access, thereby increasing the income of artisans and ensuring sustainable development.
• Cluster-Based Approach: The scheme focuses on organizing artisans and traditional industries into clusters to improve efficiency, facilitate shared resources, and promote collaborative growth.
• Key Components: SFURTI includes components such as setting up Common Facility Centers (CFCs), skill development and capacity building, marketing support, and technology upgradation.
• Implementation: The scheme is implemented by the Ministry of Micro, Small and Medium Enterprises (MSME) in collaboration with various agencies and institutions to ensure effective execution and monitoring.

Major Points

• Scheme for Funding and Upgrading Rural Traditional Industries: This option does not correctly represent the acronym SFURTI.
• Scheme for Financial Upliftment of Rural Traditional Industries: This option does not correctly represent the acronym SFURTI.
• Scheme for Facilitating Urban and Rural Traditional Industries: This option does not correctly represent the acronym SFURTI.
• Scheme for Financial Assistance to Rural Traditional Industries: This option does not correctly represent the acronym SFURTI.

Effective Strategies for Harnessing Population Growth:

• Investing in Education and Health to Improve Human Capital: This strategy is the most effective in harnessing the potential of a growing population for economic development. By investing in education, individuals can acquire the necessary skills and knowledge to contribute productively to the economy. Improving health ensures a healthier workforce, reducing absenteeism and increasing productivity.
• Focusing Solely on Increasing Birth Rates: This is not an effective strategy. Merely increasing birth rates without corresponding investments in education, health, and employment opportunities can lead to a higher dependency ratio and strain resources.
• Restricting Urban Migration to Control Population Distribution: While controlling population distribution is important, restricting urban migration is not the most effective strategy. Urban areas often offer better employment and educational opportunities, and migration can help alleviate rural poverty.

Importance of Human Capital Development:

• Education and health are critical components of human capital development. By improving these areas, a country can enhance its workforce's productivity and innovation capabilities.
• Investments in education lead to a more skilled and knowledgeable workforce, which is essential for economic growth and development.
• Improving health outcomes ensures that individuals can work effectively and contribute to the economy over a longer period.

The correct answer is  Classification as MSMEs for priority sector lending

• Udyam Registration Certificate (URC): The URC is a crucial document launched by the Government of India for businesses to be officially recognized under the MSME category.
• The primary benefit of the Udyam Registration Certificate for MSMEs is their classification as MSMEs for priority sector lending.
• Priority Sector Lending: With the URC, MSMEs can access priority sector lending from banks, which means they are given preference when banks allocate their credit resources to different sectors.
• Banking Interactions: The classification as MSMEs helps these enterprises secure loans more easily and on favorable terms, supporting their growth and development.
• Official Recognition: The URC provides official recognition to businesses, making them eligible for various schemes and benefits offered by the government.

Major Points:

• International trade opportunities: While the URC may indirectly benefit MSMEs by providing a recognized status, its primary benefit is not specifically related to international trade opportunities.
• Exemption from taxes: The URC does not provide direct tax exemptions; tax benefits for MSMEs are provided under different schemes and policies.
• Automatic approval of patents: The URC does not offer automatic approval of patents; patent approvals follow a separate legal process.
• None of the above: This option is incorrect because the primary benefit of the URC is related to priority sector lending classification for MSMEs.