UPSC Prelims 2017 Analysis

Explanation

1. Incorrect Whether the owner is aware or not isn't the sole factor. A property transaction can be considered benami if -The property is transferred to one person (benamidar) for a consideration paid by another (real owner). -The transaction is conducted in a fictitious name.

2. Correct Properties held benami are indeed liable for confiscation by the Central Government. This discourages the practice of using benami transactions to hide ownership.

3. Incorrect The PBPT Act does provide for an appellate mechanism. Here's the hierarchy

Adjudicating Authority Investigates and decides on benami transactions initially. Appellate Tribunal Parties aggrieved by the Adjudicating Authority's decision can appeal to this tribunal.

Therefore, the correct answer is 2 only

Explanation

1. Correct The Monetary Policy Committee (MPC) does decide the RBI's benchmark interest rates. This is its primary function, and it influences the cost of borrowing and lending in the economy.

2. Incorrect The MPC is a 6-member body, not 12. It includes the Governor of RBI and other members appointed by the government. The committee is not reconstituted every year, but members serve for specified terms.

3. Incorrect The MPC functions under the chairmanship of the Governor of RBI, not the Union Finance Minister.

Therefore, the correct answer is 1 only.

Explanation

E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price through smooth marketing.

1. Pan-India electronic trading portal (Correct) This is a core feature of NAM. It creates a unified online platform where farmers can connect with buyers from across the country, eliminating geographical restrictions and potentially increasing market access.

2. Access to nationwide market and better prices (Correct) NAM allows farmers to see prices prevailing in various mandis (wholesale markets) across the country. This transparency empowers them to choose the market offering the best price for their produce, potentially fetching them higher returns compared to traditional, localized markets.

Therefore, the correct answer is 1 and 2 both are correct.

Explanation

The Global Infrastructure Facility (GIF) is a partnership between governments, multilateral development banks, private sector investors, and financiers.

The GIF provides comprehensive project support by utilizing the combined expertise of its technical and advisory partners, including commercial banks and institutional investors. This ensures that well-structured and bankable infrastructure projects are brought to market sustainably, meeting the needs of governments and service users.

The GIF partnership is overseen by a Governing Council that supervises strategic programming and funds management, as well as the development of operational policies and procedures. Additionally, the Governing Council holds the GIF's management accountable for delivering on objectives and principles. The Governing Council is composed of representatives of funding and technical partners, as well as representatives of emerging markets and developing economies. It is co-chaired by the World Bank Group and a Funding Partner.

Explanation

1. Share of agriculture in GDP This share has actually decreased since 1991, as the service sector has grown significantly.

2. Share of India's exports in world trade This share has increased. India has become a more integrated part of the global economy, with a larger export footprint.

3. FDI inflows These have increased considerably. The liberalization measures made India a more attractive destination for foreign investment.

4. India's foreign exchange reserves These have also increased enormously. This reflects India's improved ability to generate foreign currency and manage its external finances.

Therefore, the correct answer is 2, 3, and 4 only.

Explanation

The National Payments Corporation of India (NPCI) was established to facilitate retail payments and promote financial inclusion in India. They achieve this by

1. Developing and deploying innovative payment infrastructure like RuPay cards, UPI, etc.
2. Enabling participation of a wider range of players in the payments system, including non-bank entities.
3. Setting standards and guidelines to ensure secure and efficient electronic payments.

RuPay is a domestic debit and credit card payment network launched by NPCI in India. It provides an alternative to international card networks like Visa and Mastercard. This domestic network can potentially lower transaction costs for merchants and banks compared to international schemes.

Therefore, both statement 1 and statement 2 are correct.

Explanation

Unified Payments Interface (UPI) is an instant real-time payment system developed by NPCI to facilitate interbank transactions through mobile phones.

UPI allows you to pay directly from your bank account to different merchants without the hassle of typing your card details, or net banking/wallet password. Hence option 1 is correct.

UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone.

Explanation

Small Finance Banks (SFBs) are niche banks specifically designed to cater to the underserved and unbanked sections of the population, including small businesses, marginal farmers, and micro-industries.

Incorrect While SFBs might indirectly contribute to rural development by providing credit to small businesses in rural areas, their primary objective is not explicitly to encourage young entrepreneurs to set up businesses there (option 3).

In conclusion, SFBs focus on financial inclusion by providing credit facilities to small businesses and marginal farmers.

Explanation

The Digital Single Market Strategy refers to an initiative by the European Union (EU) that aims to create a unified digital market across all member states.

Overall, the Digital Single Market Strategy aims to stimulate growth in the European digital economy by fostering innovation, competition, and consumer confidence in the online marketplace.

Explanation

The Quality Council of India (QCI) is a pioneering experiment of the Government of India in setting up organizations in partnership with the Indian industry.

Quality Council of India (QCI) was set up in 1997 jointly by the Government of India and the Indian Industry represented by the three premier industry associations i.e. Associated Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), to establish and operate national accreditation structure and promote quality through National Quality Campaign.

The Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, is the nodal ministry for QCI. QCI is governed by a Council comprising of 38 members including the Chairman and Secretary General.

The chairman is appointed by the Prime Minister on the recommendation of the industry to the government.

Explanation

Both statements are incorrect

Tax revenue as a percentage of GDP in India has not steadily increased over the last decade (2007-2017). There have been fluctuations in tax revenue as a percentage of GDP during this period, influenced by various economic factors and government policies.

Similarly, fiscal deficit as a percentage of GDP in India has not steadily increased over the last decade (2007-2017). While there have been periods of increase, there have also been efforts by the government to reduce the fiscal deficit through fiscal consolidation measures.

Therefore, neither statement is correct.

Explanation

Goods and Service Tax (GST) replaces multiple indirect taxes levied by central and state governments, creating a unified market. This can simplify tax compliance and potentially reduce the cost of goods and services for consumers. Hence, statement 1 is correct.

While GST can improve efficiency in tax collection, it's not a direct solution to the current account deficit, which is influenced by factors like trade balance and foreign investment.

The impact of GST on economic growth is complex and depends on various other factors. It's unlikely to solely propel India's economy to overtake China's in the near future.

Therefore, the most likely advantage of GST is 1 only.

Explanation

Out of the listed statements about the Soil Health Card Scheme

1. Incorrect Expanding the cultivable area under irrigation is not a primary objective of the scheme.

2. Incorrect Banks don't directly use soil cards to assess loan quantum. Loan approvals depend on various factors like land ownership, crop type, and credit history.

3. Correct A key objective of the scheme is to promote the judicious use of fertilizers. By informing farmers about their soil's nutrient status, the scheme encourages them to apply only the required amount of fertilizers, reducing overuse and potential environmental damage.

Therefore, the correct answer is 3 only (checking the overuse of fertilizers in farmlands).

Explanation

A scheme was launched by the Reserve Bank of India (RBI) on 13 June 2016, named Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme) for addressing the large stressed assets of the corporate sector with banks.

The S4A Scheme aims at the deep financial restructuring of big debted projects by allowing lenders (banks) to acquire equity of the stressed project. In this context, the scheme makes the financial restructuring of large projects at the same time helping the lender's ability to deal with such stressed assets. It is intended to restore the flow of credit to critical sectors including infrastructure.

Explanation

1. Correct The National IPR Policy does reiterate India's commitment to the Doha Development Agenda and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement).

The Doha Development Agenda aimed to clarify and improve specific aspects of the TRIPS Agreement, particularly focusing on flexibilities for developing countries. India, as a developing nation, is entitled to certain flexibilities in implementing the TRIPS Agreement, such as using compulsory licensing to ensure access to affordable medicines.

2. Correct The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry is the nodal agency for the development and implementation of IPR policy in India, earlier its name was the Department of Industrial Policy and Promotion.

Explanation

Domestic Content Requirement (DCR) is a policy tool used by governments to encourage local industries to grow and reduce dependence on imports. In the context of solar power production, DCR mandates that a certain percentage of solar equipment used in the production process must be domestically produced. This policy is aimed at promoting indigenous manufacturing and reducing dependence on imports.

Explanation

National Investment and Infrastructure Fund (NIIF) is India's first sovereign wealth fund that was set up by the Government of India in February 2015. The objective behind creating this fund was to maximize economic impact mainly through infrastructure investment in commercially viable projects, both Greenfield and Brownfield.

In Union Budget 2015-16, India's Finance Minister, Arun Jaitley announced the creation of the National Investment and Infrastructure Fund. It was proposed to be established as an Alternative Investment Fund to provide long-term capital for infrastructure projects with an inflow of Rs. 20,000 crore from the Government of India. NIIF was approved in August 2015 by the Department of Economic Affairs. The first meeting of its governing council was held in December 2015 further to which it was registered with SEBI as Category II Alternative Investment Fund.

Explanation

The Bureau of Indian Standards (BIS) is the National Standards Body of India working under the aegis of Ministry of Consumer Affairs, Food & Public Distribution, Government of India.

The first statement is correct. The Bureau of Indian Standards (BIS) Standard Mark is indeed mandatory for automotive tyres and tubes.

AGMARK is a quality Certification Mark issued by the Directorate of Marketing and Inspection (DMI), an agency of the Government of India, and not by the Food and Agriculture Organization (FAO). The FAO is an international organization that promotes food security and agricultural development. Statement 2 is incorrect.