DAY – 32 ( INSTA REVISION TEST)INSTA REVISION PLAN 3.0, 2020

Solution: A

The most important and the fastest growing sector of Indian economy are services. Trade, hotels, transport and communication; financing, insurance, real estate and business services and community, social and personal services account for more than 60 percent of GDP. Agriculture, forestry and fishing constitute around 12 percent of the output, but employs more than 50 percent of the labor force. Manufacturing accounts for 15 percent of GDP, construction for another 8 percent and mining, quarrying, electricity, gas and water supply for the remaining 5 percent.

Solution: D

The renaming and restructuring of the Department of Disinvestment were announced by the Finance Minister in his 2016-17 budget speech.

As a follow-up, the Dept of Disinvestment has been renamed as the Department of Investment and Public Asset Management or ‘DIPAM’ but it continues to function under the Ministry of Finance.

Aim of DIPAM: Efficient management of center’s investments in equity including its disinvestment in central public sector undertakings (CPSU).

Solution: A

Cabinet Secretary:

A cabinet secretary is appointed for a fixed tenure of two years.

According to All India Services (Death-Cum-Retirement-Benefits) Rules, 1958, the government can give extension in service to a cabinet secretary provided the total tenure does not exceed four years.

As per the modified rules, the central government may give an extension in service for a further period not exceeding three months, beyond the period of four years to a cabinet secretary.

Role of the cabinet secretary:

• The cabinet secretariat is under the direct charge of the prime minister.
• The administrative head of the secretariat is the cabinet secretary who is also the ex-officio chairman of the civil services board.

Functions:

• The cabinet secretariat assists in decision-making in government by ensuring inter-ministerial coordination, ironing out differences amongst ministries or departments and evolving consensus through the instrumentality of the standing or ad hoc committees of secretaries.
• Management of major crisis situations in the country and coordinating activities of various ministries in such a situation is also one of the functions of the cabinet secretariat.
• Cabinet Secretariat is responsible for the administration of the Government of India (Transaction of Business) Rules, 1961 and the Government of India (Allocation of Business) Rules 1961, facilitating smooth transaction of business in Ministries/ Departments of the Government.

Solution: A

There are primarily three different approaches to disinvestments:

Minority disinvestment: The government retains a majority stake (typically more than 51%) in the company and it ensures management control. Some examples of minority disinvestment via Offer for Sale include recent issues of Power Grid Corp. of India Ltd., Rural Electrification Corp. Ltd., NTPC Ltd, NHPC Ltd, etc.

Majority disinvestment: The government retains a minority stake in the company i.e. it sells off a majority stake. It is also called Strategic Disinvestment. These strategic partners could be other Central Public Sector Enterprises (CPSEs) themselves, a few examples being sale of BRPL/MRL to Indian Oil Corporation Ltd. (IOC) and KRL to BPCL. Alternatively, these strategic partners can be private entities, like the sale of Modern Foods to Hindustan Lever Ltd., CMC to Tata Consultancy Services Ltd. (TCS).

Complete disinvestment or privatization: It is a form of majority disinvestment wherein 100% control of the company is passed on to a buyer i.e.  government completely disinvests from that PSU. Example of this includes 18 hotel properties of India Tourism Development Corporation (ITDC).

Solution: C

‘Zo Kutpui’ festival

• Mizoram govt organised ‘Zo Kutpui’ globally to unify Mizo tribes.
• The first festival would be held at Vanghmun, a hub town of Mizos in neighbouring Tripura.
• The event will see the presence of many important dignitaries from various Mizoram tribes and also witness cultural programmes and traditional songs from various Mizo tribes from Mizoram and other northeastern states.
• The event aims at re-unifying and strengthening brotherhood among different tribes of Mizo.

Solution: C

The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government and civil society, through advisory and consultative processes.

For 125 years, CII has been working on shaping India’s development journey and, this year, more than ever before, it will continue to proactively transform Indian industry’s engagement in national development.

CII is a non-government, not-for-profit, industry-led and industry-managed organization, with about 9100 members from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 300,000 enterprises from 288 national and regional sectoral industry bodies.

Solution: B

National Policy on Electronics (NPE), passed by the Union Cabinet in February 2019, envisaged the creation of Rs 27.96 lakh crore (US$ 400 billion) electronics manufacturing industry in the country by 2025. 32 per cent growth rate has been targeted globally over the next five years. Electronics manufacturing is expected to increase at an annual rate of 30 per cent over the next five years and clock Rs 11.5 lakh crore (US$ 163.14 billion) additional production during this period.

The Union Cabinet gave its approval to the National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology (MeitY). The Policy envisions positioning India as a global hub for Electronics System Design and Manufacturing – (ESDM) by encouraging and driving capabilities in the country for developing core components, including chipsets, and creating an enabling environment for the industry to compete globally.

Salient Features of NPE 2019

• Create eco-system for globally competitive ESDM sector: Promoting domestic manufacturing and export in the entire value-chain of ESDM.
• Provide incentives and support for manufacturing of core electronic components.
• Provide special package of incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
• Formulate suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
• Promote Industry-led R&D and innovation in all sub-sectors of electronics, including grass root level innovations and early stage Start-ups in emerging technology areas such as 5G, loT/ Sensors, Artificial Intelligence (Al), Machine Learning, Virtual Reality (VR), Drones, Robotics,   Additive   Manufacturing,   Photonics,   Nano-based devices, etc.
• Provide incentives   and   support   for   significantly   enhancing availability of skilled manpower, including re-skilling.
• Special thrust on Fabless Chip  Design  Industry,  Medical Electronic Devices Industry, Automotive Electronics Industry and Power Electronics for Mobility and Strategic Electronics Industry.
• Create Sovereign Patent Fund (SPF) to promote the development and acquisition of IPs in ESDM sector.
• Promote trusted electronics value chain initiatives to improve national cyber security profile.

Solution: B

Hampi:

• It is a UNESCO world heritage site.
• It was a part of the Mauryan Empire back in the third century BC. 
• Hampi was the capital city during the four different dynasties altogether in the Vijayanagar city that came into existence in the year 1336 AD.
• The Vijayanagara Empire reached unfathomable heights under the guidance of King Krishnadeva Raya of the Tuluva Dynasty. 
• ‘Kishkindha Kaand’ in Ramayana has special significance concerning Hampi.
• It is located near the Tungabhadra river.
• By 1500 CE, Hampi-Vijayanagara was the world’s second-largest medieval-era city after Beijing, and probably India’s richest at that time, attracting traders from Persia and Portugal.
• It has been described by UNESCO as an “austere, grandiose site” of more than 1,600 surviving remains of the last great Hindu kingdom in South India.

Solution: B

India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India. IBEF’s primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate dissemination of knowledge of Indian products and services. Towards this objective, IBEF works closely with stakeholders across government and industry

India, today, is well established as a credible business partner, preferred investment destination, rapidly growing market, provider of quality services and manufactured products; and, stands on the threshold years of unprecedented growth.

India’s Talent, Markets, Growth and Opportunity drive Brand India.

http://www.ibef.org is a knowledge centre for global investors, international policy-makers and world media seeking updated, accurate and comprehensive information on the Indian economy, states and sectors. IBEF regularly tracks government announcements in policy, foreign investment, macroeconomic indicators and business trends.

IBEF works with a network of stakeholders – domestic and international – to promote Brand India.

Solution: B

Eat Right Movement:

• It was launched by the Food Safety and Standards Authority of India (FSSAI).
• The movement aims to cut down salt/sugar and oil consumption by 30% in three years.
• It also aims to engage and enable citizens to improve their health and well-being by making the right food choices.

Solution: B

Eleventh Five Year Plan:

1. Its duration was from 2007 to 2012, under the leadership of Manmohan Singh.
2. It was prepared by the C. Rangarajan.

III. Its main theme was “rapid and more inclusive growth”.

IV. It achieved a growth rate of 8% against a target of 9% growth.

Solution: D

History of Planning in India & Origin of Five-Year Plans

Though the planned economic development in India began in 1951 with the inception of First Five Year Plan, theoretical efforts had begun much earlier , even prior to the independence. Setting up of National Planning Committee by Indian National Congress in 1938, The Bombay Plan & Gandhian Plan in 1944, Peoples Plan in 1945 (by post war reconstruction Committee of Indian Trade Union), Sarvodaya Plan in 1950 by Jaiprakash Narayan were steps in this direction.

Solution: A

Gram Nyayalayas:

• Gram Nyayalayas or village courts are established under the Gram Nyayalayas Act, 2008 for speedy and easy access to justice system in the rural areas of India.
• The Act came into force from 2 October 2009.

Composition:

• The Gram Nyayalayas are presided over by a Nyayadhikari, who will have the same power, enjoy same salary and benefits of a Judicial Magistrate of First Class. Such Nyayadhikari are to be appointed by the State Government in consultation with the respective High Court.

Jurisdiction:

• A Gram Nyayalaya have jurisdiction over an area specified by a notification by the State Government in consultation with the respective High Court.
• The Court can function as a mobile court at any place within the jurisdiction of such Gram Nyayalaya, after giving wide publicity to that regards.
• They have both civil and criminal jurisdiction over the offences.
• The pecuniary jurisdiction of the Nyayalayas are fixed by the respective High Courts.
• Gram Nyayalayas has been given power to accept certain evidences which would otherwise not be acceptable under Indian Evidence Act.

Procedure to be followed:

• Gram Nyayalayas can follow special procedures in civil matters, in a manner it deem just and reasonable in the interest of justice.
• Gram Nyayalayas allow for conciliation of the dispute and settlement of the same in the first instance.

Appeals:

• Appeal in criminal cases shall lie to the Court of Session, which shall be heard and disposed of within a period of six months from the date of filing of such appeal.
• Appeal in civil cases shall lie to the District Court, which shall be heard and disposed of within a period of six months from the date of filing of the appeal.

Solution: D

Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist states and several capitalist countries subsequently have adopted them.

After independence, India launched its First FYP in 1951, under socialist influence of first Prime Minister Jawaharlal Nehru. The process began with setting up of Planning Commission in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources and determining priorities.

For  the  first  eight  Plans  the  emphasis  was  on  a  growing  public  sector  with  massive  investments  in  basic  and  heavy  industries,  but  since  the  launch  of  the  Ninth  Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature.

Solution: D

Solution: A

The Indian economy shrank 23.9% year-on-year in the second quarter of 2020, much worse than market forecasts of an 18.3% drop. It is the biggest contraction on record, as India imposed a coronavirus lockdown in late March and extended it several times, halting most economic activities.

On the expenditure side, gross fixed capital formation recorded the biggest decrease (-47.1%). Private spending shrank 26.7%, inventories fell 20.8%, exports went down 19.8% and imports sank 40.4%. In contrast, government consumption jumped 16.4% as the government implemented relief measures to help curb the impact of the pandemic.

Solution: B

The World Investment Report has been published annually since 1991 by the United Nations Conference on Trade and Development (UNCTAD). The report focuses on trends in foreign direct investment (FDI) worldwide, at the regional and country levels and emerging measures to improve its contribution.

Other reports published by UNCTAD include Trade and Development Report,  The Least Developed Countries Report, World Economic Situation and Prospects, Information and Economy Report, Technology and Innovation Report, and Commodities and Development Report.

Solution: B

Classical Language in India is an official status within the Republic of India, awarded by the Government of India.

There are six languages enjoy the ‘Classical’ status:

• Tamil (declared in 2004).
• Sanskrit (2005)
• Kannada (2008)
• Telugu (2008)
• Malayalam (2013)
• Odia (2014)

Solution: C

List of Maharatna, and Navratna CPSEs

As per available information (as on January, 2020)

Maharatna CPSEs

1. Bharat Heavy Electricals Limited
2. Bharat Petroleum Corporation Limited
3. Coal India Limited
4. GAIL (India) Limited
5. Hindustan Petroleum Corporation Limited
6. Indian Oil Corporation Limited
7. NTPC Limited
8. Oil & Natural Gas Corporation Limited
9. Power Grid Corporation of India Limited
10. Steel Authority of India Limited

Navratna CPSEs

1. Bharat Electronics Limited
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
5. Mahanagar Telephone Nigam Limited
6. National Aluminium Company Limited
7. NBCC (India) Limited
8. NMDC Limited
9. NLC India Limited
10. Oil India Limited
11. Power Finance Corporation Limited
12. Rashtriya Ispat Nigam Limited
13. Rural Electrification Corporation Limited
14. Shipping Corporation of India Limited

https://dpe.gov.in/about-us/divisions/list-maharatna-navratna-and-miniratna-cpses

Solution: D

Golconda Fort was originally known as Mankal, and built on a hilltop in the year 1143. The fort was built by the Kakatiya dynasty.

India’s one of the most outstanding citadels, the Golconda fort epitomises the sumptuous ‘Nawabi’ culture of the time.

The Golconda fort came into the possession of the Bahmani dynasty.

Solution: B

Core of the Core Schemes:

1. National Social Assistance Progamme (Department of Rural Development)
2. Mahatma Gandhi National Rural Employment Guarantee Programme (Department of Rural Development)
3. Umbrella Scheme for Development of Schedule Castes (Department of Social Justice and Empowerment)
   1. Special Central Assistance
   2. Civil Rights, Educational Empowerment, Infrastructure Development, Livelihoods
4. Umbrella Programme for Development of Scheduled Tribes (Ministry of Tribal Affairs)
   1. Special Central Assistance
   2. Tribal Education
   3. Vanbandhu Kalyan Yojana
5. Umbrella Programme for Development of Minorities
6. Umbrella Programme for Development of Other Vulnerable Groups Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and  National Health Mission (NHM) are categorized as Core schemes.

Solution: D

National Investment Fund

Government had constituted the National Investment Fund (NIF) in November, 2005 into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized. The corpus of NIF was to be of a permanent nature and NIF was to be professionally managed to provide sustainable returns to the Government, without depleting the corpus. Selected Public Sector Mutual Funds, namely UTI Asset Management Company Ltd., SBI Funds Management Private Ltd. and LIC Mutual Fund Asset Management Company Ltd. were entrusted with the management of the NIF corpus.

As per this Scheme, 75% of the annual income of the NIF was to be used for financing selected social sector schemes which promote education, health and employment. The residual 25% of the annual income of NIF was to be used to meet the capital investment requirements of profitable and revivable PSUs.

In view of the difficult economic situation caused by the global slowdown of 2008-09 and a severe drought in 2009-10, Government approved a change in the policy for utilization of disinvestment proceeds (5th of November 2009) by granting a one-time exemption to utilize the disinvestment proceeds directly for selected Social Sector Schemes allocated by Department of Expenditure/ Planning Commission. This exemption was to be operational for the period April 2009-March 2012. In view of the persistent difficult condition of the economy, the exemption from channelizing the disinvestment proceeds in the NIF was further extended by another year i.e. from April 2012 to March 2013

In order to align the NIF with the disinvestment Policy, Government decided (17th January 2013) that the disinvestment proceeds, with effect from the fiscal year 2013-14, will be credited to the existing NIF which is a ‘Public Account’ under the Government Accounts and the funds would remain there until withdrawn/invested for the approved purposes. It was also simultaneously decided that the NIF would be utilized for the following purposes:

(i)  Subscribing to the shares being issued by the CPSE on rights basis so as to ensure that 51% ownership of the Government in CPSEs is not diluted.

(ii) Preferential allotment of shares of the CPSE to promoters as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 so that Government shareholding does not go down below 51% in all cases where the CPSEs desire to raise fresh equity to meet their Capex programme.

(iii) Recapitalization of public sector banks and public sector insurance companies so as to strengthen them by further capital infusion towards achieving the Basel III norms

The Government further approved inclusion of the following purposes also, to be financed from the NIF (21st February, 2013).

(i) Investment by Government in RRBs/IIFCL/NABARD/Exim Bank;.

(ii) Equity infusion in various Metro projects;

(iii) Investment in Bhartiya Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India Ltd.

(iv) Investment in Indian Railways towards capital expenditure.

Solution: D

The International Solar Alliance is an alliance of 121 countries initiated by India, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.

It was launched at the Paris Climate Change Summit (COP21) in 2015. Hence,

Membership of the body is open to all countries that want to join the grouping, with no restrictions on duration of sunlight or geographical location.

Headquarter of the organization is located in Gurugram, India.

Solution: B

Structure of an economy refers to the fundamental features of the economy like the size of the primary, secondary and tertiary sectors in terms of their contribution to GDP and employment. Other important elements of structure are trade composition (the items that we export and import), saving GDP ratio (level of savings as a percent of GDP) etc. Structure of the economy thus means the occupational structure, sectoral distribution of income, industrial pattern, composition of exports, saving- GDP ratio etc.

Solution: B

Agreement for the Strategic Partnership Council (SPC) between India and Saudi Arabia has been signed.

India will become the fourth country with which the Kingdom has formed a strategic partnership, the others being the UK, France and China.

The SPC will have two parallel tracks: Political, security, culture and society, headed by both countries’ foreign ministers; and economy and investment, headed by India’s commerce and industry minister and the Saudi energy minister.