[Mission 2022] Insta– QUED ( Questions from Editorials. ) 14 October 2021

Solution: a)

Indra Sawhney vs Union of India and M Nagraj case:

• In its landmark 1992 decision in Indra Sawhney vs Union of India, the Supreme Court had held that reservations under Article 16(4) could only be provided at the time of entry into government service but not in matters of promotion.
• It added that the principle would operate only prospectively and not affect promotions already made and that reservation already provided in promotions shall continue in operation for a period of five years from the date of the judgment. It also ruled that the creamy layer can be and must be excluded.
• On June 17, 1995, Parliament, acting in its constituent capacity, adopted the seventy-seventh amendment by which clause (4A) was inserted into Article 16 to enable reservation to be made in promotion for SCs and STs. The validity of the seventy-seventh and eighty-fifth amendments to the Constitution and of the legislation enacted in pursuance of those amendments was challenged before the Supreme Court in the Nagaraj case.
• Upholding the validity of Article 16 (4A), the court then said that it is an enabling provision. “The State is not bound to make reservation for the SCs and STs in promotions. But, if it seeks to do so, it must collect quantifiable data on three facets — the backwardness of the class; the inadequacy of the representation of that class in public employment; and the general efficiency of service as mandated by Article 335 would not be affected”.

Solution: c)

Core Inflation is also known as underlying inflation, is a measure of inflation which excludes items that face volatile price movement, notably food and energy. In other words, Core Inflation is nothing but Headline Inflation minus inflation that is contributed by food and energy commodities.

Solution: c)

The Universal Declaration of Human Rights (UDHR) was adopted by the UNGA in 1948 itself, whereas the Amnesty International was found in 1961.

In the field of international human rights organisations, Amnesty has the second longest history, after the International Federation for Human Rights and broadest name recognition, and is believed by many to set standards for the movement as a whole.

Solution: a)

Fiscal Consolidation refers to the policies undertaken by Governments (national and sub-national levels) to reduce their deficits and accumulation of debt stock.

Increasing the subsidies increases the expenditure of government. Thus, it will go against the principle of fiscal consolidation.

Increasing the tax base increases the tax collection. Thus, it increases the revenue for the government and promotes the fiscal consolidation.

Supporting the export oriented industries help in increasing the forex reserves of the country. Thus, help in promoting the fiscal consolidation. Hence,

Solution: a)

The government’s latest Budget proposes to set up a Development Finance Institution soon to fund the ambitious national infrastructure pipeline.

A development finance institution (DFI) also known as a development bank is a financial institution that provides risk capital for economic development projects on non-commercial basis. 

During the pre-liberalised era, India had DFIs which were primarily engaged in development of industry in the country.

In India, the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation (IFCI). Subsequently, the Industrial Credit and Investment Corporation of India (ICICI) was set up with the backing of the World Bank in 1955.

The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.

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