UPSC Editorials Quiz : 31 January 2026

Solution: C

• The Technology Adoption Fund (TAF) is a financial initiative launched by IN-SPACe to support Indian startups, MSMEs, and industries in commercializing early-stage space technologies. One of its key goals is to reduce dependency on imported space technologies by fostering domestic innovation.
• TAF provides funding for research and development in satellite technology, launch vehicles, and space-based services.

However, it does not provide grants to foreign private entities; the focus is entirely on Indian non-government entities (NGEs) to strengthen India’s self-reliance in space technology.

Solution: D

Statement 1 is correct: The Mahatma Gandhi Marine National Park (MGNP) in the Andaman Islands protects coral reefs, marine life, and nesting sea turtles.
Statement 2 is correct: Dugongs (sea cows) are found in the shallow waters of the Andaman Sea, especially around Little Andaman Island.

Solution: B

• Rupee-Dollar Swap Auctions are conducted by the RBI to manage liquidity and reduce volatility in the currency market. Banks sell USD to RBI in exchange for INR and later repurchase the USD at a pre-agreed rate.
• While swap auctions can indirectly impact inflation by managing liquidity, their primary purpose is not inflation control but liquidity management. The RBI uses other monetary tools like repo rates and CRR adjustments for inflation control.

About Rupee & Dollar Swap Auctions:

• It is a tool used by RBIto manage liquidity in the economy and stabilize currency volatility.
• Banks sell US dollarsto RBI in exchange for rupees in the first leg and agree to repurchase dollars at a future date.
• Who Conducts It?
  • The Reserve Bank of India (RBI), as part of its monetary policy interventions, executes the swap auctions.
• How It Works?
  • First Leg (Buy Phase):Banks sell USD to RBI and receive Indian Rupees (INR).
  • Reverse Leg (Sell Phase):Banks buy back USD from RBI at a pre-determined price at the end of the swap period.
• Key Features of the Swap:
  • Tenor:Can be short-term (6 months) or long-term (3 years or more).
  • Liquidity Management:Used to infuse or absorb rupee liquidity in the system.
  • Forex Reserve Utilization:RBI uses its forex reserves to regulate currency flows.
  • Impact on Exchange Rate:Helps stabilize rupee fluctuations against the dollar.
• Impact on the Indian Economy:
  • Improves Banking Liquidity:Injects Rs 86,000 crore into the banking system, addressing the current liquidity shortfall of Rs 1.7 lakh crore.
  • Enhances Monetary Policy Transmission:Ensures that interest rates in money markets align with RBI’s policy stance.
  • Strengthens the Rupee:Reduces depreciation pressure on INR due to forex market fluctuations.
  • Supports Economic Growth:Enables banks to lend more to businesses and industries, promoting investment and consumption.
  • Controls Inflation Risks:Provides liquidity without increasing inflationary pressures, as money is infused against future forex obligations.

Solution: C

• Constitutional morality is crucial in a diverse democracy like India as it upholds the rule of law, individual rights, and democratic principles, ensuring that governance aligns with the Constitution rather than popular sentiment.
• It protects fundamental rights, minority rights, and social justice, preventing the tyranny of the majority and arbitrary state actions. This aligns with the Indian Constitution’s vision of justice, liberty, and equality.
• However, the reason (R) is incorrect because governance should be based on constitutional values rather than popular opinion. In a democracy, public opinion is important, but it cannot override the fundamental principles of the Constitution. Governance driven purely by majority sentiment may lead to discrimination, exclusion, or the dilution of fundamental rights. Therefore, while constitutional morality safeguards democracy, it is not meant to prioritize popular opinion over constitutional principles.

Solution: B

The Agricultural and Processed Food Products Export Development Authority (APEDA) plays a significant role in promoting Indian agricultural exports, but its scope is not exclusive to all agri-exports.

• Statement 1 is incorrect: APEDA does not regulate tea and coffee exports; these are managed by the Tea Board of India and Coffee Board of India, which function under the Ministry of Commerce & Industry. APEDA primarily handles processed food, fruits, vegetables, and livestock products.

• Statement 2 is incorrect: ANARNET is a traceability system for pomegranates, ensuring quality and export compliance, not for dairy products. The dairy sector in India is mainly governed by the National Dairy Development Board (NDDB) and FSSAI for food safety regulations.
• Statement 3 is correct: APEDA promotes GI-tagged agricultural products like Basmati rice, Alphonso mangoes, and Darjeeling tea in global markets, enhancing India’s agricultural brand value.