Indian Economy Quiz: Day 10

Answer: (c)

• Transfer payments are a one-way payment of money for which no good or service is received in exchange. Governments use such payments as means of income redistribution under social welfare programs.
• Transfer payments may be conditional cash transfers or unconditional cash transfers

Answer: (b)

• UN Human Development Index (HDI) was developed in 1990 by the Pakistani economist Mahbub ul Haq who was assisted by Amartya Sen.
• A composite index measuring gender inequality in three basic dimensions of empowerment— economic participation and decision-making, political participation, and decision-making, and power over economic resources.
• The Gender Empowerment Measure (GEM) is an index designed to measure gender equality.
• GEM is the United Nations Development Programme’s attempt to measure the extent of gender inequality across the globe’s countries, based on estimates of women’s relative economic income, participation in high-paying positions with economic power, and access to professional and parliamentary positions.

Answer: (a)

• In August 1996, the Disinvestment Commission,chaired by G V Ramakrishna was set up to advise, supervise, monitor and publicize gradual disinvestment of Indian PSUs. However, the Disinvestment Commission ceased to exist in May 2004.

Answer: (d)

The 6th five year was formulated with reference to the following principal objectives:

• The Plan focused on Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment through schemes for transferring skills and providing slack season employment (NREP), controlling population explosion etc.
• Broadly, the sixth Plan could be taken as a success as most of the target were realised even though during the last year (1984-85) many parts of the country faced severe famine conditions and agricultural output was less than the record output of previous year.

Answer: (c)

• ICSID was established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.
• India is one of the prominent developing countries that has refrained from joining the ICSID Convention, since its inception
• India refrained from becoming a signatory to the ICSID Convention on the following grounds:

1)the Convention’s rules for arbitration leaned towards the developed countries and

2)there is no scope for a review of the award by an Indian court even if it violates India’s public policy.

Answer: (c)

• In September 2022 the international poverty line is being updated from $1.90 to $2.15 per person per day.
• The new international poverty line is set at $2.15 using 2017 prices

Answer: (d)

• India currently enjoys a youth bulge—the average age in India is 29 years (2020).
• India offers an expanding market with income levels and the size of the middle class increasing. Investments in infrastructure are projected over the medium term to lead to better connectivity and reduced logistics costs for businesses.
• Digital technology has led to positive disruption in both governance and businesses.

Answer: (d)

• ZBB comes from the fact that every year budget making starts from a base of zero and programmes are added according to their worth.
• Under the ZBB, a close and critical examination is made of the existing government programmes, projects and other activities to ensure that funds are made available to high priority items by eliminating outdated programmes and reducing funds to the low priority items.
• Governmental programmes and projects are appraised every year as if they are new and funding for the existing items is not continued merely because a part of the project cost has already been incurred.

Answer: (d)

Answer: (b)

• NITI Aayog has released a report titled- ‘Digital Banks: A Proposal for Licensing & Regulatory Regime for India’.
• This Report makes a case, and offers a template and roadmap for a Digital bank licensing and regulatory framework in India.

Answer: (c)

• In international trade, MFN treatment means normal trading relations between two countries.
• All WTO members are statutorily obliged to grant one another the MFN status. MFN means treating one’s trading partners equally on the principle of non-discrimination

Answer: (d)

• Having FDIs make in India is better than importing goods and services.
• Can help export globally competitive goods and services.
• Creates employment
• Human capital with world-class education, training and skills
• Greater productivity
• Tax collections from economic activity
• Technology development occurs when FDIs comes into the R&D sector

Answer: (b)

• Through Direct Taxes Code (DTC), the government aims to simplify the structure of direct tax laws in India into a single legislation.
• The DTC will replace the Income-tax Act, 1961, and other direct tax legislation like the Wealth Tax Act, 1957.

Answer: (c)

• There are many ways of understanding state capitalism.
• One is that the State owns large businesses itself and they co-exist with the private sector. It is the simplest model which is also called mixed economy and we find it in India.
• State capitalism in China is different.
• This is a form of market economy—capitalism, in which the authoritarian State acts as the dominant economic player, by owning and controlling businesses, and uses markets primarily for political capital.
• This model of state capitalism is called Beijing Consensus, which is floated as a rival of the Washington Consensus.
• In the Beijing Consensus, State sets long-term strategic priorities, and pursues them in multi-year plans. It does not follow textbook economics, but sets out its own mix of State, market and redistribution

Answer: (d)

• Fiscal consolidation means strengthening government finances.
• It essentially means reduce government annual borrowings and further reduce the historic cumulative public debt. Fiscal consolidation is critical as:

1.It provides macroeconomic stability

2.It cuts wasteful expenditure

3.It can enable the government to spend more on infrastructure and social sectors

Answer: (c)

• The theory of PPP was developed by Gustav Cassel in 1918. It is the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.

Answer: (c)

• India is poised to overtake Japan and South Korea to become the 3rd largest Metro rail network in the world, Union Minister for Housing and Urban Affairs Hardeep Singh Puri said at the 15th Urban Mobility India Conference in Kochi on Friday.
• In line with the Centre’s objective of ‘moving people rather than vehicles’, there was a need, the Minister emphasised, to fully utilise the potential of urban transport systems, including buses and metro rail networks, by 2047.

India currently has the fifth largest metro network in the world with 810 km of metro lines operational in 20 Indian cities, and over 980 km of metro networks and Regional Rapid Transit Systems (RRTS) currently under construction in 27 cities, as of September 2022

Answer: (b)

Answer: (d)

• The task of promoting Grameen Bank movement in India pioneered by a visionary of the Indian sub-continent, Prof. Muhammad Yunus.

Answer: (d)

• Greenfield FDI
• It is a type of investment in which a parent company creates a subsidiary in the host country, builds its operations from very beginning or scratch. Example of greenfield FDI are McDonald’s, Hyundai India, Pepsi India, etc.
• Brownfield FDI
• It is the investment in which the MNC acquires the shares of an existing company in the host country. For example, Ranbaxy in India was acquired by Daiichi Sankyo of Japan in 2008.