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July 14, 2026

Revision Series | Economic Survey | Chapter – 7,8 | 51

June 22, 2023
Consider the following statements :
Statement-I : During FY2021-22, cost-push inflation in Himachal Pradesh exacerbated with CPI-C going above 5%.
Statement-II : The COVID-19 pandemic had a greater impact on supply than demand.
Which one of the following is correct in respect of the above statements?
  • (A) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  • (B) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  • (C) Statement-I is correct Statement-II is incorrect
  • (D) Statement-I is incorrect Statement-II is correct
Show Answer

Answer: (a)

  • Supply-side interruptions drove inflation over the RBI’s maximum tolerance range of 6 per cent in 2020.
  • The pandemic had a greater impact on supply than demand, causing supply-chain disruptions in the case of vital items such as food, medicine, and industrial goods.
  • As a result, cost-push inflation in the state was exacerbated.
Consider the following statements :
1 The Himachal Pradesh State Civil Supplies Corporation acquired and distributed TPDS goods worth ₹1,574.63 crore from January to December 2022.
2. The Targeted Public Distribution System (TPDS) distributes wheat, wheat atta, rice, sugars via more than five lakh fair pricing stores.
Which of the statements given below is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (a)

  • The Targeted Public Distribution System (TPDS) distributes wheat, wheat atta, rice, sugar, and other essentials via 5,163 fair pricing stores as part of the government’s poverty alleviation policy.
  • Hence statement 1 is incorrect.
  • The Himachal Pradesh State Civil Supplies Corporation acquired and distributed TPDS goods worth ₹1,574.63 crore from January to December 2022, up from ₹1,442.12 crore previous year.
Which of the following statement(s) is/are correct regarding inflation?
1. Himachal Pradesh had substantially higher rate of inflation than most of the other states in India except Chhattisgarh.
2. Consumer Price Index(C) in Himachal Pradesh was at 3.9 per cent in December-2022, climbing down from 6.5 per cent in April-2022.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (b)

  • The lowest CPI-C inflation rate after Chattisgarh in December, 2022 is 3.9 per cent in Himachal Pradesh, where as Chattisgarh it was 2.7 per cent in December, 2022.
  • In the remaining States, inflation in December, 2022 varied from 6.0 per cent to 6.7 per cent.

In comparison to Himachal Pradesh, this is substantially higher.

  • Hence statement 1 is incorrect.
  • Himachal Pradesh has moderate inflation in the current financial year, with the CPI-C at 6.5 per cent in April-2022, compared to 3.9 per cent in December-2022 (P).
  • This inflation was mostly caused by a spike in food inflation, which persisted throughout the economy’s interest rate hike, but there has been some decrease since November.
Consider the following statements in light of Himachal Pradesh economic survey 2022-23 :
1 Clothing and footwear.
2. Pan Tobacco & intoxicants.
3. Food and beverages.
Which of the above were the categories that made up the bulk of the CPI-C inflation in the year 2022?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Show Answer

Answer: (a)

  • The three categories that made up the bulk of the CPI-C inflation in the year 2022 were “food and beverages,” “clothing and footwear,” and “other.”
  • Clothing and footwear accounted for 44.1 per cent of the overall inflation in the year 2022, making it the main driver of CPI-C inflation.
  • With a 30 per cent contribution, food and drinks are the second-largest contributor to overall inflation, pan, cigarettes, and other intoxicants make up (-) 11.9 per cent of the total negative contribution (Figure 7.3)
Which of the following is/are correct regarding Consumer Price Index Industrial Worker (CPI-IW)?
1 CPI-IW inflation in Himachal Pradesh was lower than the national average for entire FY2022-23.
2. The new CPI-IW series includes industrial employees from the traditional seven industries.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Show Answer

Answer: (b)

  • CPI-IW is a price index released by the Labour Bureau to assess the effect of price increases on the cost of living for working-class families in certain sectors.
  • In September 2020, the base year has been changed from 2001 to 2016.
  • The new CPIIW series includes industrial employees from the traditional seven industries:

factories, mines, plantations, railroads, public motor transport undertakings, energy generating and distributing enterprises, and ports and docks.

  • As demonstrated in Figure 7.4, CPI-IW inflation in Himachal Pradesh was lower than the national average in December, 2022 (but not the entire FY 2022-23)

Hence statement 1 is incorrect.

Which of the following is/are correct regarding Wholesale Price Index (WPI)?
1. Imported inflation contributes to WPI inflation.
2. As per a study, one per cent increase in prices across all countries and sectors due to global inflation shock could raise inflation in India by around 63 basis points.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Show Answer

Answer: (c)

  • Imported inflation contributes to WPI inflation, because edible oils are heavily imported, the temporary impacts of higher worldwide costs for these items are also reflected in local pricing.
  • According to an RBI study, one per cent increase in prices across all countries and sectors due to global inflation shock could raise inflation in India by around 63 basis points via second-round effects that include domestic indirect effects (46 basis points) and global spillovers (17 basis points), in addition to the direct impact of 100 basis points.
Consider the following :
1. For all non-controlled essential commodities, Himachal Pradesh State Civil Supplies Corporation (HPSCSC) is the Central Procurement Agency. HPSCSC manages the procurement and supply of ayurvedic medicines to government hospitals.
2. As per the tribal Action Plan, HPSCSC provides all essential commodities in tribal and inaccessible areas.
Which of the above is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Show Answer

Answer: (d)

  • The Himachal Pradesh State Civil Supplies Corporation is the “Central Procurement Agency” for all controlled and non- controlled essential commodities in the state and also the agency for procuring and distributing food grains and other essential commodities under the Targeted Public Distribution System (TPDS) and NFSA.
  • During the current financial year, upto December, 2022 the Corporation procured and distributed various commodities under TPDS to the tune of ₹1,574.63 crore as compared to ₹1,442.12 crore during the corresponding period of last year.
  • The HPSCSC manages the procurement and supply of ayurvedic medicines to government hospitals, cement to government departments/boards/corporations and other government institutions, and galvanised iron (GI)/ductile iron (DI)/cast iron (CI) pipes to the Jal Shakti Department, as well as school uniforms to the Education Department of the Himachal Pradesh government.
Consider the following statements regarding Mukhyamantri Grihani Suvidha Yojna :
1 An objective behind its implementation is to conserve important forests.
2. Permanent residents of Himachal Pradesh would get free LPG connections under this plan.
3. Under this initiative, the HPSCSC has supplied 1,18,700 LPG connections to beneficiaries.
Select the correct statement(s) using the code given below:
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Show Answer

Answer: (d)

Mukhyamantri Grihani Suvidha Yojna:

  • The Himachal Pradesh Government has implemented the Himachal Mukhya mantra Grihani Suvidha Yojana to reduce household smoke and conserve important forests.
  • Permanent residents of Himachal Pradesh would get free LPG connections under this plan (those who do not have gas connection under the scheme of Himachal Pradesh Government and Central Government).
  • Under the Himachal Mukhya mantri Grihani Suvidha Yojana initiative, the Corporation has supplied 1,18,700 LPG connections to beneficiaries via its 54 gas agencies to far flung areas.
Which of the following is/are correct regarding Himachal Pradesh?
1 About 57.03 per cent of the State's entire workforce has direct employment via agriculture.
2. The share of agriculture and allied sector in total GSVA in the State has remained between 12-15 per cent in the last five years.
3. Livestock subsector accounts for 1.61 per cent of total GSVA and 12 per cent of agriculture and allied sector GSVA in FY2022-23.
4. Agriculture and its allied industries account for around 13.47 per cent of the total Gross State Value Added.
Select the answer using the codes given below:
  • (A) 1, 3 and 4 only
  • (B) 1, 2 and 3 only
  • (C) 1, 2 and 4 only
  • (D) All of the above
Show Answer

Answer: (d)

With reference to Himachal Pradesh, consider the following:
1 Himachal Pradesh ranked 17th State in India and 126th in world with a geographical area of 55,673 square kilometers (Sq Km).
2. Out of the total geographical area, 20.19 per cent of area comes under Net Sown Area and around 9.75 per cent is under forest coverage.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (a)

Consider the following statements regarding Cropping Intensity?
1. Cropping intensity refers to the raising of a number of crops from the same field during one agricultural year.
2. Higher cropping intensity means that a higher proportion of the net sown area is being cropped more than once during one agricultural year.
3. Districts like Una, Hamirpur, Sirmour, Kangra, have lower cropping intensity.
Select the answer using the codes given below :
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Show Answer

Answer: (c)

Cropping Intensity

  • The ratio of gross cropped area to net cropped area, is an indicator useful for assessing efficiency of the agriculture sector.
  • Cropping intensity refers to the raising of a number of crops from the same field during one agricultural year.
  • Thus, higher cropping intensity means that a higher proportion of the net sown area is being cropped more than once during one agricultural year.
Which of the following is/are correct regarding Himachal Pradesh?
1 As per targeted production the production of Ragi will increase significantly by about 310 per cent in FY2022-23 over the previous year.
2. In terms of cultivable land, Himachal has already reached a plateau similar to the rest of the nation.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Show Answer

Answer: (c)

Which of the following is/are correct?
1 There are two bio-control labs operating in Kangra and Mandi districts to promote non-chemical techniques of insect pest management.
2. Soil testing service has been added in the Himachal Pradesh Government Public Service Act.
3. Himachal Pradesh has 11 soil testing laboratories, three fertilizer and seed testing laboratories.
Which of the above given statement(s) is/are correct?
  • (A) 1 and 2 only
  • (B) 2 and 3 only
  • (C) 1 and 3 only
  • (D) 1, 2 and 3
Show Answer

Answer: (d)

Which of the following are the component(s) of the Mukhyamantri Krishi Samvardhan Yojna (MMKSY)?
1 Cluster based vegetable production scheme.
2. Strengthening of laboratories.
3. Input based umbrella scheme.
4. Strengthening of Seed Multiplication Chain.
Choose the answer using the codes below :
  • (A) 1, 2 and 4 only
  • (B) 1, 2 and 3 only
  • (C) 2, 3 and 4 only
  • (D) 1, 2, 3 and 4
Show Answer

Answer: (d)

Consider the following statements regarding Himachal Pradesh:
1 The area under Horticulture in state is contributing 26 per cent of the total Agriculture area.
2. Apple constitutes 48.8 per cent of the total area under fruit crops and about 81 per cent of the total fruit production during FY2021-22.
3. Himachal Pradesh Horticulture Development Project is funded by the Asian Development Bank.
Which of the above given statement(s) is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Show Answer

Answer: (c)

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