Question Discussion & Solution

The correct answer is All of the above.

Key Points

• Meaning of Economic Reforms:
  • Economic reforms refer to the fundamental changes that were launched in 1991 with the plan of liberalising the economy and quickening its rate of economic growth.
  • The Narasimha Rao Government, in 1991, started the economic reforms in order to rebuild internal and external faith in the Indian economy.
  • The reforms intended at bringing in larger cooperation of the private sector in the growth method of the Indian economy.
  • Policy changes were proposed with regard to technology up-gradation, industrial licensing, removal of restrictions on the private sector, foreign investments, and foreign trade.
  • The essential features of the economic reforms are – Liberalisation, Privatisation, and Globalisation, commonly known as LPG.
• Need for Economic Reforms
  • Poor performance of the industrial sector. Hence statement 1 is correct.
  • Adverse balance of payments. Hence statement 2 is correct.
  • The rise in the fiscal deficit. Hence statement 3 is correct.
  • Inflation. Hence statement 4 is correct.
  • The Gulf War

The correct answer is Option 4.

• POLICIES AND PROGRAMMES TOWARDS POVERTY ALLEVIATION
  • ​The government’s approach to poverty reduction was of three dimensions.
    • Growth-oriented approach
      • ​It is based on the expectation that the effects of economic growth — rapid increase in gross domestic product and per capita income — would spread to all sections of society and will trickle down to the poor sections also.
      • Rapid industrial development and transformation of agriculture through a green revolution in select regions would benefit the underdeveloped regions and the more backward sections of the community. 
    • Poverty alleviation programs
      • Expanding self-employment programs and wage employment programs are being considered as the major ways of addressing poverty.
      • For example - Rural Employment Generation Programme (REGP), Prime Minister’s Rozgar Yojana (PMRY), and Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
    • Providing minimum basic amenities to the people
      • ​India was among the pioneers in the world to envisage that through public expenditure on social consumption needs — provision of food grains at subsidized rates, education, health, water supply, and sanitation—people’s living standards could be improved.
      • Three major programs that aim at improving the food and nutritional status of the poor are the Public Distribution System, Integrated Child Development Scheme, and Midday Meal Scheme.
      • Pradhan Mantri Gram Sadak Yojana and Valmiki Ambedkar Awas Yojana are also attempted in developing infrastructure and housing conditions.
      • Pradhan Mantri Jan-Dhan Yojana is available in which people in India are encouraged to open bank accounts.

The correct answer is Kota.

Key Points

• Takli irrigation cum drinking water supply project is on river Takli.
• It is a tributary of Ajmer River as well as Kalisindh River.
• The dam site is located near village Dhankya in the Kota district.
• The project would provide an irrigation facility in an area of 7,386 hectares.
• It provides a drinking water facility to 4 villages and 2 towns of Ramganjmandi Tehsil, Kota district.
• The estimated cost of the project is Rs. 51.81 crores.

The correct answer is 1 only

Key Points

• Small Industries Development Bank of India (SIDBI)
  • SIDBI is the principal development financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector in India.
  • It was established on April 2, 1990, through an Act of Parliament (thus, it is a statutory body).
  • It is headquartered in Lucknow, Uttar Pradesh.
  • SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system across the country. Hence statement 1 is correct.
  • It coordinates functions of institutions engaged in similar activities.
  • Currently, the shares of SIDBI are held by Central Government and 29 other institutions including public sector banks (PSBs), insurance companies owned and controlled by Central Government.

• Functions of SIDBI:
  • It aims at emerging as a single-window to meet the developmental and financial needs of MSMEs in order to make them globally competitive, strong, vibrant and to protect the institution as a customer-friendly financial body. 
  • It also aims at enhancing the wealth of shareholders through the modern technology platform.
  • It is involved in the promotion and development of the MSME sector.
  • It is the principal institution for the development, promotion and financing of the MSME sector and for the coordination of functions of the institutions engaged in similar activities.
  • SIDBI retained its position in the top 30 Development Banks of the World in the ranking of The Banker, London.
     
• Note: Statement 2 is not correct, because SIDBI does not provide all type of loan to the agriculture sector.

The correct answer is Crude oil.

Important Points

• An import is a good or service bought in one country that was produced in another.
• Imports and exports are components of international trade.
• If the value of a country's imports exceeds the value of its exports, the country has a negative balance of trade (BOT), also known as a trade deficit.

Key Points

• India produces just 20% crude oil of its demand and rests 80% is imported from abroad.
• Crude oil and other related products account for around 22% total import of India.
• The second spot is obtained by the capital goods (machinery, base metal, transport equipment) which accounts for 19.2% of the total Indian imports.
• The third spot is obtained by the import of gems and jewellery (16.8 per cent of the total imports), the fourth and fifth spot is secured by the chemical & related products (12.7%), and electronic goods (11.4%) respectively.