Saturday, May 14, 2011

Agriculture Scetor

AGRICULTURE
Agriculture provides significant support for economic growth and social transformation of the country. As one of the world’s largest agrarian economies, the agriculture sector (including allied activities) in India accounted for 14.2 per cent of the gross domestic product (GDP), at constant 2004-05 prices during 2010-11 as per Central Statistics Office (CSO) of India.In 2009-10,the GDP for agriculture and allied sectors accounted for 14.6 per cent of the GDP compared to 15.7 per cent in 2008-09.
The agriculture sector accounts for about 58 per cent of employment in the country (as per 2001 census). This sector is a supplier of food, fodder, and raw materials for a vast segment of industry. Hence the growth of Indian agriculture can be considered a necessary condition for inclusive growth'. More recently, the rural sector (including agriculture) is being seen as a potential source of domestic demand,a recognition that is even shaping the marketing strategies of entrepreneurs wishing to widen the demand for goods and services. In terms of composition, out of a total share of 14.6 per cent of the GDP in 2009-10 for agriculture and allied sectors, agriculture alone accounted for 12.3 per cent followed by forestry and logging at 1.5 per cent and fisheries at 0.8 per cent.
In 2009-10, despite experiencing a poor monsoon, the growth marginally recovered to 0.4 per cent primarily due to a good rabi crop. Several advance measures taken by the government also had the desired effect of checking the impact of the drought situation on the rabi crop. Things are looking bright in the current year with a relatively good monsoon and the agriculture-sector is expected to grow at 5.4 per cent as per the 2010-11 advance estimates. The agriculture sector growth in the first four years of the Five Year Plan (2007-2012) is estimated at 2.87 per cent. In order to achieve the Plan target of average 4 per cent per year, the agriculture sector needs to grow at 8.5 per cent during 2011-12.
The rates of growth and share of agriculture and allied activities in the GDP of the country are given below:
Agriculture sector: Key indicators
Figures in Percentage (%)
Item
2008-09
2009-10
2010-11 (AE)*
1 GDP—Share and Growth (at 2004-05 prices)
Growth in GDP in agriculture & allied sectors -0.1 0.4 5.4
Share in GDP-Agriculture and allied sectors 15.7 14.6 14.2
Agriculture
13.3 12.3
2 Forestry and logging 1.6 1.5
Fishing 0.8 0.8
Share in Total Gross Capital Formation in the Country (at 2004-05 prices)
Share of Agriculture & Allied Sectors in total Gross Capital Formation
8.3 7.7
Agriculture
7.7 7.1
3 Forestry and logging 0.07 0.06
Fisheries 0.56 0.54
Agricultural Imports & Exports (at current prices)
Agricultural imports to national imports
2.71 4.38
Agricultural exports to national exports 10.22 10.59
4 Employment in the agriculture sector as share of total workers 58.2
*AE=Advance Estimates
Source : Central Statistical Organization (CSO) and Department of Agriculture and Cooperation. 

Animal Husbandry, Dairying and Fisheries
In 2009-10, this sector produced 112.5 million tonnes of milk, 59.8 billion eggs, 43.2 million kg wool, and 4.0 million tonnes of meat. The result of the 18th Livestock Census (2007), derived from village-level count, has placed the total livestock population at 529.7 million and poultry birds at 648.8 million.
India ranks first in world milk production, increasing its production from 17 million tonnes in 1950-51 to about 112.5 million tonnes in 2009-10.The per capita availability of milk has also increased from 112 grams per day in 1968-69 to 263 gram per day in 2009-10.
Livestock Insurance
A centrally sponsored scheme for livestock insurance is being implemented in all the States with the twin objectives of providing a protection mechanism to farmers and cattle rearers against loss of their animals due to death and to demonstrate the benefit of livestock insurance to the people. The scheme benefits farmers (large, small and marginal) and cattle rearers having indigenous/crossbred milch cattle and buffaloes.
Poultry
Poultry development is one of the most resilient sectors in the country, fast adapting itself to the changing biosecurity, health, and food safety needs. India produces more than 59.8 billion eggs per year, with per capita availability of 51 eggs per annum. The poultry meat production is estimated to be 1.85 million tonnes in 2008-09. To provide necessary services to the farmers, four regional Central Poultry Development Organizations (CPDOs) have been restructured on the principle of one window service.
Livestock health
Animal wealth in India has increased manifold and animal husbandry practices have also changed to a great extent. With improvement in the quality of livestock through launching of extensive cross-breeding programmes, the susceptibility of this livestock to various diseases, including exotic diseases, has increased. To ensure maintenance of disease-free status and compliance with the standards laid down by the World Animal Health Organization, major animal health schemes and programmes have been initiated.
Further, for control of major livestock and poultry diseases, the Government of India provides financial assistance to States/UTs in their efforts to prevent, control and contain animal diseases and also to strengthen veterinary services including reporting of animal diseases. All avian influenza outbreaks reported were effectively controlled and the country declared free from avian influenza in June 2010.
Fisheries
Fish production increased from 7.14 million tonnes in 2007-08 to 7.85 million tonnes in 2009-10. Fishing, aquaculture, and allied activities are reported to have provided livelihood to over 14 million persons in 2008-09, apart from being a major foreign exchange earner.
Feed and fodder
Adequate availability of feed and fodder for livestock is very vital for increasing milk production and sustaining the ongoing genetic improvement programme. It is estimated that there is green fodder shortage of about 34 per cent in the country. To increase the availability of fodder, the Department of Animal Husbandry & Dairying is implementing a Centrally sponsored Fodder Development Scheme throughout the country to supplement the efforts of the states. A central Minikit Testing Programme is also being implemented under which minikits of latest high-yielding fodder varieties are distributed free of cost to farmers for their popularization.



Agricultural Credit
In the year 2009-10, Government provided an additional 1 per cent interest subvention to those farmers who repaid their short-term crop loans as per schedule. The Government has raised this subvention for timely repayment of crop loans from 1 per cent to 2 per cent from the year 2010-11. Thus the effective rate of interest for such farmers will be 5 per cent per annum.
Agricultural Insurance
Four crop insurance schemes, namely the National Agricultural Insurance Scheme (NAIS), Pilot Modified NAIS (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS), and Pilot Coconut Palm Insurance Scheme (CPIS) are under implementation in the country.
The National Agricultural Insurance Scheme (NAIS)
The NAIS is being implemented in the country from rabi 1999-2000 season. The Agriculture Insurance Company of India Ltd. (AIC) is the implementing agency (IA) for the Scheme. The main objective of the scheme is to protect farmers against crop losses suffered on account of natural calamities.
The Pilot Modified NAIS (MNAIS)
Keeping in view the limitations/shortcomings of the existing scheme, the Government has approved the Modified NAIS for implementation on pilot basis in 50 districts from rabi 2010-11 season. The major improvements made in the MNAIS are: actuarial premium with subsidy in premium at different rates, i.e. 40 per cent to 75 per cent depending upon the slab, provided to farmers, all claims liability on the insurer, unit area of insurance reduced to village panchayat level for major crops, indemnity for prevented/sowing/planting risk and for post harvest losses due to cyclone, payment up to 25 per cent advance of likely claims as immediate relief, more proficient basis for calculation of threshold yield, minimum indemnity level of 70 per cent instead of 60 per cent, and private-sector insurers with adequate infrastructure allowed (at present, ICICILombard,IFFCO-Tokio and Cholamandalam-MS).
Weather Based Crop Insurance Scheme (WBCIS)
Efforts have been made to bring more farmers under the fold of crop insurance by introducing a Weather Based Crop Insurance Scheme (WBCIS).The WBCIS is intended to provide insurance protection to farmers against adverse weather incidences, which are deemed to unfavourably impact crop production. It has the advantage of settling claims within the shortest possible time.
Agricultural Marketing
Organized marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the State and Union Territory Governments have enacted legislations (Agriculture Produce Marketing Committee Act) to provide for regulation of agricultural produce markets.
Most of the states and union territories have enacted legislations (the Agriculture Produce Marketing Committee [APMC] Act) to provide for regulation of agricultural produce markets. Seventeen States/ UTs have amended their APMC Acts and the remaining are in the process of doing so.
There are 7157 regulated markets in the country as on 31st March 2010. The country has 21,221 rural periodical markets, about 15 per cent of which function under the ambit of regulation.

Industrial Performance & Services

INDUSTRIAL PERFORMANCE
Industrial Performance During 2009-10
After a deep global recession, economic growth has turned positive and the global economic outlook has improved over the past few months.Indian economy grew at an average rate of 8.8 per cent in the four-year period from 2005-06 to 2008-09, despite the crisis-affected year of 2008-09. The economy weathered the financial turbulence well and grew at 7.2 per cent in 2009-10. The rapid adjustments in the monetary and fiscal policies were well calibrated and desired results achieved.
Sectoral Performance
All the three sectors namely mining, manufacturing and electricity have shown positive growth during 2009-10 (April 2009-March 2010). The mining and quarrying registered a growth rate of 9.7 per cent during 2009-10 (April 2009-March 2010), as against the growth rate of 8.3 per cent during (April-November 2009). Due to this increase in the IIP-Mining, the growth rate in GDP is now estimated at 10.6 per cent, as against the advance estimate growth rate of 8.7 per cent.

Similarly, the IIP of manufacturing registered a growth rate of 10.9 per cent during 2009-10 (April 2009-March 2010) as against the growth rate of 7.7 per cent during (April-November 2009). Due to this increase in the IIP, the GDP of manufacturing sector is now estimated at 10.8 per cent, as against the Advance estimate growth rate of 8.9 per cent.

The sectors which showed growth rates of 5 per cent or more, are ‘mining and quarrying’ (10.6 per cent), manufacturing (10.8 per cent), electricity, gas and water supply (6.5 per cent) construction (6.5 per cent), trade, hotels, transport and communication (9.3 per cent), financing, insurance, real estate and business services (9.7 per cent),and community,social and personal services (5.6 per cent). The agriculture, forestry and fishing sector, however registered a growth rate of 0.2 per cent.
Comparative growth rates for these three sectors for the year 2007-08 to 2009-10 (April 2009-Mar 2010) are given in table below:
Annual Growth rate of industrial production in major sectors of industry (Based on the Index of Industrial Production) Base: 1993-94=100 (Per cent)
Period
Mining & Quarrying
Manufacturing
Electricity
Overall
Weight
10.47
79.36
10.17
100.00
2007-08
5.1
9.0
6.4
8.5
2008-09
2.6
2.8
2.8
2.8
2009-10
(Apr 2009-Mar 2010)
9.7
10.9
6.0
10.4
Source: Central Statistical Organisation (CSO)
Use-Based Classification
In terms of the use-based classification, the IIP growth in March 2010 was driven by high growth in capital goods and consumer durables, while basic and intermediate goods displayed healthy growth in excess of 10%, suggesting that the demand for finished products remains strong. The pace of growth of consumer durables improved to 32% in March 2010 from 30% in February 2010, suggesting that consumer confidence and demand remains robust.
Capital goods expanded by a robust 27.4% in March 2010. The capital goods sub-index remained the highest contributor to IIP growth amongst the use-based industries for the fourth consecutive month. While the high growth in this category is likely to have been supported by infrastructure spending by the Central and State Governments at the end of the fiscal year, the steep increase in Bank credit off-take and external commercial borrowings in March 2010 suggest a revival of private investment. Investment sentiment and the trends in private investment growth are likely to considerably influence the pace of IIP growth in the coming months.Cumulative growth for capital goods during April 2009-March 2010 was expanded by 19.2 percent as compared 7.3 percent during same period of 2008-09.
The growth of intermediate goods remained healthy at 12.7% in March 2010. Continued double-digit growth suggests that the demand for finished products remains robust.The growth rate of intermediate goods is expected to moderate in the coming months with the waning of the favourable base effect.Cumulative growth for intermediate goods during April 2009-March 2010 was expanded by whopping 13.6 percent as compared to -1.9 percent during same period of 2008-09.

Basic goods expanded by 10.1% in March 2010.The sub-index displayed a growth of 7.1 percent in April 2009-March 2010,considerably higher than 2.6 percent during same period of 2008-09.
The overall growth in consumer goods improved to 10.6 percent as compared to 1.3 percent during same month of 2008-09.The cumulative growth of consumer goods during April 2009-March 2010 expanded by 7.4 percent as compared to 4.7 percent during same period last year.

The pace of growth of consumer durables improved to 32% in March 2010 from 30% in February 2010, suggesting that domestic consumer demand remains robust. The high growth displayed by consumer durables in March 2010 is noteworthy, coming on the back of 8.4% growth in March 2009. This use-based category displayed the highest average growth rate during April 2009-March 2010 at 26.1%, relative to the low growth of 4.5% during same period of 2008-09, reflecting robust domestic consumer confidence and demand, benefiting substantially from the release of Pay Commission related arrears to Government employees as well as the recent revival in exports. Notwithstanding the positive impact of the staggered release of Pay Commission related benefits to State Government employees on demand for consumer durables, the growth of this sector is expected to moderate substantially in the coming months led by an adverse base effect following the double-digit growth displayed by consumer durables throughout 2009-10. Additionally, the transmission of monetary tightening into higher interest rates may depress consumer demand to some extent.

Consumer non-durables expanded by 3.3% in March 2010, resulting in a low 1.5 % average growth for the period April 2009-March 2010 as compared to 4.8 percent during same period of 2008-09.This was the only category displaying lower growth in 2009-10 relative to 2008-09. In the near term, the level of the agricultural output and its impact on inflation would influence the disposable incomes and purchasing power of both rural and urban households, which remains a critical determinant of the demand for consumer non-durables.
Comparative growth rates of industrial production based on use-based classification since 2007-08 to 2009-10 (April-March 2010) are given in table below:
Sectors
Weight
2007-08
2008-09
2009-10 (March 2010)
2009-10 (Apr 2009-Mar 2010)
Basic Goods
35.6
7.0
2.6
10.1
7.1
Capital Goods
9.3
18.0
7.3
27.4
19.2
Intermediate Goods
26.5
9.0
-1.9
12.7
13.6
Consumer Goods
28.7
6.1
4.7
10.6
7.4
(i) Consumer durables
5.4
-1.0
4.5
32
26.1
(ii) Consumer non durables
23.3
8.6
4.8
3.3
1.5
Source: Central Statistical Organisation (CSO)

INDIA'S ECONOMIC REFORMS

The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in earnest only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government.
The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime. An important feature of India's reform programme is that it has emphasized gradualism and evolutionary transition rather than rapid restructuring or "shock therapy". This approach was adopted since the reforms were introduced in June 1991 in the wake a balance of payments crisis that was certainly severe. However, it was not a prolonged crisis with a long period of non-performance.
The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following:
  • Dominance of the public sector in the industrial activity
  • Discretionary controls on industrial investment and capacity expansion
  • Trade and exchange controls
  • Limited access to foreign investment
  • Public ownership and regulation of the financial sector
The reforms have unlocked India's enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments, across political parties, have successfully carried forward the country's economic reform agenda.
Reforms in Industrial Policy
Industrial policy was restructured to a great extent and most of the central government industrial controls were dismantled. Massive deregulation of the industrial sector was done in order to bring in the element of competition and increase efficiency. Industrial licensing by the central government was almost abolished except for a few hazardous and environmentally sensitive industries. The list of industries reserved solely for the public sector -- which used to cover 18 industries, including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, minerals, oil, mining, air transport services and electricity generation and distribution was drastically reduced to three: defense aircrafts and warships, atomic energy generation, and railway transport. Further, restrictions that existed on the import of foreign technology were withdrawn.
Reforms in Trade Policy
It was realized that the import substituting inward looking development policy was no longer suitable in the modern globalising world.
Before the reforms, trade policy was characterized by high tariffs and pervasive import restrictions. Imports of manufactured consumer goods were completely banned. For capital goods, raw materials and intermediates, certain lists of goods were freely importable, but for most items where domestic substitutes were being produced, imports were only possible with import licenses. The criteria for issue of licenses were non-transparent, delays were endemic and corruption unavoidable. The economic reforms sought to phase out import licensing and also to reduce import duties.
Import licensing was abolished relatively early for capital goods and intermediates which became freely importable in 1993, simultaneously with the switch to a flexible exchange rate regime. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were finally removed on April 1, 2001, almost exactly ten years after the reforms began, and that in part because of a ruling by a World Trade Organization dispute panel on a complaint brought by the United States.
Financial sector reforms
Financial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to mitigate the prospects of systemic risks. Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and exposed to international financial markets along with the introduction of new instruments and products.

A brief economic overview

India is the world’s second-fastest growing major economy, having clocked growth rates averaging 8.9% in the four years prior to the global financial crisis that began in September 2008. The Indian economy is now poised to resume its fast pace of growth, recovering double-quick from the crisis-induced slowdown. Population growth having come down to 1.5% a year, India’s per capita income is growing at close to 7.5% a year, a rate that will allow it to more than double in ten years. This is a remarkable achievement in human history, with China’s example as the only precedent.

India’s emergence as a fast-growing trillion plus dollar economy has enormous significance for the rest of the world. The remarkable thing about India’s rise is that it is mostly benign and perceived as such by much of the world. It is also true that India faces numerous economic challenges. But India’s new prosperity is indeed trickling down to the bottom of the pyramid. The government’s redistributive policies play a major role - direct tax collections (essentially, tax on personal and corporate incomes) have been growing at close to 30% a year, thanks to lower rates and better tax administration and the government has initiated sizeable rural development and employment schemes.

Considerable emphasis is being given on infrastructure development and urban renewal. New national highways are being built across India, and this road building activity also drives growth in the rural areas. Indeed, highway projects have been a trigger for a state like Bihar, (one of India’s 28 states), to register growth in excess of 11% a year for five recent years.


( Mumbai-Worli sea link)


The Planning Commission pegs investment in physical infrastructure to be a cumulative $542 billion during the Eleventh Five Year Plan period of 2007/08-2011/12. And this is expected to go up further to $1,000 billion over the 12th Five Year Plan 2012/13-2016/17. A steady rise in infrastructure investment is already visible. Infrastructure investment has moved up from 5.4% of GDP in 2005/06 to 7.5% of GDP in 2009/10. The Planning Commission forecasts this figure to climb up to 8.4% of GDP in 2011/12. What is of special interest to foreign investors is the ever more significant role of private investment in building India’s infrastructure. The share of the private structure in infrastructure investment has moved up from 2.2% of GDP in 2007/08 to 2.6% of GDP in 2009/10 and is expected to touch 3.3% of GDP by 2011/12.


( Mumbai stock exchange)


No economy can sustain fast growth without undergoing accelerated urbanisation. The 2001 Census put India’s urban population at 28% of the total. It probably has already moved past 31%. It is a safe bet to expect half of India to live in towns by 2030, which means that over 230 million additional town dwellers. The urban space that is required to accommodate these many additional people would be upwards of 20,000 sq km. While this is a great policy challenge, there is little alternative but to build this required space, to house the fast growing sectors of industry and services. Building new towns as energy efficient, climate-friendly habitats, using mixed land use to minimise commute, extensive public transport, green building codes and green energy would be a policy challenge and a great investment opportunity. India allows 100% FDI in building new townships.


( High rise buildings)


The UN estimates that India would contribute fully a quarter of the addition to the world’s workforce over the next 10 years. India would produce 136 million workers, while China would contribute just 23 million. The main challenge for India would be to ensure that these young people are educated, skilled and productively employed. While school retention rates have gone up over the last five years, raising the quality of education and increasing the proportion of students to who go on to college would be major challenges. India’s education sector offers huge opportunities.

The government has been extremely keen to use public-private-partnership (PPP) to build infrastructure. Thus, national highways, power plants and airports are being built under PPP at great speed. New Delhi’s latest international airport terminal, T3, one of the largest in the world and the fastest built, stands as gleaming testimony to the efficacy of the PPP framework. A national skill development programme is underway, with extensive collaboration between the government and the private sector.


( Public-Private partnership- T3 arrival lounge- IGIA airport)


Thanks essentially to a sustained rise in the demand for food, especially for superior food from rural households due to their additional purchasing power arising from enhanced transfers and new economic activity, India is also facing the challenge of food inflation, in recent times. This is both a problem and an opportunity to raise farm output and boost farmer incomes. While agriculture now contributes less than 18% of gross domestic output, it still employs a little more than half the workforce.


( India’s booming retail)


But is this growth sustainable? Such scepticism is commonplace, given the infrastructure deficits and shortages. But every such shortage is also a growth opportunity and India is putting in place a robust policy and regulatory framework that will allow each infrastructure sector to grow, as the spectacular growth of telecom has shown. India’s tele-density now stands at over 50%, with the 127-fold increase in the number of mobile phone connections from roughly 5 million in 2001 to 635 million by mid-2010 leading the way. It is entirely feasible that other sectors would replicate telecom’s success story.

There is an under-appreciated side to India’s growth story. India saves a little more than one-third its output and invests that much and little bit more, drawing on global savings, to squeeze out 9% growth. Per unit of capital, India produces far more output, thanks to two things: capital is unsubsidised and costly and this forces Indian companies to constantly innovate production processes and business models. India’s pharmaceutical industry’s cost efficiency might have its origins in the erstwhile process patent regime (now superceded by a TRIPS-compliant product patent regime), but its culture of constantly improving its own process continues to pay dividends. Bharti Airtel created a new paradigm in the telecom industry by outsourcing its networks, customer service and much else, focusing on brand building and customer acquisition. Companies around the world have adopted the model now, including Sprint in the US.


( India’s indigenous and world’s cheapest car- Nano)


India’s exports are less than a quarter of its GDP and net exports (exports less imports) are negative. This means that Indian producers depend mostly on the domestic market, making them, for the most part, less vulnerable to economic trouble abroad. The information technology sector, of course, is a major exception.

India depends, again, for the most part on domestic savings for capital formation. Yet foreign capital inflows do play a significant role in the Indian economy: it stimulates the stock market, reduces the cost of debt for large firms with access to global sources, feeds a veritable frenzy of entrepreneurship taking good advantage of venture capital and private equity and, in general, meets the gap between investment and domestic financial savings (a large part of domestic household savings are in a physical form and not available for investment by anyone other than the saver concerned). India’s fast growth attracts a lot of foreign capital. As significantly Indian industry’s outward investment, is also growing proportionately, with India for example, emerging as the second largest foreign investor in London.

India maintains control on foreign debt (total debt stock is roughly equal to total foreign currency assets), its debt service ratio is low (a healthy 5%), the share of short term debt in total debt is about 18%, even as the share of concessional debt in the total has come down by half to about 18% from the early years of the decade. So, foreign creditors have little reason to be concerned by the recent widening of India’s current account deficit, stubbornly below 2% of GDP and even negative in the early part of the decade.

India also regulates foreign investment in some crucial sectors of the economy - banking, insurance, retail, the media, telecom, and so on. The historic record is that most such caps are gradually raised and finally abandoned, over time. Such caution has served India well and it is unlikely that India would be rushed off its feet by any foreign wooer of its domestic opportunities.

For quite some time, it was fashionable to see India as a nation specialising in high-end services, particularly those related to information technology. No more. There is a new confidence in Indian manufacturing - only about 15% of outward investment from India are related to information technology. The world’s lowest cost car was conceptualised, engineered and manufactured in India, not any everywhere else. So, while services still grow faster than industry and account for about 54% of the output, manufacturing is getting only better - in volume and in sophistication.


( ITC Green building, Gurgoan)


Like any other fast developing major economy, India has to further accelerate its growth rate while being conscious of environmental aspect. India’s carbon footprint is small, per capita. The country has also committed to reduce the emission intensity of its growth - units of emissions per unit of additional output - by more than a fifth over the next one and a half decades. Green energy, green buildings, green habitats, greater energy efficient factories, offices and commercial places - these are daunting challenges and, simultaneously, goldmines of opportunity for high-tech firms around the world.

As India grows in size and clout, it will inevitably have an impact on the correlation of forces in the world. While India has no aggressive designs on foreign lands, it is inevitable that India’s defence forces should become stronger and more sophisticated. Larger procurement of advanced equipment leads on to offsets, joint ventures, domestic manufacture and eventually, India-based research and development, drawing on the tens of thousands of engineers who come out of India’s colleges every year, the best among them being world class.

Visitors to India are astounded at the manner in which the physical landscape keeps changing, from one visit to the next. The change that is even more striking than the new airports, roads, metro rail and high-rises that keep getting added is the new mood of optimism that India’s young people, the largest pool of youth in the world, have about themselves and the future.

Wednesday, May 11, 2011

100 MCQs of Socio Economic Development

1. L&T Infotech was chosen to be an Implementation Agency to implement the Business Analytics Project in order to provide for data and information for analysing insurance companies and regulatory decision making by which body?
a.    IRDA
b.    SEBI
c.    RBI
d.    PFO
Answer: (a)

2. Propelled by higher crude petroleum and steel production, the index of the six ‘core' infrastructure industries registered 6.8 per cent higher growth in March 2011 compared to March 2011. What percentage growth did the index record?
a.    7.4%
b.    7.1%
c.    7.5%
d.    7.34%
Answer: (a)

3. The Annual Monetary Policy for 2011-12 was presented by RBI Governor D.Subbarao on 3 May 2011. With regard to the monetary policies mention which of the following is/are not correct?
1.    RBI increased the repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 6.75 per cent to 7.25 per cent with immediate effect.
2.    The Marginal Standing Facility (MSF) rate, determined with a spread of 100 basis points above the repo rate, stands calibrated at 8.75 per cent.
3.    The Bank Rate has been retained at 5.0 per cent.
4.    Reserve Bank of India (RBI) in May 2011 decided to accept the broad framework of regulations recommended by the Malegam Committee report on micro finance institutions (MFIs)
a.    3 & 4
b.    1 & 4
c.    2 & 3
d.    1 & 3
Answer: (c)

4. The Reserve Bank of India (RBI) capped bank investments into liquid schemes to what per cent of the bank’s net worth?
a.    15%
b.    10%
c.    12%
d.    13.2%
Answer: (b)

5. Which Industry Body proposed setting up of National Knowledge Functional Hub (NKFH) to engage higher educational institutions with the industry in order to produce quality engineering graduates and meet increasing requirement of skilled hands in the market?
a.    Food Corporation of India
b.    Federation of Indian Chambers of Commerce and Industry
c.    Biotechnology Council of India
d.    Confederation of Indian Industries
e.    ASSOCHAM
Answer: (b)

6. Which body in India demanded on 24 April 2011 introduction of financial support through legislation for preventing corrosion of machines, pipelines and industrial structures?
a. Confederation of Indian Industry
b. Indian Ministry of Commerce
c. Competition Commission of India
d. Indian Chamber of Commerce
Answer: (a)

7. Which of the following bodies in April 2011modified the norms for appointment of its internal auditor?
a. SEBI
b. PFRDA
c. IRDA
d. India Inc
Answer: (a)

8. According to the data released by Central Electricity Authority, India generated 811 billion units of electricity in 2010-11 fiscal marginally lower than the set target. What was the target set for electricity generation for 2010-11?
a. 830 billion units
b. 830.8 billion units
c. 815 billion units
d. 818 billion units
Answer: (b)

9. Market regulator SEBI on 25 April 2011 sought more time from the Supreme Court to give its views on the report of a high-powered committee that probed case that dates back to 2006. Name the scam being referred to.
a. IPO scam
b. Telgi Stamp Paper Scam
c. UTI Scam
d. Madhu Coda Scam
Answer: (a)

10. National Association of Software and Services Companies (NASSCOM) on 26 April 2011 announced which of the following individual’s appointment as its Chairman?
a. Rajendra S. Pawar
b. Harsh Manglik
c. N. Chandrasekaran
d. Ganesh Natarajan
Answer: (a)

11. The Reserve Bank of India on 26 April 2011 fined 19 banks, including the country's top private and foreign banks for violating its guidelines on derivatives. Which is the only public sector bank on the list of banks to be fined?
a. State bank of India
b. Punjab National Bank
c. Bank of India
d. Indian Bank
Answer: (a)

12. The Reserve Bank of India on 18 April 2011 formed a conglomerate cell within its supervisory set-up to keep a constant vigil on 12 large domestic and foreign banks. Which one of these banks will not come under the prescribed supervisory vigil?
a.State Bank of India
b. Bank of India
c. Bank of Baroda
d. Canara Bank
e. Punjab National Bank
Answer: (d)

13. Power equipment maker Bharat Heavy Electricals (BHEL) on 19 April 2011 announced that its consortium with Alstom won Rs 1,600 crore contract for steam turbine generators for which nuclear power station in India?
a. Kakrapur Nuclear Power Station
b. Kalpakkam Nuclear Power Station
c. Kudankulam Nuclear Power Plant
d. Jaitapur Nuclear Power Project
Answer: (a)

14. Oil regulator Directorate General of Hydrocarbons (DGH) refused to which companies’ spending on KG-D6 gas fields?
a. Reliance Industries
b. ONGC Videsh
c. Essar Oil
d. Mangalore Refinery and Petrochemicals Limited
Answer: (a)

15. Which of the following PSUs was honoured with the Outstanding PSU of the Year award by All India Management Association on 21 April 2011?
a. GAIL India
b. ONGC
c. Bharat Heavy Electricals Ltd.
d. Indian Oil Corporation Ltd.
Answer: (a)

16. Which public sector bank decided to do away with the teaser home loan scheme beginning 30 April 2011?
a. State Bank of India
b. Bank of India
c. Union Bank
d. Punjab National Bank
Answer: (a)

17. Read the sentences with respect to the Telecom Policy 2011.
1. Telecom Policy 2011 was unveiled by the Communications and IT Minister, Kapil Sibal on 11 April 2011.
2. The decision to move to a uniform licence fee in the telecom sector was also pronounced in the policy.
3. The norms concerning merger and acquisition (M&A) mentioned that the minimum number of operators will not be allowed to fall below eight at any point in time in each circle.
4. The policy highlighted formation of a committee, under the chairmanship of retired Supreme Court judge Shivraj Patil to draft the Telecom Act.
Which of the above mentioned facts are not true about Telecom Policy 2011?
a. 1,2 & 3
b. 3 & 4
c. 1 & 2
d. 2 & 3
Answer: (b)

18.  Indian Finance Ministry on 11 April decided to issue biometric PAN cards to taxpayers across the country to erase the problem of duplicate and fake ones. Which Indian Finance Minister has first proposed the biometric PAN card?
a. Pranab Mukherjee
b. P Chidambaram
c. Jaswant Singh
d. Yashwant Sinha
Answer: (b)

19. Which industry body representing GSM players announced in April 2011 its decision to combine forces with the government to ensure wide scale spread of mobile broadband?
a. Cellular Operators Association of India
b. Cellular Rights Association
c. TRAI’s Cellular Arm
d. DIT
Answer: (a)

20. The 218-km Chainsa-Sultanpur-Neemrana pipeline was commissioned on 9 April 2011. Which of the following built the pipeline?
a. RIGZONE
b. GAIL (India)
c. High - Tech Group of Companies
d. Max Engineering
Answer: (b)

21. According to global research group Gartner, the Indian domestic BPO market is projected to grow by 23% and reach which of the following figures in the current financial year 2011?
a. $1.69 billion
b. $1.4 billion
c. $2.47 billion
d. $1.1 billion
Answer: (b)

22. Which are the two Gujarat-based cooperative sector lenders on which Reserve bank of India imposed a financial penalty of Rs 1 lakh each for violation of various rules, including anti-money laundering guidelines?
1. Shree MahalaxmiMercantile Co-operative Bank
2. Rander People's Co-operative Bank
3. Abad District Co Op Bank
4. Ahd Mercantile Co-Op Bank Ltd
a. 1 & 2
b. 2 & 3
c. 1 & 4
d. 3 & 4
Answer: (a)

23. In view of the Intelligence Bureau’s report, Department of Telecommunications in April 2011requested to advice the Telecom Service Providers not to launch proposed pushmail/powermail service of which of the following?
a. HTC
b. Blackberry
c. Nokia
d. Apple’s iphone
Answer: (c)

24.    Which of the following steel plants in India achieved record production of 5.71 million tonnes (mt) of hot metal (a 6.3 per cent growth over 2009-10), 5.33 mt of crude steel (4.3 per cent) and 4.57 mt of saleable steel (4.3 per cent)?
a.    Bhillai Steel Plant
b.    Rourkela Steel Plant
c.    Bokaro Steel Plant
d.    Salem Steel Plant
Answer: (a)

25.    The Department of Information Technology (DIT) on 5 April 2011 published a draft policy on which of the following to enable the government departments to provide services, including payment of utility bills and filing of tax with the use of a medium?
a.    Mobile governance
b.    E-governance
c.    Service Delivery Gateway
d.    Applications Inter-operability
Answer: (a)

26.    Engineering and construction major L&T announced that it has achieved financial closure for which of the following with the help of 10-bank consortium led by SBI pitching in with Rs 11478 crore debt?
a.    Kolkata Metro Rail Project
b.    Pune Metro Project
c.    Delhi Metro project
d.    Hyderabad Metro Rail project
Answer: (d)

27.    At the National Conference on Kharif Strategies, Agriculture Minister Sharad Pawar on 6 April 2011 mentioned that India has achieved an all-time high production of foodgrains. What was the estimation regarding foodgain production in 2010-11?
a.    235.88 million tonnes
b.    215 million tonnes
c.    261.34 million tonnes
d.    222.66 million tonnes
Answer: (a)

28.    This agency issued guidelines on distance marketing of products on 6 April 2011 to protect the interest of people who buy policies over phone or Internet. Identify the agency.
a.    SEBI
b.    IRDA
c.    TRAI
d.    DoT
Answer: (b)

29.    Buyer's Credit was launched by the Commerce and Industry Minister, Anand Sharma, on 6 April 2011 to boost project exports from India. Under which of the following was Buyer’s Credit launched?
a.    National Export Insurance Account
b.    Export-Import Bank of India
c.    Export Credit Guarantee Corporation of India
d.    Reserve Bank of India
Answer: (a)

30.    Record food grain production helped to reduce to food inflation to a four month low for the week ending 26 March 2011. What was the inflation percentage for the week?
a.    9.18%
b.    9.25%
c.    9.21%
d.    9.36%
Answer: (a)

31. Read the following statements regarding FSLRC
1.    Indian government on 24 March 2011 constituted 11member Financial Sector Legislative Reforms Commission (FSLRC).
2.    The 11-member commission will be headed by former PFRDA Chairman D Swarup.
3.    The commission will examine the architecture of the legislative and regulatory system governing the financial sector in India.
4.    It will study the interplay of exchange controls under SEBI and IRDA Policy with other regulatory regimes within the financial sector.
Which of the above mentioned statements are not true?
a.    Only 4
b.    2 & 4
c.    3 & 4
d.    Only 3
Answer: (b)

32. The Indian government in end March 2011 announced its decision to create Rs 2,500-crore corpus for   technology modernisation of which of the following by 2012?
a.    Handloom sector
b.    Micro, small and medium units
c.    Horticulture sector
d.    Dairy
Answer: (b)

33.  National Thermal Power Corporation (NTPC Ltd) and Indian Ministry of Power signed Memorandum of Understanding (MOU) for the year 2011-12 on 27 March in New Delhi. What is the current total installed capacity of NTPC?
a.    33694 MW
b.    31684 MW
c.    35321 MW
d.    46099 MW
Answer: (a)

34.    The Cabinet Committee on Economic Affairs cleared two major foreign direct investment (FDI) proposals including that of Hero Investments Pvt. Ltd. (HIPL), a part of the Hero Group, and Reckitt Benckiser's plan. What is the total worth of the FDI proposals cleared by the government?
a.    Rs 7800 crore
b.    Rs 7850 crore
c.    Rs 8100 crore
d.    Rs 8800 crore
Answer: (a)

35.    Commodity exchange regulator Forward Markets Commission (FMC) in March end 2011 finally agreed to give six more months to which of the following bourses to resurrect its equity structure?
a.    MCX
b.    NCDEX
c.    NMCE
d.    NSE
Answer: (c)

36.    Tehri Hydro Development Corporation (THDC) India Ltd commissioned the first unit of its 400-Mw Koteshwar hydel project in March 2011.Koteshwar Hydro-Electric Project is located 22 Km downstream of Tehri Dam on which of the following rivers?
a.    Bhagirathi
b.    Alaknanda River
c.    Mandakini River
d.    Dhauliganga River
Answer: (a)

37.    According to the Engineering Export Promotion Council (EEPC) data by what percentage did engineering export grow in month of February 2011?
a.    72.3%
b.    75%
c.    75.7%
d.    77.4%
Answer: (b)

38.    Based on the recommendations of FIPB the Indian Government on 23 March 2011 approved 14 Foreign Direct Investment proposals and 27 proposals. What is the total worth of the FDI proposals accepted by the government?
a.    Rs 1289 crore
b.    Rs 1500 crore
c.    Rs 1342 crore
d.    Rs 1100 crore
Answer: (a)

39.    The finance ministry has opposed the Reserve Bank of India’s suggestion to restrict foreign direct investment in new banks. RBI had restricted foreign direct investment in new banks to what percentage?
a.    43%
b.    43.22%
c.    45.7%
d.    49%
Answer: (d)

40.    Consider the following statements-

1.    CAG in March 2011 sent a questionnaire consisting 40 questions to the telecom ministry on 2G spectrum allocation scam and other developments in the sector.
2.    The department of telecom (DoT) was asked as to why the spectrum (radio waves) allocation was not delinked from the licence as it was known that spectrum was scarce vis-a-vis the demand.
3.    The Parliamentary panel wanted to know whether DoT consulted telecom regulator TRAI regarding the “No Cap” recommendation on number of operators in a circle.
4.    The loss incurred by the exchequer as a result of the 2G scam is estimated to be Rs 185379 crore
Which of the above mentioned statements related to the 2G scam is true?
a.    All of the above statements
b.    1 & 4
c.    2 & 3
d.    2 & 4
Answer: (c)

41.    Which of the following bodies ordered restriction on transmitting unauthenticated news by brokers and wealth managers on blogs and mobile phones in an effort to prevent stock manipulation through rumours?
a.    RBI
b.    IRDA
c.    FIPB
d.    SEBI
Answer: (d)

42.    Which of the following bodies put off indefinitely the new rules governing unwanted telemarketing calls which were supposed to be implemented from 21 March 2011?
a.    Department of Telecommunication (DoT)
b.    Telecom Regulatory Authority of India (TRAI)
c.    Indian Ministry of communication & Technology
d.    HRD Ministry
Answer: (b)

43.    The Indian government in March 2011 conferred the Miniratna status on which of the following PSUs?
a.    National Small Industries Corporation (NSIC)
b.    Air India Charters Ltd
c.    Cement Corporation of India
d.    HMT Machine Tools Ltd
Answer: (a)

44.    Union Finance Minister Pranab Mukherjee on 11 March 2011 announced in Lok Sabha an increase in the allocation under the Members of Parliament Local Area Development Scheme (MPLAD) Scheme from Rs.2 crore to Rs.5 crore per Member. When was the MPLAD scheme introduced?
a.    1990
b.    1991
c.    1992
d.    1993
Answer: (d)

45.    Union Minister of Finance Pranab Mukherjee declared in the Lok Sabha on 11 March 2011 the extension of the existing Interest Subvention Scheme of providing short term loans to farmers at 7% interest with additional interest subvention for timely repayment to which of the following group?
a.    Small scale entrepreneurs
b.    Cottage industries & handicraft professionals
c.    Fishermen
d.    Horticulturists
Answer: (c)

46.    Indian agriculture needs Rs 108000 crore to fight climate change in the next five years to ensure food for all at a reasonable price by 2020. National Mission for Sustainable Agriculture is implemented under which of the following?
a.    NABARD
b.    Bharat Nirman
c.    Prime Minister's National Action Plan on Climate Change
d.    Accelerated Fodder Development Programme
Answer: (c)

47.    Read the following sentences with regard to NSIC.
1.    National Small Industries Corporation (NSIC) is a public sector undertaking under the ministry of micro, small and medium enterprises (MSME).
2.    NSIC was awarded the Mini Ratna status by the Indian Governmnet on 3 March 2011.
3.    NSIC has a marked presence both in the service as well as the manufacturing sectors.
4.    NSIC acts as a facilitator to promote small industries through various user-friendly and demand-driven schemes
Which of the following sentence/sentences is/are not true with regards to NSIC?
a.    Only 3
b.    1 & 3
c.    Only 2
d.    2 & 4
Answer: (a)

48.    In February 2011 imports rose to $31.70 billion, up 21.2 per cent over the same period in 2010 while exports rose 49.8 per cent to $23.60 billion. What was the trade deficit in February 2011?

a.     (-)8.1 billion
b.    (-)8 billion
c.    (-)8.3 billion
d.    (-)8.8 billion
Answer: (a)

496.    The Reserve of India on 17 March 2011 increased the interest rate at which it injects liquidity into the banking system by 25 basis points to 6.75 per cent (repo rate). It also revised its inflation projection for March-end 2011 from 7 % to _?

a.    7.3
b.    7.5
c.    7.5
d.    8
Answer: (d)

50. As per the official data released by TRAI on 9 March 2011, which state in MNP Zone-2 recorded the maximum number of request for mobile number portability by end of February 2011?
a.    Tamil Nadu
b.    Karnataka
c.    West Bengal
d.    Assam
Answer: (b) Karnataka

51. The Enforcement Directorate has booked Pune-based real estate agent and stud farm owner Hasan Ali Khan under section 3 of the Prevention of Money Laundering Act (PMLA), 2002. When did PMLA come into existence?
a.    2000
b.    2002
c.    2005
d.    1999
Answer: (c) 2005

52. The e-commerce portal of India Post, was launched by Union Minister Kapil Sibal on 9 March 2011 provide postal services online. Which among the following is the correct name of the portal?
a.    e-post office
b.    e-post service
c.    e-postal services
d.    India Post e-commerce
Answer: (a) e-post office

53. Steel tycoon Lakshmi Mittal overtook Mukesh Ambani to become the wealthiest Indian as per the annual Forbes list of World Billionaires for 2011. What is Lakshmi Mittal’s ranking in the list?
a.    Fourth
b.    Sixth
c.    Ninth
d.    Eleventh
Answer: (b) Sixth

54. According to the Economic Survey of India 2010-11, Forex Reserves estimated at __ US dollars.
a) 297.3 billion US dollars
b) 245.6 billion US dollars
c) 285.4 billion US dollars
d) 113.2 billion US dollars
Answer: (a) 297.3 billion US dollars

55. Consider the following statements regarding the Economic Survey of India 2010-11.
i) Agriculture likely to grow at 5.4% in 2010-11
ii) Trade Gap narrowed to 82.01 billion US dollars in April-December 2010
iii) 59% rise in Bank Credit
Please choose the right option:
a)    All the three statements  i, ii and iii are correct ; b) only I and ii are correct
b)    All three statements are wrong ; d) only i) is correct
Answer: (a) All three Statements i, ii and iii are correct

56.  India’s External debt stood at 295.8 billion US dollars at the end of September 2010, recording an increase of 33.5 billion US dollars ove the level of end-March 2010. The rise in debt was largely due to
i) Higher Commercial borrowings; ii) Short-term trade credits
iii) Multilateral government borrowings
Please choose the right option:
a)    Only i  b) only i and ii
b)    Only i and iii ; d) All I,ii and iii
Answer: (d) All i, ii and iii

57. Consider the following statements:
1. India’s exports crossed the USD 200 billion mark in the first eleven months of the 2010-11 fiscal.
2. The trade gap for the first 11 months of the financial year 2010-11 stood at USD 97.1 billion.
3. African countries and Japan were the traditional markets for Indian exporters during the 2010-11.
4. The current forecast for the 2011-12 is USD 230-235 billion.
Which of the statement given above is not correct?
a.1
b. 2
c. 3
d.4
Answer: (c) 3

58.    According to the Economic survey 2010-11 what percentage growth was recorded by the manufacturing sector in 2010?
a.    9.1%
b.    8.6%
c.    7.3&
d.    8%
Answer: (a)

59.    As per the economic Survey of India 2010-11, the production of food grains is estimated at over 232 million tonnes with record production of which food crop?
a.    Rice
b.    Wheat
c.    Bajra
d.    Maize
Answer: (b)

60.    What is the percentage growth of GDP predicted by The Economic Survey for the financial year 2010-11?
a.    8.6%
b.    8.3%
c.    8%
d.    9.1%
Answer: (a)

61.    The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector?
a.    Export sector
b.    Foreign Direct Investments
c.    Agricultural output
d.    Industrial output
Answer: (a)

62.    Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fiscal Deficit in 2010?
a.    6.3%
b.    5.8%
c.    5%
d.    7.1%
Answer: (a)

63.    Agriculture is expected to grow by what percentage in 2010-11 as per the Economic Survey?
a.    5%
b.    5.1%
c.    5.4%
d.    5.5%
Answer: (c)

64.    What percentage of GDP growth at market prices was estimated by the Economic Survey 2010-11?
a.    9%
b.    9.5%
c.    9.7%
d.    10%
Answer: (c)

65.    Exports surged by what percentage in the period between April to December 2010?
a.    25%
b.    29.5%
c.    18.1%
d.    33%
Answer: (b)

66.    Finance Minister Pranab Mukherjee proposed to increase the Income Tax Exemption Limit for individual tax payers from 1 lakh 60 to _?
a.    1 lakh 80 thousand
b.    1 lakh 90 thousand
c.    2 lakh
d.    2 lakh 20 thousand
Answer:     (a)

67.    Which of the following was not proposed in the Union Budget 2011-12 presented by pranab Mukherjee?
1.    Special vehicles were proposed to be created in the form of Infrastructure Debt Funds to attract foreign funds.
2.    Rs. 300 crore expenditure was proposed to promote horticulture centres in rain fed areas for increasing crop productivity.
3.    For the manufacturing sector, the budget proposed reduction of basic customs duty on raw silk from 30 to 5 per cent.
4.    Concessional 10 per cent Excise Duty was also proposed for fuel cell or Hydrogen cell-technology-based vehicles.
a.    1 & 3
b.    Only 2
c.    Only 4
d.    3 & 4
Answer: (b)


68.    In the Budget it was proposed to provide sum of money for implementation of vegetable initiative to set in motion a virtuous cycle of higher production and incomes for the farmers. What was the proposed amount?
a.    Rs 500 crore
b.    Rs 300 crore
c.    Rs 10000 crore
d.    Rs 650 crore
Answer: (b)

69.    Rashtriya Swasthya Bima Yojana was proposed to be being extended to the beneficiaries of which of the following Union Government schemes?
a.    Mahatma Gandhi NREGA beneficiaries
b.    Beneficiaries of Swavlamban pension scheme
c.    Indira Gandhi National old Age Pension scheme beneficiaries
d.    Beneficiaries of Rajiv Gandhi Grameen Vidyutikaran Yojana
Answer: (a)

70.    Read the two statements mentioned with regard to the budgetary allocations for addressing environmental concerns.
1.    The budget proposed that the solar lantern used in far-flung villages will attract no duty from 10 per cent charged earlier.
2.    To provide green and clean transportation for the masses, National Mission for Hybrid and Electric Vehicles will be launched in the year 2011 in collaboration with all stakeholders.
Which of them is true?
a.    Only 1
b.    Only 2
c.    Both 1 & 2
d.    None of the above
Answer: (b)

71.    To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund was announced to be created under which of the following scheme or Yojana?
a.    Rajiv Awas Yojana
b.    Rajiv Gandhi Grameen Vidyutikaran Yojana
c.    Indira Awas Yojana
d.    Mahatama Gandhi NREGA
Answer: (a)

72.    Read the following statements with regard to the allocation in the Educational sector as proposed by Union Budget 2011-12.
1.    For Sarva Siksha Abhiyan the allocation was increased by 40 percent to 21000 crore rupees.
2.    All institutions of higher learning will be connected through optical fibers by March 2012.
3.    500 crore rupees was proposed to be provided for national skill development fund.
4.    For the needy scheduled castes ad scheduled tribe candidates studying in class-IX and Xth pre-matric scholarship scheme was proposed to be introduced.
Which of the above mentioned statements is not true?
a.    1
b.    2
c.    3 & 4
d.    4
Answer: (b)

73.    The Basic Customs Duty exemption was proposed to be extended to which of the following sectors?
a.    art and antiquities for exhibition or display in private art galleries
b.    Cinematographic film, factory-built ambulances
c.    syringes and needles
d.    agricultural machinery
Answer: (a)

74.    What amount of money was allocated for Bharat Nirman?
a.    1000 crore
b.    58000 crore
c.    55438 crore
d.    14362 crore
Answer: (b)

75.    The Union Budget for 2011-12 proposed lowering of qualifying age for tax relief for senior citizens from 65 years to _?
a.    55
b.    58
c.    60
d.    62
Answer: (c)

76.    Which of the following statement/statements is/are true with reference to the Railway Budget 2011?
1.    Railway Minister Mamata Banerjee proposed Annual Plan for the year 2011-12 at Rs 57630 cr which is the highest ever plan investment by the railways in a single year.
2.    Under the proposed Pradhan Mantri Rail Vikas Yojana the pending socially desirable lines would be completed and other similar new line projects would also be taken up.
3.    Mamata Banerjee declared 2010-11 as the Year of Green Energy.
4.    2 AC Double Decker Trains in the Jaipur-Delhi and Delhi-Ahmedabad routes were proposed.
Choose Answers:
a.    1,2 & 3
b.    1 & 4
c.    2 & 3
d.    1 & 2
Answer: (d)

77.    Acknowledging the need for development of J&K and North-east, Mamata Banerjee introduced in the Railway Budget 2011 a number measures for these two regions. In which of the following North-eastern cities did the budget propose to set up a diesel locomotive centre?
a.    Imphal
b.    Manipur
c.    Guwahati
d.    Tripura
Answer: (b)

78.    Read the two statements with regard to the passenger benefit plans proposed in the Railway Budget 2011.
1.    The budget proposed extension of Train Management System to New Delhi, Bangalore, Secunderabad, Ahmedabad and Lucknow stations to provide information on running of trains.
2.    Mamta Banerjee introduced a new concept of Smart Card - Go India for long distance travel by Indian railways.
Which of the two statements are true?
a.    Only 1
b.    Only 2
c.    Both 1 & 2
d.    None of the above
Answer: (c)

79.    According to Railway Budget 2011, railway card passes would be extended to the parents of the unmarried posthumous winners of which of the following Awards?
1.    Param Vir Chakra
2.    Bharat Ratna
3.    Ashok Chakra gallantry award
4.    Padma Shri
a.    1 & 2
b.    2 & 3
c.    1, 2 & 3
d.    1 & 3
Answer: (d)


80.    Which of the following schemes proposed in the Railway Budget 2011 is/are not meant for Railway Employees?
1.    Expansion of Liberalized Active Retirement Scheme for Guaranteed Employment
2.    Railway Vidyalaya Prabandhan Board
3.    Sukhi Griha Scheme
4.    Pradhan Mantri Rail Vikas Yojana
a.    1 & 3
b.    3 & 4
c.    2 & 4
d.    1 & 4
Answer: (b)

81.    The electrical energy requirement of railways is growing rapidly with the expansion of the rail infrastructure and traffic. Considering the rising demand the Ministry of Railways proposed to set up 700 MW power plant at Thakurli in Maharashtra. The power plant is proposed to be based on what form of energy?
a.    gas-based
b.    coal-based
c.    solar power
d.    nuclear energy based
Answer: (a)

82.    Ministry of Railways proposed to extend Anti Collision Device (ACD) to which of the following Railway zones in India
1.    Eastern zone
2.    East Central
3.    North Eastern
4.    South Central

a.    1 & 4
b.    2 & 4
c.    1 & 2
d.    1 & 3
Answer: (c)

83.    With regard to the infrastructure development of Railways as proposed in Railway Budget 2011 which statement/statements is/are false?
1.    The budget proposed to lay 40 new lines, covering 1075 km.
2.    The Ministry has allocated Rs 5406 crore for doubling of 867 km of lines
3.    A greater thrust was given to the expansion of the rail network with a larger allocation of Rs 9583 cr for new lines.
4.    for gauge conversion over 1017 km. Rs 13820 crore was proposed

a.    Only 1
b.    1 & 2
c.    Only 4
d.    2 & 4

Answer: (c)

84.    To raise money, the Railways was allowed for the first time, to issue tax-free bonds worth what sum of money?
a.    Rs 10000 crore
b.    Rs 5500 crore
c.    Rs 1000 crore
d.    Rs 5000 crore

Answer: (a)

85. For rural development allocation Union Budget 2011-12 is—
(A) Rs. 16,000 crore
(B) Rs. 46,000 crore
(C) Rs. 56,000 crore
(D) Rs. 87,800 crore

Answer: (d)

86. What is true for the service tax in Union Budget 2011-12 ?
(A) It is raised from 10 to 12%
(B) It is left unchanged at 11%
(C) It is left unchanged at 10%
(D) It is reduced from 14% to 12%

Answer: (c)

87. The target for exports in 2013-14 has been fixed at—
(A) $ 300 billion
(B) $ 275 billion
(C) $ 250 billion
(D) $ 450 billion

Answer: (d)

88. Global Hunger Index released by IFPRI in October 2010 places India at—
(A) 58th rank
(B) 64th rank
(C) 67th rank
(D) 74th rank

Answer: (c)

89. ‘Aam Admi Bima Yojana’ is an insurance scheme for rural landless households executed by the nodal agency—
(A) National Insurance Co.
(B) State Government
(C) LIC
(D) Central Government

Answer: (b)

90. Revenue Deficit as a per cent of GDP in Budget 2011-12 has been estimated at—
(A) 4.2%
(B) 6.8%
(C) 6.0%
(D) 4.6%

Answer: (d)

91. GST would be introduced from—
(A) January 1, 2012
(B) August 1, 2011
(C) April 1, 2012
(D) August 15, 2011

Answer: (c)

92. The rate of Minimum Alternate Tax (MAT) proposed in the budget 2011-12 is—
(A) 15%
(B) 18.5%
(C) 20%
(D) 22%
Answer: (b)

93. Which of the following is not a financial regulator ?
(A) IRDA
(B) AMFI
(C) PFRDA
(D) SEBI

Answer: (b)

94. Inflation in India is measured on which of the following indexes/indicators ?
(A) Cost of Living Index
(B) Consumer Price Index
(C) Wholesale Price Index
(D) Gross Domestic Product

Answer: (c)

95. As per 13th Finance Commission Recommendations during 2010-15, transfers to the states from the central tax pool are expected to be—
(A) Rs. 44000 crore
(B) Rs. 164832 crore
(C) Rs. 318581 crore
(D) Rs. 107552 crore

Answer: (c)

96. From which of the following taxes, the Central Government will get the maximum revenue in 2011-12 ?
(A) Custom Duties
(B) Income Tax
(C) Excise Duties
(D) Corporation Tax

Answer: (d)

97. As per quick estimates for the year 2010-11, Indian economy’s GDP at factor cost (at current prices) stood at—
(A) Rs. 3790063 crore
(B) Rs. 4713000 crore
(C) Rs. 4879232 crore
(D) Rs. 6426277 crore

Answer: (c)

98. What is the theme of World Development Report 2010 ?
(A) Poverty and Next Generation
(B) The Real Wealth of Nations : Path Ways to Human Development
(C) Incidence of Rural Poverty
(D) Development and the Next Generation

Answer: (b)

99. In New Direct Tax Code for senior citizens, income tax exemption slab has been raised to—
(A) Rs. 2.00 lakh
(B) Rs. 2.00 lakh
(C) Rs. 2.50 lakh
(D) Rs. 3.00 lakh

Answer: (c)

100. As per revised estimates for 2010-11 released by CSO, the growth rate for Indian economy has been estimated to be—
(A) 9.5%
(B) 8.6%
(C) 9.8%
(D) 6.7%

Answer: (b)

Tuesday, May 10, 2011

India Signs $69 Million Loan Agreement with ADB for Madhya Pradesh Power Sector Investment Programme

India and the Asian Development Bank (ADB) today signed a $69 million loan agreement which is the sixth and final tranche of the $620 million Madhya Pradesh Power Sector Investment Programme. This multi-tranche financing facility was approved by ADB on 29 March 2007. The signatories of the sixth tranche were Shri Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Hun Kim, ADB’s Country Director for India.

The sixth tranche will assist the Madhya Kshetra Vidyut Vitaran Company reduce power transmission and distribution losses in 117 towns. It will also support the M. P. Poorv Kshetra Vidyut Vitaran Company, the M. P. Paschim Kshetra Vidyut Vitaran Company, and the M.P. Power Trading Company set up information technology (IT)-management systems linking all parts of the distribution and trading companies in the state. The IT management system will have a number of modules, including energy auditing, inventory tracking, and human resources and financial management, which will help the distribution companies increase efficiency. The sixth tranche will be implemented over a period of three and a half years.

The 6 tranches of the Madhya Pradesh Power Sector Investment Programme will increase transmission capacity in the state to about 10,000 megawatts (MW) from 5,563 MW and reduce transmission and distribution losses significantly. Enhanced power reliability, quicker repairs, along with better meter reading and billing, will also help improve the service to consumers. These measures will boost the financial performance of the state’s power sector and reduce its dependence on external support.

Speaking on the occasion, Shri Venu Rajamony said that long term impact of the programme will be inclusive economic growth of the people of the state, through enhanced power supply to households through reduced transmission and distribution losses, thereby increased transmission capacity. He said that the ADB program would improve operational efficiency in electricity distribution and financial sustainability of the distribution companies in the state.

Mr. Hn Kim, Country Director for India said that ADB has been a long-standing development partner for Madhya Pradesh. As of today, it has approved 14 loans amounting to $2.27 billion covering the power, urban, state road, and rural road sectors. ADB has also helped the state through a public resource management loan, Mr. Kim said.

Government Releases Funds for Power Development and Reforms Projects

The Ministry of Power has released Rs. 4029 Crores for taking up new projects under the Restructured Accelerated Power Development & Reforms Programme (R- APDRP). These projects will be taken up in two parts. While the Part-A will be for establishing IT enabled systems for energy accounting/ auditing and SCADA for big cities, Part-B will be for regular distribution upgradation and strengthening projects.

Out of the total released amount, Rs. 3903 Crores are in the form of loan for disbursement to state utilities while Rs. 126 Crores are as grant against enabling component for implementation of R-APDRP. Expressing satisfaction over the progress of the programme, the Union Power Minister, Shri Sushilkumar Shinde said here that all the States and Union Territories have invited Request for Proposals (RFPs) for appointing IT Implementing agencies for executing Part-A projects. So far 21 States and Union Territories have already appointed IT Implementing agencies.

The R-APDRP was launched in July, 2008 as a Central Sector Scheme with a total outlay of Rs. 51,577 Crores with an objective to reduce AT&C losses. The outlay for Part-A is Rs. 10,000 crore and for Part-B, it is Rs. 40,000 crore. The programme covers towns and cities with population more than 30,000 (10,000 for special category States).

While the Part-A projects worth Rs. 5177 Crores covering almost all the eligible 1401 towns have already been sanctioned, an additional 28 SCADA projects worth Rs. 669 Crores have also been sanctioned in six states including Gujarat, Andhra Pradesh, Kerala, Madhya Pradesh, Rajasthan and Tamil Nadu. Besides this, 823 projects worth Rs. 15,975 crores have been approved in 14 states including Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Sikkim, Tamil Nadu, Uttar Pradesh, West Bengal and Haryana under Part-B.

The use of Information Technology in distribution network through R-APDRP programme will help in establishment of complete energy auditing and accounting system, consumer indexing upto distribution transformer, facilitate meter reading, billing, collection, preparation of MIS, redressal of consumer grievances and establishment of IT enabled customer care centre.