A detailed literature survey shows that micro and small enterprises contribute to economic growth through several pathways that go beyond job creation. In India, the Micro and Small Enterprises (MSEs) sector plays a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector accounts for about 39% of the manufacturing output and around 33% of the total export of the country. Further, in recent years the MSE sector has consistently registered higher growth rate compared to the overall industrial sector. The major advantage of the sector is its employment potential at low capital cost. As per available statistics, this sector employs an estimated 31 million persons spread over 12.8 million enterprises and the labour intensity in the MSE sector is estimated to be almost 4 times higher than the large enterprises.
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises: The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
Government Policies and Support Measure: A Brief History
The evolution of the policy framework and support measures of the Government of India can be broadly grouped into the following three periods:
1948-1991:
In all the Policy Resolutions from 1948 to 1991, recognition was given to the micro and small enterprises, termed as an effective tool to expand employment opportunities, help ensure equitable distribution of the national income and facilitate effective mobilization of private sector resources of capital and skills. The Micro, Small and Medium Enterprises Development Organisation [earlier known as Small Industries Development Organization (SIDO)] was set up in 1954 as an apex body for sustained and organised growth of micro, small and medium enterprises.
Within next two years, the National Small Industries Corporation, the Khadi and Village Industries Commission and the Coir Board were also set up. The era provided the supportive measures that were required to nurture MSEs, in the form of reservation of items for their exclusive manufacture, access to bank credit on priority through the Priority Sector Lending Programme of commercial banks, excise exemption, reservation under the Government Purchase Programme and 15% price preference in purchases, infrastructure development and establishment of institutes for entrepreneurial and skill development. MSME – Development Institutes [earlier known as Small Industries Service Institute (SISI)] were set up all over India to train youth in skills/entrepreneurship. Tool Rooms were established with German and Danish assistance for providing technical services essential to MSEs as also for skill training. At the State level, District Industries Centres were set up all over the country.
1991-1999:
The new Policy for Small, Tiny and Village Enterprises of August, 1991 laid the framework for government support in the context of liberalisation, which sought to replace protection with competitiveness to infuse more vitality and growth to MSEs in the face of foreign competition and open market. Supportive measures concentrated on improving infrastructure, technology and quality. Testing Centres were set up for quality certification and new Tool Rooms as well as Sub-contracting Exchanges were established. The Small Industries Development Bank of India (SIDBI) and a Technology Development and Modernisation Fund were created to accelerate finance and technical services to the sector. A Delayed Payment Act was enacted to facilitate prompt payment of dues to MSEs and an Industrial Infrastructure Development (IID) scheme was launched to set mini industrial estates for small industries. 1999 onwards: The Ministry of MSME [earlier known as Ministry of Small Scale Industries and Agro & Rural Industries (SSI & ARI)] came into being from 1999 to provide focused attention to the development and promotion of the sector.
The new Policy Package, announced in August 2000, sought to address the persisting problems relating to credit, infrastructure, technology and marketing. A Credit Linked Capital Subsidy Scheme was launched to encourage technology up-gradation in the MSE sector and a Credit Guarantee Scheme was started to provide collateral-free loans to micro and small entrepreneurs, particularly the first generation entrepreneurs. The exemption limit for relief from payment of Central Excise duty was raised to Rs.1 crore ($0.25 million) and a Market Development Assistance Scheme for MSEs was introduced. At the same time, consultations were held with stakeholders and the list of products reserved for production in the MSE sector was gradually reduced each year. In 2006, the long-awaited enactment for this sector finally became a reality with the passage of the Micro, Small and Medium Enterprises Act. In March, 2007, a third Package for the Promotion of Micro and Small Enterprises was announced which comprises the proposals/schemes having direct impact on the promotion and development of the micro and small enterprises, particularly in view of the fast changing economic environment, wherein to be competitive is the key of success.
Micro, Small and Medium Enterprises Development Act, 2006
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 seeks to facilitate the development of these enterprises as also enhance their competitiveness. It provides the first-ever legal framework for recognition of the concept of “enterprise” which comprises both manufacturing and service entities. It defines medium enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely, micro, small and medium.
The Act also provides for a statutory consultative mechanism at the national level with balanced representation of all sections of stakeholders, particularly the three classes of enterprises; and with a wide range of advisory functions. Establishment of specific Funds for the promotion, development and enhancing competitiveness of these enterprises, notification of schemes/programmes for this purpose, progressive credit policies and practices, preference in Government procurement to products and services of the micro and small enterprises, more effective mechanisms for mitigating the problems of delayed payments to micro and small enterprises and assurance of a scheme for easing the closure of business by these enterprises are some of the other features of the Act.
Foreign Direct Investment (FDI) Policy
With the promulgation of the MSMED Act, 2006, the restrictive 24% ceiling prescribed for equity holding by industrial undertakings, whether domestic or foreign, in the MSEs has been done away with and MSEs are defined solely on the basis of investment in plant and machinery (manufacturing enterprises) and equipment (service enterprises). Thus, the present policy on FDI in MSE permit FDI subject only to the sectoral equity caps, entry routes and other relevant sectoral regulations.
The issue of de-reservation had been a subject of animated debate within government for more than twenty years. The Approach to the Eleventh Five Year Plan noted the adverse implications of reservation of products for exclusive manufacture by the MSEs and recommended the policy of progressive de-reservation.
To facilitate further investments for technological up-gradation and higher productivity in the micro and small enterprises, 654 items have been taken off the list of items reserved for exclusive manufacture by the manufacturing micro and small enterprises in the last few years – reducing it to 21 at present. This has helped the sector in enlarging the scale of operations and also paved the way for entry of larger enterprises in the manufacture of these products in keeping with the global standards.
Credit/Finance
Credit is one of the critical inputs for the promotion and development of the micro and small enterprises. Some of the features of existing credit policy for the MSEs are:
Priority Sector Lending:
Credit to the MSEs is part of the Priority Sector Lending Policy of the banks. For the public and private sector banks, 40% of the net bank credit (NBC) is earmarked for the Priority Sector. For the foreign banks, however, 32% of the NBC is earmarked for the Priority Sector, of which 10% is earmarked for the MSE sector. Any shortfall in such lending by the foreign banks has to be deposited in the Small Enterprise Development Fund (SEDF) to be set up by the Small Industries Development Bank of India (SIDBI).
Institutional Arrangement:
The SIDBI is the principal financial institution for promotion, financing and development of the MSE sector. Apart from extending financial assistance to the sector, it coordinates the functions of institutions engaged in similar activities. SIDBI's major operations are in the areas of : (i) refinance assistance (ii) direct lending, and (iii) development and support services. Commercial banks are important channels of credit dispensation to the sector and play a pivotal role in financing the working capital requirements, besides providing term loans (in the form of composite loans). At the State level, State Financial Corporations (SFCs) and twin-functional State Industrial Development Corporations (SIDCs) are the main sources of long-term finance for the MSE sector.
Recognising the importance of easy and adequate availability of credit in sustainable growth of the MSE sector, the Government has announced a “Policy Package for Stepping Up Credit to Small and Medium Enterprises (SMEs)”, with the objective of doubling the flow of credit to this sector within a period of five years.
Emerging Sources:
Faced with increased competition on account of globalisation, MSMEs are beginning to move from an obsession with bank credit to a variety of other specialized financial services and options. In recent years, the country has witnessed increased flow of capital in the form of primary/secondary securities market, venture capital and private equity, external commercial borrowings, factoring services, etc. More advanced MSMEs have started realising the importance of these alternative sources of funding to raise resources and the need for adopting better governance norms to take advantage of these funding sources. The enactment of the Limited Liability Partnership Act, 2008 is expected to provide a thrust to the MSMEs in their move towards corporatisation.
Competitive Technology
In today's fast paced global business scenario, technology has become more vital than ever before. With a view to foster the growth of MSME sector in the country, Government has set up ten state-of-the-art Tool Rooms and Training Centers. These Tool Rooms provide invaluable service to the Indian industry by way of precision tooling and providing well-trained craftsmen in the area of tool and die making. These Tool Room are highly proficient in mould and die making technology and promote precision and quality in the development and manufacture of sophisticated moulds, dies and tools. The Tool Rooms are not only equipped with the best technology but are also abreast with the latest advancements like CAD/CAM, CNC machining for tooling, Vacuum Heat Treatment, Rapid Prototyping, etc.
The Tool Room & Training Centres also offer various training programmes to meet the wide spectrum of technical manpower required in the manufacturing sector. The training programmes are designed with optimum blend of theory and practice giving the trainees exposure on actual jobs and hands on working experience. The Tool Rooms have also developed special training programmes to meet the requirements at international level, which are attended by participants from all over the globe.
National Manufacturing Competitiveness Programme
The National Manufacturing Competitiveness Programme is the nodal programme of the Government of India to develop global competitiveness among Indian MSMEs. Conceptualised by the National Manufacturing Competitiveness Council, the Programme was initiated in 2007-08.
Export Promotion
Export promotion from the MSE sector has been accorded a high priority. To help MSEs in exporting their products, the following facilities/incentives are provided: (i) Products of MSE exporters are displayed in international exhibitions and the expenditure incurred is reimbursed by the Government; (ii) To acquaint MSE exporters with latest packaging standards, techniques, etc., training programme on packaging for exporters are organised in various parts of the country in association with the Indian Institute of Packaging; (iii) Under the MSE Marketing Development Assistance (MDA) Scheme, assistance is provided to individuals for participation in overseas fairs/exhibitions, overseas study tours, or tours of individuals as member of a trade delegation going abroad. The Scheme also offers assistance for (a) sector specific market study by MSE Associations/Export Promotion Councils/Federation of Indian Export Organisation; (b) Initiating/contesting anti-dumping cases by MSE Associations; and (c) reimbursement of 75 per cent of the one time registration fee and annual fee (recurring for first three years) charged by GSI India (formerly EAN India) for adoption of Bar Coding.
Infrastructure Development
For setting up of industrial estates and to develop infrastructure facilities like power distribution network, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common service facilities and technological back up services, etc, for MSMEs, the Integrated Infrastructural Development (IID) Scheme was launched in 1994. The scheme covers rural as well as urban areas with a provision of 50 per cent reservation for rural areas and 50 per cent industrial plots are to be reserved for the micro-enterprises. The Scheme also provides for up-gradation/strengthening of the infrastructural facilities in the existing industrial estates.
Fiscal Concessions
Under the General Excise Exemption Scheme, full excise exemption up to turnover of $375 thousand per annum is provided to enterprises having annual turnover of up to $1 million. However, the limits of excise exemptions has encouraged tendency among MSEs to go in for horizontal expansion (i.e. fragmentation) rather than vertical expansion and upward graduation into medium and large enterprises. For incentivising such graduation of small to medium/large enterprises so as to enable them to achieve economies of scale, extension of excise exemptions to the graduating medium enterprises on a tapering scale is under consideration of the Government.
Saturday, August 6, 2011
Friday, August 5, 2011
Food Security: Need to establish food democracy
Over one billion hungry people go to bed every day all over the world; this can be termed as our most tragic achievement in modern days. We have to reclaim our right to food, nutrition and food safety. The need is to produce food where the poor and hungry live and to boost agricultural investment in these regions. Food democracy is the new agenda for ecological sustainability and social justice. The FAO World Food Summit in 1996 had concluded that about 840 million people (15 per cent of population)are undernourished and that under current prospects this would only reduce to 680 million by 2010 (10 per cent ofworld population). This would be 18 per cent of the population in the most vulnerable countries where 3 billion people would live (out of a world population of about 6.8 billion in 2010). The report also highlighted the fact that a third of children (nearly 180 million) are malnourished and this may drop to quarter worldwide by 2020 and remain at 40 per cent in South Asia, a third of the people in Sub-Saharan Africa will be food insecure by 2010. This report and the subsequent reports of the FAO and other major international agencies have continuously underlined the impending problem before the world which is now clearly coming to surface in major parts of the world with varying regional implications.
Food security is access by all people at all times to enough food for an active, healthy life. This implies individual access in all seasons and all years not just for survival but for active participation in society. Further discussions on defining food security have been summarized by Maxwell (1998) as identifying livelihood security as a necessary and often sufficient condition for food security and focuses on the long term viability of the household as a productive and reproductive unit. Maxwell and others now favour the quality of the food entitlement (rather than just the quantity) where the emphasis is more on subjective assessment and on the nutritive value of the food being secured to the individuals. A country and people are called food secure when their food system operates in such a way as to remove the fear that there will not be enough to eat. In particular, food security will be achieved when the poor and vulnerable, particularly women and children and those living in marginal areas, have access to the food they want. Thus food security is a multi-objective phenomenon. The concerns on food security progressed over the last 50 years or so have been purely from physical availability at the global level to the provisions of food to individuals and the role of poverty in ensuring year round access to food. The interaction between agriculture/food policies and socioeconomic factors at the micro and macro-level is now considered crucial to ensuring food availability.
The world’s population is expected to reach to around 9 billion by 2050, global demand for food, feed and fibre will nearly double while, increasingly, crops may also be used for bioenergy and other industrial purposes. New and traditional demand for agricultural produce will thus put growing pressure on already scarce agricultural resources. And while agriculture will be forced to compete for land and water with sprawling urban settlements, it will also be required to serve on other major fronts: adapting to and contributing to the mitigation of climate change, helping preserve natural habitats, protecting endangered species and maintaining a high level of biodiversity.
We will need new technologies to grow more from less land, with fewer hands. Attaining long term food security will thus require the raising of incomes and making food affordable for the poor. This requires a multi-prolonged strategy. All the anti-poverty programs need to be made more transparent with better governance that minimizes leakages and benefits the poorest of the poor. Simultaneously the governments all over the world should take effective reforms to improve the agriculture by increasing the incentives, increasing the investment etc. so that agriculture production can be increased manifolds.
Food security is access by all people at all times to enough food for an active, healthy life. This implies individual access in all seasons and all years not just for survival but for active participation in society. Further discussions on defining food security have been summarized by Maxwell (1998) as identifying livelihood security as a necessary and often sufficient condition for food security and focuses on the long term viability of the household as a productive and reproductive unit. Maxwell and others now favour the quality of the food entitlement (rather than just the quantity) where the emphasis is more on subjective assessment and on the nutritive value of the food being secured to the individuals. A country and people are called food secure when their food system operates in such a way as to remove the fear that there will not be enough to eat. In particular, food security will be achieved when the poor and vulnerable, particularly women and children and those living in marginal areas, have access to the food they want. Thus food security is a multi-objective phenomenon. The concerns on food security progressed over the last 50 years or so have been purely from physical availability at the global level to the provisions of food to individuals and the role of poverty in ensuring year round access to food. The interaction between agriculture/food policies and socioeconomic factors at the micro and macro-level is now considered crucial to ensuring food availability.
M. S. Swaminathan has divided the post-war era into four phases
(a) 1940/60s - Food security was only considered in physical availability terms; (b) 1970s - Economic access to food was considered equally important; (c) 1980s - Food security was considered at the level of the individual and not merely of the household; and (d) 1990s - Recognition that micronutrients in addition to environmental hygiene and safe drinking water are important.
In adopting any growth model that ensures global food security sufficient amount of flexibility, adaptability, diversification and resilience should be there in policy formulation and implementation. Thus food security must be treated as a multi-objective phenomenon where the identification and weighting of objective should be decided by the food insecure themselves.
(a) 1940/60s - Food security was only considered in physical availability terms; (b) 1970s - Economic access to food was considered equally important; (c) 1980s - Food security was considered at the level of the individual and not merely of the household; and (d) 1990s - Recognition that micronutrients in addition to environmental hygiene and safe drinking water are important.
In adopting any growth model that ensures global food security sufficient amount of flexibility, adaptability, diversification and resilience should be there in policy formulation and implementation. Thus food security must be treated as a multi-objective phenomenon where the identification and weighting of objective should be decided by the food insecure themselves.
Causes and consequences
Today, the food system no longer responds to the nutritional needs of people, nor to sustainable production based on respect for the environment, but is based on a model rooted in a capitalist logic of seeking the maximum profit, optimization of costs and exploitation of the labour force in each of its productive sectors.The on-going food crisis has left 925 million hungry, according to the United Nations Food and Agriculture Organization (FAO). This figure is expected to rise to 1.2 billion hungry in 2017, according to the US Department of Agriculture. But in fact, the current food crisis is already affecting directly or indirectly half of the population worldwide, more than three billion people. A report released by a US based group claimed that South Asia continues to face critical levels of hunger. The report also highlighted that the current hot spots of hunger and under-nutrition are in South Asia and Sub- Saharan Africa. While there has been a dramatic improvement in South Asia, the region remains an area of great concern. The rising food prices and ensuing food scarcity has led to hunger riots in the countries of Africa and many Asian nations, as it is precisely the basic commodities that feed the poor which have experienced the biggest price rise. In countries like Haiti, Pakistan, Mozambique, Bolivia, Morocco, Senegal, Bangladesh and Niger people have come out onto the streets to say “ENOUGH”. Such food/hunger riots have left dozens of people dead and wounded.
Today, the food system no longer responds to the nutritional needs of people, nor to sustainable production based on respect for the environment, but is based on a model rooted in a capitalist logic of seeking the maximum profit, optimization of costs and exploitation of the labour force in each of its productive sectors.The on-going food crisis has left 925 million hungry, according to the United Nations Food and Agriculture Organization (FAO). This figure is expected to rise to 1.2 billion hungry in 2017, according to the US Department of Agriculture. But in fact, the current food crisis is already affecting directly or indirectly half of the population worldwide, more than three billion people. A report released by a US based group claimed that South Asia continues to face critical levels of hunger. The report also highlighted that the current hot spots of hunger and under-nutrition are in South Asia and Sub- Saharan Africa. While there has been a dramatic improvement in South Asia, the region remains an area of great concern. The rising food prices and ensuing food scarcity has led to hunger riots in the countries of Africa and many Asian nations, as it is precisely the basic commodities that feed the poor which have experienced the biggest price rise. In countries like Haiti, Pakistan, Mozambique, Bolivia, Morocco, Senegal, Bangladesh and Niger people have come out onto the streets to say “ENOUGH”. Such food/hunger riots have left dozens of people dead and wounded.
Short Term Causes: There are conjectural reasons which partially explain this dramatic increase in food insecurity in recent years: droughts and other meteorological phenomena linked to climate change in producer countries like China, Bangladesh and Australia and India that have affected crops and will continue impacting on food production. From my point of view, there are two short-term causes which have been determinant in rising food prices and should be highlighted: the increase in the price of oil since 2007, which would have had an effect directly or indirectly, and growing speculative investment in raw materials. Both factors have finally unbalanced an agro-food system which was extremely fragile.
Structural causes: If we look beyond these short term causes, there are various underlying reasons that explain the current food crisis. The neoliberal policies applied indiscriminately in the course of the last thirty years like trade liberalisation at all costs, privatization of public services and goods and so on and the model of agriculture and food at the service of a capitalist logic bear the primary responsibility for this situation. We can thus say that we are facing a deeper systemic problem with a global food model which is extremely vulnerable to economic, ecological and social shocks.The WTO policies forced developing countries to eliminate tariffs on imports, end protection for and subsidies to small producers and open their borders to the products of transnational corporations while the markets of the North remained highly protected. In the same way, regional treaties like the and North American Free Trade Agreement (NAFTA) Central America Free Trade Agreement (CAFTA) deepened trade liberalization, leading to bankruptcy for the farmers of the developing and under developed nations and made them dependent on food imports from the countries of the West. American and European agricultural subsidies, directed mainly towards the agro-food industry, obliterate the small local producer. This support to agribusiness accounts for a quarter of the value of agricultural production in the US and 40 per cent in the European Union.Thus the economic “development” policies driven by the Western countries from the 1960s onwards (Structural adjustment programmes, regional free trade treaties, the World Trade Organization and agricultural subsidies in the West) have led to the destruction of food systems and have continuously increased the food insecurity threat for the people of the developing and poor nations.
The Corporate Food System is another blow to the global food security. “Food economy” has made the corporates rule the trade in food items. In effect, the rich countries are ruling the roost and the poor nations already reeling under severe poverty and hunger, bear the brunt of the trade in food. The corporates have found another way in terms of investments in food items which has made the food market speculative, often leading to inflation. The result is unbearable for the poor. La Via Campesina is an international farmers’ organization that talks of New Localism in agriculture sector, giving the farmers’ their rights in food security instead of the intervention of multi-national corporations.
The Corporate Food System is another blow to the global food security. “Food economy” has made the corporates rule the trade in food items. In effect, the rich countries are ruling the roost and the poor nations already reeling under severe poverty and hunger, bear the brunt of the trade in food. The corporates have found another way in terms of investments in food items which has made the food market speculative, often leading to inflation. The result is unbearable for the poor. La Via Campesina is an international farmers’ organization that talks of New Localism in agriculture sector, giving the farmers’ their rights in food security instead of the intervention of multi-national corporations.
Financial Crisis and Food Crisis
The year 2007 and 2008 witnessed the biggest international financial crisis since 1929. The crisis of subprime mortgages in mid-2007 was one of its detonators, leading to historical stock exchange collapses worldwide, numerous financial bankruptcies, constant unprecedented interventions by central banks and government bailouts, and an unprecedented deterioration of the real economy.The financial and food crises are interlinked and are the result of the same policies of deregulation. With the crisis of high risk mortgages in 2007 investors began to seek safer places to invest, like agricultural products and oil. This led to the increase in the prices of food and agricultural supplies, contributing to the situation of food crisis and pushing 2008 prices upward.
The year 2007 and 2008 witnessed the biggest international financial crisis since 1929. The crisis of subprime mortgages in mid-2007 was one of its detonators, leading to historical stock exchange collapses worldwide, numerous financial bankruptcies, constant unprecedented interventions by central banks and government bailouts, and an unprecedented deterioration of the real economy.The financial and food crises are interlinked and are the result of the same policies of deregulation. With the crisis of high risk mortgages in 2007 investors began to seek safer places to invest, like agricultural products and oil. This led to the increase in the prices of food and agricultural supplies, contributing to the situation of food crisis and pushing 2008 prices upward.
Indian Scenario
India is one of the fastest growing economies of the world. The fast growth that India has achieved in the last several years has placed India as a key player in the global economy. In the year 1997, the then President Shri K. R. Narayan listed our adherence to a democratic system of governance and our launching of a green revolution in agriculture as the two most important achievements of the first 50 years of our tryst with the destiny. In the past concerted efforts have been made by India to achieve food security by increasing food grain production. Thanks to the Green Revolution India attained national food self-sufficiency 35 years ago through investment in technology, institutions and infrastructure, but still 35 per cent Indians remain food insecure. In India the low income of the majority of the population and high food prices prevent complete food security for all. Another lacuna of the Indian food security scenario has been the drawbacks in our Public Distribution System. Surging food grain prices and worsening global supplies are challenging the food security in India. The grain yield of Indian farmers is not going up and there is growing gap between demand and supply. After three decades of relatively comfortable production and availability of food grains, India once again seems to be sliding back to those humiliating days of 1960’s we used to live from ship to mouth on imported wheat obtained from the USA. Though we are still away from that point but steeps need to be taken in right direction before we enter into dire consequential situation.
India is one of the fastest growing economies of the world. The fast growth that India has achieved in the last several years has placed India as a key player in the global economy. In the year 1997, the then President Shri K. R. Narayan listed our adherence to a democratic system of governance and our launching of a green revolution in agriculture as the two most important achievements of the first 50 years of our tryst with the destiny. In the past concerted efforts have been made by India to achieve food security by increasing food grain production. Thanks to the Green Revolution India attained national food self-sufficiency 35 years ago through investment in technology, institutions and infrastructure, but still 35 per cent Indians remain food insecure. In India the low income of the majority of the population and high food prices prevent complete food security for all. Another lacuna of the Indian food security scenario has been the drawbacks in our Public Distribution System. Surging food grain prices and worsening global supplies are challenging the food security in India. The grain yield of Indian farmers is not going up and there is growing gap between demand and supply. After three decades of relatively comfortable production and availability of food grains, India once again seems to be sliding back to those humiliating days of 1960’s we used to live from ship to mouth on imported wheat obtained from the USA. Though we are still away from that point but steeps need to be taken in right direction before we enter into dire consequential situation.
Reasons for RisingFood Insecurity in India
The problem of food insecurity in India is not of general systemic failure that arises due to a supply shortage. It is in fact more a problem where certain sector (mainly the rural agrarian population and the urban informal sector) suffer from a shortage of food in general climate of increasing production. It can easily be observed that the main determinant of food insecurity in India today are the shrinking of agrarian and informal sector incomes and failures (both due to policy framing as well as implementation) of support led measures to combat poverty. The latter includes the poor results yielded by the targeted public distribution system in most regions of the country. In spite of the significant progress that India has made in food production and sufficiency over the last 50 years, most of the rural population is still had to deal with uncertainties of food security on a daily basis year after year and even generation after generation. In aggregate over one fifth of India’s population suffers from chronic hunger.
The late 1960’s saw the Green Revolution and the production of food grains started yielding high results. But since then the North and North West India were deemed by public policy to become the grannies of India and other states such as Karnataka, Tamil Nadu and Assam thrust into the role of cash crop production with a small amount of arable land being used for food grain cultivation. Agriculture with a regional thrust such as this has meant that over time there has developed an iniquitous pattern of food grain production. An often cited reason for an increase in hunger is the demand deflation that accompanies a lowering of agrarian incomes. It is true that in India the distribution of income within the population is more skewed that it was some decades ago. The rapid opening up of the agricultural sector to foreign competition has led to rise in rural poverty and a lowering of food security. The supply side issues to food security related to problems like drought and famines. These supply side cuts contribute to further exacerbate the already existing problems with dwindling agrarian incomes and a failing PDS by causing more hunger and poverty that arise due to shortage in production. Another reason for the fall in the availability of food is that our farm output is just not growing. Since the mid-1990s, the output has hovered around 415 million tonne. In the eight years between 1996 and 2004, when agriculture was growing at a low 2 per cent, there was, in fact, zero growth in food-grains. The neglect of government to made adequate investment in the country’s food storage system is another major reason for rising level of threat to the available food to the poor and hungry. The increase in population can be cited as another major reason for the rising food threat in India. India is the second populated state with more than billion living in it. It is projected that the population will increase to 1.3 billion in 2020, and would leave behind China in 2050 if the population growth remains unchanged. To feed the large population we require millions of tons of food grain. It is estimated that India would require 343.0 million metric tons of food grains in 2020 to feed the whole population. Environmental scientists believe that our climate is changing very fast. IPCC (Intergovernmental Panel for Climate Change) warned us that climate change could cause change in the pattern of rainfall and it will thus require special arrangements to make agriculture possible. Thus we are facing several new problems, of which the following are important:
The problem of food insecurity in India is not of general systemic failure that arises due to a supply shortage. It is in fact more a problem where certain sector (mainly the rural agrarian population and the urban informal sector) suffer from a shortage of food in general climate of increasing production. It can easily be observed that the main determinant of food insecurity in India today are the shrinking of agrarian and informal sector incomes and failures (both due to policy framing as well as implementation) of support led measures to combat poverty. The latter includes the poor results yielded by the targeted public distribution system in most regions of the country. In spite of the significant progress that India has made in food production and sufficiency over the last 50 years, most of the rural population is still had to deal with uncertainties of food security on a daily basis year after year and even generation after generation. In aggregate over one fifth of India’s population suffers from chronic hunger.
The late 1960’s saw the Green Revolution and the production of food grains started yielding high results. But since then the North and North West India were deemed by public policy to become the grannies of India and other states such as Karnataka, Tamil Nadu and Assam thrust into the role of cash crop production with a small amount of arable land being used for food grain cultivation. Agriculture with a regional thrust such as this has meant that over time there has developed an iniquitous pattern of food grain production. An often cited reason for an increase in hunger is the demand deflation that accompanies a lowering of agrarian incomes. It is true that in India the distribution of income within the population is more skewed that it was some decades ago. The rapid opening up of the agricultural sector to foreign competition has led to rise in rural poverty and a lowering of food security. The supply side issues to food security related to problems like drought and famines. These supply side cuts contribute to further exacerbate the already existing problems with dwindling agrarian incomes and a failing PDS by causing more hunger and poverty that arise due to shortage in production. Another reason for the fall in the availability of food is that our farm output is just not growing. Since the mid-1990s, the output has hovered around 415 million tonne. In the eight years between 1996 and 2004, when agriculture was growing at a low 2 per cent, there was, in fact, zero growth in food-grains. The neglect of government to made adequate investment in the country’s food storage system is another major reason for rising level of threat to the available food to the poor and hungry. The increase in population can be cited as another major reason for the rising food threat in India. India is the second populated state with more than billion living in it. It is projected that the population will increase to 1.3 billion in 2020, and would leave behind China in 2050 if the population growth remains unchanged. To feed the large population we require millions of tons of food grain. It is estimated that India would require 343.0 million metric tons of food grains in 2020 to feed the whole population. Environmental scientists believe that our climate is changing very fast. IPCC (Intergovernmental Panel for Climate Change) warned us that climate change could cause change in the pattern of rainfall and it will thus require special arrangements to make agriculture possible. Thus we are facing several new problems, of which the following are important:
- First, increasing population leads to increased demand for food and reduced per capita availability of arable land and irrigation water.
- Second, improved purchasing power and increased urbanisation lead to higher per capita food grain requirements due to an increased consumption of animal products.
- Fourth, there is increasing damage to the ecological foundations of agriculture, such as land, water, forests, biodiversity and the atmosphere and there are distinct possibilities for adverse changes in climate and sea level.
- Fifth, while dramatic new technological developments are taking place, particularly in the field of biotechnology, their environm-ental, food safety and social implications are yet to be fully understood.
- Finally, gross capital formation in agriculture is tending to decline in both public and private sectors during the present decade. The rate of growth in rural non-farm employment has been poor.
Although there has been a large
number involved in agriculture, still three is a food crisis in India. In India, agriculture got its dimension during the green revolution period. This introduced several new scientific methods, which increased food production several folds. But still, 26 per cent of Indians live below the poverty line and several hundred die due to malnutrition. This section of the article tries to enumerate the ways and measures to achieve food security for all. Food security depends not only on production but also on policies and institutions that translate production into food availability, access and utilization by the population. There has a clear cut increase in the food production but the productivity of food has been stalling. The current food and agriculture policies are suboptimal to revive a second round of agriculture revolution in India. Food security can be achieved by increasing production and a combination of policies that improves domestic, regional and international trade along with programs that improve the quantity and quality of food consumed by the population. Increasing the accessibility of food depends on food prices and the income of the population.
The present food crisis is due to lack of proper distribution and the trading system impeding free flow of food. Even increase in agricultural productivity also one of the solution for this problem. This should be based on integrating inputs and outputs-the supply of high yielding varieties of seeds, fertilizers, and irrigation, supported by credit alongside remunerative output prices. A second “green revolution” is essential to stimulate food production in many India. . It is crucial to ensure that farm and trade policies of developed countries do not artificially reduce the prices of their food grains. This makes it virtually impossible for farmers from developing countries to compete both in their own domestic markets, due to cheap food imports, and also in the international market.
Technology can also play a key role in reducing the cost of production of commodities. The role of research in increasing the productivity of crops is crucial. With functional genomics, proteomics and recombinant DNA technology we can address simultan-eously the quantitative, qualitative and sustainability aspects of crop production. The recent development in the science of agriculture we are able to manage biotic and abiotic stresses and genetically modified crops provide opportunities for avoiding damage by drought, high temperature, floods and sea level rise caused by global warming and climate change. Thus “food for all” has now become an achievable goal, thanks to the new genetics which has opened opportunities for precision breeding and toolbox-made crop varieties.
Achieving higher yield levels is a long term process through focused research programs that use resources effectively, in the short run effective social welfare programs could reduce the severity of hunger. The social welfare programs need to implement effectively either individually or jointly. Effective monitoring of the food distribution system including the food for work programs can aid in redressing the food insecurity.
number involved in agriculture, still three is a food crisis in India. In India, agriculture got its dimension during the green revolution period. This introduced several new scientific methods, which increased food production several folds. But still, 26 per cent of Indians live below the poverty line and several hundred die due to malnutrition. This section of the article tries to enumerate the ways and measures to achieve food security for all. Food security depends not only on production but also on policies and institutions that translate production into food availability, access and utilization by the population. There has a clear cut increase in the food production but the productivity of food has been stalling. The current food and agriculture policies are suboptimal to revive a second round of agriculture revolution in India. Food security can be achieved by increasing production and a combination of policies that improves domestic, regional and international trade along with programs that improve the quantity and quality of food consumed by the population. Increasing the accessibility of food depends on food prices and the income of the population.
The present food crisis is due to lack of proper distribution and the trading system impeding free flow of food. Even increase in agricultural productivity also one of the solution for this problem. This should be based on integrating inputs and outputs-the supply of high yielding varieties of seeds, fertilizers, and irrigation, supported by credit alongside remunerative output prices. A second “green revolution” is essential to stimulate food production in many India. . It is crucial to ensure that farm and trade policies of developed countries do not artificially reduce the prices of their food grains. This makes it virtually impossible for farmers from developing countries to compete both in their own domestic markets, due to cheap food imports, and also in the international market.
Technology can also play a key role in reducing the cost of production of commodities. The role of research in increasing the productivity of crops is crucial. With functional genomics, proteomics and recombinant DNA technology we can address simultan-eously the quantitative, qualitative and sustainability aspects of crop production. The recent development in the science of agriculture we are able to manage biotic and abiotic stresses and genetically modified crops provide opportunities for avoiding damage by drought, high temperature, floods and sea level rise caused by global warming and climate change. Thus “food for all” has now become an achievable goal, thanks to the new genetics which has opened opportunities for precision breeding and toolbox-made crop varieties.
Achieving higher yield levels is a long term process through focused research programs that use resources effectively, in the short run effective social welfare programs could reduce the severity of hunger. The social welfare programs need to implement effectively either individually or jointly. Effective monitoring of the food distribution system including the food for work programs can aid in redressing the food insecurity.
Trade can also play an important role in achieving national food security through appropriate policies that are designed to import food when we are in deficient and export when we harvest surplus. But achieving household food security will require higher levels of income for people who are unable to feed adequate quantity and quality of food.
To increase food production, area under agriculture should be increased. But rather than increasing, agricultural land is now being converted into industrial land. The recent example is of Singur, where thousand acre of agricultural land is converted into a car factory.
Urbanization is another problem. Agricultural lands are now being converted into housing plots and are converted into cities and towns. This has increased the pressure on agriculture. The need is to avoid such policy formulation which deliberately converts the agricultural land into commercial land. The poor and hungry should top the agenda of government policies. Solving the problem of food insecurity in India requires agro-ecological approaches. Blanket recommendations of technology and policy cannot be effective in solving localized food security problems. Thus there is a strong need to revisit the agricultural developmental strategies reorient them according to agro-ecological systems. The proposed National Food Security Bill can go a long way in addressing the problem of food security in India if formulated and implemented in its true contours. The proposed Food Security Act should combine the features of Food for Work and MGNREGA. The National Advisory Council (NAC) that is formulating the Bill has recommended that legal entitlements to subsidised food grains be extended to at least 75 per cent of the populations in rural areas and 50 per cent in urban areas. In the first phase, food entitlements should be extended to 85 per cent of the rural population and 40 per cent of the urban population. Full coverage of food entitlements should be extended to March 2014. The NAC has suggested that Priority (BPL) should have monthly entitlement of 35 kg of subsidised food grains at Re. 1 per kg for millets, Rs 2 per kg for wheat and Rs 3 per kg for rice.
To increase food production, area under agriculture should be increased. But rather than increasing, agricultural land is now being converted into industrial land. The recent example is of Singur, where thousand acre of agricultural land is converted into a car factory.
Urbanization is another problem. Agricultural lands are now being converted into housing plots and are converted into cities and towns. This has increased the pressure on agriculture. The need is to avoid such policy formulation which deliberately converts the agricultural land into commercial land. The poor and hungry should top the agenda of government policies. Solving the problem of food insecurity in India requires agro-ecological approaches. Blanket recommendations of technology and policy cannot be effective in solving localized food security problems. Thus there is a strong need to revisit the agricultural developmental strategies reorient them according to agro-ecological systems. The proposed National Food Security Bill can go a long way in addressing the problem of food security in India if formulated and implemented in its true contours. The proposed Food Security Act should combine the features of Food for Work and MGNREGA. The National Advisory Council (NAC) that is formulating the Bill has recommended that legal entitlements to subsidised food grains be extended to at least 75 per cent of the populations in rural areas and 50 per cent in urban areas. In the first phase, food entitlements should be extended to 85 per cent of the rural population and 40 per cent of the urban population. Full coverage of food entitlements should be extended to March 2014. The NAC has suggested that Priority (BPL) should have monthly entitlement of 35 kg of subsidised food grains at Re. 1 per kg for millets, Rs 2 per kg for wheat and Rs 3 per kg for rice.
The General (APL) households should have a monthly entitlement of 20 kg at a price not exceeding 50 per cent of the current minimum support price for millets, wheat and rice. The draft Bill as suggested by the NAC also contains a provision for setting up a National Food Commission to ensure implementation of the proposed bill and enforcement of penalties for violations.
It is here suggested that the demands of the Civil Society groups and NGO’s should be taken with the propose of seeking an all-inclusive, universal public distribution system, fool proof delivery system and decentralised production of grains, procurement and distribution that address rampant malnutrition in the country.
At the institutional level we need to promote the organisation of Community Grain and Water Banks by the Village Panchaytas with the Gram Sabhas providing social oversight. Simultane-ously opportunities need to be enlarged for on-farm and non-farm employment through the bio village model of human centred development and improve the productivity and profitability of small farmers. The world’s population is expected to reach to around 9 billion by 2050, global demand for food, feed and fibre will nearly double while, increasingly, crops may also be used for bioenergy and other industrial purposes. New and traditional demand for agricultural produce will thus put growing pressure on already scarce agricultural resources. And while agriculture will be forced to compete for land and water with sprawling urban settlements, it will also be required to serve on other major fronts: adapting to and contributing to the mitigation of climate change, helping preserve natural habitats, protecting endangered species and maintaining a high level of biodiversity.
We will need new technologies to grow more from less land, with fewer hands. Attaining long term food security will thus require the raising of incomes and making food affordable for the poor. This requires a multi-prolonged strategy. All the anti-poverty programs need to be made more transparent with better governance that minimizes leakages and benefits the poorest of the poor. Simultaneously the governments all over the world should take effective reforms to improve the agriculture by increasing the incentives, increasing the investment etc. so that agriculture production can be increased manifolds.
SEBI approved Single-window Clearance System for Approval to Change in Control of Management
Market regulator, Securities and Exchange Board of India (SEBI) on 3 August 2011 approved a single-window clearance system for market entities like stock brokers, for grant of prior approval for change in control of their management structures.
SEBI approved of the single-window system with an objective to expedite the process of granting prior approval (in case of change of control).
Market intermediaries such as stock brokers, merchant bankers, debenture trustees, registrar to an issue and share transfer agents, underwriters, depository participants, bankers, and credit rating agencies which have more than one registration with the Sebi, are to submit multiple applications for prior approval to change in control.
In case an applicant holds multiple registrations with the regulator, it shall make only one application to SEBI providing certain information about itself and the acquirer and its directors or partners. The information sought relates to whether any application was made in the past to Sebi seeking registration in any capacity which was not granted and its details, and what kind of action was initiated on the application and its current status.
The applicant is also required to furnish details on any investor complaint pending against it, details of litigation, payment of due fees to SEBI, and a guarantee that there will be no change in the Board of Directors of the firm, till the time prior approval is granted.
The applicants are required to inform all its existing investors and clients in order to enable them to take informed decision regarding their continuance or otherwise with the entity with new management.
In case, the applicant is registered stock broker and or depository participant, it shall also have to obtain approval or non-objection certificate from all the stock exchanges of which it is a member and submit a self attested copy of the same to SEBI.
SEBI’s notification noted that any prior approval granted under the single-window system shall be valid for a period of 180 days from the date of communication.
SEBI had in June 2011 waived the requirement for bankers, debenture trustees and credit rating agencies to seek prior approval from it to change their status and constitution, in a move aimed at doing away with unnecessary rules and red-tapism. However, market entities still need to seek Sebi's prior approval in case of change in control.
Damodaran Panel suggested Solution to All ATM-card Related Problems
The recommendations were made in 3 broad categories:
Home Loans:
The panel recommended that banks should not impose exorbitant penal rates towards foreclosure of home loans. A policy should be devised to ensure that customers are not denied of opportunity to enhance their economic welfare by making choices such as switching to other banks/financial entities to enjoy the benefits conferred by market competition. Measures to stop practices of discriminating between new and old customers with identical risk profiles on the basis of interest rate offers were to be initiated.
Banks should automatically provide annual account statement to home loan customers. All home loan customers should be permitted a switchover between fixed to floating or vice versa at least once during the loan tenure at an appropriate and reasonable fee.
The panel recommended that home loans backed by insurance products, in any eventuality, to be automatically settled by the insurance amount with minimum inconvenience to the nominees and heirs. The title deeds should be returned to the customers within 15 days after the loan closure and a suitable compensatory policy to compensate the customers for delayed return of title deeds to be put in place.
Banks should ensure through government subsidy or insurance that educational loans are properly priced. The Board Approved Policy for educational loans should indicate the minimum percentage in value or number of such loans which will be disbursed to students from rural areas.
Senior Citizens:
There should be prioritised service to senior citizens, physically handicapped persons by effective crowd/people management available at all branches. The panel suggested introduction of provision of the SMS alerts service about balance in the account at periodic intervals and about due dates for submission of important documents.
Automatic updation of the customers to the senior citizen category based on the date of birth would be introduced. Pensioner may be allowed to submit the annual life certificate at any of the (linked) branches and not necessarily at the home branch.
Rural Areas:
According to the panel banks should ensure proper currency exchange facilities and also the quality of notes in circulation in rural areas. Branches should be made functioning at a time convenient to the customers (agricultural labourers, workers and artisans).
Other Recommendations:
Exchange facilities for soiled/torn notes is a right of every citizen using such facilities and the RBI, through its agents is to ensure that no holder of sovereign currency note is turned away at a bank counter when the exchange facility is desired. All banks should implement the citizens' charter on exchange facilities of notes and coins adopted by the Department of Currency Management, RBI.
The panel suggested documentation of the bank's approach to develop Client First Attitude by its employees.
Instant blocking of lost ATM cards through SMS and immediate restoration of funds in case of non-dispensation of cash at an ATM were some of the other recommendations made by the Reserve Bank of India's committee on customer service.
For compensation to be paid by the banks for transaction deficiencies there should be in-built into the core banking system (CBS) software. As a measure of risk management, call centres as well as the online systems through Net banking should enable a customer to fix individual transaction limits for debit/credit card use, debar or fix limits for purchase of electronic or jewellery items.
The panel is in favour of standardisation of account opening form by the Indian Banks' Association (IBA).
Users (utilities, airlines, and railways) of electronic bank platforms for making collections may offer small discounts to their customers to favour electronic payments.
Reserve Bank of India launched Industrial Outlook Survey for the July-September 2011
The responsibility for conducting the research on behalf of the central bank was bestowed on Centre for Research Planning and Action (CERPA). The CERPA is to get in touch with several manufacturing companies during the quarter July-September for seeking their valuable feedback so that it can be included in the survey. The survey is to cover non-financial private and public limited companies with a good size/industry representation. Those manufacturing companies which are not approached by CERPA can also participate in the survey by downloading the survey schedule from RBI’s official website.
The assessment of business sentiments for the present quarter and expectations for the ensuing quarter are based on qualitative responses to 20 major parameters. The parameters include overall business and financial situations, demand indicators, price and employment expectations, profit margins etc.
The survey aimed to provide useful forward looking inputs for policymakers, analysts and businesses.
The RBI has been conducting the Industrial Outlook Survey on a quarterly basis since 1998.
CERPA
CERPA was established in 1972 and conducts social science research, provides consultancy on developmental issues, helps planners and policymakers and provides charitable services to the disadvantaged and poor sections of the country.
Thursday, August 4, 2011
Corporation Bank PO Solved Question Paper 2010
Socio- Economic Developments
1. Many people talk about the rollback of stimulus packages provided last year by the Govt of India to help certain sectors. If these stimulus packages are rolled back, this would mean that
(A) those who have availed these benefits would be required to return them to the Govt of India.
(B) no such incentive would be available henceforth to these sectors.
(C) all such benefits/incentives would be available to all the people across the country and will not be restricted to some selected few.
1) Only A
2) Only B
3) Only C
4) Only A & C
5) Only B & C
Ans: (2)
2. In order to develop infrastructure in the country at a faster pace, the Go'1 of India has fixed some targets." In order to achieve this target, at present, how many kilometres of highway is required to be constructed per day?
1) 5 km
2) 10 km
3) 15 km
4) 20 km
5) None of these
Ans: (4)
3. "South India will get K-G gas by 2012" was the news in a major financial newspaper. 'K-G' is the abbreviated name of which of the following?
1) Karnataka-Goa
2) Kaveri-Ganga
3) Krishna-Godavari
4) Karnataka-Gulf
5) None of these
Ans: (3)
4. Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs
(A) immediately after the Union Budget is presented in the Lok Sabha every year.
(B) when the RBI makes changes in its policy rates.
(C) when the Monetary and Credit Policy of the RBI is reviewed periodically.
1) Only A
2) Only B
3) Only C
4) Only B & C
5) All A, B & C
Ans: (4)
5. The Govt of India has decided to bring down the fiscal deficit from 6.6 per cent to the level of5.5 per cent of the GDP so that it can meet growth targets well in time. This target of 5.5 per cent is to be achieved by the end of
l) January 2011
2) March 2011
3) December 2010
4) January 2012
5) None of these
Ans: (2)
6. Some economists and financial experts are of the opinion that the Finance Minister of India has done 'a 'good job by allocating a fairly good share of budget to ensure that the benefits of the growth also reach the poor and unorganised sectors of the society. What amount in terms of percentage has been allocated to various schemes of the social sector in the Union Budget 2010-11?
1) 5%
2) 7.5%
3) 10%
4) 12.5%
5) None of these
Ans:
7. As a policy to boost the agricultural sector in the country, the Govt of India has taken several special measures over the years Which Of the following cannot be considered a measure/measures which will have a direct impact(s) on the agricultural sector?
A. Setting up of a National Food Processing Bank
B. Opening irrigation, sanitation and water projects for development under public-private participation
C. Efforts to bring down fiscal deficit to 5.5 percent level of GDP
1) Only A
2) Only B
3) Only C
4) Only A & B
5) All A, B & C
Ans: (3)
8. The Govt of India is planning to bring a Second Green Revolution. This will be launched specifically for which of the following parts of the country?
1) North East and Eastern Regions
2) Central India
3) Jammu & Kashmir
4) Tamil Nadu, Kerala & Andhra Pradesh
5) None of these
Ans: (2)
9. As we all know, the limit of exemption on personal income tax has been raised by Rs 10,000. Whenever a relief in direct taxes is given, the underlying motive is always to make
money available for which of the following purposes?
(A) Savings
(B) Investment for High returns
(C) Personal Consumption
1) Only A
2) Only B
3) Only A & C
4) Only B & C
5) None of these
Ans: (4)
10. As we know, a special scheme 'One Village One Project' is in vogue in some parts of our country and has proved a good incentive to boost the rural economy and the agricultural sector. Now the Govt has decided to develop 60,000 villages to produce which of the following single crops as a major crop?
1) Pulses or Oilseeds
2) Wheat or Bajra
3) Sugar or Jute
4) Sunflower or Rose flower
5) None of these
Ans: (1)
11. How much amount in cash is the Govt of India planning to infuse in public sector banks to strengthen their capital base this year?
1) Rs 10,000 crores
2) Rs 12,500 crores
3) Rs 14,000 crores
4) Rs 16,500 crores
5) None of these
Ans: (4)
12. As we all know, the rate of MAT has been increased from the present 15% to 18% with effect from Apr 2010. What is the full form of MAT?
1) Maximum Alternate Tax
2) Minimum Alternate Tax
3) Minimum Affordable Tax
4) Maximum Affordable Tax
5) None of these
Ans: (2)
13. One of the headlines in a major financial newspaper recently was "Is Spain the next Greece or Italy or Portugal?" What is the actual meaning of this headline because of which the author has been comparing Spain with the other three countries?
1) All these three countries have abandoned the membership of the European Union; Spain is also planning to do so.
2) All these three countries were the first to come out of recent global recession and that too within a short span of time. Spain is next in queue to declare itself free from the trouble.
3) These three nations are badly trapped in a situation where their economy is proceeding from bad to worse condition. Spain also appears to be in the same situation.
4) Greece, Italy and Portugal have signed some special agreements with US and are availing stimulus packages to promote their exports to US on some specific terms. Spain is also willing to do the same.
5) None of these
Ans: (3)
14. Many times we read in newspapers that several companies are adopting the FCCBs route to raise capital. What is the full form of FCCBs?
1) Foreign Currency Convertible Bonds
2) Foreign Convertible Credit Bonds
3) Financial Consortium & Credit Bureau
4) Future Credit & Currency Bureau
5) None of these
Ans: (1)
15. The Govt of India has asked all big companies and corporates to create a separate fund for their "Corporate Social Responsibility Activities". What is/are the purpose(s) of this directive issued by the Govt?
A. To ensure that companies spend some money on social activities
B. To bring transparency in matters of financial transactions and dealings by corporates.
C. To ensure that corporate entities do not get involved in non-commercial activities in the name of social activities as they are required to spend money only on the welfare of the employees and their families
1) Only A
2) Only B
3) Only C
4) All A, B & C
5) None of these
Ans: (1)
16. Which of-the following is an innovative mechanism adopted by banks to meet the targets fixed for lending to priority sector by the Banks?
1) Buying & Selling of Priority Sector Lending Certification
2) Sale of Kisan Vikas patra
3) Inter Bank Participation Certificates
4) Adoption of Core Banking Solution
5) None of these
Ans: (4)
17. The Reserve Bank of India (RBI) recently announced a hike in some policy rates and also indicated that there may be another change in near future. Which of the following is/are considered a policy rate(s) in the hands of the RBI?
A. Repo Rate
B. SLR
C. Inflation
1) Only A
2) Only B
3) Only C
4) Only A & B
5) All A, B & C
Ans: (4)
18. Zain, which was in news recently, is a company based in which of the following nations?
1) Kuwait
2) South Africa
3) UAE
4) China
5) None of these
Ans: (1)
19. Who amongst the following was awarded the prestigious "Moortidevi Award" recently for his literary works? (The awardee is a Minister in the Union Cabinet.)
1) Veerappa Moily
2) Pranab Mukherjee
3) P Chidambaram
4) Kapil Sibal
5) None of these
Ans: (1)
20. The Indian Ministry of Agriculture has decided that despite good stocks of wheat and rice, India will not export the excess stocks. Which of the following may be the reason(s) owing. to which the Ministry has taken this decision?
(A) Indian wheat and rice are not in much demand in foreign countries. Hence very few are takers for the same.
(B) The National Food Security Bill has a provision to provide 25 kg of wheat or rice to the families living below poverty line. A huge stock of gains will be needed for the same in near future.
(C) Since most countries are still to recover from the global recession, a formula is being worked out where imports and exports will be compensated simply by exchange of commodities available with the countries. India is planning to use its food grain stocks for the same.
1) Only A
2) Only B
3) Only C
4) All A, B & C
5) None of these
Ans: (2)
21. As per the reports published in various newspapers, RBI has asked banks to make a plan to provide banking services to all villages having a population of2000. This directive issued by the RBI will fall in which of the following categories?
1) Plan for Financial Inclusion
2) Efforts to meet the targets of Priority Sector Lending
3) Extension of Relief Packages to the Farmers.
4) Extension of Internet and Branchless Banking
5) None of these
Ans: (1)
22. Which of the following is NOT a bank or finance company?
1) Barclays
2) BNP Paribas
3) Lufthansa
4) HSBC
5) All are banks/finance companies.
Ans: (3)
23. The Indian Railways is in the process of purchasing Bullet Train Technology from which of the following nations?
1) France
2) China
3) Japan
4) Russia
5) Spain
Ans: (3)
24. Some. State Govts have started a project "Save Snow Leopards". Snow Leopards are found mainly in
1) Jarnmu & Kashmir
2) Rajasthan
3) Kerala
4) Punjab
5) Tamil Nadu
Ans: (1)
25. India recently signed an agreement for an 'Action Plan to Advance Security Cooperation' with which of the following nations?
1) China
2) Bangladesh
3) Pakistan
4) Nepal
5) Japan
Ans: (5)
26. Sanya Richards, who was named as the IMF World Athlete 'of 2009, represents which of the following countries?
1) Jamaica
2) Kenya
3) France
4) Britain
5) USA
Ans: (1)
27. Who amongst the following was adjudged the European Footballer of the Year 2009?
1) Roberto Baggio
2) Edger Davids
3) Xavi Hernandez
4) Cristiano Ronaldo
5) Lionel Messi
Ans: (4)
28. The latest nuclear power reactor of India recently attained criticality at Rawatbhata, Rawatbhata is a place in
1) Uttar Pradesh
2) Madhya Pradesh
3) Uttarakhand
4) Orissa
5) Rajasthan
Ans: (5)
29. Who amongst the following has recently received the Highest Civilian Honour of France?
1) Kareena Kapoor
2) AR Rahman
3) Javed Akhtar
4) Lata Mangeshkar
5) None of these
Ans: (4)
30. Who amongst the following represented India at the 15th United Nations Climate Change Conference 2009 held in Copenhagen?
1) Smt Sonia Gandhi
2) Smt Pratibha Patil
3) Dr Manmohan Singh
4) Smt Meira Kumar
5) None of these
Ans: (3)
31. Three Indian sportsmen, C Raju Srither, IR Sanam and Ratan Singh, recently went to Indonesia and won Gold Medals in which. of the following events?
1) Weightlifting
2) Rifle Shooting
3) Swimming
4) Golf
5) Archery
Ans: (5)
32. A two-day meeting of the South Asian Association for Regional Cooperation (SAARC) was organised recently in
1) Kathmandu
2) Islamabad
3) Kabul
4) Dhaka
5) None of these
Ans: (5)
33. By nominating its Ambassador to which of the following countries after a gap of five years has the USA established its diplomatic relation with it?
1) Syria
2) Iran
3) Iraq
4) China
5) None of these
Ans: (1)
34. Which of the following organisations/agencies is providing a US$ 850-million loan to India for the development of its infrastructure and khadi industry?
1) World Bank
2) European Union Finance Corporation
3) Asian Development Bank
4) Govt of South Africa
5) None of these
Ans: (1)
35. Goodluck Jonathan, the whose name was in the news recently, is from which of the following countries?
1) Kenya
2) Uganda
3) Nigeria
4) Sudan
5) None of these
Ans: (3)
36. The Census in India is done after a gap of every.
1) 5 years
2) 10years
3) 12 years
4) 15 years
5) None of these
Ans: (2)
37. Pankaj Advani won which of the following titles in the year2009?
1) Asian Games Gold Medal
2) Asian Billiards Championship
3) WSA Challenge Tour
4) World Professional Billiards Championship
5) None of these
Ans: (4)
38. Which of the following awards is given for excellence in the field of sports?
1) Kalinga Award
2) Golden Pen Award
3) Arjuna Award
4) Bharat Ratna
5) None of these
Ans: (3)
39. Which of the following states started "Apni Mandis" project in all districts of the state to ensure the supply of vegetables and fruits at fair prices?
1) Gujarat
2) Uttar Pradesh
3) Haryana
4) Delhi
5) None of these
Ans: (5)
40. Which of the following terms is NOT used in Economics?
1) Balance of Trade
2) Centrifugal force
3) Break even
4) Fiscal Deficit
5) Capital Account
Ans: (2)
41. Between the Assassinations is a book written by
1) Chetan Bhagat
2) Kiran Desai
3) Shobhaa De
4) Vikram Seth
5) Aravind Adiga
Ans: (5)
42. Which of the following prizes/awards is NOT given for Excellence in the field of Literature?
1) Dronacharya Award
2) Aga Khan Prize for Fiction
3) Commonwealth Award
4) Nobel Prize
5) Man Booker Prize
Ans: (1)
43. Which of the following terms is NOT used in the game of Hockey?
1) Centre
2) Downswing
3) Drop pass
4) Goal line
5) Blue line
Ans: (5)
44. Invisible is a novel written by
1) Vikram Seth
2) Chetan Bhagat
3) Anita Desai
4) Meghnad Desai
5) Paul Auster
Ans: (5)
45. Russia recently agreed to resume import of natural gas from which of the following countries after a gap of about a month following a dispute over prices of the same?
1) Iran
2) Turkmenistan
3) China
4) Kazakhstan
5) N Korea
Ans: (2)
46. India recently signed an agreement for cooperation in the field of nuclear power for civil purposes. This agreement is free from any restrictions on India. India signed this agreement with
1) France
2) Germany
3) USA
4) Canada
5) Russia
Ans: (5)
47. The Indira Gandhi Peace Prize 2009 was given to the President of
1) Fiji
2) Bhutan
3) Nepal
4) Bangladesh
5) None of these
Ans: (4)
48. The Govt of India recently launched the Jawaharlal Nehru National Solar Mission. This mission is one of the key missions on India's National Action Plan on
1) Second Green Revolution
2) Climate Change
3) Recharging of Water bodies
4) Electricity to all
5) None of these
Ans: (2)
49. Voting in local bodies elections is compulsory in which one of the following states?
1) Delhi
2) Maharashtra
3) Kerala
4) Gujarat
5) None of these
Ans: (4)
50. India's exports of which of the following to USA has been growing at a fast pace despite the global slowdown and recession?
1) Handicrafts and Carpets
2) Textiles and Clothing
3) Horticultural products
4) Foodgrains
5) Services
Ans: (2)
Wednesday, August 3, 2011
Highlights of Economic Outlook 2011-12
The Chairman Economic Advisory Council to the Prime Minister, Dr. C. Rangarajan released the ‘Economic Outlook 2011-12’.
Following are the highlights:
Economy to grow at 8.2% in 2011-12
Agriculture grew at 6.6% in 2010-11. Projected to grow at 3.0% in 2011-12
Industry grew at 7.9% in 2010-11. Projected to grow at 7.1% in 2011-12
Services grew at 9.4% in 2009-10. Projected to grow at 10.0% in 2011-12
The projected growth rate of 8.2%, though lower than the previous year, must be treated as high and respectable, given the current world situation.
Global economic and financial situation unlikely to improve
To keep the economy growing at 9% it is important to increase fixed investment rate
Investment rate projected at 36.4% in 2010-11 and 36.7% in 2011-12
Domestic savings rate as ratio of GDP projected at 33.8% in 2010-11 & 34.0% in 2011-12
The 2011 monsoon projected to be in the range of 90 to 96 per cent of Long Period Average. As a result farm sector output expected to grow at 3 %
The revised series (2004/05) for Index of Industrial Production shows an output growth pattern that is fairly different from what the old series (1993/94) had indicated.
The output growth was grossly underestimated by the old series in 2007-08 and overestimated in 2008-09 and 2009-10.
The impact of the global crisis on industrial output was much stronger than had been indicated by the old series
In 2010-11 the output growth was higher at 8.2% against 7.8% indicated by the old series
Current Account deficit is $44.3 billion (2.6% of GDP) in 2010-11 and projected at $54.0 billion (2.7% of GDP) in 2011-12
Merchandise trade deficit is $ 130.5 billion or 7.59% of the GDP in 2010-11 and projected at $154.0 billion or 7.7% of GDP in 2011-12
Invisibles trade surplus is $ 86.2 billion or 5.0% of the GDP in 2010-11 and projected at $100.0 billion or 5.0% in 2011-12
Capital flows at $61.9 billion in 2010-11 and projected at $72.0 billion in 2011-12
FDI inflows projected at $35 billion in 2011/12 against the level of $23.4 billion in 2010-11
FII inflows projected to be $14 billion which is less than half that of the last year i.e $30.3 billion
Accretion to reserves was $15.2 billion in 2010-11. Projected at $18.0 billion in 2011-12
Inflation rate projected at 6.5 % in March 2012.
The headline inflation rate would continue to be at 9 per cent in the month of July-October 2011. There will be some relief starting from November and will decline to 6.5% in March 2012.
Available food stocks to be liberally released
Important role for fiscal policy to contain demand pressure. Need to ensure that fiscal deficit does not exceed the budgeted level
RBI will have to continue to follow a tight monetary policy till inflation shows definite signs of decline
Achieving fiscal targets set in 2011/12 budget estimates to present a significant challenge
For 2011/12, budget estimates of fiscal deficit for Centre - 4.7%; States- 2.1% and consolidated fiscal deficit including off budget liabilities - 6.8%
Government to redouble efforts to collect larger revenue, resolve cases to reduce tax arrears
Minimize avoidable expenditures and initiate measures to increase revenues
Resolve issues with states and introduce Goods and Services Tax
Reforms in power sector distribution system to limit the liabilities of state governments
Some key issues of concern:
Convergence of growth rates of states
An analysis of the recent data indicates that while most of the lower income states have shown stronger growth rates, several of the higher income states have also shown an increase
Current Account Deficit
Given our growth needs, a moderate trade deficit and CAD are inevitable. To finance the CAD, foreign investment flows need to be promoted. However CAD to be contained below 2.5% of the GDP
Power Sector
The India growth story inextricably linked to the power sector
Immediate policy interventions required for ensuring coal availability for the power plants, land acquisition and environmental clearances and revision of power tariff by states to reduce high AT&C losses
Increased focus on non conventional energy
Food Security
Need to grant the poor a legal entitlement to food through an appropriate legislative enactment
Availability of grain to be kept in mind while deciding legal entitlements
Reforms in PDS important to strengthen distribution. Computerization, introduction of smart cards and using unique identification numbers for the beneficiaries are important interventions
Tuesday, August 2, 2011
SOCIO ECONOMIC DEVELOPMENTS MCQs
1. Production function expresses—
(A) Technological relationship between physical inputs and output
(B) Financial relationship between physical inputs and output
(C) Relationship between finance and technology
(D) Relationship between factors of production
Ans. (A)
2. Which one of the following is not a characteristic of the population of a developed country?
(A) Low birthrate and low death rate
(B) High birthrate and high death rate
(C) High proportion of urban population
(D) Low growth rate of population
Ans. (B)
3. Which Plan gave emphasis on removal of poverty for the first time?
(A) Fourth
(B) Fifth
(C) Sixth
(D) Seventy
Ans. (C)
4. “Interest is a reward for parting with liquidity” is according to—
(A) Keynes
(B) Marshall
(C) Haberler
(D) Ohlin
Ans. (A)
5. Extension or contraction of quantity demanded of a commodity is a result of a change in the—
(A) Unit price of the commodity
(B) Income of the consumer
(C) Tastes of the consumer
(D) Climate of the region
Ans. (A)
6. Cross elasticity of demand between petrol and car is—
(A) Infinite
(B) Positive
(C) Zero
(D) Negative
Ans. (D)
7. The period of the Eleventh Five-Year Plan is—
(A) 2005 to 2010
(B) 2006 to 201l
(C) 2007 to 2012
(D) 2008 to 2013
Ans. (C)
8. For price discrimination to be successful, the elasticity of demand for the product in the two markets should be—
(A) Same
(B) Different
(C) Constant
(D) Zero
Ans. (B)
9. FERA in India had been replaced by—
(A) FEPA
(B) FEMA
(C) FENA
(D) FETA
Ans. (B)
10. Finance Commission is constituted—
(A) Every year
(B) Once in four years
(C) Once in two years
(D) Once in five years
Ans. (D)
11. National Income Estimates in India are prepared by—
(A) Central Statistical Organization
(B) National Development Council
(C) Ministry of Finance
(D) Planning Commission
Ans. (A)
12. The term ‘Mixed Economy’ denotes—
(A) Existence of both rural and urban sectors
(B) Existence of both private and public sectors
(C) Existence of both heavy and small industries
(D) Existence of both developed and under-developed sectors
Ans. (B)
13. The Law of Demand expresses—
(A) Effect of change in price of a commodity on its demand
(B) Effect of change in demand of a commodity on its price
(C) Effect of change in demand of a commodity over the supply of its substitute
(D) None of the above
Ans. (A)
14. Which one of the following is not a plantation crop?
(A) Tea
(C) Rubber
(B) Coffee
(D) Sugarcane
Ans. (D)
15. Imputed gross rent of owner-occupied buildings is a part of—
(A) Capital formation
(B) Final consumption
(C) Intermediate consumption
(D) Consumer durable
Ans. (A)
ECONOMY MCQs
1. Which of the following are the measures of Integrated Slum Development Programme adopted in India in the 11 Five Year Plan?
1. Creating and updating database on slums.
2. Using land as a resources for housing and shelter development for slum dwellers.
3. Asking slum dwellers to apply for house loan from government.
4. Granting tenure security to slum dwellers.
Select the correct answer using the code given below
(a)1,2 and 3
(b)1 and 2
(c)2 and 4
(d)1,2 and 4
Ans. (d)
2. Demographic divide refers to a rise in population
(a) between the age group of I to 14 years
(b) between the age group of 15 to 64 years
(c) between the age group of 65 to 74 years
(d) above 74 years
Ans. (b)
3. The total public sector outlay in the Eleventh Five Year Plan (Central, State and Union Territories) is estimated at about:
(a)Rs. 30 lakh crore
(b) Rs. 36 lakh crore
(c)Rs. 40 lakh crore
(d) Rs. 46 lakh crore
Ans. (b)
4. Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro,Small and Medium Enterprises Development Act, 2006?
(a) More than Rs. 10 lakh and less than Rs. 2 crore
(b) More than Rs. 2 crore and less than Rs. 5 crore
(c) More than Rs. 5 crore and less than Rs. 10 crore
(d) More than Rs. 10 crore
Ans. (d)
5. Which one of the following statements regarding Aam Admi Bima Yojana (AABY) is not correct?
(a) It was launched in the year 2007
(b) The contribution of the Central Government and State Governments in the premium is in the ratio of 75 : 25
(c) The scheme is applicable to rural landless households
(d) It provides insurance against natural death as well as accidental death
Ans. (b)
6. Balance on capital account refers to the
(a) nation’s net exports of goods, and services
(b) nation’s net exports of financial claims
(c) nation’s net exports of international official reserve assets
(d) nation’s sum of net exports of goods, services and financial claims
Ans. (a)
7.With which one of the following does the Prebisch-Singer hypothesis deal?
(a) Terms of trade of less developed countries
(b) Terms of trade of developed countries
(c) Balance of payments of less developed countries
(d) Balance of payments of developed countries
Ans. (c)
8. The effect of trade with different production possibilities curves and identical indifference curves is to make a country.
(a) more specialized in consumption and less specialized in production
(b) more specialized in production and less specialized in consumption
(c) less specialized both in consumption and in production
(d) more specialized both in consumption and in production
Ans.(d)
9. consider the following statements:
When factor intensity reversal occurs
1. Heckscher-Ohlin trade model fads.
2. factor price equalization theorem fails.
3. elasticity of substitution of one factor for the other is much higher in the production of a commodity.
Which of the statements given above is/are correct?
(a)1 only
(b) 2 only
(c)1 and3
(d) 1,2 and 3
Ans. (d)
10. Under which one of the following conditions is the gain from international trade maximised?
(a) Marginal rate of transformation (MRT) in production is equal to the marginal rate of substitution (MRS) in consumption
(b) MRT in production is greater than MRS in consumption
(c) MRT in production is less than MRS in consumption
(d) MRT in production and MRS in consumption are equal to international price ratio
Ans. (a)
11. The Lorenz curve shows the relationship between
(a) asset creation and income generation
(b) population groups and their respective income shares
(c) unemployment and inflation
(d) wages, labour hours and leisure
Ans. (b)
12. Which of the following are the characteristics of the Traditional Society in Rostow’s Stage theory?
1. Limited production function.
2. No government intervention.
3. Pre-Newtonian science and technology.
4. Dominance of agricultural activity.
Select the correct answer using the code given below
(a) 1,2and4
(b) 1,2and3
(c) 1,3and4
(d) 2,3 ánd4
Ans. (c)
13. Which one of the following is the difference between value at
market prices and value at factor cost for a national aggregate?
(a) Value of consumption of fixed capital
(b) Value of indirect taxes net of subsidies
(c) Value of net factor income earned abroad
(d) Value of subsidies net of indirect taxes
Ans. (b)
14. Marshall-Lerner condition states that the foreign exchange market would be stable if the sum of the price elasticities of the demand for imports and the demand for exports is:
(a)greater than one
(b) less than one
(c)equal to one
(d) equal to zero
Ans. (c)
15. According to Life Cycle Hypothesis, consumption is related to which one of the following?
(a) Current income
(b) Past peak level income
(c) Life time expected income
(d) Price expectations over one’s life time
Ans. (c)
16. Keynes states that the aggregate demand function is:
(a) an increasing function of the level of employment
(b) a decreasing function of the level of employment
(c) a constant function of the level of employment
(d) not related to the level of employment
Ans. (a)
17. Which of the following are the limitations of national income estimation in India?
1. Output of non-monetized sector. -
2. Non availability of data about income of small producers or household enterprises.
3. Unreported legal income.
4. Inflation.
Select the correct answer using the code given below
(a) 1,2,3and4
(b) 1,2and3
(c) 2 and 3
(d) 1 and 4
Ans. (b)
18. Which one of The following is shown by the Phillips Curve?
(a) Inverse relationship between real and nominal wages
(b) Inverse relationship between the rate of inflation and rate of unemployment
(c) Positive relationship between nominal wages and the rate of employment -
(d) Positive relationship between rate of inflation and nominal wages
Ans. (b)
19. If a producer pays the price for each of the inputs that it uses, equal to its value of marginal product, then which one of the following does it earn?
(a) Positive supernormal profit
(b) Zero supernormal profit
(c) Negative supernormal profit
(d) Monopoly profit
Ans. (b)
20. The costs of factors of production, supplied by the entrepreneur himself are known as
(a) implicit costs
(b) explicit costs
(c) fixed costs
(d) variable costs
Ans. (b)
21.Which one of the following taxes/cess is levied by States in India?
(a) Tax on motor vehicles
(c) Educational cess
(b) Tax on hotels
(d) Tax on wealth
Ans. (a)
22. Which one of the following is capital receipt in government budget?
(a) Interest receipts o loans given by the Government to other parties
(b) Dividends and profits from public sector undertakings
(c) Borrowing of the Government from public
(d) Property tax receipts
Ans. (a)
23. Which of the following are the characteristics of progressive tax?
I. Marginal tax rate should be increasing.
2. Marginal tax rate should be more than average tax rate.
3. Gini coefficient for the post-tax distribution of income should be less than that of pre-tax distribution.
4. Tax amount should be lump sum in nature.
Select the correct answer using the code given below
(a) 1,2,3and4
(b) 1,2and3
(c) 1 and 4
(d)2 and 3
Ans. (a)
24. Consider the following statements regarding argument for free trade:
1. Free trade leads to maximization of output, income and employment.
2. Free trade prevents monopoly.
3. Free trade protects domestic industries.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2
(c) 2and3
(d) 1,2and 3
Ans. (b)
GENERAL AWARENESS MCQs
1. Which of the following pairs of countries are the signatories of a Gas pipeline deal christened as Peace Pipeline
1) Iran - Iraq
2) Iraq - UAE
3) Kuwait - Iran
4) Pakistan - Iran
5) None of these
2. 'Mardeka Cup' is associated with game of
1) Hockey
2) Golf
3) Football
4) Badminton
5) None of these
3. Which of the following state govt decided to have a 'Mahila Court' in every district of the state ?
1) TN
2) AP
3) Karnataka
4) Delhi
5) None of these
4. Who amongst the following is the author of the book 'Faith and Compassion' ?
1) Arun Gandhi
2) Kuldeep Nayyar
3) Amit Chaudhury
4) Navin Chawla
5) None of these
5. Which of the following countries has developed 'sajjil-2' missiles, which were test fired recently?
1) Pakistan
2) Iran
3) N. Korea
4) India
5) None of these
6. The letter 'D' stands for which of the following in the abbreviated name OECD-Organisation of Economic Cooperation and _______
1) Defence
2) Direction
3) Dominance
4) Development
5) None of these
7. First share market in India was established in
1) Delhi
2) Mumbai
3) Kolkata
4) Chennai
5) None of these
8. The difference between Gross Domestic Product and Net Domestic Product is
1) Govt. Revenue
2) Net Indirect Tax (Indirect Tax Subsidy)
3) Consumption of fixed Capital
4) Net Capital formation
5) None of these
9. IMF is the result of
1) Hawana Conference
2) Rome Conference
3) Brettonwood Conference
4) Geneva Conference
5) None
10. Shankarlal Guru Committee was associated with
1) Agricultural Marketing
2) Agriculture Production
3) Public Distribution System
4) Industries Development
5) None of these
11. Which sector contributes the maximum share in National Income of India
1) Primary
2) Secondary
3) Tertiary
4) All of the above
5) None of these
12. National Commission for Back-ward classes was established in
1) 1994
2) 1993
3) 1995
4) 1999
5) None of these
13. The number of Zonal Councils in India is
1) Five
2) Four
3) Seven
4) Eight
5) None of these
14. The Ozone Layer thins down as a result of a chain chemical reaction that separates from the layer.
1) Oxygne
2) Chlorine
3) Nitrogen
4) Hydrogen
5) None of these
15. Fruit most suitable for making jelly is
1) Papaya
2) Karunda
3) Mango
4) Banana
5) None of these
16. Who among the following is known as the guardian of the Public Purse in India ?
1) The Comptroller and Auditor General of India
2) The President
3) The Minister of Finance
4) The Parliament
5) None of these
17. Which one of the following is a water soluble vitamin ?
1) Vitamin A
2) Vitamin C
3) Vitamin D
4) Vitamin K
5) None of these
18. Which contries are separated by Mac Mohan Line ?
1) India & Pak
2) China and Tibet
3) India and China
4) India & Bangladesh
5) None of these
19. The abbreviated term CCIT recently came into news. What does it stand for?
1) Comprehensive Convention on International Terrorism
2) Comprehensive Commitment on India-Turkey Cooperation
3) Comprehensive Cooperation on Fighting International Terrorism
4) Comprehensive Convention on International Tourism
5) None of the above
20. Which of the following Indian states has recently approved its First Forest Policy?
1) Rajasthan
2) Andhra Pradesh
3) Karnataka
4) Himachal Pradesh
5) None
21. Committee on decontrolling the prices of petrol and diesel was headed by
1) Kelkar Vijai
2) Kirit S Parekh
3) Abhijit Sen
4) C. Rangarajan
5) None of these
22. Trinity Coal Group of US is being purchased by
1) Essar Group
2) Tata Group
3) Jindal Group
4) Laxmi Mittal Group
5) None
23. Which Indian filmstars was recently conferred Honorary Doctorate by Bedfordshire University (UK)
1) Amitabh Bachchan
2) Shah Rukh Khan
3) Om Puri
4) Amir Khan
5) None of these
24. Which one of the following is a millitary alliance?
1) ASEAN
2) SAARC
3) NATO
4) NAFTA
5) None of these
25. World Development Report is an annual publication of
1) UNICEF
2) UNDP
3) WTO
4) World Bank
5) None of these
26. The maximum duration of Zero Hour in Lok Sabha is
1) 30 min.
2) one hour
3) two hours
4) unspecified
5) None of these
27. What is the name of Judicial organ of UNO?
1) Supreme Court
2) Court of International Justice
3) Judicial forum
4) International Court of Justice
5) None of these
28. The battle of Mahabharata is believed to have been fought at Kurukshetra for
1) 14 days
2) 16 days
3) 18 days
4) 20 days
5) None of these
29. The heavist body of our Solar system is
1) Sun
2) Uranus
3) Jupiter
4) Saturn
5) None
30. 'The Lost Child' was written by
1) Nirad C chowdhury
2) Mulk Raj Anand
3) Khushwant Singh
4) Anne Besant
5) None of these
31. The Headquarters of UNESCO is at
1) Rome
2) Geneva
3) Paris
4) New York
5) None of these
32. If you see a big hoarding at a prominent public place, the punch line of which says "We all were born Free"; 'We all have Equal Rights', in all probability the hoarding is put up by
1) National Commission for Farmers
2) National Human Rights Commission
3) Directorate of Income Tax
4) Ministry of Foreign Affairs
5) None of these
33. Now a days we frequently read news items about 'Derivatives' as used in the world of finance and money market. Which of the following statement(s) correctly describes what a derivative is and how it affects money/finance markets?
A) Derivatives enable indivi-duals and companies to insure themselves against financial risk
B) derivatives are like fixed deposits in a bank and are the safest way to invest one's idle money lying in a bank
C) Derivatives are the financial instruments which were used in India even during the British Raj.
1) only C
2) only B
3) only A
4) All A,B,C
5) None
34. Many a time we read in the newspapers that RBI has changed or revised a particular ratio/rate by a few basis points. What is basis point?
1) Ten per cent of one hundredth point
2) one hundredth of 1%
3) one hundredth of 10%
4) Ten per cent of 1000
5) None of these
35. Which of the following issues cannot come under the purview of the functioning of the Human Rights Commission of a country?
1) Racial Discrimination
2) Treatment to Prisoners of War
3) Human Trafficking
4) Child Abuse
5) Climate Migration
36. The market in which long term securities such as stocks and bonds are bought and sold is commonly knows as
1) Commodities exchange
2) Capital market
3) Bull Market
4) Bullion Market
5) None
Answers:
1) 4 2) 3 3) 2 4) 4 5) 2 6) 4 7) 2 8) 4 9) 3 10) 1
11) 3 12) 2 13) 1 14) 2 15) 3 16) 1 17) 2 18) 3 19) 1 20) 1
21) 2 22) 2 23) 2 24) 3 25) 4 26) 2 27) 4 28) 3 29) 1 30) 2
31) 3 32) 2 33) 2 34) 2 35) 5 36) 2
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