Indian Economy MCQs

Notes:
Pair 1 is correctly matched: PMEGP is a credit-linked subsidy scheme implemented by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MoMSME) to generate self-employment via micro-enterprises. Pair 2 is incorrectly matched: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship skill certification scheme implemented by the Ministry of Skill Development and Entrepreneurship (MSDE), not the Ministry of Labour and Employment. Pair 3 is correctly matched: DAY-NULM aims to reduce poverty and vulnerability of urban poor households by enabling self-employment and skilled wage employment opportunities, managed by the Ministry of Housing and Urban Affairs.

Notes:
India’s first Export Promotion Industrial Park (EPIP) was opened in Jaipur. The EPIP in Rajasthan at Sitapura is complete. The park is the largest Export-Park in Northern India.
The EPIP scheme was implemented to create infrastructure for exports in specific locations. The parks have modern infrastructure to boost the export of commodities and services. Units in the EPIP must commit to exporting at least 33% of their production.

Notes:
The Gender Development Index was introduced by UNDP in 1995. It assesses gender gaps in health (life expectancy at birth), education (years of schooling), and income (estimated earned income). GDI uses the ratio of female to male Human Development Index values. A value of 1 indicates gender parity. It was released with the Gender Empowerment Measure. The Gender Inequality Index was introduced in 2010 and includes reproductive health and labour market participation.

Notes:
Reserve Tranche Position (RTP) refers to a member country’s access to its quota in the International Monetary Fund (IMF). Each member can withdraw a portion of its quota without stringent conditions, known as the reserve tranche. This mechanism allows countries to access funds quickly during balance of payments crises. The RTP is crucial for maintaining liquidity in the global economy.

Notes:
Indicative planning, which generally puts forward some broad principles and guidelines to achieve some specific goals. Indicative planning is flexible. It is peculiar to mixed economy and both the public and private sector co exist.
Comprehensive or imperative planning is used by socialist countries and each and every aspect of planning is controlled by the State. Perspective planning refers to long term planning for a period of 15, 20, 25 yrs, however objective of perspective planning can be achieved by breaking the period in 5‐7 yr plans.

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In banking terminology, remittance means transfer of fund one place to another. When money transferred from one country to another, this is called Foreign Remittance.

Notes:
Liquidity order is M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.

Notes:
Taxation plays an important role in regional development and fulfilling government expenditure. Tax incentives such as tax holiday for setting up industries in backward regions, which induces business firms to set up industries in such regions, Tax revenue collected by government is also utilized for development of infrastructure in backward regions.

Notes:
In India, poverty status is identified using consumption expenditure, not caste, wages, or guaranteed days of work. A person is considered below the poverty line when his or her per capita consumption expenditure falls below the prescribed threshold used for poverty measurement. This method is based on household survey data and is used to estimate poverty in both rural and urban areas. Therefore, the correct answer is the option referring to per capita consumption expenditure below a set threshold.

Notes:
Amit Mitra was conferred the Order of the Rising Sun by the Government of Japan for his contribution to strengthening India-Japan relations. The honour was announced on April 29, 2006.