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Economic Survey 2016-17 for IAS Prelims: Two Analytical Narratives on States’ Development

Feb 28, 2017 15:53 IST

    Economic Survey on demonetisation part 4The IAS aspirants must do practice of IAS questions based on the Economic Survey provided in this article. Such Indian Economy questions based on the Economic Survey are quite important in terms of IAS Prelims Exam 2017 and it will help IAS aspirants to gain momentum during the preparation of IAS Prelims Exam.

    Economic Survey 2016-17 for IAS Prelims- Labour Migration in India III

    1. The concept of a 'Special Category' state was first introduced in 1969 in India. Consider the following statements regarding the 'Special Category' states in India:
    I. The 'Special Category' states sought to provide disadvantaged states (those, due to several factors, were unable to generate enough resources for development) with preferential treatment in the form of central assistance and tax breaks.
    II. The states of Assam, Nagaland Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Uttarakhand and Jammu & Kashmir were given special status.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. I and II
    c. II and III
    d. All of the above

    Answer: d

    Explanation:

    The states special advantages are Gujarat, Maharashtra, Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh—have indeed grown faster and advanced more rapidly economically. The concept of a 'Special Category' state was first introduced in 1969 in India. The 'Special Category' states sought to provide disadvantaged states (those, due to several factors, were unable to generate enough resources for development) with preferential treatment in the form of central assistance and tax breaks. The states of Assam, Nagaland Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Uttarakhand and Jammu & Kashmir were given special status.

    Current Affairs Quizzes for IAS Prelims Exam 2017- February Week 3

    2. Which of the following factors determines the grant for the states possessing special status in India?
    i. Hilly and difficult terrain
    ii. Low population density/sizeable share of tribal population.
    iii. Strategic location along international borders
    iv. Economic and infrastructural backwardness
    v. Non-viable state finances.

    Codes:
    a. i, ii, iv
    b. ii, iii, v
    c. i, ii, iii, iv
    d. All of the above

    Answer:

    Explanation:

    States having special category status also been a greater focus of policy and research attention in comparison to other states- the so called ‘Other Indias’. These states include not just hinterland India (the India of rivers) but also the India of forests, of natural resources, and of ‘Special Category’ status.

    Major factors that determined the grant for special status have been:
    • hilly and difficult terrain
    • low population density/sizeable share of tribal population.
    • strategic location along international borders
    • economic and infrastructural backwardness
    • non-viable state finances.

    The 'Special Category' states sought to provide disadvantaged states (those, due to several factors, were unable to generate enough resources for development) with preferential treatment in the form of central assistance and tax breaks. The states of Assam, Nagaland Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Uttarakhand and Jammu & Kashmir were given special status.

    Complete study material of ECONOMIC SURVEY 2016-17

    3. The Successful Peninsular India has offered interesting and different models of development. Consider the follwing statements regarding such model of developments:
    I. The traditional East Asian mode of escape from development based on manufacturing (Gujarat and Tamil Nadu).
    II. The remittance-reliant mode of development exemplified by Kerala.
    III. The distinctive, “Precocious India” model based on specializing in skilled services (Karnataka, Andhra Pradesh and Tamil Nadu studied by Kochhar.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. I and II
    c. II and III
    d. All of the above

    Answer: d

    Explanation:

    Successful Peninsular India has offered three interesting and different models of development: the traditional East Asian mode of escape from development based on manufacturing (Gujarat and Tamil Nadu); the remittance-reliant mode of development exemplified by Kerala; and the distinctive, “Precocious India” model based on specializing in skilled services (Karnataka, Andhra Pradesh and Tamil Nadu studied by Kochhar.

    As a result, they have also been a greater focus of policy and research attention in comparison to other states- the so called ‘Other Indias’. These states include not just hinterland India (the India of rivers) but also the India of forests, of natural resources, and of ‘Special Category’ status.

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    4. The natural Resource Model is applicable to which of the following states of India?
    a. Jharkhand
    b. Chhattisgarh
    c. Odisha
    d. All of the above

    Answer:

    Explanation:

    Some states have been relatively less successful in terms of development, and perhaps because of that have received less attention. But they are interesting in their own right because they have conformed to other models of development. There are two such models of development: those based on “aid” or special status, and those based on natural resources. The definition of natural resources includes coal, onshore oil and natural gas, major and minor minerals but excludes forest cover. Large forest covers can also lead to a “forest curse”.

    The “aid” model is most applicable to the erstwhile 'Special Category’ states that includes North-eastern states and Jammu and Kashmir; the natural resources model to Jharkhand, Chhattisgarh, Odisha, Gujarat and Rajasthan.

    Current Affairs Quizzes for IAS Prelims 2017- January 2017

    5. One of the potential downsides of aid model is that it could trigger “Dutch disease”.  Consider the following statements regarding the “Dutch disease”:
    I. The "Dutch disease" is the perceptible causal relationship between the increase in the economic development of a specific sector and a decline in other sectors.
    II. Dutch disease named after the impact that discovery of natural gas in the North Sea had on the domestic economy in the Netherlands.

    Which of the following statement(s) is/are correct?
    a. Only I
    b. Only II
    c. Both I and II
    d. Neither I nor II

    Answer: c

    Explanation:

    One of the hypotheses is that aid perpetuates resource dependency, in the sense that since revenues flow in from outside, recipient countries may fail to develop their own tax bases or their institutions more generally. And it is institutions, tax revenues, and incentives that have been found to be critical for growth, much more than overall resource availability.

    Another potential downside of aid is that it could trigger “Dutch disease”, named after the impact that discovery of natural gas in the North Sea had on the domestic.  The "Dutch disease" is the perceptible causal relationship between the increase in the economic development of a specific sector and a decline in other sectors.

    IAS Prelims 2017- GS Economy complete Study Material

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