Jagran Josh Logo
  1. Home
  2. |  
  3. Civil Services|  

UPSC IAS Prelims Exam 2016: GS Economy Questions: Progress, Growth and Development of Indian Economy

May 23, 2016 18:30 IST

    From UPSC Civil Services IAS Examination point of view, the Indian Economy Questions are very important. The UPSC IAS Exam aspirants must be aware of every perspective of Indian Economy either historical or current perspective.

    For the Civil Services aspirants, here, we have developed Multiple Choice Questions for the UPSC IAS Prelims Exam based on Ramesh Singh’s Indian Economy book, one of the most important books available for UPSC IAS Exam.

    1. In which of the following year, UN has adopted GNH, a different approach to measure development in an economy?

    a. 1972
    b. 1992
    c. 2011
    d. 2014

    Answer: c

    Explanation: In the year 2011, the UN adopted Bhutan’s call for a holistic approach to measure development, a move endorsed by 68 countries. A UN panel is now considering ways that Bhutan’s GNH model can be replicated across the globe. The phrase was postulated by Bhutan's fourth Dragon King, Jigme Singye Wangchuck in the year 1972.

    2. With reference to the parameters of GNH measurement which one of the following is correct?

    I. Higher real per capita income
    II. Good Governance
    III. Environmental Protection

    Codes:

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: Bhutan has adopted GNH since 1972 and it has following sets of parameters for the estimation of GNH:  Higher real per capita income, Good Governance, Environmental, Protection, Cultural Promotion (i.e. inculcation of ethical and spiritual values in life without which, it says, progress may become a curse rather than a blessing).

    3. With reference to real per capita income which of the following statements is correct?

    a. the GNH and the HDI are the same
    b. In HDI, the real per capita income is taken into consideration but not in GNH
    c. In GNH, the real per capita income is taken into consideration but not in HDI
    d. The real per capita income is neither considered into HDI nor into GNH

    Answer: a

    Explanation: At the level of real per capita income, the GNH and the HDI are the same. Though the HDI is silent on the issue of ‘good governance’, today it should be considered as being promoted around the world once the World Bank came with its report on it in 1995 and enforced it upon the member states. The basic difference between the GNH and the HDI looks at the level of assimilating the ethical and spiritual aspects into our (UNDP’s) idea of development.

    4. Consider the following statements regarding the background of Indian economy:

    I. Being a typical case of colonial economy, India was serving a purpose of development not for herself but a foreign land—the United Kingdom.
    II. Both agriculture and industry were having structural distortions while the state was playing not even a marginal role.
    III. During the half century before India became independent, the world was having accelerated development and expansion in its agriculture and industry on the shoulders of the active role being played by the states, with the same happening in the UK itself.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: The economic profile of India was in complete distress at the time of independence. Being a typical case of colonial economy, India was serving a purpose of development not for herself but a foreign land—the United Kingdom. Both agriculture and industry were having structural distortions while the state was playing not even a marginal role. During the half century before India became independent, the world was having accelerated development and expansion in its agriculture and industry on the shoulders of the active role being played by the states, with the same happening in the UK itself.

    5. Consider the following statements regarding the approach of British towards Indian economy:

    I. The social sector was a neglected area for the British rulers which had a negative impact on the production and productivity of the economy.
    II. Industrialisation of India was also neglected by the colonisers—the infrastructure was not built to industrialise India but to exploit its raw materials.
    III. Indian capitalists who did emerge were highly dependent on British commercial capital and many sectors of industry were dominated by British firms.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: The colonial state practiced policies which were great impediments in the process of development in the country. Throughout the colonial rule, the economic vision the state had was to increase India’s capacity to export primary products, and increase the purchase/import of the British manufactured goods and raise revenues to meet the drain of capital as well as meet the revenue requirements of the imperial defence. The social sector was a neglected area for the British rulers which had a negative impact on the production and productivity of the economy. Industrialisation of India was also neglected by the colonisers—the infrastructure was not built to industrialise India but to exploit its raw materials. Indian capitalists who did emerge were highly dependent on British commercial capital and many sectors of industry were dominated by British firms.

    6. Consider the following statements regarding the economic performance of India under British rule:

    I. According to economic statistian Angus Maddison, there was no per capita growth in India from 1600 to 1870— per capita growth was a meagre 0.2 per cent from 1870 to 1947, compared with 1 per cent in the UK.
    II. The per capita incomes of Rs. 18 for 1899 and Rs. 39.5 for 1895 in current prices say the true story of the abject poverty Indian masses were faced with.
    III. The repeated famines and disease epidemics during the second half of the nineteenth century and the first half of the twentieth century show the greatest socio-economic irresponsibility and neglect of the British Government in India.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: The overall economic performance of India under the British rule was very low. According to economic statistian Angus Maddison, there was no per capita growth in India from 1600 to 1870— per capita growth was a meagre 0.2 per cent from 1870 to 1947, compared with 1 per cent in the UK. The per capita incomes of Rs. 18 for 1899 and Rs. 39.5 for 1895 in current prices say the true story of the abject poverty Indian masses were faced with. The repeated famines and disease epidemics during the second half of the nineteenth century and the first half of the twentieth century show the greatest socio-economic irresponsibility and neglect of the British Government in India at one hand and the wretchedness of the masses at the other.

    7. In which of the following year the National Planning Committee was set up?

    a. 1921
    b. 1930
    c. 1938
    d. 1951

    Answer: c

    Explanation: Netaji Subhas Chandra Bose being elected the President of the Indian National Congress constituted the Planning Committee on December 17, 1938 at its Haripura session and, by virtue of his liberal attitude and also as a strategy in the then prevailing political situation mostly controlled by Gandhiji, Subhas Chandra invited Jawaharlal Nehru to chair the Planning Committee.

    8. Consider the following statements regarding the population of India involve in the various sectors of the economy:

    I. There is now a consensus among the experts, policy-makers and the governments alike that for development to take place in India it is necessary to strengthen the sector on which the masses depend for their income and livelihood.
    II. More than 65 per cent of the Indian population depends on agriculture and allied activities while only 18.5 per cent of the gross domestic product (GDP) comes from the sector.
    III. The rest of the population that does not depend on agriculture (i.e. below 35 per cent) share 81.5 per cent gross income generated by the economy.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: Though the world outlook towards agriculture sector had changed by the early 1990s, the Government of India announced the policy shift more than one decade later. There is now a consensus among the experts, policy-makers and the governments alike that for development to take place in India it is necessary to strengthen the sector on which the masses depend for their income and livelihood. More than 65 per cent of the Indian population depends on agriculture and allied activities while only 18.5 per cent of the gross domestic product (GDP) comes from the sector. It means that above 65 per cent of Indian population shares just 18.5 per cent of the gross income generated by the economy. The rest of the population that does not depend on agriculture (i.e. below 35 per cent) share 81.5 per cent gross income generated by the economy. The gap of income shows the lower purchasing power of the people involved in agricultural activities—which is more than two-third of the total population.

    9. Consider the following statements regarding the Exim Policy of 2002-07:

    I. The Export Import Policy, 2002–07 for the first time accepted at the policy level the long-standing opinion of the experts.
    II. Under the policy which says that a one per cent increase of the agricultural products in India’s exports supplies additional Rs. 8,500 crores to the agricultural sector.
    III. Many policy initiatives were taken to increase the share of agriculture in the total export of the economy.

    Which of the following statement(s) is/are correct?

    a. Only I
    b. I and II
    c. I and III
    d. All of the above

    Answer: d

    Explanation: The Export Import Policy, 2002–07 for the first time accepted at the policy level the long-standing opinion of the experts—that a one per cent increase of the agricultural products in India’s exports supplies additional Rs. 8,500 crores to the agricultural sector. Many policy initiatives were taken to increase the share of agriculture in the total export of the economy.

    10. Which of the following statements is incorrect regarding the New Agricultural Policy, 2000 of India:

    a. The policy mainly intends to convert agriculture into the category of industry.
    b. The policy mainly intends to convert industry into the category of agriculture
    c. The motive of the policy is such that the population dependent on agriculture could earn income out of agricultural activities.
    d. The motive of the policy is such that the population dependent on it could earn profit out of agricultural activities with the same pace and mode as the industry has enabled the population dependent on the industrial activities.

    Answer: b

    Explanation: The policy mainly intends to convert agriculture into the category of industry so that the population dependent on it could earn income and profit out of agricultural activities with the same pace and mode as the industry has enabled the population dependent on the industrial activities.

    Click here for GS Economy Study Material

    For further queries and discussion on various subjects click here

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

    Latest Videos

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    Newsletter Signup
    Follow us on
    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK
    X

    Register to view Complete PDF