UPSC Essentials | Daily subject-wise quiz | Economy (Week 47)Subscriber Only

UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.

With reference to the Foreign direct investment (FDI) inflows in India, consider the following statements:

1. Foreign direct investment (FDI) inflows in India increased by 13 per cent in April-December 2023.

2. State-wise, Telangana received the highest inflow during the period April-December 2023.

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

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

With reference to the Third-Party Application Provider (TPAP), consider the following statements:

1. It provides the UPI compliant app(s) to the end-user customers to facilitate UPI-based payment transactions.

2. They are responsible for ensuring that their applications adhere to security standards and compliance guidelines set by NPCI.

3. TPAP approval from NPCI is a must to continue to provide UPI-based payment transactions facility to customers.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(d) None

With reference to the price deficiency payments (PDP), consider the following statements:

1. It entails the government to pay farmers the difference between the market price and MSP.

2. PDP was tried out first in Himachal Pradesh through a Bhavantar Bhugtan Yojana.

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

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Consider the following statements:

1. India is the world’s largest consumer of crude oil.

2. India depends on imports to meet over 85 per cent of its requirement.

3. Russia is the top oil producer among OPEC+ members.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(d) None

Consider the following oilseeds:

1. Groundnut

2. Nigerseed

3. Sunflower

4. Safflower

How many of the above oilseeds are covered under the Minimum Support Price?

(a) Only one

(b) Only two

(d) All four

FYI:

— According to the most recent government data, foreign direct investment (FDI) inflows in India fell 13% to USD 32.03 billion between April and December 2023, owing to decreased infusions in the computer hardware and software, telecom, auto, and pharmaceutical sectors. Hence, statement 1 is not correct.

— FDI equity inflows decreased from major countries, including Singapore, the US, the UK, Cyprus and the UAE. However, inflows increased from Mauritius, the Netherlands, Japan and Germany.

— The construction (infrastructure) activities, development and power sectors registered growth in inflows.

— State-wise, Maharashtra received the highest inflow of USD 12.1 billion during the period. Hence, statement 2 is not correct.

— The inflow, however, recorded a positive growth in Gujarat, Telangana, and Jharkhand.

Therefore, option (d) is the correct answer.

FYI:

— The Reserve Bank of India (RBI) has asked the National Payment Council of India (NPCI) to examine the request of One97 Communications’ (OCL), which owns Paytm, to become a Third-Party Application Provider (TPAP) for continued Unified Payments Interface operation of the Paytm application.

— A TPAP approval is mandatory to provide UPI-based payment transactions to customers. Hence, statement 3 is correct.

— A Third-Party Application Provider (TPAP) is a business that offers end-user consumers with UPI-compliant app(s) to facilitate UPI-based payment transactions. These applications could include mobile wallets, merchant apps, and any other platform that accepts UPI payments. Hence, statement 1 is correct.

— They are responsible for ensuring that their applications adhere to security standards and compliance guidelines set by NPCI. Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

FYI:

— The price deficiency payments (PDP) entails the government not physically purchasing or stocking any crop, and simply paying farmers the difference between the market price and MSP, if the former is lower. Hence, statement 1 is correct.

— PDP was tried out first in Madhya Pradesh through a Bhavantar Bhugtan Yojana. Hence, statement 2 is not correct.

— Under this scheme, the market price for a crop was its average modal (most-quoted) rate in the Agricultural Produce Market Committee (APMC) mandis of Madhya Pradesh as well as two other growing states during the particular month of sale.

— With the support of a “anubandh patra” (selling agreement with trader), a “tol parchi” (weighment slip), and a “bhugtan patra” (payment letter signed by both parties), the price differential relative to the MSP was payable on the actual quantity sold by the farmer.

Therefore, option (a) is the correct answer.

FYI:

— India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its requirement. Hence, statement 1 is not correct and statement 2 is correct.

— Oil prices have been unpredictable for some time, but the overall trend has been upward during the last three months. The price increase is the result of a number of interdependent factors:

(i) Production cuts by major oil-producing countries of OPEC and OPEC+

(ii) Signs of improved macroeconomic conditions and easing of inflation in major oil consumers like the US

(iii) Global oil demand touching record highs with expectations of further demand expansion.

— OPEC+ is a larger group of major oil-producing nations and includes members of OPEC along with Russia and a few other producers. OPEC+ produces around 40 per cent of the world’s crude oil, with Saudi Arabia as the top producer and Russia in the second spot. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

FYI:

— Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.

— The MSPs are announced by the Union government and as such, it is the government’s decision. But the government largely bases its decision on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

— The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops.

— During each cropping season, the government announces minimum support prices for 23 crops.

— Crops covered by MSPs include:

(i) 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley).

(ii) 5 types of pulses (chana, arhar/tur, urad, moong and masur).

(iii) 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed).

(iv) 4 commercial crops (cotton, sugarcane, copra, raw jute).

Therefore, option (d) is the correct answer.

(Other Source: vikaspedia.in)

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