SFG 2024 Level 2 Test 22 Solutions Eng

SFG 2024 | LEVEL 2 | Test #22 – Solutions |
Q.1) Consider the following statements with reference to India:

1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the
‘medium enterprises are those with investment in plants and machinery between Rs. 15 crore and
25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) d
Exp) Option d is the correct answer.
Statement 1 is incorrect: As per the Micro, Small and Medium Enterprises Development (MSMED)
Act, 2006, the Medium Enterprises are those for which the investments in Plant and Machinery is not
more than Rs. 50 crores of and turnover not more than Rs. 250 crores.
Statement 2 is incorrect: All bank loans to MSMEs that meet the criteria outlined in the Master
Direction on “Priority Sector Lending (PSL) - Targets and Classification” dated September 4, 2020
are eligible to be classified as priority sector lending.
Source: UPSC CSE Pre 2023
Subject:) Economy
Subtopic:) Indian Industry
Q.2) A patent is a statutory right granted by the respective governments. In this context, consider the
following statements::
1. Patent protection is a territorial right which is effective only within the territory of the country.
2. Any inventions relating to the production, control, use or disposal of atomic energy by an
individual cannot be patented in India.
3. Patent applications beyond one year of the invention cannot be filed in India.
4. The term of every patent filed under the Indian system is 20 years from the date of filing the
application.
How many of the statements given above are correct?
a) Only one
b) Only two
c) Only three
d) All four
Ans) c
Exp) Option c is the correct answer.
A Patent is a statutory right for an invention granted for a limited period of time to the patentee by
the Government, in exchange of full disclosure of his invention for excluding others, from making,
using, selling, importing the patented product or process for producing that product for those
purposes without his consent. The patent system in India is governed by the Patents Act, 1970 as
amended by the Patents (Amendment) Act, 2005 and the Patents Rules, 2003. The Patent Rules are
regularly amended in consonance with the changing environment, most recent being in 2024.
Statement 1 is correct: Patent protection is a territorial right and therefore it is effective only
within the territory of India. Patents should be obtained in each country where the applicant
requires protection of his invention. There is no concept of global patent. However, filing an
application in India enables the applicant to file a corresponding application for same invention in
convention countries or under Patent Cooperation Treaty (PCT), within or before expiry of twelve
months from the filing date in India.
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[1]
Statement 2 is correct: Inventions related to atomic energy are not patentable in India under
Section 4 of the Indian Patent Act of 1970. This section defines "inventions relating to atomic energy"
as those falling within sub-section (1) of Section 20 of the Atomic Energy Act of 1962. As per section
20 of the Atomic energy act 1962, no patents shall be granted for inventions which in the opinion of
the Central Government are useful for or relate to the production, control, use or disposal of
atomic energy or the prospecting, mining, extraction, production, physical and chemical
treatment, fabrication, enrichment, canning or use of any prescribed substance or radioactive
substance or the ensuring of safety in atomic energy operations.
Statement 3 is incorrect: An application for a patent can be filed at the earliest possible date. An
application filed with provisional specification, disclosing the essence of the nature of the invention
helps to register the priority of the invention. However, there is no rules mandating the filing of
application within one year of invention.
Statement 4 is correct: The term of every patent granted under Indian system is 20 years from the
date of filing of application. However, for application filed under national phase under Patent
Cooperation Treaty (PCT), the term of patent will be 20 years from the international filing date
accorded under PCT.
Source:
https://www.ipindia.gov.in/writereaddata/Portal/Images/pdf/Final_FREQUENTLY_ASKED_QUES
TIONS_-PATENT.pdf
https://forumias.com/blog/patent-rules-2024-patent-regime-in-india-explained-pointwise/
https://www.aerb.gov.in/images/PDF/Atomic-Energy-Act-1962.pdf
Subject:) Economy
Subtopic:) Service Sector
Q.3) With reference to Infrastructure Investment Trusts (InvITs), consider the following statements:
1. Like mutual funds, InvITs also pools investment from various categories of investors.
2. InvITs can invest their assets only in infrastructure projects that are completed and revenue-
generating.
3. Units of InvITs can be tradable on stock exchanges.
a) Only one
b) Only two
c) All three
d) None
Ans) b
Exp) Option b is the correct answer.
Infrastructure Investment Trusts (InvITs) are exchange-traded investments that offer investors
partial ownership in infrastructure projects. These trusts are governed by SEBI regulations. InvITs are
managed by professionals, relieving investors of project management responsibilities. They provide
income through dividends, interest, and capital gains.
Statement 1 is correct: Infrastructure investment trusts are institutions similar to mutual funds,
which pool investment from various categories of investors. InvITs are similar to mutual funds or
REITs, but they invest in infrastructure assets like toll roads, power transmission lines, and pipelines.
Statement 2 is incorrect: As per SEBI regulation, an InvIT must invest at least 80% of its total assets
in completed infrastructure projects capable of generating income. The remainder of assets up to a
limit of 20% held by the InvIT can be invested in under-construction infrastructure projects and
various SEBI-approved Equity, Debt, and Money Market instruments.
Statement 3 is correct: As the units of InvITs are listed on stock exchanges, there is reasonable
liquidity (an exit option) for both the existing investors and the new investors. InvITs are exchange-
[2]
traded investment options, which means that they are listed on NSE and BSE for you to buy and sell
units during the trading window.
Source: https://indianexpress.com/article/explained/explained-how-nhai-plans-to-monetise-its-
highways-through-invits-6605500/
Subject:) Economy
Subtopic:) Infrastructure
Q.4) With reference to India’s steel sector, consider the following statements:
1. India is second largest producer of steel in the world after China.
2. The majority of the crude steel production in India is contributed by the Public Sector
Undertaking (PSU).
3. Mission Purvodaya aims to accelerate development of eastern India through the establishment of
an integrated steel hub.
a) Only one
b) Only two
c) All three
d) None
Ans) b
Steel production is a critical industry that has a significant impact on the global economy. The steel
sector plays a pivotal role in crucial sectors such as construction, infrastructure, automobile,
engineering and defense. Over the years, the steel sector has witnessed tremendous growth and India
has emerged as a global force in steel production and the 2nd largest producer of steel in the world.
Statement 1 is correct: China is the largest producer of steel in the world, accounting for almost half
of the world’s total output. India currently ranks as the world's 2nd largest producer of Crude Steel,
surpassing Japan in 2018.
Statement 2 is incorrect: Majority of the crude steel production is contributed by Private sector in
India. With 82% share, the Private Sector (8.786 mt, up by 1.6%) led crude steel production compared
to the 18% contribution of the PSUs (up by 11.4%).
Statement 3 is correct: Launched in 2020, Mission Purvodaya aims to expedite the development of
eastern India by establishing an integrated steel hub. Its focus extends to the eastern states of
Odisha, Jharkhand, Chhattisgarh, West Bengal, and the northern part of Andhra Pradesh. These
regions collectively possess approximately 80% of the country’s iron ore, nearly 100% of coking coal,
and substantial reserves of chromite, bauxite, and dolomite.
Source: Statement 1: https://pib.gov.in/PressReleasePage.aspx?PRID=1991538,
https://jpcindiansteel.nic.in/writereaddata/files/Trend%20Report%20May%202023_3.pdf
Statement 3: https://pib.gov.in/PressReleasePage.aspx?PRID=1673977
Statement 2:
https://jpcindiansteel.nic.in/writereaddata/files/Trend%20Report%20May%202023_3.pdf – page
no 9
Subject:) Economy
Q.5) Which of the following correctly describes the meaning of the term 'Evergreening of Patents'?
a) Securing multiple patents for the same product by different persons/entities.
b) Extending patent exclusivity by making small incremental modifications to the original inventions.
c) Securing permanent patent rights for natural products by the Government.
d) Claiming new patent rights for the same product by citing another use.
[3]
Ans) b
The Indian Patent Office has rejected U.S. pharmaceutical giant Johnson & Johnson’s (J&J) attempt to
extend its monopoly on the manufacturing of the anti-tuberculosis drug Bedaquiline in India beyond
July 2023.
Evergreening of patents refers to the practice of extending the exclusivity period of a patent by
making small modifications or improvements to the original invention. The goal of evergreening is
to extend the period during which the original inventor can profit exclusively from their invention.
This is typically done by filing for new patents that cover variations or modifications of the original
invention, even if those modifications are relatively minor
The patent office invoked Section 3(d) of the Indian patent law, which does not allow the
evergreening of patents.
Source: Forum IAS Quarterly Current Affairs APRIL 2023 – JUNE 2023-Page: 41
Subject:) Current Affairs
Subtopic:) Evergreening of Patents
Q.6) In context of Hybrid Annuity Model (HAM), consider the following statements:
Under HAM, the government authority,
1. bears sole responsibility for the financial risk over the assets created.
2. has toll collection right of the asset created.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) b
The Hybrid Annuity Model is a public-private partnership framework where the government and
private players collaborate to develop infrastructure. Hybrid Annuity Model (HAM) is a combination
of two existing infrastructure development models:
1) Engineering, Procurement, and Construction (EPC) Model and Build-Operate-Transfer (BOT) -
Annuity Model. The government contributes a certain percentage of the project cost, reducing
the financial burden on the private player and mitigating some of the investment risks.
Statement 1 is incorrect: The Financial risk is not only borne by the government authority, but
shared between private player and government authority. Advantage of HAM is that it gives enough
liquidity to the developer and the financial risk is shared by the government. The private partner
continues to bear the construction and maintenance risks as in the case of BOT (toll) model and also
he is required to partly bear the financing risk.
Statement 2 is correct: Unlike the BOT Toll model, where the private player collects toll revenue,
under HAM, the toll collection rights remain with the government.
The private player is insulated from the revenue risk associated with toll collection as they receive
fixed annuity payments from the government, which cover the debt service and provide a return on
investment.
Source: https://morth.nic.in/sites/default/files/implementing.pdf
Subject:) Economy
[4]
Q.7) Consider the following statements with regards to disinvestment in India:

1. The proceeds from the disinvestment of Central Public Sector Enterprises (CPSEs) are credited to
the National Investment Fund (NIF).
2. Identifying the CPSEs for disinvestment and making recommendations for the same is the
responsibility of NITI Ayog.
3. Department of Investment and Public Asset Management (DIPAM) coordinates and oversees the
disinvestment process.
How many of the above statements are correct?
a) Only one
b) Only two
c) All three
d) None
Ans) c
Disinvestment refers to the process of selling or liquidating the government's stake in public sector
enterprises to private sector entities. This is part of the government's broader strategy to reduce its
involvement in businesses and increase private sector participation.
Statement 1 is correct: The proceeds from the disinvestment of Central Public Sector Enterprises
(CPSEs) are credit into National Investment Fund (NIF) constituted in November, 2005 and are used
for the approved purpose, as decided from time to time.
Presently, the disinvestment proceeds are credited to the existing NIF which is a "Public Account"
under the Government Accounts and the funds would remain there until withdrawn /invested for the
approved purposes. The proceeds from disinvestment are being used to finance
developmental/infrastructure/social schemes/projects.
Statement 2 is correct: While the NITI Aayog plays a crucial role in identifying the CPSEs for
disinvestment and making recommendations, the final approval and decision on disinvestment are
made by the Cabinet Committee on Economic Affairs (CCEA), ensuring a comprehensive
governmental review and endorsement.
Statement 3 is correct: The role of the Department of Investment and Public Asset Management
(DIPAM) is critical. DIPAM is pivotal in the disinvestment process, responsible for the management of
the government's investments in CPSEs, including the execution of disinvestment policies and the
facilitation of the actual disinvestment process.
Knowledge Base:
1) The primary goals of disinvestment are to raise capital for government initiatives, reduce the
fiscal burden on the government, improve public finances, and enhance the efficiency and
competitiveness of the economy.
2) There are two types of disinvestments –
3) Strategic disinvestment – This involves the entire or substantial sale of government shareholding
of a CPSE, along with the transfer of management control.
4) Minority stake sale – This involves the sale of a minority stake in certain CPSEs without
transferring management control. This can be done through various SEBI-approved methods,
such as Initial Public Offer (IPO), Offer for Sale (OFS) and Buyback of shares.
Source: https://dipam.gov.in/dipam-faq#
https://dipam.gov.in/national-investment-fund
https://dipam.gov.in/disinvestment-policy
Subject:) Economy
[5]
Q.8) With reference to Make in India 2.0, consider the following:

1. The initiative is aimed at building best in class manufacturing infrastructure and opening new
sectors for foreign investment.
2. It does not include the service sector under its ambit.
3. It is implemented by Union Ministry of finance.
a) Only one
b) Only two
c) Only three
d) All four
Ans) a
Exp) Option a is the correct answer.
Make in India is a government initiative aimed at transforming India into a global manufacturing
hub. It seeks to attract foreign investment, boost domestic manufacturing, and promote innovation
across various sectors. The initiative aims to create job opportunities, enhance economic growth,
and position India as a preferred destination for manufacturing.
Statement 1 is correct: The initiative was launched aims at facilitating investment, fostering
innovation, building best in class manufacturing infrastructure, making it easy to do business and
enhancing skill development. The initiative is further aimed at creating a conducive environment
for investment, modern and efficient infrastructure, opening new sectors for foreign investment
and forging a partnership between government and industry through positive mindset.
Statement 2 is incorrect: The Make in India initiative encompasses not only manufacturing but
also service sectors, aiming to boost entrepreneurship across a wide array of industries, including
services. The Department for Promotion of Industry and Internal Trade is coordinating action
plans for manufacturing sectors, while the Department of Commerce is coordinating service
sectors.
Statement 3 is incorrect: The Ministry of Commerce and Industry is the nodal agency responsible
for implementation and promotion of the Make in India 2.0.
Source: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1694804
Subject:) Economy
Q.9) Consider the following states:

1.Uttar Pradesh
2.Tamil Nadu
3.Maharashtra
4.Karnataka
5.Gujarat
How many of the above states at present have defense industrial corridors?
a) Only two
b) Only three
c) Only four
d) All five
Ans) a
India's Defence industrial Corridors aim to boost domestic production of military equipment.
These designated zones offer infrastructure, incentives, and attract private companies to
collaborate with the government. This initiative aims to reduce reliance on foreign imports, create
jobs, and make India self-sufficient in defence manufacturing.
[6]
Option 1 is correct: Uttar Pradesh has a defence industrial corridor with nodes in Agra, Aligarh,
Chitrakoot, Jhansi, Kanpur, and Lucknow.
Option 2 is correct: Tamil Nadu also has a defence industrial corridor with nodes in Chennai,
Coimbatore, Hosur, Salem, and Tiruchirappalli.
Option 3,4 and 5 are incorrect: Maharashtra, Karnataka and Gujarat don’t have a defence industrial
corridor yet.
Source: https://indianexpress.com/article/cities/lucknow/up-to-help-india-become-self-reliant-
in-defence-production-adityanath-9182818/
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1913309
Subject:) Economy
Q.10) With reference to the framework for Right to Repair, consider the following:
1. The framework has been released by the Ministry of Consumer Affairs, Food and Public
Distribution.
2. The framework covers only electronic products.
3. The framework will significantly reduce the need for third party repairers.
4. Under the framework it is mandatory for manufacturers to share their product details with
customers.
a) Only one
b) Only two
c) Only three
d) All four
Ans) b
Right to Repair gives consumers access to affordable repair mobile phones, appliances and other
electronic devices by original equipment manufacturers (OEMs) or third-party repairers. The aim is to
offer a cheaper alternative to expensive replacements to the customers, instead of buying new
products altogether.
Statement 1 is correct. The Ministry of Consumer Affairs, Food and Public Distribution has
released Right to Repair framework that allows citizens to get their gadgets and vehicles repaired
without losing their warranty.
Statement 2 is incorrect. The Right to Repair framework currently covers four sectors – consumer
durables, electronic devices, automobiles and farm equipment.
Statement 3 is incorrect. The Right to Repair framework will carry information for enabling
consumers to self-repair, knowing about authorized repairers and promoting third party repairers
Statement 4 is correct. Under the Rights to Repair framework, it would be mandatory for
manufacturers to share their product details with customers so that they can either repair them by
self or by third parties, rather than only depending on original manufacturers. The framework also
aims to help harmonize the trade between the Original Equipment Manufacturers (OEMs), third-party
buyers and sellers - thus also creating new jobs.
Knowledge Base:
The Department of Consumer Affairs set up a committee to come up with a Right to Repair
framework on the lines of the LiFE (Lifestyle For Environment) initiative launched by Prime Minister
Narendra Modi.
Source: https://righttorepairindia.gov.in/about-us.php
https://www.livemint.com/technology/tech-news/explained-what-it-right-to-repair-how-it-
help-consumers-brands-registered-on-the-portal-and-more-11684660960389.html
Subject:) Economy Subtopic:) Service Sector
[7]
Q.11) Which of the following are the objectives of the Khadi and Village Industries Commission?
1. To provide employment in rural areas.
2. To produce saleable articles.
3. To create self-reliance amongst people and building up a strong rural community spirit.
Select the correct answer using the code given below:
a) 1, 2 and 3
b) 1 and 2 only
c) 2 and 3 only
d) 1 and 3 only
Ans) a
Exp) Option a is the correct answer
The objectives of the KVIC are explained below:
Primary Objective – To build up an active rural community
Social Objective – To provide employment in rural areas
Economic Objective – To produce a saleable product
Wider Objective – To create self-reliance among the economically weaker section
Source: UPSC CDS 2016
Subject:) Economy
Q.12) Consider the following:

1. Deposits of foreign governments
2. Inter-bank Deposits
3. Recurring Deposits
4. Investments in mutual funds
5. Central Government Deposits
How many of the above are not insured by Deposit Insurance and Credit Guarantee Corporation
(DICGC)?
a) Only two
b) Only three
c) Only four
d) All five
Ans) c
The Deposit Insurance and Credit Guarantee Corporation (DICGC) is an Indian statutory body
established under the DICGC Act of 1961. DICGC offers deposit insurance coverage to all types of bank
deposits, including savings accounts, current accounts, fixed deposits, and recurring deposits.
Option 1 is correct: Deposits of foreign governments are funds placed in banks by foreign
governments. The DICGC does not insure these deposits.
Option 2 is correct: Inter-bank Deposits are deposits made by one bank into another bank. They are
usually for managing liquidity and are not insured by the DICGC.
Option 3 is incorrect: Recurring Deposits are a type of term deposit offered by banks in India which
are used to save money with the feature of adding to the investment on a regular basis. They are
insured by the DICGC.
Option 4 is correct: Mutual funds are investment vehicles that pool money from many investors to
purchase securities. They are not deposits and hence are not covered by DICGC insurance.
Option 5 is correct: Central Government Deposits are funds deposited by the central government and
are not insured by the DICGC.
Source: https://www.dicgc.org.in/FD_A-GuideToDepositInsurance.html
[8]
https://margcompusoft.com/m/deposit-
insurance/#:~:text=Coverage%20and%20Limits%3A%20DICGC%20offers,bonds%2C%20or%20othe
r%20financial%20instruments.
https://bgvb.in/tenders/FAQ_under_DICGCI_for_Depositor.pdf
Subject:) Economy
Q.13) In the context of business capital, “paid-up capital” best refers to which of the following?
a) The number of stock units (shares) that a company can issue.
b) A portion of the authorized capital that potential shareholders have agreed to purchase.
c) A portion of the subscribed capital for which the company has received payment from the
subscribers.
d) The shares that have actually been issued by the company to the shareholders
Ans) c
Option a is incorrect. Authorized share capital is the number of stock units (shares) that a company
can issue as stated in its memorandum of association or its articles of incorporation. Authorized share
capital is often not fully used by management in order to leave room for future issuance of additional
stock in case the company needs to raise capital quickly
Option b is incorrect. Subscribed capital represents a portion of the authorized capital that potential
shareholders have agreed to purchase from the company's treasury.
Option c is correct. Paid-up capital is the portion of the subscribed capital for which the company
has received payment from the subscribers. A company creates paid-up capital by selling its shares
directly to investors in the primary market.
Option d is incorrect. Issued capital refers to the shares that have actually been issued by the
company to the shareholders. These shareholders can include the general public, institutional
investors, and insiders who receive stock as part of their compensation packages. Issued shares are
also referred to as outstanding shares.
Source: Indian Economy by Shankar Ganesh
Subject:) Economy
Q.14) With reference to benefits given to Special Economic Zones (SEZ) in India, consider the
following statements:
1. Supplies to SEZs are zero rated under the IGST Act, 2017.
2. SEZ’s allows duty-free import of goods and services.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) c
Special Economic Zones (SEZ) are a specially delineated duty-free enclave treated as a deemed
foreign territory within a country for the purpose of trade operations, duties and tariffs with special
rules for facilitating foreign direct investment leading to exports.
Statement 1 is correct. SEZs are allowed duty free import/domestic procurement of goods for
development, operation and maintenance of SEZ units. SEZs have exemption from Central Sales Tax,
[9]
exemption from Service Tax and exemption from State sales tax. These have now subsumed into GST
and supplies to SEZs are zero rated under IGST Act, 2017.
Statement 2 is correct. SEZ allows duty free import of goods and services for units and developers for
their operations leading to a substantial saving in costs.
Knowledge Base:
Government enacted SEZ Act 2005 which came into force from Feb 2006.The main objectives of the
SEZ Act are:
1. generation of additional economic activity
2. promotion of exports of goods and services;
3. promotion of investment from domestic and foreign sources;
4. creation of employment opportunities;
5. development of infrastructure facilities;
Source: http://sezindia.nic.in/cms/facilities-and-incentives.php
https://nsez.gov.in/Resources/SEZ%20FAQs.pdf
Subject:) Economy
Q.15) With reference to various regions appeared in the news, consider the following pairs:
Regions in the news Located in
1. Haifa Israel
2. Khartoum Sudan
3. Rostov-on-Don Spain
How many of the above pairs are correctly matched?

a) Only one
b) Only two
c) All three
d) None
Ans) b
Pair 1 is correct: Haifa is a city in Israel and the city’s major attraction Haifa Port lies adjacent to the
Mediterranean Sea. Israel Foreign Minister announced that Arab train networks in future would be
carrying Indian goods to the Haifa port in Israel. It has a natural deep-water harbor, which operates
all year long.
Pair 2 is correct: Khartoum is the capital of Sudan. India has begun ‘Operation Kaveri’ to evacuate
around 4,000 nationals currently stranded in war ridden Khartoum and other parts of Sudan.
[10]
Pair 3 is incorrect: Rostov-on-Don is a city in Russia (not Spain) which is of great strategic
importance to Russia’s war efforts in Ukraine. Recently, Wagner Group’s troops have taken control of
Rostov-on-Don and posed challenges to Russia’s ambition. Wagner Group is a private military
company and a network of mercenaries in Russia. The group was first identified in 2014 while backing
pro-Russian separatist forces in eastern Ukraine.
Subtopic:) Regions in the news
Q.16) With reference to Universal Service Obligation Fund (USOF), consider the following statements:
1. It aims to provide quality and affordable ICT services in rural and remote areas.
2. It is a non-lapsable fund.
3. BharatNet project is funded by USOF.
a) Only one
b) Only two
c) All three
d) None
Ans) c
The Universal Service Obligation Fund (USOF) is an initiative in India aimed at providing affordable
and quality telecom services in rural and remote areas.
1) Established Under: The USOF was created by an Act of Parliament in December 2003, amending
the Indian Telegraph Act, 1885.
2) Managed By: It functions under the Department of Telecommunications (DoT), Ministry of
Communications. An Administrator, appointed by the Central Government, heads the USO Fund.
Statement 1 is correct:
1) USOF specifically targets providing quality and affordable ICT services in rural and remote
areas.
[11]
2) It aims to bridge the digital divide in these underserved regions.

3) These regions often lack the infrastructure and economic incentive for private telecom
companies to invest in setting up networks.
4) SOF bridges this gap by providing financial support to extend telecom services to these
underserved regions, making them affordable for the population there.
Statement 2 is correct: USOF is a non-lapsable fund, meaning any unspent funds at the end of the
financial year are carried forward to the next year. This ensures continuity in achieving USOF's
objectives. The unspent funds can be used for ongoing projects or future initiatives aligned with the
goal of bridging the digital divide in rural India.
Statement 3 is correct: The Bharat Net project, one of the flagship schemes of the Government of
India, was launched to provide broadband connectivity to 2.5 lakhs Gram Panchayats in the country.
The project was designed to provide non-discriminatory access to the network to all the telecom
service providers to enable the launch of various digital services such as e-health, e-education, e-
governance, etc in rural areas. It is funded by USOF.
Source: https://trai.gov.in/sites/default/files/asean/Presentation/Pankaj_Kumar_S7.pdf
https://sansad.in/getFile/annex/258/AU1203.pdf?source=pqars
https://usof.gov.in/en/ongoing-schemes
Subject:) Economy
Q.17) Consider the following statements in relation to Unicorn companies:

1. India ranks third worldwide in terms of the number of unicorn companies.
2. Only a privately held startup company can be a unicorn.
3. For a startup company to become a unicorn, it must attain a valuation of at least $10 billion.
a) Only one
b) Only two
c) All three
d) None
Ans) b
Statement 1 is correct: The latest data published by Journalistic Org. in 2023 confirms India's
position as the third-ranked nation globally in terms of unicorn companies only behind China (2nd)
and USA (1st). As of 03rd October 2023, India is home to 111 unicorns with a total valuation of $349.67
Bn. However, the combined valuation of Indian unicorns reaches a substantial $195.75 billion,
representing a noteworthy 5% contribution to the total global valuation of unicorn companies.
Statement 2 is correct: The term
1) Privately Held: A company that is not publicly traded on a stock exchange. Its ownership is
restricted to a limited group of investors, such as venture capitalists, angel investors, or the
founders themselves.
2) Unicorn Valuation: A valuation of over $1 billion. This signifies a significant achievement for a
young company, indicating its potential for growth and impact.
Once a company undergoes an Initial Public Offering (IPO) and becomes publicly traded, it sheds
the "unicorn" label. This is because public markets provide a broader valuation based on stock prices,
which can differ from the private valuation assigned by investors.
Statement 3 is incorrect: The defining factor for a unicorn startup is a valuation of at least $1 billion.
The term "unicorn" was coined in 2013 to represent the rarity of startups achieving such a high
valuation. Since then, the number of unicorns has grown significantly, but the core valuation
threshold remains at $1 billion.
There are terms for even higher valuation milestones:
[12]
1) Decacorn: A startup valued at over $10 billion (e.g., SpaceX)

2) Hectocorn: A startup exceeding a valuation of $100 billion (very rare)
Source: https://www.thehindubusinessline.com/news/india-is-the-3rd-largest-producer-of-
unicorns-study/article67543721.ece
https://m.economictimes.com/wealth/earn/when-is-a-startup-referred-to-as-a-unicorn-5-
things-to-know/articleshow/84918227.cms
https://www.investindia.gov.in/indian-unicorn-
landscape#:~:text=As%20of%2003rd%20October%202023%2C%20India%20is,$%2029.20%20Bn%20
were%20born%20in%202022.
Subject:) Economy
Q.18) With reference to 'Index of Industrial Production (IIP)’, consider the following statements:
1. It is published by the National Statistical Office (NSO)
2. Base year for IIP is 2004-05
3. Mining sector has been provided highest weightage under IIP
a) Only one
b) Only two
c) All three
d) None
Ans) a
The Index of Industrial Production (IIP) is a measure used in India to track the growth of different
sectors in the economy, including mineral mining, electricity, and manufacturing. The all-India IIP
serves as a composite indicator, reflecting the short-term changes in the volume of production across
various industrial products during a specific period compared to a chosen base period.
1) Statement 1 is correct: The National Statistical Office (NSO) erstwhile Central Statistical
Organisation (CSO) is responsible for compiling and publishing the Index of Industrial Production
(IIP). The IIP is calculated as a simple weighted arithmetic mean using Laspeyre's formula,
representing a quantum index where production of items is expressed in physical terms.
Statement 2 is incorrect: The base year for the IIP was revised to 2011-12 from 2004-05. The base
year refers to a specific period against which the current or subsequent periods are compared to
measure changes. It serves as a reference point or benchmark for calculating the index values.
Statement 3 is incorrect: The manufacturing sector typically has the highest weightage in the Index
of Industrial Production (IIP), not the mining sector. IIP Base years and respective weightage:
Sector Base year 2011-12 Base year 2004-
05
Weights (%) Item groups Weights (%) Item groups
Mining 14.373 1 14.157 1
Manufacturing 77.633 405 75.527 397
Electricity 7.994 1 10.316 1
Total 100 407 100 399
Source: https://mospi.gov.in/54-index-industrial-production
https://pib.gov.in/newsite/PrintRelease.aspx?relid=161745
Subject:) Economy
[13]
Q.19) In June 2015, the Pradhan Mantri Awas Yojana (Urban) was launched to address the need for
housing in urban areas. This initiative aimed to provide all eligible beneficiaries with permanent
(pucca) houses by 2024. In this context, consider the following statements:
1. It aims to provides all weather pucca house to people living exclusively in the below poverty line in
urban slums.
2. To obtain funding under the scheme, the beneficiary should not own a pucca house anywhere in
India.
3. Only Scheduled Commercial Banks are identified as primary lending institutions under this scheme
a) Only one
b) Only two
c) All three
d) None
Ans) d
1) The Pradhan Mantri Awas Yojana (PMAY) - Urban is a flagship affordable housing scheme
launched by the Government of India in 2015 with the aim of providing housing for all urban
households by the year 2022.
2) The scheme is implemented by the Ministry of Housing and Urban Affairs (MoHUA).
3) PMAY-Urban aims to address the housing shortage in urban areas by promoting the construction
of affordable homes through various means including credit-linked subsidies, beneficiary-led
construction, and affordable housing in partnership with the private sector and In-Situ slum
redevelopment.
Statement 1 is incorrect: It aims to provide central assistance to implementing agencies for
providing all weather pucca houses to all eligible families/ beneficiaries by 2024. It covers people
from wider economic section like Economically Weaker section, Low-Income groups and Middle
income groups.
1) Economically Weaker Section (EWS): This includes families with an annual income upto Rs. 3.00
lakhs.
2) Low Income Group (LIG): This category represents families with an annual income between Rs.
3.00 lakhs to Rs. 6.00 lakhs.
3) Middle Income Group (MIG): Families with an annual income between Rs. 12.00 lakhs to Rs. 18.00
lakhs.
However, States/UTs have flexibility to redefine the annual income criteria as per local needs with
the approval of Ministry.
Statement 2 is incorrect: PMAY has 4 components-
1) “In-situ” Slum Redevelopment (ISSR)
2) Credit Linked Subsidy Scheme (CLSS)
3) Affordable Housing in Partnership (AHP)
4) Beneficiary-led individual house construction/enhancements (BLC)
Under component 4- Beneficiary-led individual house construction/enhancements (BLC) Central
Assistance of Rs.1.5 lakh is available to individual eligible families belonging to EWS categories to
either construct new houses or enhance existing houses on their own to cover the beneficiaries who
are not able to take advantage of any other component of the Mission.
If the beneficiary has a pucca house with carpet area of up to 21 sq. mt. area or a semi-pucca house,
lacking in one of the facilities- i.e. room, kitchen, toilet, bath or a combination of these, it may be
taken up for enhancement subject to ULB/State ensuring structural safety of the house and
adherence to following conditions:
1) The total carpet area after enhancement must not be less than 21 sq. mt and must not be more
than 30 sq. mt.
[14]
2) Enhancement shall mean addition of minimum carpet area of 9.0 square meters in to the
existing house with pucca construction of at least one habitable room or room with kitchen and/or
bathroom and/or toilet conforming to NBC norms.
Hence, under components 4 (Beneficiary-led individual house construction/enhancements (BLC), the
beneficiary can have a pucca house up to 21 square metre and apply for enhancement to carpet area
of his house up to 30 square metres.
For all other components of the scheme – Beneficiary should not have a pucca house anywhere in
India.
Statement 3 is incorrect: While Scheduled Commercial Banks are part of the lending institutions,
other financial entities such as Housing Finance Companies (HFCs), Regional Rural Banks (RRBs),
Cooperative Banks, and Non-Banking Financial Companies (NBFCs) are also eligible to provide loans
under this scheme.
Knowledge Base:
The PMAY (Urban) is implemented as Centrally Sponsored scheme (CSS), except for the component
of credit linked subsidy which is implemented as a Central Sector scheme by the Ministry of
Housing and Urban Affairs (MoHUA).
1) Centrally Sponsored Scheme (CSS): Under the CSS model, the central government provides
financial assistance to states/UTs for implementing the three core components of PMAY
(Urban) – Beneficiary Led Construction/Enhancement (BLC), Affordable Housing in
Partnership (AHP), and In-situ Slum Redevelopment (ISSR). However, states/UTs also
contribute a share of the funding for these components.
2) Credit Linked Subsidy Scheme (CLSS) as a Central Sector Scheme: This is the exception. Here,
the central government bears the entire financial burden for providing interest rate subsidies on
home loans availed by beneficiaries. This ensures consistent subsidy availability across the
country, regardless of a state/UT's financial situation
Source: https://pmay-urban.gov.in/faq
https://pmay-urban.gov.in/uploads/guidelines/62381c744c188-Updated-guidelines-of-PMAY-U.pdf
Subject:) Economy
Q.20) Consider the following statements about Udyam portal:

1. It is the Government portal for the registration of MSMEs.
2. No enterprise shall have more than one Udyam Registration number.
3. The registration on Udyam portal is free of cost for all categories of Micro, Small and Medium
enterprises (MSMEs).
a) Only one
b) Only two
c) All three
d) None
Ans) c
The Udyam Portal was launched on July 1, 2020, replacing the earlier system of MSME registration
known as Udyog Aadhaar. Udyam Portal is an online platform introduced by the Government of
India to simplify the registration process for Micro, Small, and Medium Enterprises (MSMEs) in the
country.
Statement 1 is correct: The Udyam Registration portal is the only official government portal in
India for the registration of Micro, Small, and Medium Enterprises (MSMEs). It was launched to
simplify the registration process and provide various benefits to MSMEs.
[15]
Statement 2 is correct: According to the rules of the Udyam Registration portal, each enterprise is
allowed only one Udyam Registration number. An enterprise can only have one Udyam Registration
Number (URN) assigned to it. This URN serves as a unique identifier for the enterprise throughout its
existence. This rule prevents duplication and ensures that each enterprise is registered only once
under the MSME category
Statement 3 is correct: Registration on the Udyam portal is completely free for all categories of
MSMEs (micro, small, and medium). There are no charges associated with the registration process.
Source: https://udyamregistration.gov.in/
Subject:) Economy
Q.21) With reference to foreign-owned e-commerce firms operating in India, which of the following
statements is/are correct?
1. They can sell their own goods in addition to offering their platforms as market-places.
2. The degree to which they can own big sellers on their platforms is limited.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) d
After Walmart’s $16bn purchase of Flipkart in 2018, the rules for foreign-owned e-commerce firms
were tightened further, with unexpected severity. Two restrictions predominate.
Statement 1 is incorrect: First, foreign firms are prevented from holding inventory or selling their
own goods, which both Amazon and Walmart do in other markets. They can offer their platforms only
as “marketplaces” for other buyers and sellers.
Statement 2 is incorrect: The statement as per the official answer key is incorrect. As the statement
talks about big sellers but the guidelines of the government talk just about sellers which would be the
reason the statement being not completely correct.
Note: The statement as per different sources and guidelines by the government should have been
correct but as per official UPSC answer key the statement is incorrect.
Subject:) Economy
Q.22) In FY 2022-23, India attracted total FDI (Foreign Direct Investment) inflow of USD 70.97 billion.
In this context consider the following sectors:
1. Biotechnology
2. Power Exchanges
3. Insurance
4. Gems & Jewellery
In how many of the above sectors, 100% FDI is allowed through automatic route?
a) Only one
b) Only two
c) Only three
d) All four
[16]
Ans) a
FDI under sectors is permitted either through the Automatic route or Government route.
Under the Automatic Route, the non-resident or Indian company does not require any approval from
the Government of India. Whereas, under the Government route, approval from the Government of
India is required prior to investment. Proposals for foreign investment under the Government route
are considered by the respective Administrative Ministry/Department.
FDI under 100% automatic route is allowed in following sectors:
1) Agriculture & Animal Husbandry,
2) Air-Transport Services (Non-Scheduled Air Transport Service / Helicopters services/ seaplane
services requiring DGCA approval),
3) Asset Reconstruction Companies,
4) Auto-components, Automobiles,
5) Gems & Jewellery. Option 4 is correct.
6) Coal & Lignite, etc.
FDI up to 100% through automatic route is not allowed under the following sectors:
1) Infrastructure Company in the Securities Market - 49%
2) Insurance - up to 74%. Option 3 is incorrect.
3) Medical Devices - up to 100%
4) Pension - 49%
5) Petroleum Refining (By PSUs) – 49%
6) Power Exchanges – 49%. Option 2 is incorrect.
Biotechnology (Greenfield only, not Brownfield) is allowed for 100% FDI through Automatic route,
Hence Option 1 is incorrect.
Source: https://www.makeinindia.com/policy/foreign-direct-investment
Subject:) Economy
Q.23) With reference to Government-e-Marketplace (GeM), consider the following statements:

1. A supplier must pass the quality tests of Quality Council of India (QCI) to register on GeM.
2. State governments and its entities procured more products and services from GeM than the
Central Government and its entities did in FY 2023-24.
Which of the statements given above are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) d
Government e-Marketplace (GeM) is a one stop portal to facilitate online procurement of common
use Goods & Services required by various Government Departments / Organizations / PSUs.
Statement 1 is incorrect. GeM eliminates human interface in vendor registration, order placement
and payment processing, to a great extent. Being an open platform, GeM offers no entry barriers to
bonafide suppliers who wish to do business with the Government. There is no such requirement of
passing the quality test of QCI.
Statement 2 is incorrect. Within the constellation of noteworthy contributors in GeM in the financial
year 2023-24, the substantial role is played by Central entities, including Central Public Sector
Enterprises (CPSEs), constituting an overwhelming 83% of the total.
[17]
Also, the enthusiastic participation of State Governments, comprising the remaining 17%, further
highlights the nationwide embrace of GeM's transformative impact on public procurement. States
like Uttar Pradesh, Gujarat, Maharashtra, Delhi, Madhya Pradesh, Jammu & Kashmir, Odisha, Bihar,
Assam, Uttarakhand have placed significant amounts of procurement orders in the financial year
2023-24.
Source:
https://pib.gov.in/PressReleasePage.aspx?PRID=1976649#:~:text=In%20a%20remarkable%20achiev
ement%2C%20Government,year%20(2022%2D23).
https://gem.gov.in/aboutus#:~:text=As%20owner%20of%20the%20National,Central%20%26%20St
ate%20Public%20Undertakings%20(CPSUs
https://vikaspedia.in/e-governance/online-citizen-services/government-to-business-services-
g2b/government-emarketplace
https://www.india.gov.in/spotlight/government-e-marketplace-procurement-made-
smart#tab=tab-1
Subject:) Economy
Q.24) Consider the following statements with reference to the Insurance Regulatory and Development
Authority of India (IRDAI):
1. It is a non-statutory body.
2. It functions under the Ministry of Commerce and Industry.
3. It can adjudicate disputes between insurers and intermediaries.
a) Only one
b) Only two
c) All three
d) None
Ans) a
Statement 1 is incorrect. IRDAI is a statutory body established under the IRDA Act, 1999.
It is setup as an autonomous body to protect the interests of policyholders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters connected therewith or incidental
thereto.
Statement 2 is incorrect. The IRDAI operates under the Ministry of Finance and is responsible for
overseeing the functioning of insurance companies, intermediaries, and other entities involved in the
insurance sector.
Statement 3 is correct. It has the duty to adjudicate disputes between insurers and intermediaries
or insurance intermediaries.
Knowledge Base: As per the section 4 of IRDAI Act 1999, Insurance Regulatory and Development
Authority of India specify the composition of Authority. The Authority is a ten-member team
consisting of
a) a Chairman;
b) five whole-time members;
c) four part-time members,
Source: https://irdai.gov.in/duties-and-responsibilities
https://policyholder.gov.in/who-we-are
https://www.kotaklife.com/insurance-guide/about-life-insurance/role-of-irda-in-insurance-
sector-in-india
Subject:) Economy
Subtopic:) Insurance Sector
[18]
Q.25) With increasing cases of cyber fraud demand for cyber insurance is increasing in India. In this
context consider the following statements about cyber insurance in India:
1. Apart from cyber breach, cyber insurance policies cover expenses related to data recovery, privacy
investigations and litigation.
2. Cyber-assaults related to cryptocurrency are generally not covered by cyber insurance.
3. It covers the cyber extortion/ ransomware losses.
a) Only one
b) Only two
c) All three
d) None
Ans) c
Statement 1 is correct. Cyber insurance is a type of insurance cover that protects individuals as well
as organizations against the implications of cyber-attacks. Not only does it cover the insured against
the financial loss due to the cyber-breach, but it also covers the expenses related to data recovery,
privacy investigations, regulatory actions and litigation.
Statement 2 is correct. Comprehensive plans of this kind cover everything ranging from malware,
phishing and cyber extortion to identity theft, cyberstalking, and data and privacy breach by third-
party. Typically, a cyber insurance policy covers the online loss of money not only from bank accounts
and credit cards but also from payment wallets. However, cyber-assaults related to cryptocurrency
are generally not covered under cyber-insurance plan.
Statement 3 is correct. It covers the expenses that include the cost of forensic IT audit, stakeholder
notification costs, security consultation, reputation damage cover, coordination with service
providers, credit and identity theft monitoring Cover, Cyber extortion/ Ransomware Cover, Cyber
Stalking, and Counselling.
Source: https://indianexpress.com/article/business/guide-to-cyber-insurance-policy-amid-
rising-online-threats-8154354/
https://www.investindia.gov.in/team-india-blogs/cyber-insurance-sector-fortifying-indias-digital-
economy
https://www.eindiainsurance.com/commercial-lines/cyber-insurance.asp
https://www.policybazaar.com/commercial-insurance/cyber-
insurance/#:~:text=Any%20legally%20uninsurable%20matter,of%20cryptocurrency%20is%20not%2
0covered
Subject:) Economy
Q.26) With reference to ‘Ujwal DISCOM Assurance Yojana (UDAY)’, consider the following statements:
1. It was launched by the Government of India for the turnaround of privately owned Power
Distribution Companies (DISCOMs)
2. Under this scheme, states issue bonds to take over debt and transfer the proceeds to DISCOMs as
a mix of grant, loan, and equity.
3. Borrowing for the purpose of this scheme will not to be included for calculating fiscal deficit of
the state.
a) Only one
b) Only two
c) All three
d) None
[19]
Ans) b
The Ujwal DISCOM Assurance Yojana (UDAY) was introduced by the Government of India in 2015 to
improve the operational and financial performance of State-owned Power Distribution Companies
(DISCOMs). The scheme targets lowering interest burdens, reducing power costs, minimising power
losses in the distribution sector, and enhancing DISCOMs' operational efficiency.
Statement 1 is incorrect: Ujwal DISCOM Assurance Yojana (UDAY) was launched specifically for
State-owned Power Distribution Companies (DISCOMs), not private-owned ones.
Statement 2 is correct: States issue non-SLR (Statutory Liquidity Ratio) bonds, including SDL (State
Development Loan) bonds, under the Ujwal DISCOM Assurance Yojana (UDAY), to acquire DISCOMs'
debt and then transfer the generated funds to DISCOMs in the form of a combination of grants,
loans, and equity.
Statement 3 is correct: The UDAY scheme allows states to issue bonds to take over DISCOMs’ debt,
and this borrowing is not counted towards the calculation of the state’s fiscal deficit. The rationale
behind this provision is to incentivise states to participate in the scheme and facilitate the financial
restructuring of DISCOMs without negatively impacting the state’s fiscal metrics.
Source: https://pib.gov.in/newsite/PrintRelease.aspx?relid=137254
https://www.uday.gov.in/Salient-Features.php
Subject:) Economy
Q.27) With reference to Employees State Insurance (ESI) Scheme, consider the following statements:
1. It is a self-financing health security scheme for the employees in the organized sector.
2. All the establishments employing at least 100 or more employees comes under ESI coverage.
3. It is administered by the Insurance Regulatory and Development Authority.
4. The family members of the insured employees are entitled to medical care under the scheme.
a) Only one
b) Only two
c) Only three
d) All four
Ans) b
Employees’ State Insurance Scheme of India is a multidimensional social security system aimed to
provide socio-economic protection to the employee and their dependents covered under the scheme.
The scheme was inaugurated in Kanpur on 24th February 1952.
Statement 1 is correct: Employees State Insurance (ESI) Scheme is a self-financing health security
scheme for the employees in the organized sector. The ESI scheme is funded by contributions from
both employers and employees, making it self-financing. It primarily caters to the organized sector.
The ESI Scheme is based on the Gandhian principle of “contributions as per their ability and benefits
as per the requirement”.
Statement 2 is incorrect: ESI coverage applies to all establishments employing ten or more
employees. The following establishments employing 10 or more persons attracts ESI coverage.
1) Shops
2) Hotels or restaurants not having any manufacturing activity, but only engaged in 'sales'.
3) Cinemas including preview theatres;
4) Road Motor Transport Establishments;
5) Newspaper establishments. (that is not covered as factory under Sec.2(12));
[20]
6) Private Educational Institutions (those run by individuals, trustees, societies or other
organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and
private ownership hospitals, nursing homes, diagnostic centres, pathological labs).
Statement 3 is incorrect: The scheme is administered by a statutory corporate body called the
Employees' State Insurance Corporation (ESIC). It is an autonomous body under the Ministry of
Labour and Employment. The IRDA regulates insurance companies in India, but ESI is a social
security program, not an insurance product.
Statement 4 is correct: The family members of the insured employees are entitled to medical care
under the scheme. The scheme offers comprehensive medical care for insured employees and their
dependents, including hospitalization, outpatient care, and medications.
Source: https://www.esic.gov.in/press/ESIC_FAQ_booklet.pdf
https://www.india.gov.in/spotlight/employees-state-insurance-scheme#tab=tab-3
https://vikaspedia.in/social-welfare/social-security/employees%E2%80%99-state-insurance-
scheme
Subject:) Economy
Q.28) In context of finance, the term ‘Bancassurance’ refers to:

a) A type of cryptocurrency used exclusively for banking and insurance transactions.
b) A microfinance scheme for rural entrepreneurs with secured insurance coverage.
c) A regulatory body jointly overseeing banking and insurance operations.
d) A partnership between a bank and an insurance company to sell insurance products.
Ans) d
Bancassurance is an arrangement where a bank and an insurance company form a partnership,
allowing the insurance company to sell its products to the bank’s client base. Under Section 6(1)(o)
of the Banking Regulation Act, 1949, a Government of India Notification dated August 3, 2000,
specified ‘Insurance’ as a permissible form of business that banks could undertake.
The Reserve Bank of India (RBI) has recognized ‘bancassurance’, which allows banks to provide
physical infrastructure within select branch premises to insurance companies for them to sell their
insurance products to bank customers with sufficient transparency and disclosure and in turn earn
referral fees based on the premiums collected. This would allow the banking sector’s resources to be
used more profitably.
Source: https://www.epw.in/journal/2023/14/commentary/impact-bancassurance-
%C2%A0banking-insurance-
sector.html#:~:text=Bancassurance%20is%20an%20agreement%20between%20banks%20and,branc
hes%2C%20a%20hotline%2C%20or%20internet%20banking%20platforms.
https://navi.com/blog/bancassurance/#:~:text=Bank%20of%20India.-
,The%20Reserve%20Bank%20of%20India%20(RBI)%20has%20recognised%20'bancassurance,insuran
ce%20products%20to%20bank%20customers.
Subject:) Economy
Q.29) With reference to ‘PM MITRA’, the main objective of the scheme is to-
a) provide financial assistance for small-scale entrepreneurs.
b) establish a robust infrastructure for the textile industry.
c) promote skill development in identified Tribal blocks in the country.
d) increase the minimum wages for laborers in organized sectors.
[21]
Ans) b
PM Mega Integrated Textile Region and Apparel (PM MITRA) Scheme envisages to develop integrated
large scale and modern industrial infrastructure facility for total value-chain of the textile industry
for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing
machinery industry.
It further aims to strengthen the Indian textile industry by way of enabling scale of operations, reduce
logistics cost by housing entire value chain at one location, attract investment, generate employment
and augment export potential. Government of India approved seven Pradhan Mantri Mega Integrated
Textile Regions and Apparel (PM MITRA) Parks for the Textile industry.
Potential:
1) PM MITRA Parks will offer an opportunity to create an integrated textiles value chain right from
spinning, weaving, processing/dyeing and printing to garment manufacturing at one location.
2) Integrated Textile Value chain at one location will reduce logistics cost of Industry.
3) Intended to generate ~one lakh direct and two lakh indirect employment per park.
4) Sites for PM MITRA Parks will be selected by a Challenge Method based on objective criteria.
5) Proposals for State Governments having ready availability of contiguous and encumbrance-free
land parcel of 1,000+ acres along with other textiles related facilities & ecosystem are welcome.
Source: https://www.india.gov.in/spotlight/pm-mega-integrated-textile-region-and-apparel-pm-
mitra
https://www.texmin.nic.in/sites/default/files/mitra_0.pdf
Subject:) Economy
Q.30) With reference to Indian Judiciary, which one of the following is correct regarding "Forum
Shopping"?
It refers to the practice of:
a) filing multiple public interest litigations for the same case in different courts to gain popularity.
b) deliberately choosing a specific Court or Judges by litigants to obtain a favorable outcome.
c) judges delivering judgements largely to capture media attention and gain popularity.
d) litigants filing lawsuits in tribunals rather than Courts to obtain a favorable outcome.
Ans) b
Recently the Chief Justice of India has condemned the practice of Forum Shopping. Forum shopping
can lead to injustice for the other party and create an imbalance in the workload of
different courts.
Option b is correct: Forum Shopping refers to the practice of deliberately choosing a specific Court
or Judge by litigants/lawyers for a legal case in the hope of getting a favorable outcome. In Chetak
Construction Ltd. vs. Om Prakash case, 1988, the Supreme COurt held that a litigant cannot be
permitted choice of the forum and that every attempt at forum shopping must be crushed with a
heavy hand.
Subtopic:) Forum Shopping
Q.31) What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

1. Promoting mineral exploration activities in mineral-rich districts.
2. Protecting the interests of the persons affected by mining operations.
3. Authorizing State Governments to issue licenses for mineral exploration.
[22]
a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2 and 3
Ans) b
Exp) Option b is the correct answer
Statement 2 is correct and Statement 1 and 3 are incorrect: Each District Mineral Foundation is
established by the State Governments by notification as a trust or non-profit body in the mining
operation affected districts.
They derive their legal status from section (9b) of Mines and Minerals (Development and Regulation)
Act, 1957 as amended on 26 March 2015 as Mines and Minerals (Development and Regulation)
Amendment Act, 2015.
The objective of District Mineral Foundation is to work for the interest of the benefit of the persons
and areas affected mining related operations in such manner as may be prescribed by the State
Government.
Subject:) Economy
Q.32) Consider the following statements:

Statement-I: In India, minerals like niobium and lithium can be extracted by private sector
companies.
Statement-II: The Mines and Minerals (Development and Regulation) Amendment Act 2023 delisted
six minerals from the list of atomic minerals
Which one of the following is correct in respect of the above statements?
a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for
Statement- I
b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation
for Statement-I
c) Statement-I is correct but Statement-II is incorrect
d) Statement-I is incorrect but Statement-II is correct
Ans) a
The Mines and Minerals (Development and Regulation) Amendment Act, 2023, amends the Mines
and Minerals (Development and Regulation) Act, 1957, with the aim of strengthening the exploration
and extraction of critical minerals essential for India’s economic development and national security.
Statement-I is correct: Private sector companies can extract minerals like niobium and lithium,
which are declassified as atomic minerals and are not subject to exclusive extraction by government
agencies.
Statement-II is correct: The Mines and Minerals (Development and Regulation) Amendment Act 2023
declassified six minerals (lithium, beryllium, niobium, titanium, tantalum and zirconium) from the
list of atomic minerals, allowing private sector companies to explore and extract these minerals.
Under the Mines and Minerals (Development and Regulation) Amendment Act 1957, unlike other
minerals, the exploration and extraction of atomic minerals are reserved exclusively for government
entities.
Thus, Statement-I states a fact that private sector companies can extract minerals like niobium and
lithium, which are not atomic minerals, and Statement-II explains that the Amendment Act delisted
six minerals from the atomic minerals list, allowing private sector involvement.
[23]
Source: https://prsindia.org/billtrack/the-mines-and-minerals-development-and-regulation-
amendment-bill-2023
https://www.iea.org/policies/17968-mines-and-minerals-development-regulation-amendment-
act-2023#
Subject:) Economy
Q.33) The Trademark Act,1999, governs the regime on trademark and its registration. In this context,
consider the following statements on trademark:
1. It gives registered proprietor exclusive rights to the use of the trademark in its business
2. Registered proprietor can take share of the profits made by the infringer on using his trademark.
3. Once it is registered it is valid for 20 years
4. It can be renewed by the trademark owner indefinitely
a) Only one
b) Only two
c) Only three
d) All four
Ans) c
A trademark is a legally protected symbol, word, or design that distinguishes products or services of
various companies. It's registered under the Trademarks Act, 1999, in India. Trademarks are essential
for brand identity, as they help consumers identify and differentiate products or services from various
companies.
“ Mark” includes a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape
of goods, packaging or combination of colours or any combination thereof
Statement 1 is correct: it gives the registered proprietor of the trademark the exclusive right to the
use of the trade mark in relation to the goods or services in respect of which the trademark is
registered. to obtain relief in respect of infringement of trademark in the manner provided by this
Act.
Statement 2 is correct: Registered proprietor can obtain relief in respect of infringement of
trademark in the manner provided by this Act. The person who brought the case (plaintiff) can
choose to receive money for the harm caused (damages) or a share of the profits made by the
infringer. The court can also order that the fake trademarks or labels be handed over to be destroyed
or removed.
Statement 3 is incorrect: A trademark registration in India is valid for ten years from the date of
application.
Statement 4 is correct: A trademark registration in India can be renewed indefinitely for successive
periods of ten years each, as long as the owner continues to pay the renewal fees and meets the
necessary requirements for renewal. This allows the trademark owner to maintain exclusive rights to
their mark and continue using it in commerce without expiration.
Source: https://indianexpress.com/article/explained/explained-law/what-constitutes-a-
trademark-violation-subway-vs-suberb-in-hc-8394800/
Subject:) Economy
[24]
Q.34) With reference to Start-ups ecosystem, which of the following statements best describes the
concept of ‘flipping’?
a) A situation where start-ups start selling their business to larger companies for profit
b) A strategy of relocating the holding company and intellectual property of a start-up to a foreign
jurisdiction
c) An angel investor providing initial seed money for startup businesses, usually in exchange for
ownership equity in the company
d) A strategy of restructuring a struggling start-up to improve its performance
Ans) b
Start-up flipping involves startups restructuring their corporate setup to move their holding
company and intellectual property (IP) to foreign jurisdictions for better profitability, prestige and
market access etc.
Option b is the correct answer: Startup flipping refer to a strategy where startups, originally based
in India, modify their corporate structure to relocate their holding company and intellectual
property (IP) to foreign jurisdictions such as the US or Singapore, even though most of their market,
personnel, and founders are in India. This practice is undertaken to leverage advantages offered by
foreign jurisdictions, including favourable regulatory environments, access to global markets, and
potential tax benefits.
All other options are incorrect.
Source: https://www.thehindubusinessline.com/business-laws/now-start-ups-are-flipping-in-
reverse/article67341332.ece
Subject:) Economy
Q.35) With reference to the State of World Population Report, 2023, consider the following
statements:
1. The report is published by the World Health Organization (WHO).
2. According to the report, more than three-fourths of India's population are aged between 15 and 64
years.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) d
The State of World Population (SWP) Report 2023 by United Nations Population Fund (UNFPA),
reveals that India has just surpassed China as the most populous country.
Statement 1 is incorrect: The State of World Population Report, 2023 is released by the United
Nations Population Fund (UNFPA), not by the World Health Organisation (WHO). The UNFPA is a
United Nations agency aimed at improving reproductive and maternal health worldwide.
Statement 2 is incorrect: The report finds that more than two-thirds (68%) of India’s total
population are between the ages of 15 and 64. This presents a potential demographic dividend if
education, skill development, and opportunities are provided, particularly for youth from
disadvantaged sections and women.
Subtopic:) State of World Population Report
[25]
Q.36) In context of the Indian Railways' pricing strategy, one strategy involves setting passenger fares
below the service's actual cost while freight charges are comparatively higher to offset the revenue
shortfall from the passenger segment.
This pricing mechanism is best described by which of the following options?
a) Indirect subsidies
b) Pricing Discrimination
c) Cross subsidization
d) Balanced Pricing Strategy
Ans) c
Subsidies are essential tools for governments and organizations to achieve both economic and social
objectives. They can help make essential services like public transport more affordable to the wider
population, promote social welfare, and support industries or sectors vital for the country's economy.
Option a is incorrect: Indirect Subsidies refers to the financial support that benefits a particular
group indirectly. In the context of railways, keeping passenger fares low could be seen as a form of
indirect subsidy to passengers. However, this term does not specifically address the method of
compensating for these subsidies through higher charges elsewhere, such as freight services.
Option b is incorrect: Price discrimination involves charging different prices for the same product or
service based on various criteria, such as customer segment or purchase scenario. While related to
pricing strategies, it does not capture the essence of subsidizing one service area's costs with
another's revenues within the same organization.
Option c is correct: Cross subsidization: This accurately describes the practice of using the revenue
from one service (freight in this case) to subsidize another service (passenger fares). It reflects the
strategy of balancing financial sustainability across different service lines within the same
organization, where profits from one area support the deficits of another.
Option d is incorrect: While balanced pricing strategy may seem relevant, it is not a standard term
used to describe the specific practice of offsetting low revenue from one segment with high revenue
from another within the same organization. Cross subsidization is the more accurate and widely
recognized term for this strategy.
Knowledge Base:
1) In infrastructure and public services, such as railways, subsidies and cross-subsidization practices
ensure that essential services remain accessible to all segments of society while maintaining
operational sustainability.
2) In February 2024, the Appellate Tribunal for Electricity (APTEL) ruled that Indian Railways is not a
deemed distribution licensee and is liable to pay cross subsidy surcharge (CSS) and additional
surcharge to the distribution licensees. This order implies an additional financial burden for the
Indian Railways in terms of electricity consumption.
Source:
https://forumias.com/blog/question/which-of-the-following-statements-best-describes-the-
concept-of-cross-subsidization/
https://www.thehindubusinessline.com/economy/logistics/indian-railways-liable-to-pay-cross-
subsidy-surcharge-to-discoms-
aptel/article67842354.ece#:~:text=The%20Appellate%20Tribunal%20for%20Electricity,of%20supply
%20it%20is%20situated.
https://www.livemint.com/Opinion/6CFX5Ex0CRfmeZK8RqG6hL/The-maze-of-
crosssubsidies.html
Subject:) Economy
[26]
Q.37) The Production Linked Incentive (PLI) Scheme is aimed at enhancing India's manufacturing
capabilities and exports. In light of this scheme, consider the following sectors:
1. Drones and Drone components
2. Pharmaceutical Drugs
3. Medical devices
4. White goods-AC and LED light components
5. Man made fibers and technical textiles
How many of the above sectors are included under the PLI scheme?
a) Only two
b) Only three
c) Only four
d) All five
Ans) d
The Production Linked Incentive (PLI) Scheme is a performance-linked incentive program from the
Government of India that gives companies incentives on sales of products made in India. The goal of
the PLI Scheme is to boost the manufacturing sector, reduce imports, and make Indian manufacturers
more competitive globally. The PLI scheme was announced in 2021 with an outlay of Rs 1.97 lakh crore
to encourage domestic manufacturing and enhance India's exports.
Option 1 is correct: Drones and Drone components are included under the PLI scheme. This sector
has been identified to boost domestic manufacturing of drones, which are increasingly used in various
sectors including agriculture, defence, and healthcare. The incentive aims to make India a drone hub
by 2030.
Option 2 is correct: Pharmaceutical Drugs are also included under the PLI scheme, it focuses on
promoting the domestic manufacturing of critical key starting materials (KSMs), drug intermediates,
and active pharmaceutical ingredients (APIs) to reduce dependency on imports and strengthen the
pharmaceutical supply chain.
Option 3 is correct: Medical Devices sector is targeted by the PLI scheme to encourage the
production of medical devices within the country, thereby aiming to enhance India's self-reliance in
healthcare technologies and reduce the import of expensive medical devices.
1) Option 4 is correct: White goods: AC and LED light components
White goods refer to heavy consumer durables or large home appliances, which were traditionally
available only in white. They include appliances such as washing machines, air conditioners, stoves,
refrigerators, etc. The white goods industry in India is highly concentrated. The prime objective of the
PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities,
creating economies of scale, and ensuring efficiencies. It
Option 5 is correct: Textiles sector, specifically focusing on man-made fiber (MMF) and technical
textiles, is covered under the PLI scheme to make the Indian textile industry globally competitive,
attract large investments, and boost employment generation. The scheme covers products like
trousers, bandages, shirts, pullovers, and safety airbags.
Knowledge Base:
The Production Linked Incentive (PLI) scheme includes 14 sectors –
1) Electronics: Large-scale electronics manufacturing, allied equipment for mobile phones
2) Telecom: Telecom and networking products
3) Pharma: Pharmaceuticals, key starting materials (KSMs)/drug intermediates (DIs), active
pharmaceutical ingredients (APIs)
4) White goods: AC and LED light components
5) Textiles: Textiles and apparel
6) Medical devices: Manufacturing of medical devices
7) Food processing: Food processing
[27]
8) Drones: Drones and drone components

9) Other: Auto components, aviation, chemicals, renewable energy, metals and mining
Source:
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1996964#:~:text=Incentive%20amount%20of
%20around%20Rs,Processing%20and%20Drones%20&%20Drone%20Components.
https://www.investindia.gov.in/production-linked-incentives-schemes-india
https://www.meity.gov.in/esdm/production-linked-incentive-scheme-pli-20-it-
hardware#:~:text=The%20Scheme%20shall%20extend%20an,the%20target%20segment)%20in%20I
ndia.
https://m.economictimes.com/news/economy/policy/budget-2024-govt-may-extend-scope-of-
pli-scheme-to-job-creating-
sectors/articleshow/106947261.cms#:~:text=The%20PLI%20scheme%20was%20announced,of%20R
s%201.97%20lakh%20crore.
Subject:) Economy
Q.38) Which one of the following best describes the concept of ‘Dutch Disease’?
a) A situation where stagnant economic growth and high unemployment coexist with high inflation.
b) An extremely high and typically accelerating inflation rate that erodes the real value of the local
currency.
c) A situation where increased government spending leads to a reduction in private sector investment
due to higher interest rates.
d) An economic condition where a booming natural resource sector can lead to a decline in the
development of other tradable sectors.
Ans) d
Currency fluctuations significantly impact a country's economic dynamics, influencing trade
competitiveness, investment flows, and overall economic health. For countries experiencing Dutch
Disease, the appreciation of the currency can dampen the competitiveness of non-resource sectors
like manufacturing and services.
Option a is incorrect: Stagflation is another economic phenomenon, characterized by slow economic
growth, high unemployment, and high inflation. It presents a challenging scenario for economic
policy since measures to curb inflation may worsen unemployment, and efforts to reduce
unemployment may increase inflation. Unlike Dutch Disease, stagflation does not specifically relate to
the impact of natural resource wealth.
Option b is incorrect: Hyperinflation refers to an extremely high and typically accelerating inflation
rate that severely erodes the real value of the local currency. It can lead to a loss of confidence in the
currency and significant disruptions in the economy. While hyperinflation is a critical economic issue,
it doesn't specifically deal with the economic restructuring effects associated with Dutch Disease.
Option c is incorrect: The crowding-out effect is a concept in economics suggesting that increased
government spending, especially financed by borrowing, may increase interest rates, which in turn
reduces investment by the private sector. While it's a significant phenomenon, especially in
discussions on fiscal policy and its impact on the economy, it's unrelated to the specific dynamics of
Dutch Disease.
Option d is correct: Dutch Disease describes a paradoxical economic situation that arises when a
country's sudden increase in wealth from natural resources (like oil) leads to a decline in other
sectors of the economy, particularly manufacturing. The influx of foreign currency strengthens the
country's currency, making exports more expensive and imports cheaper. This makes the
manufacturing sector less competitive both domestically and internationally, potentially leading to its
decline.
[28]
Source: https://www.investopedia.com/terms/d/dutchdisease.asp
https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Dutch-Disease
https://www.thehindu.com/business/Economy/dutch-disease/article65545285.ece
https://www.sciencedirect.com/topics/earth-and-planetary-sciences/dutch-disease
Subject:) Economy
Q.39) Consider the following statements regarding the Trade Receivables e-Discounting System
(TReDS):
1. Only MSMEs can participate as sellers in TReDS.
2. It enables sellers to discount their trade receivables from corporates, government departments,
and PSUs.
3. To set up a TReDS platform authorisation is required from SEBI.
a) Only one
b) Only two
c) All three
d) None
Ans) b
The Trade Receivables e-Discounting System (TReDS) is a significant innovation in financial
technology in India, aimed at enhancing liquidity in the MSME sector by facilitating the financing of
their trade receivables.
Statement 1 is correct: Only MSMEs can participate as sellers in TReDS. Corporates, Government
Departments, PSUs, and any other entity can participate as buyers in TReDS
The system aims to provide MSMEs with timely finance by discounting their trade receivables
through multiple financiers, improving their cash flow and reducing their dependency on traditional
banking methods.
Statement 2 is correct: TReDS is an electronic platform that enables the discounting of MSMEs' trade
receivables from corporates, government departments, and PSUs. Importantly, transactions under
TReDS are conducted without recourse to MSMEs, meaning if the buyer defaults, the financier cannot
demand repayment from the MSME seller.
Statement 3 is incorrect: Authorization is required to be obtained from RBI under the Payment and
Settlement Systems (PSS) Act, 2007 to set up and operate a TReDS platforms.
Knowledge Base:
1) By providing MSMEs with a mechanism to get their invoices discounted through a transparent
bidding process involving multiple financiers, TReDS helps in reducing the payment receivables
cycle, thereby enabling MSMEs to manage their working capital more effectively.
2) A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of
exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including
Government Departments and PSUs.
3) n TReDS, FU can be created either by the MSME seller or the buyer. If MSME seller creates it, the
process is called factoring; if the same is created by corporates or other buyers, it is called as
reverse factoring.
Source:
https://vikaspedia.in/e-governance/digital-payment/payment-systems-in-india/trade-
receivables-discounting-system-
treds#:~:text=TReDS%20is%20an%20electronic%20platform,Public%20Sector%20Undertakings%20(
PSUs).
https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=3138
https://www.champions.gov.in/MyMsme/FaqspdfURL/Q27_2.pdf
Subject:) Economy
[29]
Q.40) With reference to ‘Sand Batteries’, recently seen in news, consider the following statements:
Statement-I: Sand batteries can store more energy than the water-based energy storage systems.
Statement-II: Sand has low thermal conductivity compared to water.
Which of the following is correct in respect of the above statements?
a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for
Statement- I
b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for
Statement-I
c) Statement-I is correct but Statement-II is incorrect
d) Statement I is incorrect but Statement-II is correct
Ans) a
Finland has installed the world’s first sand battery that can store heat from renewable energy sources
for months. The Sand batteries are made of sand collected from construction sites, and can solve the
problem posed by limited storage capacity of energy, especially renewable energy.
Statement-I is correct: Sand can be heated up to 600 degrees Celsius (°C), whereas water starts to
boil at 100°C. Due to this property of sand, scientists in Finland are looking to replace water-based
energy storage systems with Sand batteries.
Statement-II is correct and explains the Statement-I: In addition to sand's superior heat retention
capacity, its lower thermal conductivity is the key factor enabling it to store substantial amounts of
energy in comparison to water. The reduced thermal conductivity of sand minimizes energy loss,
resulting in enhanced energy storage capacity when compared to water.
https://www.downtoearth.org.in/news/energy/dirt-cheap-backup-why-finland-s-installation-of-
the-world-s-1st-sand-battery-may-be-a-game-changer-87804
Subtopic:) Sand Batteries
Q.41) Capital deepening refers to:

a) going for more fixed capital per worker
b) emphasis on social overhead capita
c) constant capital-output ratio
d) increasing capital-output ratio
Ans) a
[30]
Capital deepening refers to the process of increasing the amount of fixed capital per worker. This
involves investing in additional machinery, equipment, and infrastructure. Such an augmentation of
capital per worker can lead to heightened productivity and foster economic growth.
Source: UPSC CDS 2016
Subject:) Economy
Q.42) In the context of Self-Reliant India (SRI) Fund, consider the following statements:
1. It provides equity financing to Micro, Small and Medium Enterprises (MSMEs).
2. It is funded by Small Industries Development Bank of India (SIDBI).
3. It operates based on a "Fund of Funds" model, channeling investments through daughter Funds to
the desired sector.
a) Only one
b) Only two
c) All three
d) None
Ans) b
The Self Reliant India (SRI) Fund is a Rs. 10,000 crore initiative launched by the Indian
Government. It aims to provide equity funding to viable and high-potential MSMEs (Micro, Small,
and Medium Enterprises). The fund operates through a mother-fund and daughter-fund structure,
leveraging both government and private sector contributions. Its objectives include fostering
growth, innovation, and competitiveness in the MSME sector, contributing to India’s self-reliance.
Statement 1 is correct:. The Self-Reliant India (SRI) Fund aims to address the shortage of growth
capital faced by MSMEs. It does this by providing equity financing, which allows MSMEs to raise
funds without incurring debt.
Statement 2 is incorrect: The Fund is an investment strategy of holding a portfolio of other
investment funds, rather than investing directly. In the context of AIFs, a Fund of Fund is an AIF which
invests in another AIF. Accordingly, SRI Fund will be a combination of Mother/Daughter Funds which
will leverage private equity/ other funds and thus will multiply the impact of the initial budgetary
infusion.
1) Govt. of India will be the sole anchor investor and provide an initial budgetary support of Rs.
10,000 crore to the Mother Fund in phased manner.
2) The empanelled Daughter Funds will have to raise funds from outside sources, including but not
limited to, Banks/FIs, HNIs, VCs/PEs/Institutional Investors/ PSUs/ Pension Funds/ Foreign
Developmental Institutions, etc.
Hence it is not funded by Small Industries Development Bank of India (SIDBI).
Statement 3 is correct: The fund employs a ‘Funds-of-Fund’ investment strategy. The mother-fund
(SRI Fund) invests in daughter funds, which are SEBI registered AIFs. These daughter funds then
invest at least five times the amount of capital contribution received from the SRI Fund in MSMEs.
Source: https://forumias.com/blog/self-reliant-india-fund/
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1943193
https://dcmsme.gov.in/Final%20SRI%20Operating%20Guidelines%20%20approved%20by%20Minis
ter%20%2017%2008%202021.pdf
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1943193#:~:text=SRI%20Fund%20aims%20to
%20provide,529.40%20crore.
Subject:) Economy
[31]
Q.43) Consider the following statements:

Statement I: Strategic disinvestment involves the transfer of management control of a public sector
entity to another public or private entity.
Statement II: Strategic disinvestment occurs only when the government sells its entire shareholding
in a central public sector enterprise.
Which one of the following is correct in respect of the above statements?
a) Both Statement – I and Statement – II are correct, and Statement – II is the correct explanation
for Statement – I.
b) Both Statement – I and Statement – II are correct, and Statement – II is not the correct
explanation for Statement – I.
c) Statement – I is correct, but Statement II is incorrect.
d) Statement – I is incorrect, but Statement – II is correct.
Ans) c
Disinvestment means sale or liquidation of assets by the government, usually Central and state public
sector enterprises, projects, or other fixed assets. The government undertakes disinvestment to
reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to
bridge the revenue shortfall from other regular sources.
Strategic disinvestment, as per the Department of Investment and Public Asset Management, is
rooted in the Strategic Disinvestment Policy of 2015–20. The government employs strategic
disinvestment primarily to obtain funds. These funds are channeled into financing various social
sector and developmental programs.
Statement I is correct: Strategic disinvestment refers to the process wherein the government
transfers the management control of a public sector entity to either another public entity or a
private entity. This typically involves selling a significant portion of the government's stake (50% or
more) in the entity, allowing the buyer to assume control over its operations and decision-making
processes.
Statement II is incorrect: Strategic disinvestment within Central Public Sector Enterprises (CPSE)
involves selling a substantial portion or a higher percentage as determined by the competent
authority. It can be up to 50 percent or more.
Those who own more than 51% of the share in a company is considered the owner of the company.
Source: https://economictimes.indiatimes.com/news/economy/policy/interim-budget-2024-
what-is-strategic-sale-how-is-it-different-from-
disinvestment/articleshow/73239229.cms?from=mdr
Subject:) Economy
Q.44) With reference to Real Estate (Regulation and Development) Act, 2016, consider the following
statements:
1. It is mandatory for all real estate projects to register with the Real Estate Regulatory Authority
(RERA).
2. The decisions of RERA are final and can be appealed only before the Supreme Court of India.
3. The act requires developers to maintain seperate accounts in relation to each project.
a) Only one
b) Only two
c) All three
d) None
[32]
Ans) a
Real Estate (Regulation and Development) Act (RERA) is an act passed by the Indian Parliament in 2016
for the regulation and promotion of the real estate sector in the country.
Statement 1 is incorrect: As per Real Estate (Regulation and Development) Act, 2016, it is mandatory
for most of the real estate projects to register with the Real Estate Regulatory Authority (RERA)
before advertising, selling, or marketing any property. There are some exemptions to the registration.
For eg. Chapter II (3) (2) of the Act mentions, no registration of the real estate project shall be
required— (a) where the area of land proposed to be developed does not exceed five hundred square
meters or the number of apartments proposed to be developed does not exceed eight inclusive of all
phases.
Statement 2 is incorrect: While RERA decisions are legally binding, they can be appealed. If any of
RERA’s decisions regarding a complaint is not satisfactory, the aggrieved party can submit an appeal
before the Appellate Tribunal.
Statement 3 is correct: RERA mandates that developers must maintain accounts for each project.
These accounts ensure that funds collected from buyers are utilized only for the specific project and
not diverted elsewhere.
Source:
https://www.icsi.edu/media/portals/86/bare%20acts/THE%20REAL%20ESTATE%20(REGULATIO
N%20AND%20DEVELOPMENT)%20ACT,%202016.pdf
https://www.thehindu.com/real-estate/house-building-real-estate-construction-
properties/article67325733.ece#:~:text=RERA%20aims%20to%20check%20all,in%20the%20real%20
estate%20sector.
https://www.indiacode.nic.in/handle/123456789/2158?locale=en
Subject:) Economy
Q.45) Consider the following statements regarding the ‘Central Bureau of Investigation (CBI)’:
1. It is a statutory body established under the provisions of Delhi Special Police Establishment Act,
1946.
2. High Courts can direct CBI to investigate crimes within a State even without the consent of the
State governments.
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans) b
The State Government of Tamil Nadu announced that it has withdrawn the general consent given to
the Central Bureau of Investigation (CBI), allowing the agency to investigate cases without its
permission in the State.
Statement 1 is incorrect: The Central Bureau of Investigation (CBI) was created through an executive
resolution in 1963, thus not a Statutory body. However, CBI derives its power and functions from the
Delhi Special Police Establishment Act, 1946.
Statement 2 is correct: The Supreme Court and High Courts can order the CBI to investigate a
crime anywhere in the country without the consent of the State Governments.
Subtopic:) Central Bureau of Investigation
[33]
Q.46) Consider the two Statements followed by a Question are given:

Statement-1 : Four years ago, Akash was twice as old as Chandan is now.
Statement-2: Akash is 10 years older than Chandan.
Question: If Akash is twice as old as Bhavesh, by how many years is Bhavesh older than Chandan?
Which one of the following is correct in respect of Statement and Question?
a) Statement-1 alone is sufficient to answer the Question.
b) Statement-2 alone is sufficient to answer the Question.
c) Both Statement-1 and Statement-2 are required to answer the Question.
d) Neither Statement-1 alone nor Statement-2 alone is sufficient to answer the Question.
Ans) a
Given, Akash is twice as old as Bhavesh,
We need to find the age difference between Bhavesh and Chandan,
Let's represent Akash by A, Bhavesh as B and Chandan as C
A = 2B—------(1)
Statement-1 : Four years ago, Akash was twice as old as Chandan is now.
A-4 = 2C
Put value of A from equation (1)
2B-4=2C
B-C = 2
age difference between Bimlesh and Chandan is 2 years.
Hence statement-1 alone is sufficient to answer the Question.
Statement-2: Akash is 10 years older than Chandan.
A = 10+ C
Using Equation (1)
2B = 10+C
From this we can't find out B-C
Hence Statement-2 alone is insufficient to answer the Question.
Subject:) CSAT
Subtopic:) Quantitative Aptitude
Q.47) Consider the Question and two Statements that are given below:
Statement-1: x2 - x is divisible by 4.
Statement-2: The square of (x+3) is divisible by 4.
Question: If x is a natural number, is (x+3) a multiple of 4?
Which one of the following is correct in respect of the Question and the Statements?
a) Statement–1 alone is sufficient to answer the Question
b) Statement–2 alone is sufficient to answer the Question
c) Both Statements–1 and Statement–2 are sufficient to answer the Question
d) Both Statements–1 and Statement–2 are not sufficient to answer the Question
Ans) d
Exp) Option d is the correct answer
Statement-1: If x2 - x is divisible by 4,
then x(x-1) is divisible by 4.
Since x and (x-1) are consecutive integers, one of them must be even (divisible by 2).
Therefore, their product must be divisible by 2*2 = 4
This statement implies that x is either even or odd.
If x is even, then (x+3) is odd and not divisible by 4.
If x is odd, then (x+3) is even, but we still cannot confirm if it is divisible by 4.
[34]
So, Statement-1 alone is not sufficient to answer the Question.
Statement-2: If the square of (x+3) is divisible by 4, then (x+3)2 is divisible by 4.
This implies that (x+3) is even, as the square of an odd number is always odd, and the square of an
even number is always even and divisible by 4.
However, we still cannot confirm if (x+3) is divisible by 4.
So, Statement-2 alone is not sufficient to answer the Question.
Combining both statements, we know that x(x-1) is divisible by 4 and (x+3)2 is divisible by 4. However,
we still cannot confirm if (x+3) is divisible by 4.
Thus, both Statement-1 and Statement-2 combined are not sufficient to answer the Question.
Subject:) CSAT
Subtopic:) Quantitative Aptitude
Q.48) Six movies A, B, C, D, E, F are to be released in a theatre every day. Three of the movies will be
released in the morning session before the Tea break whereas the other three will be released in the
afternoon session after the tea break. Movie B should be released immediately before movie C and
their release can’t be separated by tea break, Movie D will be released either at first or at last. Movie C
is to be released at fifth slot, Movie F is scheduled to be released immediately after D. Then which
movie will be released at last?
a) D
b) A
c) E
d) Can’t be determined.
Ans) d
Step 1: Movie C is to be released at the fifth. Movie B should be released immediately before movie C
and their release can’t be separated by tea break, So movie B will be at 4th place.
Step 2: Movie D will be released either at first or at last. Movie F is scheduled to be released
immediately after D. So D has to be at 1st place. And F will be at 2nd place
Sequence Movie
1 D
2 F
Tea break Tea break
4 B
5 C
There are two movies left A, E but we didn’t have any specific information about others. So which
movie got released at the end can’t be known.
Subject:) CSAT
Subtopic:) Logical Reasoning
[35]
Directions for the following 2 (two) items:

Read the following two passages and answer the items that follow the passages. Your answers to
these items should be based on the passages only.
Passage-I
When states maintain a clear line between nuclear and conventional weapons, reserving nuclear
weapons solely for deterrence of nuclear attacks, they help to strengthen the nuclear taboo. Ideally,
this would mean states declaring that they will never use nuclear weapons first, and backing this up
with a nuclear doctrine and force posture that does not include nuclear warfighting capabilities
Unfortunately, in recent years the trend seems to be toward weakening, rather than strengthening,
the nuclear taboo. Russia and the United States, along with some other nuclear-armed states, have
placed greater emphasis on tactical nuclear weapons—shorter-range and often lower-yield nuclear
weapons designed to be used on the battlefield. These are particularly destabilizing since they can be
perceived as more “usable” than the strategic weapons carried by intercontinental submarine-
launched ballistic missiles. When nuclear weapons are seen as tools of warfighting—such as using
tactical nuclear weapons to counter conventional military threats—the unique danger of nuclear
weapons is blurred, and the taboo is weakened. Nuclear threats also endanger the nuclear taboo.
While they do not directly violate the taboo, they eat away at its foundation, raising doubts about its
durability. Leaders who show a willingness to threaten nuclear use in any but the most dire of
circumstances undermine the sense that nuclear weapons are so unthinkably abhorrent that their use
should never be considered unless there is no question that the very existence of a state is in
immediate danger. The nuclear taboo is a norm, an unstated agreement on appropriate behavior that
is strengthened by adherence over time but is not explicitly set out anywhere and is not in any way
enforceable.
Q.49) Which of the following statements is correct as per the information provided in the passage?
a) Tactical nuclear weapons, due to their short-range and lower yield, are not considered
destabilizing in nuclear strategy.
b) The nuclear taboo is formalized in international agreements and is enforceable through legal
mechanisms.
c) Emphasizing tactical nuclear weapons blurs the distinction between nuclear and conventional
warfare, thereby weakening the nuclear taboo.
d) Nuclear threats, even if not acted upon, have no significant impact on the perception and
durability of the nuclear taboo.
Ans) c
Option a is incorrect: The passage explicitly states that tactical nuclear weapons are particularly
destabilizing because they are perceived as more "usable" than strategic weapons, contradicting the
statement that they are not considered destabilizing.
Option b is incorrect: According to the passage, the nuclear taboo is described as a norm or an
unstated agreement on appropriate behavior that is not explicitly set out anywhere and is not
enforceable, which means it is not formalized in international agreements nor enforceable through
legal mechanisms.
Option c is correct: The passage discusses how the emphasis on tactical nuclear weapons, which are
designed for battlefield use, blurs the line between nuclear and conventional warfare, leading to a
weakening of the nuclear taboo. This matches the statement in option c, making it the correct answer
as per the information provided.
Option d is incorrect: The passage suggests that nuclear threats eat away at the foundation of the
nuclear taboo and raise doubts about its durability, indicating that nuclear threats do have a
[36]
significant impact on the perception and durability of the nuclear taboo, contrary to the statement in
option d.
Subject:) CSAT
Subtopic:) Reading Comprehension
Passage-II
In contemporary discourse surrounding longevity, an often overlooked yet crucial aspect is the
concept of healthspan. This term encapsulates the duration of life characterized by robust health and
the absence of debilitating illnesses. Despite burgeoning interest in aging dynamics and lifespan
extension, the prominence of healthspan awareness remains modest, hinting at a significant lacuna in
public understanding. Grasping the significance of healthspan necessitates a nuanced comprehension
of the multifaceted notion of 'health'. This term, inherently subjective, encompasses diverse
interpretations, with some defining it as mere freedom from afflictions, while others attribute a more
comprehensive meaning, integrating elements of vitality and well-being. A consensus tends to lean
towards the latter, encompassing not just physical fitness but also mental acuity and emotional
equilibrium. The socio-economic ramifications of healthspan disparities further underscore its critical
relevance. Disparities in life expectancy across geographical regions prompt scrutiny, necessitating a
deeper exploration of the interconnectedness between healthspan and societal structures. By
prioritizing healthspan, there emerges a potential avenue to mitigate inequities and foster a more
equitable distribution of wellness resources.
However, quantifying healthspan poses a formidable challenge, exacerbated by the inadequacy of
reliable biomarkers for certain prevalent ailments. The development of metrics such as HALE (healthy
life expectancy) by organizations like the World Health Organization represents a commendable
effort towards this end. These metrics, though imperfect, offer valuable insights into the temporal
dimensions of healthspan, highlighting the sobering reality that a substantial portion of human life is
spent grappling with infirmities. Navigating the terrain of healthspan enhancement necessitates an
approach, encompassing lifestyle modifications, molecular interventions, and socio-psychological
interventions. Cultivating a holistic understanding of healthspan, coupled with concerted efforts
towards its extension, stands as an imperative in contemporary discourse on human longevity and
well-being.
Q.50) Based on the above passage, the following assumptions have been made:
1. The focus on lifespan extension often overshadows the importance of healthspan.
2. Health is a multi-dimensional concept.
3. Socio-economic factors do not significantly influence healthspan disparities.
4. Efforts to quantify healthspan may provide critical insights into the challenges of achieving
prolonged health.
How many of the above assumptions are valid?
a) Only one
b) Only two
c) Only three
d) All four
Ans) c
Statement 1 is correct: The passage highlights that while there is a increasing interest in aging and
lifespan extension, the concept of healthspan does not receive the same level of attention, indicating
a gap in public awareness and understanding.
Statement 2 is correct: The passage emphasizes that health is inherently subjective and encompasses
a broader definition that includes freedom from afflictions, vitality, mental acuity, and emotional
equilibrium, indicating that health is multi-dimensional.
[37]
Statement 3 is incorrect: The passage suggests that socio-economic factors play a crucial role in
healthspan disparities, highlighting the critical relevance of these disparities and their impact on
societal structures, which contradicts the assumption that socio-economic factors do not
significantly influence healthspan disparities.
Statement 4 is correct: It mentions the development of metrics like HALE by organizations such as
the WHO as a commendable effort towards quantifying healthspan, acknowledging that these
metrics, despite their imperfections, offer valuable insights into healthspan challenges.
Subject:) CSAT
Subtopic:) Reading Comprehension
[38]

SFG 2024 Level 2 Test 22 Solutions Eng

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SFG 2024 | LEVEL 2 | Test #22 – Solutions |

Q.1) Consider the following statements with reference to India:

Q.7) Consider the following statements with regards to disinvestment in India:

Q.8) With reference to Make in India 2.0, consider the following:

Q.9) Consider the following states:

Q.12) Consider the following:

How many of the above pairs are correctly matched?

2) It aims to bridge the digital divide in these underserved regions.

Q.17) Consider the following statements in relation to Unicorn companies:

1) Decacorn: A startup valued at over $10 billion (e.g., SpaceX)

Q.20) Consider the following statements about Udyam portal:

Q.23) With reference to Government-e-Marketplace (GeM), consider the following statements:

Q.28) In context of finance, the term ‘Bancassurance’ refers to:

Q.31) What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?

Q.32) Consider the following statements:

8) Drones: Drones and drone components

Q.41) Capital deepening refers to:

Q.43) Consider the following statements:

Q.46) Consider the two Statements followed by a Question are given:

Tea break Tea break

Directions for the following 2 (two) items:

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