India News
Leave a comment

UPSC Essentials subject-wise quiz : Economy (Week 164)

UPSC Essentials subject-wise quiz : Economy (Week 164)


UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on the Economy to check your progress.

🚨 Click Here to read the UPSC Essentials magazine for May 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨

1. Under the new SARTHAK-PDS framework, two existing schemes — financial support for intra-state movement of foodgrains and FPS dealer margins under the National Food Security Act (NFSA), and the SMART PDS programme focused on technology reforms — have been merged.

2. The scheme is intended to modernise the existing public distribution system instead of replacing it.

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

Relevance: This is important for UPSC Prelims because food security and welfare delivery mechanisms can be asked in UPSC Prelims. UPSC often asks factual questions on scheme objectives, institutional reforms, and technology-driven governance initiatives.

Explanation

— The Union Cabinet on Wednesday approved the continuation of the SARTHAK-PDS programme for another five years, with a total allocation of Rs 25,530 crore up to March 2031. The step comes at a time when the Centre is looking to deepen technology-driven reforms in the public distribution system across the country.

Story continues below this ad

— The Cabinet has also approved revised norms for Central assistance to states and union territories towards intra-state transportation and handling of foodgrains. It has also revised the norms of margins for fair price shop (FPS) dealers, while keeping the existing funding structure unchanged.

— Under the new SARTHAK-PDS framework, two existing schemes — financial support for intra-state movement of foodgrains and FPS dealer margins under the National Food Security Act (NFSA), and the SMART PDS programme focused on technology reforms — have been merged. By merging the two initiatives, the government aims to create a single administrative structure for improving foodgrain distribution and strengthening implementation of the NFSA. Hence, statement 1 is correct.

— The government said the scheme is intended to modernise the existing public distribution system instead of replacing it. The reforms are expected to address issues linked to logistics, handling of foodgrains, transportation efficiency and grievance redressal mechanisms. Hence, statement 2 is correct.

— SARTHAK-PDS has been structured around two objectives — ensuring continuous financial support for foodgrain movement and dealer margins, while building an integrated and citizen-oriented PDS network with interoperable systems across states and union territories.

Therefore, option (c) is the correct answer.

Story continues below this ad

QUESTION 2

With reference to the Pax Silica initiative, consider the following statements:

1. It is a US-led initiative.

2. India became a signatory to the Pax Silica initiative.

3. The initiative aims to counter China’s dominance in new age sectors such as Artificial Intelligence.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Relevance: It is relevant for understanding competition in emerging sectors like Artificial Intelligence, semiconductors, and critical technology supply chains involving countries such as India, United States, and China. UPSC often asks factual questions on new global technology initiatives, strategic alliances, and India’s participation in them.

Explanation

— Months after the US announced India’s inclusion into Pax Silica, a Washington-led initiative to counter China’s dominance in new age sectors such as Artificial Intelligence (AI), India and the US on Tuesday signed a bilateral India-US Critical Minerals Framework, focusing on securing the supply, mining, and processing of critical minerals and rare earth elements. Hence, statements 1 and 3 are correct.

Story continues below this ad

— “The Framework builds on continuing India – U.S. cooperation aimed at strengthening supply chain security in critical sectors. On 20 February 2026, India became a signatory to the U.S.–led Pax Silica initiative. India also signed a Joint Statement on the “India-U.S. AI Opportunity Partnership” as a bilateral addendum to the Declaration, the Ministry of External Affairs said. Hence, statement 2 is correct.

— Under the India-US TRUST (“Transforming the Relationship Utilising Strategic Technology”) initiative, both countries agreed to strengthen trusted and resilient supply chains in sectors such as semiconductors, critical minerals, advanced materials, and pharmaceuticals.

Therefore, option (d) is the correct answer.

QUESTION 3

The Government of India levies Special Additional Excise Duty (SAED) on:

(a) petroleum products and crude oil

(b) agricultural produce and food grains

(c) pharmaceutical products and medical devices

(d) textiles and electronic goods

Relevance: This is important for UPSC Prelims because taxation and fiscal policy are frequently asked under Indian Economy and government revenue mechanisms. It is relevant for understanding how the government manages windfall gains, energy pricing, and revenue mobilisation in sectors like Special Additional Excise Duty.

Explanation

Story continues below this ad

— With the surge in global crude oil and fuel prices straining oil marketing companies’ (OMCs) finances, the government has slashed the Special Additional Excise Duty (SAED) on petrol and diesel by Rs 10 per litre each on Friday (March 27). The move is aimed at keeping the retail prices of the two fuels in check amid the global price shock.

— The Special Additional Excise Duty (SAED) is a specialised tax levied by the Indian government on petroleum products and crude oil.

Therefore, option (a) is the correct answer.

QUESTION 4

Consider the following statements:

1. India is the largest cotton producer in the world.

2. India relies on imports for about 15% of its raw cotton and about 20% of its yarn to meet demand.

3. The cotton production has stagnated for years largely due to a lack of new seeds, modern irrigation facilities, and frequent pest attacks.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Story continues below this ad

Relevance: This is important for UPSC Prelims because cotton is a major cash crop linked to Indian agriculture, textiles, and exports. UPSC often asks factual and conceptual questions on crop production trends, agricultural constraints, and textile sector linkages.

Explanation

— The union government is set to remove the 11% duty on cotton till October to offer relief to the textile manufacturers facing increased input cost from fuel to polyesters in the backdrop of the West Asia crisis, sources aware of the development told The Indian Express.

— India is the second-largest cotton producer after China, but relies on imports for about 15% of its raw cotton and about 20% of its yarn to meet demand. However, India’s cotton production has been declining due to a range of policy failures. Experts said that cotton production has stagnated for years largely due to a lack of new seeds, modern irrigation facilities, and frequent pest attacks and diseases. Hence, statement 1 is not correct and statements 2 and 3 are correct.

Therefore, option (b) is the correct answer.

QUESTION 5

In India, which of the following factors are considered for calculating the minimum wage?

1. Nature of the work

2. Skill level

3. Cost of living

4. Expenditure on health and education

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 1, 2 and 3

(c) 3 and 4 only

(d) 2, 3 and 4

Story continues below this ad

Relevance: This is important for UPSC Prelims because labour welfare and wage regulation are frequently asked under Indian Polity, Economy, and social justice. UPSC often frames conceptual questions on minimum wage, living wage, labour codes, and wage fixation criteria.

Explanation

— The need to align minimum wage with real living costs has also gained traction among top policymakers. The Union Ministry of Labour and Employment, for instance, is discussing the concept of a living wage, which factors in expenditure on health and education that is currently excluded from minimum wage calculations.

— In India, minimum wage calculations are primarily based on the Minimum Wages Act, 1948, which mandates that employers pay at least the minimum wage as fixed by the central or state governments. These wages are typically calculated on a 26-day month basis. The calculation considers factors like the nature of the work, skill level, and cost of living, including components like basic wages, cost of living allowance (Variable Dearness Allowance), and potentially the value of concessions for essential commodities.

Therefore, option (b) is the correct answer.

(Other Source: clc.gov.in)

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 156)

Daily subject-wise quiz — Polity and Governance (Week 164)

Daily subject-wise quiz —  Science and Technology (Week 164)

Daily subject-wise quiz — Economy (Week 163)

Daily subject-wise quiz — Environment and Geography (Week 163)

Daily subject-wise quiz – International Relations (Week 163)

Story continues below this ad

Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.

Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.





Disclaimer: We do not own any of the content, ideas, images, or text presented here. All rights belong to their respective owners. For more information and to view the original source, please visit the following link:

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *