Nature of the Indian Economy and Economic Reforms

by Vidyaar
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Q20. TRYSEM, the Training of Rural Youth for Self-Employment programme, belonged to which field?

[UPPSC Civil Service Prelims 2014]

(A) Rural development

(B) Industrial development

(C) Urban development

(D) Defence development

Answer: (A) Rural development

Explanation: TRYSEM provided skills for young people from economically disadvantaged rural households to help create self-employment opportunities. It formed part of earlier poverty-alleviation and rural livelihoods efforts rather than urban industrial or defence planning.

Q19. Under which Prime Minister was the New Economic Policy of liberalisation, privatisation and globalisation announced?

[UPPSC Civil Service Prelims 2013]

(A) Rajiv Gandhi

(B) V. P. Singh

(C) P. V. Narasimha Rao

(D) Atal Bihari Vajpayee

Answer: (C) P. V. Narasimha Rao

Explanation: The New Economic Policy was announced under Prime Minister P. V. Narasimha Rao in 1991, with Finance Minister Manmohan Singh leading major fiscal and structural measures. The programme aimed to restore external stability and enhance competitiveness.

Q18. Who belonged to the National Development Council:
1 Prime Minister;
2 Finance Commission Chairman;
3 Union Cabinet Ministers;
4 State Chief Ministers?

[UPSC CSE Prelims 2013]

(A) 1, 2 and 3 only

(B) 1, 3 and 4 only

(C) 2 and 4 only

(D) All four

Answer: (B) 1, 3 and 4 only

Explanation: The Council brought together the Prime Minister, Union Cabinet ministers and Chief Ministers to coordinate national economic planning. The Chairman of the Finance Commission was not a member in the grouping tested, making statements 1, 3 and 4 correct.

Q17. Which of the following was NOT a constitutional body?

[UPPSC Civil Service Prelims 2013]

(A) Union Public Service Commission

(B) State Public Service Commission

(C) Finance Commission

(D) Planning Commission

Answer: (D) Planning Commission

Explanation: The UPSC and state public service commissions derive from constitutional provisions, as does the Finance Commission. The Planning Commission, by contrast, was established through an executive resolution in 1950 and was not created by the Constitution.

Q16. Which measures are parts of inclusive governance:
(1) letting NBFCs operate as banks;
(2) effective district planning committees;
(3) higher public-health spending;
(4) stronger midday meals?

[UPSC CSE Prelims 2012]

(A) 1 and 2 only

(B) 3 and 4 only

(C) 2, 3 and 4 only

(D) All four

Answer: (C) 2, 3 and 4 only

Explanation: Inclusive governance improves access to public services and participation in decision-making. District planning, public health and school nutrition support those aims. Simply converting non-bank finance companies into banks does not itself represent an inclusive-governance measure.

Q15. Who served as Secretary of the former National Development Council?

[CGPSC Prelims 2011]

(A) Secretary in the Union Finance Ministry

(B) Secretary in the Ministry of Planning

(C) Secretary of the Planning Commission

(D) Secretary of the Finance Commission

Answer: (C) Secretary of the Planning Commission

Explanation: The Secretary of the Planning Commission also acted as Secretary to the National Development Council. This reflected the administrative linkage between the body that prepared Five-Year Plans and the forum that reviewed their national and state implications.

Q14. In which Five-Year Plan did industrial policy shift toward infrastructure and away from heavy-industry primacy?

[UPSC CSE Prelims 2010]

(A) Fourth

(B) Sixth

(C) Eighth

(D) Tenth

Answer: (C) Eighth

Explanation: The Eighth Plan of 1992–97 followed the 1991 reform programme. Greater attention to infrastructure and private participation distinguished its strategy from earlier planning approaches led primarily by public investment in heavy industrial capacity.

Q13. Under the Constitution, who causes Finance Commission recommendations to be laid before Parliament?

[UPSC CSE Prelims 2010]

(A) President of India

(B) Lok Sabha Speaker

(C) Prime Minister

(D) Union Finance Minister

Answer: (A) President of India

Explanation: Article 281 makes the President responsible for placing Finance Commission recommendations, with an explanatory memorandum, before both Houses. Although the Finance Ministry administers fiscal policy, this particular constitutional obligation rests with the President.

Q12. Which was NOT an explicit core element of inclusive growth in the Eleventh Five-Year Plan?

[UPSC CSE Prelims 2010]

(A) Reducing poverty

(B) Increasing job opportunities

(C) Strengthening capital markets

(D) Reducing gender disparity

Answer: (C) Strengthening capital markets

Explanation: The Eleventh Plan emphasised inclusion through poverty reduction, employment, health, education and gender equity. Strengthening capital markets can support finance generally, but it was not among the specific social-inclusion priorities tested here.

Q11. Evaluate: Assertion — the Planning Commission functioned as an economic cabinet for both Union and states;
Reason — it formulated Five-Year Plans to use national resources in a balanced manner.

[UPPSC Mains 2010]

(A) Both true, and Reason explains Assertion

(B) Both true, but Reason does not explain Assertion

(C) Assertion true, Reason false

(D) Assertion false, Reason true

Answer: (B) Both true, but Reason does not explain Assertion

Explanation: The Commission had a broad advisory and coordinating role covering Union and state development, and it formulated national plans. Although the reason is correct, the description economic cabinet reflects its overall influence, not merely the task of preparing plans.

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