Ayussh Sanghi is teaching live on Unacademy Plus
UPSC Prelims 2017 Analysis -Indian Economy (Static/Dynamic) -- and Current Affairs
About UPSC Prelims 2017 The civil services preliminary examination held on Sunday is being touted as the toughest in the last five years with the candidates' conceptual understanding of the issues tested making those with superficial memory of facts losing out. Those who had gone through the India Year Book and Economic Survey thoroughly could get a hang of the test as most questions were framed from them.
Economy Economics had around 19 questions. Mostly based on Current Affairs
Q.1 Which of the following statements best describes the-term Scheme for Q1 Which of thefollwing statements best descrbes the term Scheme for Sustainable Structuring of Stressed Assets (S4A), recently seen in the news? (a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government (b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties. (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings. (d) It is an important provision in The Insolvency and Bankruptcy Code' recently implemented by the Government.
Answer and Explanation Ans. b Exp: In order to strengthen the lenders' ability to deal with stressed assets and to put real assets back on track by providing an avenue for reworking the financial structure of entities facing genuine difficulties, the Reserve Bank of India has issued guidelines on a 'Scheme for Sustainable Structuring of Stressed Assets'.
Difficulty level+ Why was it asked? Easy Reason- NPA problem has been constantly in news. Thus the question. RBI issued notification regarding this scheme on June 13, 2016.
Q.2 The Global Infrastructure Facility is a/an (a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank. (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital. (c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private nvestment (d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world
Answer and Explanation Ans. B Exp: The World Bank (WB) has launched the GIF to specifically cater to the infrastructure needs of the emerging economies and developing countries. The GIF will channel money towards bankable infrastructure project in such countries. GIF also places importance on sustainable development. Its key focus will be on climate friendly infrastructure investments and projects that will boost trade. Key Objectives: Mobilizing the private sector: Concentrating on financing and implementation modalities that draw together the comparative advantages of the public and private sectors to expand investment and improve infrastructure services Collaborating for best results: Mobilizing partners technical and financial resources in an innovative and flexible way to achieve greater leverage and address the complex infrastructure financing challenges that are beyond the resources of any individual partner.
Difficulty level+ Why was it asked? Medium UPSC has been constantly asking questions on International organizations such as World Bank, IMF and others. Reports related to them and their subsidiary agencies have been appearing in nearly every Prelims since 2011
Q. 3 With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct? 1. It is an organ of NITI Aayog. 2. It has a corpus of Rs. 4,00,000 crore at present. Select the correct answer using the code given below (a) 1 only (b) 2 only (c) Both 1 and 2 oth1 and 2 (d) Neither 1 nor 2
Answer and Explanation Ans: d Exp: NIIF has been structured as a fund of funds and set up as Category II Alternate Investment Fund (AIF) under the Securities and Exchange Board of India (SEBI) Regulations. Total corpus of the fund is Rs. 40000 Crore.
Answer and Explanation Ans: a Exp: Fiscal Deficit has decreased in the last decade.
Q.5 Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO's Bali Ministerial Package of 2013. 3. TFA came into force in January 2016 Which of the statements given above is/are correct? a) 1 and 2 only b) 1 and 3 only c) 2 and 3 only d) 1, 2 and3
Answer and Explanation Ans: a Exp: WTO members concluded negotiations at the 2013 Bali Ministerial Conference on the landmark Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017 following its ratification by two-thirds of the WTO membership The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
Difficulty level+ Why was it asked? Hard. Current affairs Static combination. WTO questions are a regular affair in UPSC Prelims. WTo questions are a regular afair in UPSC Prelims
Q4 Broad based Trad and investnent Agreenent(B s smetines seen in the news in the context of negotiations held between India and a) European Union b) Gulf Cooperation Council c) Organization for Economic Cooperation and Development d) Shanghai Cooperation Organization
Answer and Explanation Ans: a Exp: The EU and India have been negotiating an ambitious Broad-based Trade and Investment Agreement since 2007.