Expected Questions on Economics 2018 – Part 2 (Set - 2) (Download PDF)

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👌 Export of Marine Food Products: Gujarat is the top producer, Andhra Pradesh is the second largest producer, In addition, Goa is the third largest producer, Among the union territories, Andaman and Nicobar and Dam and Diu are also important producers.

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Expected Questions on Economics 2018 - UPSC IAS Prelims (Part 2) (In English)

Dr. Manishika Jain discusses Expected Questions on Economics 2018 for IAS Prelims Part 2

  • In the world, USA and Vietnam are two key importers from India followed by Japan.

  • Marine fish production of Gujarat (in Thousand Tones):

    • 2015 - 16: 697.33

    • 2016 - 17: 723.83

  • Marine fish production of Andhra Pradesh (in Thousand Tones):

    • 2015 - 16: 520.27

    • 2016 - 17: 538.60

Socio Economic and Caste Census 2011- Revision of Cost

  • The SECC -2011 project was concluded spending a large sum of money on poverty alleviation and welfare programs in rural and urban areas.

  • SECC paves the way for better targeting of the poor and evidence based targeted intervention.

  • SECC ranks households based on their socio economic status.

  • Provides names and number of families in each Panchayat with status on seven deprivation parameters.

  • Provides for program specific priority list suiting program objective.

  • Bias in BPL list affected coverage of poorest of the poor.

India’s Look East Policy- SASEC Road Connectivity Investment Program (Tranche 2)

  • Cabinet approval for upgradation and widening of 65 km of Imphal-Moreh Section of NH-39 in Manipur.

  • Manipur is a landlocked state with 90 % of the area under difficult terrain.

  • Hence, road transport only viable mass transport system.

  • Improve connectivity between Imphal with the eastern state.

  • NH-39 to be widened to 4-lane between Lilong village and Wanginj village.

  • Stretch between Wanginj villages to Khongkhang to be upgraded to 2 lane with paved shoulder.

  • Project will reduce average travel time by 40 % saving fuel cost

Disinvestment of Air India and Five of Its Subsidiaries

  • Cabinet Committee on Economic Affairs given its approval based on the recommendations of Core Group of Secretaries on Disinvestment (CGD).

  • Fourth tranche recommendation of NITI Aayog on strategic disinvestment of CPSE.

Constitution of an Air India-specific Alternative Mechanism headed by Minister of Finance to decide the following:

  • Treatment of unsustainable debt

  • India Hiving off of certain assets to a shell company

  • Demerger and strategic disinvestment of three profit-making subsidiaries

  • The quantum of disinvestment

  • The universe of bidders

IOC, BPCL, HPCL Going to Set World’s Largest Refinery

  • Public Sector Oil Marketing Companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum signed the agreement to jointly set up the world’s largest refinery and petrochemical complex.

  • 👌 Refinery will be developed at Ratnagiri district of Maharashtra.

  • In the new complex Indian Oil Corp (IOC) will hold 50 % stake.

  • Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) will hold 25%- 25 % respectively.

  • Refinery will be completed by 2022 at the estimated cost of Rs. 3 lakh crore and with capacity of 60 million tons.

  • Refinery complex will have three crude 20 million tons units.

Trade Comparison between Indian and China

  • 👌 China is India’s largest trading partner with bilateral trade at $71.5 billion skewed in favor of China.

  • India imports $61.3 billion worth of Chinese products while it exports $10.2 billion.

  • From - $37.2 billion in 2011 - 12, trade deficit has widened in the last six years to - $51.1 billion.

  • US and Europe taking measures to protect themselves against Chinese dumping.

  • There is also qualitative skew in trade balance.

Trade deficit:

  • Chinese exports to India dominated by value-added products like mobile phones, plastics, electrical goods, machinery and parts.

  • In contrast, India’s exports to China are raw materials like ores, cotton and mineral fuels.

Can India Boycott Chinese Goods?

  • Capital goods dominate India’s import from China.

  • A boycott would force Indian firms to buy costly products denting growth.

India and Bangladesh to Construct Bridge Along Mizoram Border on Karnaphuli River

  • India and Bangladesh to construct a bridge over Mizoram’s Khawthlangtuipui river (Karnaphuli river) for trade and communication.

  • This was decided in a meet in Tlabung town in Mamit district of Mizoram adjacent to Khagrachari district of Southeast Bangladesh.

  • Expected to be constructed as closer as possible to the nearest custom station located in the Bangladesh side.

  • Expected to serve as an important link between India and Bangladesh.

India Poised to Be Economic Growth Pole

  • Research conducted by the Centre for International Development at Harvard University (CID).

  • India will be economic pole of global growth with the economic pole of global growth having moved from China to India.

  • With 7.7 % annual growth, India and Uganda top the list.

What is Growth Pole?

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Perroux Growth Pole Theory: Fundamentals of Geography

In this session, Dr. Manishika will explain the concept of Perroux Growth Pole Theory, dynamic and propulsive firms, backward and forward linkages.

  • Central idea is that economic development, or growth is not uniform- takes place around a specific pole (or cluster).

  • Characterized by core (key) industries around which related industries develop.

  • Sectors include automotive, aeronautical, agribusiness, electronics, steel, petrochemical, etc.

  • Direct effects happen when core industry purchases goods and services from its suppliers.

  • Indirect effects involve the demand for goods and services by people employed by the core and linked industries.

  • Transportation plays a significant role in this process.

Growth of Domestic and Foreign Tourist Visits During 2016

  • Top domestic tourism in Tamil Nadu, UP, AP and MP

  • Tamil Nadu topped in both domestic and foreign tourists

  • The top three States/UTs where growth rates of domestic tourist visits were increased during 2016 are:

    • Madhya Pradesh (93)

    • Punjab (50.03)

    • Andaman & Nicobar Island (29.62)

  • Total growth of foreign tourist visits during 2016 is 87.02 % of top 10 States.

  • The top three States where growth rates of foreign tourist visits is raised during 2016 are:

    • Punjab (172.21)

    • Sikkim (71.55)

    • Chhattisgarh (44.2)

👌 India’s First Indigenously Build L&T Yard 55000 (Floating Dock – FDN 2) Launched

  • India’s first indigenously (self-build) Floating Dock (FDN-2) for the Indian Navy was launched at Larsen & Toubro Ltd (L&T) Shipyard at Kattupalli, Chennai.

  • Floating Dock is a self-designed and built platform with state of the art machinery & control systems.

  • It is capable of docking warships of up to 8000 Tons displacement.

  • Floating Dock has high capacity Ballast Pumps and advanced automated Ballast Control System.

  • The dock covers with the FDN-2 which able for repair & refit activities in rainy weather conditions.

India’s First Private Railway: Habibganj

  • Habibganj railway station is located at border of Bhopal.

  • It will be the public-private partnership (PPP) mode railway station.

  • Main aim: To make Habibganj railway station with world-class transit hub which has all facilities.

  • Bansal Group is based in Bhopal will operate and maintain the railway station for a period of 8 years after winning bid in 2016.

  • Redevelop the station with four commercial land parcels.

  • To make Habibganj a commercial hub with shops, offices and hotels within three years.

India’s Fast Growing Economy Growth Goes Down

  • India registered 7.1 % growth in the financial year 2016 - 17 which was 8 % in 2015 - 16.

  • India registered GDP growth of 6.1 % in the fourth quarter of 2016 - 17.

  • It was lower compared to China’s 6.9%, so India lost fastest growing economy tag.

  • Gross value added (GVA) growth is decline as it was 6.6 % for 2016 – 17.

  • GDP growth rate was somewhat reported higher due to increase in proportionate in indirect tax net of subsidies.

  • Gross Value Added (GVA) is based on supply or production of economy.

  • Demonetisation drive of the government in November 2016 was the major step of GOI.

Consumer Protection in India 2nd Session of Intergovernmental Experts on Consumer Protection Law

  • “Report on national and regional implementation of the United Nations Guidelines for consumer protection”.

  • Essential function of the UN Guidelines: To assist countries in building and strengthening a comprehensive consumer policy framework.

  • Non-binding on countries but crucial in shaping national legislative and institutional responses to consumer issues.

  • Significant number of guidelines used by India.

  • Task force for studying UNGCP identifying areas future actions.

👌 India, Hong Kong Sign Double Tax Agreement

  • India and Hong Kong signed agreement for:

    • Avoidance of double taxation

    • Prevention of fiscal evasion w. r. t. taxes on income.

  • Hong Kong is former British colony.

  • It is special administrative region of China which enjoys an independent taxation system.

  • It is an important financial and trading partner of India.

  • Improve transparency in tax matters and will help curb tax evasion and tax avoidance.

  • This agreement will give protection against double taxation to over 1, 500 Indian companies and businesses.

CCEA Approves Bulk Export of All Edible Oils

  • Cabinet Committee on Economic Affairs (CCEA) approved for removal of prohibition on export of all varieties of edible oils except mustard oil.

  • Proposal was forwarded by Ministry of Commerce & Industry.

  • CCEA approved empowering Committee, review the export and import policy on all varieties of edible oils.

  • Mandated to review export of edible oils in consumer packs and deliberate MEP from time to time.

US Challenges India’s Export Subsidy Programs at WTO

  • US Trade Representative (USTR) challenged Indian export subsidy schemes at World Trade Organization (WTO).

  • These programs harm its manufacturing sector and workers by creating an uneven playing field.

  • At least half a dozen Indian programs provide financial benefits to Indian exporters.

  • Allow them to sell their goods more cheaply to detriment of US workers and manufacturers.

  • These programs are Merchandise Exports from India Scheme (MEIS).

  • India’s exemption has expired, but India has not withdrawn its export subsidies.

  • It has increased size and scope of these programs.

Index of Eight Core Industries (Base: 201 - 12 = 100) June, 2017

  • Eight Core Industries comprise 40.27 % of the weight of items included in the Index of Industrial Production (IIP).

  • Combined index of Eight Core Industries stands at 121.0 in June, 2017.

  • 0.4 % higher compared to the index of June, 2016.

  • Cumulative growth of 2.4 % during April to June, 2017 - 18.

👌 Production cumulative index:

  • Coal: increased by 0.2 % during April to June, 2017 - 18 over previous year.

  • Crude Oil: increased by 0.2 % during April to June, 2017 - 18 over previous year.

  • Natural Gas: increased by 4.3 % during April to June, 2017 - 18 over previous year.

  • Petroleum Refinery: increased by 1.8 % during April to June, 2017 - 18 over previous year.

  • Fertilizer: declined by 1.9 % during April to June, 2017 - 18 over previous year.

  • Steel: increased by 6.2 % during April to June, 2017 - 18 over previous year.

  • Cement: declined by 2.9 % during April to June, 2017 - 18 over previous year.

  • Electricity: increased by 4.9 % during April to June, 2017 - 18 over previous year.

Core Sector Grows at 6.7 % in January 2018

  • According to index of eight core industries released by Ministry of Commerce and Industry.

  • Core sector growth grown at faster pace of 6.7 % in January.

  • Eight core sectors grown by 4.2 % in December 2017 and 7.4 % in November 2017.

IIP Expands at 7.5 % in January 2018

  • According to data released by the Central Statistics Office (CSO):

    • India’s factory output, measured by Index of Industrial Production (IIP)

    • Recorded overall 7.5 % growth in January 2018

    • Indicates early signs of industrial revival

  • Factory output grew at 7.1 % in December 2017.

  • Cumulative IIP growth for period of April-January over corresponding period of previous year was 4.1%.

  • IIP composite indicator measures short-term changes in volume of production of basket of industrial products.

India Attracts $209 Billion FDI in 2014 - 2017: Government

  • India attracted reaching US $208.99 billion foreign direct investment (FDI) during April 2014 to December 2017 period.

  • Main sectors that received maximum FDI include services, computer software and hardware, telecommunications, construction, trading and automobile.

  • Foreign investments considered crucial for India as it needs around 1 trillion dollars for servicing.

  • Its infrastructure sector such as ports, airports and highways to boost growth.

  • Strong inflow of foreign investments helps to improve country’s balance of payments (BoP) situation.

Indian, French Companies Ink Pacts Worth 13 Billion Euros

  • Indian and French companies exchanged 19 contracts and agreements.

  • Worth over 13 billion euros in sectors including:

    • new and renewable energy

    • smart grid

    • nuclear energy

    • aviation

    • cement

    • telecom among others.

  • Agreements were formalized at Indo-French Economic Partnership (IFEP).

India-China Trade Hits Record $84.4 Billion in 2017

  • According to data of Chinese General Administration of Customs India-China bilateral trade reached $84.44 billion last year.

  • Historic high with 18.63 % year-on-year growth rate.

  • This is regarded as historic landmark in bilateral relations of both countries.

  • Volume of bilateral trade for first time touched $80 billion, well above the $71.18 billion registered in 2016.

  • India emerged as 7th largest export destination for Chinese products.

  • India’s imports and exports:

    • It has increased by 39.11 % year-on-year to $16.34 billion in 2017.

    • India’s imports from China have increased by 14.59 % to $68.10 billion.

  • India’s trade deficit: Continues to remain high at $51.75 billion, registering a growth of 8.55 % year-on-year in 2017.

👌 Iraq Overtakes Saudi Arabia as India’s Biggest Oil Supplier

  • Iraq overtaken Saudi Arabia to become India’s top crude oil supplier by supplying 38.9 million tons (MT) crude oil in the current financial year.

  • It was fifth of the India’s oil needs.

  • India is 80 % dependent on imports to meet its oil needs.

  • India imported 184.4 MT of crude oil during April-January period of 2017 - 18 period.

  • This is the second year in a row that Iran has occupied the third position.

  • Saudi Arabia traditionally has been India’s top oil source but Iraq dethroned it.

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Expected Questions on Economics 2018 - UPSC IAS Prelims (Part 2) (In Hindi)

Dr. Manishika Jain discusses Expected Questions on Economics 2018 for IAS Prelims Part 2

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- Published/Last Modified on: May 11, 2018

Economy

Monthy-updated, fully-solved, large current affairs-2019 question bank(more than 2000 problems): Quickly cover most-important current-affairs questions with pointwise explanations especially designed for IAS, NTA-NET, Bank-PO and other competetive exams.