Human Development and Sustainable Development: UPSC Previous Year Questions (Indian Economy)

Explanation

Statement-I is correct: India’s public health system has historically been more focused on curative care (treating diseases after they occur) rather than preventive care (stopping diseases before they occur), promotive care (improving overall health and well-being), and rehabilitative care (helping patients recover after illness or injury). Statement-II is correct: India follows a decentralized approach to health care delivery. The responsibility for organizing and delivering health services lies primarily with the state governments. The central government plays a supportive role by providing policy guidance, funding, and technical assistance. The Constitution of India places health care under the State List (List II) which means states have the primary responsibility for health services. The central government’s role is largely limited to national health programs, policy formulation, and funding through schemes like the National Health Mission (NHM). Statement-II is not the correct explanation for Statement-I: The decentralized nature of health care delivery (Statement-II) does not inherently explain why the system focuses more on curative care (Statement-I). The focus on curative care is more related to historical priorities, resource allocation, and systemic challenges rather than the decentralized structure.

Explanation

Statements 1 and 3 are correct: WaterCredit is a powerful solution and puts microfinance tools to work in the water and sanitation sector. It helps bring small loans to those who need access to affordable financing and expert resources to make household water and toilet solutions a reality.

Statement 2 is incorrect: WaterCredit is not launched by the WHO or the World Bank. It is an initiative of Water.org, a non-profit organization co-founded by Gary White and Matt Da-mon. While it may collaborate with various global partners, it is not directly under the aegis of these organizations.

Explanation

According to the World Bank, Poverty is pronounced deprivation in well-being and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. The new extreme poverty line of $2.15 per person per day, which replaces the $1.90 poverty line, is based on 2017 PPPs

Option (b) is correct: The official poverty line in India is determined based on the minimum income required to meet basic consumption needs, primarily food, adjusted for other essentials like housing, education, and healthcare. Since the cost of living and price levels differ across states due to factors like inflation, regional disparities, and market conditions, the poverty line is higher in states where the price levels are higher. For instance, states with higher urbanization or living costs like Maharashtra or Delhi might have a higher poverty line compared to states with lower living costs like Bihar or Odisha.

Explanation

Human capital formation refers to the process of improving the knowledge, skills, and capacities of people, which enhances their productivity and contributes to economic growth. This involves education, training, healthcare, and other investments in people.

Statement 2 is correct: It directly reflects the essence of human capital formation, which focuses on increasing the knowledge, skill levels, and capacities of individuals.

Statement 4 is correct: Human capital is considered intangible wealth, as it represents non-physical assets like skills, education, and health, which contribute to economic productivity. Statements 1 and 3 are incorrect: These refer to the accumulation of physical or tangible capital (like machinery, infrastructure), which is different from human capital.

Explanation

Capital formation refers to the accumulation of physical assets like machinery, tools, and infrastructure, which are expected to boost production.

Option (d) is correct: Even in a high-saving economy, if the capital-output ratio is high, it means that a large amount of capital is required to produce a small increase in output. This indicates inefficient use of capital or diminishing returns on investment, leading to limited growth in output despite increased savings and investments. Options (a), (b) and (c) are incorrect: While weak administration, illiteracy, and high population density can slow economic growth by affecting governance, workforce skills, and resource allocation, they don’t directly influence how efficiently invested capital is converted into output--this efficiency is specifically measured by the capital-output ratio.

Explanation

Statement 1 is incorrect: The National Career Service (NCS) is an initiative of the Directorate General of Employment, Ministry of Labour and Employment, not the Department of Personnel and Training.NCS offers dynamic job matching, career counselling, job notifications, vocational guidance, and information on skill development courses and internships.

Statement 2 is incorrect: It was launched in 2015 as a mission-mode project under the E-Governance Plan. It aims to bridge the gap between job-seekers and employers, as well as candidates seeking training and career guidance and agencies providing these services. It is for everyone seeking a job not just for the uneducated. It provides career counseling as well as skill and training if needed.

Explanation

All State Government employees joining the services after the date of notification by the respective State Governments are eligible for National Pension System (NPS). After the Central Government’s adoption of the NPS in 2004, many State Governments have also implemented the NPS for their employees joining after the respective notification dates. Options (a), (b) and (d) are incorrect:

National Pension System (NPS) is not limited to resident Indian citizens. It is open to all Indian citizens, including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) provided they meet the age and KYC requirements. The NPS allows individuals between the ages of 18 and 70 (not only 21 to 55)to join. There is no upper age limit for years of age at the time of application. NPS was made mandatory for all Central Government employees (except the Armed Forces) joining services on or after January 1, 2004 and not April 1, 2004.

Explanation

Pradhan Mantri MUDRA Yojana (PMMY) launched in 2015 by the Government of India, provides collateral-free institutional loans up to Rs. 10 lakhs for small business enterprises. The scheme aims to bring enterprises into the formal financial system. Mantri MUDRA Yojana (PMMY) offers three loan products:

Shishu: Loans up to Rs. 50,000 Kishore: Loans between Rs. 50,000 and Rs. 5 lakh Tarun: Loans between Rs. 5 lakh and Rs. 10 lakh An increase in the loan limit to 20 lakh was announced during the Union Budget 2024-25 To strengthen support for aspiring entrepreneurs.

Explanation

Demographic dividend refers to the potential economic boost a country can experience when it has a higher proportion of working-age people relative to non-working de-pendents, provided there are sufficient jobs and investments in health, education, and skills.

Option (a) is correct: To fully benefit from the demographic dividend, India must ensure its young and growing workforce is equipped with the right skills and training. A skilled workforce increases productivity, drives economic growth, and makes the most of the working-age population before it begins to age.

Option (b) is incorrect: While social security schemes improve welfare and reduce poverty, they do not directly enhance the productivity or employability of the workforce, which is essential to harness the demographic dividend.

Option (c) is incorrect: Lowering infant mortality is crucial for improving public health and quality of life, but it doesn’t directly impact the current working-age population’s productivity, which is key to leveraging the demographic dividend.

Option (d) is incorrect: Privatizing higher education might improve access and quality in some cases, but without widespread, affordable, and inclusive education and vocational training, it won’t address the broader need for skill development across the population.

Explanation

Statement 1 is incorrect: The National Rural Livelihood Mission (NRLM) does not focus on setting up new manufacturing industries or agribusiness centers directly. Its primary focus is on promoting self-employment and organization of the rural poor through self-help groups (SHGs).

Statement 2 is correct: NRLM aims to strengthen self-help groups (SHGs) and provide skill development to enhance the livelihood options of the rural poor.

Statement 3 is incorrect: NRLM does not involve the free distribution of agricultural inputs like seeds, fertilizers, or irrigation equipment. These activities are covered under different agricultural schemes.