Important Index and Reports: UPSC Previous Year Questions (Indian Economy)

Explanation

Ease of Doing Business Index is published by the World Bank. It is an aggregate figure that includes different parameters which define the ease of doing business in a country. It is calculated by adding up the distance to frontier ratings of various economies. The "regulatory best practices" for conducting business serve as the basis for the distance to frontier score, which compares economies based on that parameter. The index for ease of doing business is calculated based on the following indicators: Construction permits, registration, obtaining financing, tax payment mechanisms, etc.

Explanation

The Index of Eight Core Industries (ICI) is a monthly production index that measures the performance of eight crucial sectors of the Indian economy. These industries collectively account for 40.27% of the weight of items included in the Index of Industrial Production (IIP) as of September 2024. The eight core industries and their respective weights in the ICI are as follows:

Refinery Products: 28.04% Electricity: 19.85% Steel: 17.92% Coal: 10.33% Crude Oil: 8.98% Natural Gas: 6.88% Cement: 5.37% Fertilizers: 2.63%

Explanation

The World Economic Outlook (WEO) is a report by the International Monetary Fund (IMF) that analyses key parts of the IMF’s surveillance of economic developments and policies in its member countries. The World Economic Outlook (WEO) presents the IMF’s analysis and projections of global economic developments and classifies their analysis by region and stage of economic development. It is published twice a year in April and October, with updates in January and July. Other Report published by IMF: Global Financial Stability Report

Explanation

Disguised unemployment occurs when more workers are employed than necessary, contributing little to no additional output. In such cases, removing some workers would not impact overall productivity. This condition is commonly observed in the agricultural sector of developing countries, where labor redundancy is prevalent. The defining characteristic of disguised unemployment is zero marginal productivity of labor, meaning additional workers do not increase output.

Explanation

The Multidimensional Poverty Index (MPI), developed by the Oxford Poverty and Human Development Initiative (OPHI) in collaboration with the United Nations Development Programme (UNDP), is designed to measure acute poverty by evaluating multiple deprivations that individuals face across three key dimensions: health, education, and living standards.

Statement 1 is correct: The index assesses deprivations in education (such as years of schooling and school attendance), health (including child mortality and nutrition), and living standards (evaluated through indicators like access to electricity, sanitation, drinking water, housing, cooking fuel, and asset ownership).

Statement 2 is incorrect: Purchasing power parity (PPP) is an economic metric used to compare the relative value of currencies and the cost of goods across countries. The MPI focuses on non-monetary deprivations at the household level and does not incorporate national-level economic indicators like PPP.

Statement 3 is incorrect: Budget deficits and GDP growth rates are macroeconomic indicators that reflect a country’s fiscal health and economic performance. The MPI does not include these national-level metrics, as it is centered on individual and household deprivations in specific areas such as health, education, and living standards.

Explanation

The Central Statistical Organization (CSO) under the Ministry of Statistics and Programme Implementation (MoSPI) is responsible for publishing the "Energy Statistics" report from time to time. This publication provides comprehensive data on energy production, consumption, and resources in India, covering sectors like coal, petroleum, natural gas, electricity, and renewable energy. The Ministry of Statistics and Programme Implementation (MoSPI) is a government body responsible for statistical data collection, analysis, and dissemination in India. It oversees the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO). MoSPI publishes key reports like Economic Census, Energy Statistics, and National Accounts Statistics which aids in policy formulation and economic planning.

Explanation

Option (c) is correct: A Price Index measures the average change in prices of a selected basket of goods and services over time, relative to a base year. In this context, with 1960 as the base year (index value set at 100), a current price index of 330 indicates that the weighted average price of the selected items has increased by 3.3 times since 1960.

Option (a), (b) and (d) are incorrect:

A price index is based on a specific basket of goods and services and not all items in the economy. Therefore, it does not imply that all items have increased in price by 3.3 times. The price index reflects the weighted average change in prices of the entire basket and not individual selected items. The price index pertains to a broad basket of goods and services and does not provide information about specific commodities like gold.

Explanation

Option (d) is correct: The Human Development Index (HDI) is a composite statistic used to rank countries based on human development levels. It comprises three key dimensions:

Health: Assessed by life expectancy at birth, reflecting the ability to lead a long and healthy life. Education: Measured by two indicators:

Mean years of schooling: The average number of years of education received by people aged 25 and older. Expected years of schooling: The total number of years of schooling a child entering the education system can expect to receive. Standard of Living: It is evaluated by Gross National Income (GNI) per capita, adjusted for purchasing power parity (PPP), which reflects the average income of a country’s citizens.

Option (a), (b) and (c) are incorrect: HDI does not use GNP per capita, GDP or GDP per capita.