UPSC 2005 Indian Economy Questions with Answers

Explanation

Rourkela Steel Plant was established with West German collaboration, not the Soviet Union. It was India’s first public sector integrated steel plant, commissioned in 1959. The Bhilai Steel Plant was set up with Soviet assistance. The plant was a fruit of Indo-German friendship, with machinery and expertise provided by Germany’s Krupp and Demag. Options (b), (c) and (d) are correct:

Salem Steel Plant, located in Tamil Nadu, is a premier producer of stainless steel in India. It’s a unit of SAIL and specializes in producing stainless steel in various forms like coils, sheets, and blades. It caters to both domestic and international markets. Maharashtra Elektrosmelt Ltd. (MEL) is a subsidiary of SAIL located in Chandrapur, Maharashtra. It specializes in producing ferroalloys, which are critical raw materials for steel production. Ferroalloys are used to enhance the strength and durability of steel, Visakhapatnam Steel Plant also known as Vizag Steel is operated by Rashtriya Ispat Nigam Limited (RINL). It was the first shore-based steel plant in India and plays a key role in regional industrial development.

Explanation

Statement 1 is incorrect: The BSE Sensex (S&P BSE Sensex) is based on 30 of the most actively traded and financially strong stocks on the Bombay Stock Exchange (BSE), not 50.

Statement 2 is incorrect: In Sensex calculation, stocks are as-signed weightage based on free-float market capitalization, not proportional weightage. This means stocks with higher market capitalization and more freely tradable shares have a greater impact on the index.

Statement 3 is incorrect: The New York Stock Exchange (NYSE) is one of the largest stock exchanges but not the oldest. The Amsterdam Stock Exchange (Netherlands), established in 1602, is considered the world’s oldest stock exchange. As per Bombay Stock Exchange (BSE) reports, the Sensex is widely used as a benchmark index for tracking the performance of the Indian equity market.

Explanation

In India, female literacy is defined as the percent-age of females aged 7 years and above who can read, write, and understand a simple message in any language. As per the 2001 Census of India, the correct sequence of the descending order of female literacy rates for the states mentioned is:

Kerala (87.86%) Mizoram (86.75%) Goa (75.51%) Nagaland (61.46%)

Explanation

Statement 1 is incorrect: The Poverty Reduction and Growth Facility(PRGF) was actually established by the International Monetary Fund (IMF), not the International Development Association (IDA). The PRGF was the IMF’s concessional lending facility for low-income countries, aimed at supporting programs that foster durable growth and poverty reduction.The PRGF focuses on promoting sustainable economic growth and reducing poverty through concessional loans with low interest rates. It has been replaced by the Poverty Reduction and Growth Trust (PRGT).

Statement 2 is correct: The Singapore Regional Training Institute (STI) is the International Monetary Fund’s (IMF) regional training center for the Asia-Pacific region. Established in 1998, the STI aimed at enhancing the capacity of officials from the region in areas by providing training in macroeconomic analysis and policy and related subjects as a part of a programme of the IMF institute.