Previous Year UPSC Questions

Explanation

Bhuvan (means Earth in Sanskrit) is a Geoportal of ISRO, to evince the Indian Earth Observation capabilities from the Indian Remote Sensing (IRS) series of satellites. It is an interactive versatile Earth-Browser which showcases multi-sensor, mutli-platform and multitemporal images with capabilities to overlay thematic information along with near real-time information from Automatic Weather Stations (AWS), Potential Fishing Zone (PFZ) information, disaster support related information like forest fire alerts, periodic agricultural drought assessment etc. Bhuvan provides 2D/3D imaging and visualization of India’s geographic data. It allows users to access and analyze spatial information, similar to Google Earth, but with a focus on Indian data and applications such as urban planning, agriculture, and disaster management. But due to security concerns, the images available do not include any military installations in India.

Explanation

The National Investment Fund (NIF) was created in India to receive the proceeds from the disinvestment of public sector undertakings (PSUs). The idea was to use these funds strategically for social sector development and investment.

Statement 1 is incorrect: the NIF’s assets were managed by selected public sector mutual funds, namely UTI Asset Management Company Ltd., SBI Funds Management Private Ltd., and LIC Mutual Fund Asset Management Company Ltd., not directly by the Union Ministry of Finance.

Statement 2 is incorrect: The NIF was kept outside the Consolidated Fund of India. This was done to ensure that the disinvestment proceeds were used for their intended purpose (social sector development) and not simply absorbed into general government expenditure.

Statement 3 is correct: The Government appoints Asset Management Companies (AMCs) from the public sector to manage the fund.

Statement 4 is correct: 75% of the annual income from NIF is allocated to social sector schemes (education, health, employment). 25% is used for capital investment in profitable/ revivable CPSEs to support their expansion and diversification.

Explanation

India receives significant FDI from Mauritius primarily due to the Double Taxation Avoidance Agreement (DTAA) between the two countries. DTAA is a tax treaty that prevents individuals/entities from being taxed twice on the same income. It promotes cross-border investments by offering tax relief. Historically, this agreement allowed Mauritius-based investors to route investments into India with tax benefits, leading to higher FDI flows compared to countries like the UK and France. India has DTAA with several countries, including Mauritius, Singapore, USA, UK, Germany, Japan, Canada, France, Australia, Netherlands, China, and Bangladesh. India does not have DTAA with Afghanistan, Iraq, and Pakistan.

Explanation

Tamil Nadu is a leading producer of mill-made cotton yarn in India due to the availability of a rich pool of skilled labor, which is crucial for operating the state’s large textile industry. The state has a long tradition of textile manufacturing, supported by well-developed infrastructure and favorable government policies.

Statement 1 is incorrect: Black cotton soil is often considered ideal for cultivating cotton because of its moisture-retaining properties. However, this soil type is not predominant in Tamil Nadu. Instead, black cotton soil is commonly found in states like Maharashtra, Gujarat, and Madhya Pradesh. The cotton used in Tamil Nadu’s mills is primarily sourced from these cotton-growing regions, rather than being grown locally on black cotton soil.

Statement 2 is correct: Tamil Nadu has a long-established tradition in textile manufacturing. The state is renowned for its skilled and semi-skilled workers who efficiently manage complex mill operations, machinery, and quality control. This expertise is one of the major reasons behind its leading position in the cotton yarn industry.

Explanation

The Covenanted Civil Service of India, later known as the Indian Civil Service, was created by Lord Cornwallis during his tenure as Governor-General (1786-1793). He reorganized India’s administration, introducing a system where British recruits were sent to India as high-paid administrators with various privileges. Civil Services in British India were classified as covenanted and uncovenanted services on the basis of the nature of work, pay-scales and appointing authority.

Explanation

The "Instrument of Instructions" from the Government of India Act of 1935 were important guidelines from the British Government. They directed the Governors in British India on how to use their discretionary powers. In 1950, these guidelines influenced the Directive Principles of State Policy in the Constitution of India (Part IV). These principles help the State create laws and policies that improve people’s welfare and build a fair and just society.

Explanation

Pair 1 is correctly matched: Bhitarkanika National Park is well-known for its population of Saltwater Crocodiles (Crocodylus porosus), which are the largest living reptiles in the world. The park is located in the Kendrapara district of Odisha and is home to a significant number of these crocodiles. It also has rich biodiversity, including mangroves and various bird species.

Pair 2 is correctly matched: Desert National Park is well-known for being a habitat of the critically endangered Great Indian Bustard, a large bird species. The National Park is located in Jaisalmer and Barmer district of Rajasthan.

Pair 3 is incorrectly matched: Eravikulam National Park in Kerala is known for its population of Nilgiri Tahr, not the Hoolock Gibbon. The Hoolock Gibbon (Hoolock hoolock) is found in parts of Northeast India and in the forests of Assam, Meghalaya, and Arunachal Pradesh, not in Kerala.

Explanation

Statement 1 is correct: National Parks in India are designated under the Wildlife Protection Act, 1972, and their boundaries are clearly defined by legal statutes. This is done to ensure strict protection and conservation of biodiversity, and no human activity is allowed within the park unless specifically authorized.

Statement 2 is incorrect. Biosphere Reserves, designated under the Man and Biosphere Reserves Programme of UNESCO started in 1971 by the Ministry of Environment and Climate Change (MoEFCC). Biosphere Reserves are established to conserve biodiversity in its entirety, not just a few specific species. These reserves focus on both species and ecosystems in a sustainable manner, including human communities. They aim for ecological conservation, research, and sustainable use of natural resources.

Statement 3 is correct: In Wildlife Sanctuaries, human activity and biotic interference are allowed in certain circumstances, like grazing or collection of non-timber forest products, as long as they do not harm the wildlife or environment. The level of interference is regulated based on the sanctuary’s management plan.

Explanation

The Ramsar Convention on Wetlands is an international treaty focused on the conservation and sustainable use of wet-lands worldwide. It promotes the ecosystem approach to con-serve wetland sites while ensuring their sustainable use, aiming to preserve ecosystem services like flood regulation, water purification, and biodiversity habitat, while benefiting local communities economically and socially. The Convention’s mission is to support the conservation and wise use of wetlands through local, national, and international efforts to achieve sustainable devel-opment globally. The Ramsar Convention was signed on February 2, 1971, in Ramsar, Iran. India became a party to the convention and has since designated several wetlands as Ramsar sites to protect and sustainably manage these ecologically important areas.

Explanation

The CRR is the percentage of a bank’s total deposits that it must keep as reserves with the RBI in the form of cash. This is a monetary policy tool used by the RBI to control liquidity in the economy. This amount cannot be used for lending or investment by banks. When the RBI increases the CRR, banks are required to keep a higher proportion of their deposits as reserves. This reduces the amount of money available with banks for lending to businesses and individuals.

Option (b) is incorrect: RBI does not lend money to the public or businesses. It only regulates the money supply through tools like CRR.

Option (c) is incorrect: The Union Government’s borrowing and lending activities are separate from the RBI’s monetary policy tools like CRR.

Option (d) is incorrect: An increase in CRR reduces (not increases) the amount of money available for lending by commercial banks.