Previous Year UPSC Questions

Explanation

Pair 1 is incorrectly matched: Aurang is a Persian term referring to a warehouse where goods are collected before being sold.

Pair 2 is correctly matched: The term Banian (or Banyan) was used during the colonial period to refer to Indian agents or intermediaries who acted as local representatives or agents for European trading companies, including the East India Company. They helped the company in business dealings, acted as middlemen, and facilitated trade.

Pair 3 is correctly matched: A Mirasidar was a landowner or hereditary holder of land in South India under the Ryotwari settlement system. The East India Company recognized mirasdars as the only proprietors of land, dismissing tenants’ rights completely. They acted as a designated revenue payer of the state.

Explanation

The Industrial Revolution in Britain led to the mass production of textiles and other goods in Britain, which flooded the Indian market. This caused a decline in demand for Indian handicrafts which could not compete with the cheaper, machine-made British goods. This led to the ruin of traditional handicraft industries and artisans. Machine-based production in Indian textiles became more prominent after the 1850s, with the establishment of British-owned factories like the Bombay Spinning and Weaving Mill (1854). The first railway line in India was opened in 1853 between Bombay and Thane. By the latter half of the 19th century, the railway network expanded rapidly to facilitate the movement of goods (especially raw materials for British industries). British goods were often imported into India without heavy duties. British colonial policy was designed to ensure that India served as a market for British manufactured goods.

Explanation

Option 1 is correct: Nagarhole National Park is located in the Kodagu and Mysore districts of Karnataka. The Nagarahole River flows through the park which joins the Kabini River which also is a boundary between Nagarahole and Bandipur National Park.

Option 2 is incorrect: Papikonda National Park is located in the East Godavari and West Godavari districts of Andhra Pradesh. It lies in the Godavari River Basin, not the Cauvery Basin.

Option 3 is correct: Sathyamangalam Tiger Reserve (STR) is located at the confluence region of Western and Eastern Ghats, in the Erode district of the state of Tamil Nadu. In the northern part of Erode district, the Palar river flows and drains into the Cauvery river. The Bhavani River, a major tributary of the Cauvery, flows through this region.

Option 4 is correct: Kabini river, a tributary of the Cauvery river flows through the Wayanad Wildlife Sanctuary.

Explanation

Non-financial debt refers to the debt owed by entities that are not part of the financial sector, such as households, businesses, and government bodies. This type of debt includes various forms of borrowing, such as housing loans, credit card balances, and government-issued instruments like Treasury bills. Housing Loans: Housing loans taken by house-holds are considered non-financial debt because they involve borrowing money for the purchase of property, which is a physical asset. These loans are typically not tied to financial assets like stocks or bonds. Credit Card Debt: The amounts owed on credit cards are also considered non-financial debt. Credit card debt is a form of borrowing, but it is not related to financial assets, rather to consumption or goods and services. Treasury Bills: Treasury bills are short-term borrowing instruments issued by the government to generate funds. Since they are issued by the government, which is outside the financial sector, they also fall under the category of non-financial debt.

Explanation

Fort William College was established in 1800 by Lord Wellesley, the Governor-General of India in Calcutta (now Kolkata). The primary purpose of the college was to train British civil servants in Indian languages, customs, and laws to improve the efficiency of the East India Company’s administration in India. Lord Wellesley recognized that British officials often lacked knowledge of Indian languages, culture, and traditions which hindered effective governance. The college was designed to train newly recruited British civilians in Indian languages (such as Persian, Sanskrit, Arabic, and regional languages) and familiarize them with local customs and laws. He believed that a well-trained administrative cadre would help the East India Company govern India more effectively and reduce reliance on Indian intermediaries.

Explanation

Sakharam Ganesh Deuskar, originally from Maharashtra but residing in Bengal, was aligned with the ideas of Aurobindo Ghosh. He published Desher Katha in 1904, which sold over 15,000 copies before it was banned by the colonial authorities in 1910. Deuskar is also credited with introducing the Shivaji festival in Bengal. Additionally, he is believed to be the first to use the term ‘swaraj’ in a modern political context, in his 1902 pamphlet on Shivaji.

Statement 1 and 2 are correct: In overwhelming detail, the book "Desher Katha" summarised the work of M. G. Ranade and D. Naoroji in a popular idiom and warned in its concluding chapter against the colonial state’s "hypnotic conquest of the mind". "Desher Katha" had an immense repercussion in Bengal, captured the mind of young Bengal and assisted more than anything else in the preparation of the Swadeshi Movement.

Statement 3 is incorrect: Deuskar uses the word ‘desh’ in the context of the whole country.

Explanation

Gopal Baba Walangkar (1840-1900) was also known as Gopal Krishna, born into a family of the untouchable Mahar caste in Maharashtra. Gopal Baba Walangkar developed a racial theory to explain the oppression and also published the first journal targeted at the untouchable people. Vital-Vidhvansak (Destroyer of Brahmanical or Ceremonial Pollution), published in 1888 by Walangkar, was among the first journals targeted at the Dalit community, started publishing in 1888. He also wrote articles for Marathi-language newspapers such as Sudharak and Deenbandhu, as well as composed couplets in Marathi that were intended to inspire the people.

Explanation

Statement 1 is correct: India has historically faced a trade deficit in merchandise trade, meaning that the value of merchandise imports exceeds the value of merchandise exports. This is primarily due to India’s reliance on imports of crude oil, gold, electronics, and machinery, which are higher in value compared to its exports of textiles, gems, jewelry, and pharmaceuticals.

Statement 2 is incorrect: India’s imports of iron and steel, chemicals, fertilisers, and machinery have not decreased in recent years. These imports have remained significant due to domestic demand and industrial requirements. For example, India imports a large quantity of fertilisers to meet agricultural needs and machinery for industrial and infrastructure development.

Statement 3 is correct: India has a surplus in services trade, meaning that the value of services exports (e.g., IT services, software, business process outsourcing) exceeds the value of services imports. The services sector is a major contributor to India’s economy and helps offset the trade deficit in merchandise trade.

Statement 4 is correct: India typically has a current account deficit, although the size of the deficit can vary from year to year. The current account includes merchandise trade, services trade, and other flows like remittances and investment income. Even though India has a surplus in services trade, the deficit in merchandise trade generally outweighs it resulting in an overall current account deficit. Table: Trade during December 2024 December 2024 (USD Billion) December 2023 (USD Billion) Merchandise Exports 38.01 38.39 Imports 59.95 57.15 Services* Exports 32.66 31.63 Imports 17.50 15.63 Total Trade (Merchandise + Services)* Exports 70.67 70.02 Imports 77.44 72.78 Trade Balance -6.78 -2.76

Explanation

Option (a) is incorrect: While Foreign Direct Investment (FDI) can involve capital instruments like equity shares, it is not limited to listed companies. FDI typically involves acquiring a significant ownership stake (usually 10% or more) in a company, giving the investor management control or influence over business operations. FDI can occur in both listed and unlisted companies and often includes investments in infrastructure, manufacturing units, or joint ventures. In contrast, investments primarily in listed companies without control are characteristic of Foreign Portfolio Investment (FPI), which is passive and doesn’t provide managerial influence.

Option (b) is correct: FDI involves equity investment, meaning investors acquire ownership or a significant interest in a company. Since it doesn’t require repayment like loans, it is considered a non-debt capital flow, contributing positively to the host country’s economy without creating debt obligations.

Option (c) is incorrect: Debt-servicing refers to making interest and principal payments on loans. FDI doesn’t involve such obligations, as it is equity-based. Debt-servicing is more relevant to External Commercial Borrowings (ECBs) or other loan-based investment

Option (d) is incorrect: The investment can be made in equities or equity linked instruments or debt instruments issued by the company. Thus, FDI isn’t directly associated with government securities.

Explanation

Statement 1 is incorrect: As per the Aadhaar Act, 2016, metadata cannot be stored beyond six months, not three months.

Statement 2 is correct: The Supreme Court struck down Section 57 of the Aadhaar Act, which allowed private entities to use Aadhaar for authentication or to enter into contracts involving Aadhaar data. The Supreme Court ruling (2018) restricted Aadhaar data sharing with private entities, ensuring privacy and limiting government contracts with private corporations.

Statement 3 is incorrect: Aadhaar is not mandatory for purchasing insurance products as per IRDAI guidelines.

Statement 4 is correct: Aadhaar is required for availing benefits funded by the Consolidated Fund of India, as per Section 7 of the Aadhaar Act.