DAY – 47 : Insta 75 Days Revision Plan-2025 : Economy

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• Question 1 of 30 1. Question 1 points With reference to the ‘Aatmanirbharta in Pulses’ mission announced in the Union Budget 2025-26, consider the following: It is a 6-year mission focusing exclusively on increasing the production of Tur (Arhar) dal. Key components include developing climate-resilient seeds and ensuring remunerative prices for farmers. The mission aims to achieve self-sufficiency solely through increasing the Minimum Support Price (MSP) for targeted pulses. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: B Statement 1 is incorrect. While the mission focuses on pulses, it specifically targets Tur, Urad, and Masoor, not exclusively Tur. It is also mentioned as a 6-year mission. Statement 2 is correct. The key components explicitly mentioned include developing climate-resilient seeds, enhancing protein content, increasing productivity, improving post-harvest storage, and ensuring remunerative prices for farmers. Statement 3 is incorrect. While ensuring remunerative prices is a component, the mission involves a multi-faceted approach including seed development, productivity enhancement, and storage improvements, not solely relying on MSP increases. Incorrect Solution: B Statement 1 is incorrect. While the mission focuses on pulses, it specifically targets Tur, Urad, and Masoor, not exclusively Tur. It is also mentioned as a 6-year mission. Statement 2 is correct. The key components explicitly mentioned include developing climate-resilient seeds, enhancing protein content, increasing productivity, improving post-harvest storage, and ensuring remunerative prices for farmers. Statement 3 is incorrect. While ensuring remunerative prices is a component, the mission involves a multi-faceted approach including seed development, productivity enhancement, and storage improvements, not solely relying on MSP increases.

#### 1. Question

With reference to the ‘Aatmanirbharta in Pulses’ mission announced in the Union Budget 2025-26, consider the following:

• It is a 6-year mission focusing exclusively on increasing the production of Tur (Arhar) dal.

• Key components include developing climate-resilient seeds and ensuring remunerative prices for farmers.

• The mission aims to achieve self-sufficiency solely through increasing the Minimum Support Price (MSP) for targeted pulses.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: B

• Statement 1 is incorrect. While the mission focuses on pulses, it specifically targets Tur, Urad, and Masoor, not exclusively Tur. It is also mentioned as a 6-year mission.

• Statement 2 is correct. The key components explicitly mentioned include developing climate-resilient seeds, enhancing protein content, increasing productivity, improving post-harvest storage, and ensuring remunerative prices for farmers.

• Statement 3 is incorrect. While ensuring remunerative prices is a component, the mission involves a multi-faceted approach including seed development, productivity enhancement, and storage improvements, not solely relying on MSP increases.

Solution: B

• Statement 1 is incorrect. While the mission focuses on pulses, it specifically targets Tur, Urad, and Masoor, not exclusively Tur. It is also mentioned as a 6-year mission.

• Question 2 of 30 2. Question 1 points The Union Budget 2025-26 proposes several measures to boost the MSME sector. Which of the following accurately reflects these proposals? Doubling the investment and turnover limits used for the classification of all MSMEs (Micro, Small, and Medium). Launching a scheme providing term loans up to ₹5 crore for 10 lakh first-time entrepreneurs, with a focus on SC/ST/Women. Increasing the credit guarantee cover under CGTMSE to ₹10 crore for Micro and Small Enterprises (MSEs). Select the correct answer using the code given below: (a) 1 and 3 only (b) 3 only (c) 1, 2 and 3 (d) 1 only Correct Solution: A Statement 1 is correct. The budget proposes that investment and turnover limits for MSME classification will be at least doubled. Statement 2 is incorrect. The scheme for first-time entrepreneurs targets 5 lakh beneficiaries (not 10 lakh) and provides term loans up to ₹2 crore (not ₹5 crore), with a focus on women, SCs, and STs. Statement 3 is correct. The budget enhances credit guarantee cover, increasing it from ₹5 crore to ₹10 crore for MSEs. (It also increases it to ₹20 crore for Startups and exporter MSMEs). Incorrect Solution: A Statement 1 is correct. The budget proposes that investment and turnover limits for MSME classification will be at least doubled. Statement 2 is incorrect. The scheme for first-time entrepreneurs targets 5 lakh beneficiaries (not 10 lakh) and provides term loans up to ₹2 crore (not ₹5 crore), with a focus on women, SCs, and STs. Statement 3 is correct. The budget enhances credit guarantee cover, increasing it from ₹5 crore to ₹10 crore for MSEs. (It also increases it to ₹20 crore for Startups and exporter MSMEs).

#### 2. Question

The Union Budget 2025-26 proposes several measures to boost the MSME sector. Which of the following accurately reflects these proposals?

• Doubling the investment and turnover limits used for the classification of all MSMEs (Micro, Small, and Medium).

• Launching a scheme providing term loans up to ₹5 crore for 10 lakh first-time entrepreneurs, with a focus on SC/ST/Women.

• Increasing the credit guarantee cover under CGTMSE to ₹10 crore for Micro and Small Enterprises (MSEs).

Select the correct answer using the code given below:

• (a) 1 and 3 only

• (b) 3 only

• (c) 1, 2 and 3

• (d) 1 only

Solution: A

• Statement 1 is correct. The budget proposes that investment and turnover limits for MSME classification will be at least doubled.

• Statement 2 is incorrect. The scheme for first-time entrepreneurs targets 5 lakh beneficiaries (not 10 lakh) and provides term loans up to ₹2 crore (not ₹5 crore), with a focus on women, SCs, and STs.

• Statement 3 is correct. The budget enhances credit guarantee cover, increasing it from ₹5 crore to ₹10 crore for MSEs. (It also increases it to ₹20 crore for Startups and exporter MSMEs).

Solution: A

• Statement 1 is correct. The budget proposes that investment and turnover limits for MSME classification will be at least doubled.

• Question 3 of 30 3. Question 1 points The Union Budget 2025-26 announced the ‘Nuclear Energy Mission for Viksit Bharat’. Which of the following is/are preconditions or key enablers for this mission as mentioned in the budget documents? An immediate allocation of ₹20,000 crore exclusively for importing Small Modular Reactor (SMR) technology. Amendments to the Atomic Energy Act, 1962. Amendments to the Civil Liability for Nuclear Damage Act, 2010. Establishment of a new public sector undertaking dedicated solely to SMR development. Select the correct answer using the code given below: (a) 1 and 4 only (b) 2 and 3 only (c) 1, 2 and 3 only (d) 2, 3 and 4 only Correct Solution: B Statement 1 is incorrect. While an outlay of ₹20,000 crore is associated with the Nuclear Energy Mission focusing on SMR development , the budget documents state this outlay supports the mission, not exclusively for importing technology. The mission aims for development, potentially involving domestic capabilities. Statement 2 is correct. The budget explicitly states that amendments to the Atomic Energy Act will be taken up to facilitate active partnership with the private sector. Statement 3 is correct. Similarly, amendments to the Civil Liability for Nuclear Damage Act are mentioned as necessary to enable private sector participation. Statement 4 is incorrect. The budget emphasizes enabling private sector partnership through legislative amendments, not necessarily creating a new PSU. Incorrect Solution: B Statement 1 is incorrect. While an outlay of ₹20,000 crore is associated with the Nuclear Energy Mission focusing on SMR development , the budget documents state this outlay supports the mission, not exclusively for importing technology. The mission aims for development, potentially involving domestic capabilities. Statement 2 is correct. The budget explicitly states that amendments to the Atomic Energy Act will be taken up to facilitate active partnership with the private sector. Statement 3 is correct. Similarly, amendments to the Civil Liability for Nuclear Damage Act are mentioned as necessary to enable private sector participation. Statement 4 is incorrect. The budget emphasizes enabling private sector partnership through legislative amendments, not necessarily creating a new PSU.

#### 3. Question

The Union Budget 2025-26 announced the ‘Nuclear Energy Mission for Viksit Bharat’. Which of the following is/are preconditions or key enablers for this mission as mentioned in the budget documents?

• An immediate allocation of ₹20,000 crore exclusively for importing Small Modular Reactor (SMR) technology.

• Amendments to the Atomic Energy Act, 1962.

• Amendments to the Civil Liability for Nuclear Damage Act, 2010.

• Establishment of a new public sector undertaking dedicated solely to SMR development.

Select the correct answer using the code given below:

• (a) 1 and 4 only

• (b) 2 and 3 only

• (c) 1, 2 and 3 only

• (d) 2, 3 and 4 only

Solution: B

• Statement 1 is incorrect. While an outlay of ₹20,000 crore is associated with the Nuclear Energy Mission focusing on SMR development , the budget documents state this outlay supports the mission, not exclusively for importing technology. The mission aims for development, potentially involving domestic capabilities.

• Statement 2 is correct. The budget explicitly states that amendments to the Atomic Energy Act will be taken up to facilitate active partnership with the private sector.

• Statement 3 is correct. Similarly, amendments to the Civil Liability for Nuclear Damage Act are mentioned as necessary to enable private sector participation.

• Statement 4 is incorrect. The budget emphasizes enabling private sector partnership through legislative amendments, not necessarily creating a new PSU.

Solution: B

• Statement 2 is correct. The budget explicitly states that amendments to the Atomic Energy Act will be taken up to facilitate active partnership with the private sector.

• Statement 3 is correct. Similarly, amendments to the Civil Liability for Nuclear Damage Act are mentioned as necessary to enable private sector participation.

• Statement 4 is incorrect. The budget emphasizes enabling private sector partnership through legislative amendments, not necessarily creating a new PSU.

• Question 4 of 30 4. Question 1 points The Union Budget 2025-26 introduced significant changes to the New Income Tax Regime. Consider the following implications: The changes effectively make the Old Tax Regime redundant for all taxpayers earning above ₹7 lakh per annum. A salaried individual earning ₹12.75 lakh per annum will have zero tax liability under the revised New Tax Regime. The standard deduction limit has been increased, but it is applicable only to taxpayers opting for the Old Tax Regime. Which of the statements given above is/are correct? (a) 2 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3 Correct Solution: A Statement 1 is incorrect. While the New Tax Regime has been made significantly more attractive, the Old Tax Regime (with its various deductions like HRA, 80C, 80D etc.) remains an option. For individuals with substantial investments/expenses eligible for deductions under the old regime, it might still be beneficial. The budget does not make it redundant. Statement 2 is correct. The budget provides a 100% tax rebate for taxable income up to ₹12 lakh under the new regime. For salaried individuals, a standard deduction of ₹75,000 is applicable under the new regime. Therefore, an individual with a gross salary of ₹12.75 lakh would have a taxable income of ₹12 lakh (12.75 – 0.75), resulting in zero tax liability due to the rebate. Statement 3 is incorrect. The standard deduction for salaried individuals and pensioners has been increased from ₹50,000 to ₹75,000 , and this enhanced deduction is applicable under the New Tax Regime as well, contributing to the higher effective tax-free limit mentioned in statement 2. Incorrect Solution: A Statement 1 is incorrect. While the New Tax Regime has been made significantly more attractive, the Old Tax Regime (with its various deductions like HRA, 80C, 80D etc.) remains an option. For individuals with substantial investments/expenses eligible for deductions under the old regime, it might still be beneficial. The budget does not make it redundant. Statement 2 is correct. The budget provides a 100% tax rebate for taxable income up to ₹12 lakh under the new regime. For salaried individuals, a standard deduction of ₹75,000 is applicable under the new regime. Therefore, an individual with a gross salary of ₹12.75 lakh would have a taxable income of ₹12 lakh (12.75 – 0.75), resulting in zero tax liability due to the rebate. Statement 3 is incorrect. The standard deduction for salaried individuals and pensioners has been increased from ₹50,000 to ₹75,000 , and this enhanced deduction is applicable under the New Tax Regime as well, contributing to the higher effective tax-free limit mentioned in statement 2.

#### 4. Question

The Union Budget 2025-26 introduced significant changes to the New Income Tax Regime. Consider the following implications:

• The changes effectively make the Old Tax Regime redundant for all taxpayers earning above ₹7 lakh per annum.

• A salaried individual earning ₹12.75 lakh per annum will have zero tax liability under the revised New Tax Regime.

• The standard deduction limit has been increased, but it is applicable only to taxpayers opting for the Old Tax Regime.

Which of the statements given above is/are correct?

• (a) 2 only

• (b) 1 and 2 only

• (c) 2 and 3 only

• (d) 1, 2 and 3

Solution: A

• Statement 1 is incorrect. While the New Tax Regime has been made significantly more attractive, the Old Tax Regime (with its various deductions like HRA, 80C, 80D etc.) remains an option. For individuals with substantial investments/expenses eligible for deductions under the old regime, it might still be beneficial. The budget does not make it redundant.

• Statement 2 is correct. The budget provides a 100% tax rebate for taxable income up to ₹12 lakh under the new regime. For salaried individuals, a standard deduction of ₹75,000 is applicable under the new regime. Therefore, an individual with a gross salary of ₹12.75 lakh would have a taxable income of ₹12 lakh (12.75 – 0.75), resulting in zero tax liability due to the rebate.

• Statement 3 is incorrect. The standard deduction for salaried individuals and pensioners has been increased from ₹50,000 to ₹75,000 , and this enhanced deduction is applicable under the New Tax Regime as well, contributing to the higher effective tax-free limit mentioned in statement 2.

Solution: A

• Question 5 of 30 5. Question 1 points The Economic Survey 2024-25 highlights “Geo-Economic Fragmentation (GEF)” as a key global reality impacting India. Which of the following can be inferred as potential consequences or necessary responses for India, based on the Survey’s discussion? A guaranteed increase in India’s merchandise exports due to shifting global supply chains. Increased relative importance of domestic drivers of growth compared to external demand. A reduced need for maintaining high foreign exchange reserves due to lower global integration. An automatic advantage for India over China in attracting manufacturing investments. Select the correct answer using the code given below: (a) 2 only (b) 1 and 2 only (c) 2 and 4 only (d) 1, 3 and 4 only Correct Solution: A Statement 1 is incorrect. GEF involves realignments and potential protectionism. While supply chains might shift (friend-shoring/near-shoring ), it doesn’t guarantee an increase in India’s exports; it presents both opportunities and challenges (like increased competition, lower access to some markets ). Statement 2 is correct. The Survey explicitly states that the passing of the era of rapid world trade growth means domestic growth levers will be relatively more important than external ones in the coming years. Reinvigorating domestic levers is a key recommendation. Statement 3 is incorrect. GEF implies increased global uncertainty and potential volatility. High forex reserves provide a crucial buffer against external shocks and maintain macroeconomic stability in such an environment, making them arguably more important, not less. Statement 4 is incorrect. The Survey acknowledges the ‘China Challenge’ and China’s manufacturing prowess. GEF doesn’t automatically confer an advantage; India needs significant reforms (like deregulation) and investment to compete effectively for manufacturing investments. Incorrect Solution: A Statement 1 is incorrect. GEF involves realignments and potential protectionism. While supply chains might shift (friend-shoring/near-shoring ), it doesn’t guarantee an increase in India’s exports; it presents both opportunities and challenges (like increased competition, lower access to some markets ). Statement 2 is correct. The Survey explicitly states that the passing of the era of rapid world trade growth means domestic growth levers will be relatively more important than external ones in the coming years. Reinvigorating domestic levers is a key recommendation. Statement 3 is incorrect. GEF implies increased global uncertainty and potential volatility. High forex reserves provide a crucial buffer against external shocks and maintain macroeconomic stability in such an environment, making them arguably more important, not less. Statement 4 is incorrect. The Survey acknowledges the ‘China Challenge’ and China’s manufacturing prowess. GEF doesn’t automatically confer an advantage; India needs significant reforms (like deregulation) and investment to compete effectively for manufacturing investments.

#### 5. Question

The Economic Survey 2024-25 highlights “Geo-Economic Fragmentation (GEF)” as a key global reality impacting India. Which of the following can be inferred as potential consequences or necessary responses for India, based on the Survey’s discussion?

• A guaranteed increase in India’s merchandise exports due to shifting global supply chains.

• Increased relative importance of domestic drivers of growth compared to external demand.

• A reduced need for maintaining high foreign exchange reserves due to lower global integration.

• An automatic advantage for India over China in attracting manufacturing investments.

Select the correct answer using the code given below:

• (a) 2 only

• (b) 1 and 2 only

• (c) 2 and 4 only

• (d) 1, 3 and 4 only

Solution: A

• Statement 1 is incorrect. GEF involves realignments and potential protectionism. While supply chains might shift (friend-shoring/near-shoring ), it doesn’t guarantee an increase in India’s exports; it presents both opportunities and challenges (like increased competition, lower access to some markets ).

• Statement 2 is correct. The Survey explicitly states that the passing of the era of rapid world trade growth means domestic growth levers will be relatively more important than external ones in the coming years. Reinvigorating domestic levers is a key recommendation.

• Statement 3 is incorrect. GEF implies increased global uncertainty and potential volatility. High forex reserves provide a crucial buffer against external shocks and maintain macroeconomic stability in such an environment, making them arguably more important, not less.

• Statement 4 is incorrect. The Survey acknowledges the ‘China Challenge’ and China’s manufacturing prowess. GEF doesn’t automatically confer an advantage; India needs significant reforms (like deregulation) and investment to compete effectively for manufacturing investments.

Solution: A

• Question 6 of 30 6. Question 1 points The Economic Survey 2024-25 strongly advocates for “Systematic Deregulation” to foster a “Mittelstand” in India. Consider the rationale presented: Large enterprises are disproportionately burdened by existing regulations compared to MSMEs. Deregulation is primarily needed to simplify export procedures for small firms. Many Indian firms deliberately remain small to avoid regulatory compliance complexities and costs. The primary goal of creating a Mittelstand is to increase the share of the public sector in manufacturing. Which of the statements given above accurately reflects the Survey’s reasoning? (a) 3 only (b) 1 and 3 only (c) 2 and 4 only (d) 1, 2 and 3 only Correct Solution: A Statement 1 is incorrect. The Survey explicitly states that deregulation is critical for MSMEs rather than large enterprises, as the latter usually find ways around compliance, while regulations hurt the ability of smaller businesses to start and grow. Statement 2 is incorrect. While export procedures might be part of the regulatory landscape, the Survey emphasizes broader deregulation across areas like land, labour, transport, and logistics, impacting domestic operations and growth, not just exports. Statement 3 is correct. The Survey notes a tendency for Indian firms to remain small, partly to remain outside the regulatory radar and avoid labour/safety laws, which hinders their access to capital, talent, and technology. Systematic deregulation aims to address this. Statement 4 is incorrect. The Mittelstand concept refers to a strong base of Small and Medium Enterprises (SMEs), typically privately owned. The goal is to strengthen the private SME sector, not increase public sector share. Incorrect Solution: A Statement 1 is incorrect. The Survey explicitly states that deregulation is critical for MSMEs rather than large enterprises, as the latter usually find ways around compliance, while regulations hurt the ability of smaller businesses to start and grow. Statement 2 is incorrect. While export procedures might be part of the regulatory landscape, the Survey emphasizes broader deregulation across areas like land, labour, transport, and logistics, impacting domestic operations and growth, not just exports. Statement 3 is correct. The Survey notes a tendency for Indian firms to remain small, partly to remain outside the regulatory radar and avoid labour/safety laws, which hinders their access to capital, talent, and technology. Systematic deregulation aims to address this. Statement 4 is incorrect. The Mittelstand concept refers to a strong base of Small and Medium Enterprises (SMEs), typically privately owned. The goal is to strengthen the private SME sector, not increase public sector share.

#### 6. Question

The Economic Survey 2024-25 strongly advocates for “Systematic Deregulation” to foster a “Mittelstand” in India. Consider the rationale presented:

• Large enterprises are disproportionately burdened by existing regulations compared to MSMEs.

• Deregulation is primarily needed to simplify export procedures for small firms.

• Many Indian firms deliberately remain small to avoid regulatory compliance complexities and costs.

• The primary goal of creating a Mittelstand is to increase the share of the public sector in manufacturing.

Which of the statements given above accurately reflects the Survey’s reasoning?

• (a) 3 only

• (b) 1 and 3 only

• (c) 2 and 4 only

• (d) 1, 2 and 3 only

Solution: A

• Statement 1 is incorrect. The Survey explicitly states that deregulation is critical for MSMEs rather than large enterprises, as the latter usually find ways around compliance, while regulations hurt the ability of smaller businesses to start and grow.

• Statement 2 is incorrect. While export procedures might be part of the regulatory landscape, the Survey emphasizes broader deregulation across areas like land, labour, transport, and logistics, impacting domestic operations and growth, not just exports.

• Statement 3 is correct. The Survey notes a tendency for Indian firms to remain small, partly to remain outside the regulatory radar and avoid labour/safety laws, which hinders their access to capital, talent, and technology. Systematic deregulation aims to address this.

• Statement 4 is incorrect. The Mittelstand concept refers to a strong base of Small and Medium Enterprises (SMEs), typically privately owned. The goal is to strengthen the private SME sector, not increase public sector share.

Solution: A

• Question 7 of 30 7. Question 1 points Regarding the health of the Indian banking sector as assessed by the Economic Survey 2024-25, which statement is correct? (a) The Gross NPA ratio has declined but remains significantly above the levels seen a decade ago. (b) The Capital Adequacy Ratio (CRAR) has fallen below the regulatory minimum for several public sector banks. (c) Improved profitability, reflected in rising RoA and RoE, strengthens banks' capacity for internal capital generation and lending. (d) The decline in NPAs is primarily attributed to large-scale government bailouts of stressed banks in FY24. Correct Solution: C (a) Incorrect. The Gross NPA ratio declined to a 12-year low of 2.6% as of September 2024 , implying it is significantly lower than levels seen a decade prior during the peak of the NPA crisis. (b) Incorrect. The aggregate CRAR for SCBs stood at a robust 16.7% in September 2024, well above regulatory norms. The Survey indicates overall stability, not widespread breaches of capital norms. (c) Correct. The Survey highlights the improvement in profitability, with rising Return on Assets (RoA at 1.4%) and Return on Equity (RoE at 14.1%). Higher profitability allows banks to build capital internally and supports their ability to undertake further lending, contributing to financial stability and economic growth. (d) Incorrect. While the government has recapitalized banks in the past, the Survey attributes the recent decline in NPAs more broadly to factors like improved bank governance, recovery mechanisms (like IBC), and better credit underwriting, leading to improved asset quality across the system. There’s no mention of large-scale bailouts in FY24 being the primary driver. Incorrect Solution: C (a) Incorrect. The Gross NPA ratio declined to a 12-year low of 2.6% as of September 2024 , implying it is significantly lower than levels seen a decade prior during the peak of the NPA crisis. (b) Incorrect. The aggregate CRAR for SCBs stood at a robust 16.7% in September 2024, well above regulatory norms. The Survey indicates overall stability, not widespread breaches of capital norms. (c) Correct. The Survey highlights the improvement in profitability, with rising Return on Assets (RoA at 1.4%) and Return on Equity (RoE at 14.1%). Higher profitability allows banks to build capital internally and supports their ability to undertake further lending, contributing to financial stability and economic growth. (d) Incorrect. While the government has recapitalized banks in the past, the Survey attributes the recent decline in NPAs more broadly to factors like improved bank governance, recovery mechanisms (like IBC), and better credit underwriting, leading to improved asset quality across the system. There’s no mention of large-scale bailouts in FY24 being the primary driver.

#### 7. Question

Regarding the health of the Indian banking sector as assessed by the Economic Survey 2024-25, which statement is correct?

• (a) The Gross NPA ratio has declined but remains significantly above the levels seen a decade ago.

• (b) The Capital Adequacy Ratio (CRAR) has fallen below the regulatory minimum for several public sector banks.

• (c) Improved profitability, reflected in rising RoA and RoE, strengthens banks' capacity for internal capital generation and lending.

• (d) The decline in NPAs is primarily attributed to large-scale government bailouts of stressed banks in FY24.

Solution: C

• (a) Incorrect. The Gross NPA ratio declined to a 12-year low of 2.6% as of September 2024 , implying it is significantly lower than levels seen a decade prior during the peak of the NPA crisis.

• (b) Incorrect. The aggregate CRAR for SCBs stood at a robust 16.7% in September 2024, well above regulatory norms. The Survey indicates overall stability, not widespread breaches of capital norms.

• (c) Correct. The Survey highlights the improvement in profitability, with rising Return on Assets (RoA at 1.4%) and Return on Equity (RoE at 14.1%). Higher profitability allows banks to build capital internally and supports their ability to undertake further lending, contributing to financial stability and economic growth.

• (d) Incorrect. While the government has recapitalized banks in the past, the Survey attributes the recent decline in NPAs more broadly to factors like improved bank governance, recovery mechanisms (like IBC), and better credit underwriting, leading to improved asset quality across the system. There’s no mention of large-scale bailouts in FY24 being the primary driver.

Solution: C

• Question 8 of 30 8. Question 1 points Consider the ‘BharatTradeNet (BTN)’ initiative announced in the Union Budget 2025-26: It is a physical network of warehouses established at major ports to facilitate export logistics. It aims to serve as a unified digital platform for international trade documentation and financing solutions. Its primary objective is to regulate and restrict imports from specific countries identified as trade risks. The platform is designed to operate independently of global supply chain systems to ensure data security. Which of the statements given above is/are correct? (a) 2 only (b) 1 and 2 only (c) 2 and 4 only (d) 1, 3 and 4 only Correct Solution: A Statement 1 is incorrect. BTN is described as a digital public infrastructure for international trade, not a physical network of warehouses. Statement 2 is correct. It is intended to be a unified platform for trade documentation and financing solutions, facilitating seamless transactions. Statement 3 is incorrect. Its objective is to facilitate international trade and exports, not restrict imports. Export promotion is a key theme. Statement 4 is incorrect. The description explicitly mentions support for integration with Global Supply Chains, not operating independently of them. Incorrect Solution: A Statement 1 is incorrect. BTN is described as a digital public infrastructure for international trade, not a physical network of warehouses. Statement 2 is correct. It is intended to be a unified platform for trade documentation and financing solutions, facilitating seamless transactions. Statement 3 is incorrect. Its objective is to facilitate international trade and exports, not restrict imports. Export promotion is a key theme. Statement 4 is incorrect. The description explicitly mentions support for integration with Global Supply Chains, not operating independently of them.

#### 8. Question

Consider the ‘BharatTradeNet (BTN)’ initiative announced in the Union Budget 2025-26:

• It is a physical network of warehouses established at major ports to facilitate export logistics.

• It aims to serve as a unified digital platform for international trade documentation and financing solutions.

• Its primary objective is to regulate and restrict imports from specific countries identified as trade risks.

• The platform is designed to operate independently of global supply chain systems to ensure data security.

Which of the statements given above is/are correct?

• (a) 2 only

• (b) 1 and 2 only

• (c) 2 and 4 only

• (d) 1, 3 and 4 only

Solution: A

• Statement 1 is incorrect. BTN is described as a digital public infrastructure for international trade, not a physical network of warehouses.

• Statement 2 is correct. It is intended to be a unified platform for trade documentation and financing solutions, facilitating seamless transactions.

• Statement 3 is incorrect. Its objective is to facilitate international trade and exports, not restrict imports. Export promotion is a key theme.

• Statement 4 is incorrect. The description explicitly mentions support for integration with Global Supply Chains, not operating independently of them.

Solution: A

• Statement 1 is incorrect. BTN is described as a digital public infrastructure for international trade, not a physical network of warehouses.

• Statement 2 is correct. It is intended to be a unified platform for trade documentation and financing solutions, facilitating seamless transactions.

• Statement 3 is incorrect. Its objective is to facilitate international trade and exports, not restrict imports. Export promotion is a key theme.

• Statement 4 is incorrect. The description explicitly mentions support for integration with Global Supply Chains, not operating independently of them.

• Question 9 of 30 9. Question 1 points With reference to the external sector performance discussed in the Economic Survey 2024-25, consider the following: India’s Current Account Deficit (CAD) widened significantly in Q2 FY25 primarily due to a sharp fall in private transfer receipts (remittances). Gross Foreign Direct Investment (FDI) inflows experienced a contraction in the first eight months of FY25 compared to the previous year. India’s foreign exchange reserves cover less than six months of imports, indicating vulnerability to external shocks. How many of the above statements is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: D Statement 1 is incorrect. The CAD in Q2 FY25 was 1.2% of GDP, relatively contained. The Survey indicates the increase in CAD was attributed to a widening merchandise trade deficit, which was cushioned by an increase in net services receipts and private transfers (remittances), not a fall in remittances. Statement 2 is incorrect. Gross FDI inflows recorded a revival in the first eight months of FY25, increasing by 17.9% YoY to USD 55.6 billion. Statement 3 is incorrect. Forex reserves stood at USD 640.3 billion (Dec 2024), sufficient to cover 10.9 months of imports, indicating a strong buffer, not vulnerability. Incorrect Solution: D Statement 1 is incorrect. The CAD in Q2 FY25 was 1.2% of GDP, relatively contained. The Survey indicates the increase in CAD was attributed to a widening merchandise trade deficit, which was cushioned by an increase in net services receipts and private transfers (remittances), not a fall in remittances. Statement 2 is incorrect. Gross FDI inflows recorded a revival in the first eight months of FY25, increasing by 17.9% YoY to USD 55.6 billion. Statement 3 is incorrect. Forex reserves stood at USD 640.3 billion (Dec 2024), sufficient to cover 10.9 months of imports, indicating a strong buffer, not vulnerability.

#### 9. Question

With reference to the external sector performance discussed in the Economic Survey 2024-25, consider the following:

• India’s Current Account Deficit (CAD) widened significantly in Q2 FY25 primarily due to a sharp fall in private transfer receipts (remittances).

• Gross Foreign Direct Investment (FDI) inflows experienced a contraction in the first eight months of FY25 compared to the previous year.

• India’s foreign exchange reserves cover less than six months of imports, indicating vulnerability to external shocks.

How many of the above statements is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: D

• Statement 1 is incorrect. The CAD in Q2 FY25 was 1.2% of GDP, relatively contained. The Survey indicates the increase in CAD was attributed to a widening merchandise trade deficit, which was cushioned by an increase in net services receipts and private transfers (remittances), not a fall in remittances.

• Statement 2 is incorrect. Gross FDI inflows recorded a revival in the first eight months of FY25, increasing by 17.9% YoY to USD 55.6 billion.

• Statement 3 is incorrect. Forex reserves stood at USD 640.3 billion (Dec 2024), sufficient to cover 10.9 months of imports, indicating a strong buffer, not vulnerability.

Solution: D

• Statement 2 is incorrect. Gross FDI inflows recorded a revival in the first eight months of FY25, increasing by 17.9% YoY to USD 55.6 billion.

• Statement 3 is incorrect. Forex reserves stood at USD 640.3 billion (Dec 2024), sufficient to cover 10.9 months of imports, indicating a strong buffer, not vulnerability.

• Question 10 of 30 10. Question 1 points The Economic Survey 2024-25 discusses the potential impact of Artificial Intelligenc (a) Implementing strict regulations to limit the deployment of AI in job-intensive sectors. (b) Providing universal basic income to compensate for AI-induced job losses. (c) Fostering collaborative efforts between government, private sector, and academia focused on education and skill development. (d) Relying solely on market forces to manage the labour market adjustments caused by AI adoption. Correct Solution: C (a) Incorrect. The Survey does not advocate for limiting AI deployment but rather for managing its societal effects. (b) Incorrect. While social safety nets might be discussed elsewhere, the Survey’s specific recommendation regarding AI’s labour impact focuses on proactive measures like skilling, not primarily on compensatory measures like UBI. (c) Correct. The Survey explicitly emphasizes the need for collaborative efforts between government, private sector, and academia to address AI’s societal effects, with a focus on education and skill development to prepare the workforce for AI-augmented jobs. (d) Incorrect. The Survey calls for active collaboration and policy focus (education, skilling), suggesting that relying solely on market forces is insufficient to manage the potential disruptions. Incorrect Solution: C (a) Incorrect. The Survey does not advocate for limiting AI deployment but rather for managing its societal effects. (b) Incorrect. While social safety nets might be discussed elsewhere, the Survey’s specific recommendation regarding AI’s labour impact focuses on proactive measures like skilling, not primarily on compensatory measures like UBI. (c) Correct. The Survey explicitly emphasizes the need for collaborative efforts between government, private sector, and academia to address AI’s societal effects, with a focus on education and skill development to prepare the workforce for AI-augmented jobs. (d) Incorrect. The Survey calls for active collaboration and policy focus (education, skilling), suggesting that relying solely on market forces is insufficient to manage the potential disruptions.

#### 10. Question

The Economic Survey 2024-25 discusses the potential impact of Artificial Intelligenc

• (a) Implementing strict regulations to limit the deployment of AI in job-intensive sectors.

• (b) Providing universal basic income to compensate for AI-induced job losses.

• (c) Fostering collaborative efforts between government, private sector, and academia focused on education and skill development.

• (d) Relying solely on market forces to manage the labour market adjustments caused by AI adoption.

Solution: C

• (a) Incorrect. The Survey does not advocate for limiting AI deployment but rather for managing its societal effects.

• (b) Incorrect. While social safety nets might be discussed elsewhere, the Survey’s specific recommendation regarding AI’s labour impact focuses on proactive measures like skilling, not primarily on compensatory measures like UBI.

• (c) Correct. The Survey explicitly emphasizes the need for collaborative efforts between government, private sector, and academia to address AI’s societal effects, with a focus on education and skill development to prepare the workforce for AI-augmented jobs.

• (d) Incorrect. The Survey calls for active collaboration and policy focus (education, skilling), suggesting that relying solely on market forces is insufficient to manage the potential disruptions.

Solution: C

• (a) Incorrect. The Survey does not advocate for limiting AI deployment but rather for managing its societal effects.

• Question 11 of 30 11. Question 1 points Consider the following statements regarding PM Dhan Dhaanya Krishi Yojana: It will be implemented in one hundred districts with low productivity and below average credit parameters. It aims to promote post-harvest storage facilities at Panchayat and block levels. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C The PM Dhan Dhaanya Krishi Yojana has been announced in the Union Budget 2025-26. It will be launched in partnership with States and will cover 100 districts with low productivity, moderate crop intensity and below average credit parameters The program aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at Panchayat and block level, improve irrigation facilities and facilitate availablity of long and short term credits. Hence statements 1 and 2 are correct Incorrect Solution: C The PM Dhan Dhaanya Krishi Yojana has been announced in the Union Budget 2025-26. It will be launched in partnership with States and will cover 100 districts with low productivity, moderate crop intensity and below average credit parameters The program aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at Panchayat and block level, improve irrigation facilities and facilitate availablity of long and short term credits. Hence statements 1 and 2 are correct

#### 11. Question

Consider the following statements regarding PM Dhan Dhaanya Krishi Yojana:

• It will be implemented in one hundred districts with low productivity and below average credit parameters.

• It aims to promote post-harvest storage facilities at Panchayat and block levels.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• The PM Dhan Dhaanya Krishi Yojana has been announced in the Union Budget 2025-26.

• It will be launched in partnership with States and will cover 100 districts with low productivity, moderate crop intensity and below average credit parameters

• The program aims to enhance agricultural productivity, adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at Panchayat and block level, improve irrigation facilities and facilitate availablity of long and short term credits.

Hence statements 1 and 2 are correct

Solution: C

• The PM Dhan Dhaanya Krishi Yojana has been announced in the Union Budget 2025-26.

• It will be launched in partnership with States and will cover 100 districts with low productivity, moderate crop intensity and below average credit parameters

Hence statements 1 and 2 are correct

• Question 12 of 30 12. Question 1 points Consider the following statements: Capital expenditure includes money spent on repayment of principal amount as well as interest of a loan. The capital expenditure has been earmarked at 3.1% of GDP in FY2025-26. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: B Capital expenditure or Capex is the money spent by the government on development of equipments, buildings,machinery, health facilities, education and similar expenditures. It includes money spent on acquiring fixed and interngible assets, upgrading an existing asset, repairing an existing asset, repayment of loans. However, interest payment is a revenue expenditure. Hence statement 1 is incorrect Capex expenditure of Rs. 11.21 lakh crore (3.1% of GDP ) has been earmarked in FY 2025-26. Hence statement 2 is correct Incorrect Solution: B Capital expenditure or Capex is the money spent by the government on development of equipments, buildings,machinery, health facilities, education and similar expenditures. It includes money spent on acquiring fixed and interngible assets, upgrading an existing asset, repairing an existing asset, repayment of loans. However, interest payment is a revenue expenditure. Hence statement 1 is incorrect Capex expenditure of Rs. 11.21 lakh crore (3.1% of GDP ) has been earmarked in FY 2025-26. Hence statement 2 is correct

#### 12. Question

Consider the following statements:

• Capital expenditure includes money spent on repayment of principal amount as well as interest of a loan.

• The capital expenditure has been earmarked at 3.1% of GDP in FY2025-26.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: B

• Capital expenditure or Capex is the money spent by the government on development of equipments, buildings,machinery, health facilities, education and similar expenditures.

• It includes money spent on acquiring fixed and interngible assets, upgrading an existing asset, repairing an existing asset, repayment of loans.

• However, interest payment is a revenue expenditure.

Hence statement 1 is incorrect

• Capex expenditure of Rs. 11.21 lakh crore (3.1% of GDP ) has been earmarked in FY 2025-26.

Hence statement 2 is correct

Solution: B

• Capital expenditure or Capex is the money spent by the government on development of equipments, buildings,machinery, health facilities, education and similar expenditures.

• It includes money spent on acquiring fixed and interngible assets, upgrading an existing asset, repairing an existing asset, repayment of loans.

• However, interest payment is a revenue expenditure.

Hence statement 1 is incorrect

• Capex expenditure of Rs. 11.21 lakh crore (3.1% of GDP ) has been earmarked in FY 2025-26.

Hence statement 2 is correct

• Question 13 of 30 13. Question 1 points Consider the following statements regarding Rural Prosperity and Resilience Programme: It aims to address under employment in agriculture to discourage rural migration. It focuses on employment and financial independent for rural women It has been launched in collaboration with the World Bank. How many of the statements given above is/are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The multisectoral Rural Prosperity and Resilience program has been announced in the Union Budget 2025-26. It will be launched by the centre in partnership with States. This will address under employment in agriculture through skilling, investment technology and invigorating the rural economy The main goal is to generate ample opportunities in rural areas so that migration is an option and not a necessity. Hence statement 1 is correct The program focuses on rural women, young farmers, rural youth,marginal and small farmers and landless family. It aims in catalyzing Enterprise development, employment and financial independent for rural women. Hence statement 2 is correct The rural prosperity and resilience program aims to promote Global and domestic best practices and seeks appropriate technical and financial assistance from multilateral Development Banks. However, it has been launched in the union budget 2025-26; not in collaboration with World Bank. Hence statement 3 is incorrect Incorrect Solution: B The multisectoral Rural Prosperity and Resilience program has been announced in the Union Budget 2025-26. It will be launched by the centre in partnership with States. This will address under employment in agriculture through skilling, investment technology and invigorating the rural economy The main goal is to generate ample opportunities in rural areas so that migration is an option and not a necessity. Hence statement 1 is correct The program focuses on rural women, young farmers, rural youth,marginal and small farmers and landless family. It aims in catalyzing Enterprise development, employment and financial independent for rural women. Hence statement 2 is correct The rural prosperity and resilience program aims to promote Global and domestic best practices and seeks appropriate technical and financial assistance from multilateral Development Banks. However, it has been launched in the union budget 2025-26; not in collaboration with World Bank. Hence statement 3 is incorrect

#### 13. Question

Consider the following statements regarding Rural Prosperity and Resilience Programme:

• It aims to address under employment in agriculture to discourage rural migration.

• It focuses on employment and financial independent for rural women

• It has been launched in collaboration with the World Bank.

How many of the statements given above is/are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• The multisectoral Rural Prosperity and Resilience program has been announced in the Union Budget 2025-26.

• It will be launched by the centre in partnership with States.

• This will address under employment in agriculture through skilling, investment technology and invigorating the rural economy

• The main goal is to generate ample opportunities in rural areas so that migration is an option and not a necessity.

Hence statement 1 is correct

• The program focuses on rural women, young farmers, rural youth,marginal and small farmers and landless family.

• It aims in catalyzing Enterprise development, employment and financial independent for rural women.

Hence statement 2 is correct

• The rural prosperity and resilience program aims to promote Global and domestic best practices and seeks appropriate technical and financial assistance from multilateral Development Banks.

• However, it has been launched in the union budget 2025-26; not in collaboration with World Bank.

Hence statement 3 is incorrect

Solution: B

• The multisectoral Rural Prosperity and Resilience program has been announced in the Union Budget 2025-26.

• It will be launched by the centre in partnership with States.

• This will address under employment in agriculture through skilling, investment technology and invigorating the rural economy

• The main goal is to generate ample opportunities in rural areas so that migration is an option and not a necessity.

Hence statement 1 is correct

• The program focuses on rural women, young farmers, rural youth,marginal and small farmers and landless family.

• It aims in catalyzing Enterprise development, employment and financial independent for rural women.

Hence statement 2 is correct

• The rural prosperity and resilience program aims to promote Global and domestic best practices and seeks appropriate technical and financial assistance from multilateral Development Banks.

• However, it has been launched in the union budget 2025-26; not in collaboration with World Bank.

Hence statement 3 is incorrect

• Question 14 of 30 14. Question 1 points Recently the Union budget proposed for foundation of a National Institute of Food Technology,pm Entrepreneurship and Management; it will be set up in: (a) Maharashtra (b) Bihar (c) Punjab (d) Karnataka Correct Solution: B Recently with an aim to support food processing sector, the Union Budget 2025-26 announced a National Institute for Food Technology, Entrepreneurship and Management It will be set up in Bihar. The initiative aims to accelerate food processing activities in the Eastern region benefiting farmers, entrepreneurs and young professionals. The upcoming Institute is expected to play a major role in enhancing Farmers’ income by adding value to their agricultural produce with a focus on modern food processing techniques and innovation It will help Farmers’ transition from raw produce to market ready products ensuring better prices and reducing post-harvest losses. Hence option B is correct Incorrect Solution: B Recently with an aim to support food processing sector, the Union Budget 2025-26 announced a National Institute for Food Technology, Entrepreneurship and Management It will be set up in Bihar. The initiative aims to accelerate food processing activities in the Eastern region benefiting farmers, entrepreneurs and young professionals. The upcoming Institute is expected to play a major role in enhancing Farmers’ income by adding value to their agricultural produce with a focus on modern food processing techniques and innovation It will help Farmers’ transition from raw produce to market ready products ensuring better prices and reducing post-harvest losses. Hence option B is correct

#### 14. Question

Recently the Union budget proposed for foundation of a National Institute of Food Technology,pm Entrepreneurship and Management; it will be set up in:

• (a) Maharashtra

• (c) Punjab

• (d) Karnataka

Solution: B

• Recently with an aim to support food processing sector, the Union Budget 2025-26 announced a National Institute for Food Technology, Entrepreneurship and Management

• It will be set up in Bihar.

• The initiative aims to accelerate food processing activities in the Eastern region benefiting farmers, entrepreneurs and young professionals.

• The upcoming Institute is expected to play a major role in enhancing Farmers’ income by adding value to their agricultural produce with a focus on modern food processing techniques and innovation

• It will help Farmers’ transition from raw produce to market ready products ensuring better prices and reducing post-harvest losses.

Hence option B is correct

Solution: B

• Recently with an aim to support food processing sector, the Union Budget 2025-26 announced a National Institute for Food Technology, Entrepreneurship and Management

• It will be set up in Bihar.

• The initiative aims to accelerate food processing activities in the Eastern region benefiting farmers, entrepreneurs and young professionals.

• It will help Farmers’ transition from raw produce to market ready products ensuring better prices and reducing post-harvest losses.

Hence option B is correct

• Question 15 of 30 15. Question 1 points Consider the following statements: India emerged as the top remittance receiving country in 2024. Increase in job creation in Organisation for Economic Cooperation and Development (OECD) economies contributed to inflow of private transfers into India in 2024-25. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C According to the Economic Survey 2024- 25: In 2024 India received an estimated $129.1 billion worth of remittances -the highest ever for a country in any year (World Bank) Moreover, where India’s share in global remittances was 14.3% in 2024, the highest such share since the turn of millennium for any country. An uptick of job creation in OECD economies contributed to the healthy net inflow of private transfers into India leading to a relatively contained current account deficit. The current account deficit remains at 1.2% of GDP in Q2 of FY2025. Hence statements 1 and 2 are correct Incorrect Solution: C According to the Economic Survey 2024- 25: In 2024 India received an estimated $129.1 billion worth of remittances -the highest ever for a country in any year (World Bank) Moreover, where India’s share in global remittances was 14.3% in 2024, the highest such share since the turn of millennium for any country. An uptick of job creation in OECD economies contributed to the healthy net inflow of private transfers into India leading to a relatively contained current account deficit. The current account deficit remains at 1.2% of GDP in Q2 of FY2025. Hence statements 1 and 2 are correct

#### 15. Question

Consider the following statements:

• India emerged as the top remittance receiving country in 2024.

• Increase in job creation in Organisation for Economic Cooperation and Development (OECD) economies contributed to inflow of private transfers into India in 2024-25.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

According to the Economic Survey 2024- 25:

• In 2024 India received an estimated $129.1 billion worth of remittances -the highest ever for a country in any year (World Bank)

• Moreover, where India’s share in global remittances was 14.3% in 2024, the highest such share since the turn of millennium for any country.

• An uptick of job creation in OECD economies contributed to the healthy net inflow of private transfers into India leading to a relatively contained current account deficit.

• The current account deficit remains at 1.2% of GDP in Q2 of FY2025.

Hence statements 1 and 2 are correct

Solution: C

According to the Economic Survey 2024- 25:

• In 2024 India received an estimated $129.1 billion worth of remittances -the highest ever for a country in any year (World Bank)

• Moreover, where India’s share in global remittances was 14.3% in 2024, the highest such share since the turn of millennium for any country.

• An uptick of job creation in OECD economies contributed to the healthy net inflow of private transfers into India leading to a relatively contained current account deficit.

• The current account deficit remains at 1.2% of GDP in Q2 of FY2025.

Hence statements 1 and 2 are correct

• Question 16 of 30 16. Question 1 points Consider the following statements regarding Maritime Development Fund: Out of the total outlay of Rs. 50,000 crores, 51% will be contributed by the Ministry of Ports, Shipping and Waterways. The fund seeks contribution from Central PSEs and private sector in financing for ship acquisition. It aims to enhance Indian flagged ships share in the Global cargo volume up to 20% by 2047. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The Union Budget 2025-26 proposes to set up a Maritime Development Fund to support India’s Maritime sector by providing financial assistance via equity or debt securities. The initial Corpus of the fund is pegged at Rs. 25000 crore where the government contribution will be 49%. Hence statement 1 is incorrect The remaining balance (after 49% of Rs.50000 crore paid by the government), will be contributed by major port authorities, other government entities, Central PSEs, Financial Institutions as well as private sector. This fund will directly benefit in financing for ship acquisition. It intends to boost Indian flagged ship share in the Global cargo volume up to 20% by 2047. By 2030, the fund is a aimed at generating up to Rs.1.5 lakh crore investment in the shipping sector. Hence statements 2 and 3 are correct Incorrect Solution: B The Union Budget 2025-26 proposes to set up a Maritime Development Fund to support India’s Maritime sector by providing financial assistance via equity or debt securities. The initial Corpus of the fund is pegged at Rs. 25000 crore where the government contribution will be 49%. Hence statement 1 is incorrect The remaining balance (after 49% of Rs.50000 crore paid by the government), will be contributed by major port authorities, other government entities, Central PSEs, Financial Institutions as well as private sector. This fund will directly benefit in financing for ship acquisition. It intends to boost Indian flagged ship share in the Global cargo volume up to 20% by 2047. By 2030, the fund is a aimed at generating up to Rs.1.5 lakh crore investment in the shipping sector. Hence statements 2 and 3 are correct

#### 16. Question

Consider the following statements regarding Maritime Development Fund:

• Out of the total outlay of Rs. 50,000 crores, 51% will be contributed by the Ministry of Ports, Shipping and Waterways.

• The fund seeks contribution from Central PSEs and private sector in financing for ship acquisition.

• It aims to enhance Indian flagged ships share in the Global cargo volume up to 20% by 2047.

How many of the statements given above are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• The Union Budget 2025-26 proposes to set up a Maritime Development Fund to support India’s Maritime sector by providing financial assistance via equity or debt securities.

• The initial Corpus of the fund is pegged at Rs. 25000 crore where the government contribution will be 49%.

Hence statement 1 is incorrect

• The remaining balance (after 49% of Rs.50000 crore paid by the government), will be contributed by major port authorities, other government entities, Central PSEs, Financial Institutions as well as private sector.

• This fund will directly benefit in financing for ship acquisition.

• It intends to boost Indian flagged ship share in the Global cargo volume up to 20% by 2047.

• By 2030, the fund is a aimed at generating up to Rs.1.5 lakh crore investment in the shipping sector.

Hence statements 2 and 3 are correct

Solution: B

• The Union Budget 2025-26 proposes to set up a Maritime Development Fund to support India’s Maritime sector by providing financial assistance via equity or debt securities.

• The initial Corpus of the fund is pegged at Rs. 25000 crore where the government contribution will be 49%.

Hence statement 1 is incorrect

• This fund will directly benefit in financing for ship acquisition.

• It intends to boost Indian flagged ship share in the Global cargo volume up to 20% by 2047.

• By 2030, the fund is a aimed at generating up to Rs.1.5 lakh crore investment in the shipping sector.

Hence statements 2 and 3 are correct

• Question 17 of 30 17. Question 1 points Consider the following statements: NITI Aayog is responsible for development of Investment Friendliness Index (IFI) of States. IFI will rank States on the two dimensions of opportunity and risk. The IFI Index seeks to promote competitive cooperative federalism in India. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1, 2 and 3 (d) 1 and 3 only Correct Solution: C Recently the government has announced an Investment Friendliness Index of states in 2025 to further the spirit of competitive Cooperative federalism in the country. Government think tank NITI Aayog is developing this investment index that will rank States on the basis of their investment efficacy. The index will rank States around the two primary dimensions of opportunity and risk ; both of these will have at least 4 sub indicators to rank the performance of States. The idea is to create competition among the states to attract investment and the government hopes that ranking of States on the identified indicators and periodic monitoring will help improve overall investment climate in the country. Hence statements 1, 2 and 3 are correct Incorrect Solution: C Recently the government has announced an Investment Friendliness Index of states in 2025 to further the spirit of competitive Cooperative federalism in the country. Government think tank NITI Aayog is developing this investment index that will rank States on the basis of their investment efficacy. The index will rank States around the two primary dimensions of opportunity and risk ; both of these will have at least 4 sub indicators to rank the performance of States. The idea is to create competition among the states to attract investment and the government hopes that ranking of States on the identified indicators and periodic monitoring will help improve overall investment climate in the country. Hence statements 1, 2 and 3 are correct

#### 17. Question

Consider the following statements:

• NITI Aayog is responsible for development of Investment Friendliness Index (IFI) of States.

• IFI will rank States on the two dimensions of opportunity and risk.

• The IFI Index seeks to promote competitive cooperative federalism in India.

Which of the statements given above is/are correct?

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1, 2 and 3

• (d) 1 and 3 only

Solution: C

• Recently the government has announced an Investment Friendliness Index of states in 2025 to further the spirit of competitive Cooperative federalism in the country.

• Government think tank NITI Aayog is developing this investment index that will rank States on the basis of their investment efficacy.

• The index will rank States around the two primary dimensions of opportunity and risk ; both of these will have at least 4 sub indicators to rank the performance of States.

• The idea is to create competition among the states to attract investment and the government hopes that ranking of States on the identified indicators and periodic monitoring will help improve overall investment climate in the country.

Hence statements 1, 2 and 3 are correct

Solution: C

• Recently the government has announced an Investment Friendliness Index of states in 2025 to further the spirit of competitive Cooperative federalism in the country.

• Government think tank NITI Aayog is developing this investment index that will rank States on the basis of their investment efficacy.

• The index will rank States around the two primary dimensions of opportunity and risk ; both of these will have at least 4 sub indicators to rank the performance of States.

Hence statements 1, 2 and 3 are correct

• Question 18 of 30 18. Question 1 points Consider the following statements: International Monetary Fund projected an inflation rate of 4.4% in FY 2025 for India. Increase in food inflation by 0.9% from FY24 to FY25 is driven primarily by food items including tomato, onion and pulses Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: C The IMF projected an inflation rate of 4.4% in FY 25 and 4.1% in FY 26 for India. Both RBI and IMF projected India’s consumer price index will gradually align with the target in FY 26. Hence statement 1 is correct India’s headline inflation measured by Consumer Price Index (CPI) declined in FY 25 compared to FY 24 The food inflation in India, by Consumer Food Price Index, increased from 7.5% in FY24 to 8.4% in FY25 primary driven by few food items particularly vegetables tomato and onion and pulses (Tur dal). Hence statement 2 is correct Incorrect Solution: C The IMF projected an inflation rate of 4.4% in FY 25 and 4.1% in FY 26 for India. Both RBI and IMF projected India’s consumer price index will gradually align with the target in FY 26. Hence statement 1 is correct India’s headline inflation measured by Consumer Price Index (CPI) declined in FY 25 compared to FY 24 The food inflation in India, by Consumer Food Price Index, increased from 7.5% in FY24 to 8.4% in FY25 primary driven by few food items particularly vegetables tomato and onion and pulses (Tur dal). Hence statement 2 is correct

#### 18. Question

Consider the following statements:

• International Monetary Fund projected an inflation rate of 4.4% in FY 2025 for India.

• Increase in food inflation by 0.9% from FY24 to FY25 is driven primarily by food items including tomato, onion and pulses

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: C

• The IMF projected an inflation rate of 4.4% in FY 25 and 4.1% in FY 26 for India.

• Both RBI and IMF projected India’s consumer price index will gradually align with the target in FY 26.

Hence statement 1 is correct

• India’s headline inflation measured by Consumer Price Index (CPI) declined in FY 25 compared to FY 24

• The food inflation in India, by Consumer Food Price Index, increased from 7.5% in FY24 to 8.4% in FY25 primary driven by few food items particularly vegetables tomato and onion and pulses (Tur dal).

Hence statement 2 is correct

Solution: C

• The IMF projected an inflation rate of 4.4% in FY 25 and 4.1% in FY 26 for India.

• Both RBI and IMF projected India’s consumer price index will gradually align with the target in FY 26.

Hence statement 1 is correct

• India’s headline inflation measured by Consumer Price Index (CPI) declined in FY 25 compared to FY 24

Hence statement 2 is correct

• Question 19 of 30 19. Question 1 points Consider the following statements: The Periodic Labour Force Survey (PLFS), that provides labour data annually for both rural and urban areas, is released by the Ministry of Commerce and Industry. According to the PLFS 2023-24, unemployment rate has declined for individuals aged 15 years and above. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: B The Periodic Labour Force Survey is conducted by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation. It provides estimate of key labour market indicators Launched in 2017, it aims to address the need for more timely data on employment and unemployment in India It provides data on a quarterly basis for urban areas and annually for both urban and rural areas. Hence statement 1 is incorrect As per the 2023-24 annual PLFS, unemployment rate for individuals aged 15 years and above has steadily declined from 6% in 2017-18 to 3.2% in 2023-24. The labour force participation rate and worker- to- population ratio have also increased. Hence statement 2 is correct Incorrect Solution: B The Periodic Labour Force Survey is conducted by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation. It provides estimate of key labour market indicators Launched in 2017, it aims to address the need for more timely data on employment and unemployment in India It provides data on a quarterly basis for urban areas and annually for both urban and rural areas. Hence statement 1 is incorrect As per the 2023-24 annual PLFS, unemployment rate for individuals aged 15 years and above has steadily declined from 6% in 2017-18 to 3.2% in 2023-24. The labour force participation rate and worker- to- population ratio have also increased. Hence statement 2 is correct

#### 19. Question

Consider the following statements:

• The Periodic Labour Force Survey (PLFS), that provides labour data annually for both rural and urban areas, is released by the Ministry of Commerce and Industry.

• According to the PLFS 2023-24, unemployment rate has declined for individuals aged 15 years and above.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: B

• The Periodic Labour Force Survey is conducted by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation.

• It provides estimate of key labour market indicators

• Launched in 2017, it aims to address the need for more timely data on employment and unemployment in India

• It provides data on a quarterly basis for urban areas and annually for both urban and rural areas.

Hence statement 1 is incorrect

• As per the 2023-24 annual PLFS, unemployment rate for individuals aged 15 years and above has steadily declined from 6% in 2017-18 to 3.2% in 2023-24.

• The labour force participation rate and worker- to- population ratio have also increased.

Hence statement 2 is correct

Solution: B

• The Periodic Labour Force Survey is conducted by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation.

• It provides estimate of key labour market indicators

• Launched in 2017, it aims to address the need for more timely data on employment and unemployment in India

• It provides data on a quarterly basis for urban areas and annually for both urban and rural areas.

Hence statement 1 is incorrect

• As per the 2023-24 annual PLFS, unemployment rate for individuals aged 15 years and above has steadily declined from 6% in 2017-18 to 3.2% in 2023-24.

• The labour force participation rate and worker- to- population ratio have also increased.

Hence statement 2 is correct

• Question 20 of 30 20. Question 1 points Consider the following statements: Gramin Credit Score aims to improve access to formal credit for Self Help Groups and marginalised communities in rural areas. The Grameen Credit Score is envisaged as a digital initiative to be handled by Neobanks only. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: A The Union Budget 2025-26 announced a Framework – the Gameen credit Score for credit needs of members of self-help groups and people in rural areas The current credit scoring mechanism used by Credit Information Companies is, by design, generic to all individual borrowers with no specific consideration for rural sector The Grameen credit score tailored for credit assessment partners of SHG borrowerss and rural population would facilitate better credit assessment, thereby improving access to formal credit for SHGs, and farmers as well as marginalised communities. Hence statement 1 is correct The recently announced Grameen Credit Score will be a framework to be developed by public sector banks. Hence statement 2 is incorrect Incorrect Solution: A The Union Budget 2025-26 announced a Framework – the Gameen credit Score for credit needs of members of self-help groups and people in rural areas The current credit scoring mechanism used by Credit Information Companies is, by design, generic to all individual borrowers with no specific consideration for rural sector The Grameen credit score tailored for credit assessment partners of SHG borrowerss and rural population would facilitate better credit assessment, thereby improving access to formal credit for SHGs, and farmers as well as marginalised communities. Hence statement 1 is correct The recently announced Grameen Credit Score will be a framework to be developed by public sector banks. Hence statement 2 is incorrect

#### 20. Question

Consider the following statements:

• Gramin Credit Score aims to improve access to formal credit for Self Help Groups and marginalised communities in rural areas.

• The Grameen Credit Score is envisaged as a digital initiative to be handled by Neobanks only.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: A

• The Union Budget 2025-26 announced a Framework – the Gameen credit Score for credit needs of members of self-help groups and people in rural areas

• The current credit scoring mechanism used by Credit Information Companies is, by design, generic to all individual borrowers with no specific consideration for rural sector

• The Grameen credit score tailored for credit assessment partners of SHG borrowerss and rural population would facilitate better credit assessment, thereby improving access to formal credit for SHGs, and farmers as well as marginalised communities.

Hence statement 1 is correct

• The recently announced Grameen Credit Score will be a framework to be developed by public sector banks.

Hence statement 2 is incorrect

Solution: A

• The Union Budget 2025-26 announced a Framework – the Gameen credit Score for credit needs of members of self-help groups and people in rural areas

• The current credit scoring mechanism used by Credit Information Companies is, by design, generic to all individual borrowers with no specific consideration for rural sector

Hence statement 1 is correct

• The recently announced Grameen Credit Score will be a framework to be developed by public sector banks.

Hence statement 2 is incorrect

• Question 21 of 30 21. Question 1 points Which of the following statements are correct regarding the working and advantages of Nano Bubble Technology in water purification? Nanobubbles help in algae control by disrupting their structure and preventing buildup. The technology requires strong chemical agents for efficient removal of oils and grease. Nanobubbles enable hyper-efficient oxygen transfer, thereby improving overall water quality. Select the correct answer using the code below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: C Explanation: Union Minister of State for Forest, Environment, and Climate Change launched the innovative ‘Nano Bubble Technology’ at the National Zoological Park, Delhi. It uses nanobubbles, which are ultra-tiny bubbles less than 200 nanometers in diameter, to purify water. Statements 1 and 3 are correct: Nanobubbles break down algae, enhance dissolved oxygen, and support microbiological stimulation, making them highly effective in improving aquatic health. Statement 2 is incorrect: The technology is chemical-free and does not rely on harmful agents to remove pollutants like oil and grease. Incorrect Solution: C Explanation: Union Minister of State for Forest, Environment, and Climate Change launched the innovative ‘Nano Bubble Technology’ at the National Zoological Park, Delhi. It uses nanobubbles, which are ultra-tiny bubbles less than 200 nanometers in diameter, to purify water. Statements 1 and 3 are correct: Nanobubbles break down algae, enhance dissolved oxygen, and support microbiological stimulation, making them highly effective in improving aquatic health. Statement 2 is incorrect: The technology is chemical-free and does not rely on harmful agents to remove pollutants like oil and grease.

#### 21. Question

Which of the following statements are correct regarding the working and advantages of Nano Bubble Technology in water purification?

• Nanobubbles help in algae control by disrupting their structure and preventing buildup.

• The technology requires strong chemical agents for efficient removal of oils and grease.

• Nanobubbles enable hyper-efficient oxygen transfer, thereby improving overall water quality.

Select the correct answer using the code below:

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: C

Explanation:

Union Minister of State for Forest, Environment, and Climate Change launched the innovative ‘Nano Bubble Technology’ at the National Zoological Park, Delhi.

It uses nanobubbles, which are ultra-tiny bubbles less than 200 nanometers in diameter, to purify water.

• Statements 1 and 3 are correct: Nanobubbles break down algae, enhance dissolved oxygen, and support microbiological stimulation, making them highly effective in improving aquatic health.

• Statement 2 is incorrect: The technology is chemical-free and does not rely on harmful agents to remove pollutants like oil and grease.

Solution: C

Explanation:

Union Minister of State for Forest, Environment, and Climate Change launched the innovative ‘Nano Bubble Technology’ at the National Zoological Park, Delhi.

It uses nanobubbles, which are ultra-tiny bubbles less than 200 nanometers in diameter, to purify water.

• Statement 2 is incorrect: The technology is chemical-free and does not rely on harmful agents to remove pollutants like oil and grease.

• Question 22 of 30 22. Question 1 points Consider the following statements: Statement-I: Bio-bitumen enhances the load-bearing capacity and longevity of highways more than conventional bitumen. Statement-II: This is because it contains heavy hydrocarbons synthesized from crude oil residues. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct Correct Solution: C Explanation: Union Minister inaugurated India’s first bio-bitumen-based National Highway stretch on NH-44, Nagpur-Mansar Bypass. It is sustainable bio-based binder derived from renewable sources like crop stubble, vegetable oils, algae, or lignin. Statement-I is correct: Bio-bitumen has greater durability and load-bearing capacity, offering 40% more strength. Statement-II is incorrect: Bio-bitumen is not derived from crude oil residues, but from renewable sources like lignocellulosic biomass, not heavy hydrocarbons. Incorrect Solution: C Explanation: Union Minister inaugurated India’s first bio-bitumen-based National Highway stretch on NH-44, Nagpur-Mansar Bypass. It is sustainable bio-based binder derived from renewable sources like crop stubble, vegetable oils, algae, or lignin. Statement-I is correct: Bio-bitumen has greater durability and load-bearing capacity, offering 40% more strength. Statement-II is incorrect: Bio-bitumen is not derived from crude oil residues, but from renewable sources like lignocellulosic biomass, not heavy hydrocarbons.

#### 22. Question

Consider the following statements:

Statement-I: Bio-bitumen enhances the load-bearing capacity and longevity of highways more than conventional bitumen. Statement-II: This is because it contains heavy hydrocarbons synthesized from crude oil residues.

Which one of the following is correct in respect of the above statements?

• (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

• (b) Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I

• (c) Statement-I is correct but Statement-II is incorrect

• (d) Statement-I is incorrect but Statement-II is correct

Solution: C

Explanation:

Union Minister inaugurated India’s first bio-bitumen-based National Highway stretch on NH-44, Nagpur-Mansar Bypass.

It is sustainable bio-based binder derived from renewable sources like crop stubble, vegetable oils, algae, or lignin.

• Statement-I is correct: Bio-bitumen has greater durability and load-bearing capacity, offering 40% more strength.

• Statement-II is incorrect: Bio-bitumen is not derived from crude oil residues, but from renewable sources like lignocellulosic biomass, not heavy hydrocarbons.

Solution: C

Explanation:

Union Minister inaugurated India’s first bio-bitumen-based National Highway stretch on NH-44, Nagpur-Mansar Bypass.

It is sustainable bio-based binder derived from renewable sources like crop stubble, vegetable oils, algae, or lignin.

• Statement-I is correct: Bio-bitumen has greater durability and load-bearing capacity, offering 40% more strength.

• Statement-II is incorrect: Bio-bitumen is not derived from crude oil residues, but from renewable sources like lignocellulosic biomass, not heavy hydrocarbons.

• Question 23 of 30 23. Question 1 points Which of the following are correct regarding the features of Operation Greens? It offers 50% transport and storage subsidies for selected perishable crops under short-term measures. It aims to build Farmer Producer Organizations (FPOs) and farm-gate infrastructure for long-term impact. The scheme operates under the Ministry of Agriculture and Farmers’ Welfare. Select the correct answer using the code below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct Solution: A Explanation: Operation Green: It is a Central Sector Scheme under the Pradhan Mantri Kisan SAMPADA Yojana to stabilize crop prices and ensure farmers’ welfare. Statement 1 is correct: A core component is 50% subsidy for transportation and storage, especially to curb distress sales. Statement 2 is correct: Long-term strategies include supporting FPOs, value chain development, and cold storage facilities. Statement 3 is incorrect: The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), not the Ministry of Agriculture. Crops Covered: Initially covered Tomato, Onion, and Potato (TOP); expanded in 2021 to include 22 perishable crops, including mango, banana, apple, guava, ginger, and shrimp. Incorrect Solution: A Explanation: Operation Green: It is a Central Sector Scheme under the Pradhan Mantri Kisan SAMPADA Yojana to stabilize crop prices and ensure farmers’ welfare. Statement 1 is correct: A core component is 50% subsidy for transportation and storage, especially to curb distress sales. Statement 2 is correct: Long-term strategies include supporting FPOs, value chain development, and cold storage facilities. Statement 3 is incorrect: The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), not the Ministry of Agriculture. Crops Covered: Initially covered Tomato, Onion, and Potato (TOP); expanded in 2021 to include 22 perishable crops, including mango, banana, apple, guava, ginger, and shrimp.

#### 23. Question

Which of the following are correct regarding the features of Operation Greens?

• It offers 50% transport and storage subsidies for selected perishable crops under short-term measures.

• It aims to build Farmer Producer Organizations (FPOs) and farm-gate infrastructure for long-term impact.

• The scheme operates under the Ministry of Agriculture and Farmers’ Welfare.

Select the correct answer using the code below:

• (a) 1 and 2 only

• (b) 2 and 3 only

• (c) 1 and 3 only

• (d) 1, 2 and 3

Solution: A

Explanation:

Operation Green: It is a Central Sector Scheme under the Pradhan Mantri Kisan SAMPADA Yojana to stabilize crop prices and ensure farmers’ welfare.

• Statement 1 is correct: A core component is 50% subsidy for transportation and storage, especially to curb distress sales.

• Statement 2 is correct: Long-term strategies include supporting FPOs, value chain development, and cold storage facilities.

• Statement 3 is incorrect: The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), not the Ministry of Agriculture.

• Crops Covered: Initially covered Tomato, Onion, and Potato (TOP); expanded in 2021 to include 22 perishable crops, including mango, banana, apple, guava, ginger, and shrimp.

Solution: A

Explanation:

Operation Green: It is a Central Sector Scheme under the Pradhan Mantri Kisan SAMPADA Yojana to stabilize crop prices and ensure farmers’ welfare.

• Statement 1 is correct: A core component is 50% subsidy for transportation and storage, especially to curb distress sales.

• Statement 2 is correct: Long-term strategies include supporting FPOs, value chain development, and cold storage facilities.

• Statement 3 is incorrect: The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), not the Ministry of Agriculture.

• Crops Covered: Initially covered Tomato, Onion, and Potato (TOP); expanded in 2021 to include 22 perishable crops, including mango, banana, apple, guava, ginger, and shrimp.

• Question 24 of 30 24. Question 1 points With reference to Indian UNESCO World Heritage Sites, consider the following statements: India’s first World Heritage Sites were listed in 1983 and included both cultural and natural sites. Khangchendzonga National Park is India’s only site currently recognized as having both cultural and natural significance. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: B Explanation: Statement 1 is incorrect: The first sites listed in 1983 — Agra Fort, Taj Mahal, Ajanta and Ellora Caves — were all cultural sites, not natural. The first natural sites, Keoladeo National Park and Kaziranga National Park, were inscribed in 1985. Therefore, the first set did not include natural sites. Statement 2 is correct: Khangchendzonga National Park is India’s only Mixed World Heritage Site, recognized for its spiritual traditions (cultural) and biodiversity (natural). Incorrect Solution: B Explanation: Statement 1 is incorrect: The first sites listed in 1983 — Agra Fort, Taj Mahal, Ajanta and Ellora Caves — were all cultural sites, not natural. The first natural sites, Keoladeo National Park and Kaziranga National Park, were inscribed in 1985. Therefore, the first set did not include natural sites. Statement 2 is correct: Khangchendzonga National Park is India’s only Mixed World Heritage Site, recognized for its spiritual traditions (cultural) and biodiversity (natural).

#### 24. Question

With reference to Indian UNESCO World Heritage Sites, consider the following statements:

• India’s first World Heritage Sites were listed in 1983 and included both cultural and natural sites.

• Khangchendzonga National Park is India’s only site currently recognized as having both cultural and natural significance.

Which of the statements given above is/are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: B

Explanation:

• Statement 1 is incorrect: The first sites listed in 1983 — Agra Fort, Taj Mahal, Ajanta and Ellora Caves — were all cultural sites, not natural. The first natural sites, Keoladeo National Park and Kaziranga National Park, were inscribed in 1985. Therefore, the first set did not include natural sites.

• The first natural sites, Keoladeo National Park and Kaziranga National Park, were inscribed in 1985. Therefore, the first set did not include natural sites.

• Statement 2 is correct: Khangchendzonga National Park is India’s only Mixed World Heritage Site, recognized for its spiritual traditions (cultural) and biodiversity (natural).

Solution: B

Explanation:

• The first natural sites, Keoladeo National Park and Kaziranga National Park, were inscribed in 1985. Therefore, the first set did not include natural sites.

• Question 25 of 30 25. Question 1 points Consider the following classification of MSMEs under the revised 2025 notification: Type Investment Threshold Turnover Threshold A. Micro Up to ₹2.5 crore Up to ₹10 crore B. Small ₹2.5 crore – ₹25 crore ₹10 crore – ₹100 crore C. Medium ₹25 crore – ₹125 crore ₹100 crore – ₹500 crore In how many of the above rows is the range-based classification correctly stated? (a) Only one (b) Only two (c) All three (d) None Correct Solution: C Explanation: This question tests whether the candidate can interpret threshold limits as ranges for policy categorization. A. Micro: The definition includes enterprises with investment up to ₹2.5 crore and turnover up to ₹10 crore. So, anything below these values qualifies as Micro. B. Small: Anything above Micro but not exceeding ₹25 crore investment and ₹100 crore turnover is classified as Small. C. Medium: Covers units with investment above ₹25 crore up to ₹125 crore and turnover from ₹100 crore up to ₹500 crore. All three rows correctly reflect the categorical boundaries using range-based logic. This conceptual clarity is often tested in UPSC when definitions overlap numerically. Incorrect Solution: C Explanation: This question tests whether the candidate can interpret threshold limits as ranges for policy categorization. A. Micro: The definition includes enterprises with investment up to ₹2.5 crore and turnover up to ₹10 crore. So, anything below these values qualifies as Micro. B. Small: Anything above Micro but not exceeding ₹25 crore investment and ₹100 crore turnover is classified as Small. C. Medium: Covers units with investment above ₹25 crore up to ₹125 crore and turnover from ₹100 crore up to ₹500 crore. All three rows correctly reflect the categorical boundaries using range-based logic. This conceptual clarity is often tested in UPSC when definitions overlap numerically.

#### 25. Question

Consider the following classification of MSMEs under the revised 2025 notification:

Type | Investment Threshold | Turnover Threshold

A. Micro | Up to ₹2.5 crore | Up to ₹10 crore

B. Small | ₹2.5 crore – ₹25 crore | ₹10 crore – ₹100 crore

C. Medium | ₹25 crore – ₹125 crore | ₹100 crore – ₹500 crore

In how many of the above rows is the range-based classification correctly stated?

• (a) Only one

• (b) Only two

• (c) All three

Solution: C

Explanation:

This question tests whether the candidate can interpret threshold limits as ranges for policy categorization.

• A. Micro: The definition includes enterprises with investment up to ₹2.5 crore and turnover up to ₹10 crore. So, anything below these values qualifies as Micro.

• B. Small: Anything above Micro but not exceeding ₹25 crore investment and ₹100 crore turnover is classified as Small.

• C. Medium: Covers units with investment above ₹25 crore up to ₹125 crore and turnover from ₹100 crore up to ₹500 crore.

All three rows correctly reflect the categorical boundaries using range-based logic. This conceptual clarity is often tested in UPSC when definitions overlap numerically.

Solution: C

Explanation:

This question tests whether the candidate can interpret threshold limits as ranges for policy categorization.

• A. Micro: The definition includes enterprises with investment up to ₹2.5 crore and turnover up to ₹10 crore. So, anything below these values qualifies as Micro.

• B. Small: Anything above Micro but not exceeding ₹25 crore investment and ₹100 crore turnover is classified as Small.

• C. Medium: Covers units with investment above ₹25 crore up to ₹125 crore and turnover from ₹100 crore up to ₹500 crore.

All three rows correctly reflect the categorical boundaries using range-based logic. This conceptual clarity is often tested in UPSC when definitions overlap numerically.

• Question 26 of 30 26. Question 1 points PASSAGE Attention Deficit Hyperactivity Disorder (ADHD) is a syndrome marked by pervasive inattention, impulsivity, and hyperactivity across all settings. Unlike situation-specific overactivity—caused by factors like overprotection or punitive parenting—true ADHD persists over time, severely impairing a child’s ability to focus even on enjoyable tasks. Normal overactivity in toddlers reduces with age, whereas pathological hyperactivity continues into adolescence, often linked to cognitive deficits. First, assess the child’s attention span and engage them in focused activities like building blocks, jigsaw puzzles, or simple games to improve concentration. Gradually involve them in group play to teach patience and prosocial behaviors. Consistent appreciation for good behavior is crucial, while punishment should be minimized. Physical restraint is advised only when the child is harming others. A calm, distraction-free environment enhances their focus. Exposure to television, digital games, and mobile phones must be limited, as these can worsen attentional issues and aggressive tendencies. Early intervention emphasizing structured activities, positive reinforcement, and a supportive environment can significantly improve outcomes for children with ADHD. Based on the above passage, the following assumptions have been made: ADHD is a specific syndrome characterized by inattention, impulsivity, and hyperactivity. Situational hyperactivity is not a disorder and can be addressed through counseling and behavioral management. Deterrance Punishment is one of the way’s to discipline children with ADHD. Television viewing, digital games, and mobile use helps avoid isolation for children with ADHD. Select correct answer using the code given below: a. 1 and 2 only b. 1, 2 and 3 only c. 1 only d. All of the above Correct Correct Option: A Justification : Assumption 1 is directly stated in the passage. Assumption 2 is also stated in the passage where it is mentioned that situational hyperactivity cannot be considered a disorder and can be addressed through counseling and behavioral management. Assumption 3, however, is incorrect as the passage suggests that punishment is to be avoided as much as possible, and physical restraint should only be used when the child is harming others. Assumption 4 is also incorrect as the passage suggests that television viewing, digital games, and mobile use should be avoided as they can exacerbate attentional problems and aggressive behaviors. Incorrect Correct Option: A Justification : Assumption 1 is directly stated in the passage. Assumption 2 is also stated in the passage where it is mentioned that situational hyperactivity cannot be considered a disorder and can be addressed through counseling and behavioral management. Assumption 3, however, is incorrect as the passage suggests that punishment is to be avoided as much as possible, and physical restraint should only be used when the child is harming others. Assumption 4 is also incorrect as the passage suggests that television viewing, digital games, and mobile use should be avoided as they can exacerbate attentional problems and aggressive behaviors.

#### 26. Question

PASSAGE

Attention Deficit Hyperactivity Disorder (ADHD) is a syndrome marked by pervasive inattention, impulsivity, and hyperactivity across all settings. Unlike situation-specific overactivity—caused by factors like overprotection or punitive parenting—true ADHD persists over time, severely impairing a child’s ability to focus even on enjoyable tasks. Normal overactivity in toddlers reduces with age, whereas pathological hyperactivity continues into adolescence, often linked to cognitive deficits. First, assess the child’s attention span and engage them in focused activities like building blocks, jigsaw puzzles, or simple games to improve concentration. Gradually involve them in group play to teach patience and prosocial behaviors. Consistent appreciation for good behavior is crucial, while punishment should be minimized. Physical restraint is advised only when the child is harming others. A calm, distraction-free environment enhances their focus. Exposure to television, digital games, and mobile phones must be limited, as these can worsen attentional issues and aggressive tendencies. Early intervention emphasizing structured activities, positive reinforcement, and a supportive environment can significantly improve outcomes for children with ADHD.

Based on the above passage, the following assumptions have been made:

• ADHD is a specific syndrome characterized by inattention, impulsivity, and hyperactivity. Situational hyperactivity is not a disorder and can be addressed through counseling and behavioral management. Deterrance Punishment is one of the way’s to discipline children with ADHD. Television viewing, digital games, and mobile use helps avoid isolation for children with ADHD.

• ADHD is a specific syndrome characterized by inattention, impulsivity, and hyperactivity.

• Situational hyperactivity is not a disorder and can be addressed through counseling and behavioral management.

• Deterrance Punishment is one of the way’s to discipline children with ADHD.

• Television viewing, digital games, and mobile use helps avoid isolation for children with ADHD.

Select correct answer using the code given below:

• a. 1 and 2 only

• b. 1, 2 and 3 only

• d. All of the above

Correct Option: A

Justification :

Assumption 1 is directly stated in the passage. Assumption 2 is also stated in the passage where it is mentioned that situational hyperactivity cannot be considered a disorder and can be addressed through counseling and behavioral management. Assumption 3, however, is incorrect as the passage suggests that punishment is to be avoided as much as possible, and physical restraint should only be used when the child is harming others. Assumption 4 is also incorrect as the passage suggests that television viewing, digital games, and mobile use should be avoided as they can exacerbate attentional problems and aggressive behaviors.

Correct Option: A

Justification :

• Question 27 of 30 27. Question 1 points If CARING is coded as MPDRGF, and SHARES is coded as XLPDUX, how could CASE be possibly coded in the same code? a. LMPA b. MXPU c. MPDP d. MPXU Correct Correct Option: D Justification : Comparing both coded words we get By decoding CARING we get, C=M, A=P, R=D, I=R, N=G, G=F. By decoding SHARES we get, S=X, H= L, A=P, R=D, E=U, S= X Therefore by replacing CASKET with above codes, we get CASKET = MPXU Hence, option (d) is correct. Incorrect Correct Option: D Justification : Comparing both coded words we get By decoding CARING we get, C=M, A=P, R=D, I=R, N=G, G=F. By decoding SHARES we get, S=X, H= L, A=P, R=D, E=U, S= X Therefore by replacing CASKET with above codes, we get CASKET = MPXU Hence, option (d) is correct.rf5

#### 27. Question

If CARING is coded as MPDRGF, and SHARES is coded as XLPDUX, how could CASE be possibly coded in the same code?

Correct Option: D

Justification :

Comparing both coded words we get

• By decoding CARING we get, C=M, A=P, R=D, I=R, N=G, G=F.

• By decoding SHARES we get, S=X, H= L, A=P, R=D, E=U, S= X

Therefore by replacing CASKET with above codes, we get

• CASKET = MPXU

Hence, option (d) is correct.

Correct Option: D

Justification :

Comparing both coded words we get

• By decoding CARING we get, C=M, A=P, R=D, I=R, N=G, G=F.

• By decoding SHARES we get, S=X, H= L, A=P, R=D, E=U, S= X

Therefore by replacing CASKET with above codes, we get

• CASKET = MPXU

Hence, option (d) is correct.rf5

• Question 28 of 30 28. Question 1 points In a certain code: ‘il be pee’ means ‘roses are blue’, ‘sikhee’ means ‘red flowers’ and ‘pee mithee’ means ‘flowers are vegetables’, How is ‘red’ written in that code? a. hee b. sik c. be d. cannot be determined Correct Correct Option: B Justification : Code Sentence Il be pee roses are blue Sik hee red flowers Pee mithee flowers are vegetables In II and III code ‘hee’ stands for ‘flowers’. So ‘sik’ stands for ‘red’ Incorrect Correct Option: B Justification : Code Sentence Il be pee roses are blue Sik hee red flowers Pee mithee flowers are vegetables In II and III code ‘hee’ stands for ‘flowers’. So ‘sik’ stands for ‘red’

#### 28. Question

In a certain code:

‘il be pee’ means ‘roses are blue’,

‘sikhee’ means ‘red flowers’ and

‘pee mithee’ means ‘flowers are vegetables’,

How is ‘red’ written in that code?

• d. cannot be determined

Correct Option: B

Justification :

Code Sentence

Il be pee roses are blue

Sik hee red flowers

Pee mithee flowers are vegetables

In II and III code ‘hee’ stands for ‘flowers’.

So ‘sik’ stands for ‘red’

Correct Option: B

Justification :

Code Sentence

Il be pee roses are blue

Sik hee red flowers

Pee mithee flowers are vegetables

In II and III code ‘hee’ stands for ‘flowers’.

So ‘sik’ stands for ‘red’

• Question 29 of 30 29. Question 1 points In a certain code, COMPUTER is written as RFUVQNPC. How is MEDICINE written in the same code? a. MFEDJJOE b. EOJDEJFM c. MFEJDJOE d. EOJDJEFM Correct Correct Option: D Justification: The letters of the word are written in reverse order and expect the first and the last letter all other letters are move one step forward Incorrect Correct Option: D Justification: The letters of the word are written in reverse order and expect the first and the last letter all other letters are move one step forward Justification: As per the given information, we can derive following information: J÷P% H ? T % L can be written as J (male) is son of P (female) who is mother of H. T (female) is mother of C Therefore, J is brother of H. If J has to be brother of T, then T must be sister of H. In symbolic we can write it as H x T. Hence, option (a) is correct.

#### 29. Question

In a certain code, COMPUTER is written as RFUVQNPC. How is MEDICINE written in the same code?

• a. MFEDJJOE

• b. EOJDEJFM

• c. MFEJDJOE

• d. EOJDJEFM

Correct Option: D

Justification:

The letters of the word are written in reverse order and expect the first and the last letter all other letters are

move one step forward

Correct Option: D

Justification:

The letters of the word are written in reverse order and expect the first and the last letter all other letters are

move one step forward

Justification:

As per the given information, we can derive following information:

J÷P% H ? T % L can be written as

J (male) is son of P (female) who is mother of H.

T (female) is mother of C

Therefore, J is brother of H.

If J has to be brother of T, then T must be sister of H.

In symbolic we can write it as H x T.

Hence, option (a) is correct.

• Question 30 of 30 30. Question 1 points In a certain code, ‘XYZ’ means ‘We are friends’. Which of the following statements is/are sufficient to identify the letter which stands for ‘We’? Statements: ‘PYN’ means ‘They are classmates’. ‘ZMS’ means ‘We love them’. ‘PX’ means ‘Hello Friends’. Select the correct answer from the codes below: a. Only 2 b. Only 1 and 3 c. Either 1 only or 2 only d. Either 2 only or 1 and 3 only Correct Correct Option: D Justification: To find the code for ‘we’. We need to have the following. ‘We are friends’ should have only ‘We’ common with another statement, as in statement 2. ‘We are friends’ should have only ‘are’ and ‘friends’ common with another single or two statements as in 1 and 3. Thus, we need either 2 only or 1 and 3 only. Incorrect Correct Option: D Justification: To find the code for ‘we’. We need to have the following. ‘We are friends’ should have only ‘We’ common with another statement, as in statement 2. ‘We are friends’ should have only ‘are’ and ‘friends’ common with another single or two statements as in 1 and 3. Thus, we need either 2 only or 1 and 3 only.

#### 30. Question

In a certain code, ‘XYZ’ means ‘We are friends’. Which of the following statements is/are sufficient to identify the letter which stands for ‘We’?

Statements:

‘PYN’ means ‘They are classmates’.

‘ZMS’ means ‘We love them’.

‘PX’ means ‘Hello Friends’.

Select the correct answer from the codes below:

• b. Only 1 and 3

• c. Either 1 only or 2 only

• d. Either 2 only or 1 and 3 only

Correct Option: D

Justification:

To find the code for ‘we’. We need to have the following.

‘We are friends’ should have only ‘We’ common with another statement, as in statement 2.

‘We are friends’ should have only ‘are’ and ‘friends’ common with another single or two statements as in 1 and 3.

Thus, we need either 2 only or 1 and 3 only.

Correct Option: D

Justification:

To find the code for ‘we’. We need to have the following.

‘We are friends’ should have only ‘We’ common with another statement, as in statement 2.

‘We are friends’ should have only ‘are’ and ‘friends’ common with another single or two statements as in 1 and 3.