UPSC Editorials Quiz : 30 December 2025

Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.

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• Question 1 of 5 1. Question Consider the following statements regarding the recent trends in India’s Balance of Payments (BoP) and Foreign Investment: Statement I: In the fiscal year 2025-26, India witnessed instances where the Net Foreign Direct Investment (FDI) turned negative for consecutive months despite positive Gross Inflows. Statement II: There has been a surge in the repatriation of equity capital by foreign investors and an increase in outward direct investment by Indian entities. Statement III: The “China Plus One” strategy has led to a saturation of global supply chains, causing a universal cessation of new equity inflows into emerging markets. Which one of the following is correct in respect of the above statements? (a) Both Statement II and Statement III are correct and both of them explain Statement I (b) Both Statement II and Statement III are correct but only one of them explains Statement I (c) Only one of the Statements II and III is correct and that explains Statement I (d) Neither Statement II nor Statement III is correct Correct Solution: C Statement I is correct. Recent Balance of Payments data released by the Reserve Bank of India have shown episodes where net FDI inflows turned negative even though gross inflows continued. This occurs when outflows—such as repatriation of profits, sale of equity, or outward investments—exceed new inflows. Statement II is correct and directly explains Statement I. In recent years, foreign investors have increasingly repatriated equity capital due to global monetary tightening, portfolio rebalancing, and profit booking. At the same time, Indian companies have expanded their outward direct investment to acquire assets, technology, and market access abroad. Together, these factors raise FDI outflows, which can outweigh gross inflows and result in negative net FDI figures. Statement III is incorrect. The “China Plus One” strategy does not imply a universal halt of equity inflows into emerging markets. On the contrary, it has led to a reallocation of global investment toward select emerging economies, including India, Vietnam, and Indonesia, depending on sectoral competitiveness, policy stability, and infrastructure readiness. Hence, only Statement II correctly explains Statement I. Incorrect Solution: C Statement I is correct. Recent Balance of Payments data released by the Reserve Bank of India have shown episodes where net FDI inflows turned negative even though gross inflows continued. This occurs when outflows—such as repatriation of profits, sale of equity, or outward investments—exceed new inflows. Statement II is correct and directly explains Statement I. In recent years, foreign investors have increasingly repatriated equity capital due to global monetary tightening, portfolio rebalancing, and profit booking. At the same time, Indian companies have expanded their outward direct investment to acquire assets, technology, and market access abroad. Together, these factors raise FDI outflows, which can outweigh gross inflows and result in negative net FDI figures. Statement III is incorrect. The “China Plus One” strategy does not imply a universal halt of equity inflows into emerging markets. On the contrary, it has led to a reallocation of global investment toward select emerging economies, including India, Vietnam, and Indonesia, depending on sectoral competitiveness, policy stability, and infrastructure readiness. Hence, only Statement II correctly explains Statement I.

#### 1. Question

Consider the following statements regarding the recent trends in India’s Balance of Payments (BoP) and Foreign Investment:

Statement I: In the fiscal year 2025-26, India witnessed instances where the Net Foreign Direct Investment (FDI) turned negative for consecutive months despite positive Gross Inflows.

Statement II: There has been a surge in the repatriation of equity capital by foreign investors and an increase in outward direct investment by Indian entities.

Statement III: The “China Plus One” strategy has led to a saturation of global supply chains, causing a universal cessation of new equity inflows into emerging markets.

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

• (a) Both Statement II and Statement III are correct and both of them explain Statement I

• (b) Both Statement II and Statement III are correct but only one of them explains Statement I

• (c) Only one of the Statements II and III is correct and that explains Statement I

• (d) Neither Statement II nor Statement III is correct

Solution: C

• Statement I is correct. Recent Balance of Payments data released by the Reserve Bank of India have shown episodes where net FDI inflows turned negative even though gross inflows continued. This occurs when outflows—such as repatriation of profits, sale of equity, or outward investments—exceed new inflows.

• Statement II is correct and directly explains Statement I. In recent years, foreign investors have increasingly repatriated equity capital due to global monetary tightening, portfolio rebalancing, and profit booking. At the same time, Indian companies have expanded their outward direct investment to acquire assets, technology, and market access abroad. Together, these factors raise FDI outflows, which can outweigh gross inflows and result in negative net FDI figures.

• Statement III is incorrect. The “China Plus One” strategy does not imply a universal halt of equity inflows into emerging markets. On the contrary, it has led to a reallocation of global investment toward select emerging economies, including India, Vietnam, and Indonesia, depending on sectoral competitiveness, policy stability, and infrastructure readiness. Hence, only Statement II correctly explains Statement I.

Solution: C

• Question 2 of 5 2. Question With reference to the Election Commission of India (ECI) and electoral management, consider the following statements: The “Special Intensive Revision” (SIR) of electoral rolls is a statutory process aimed at identifying and rectifying discrepancies in voter lists, including the deletion of ineligible voters. The “Suvidha Portal” was launched by the ECI primarily to serve as a Single Window System for voters to file appeals against the wrongful deletion of their names from electoral rolls. Under the Representation of the People Act, 1951, the power to decide disputes regarding the acceptance or rejection of nomination papers lies with the Returning Officer. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Statement 1 is correct. The Special Intensive Revision (SIR) of electoral rolls is a legally grounded exercise conducted under the Representation of the People Act, 1950 and the Registration of Electors Rules, 1960. It is undertaken periodically to ensure the accuracy, completeness, and purity of electoral rolls by adding eligible voters, correcting errors, and deleting names of ineligible voters such as deceased persons, shifted electors, or duplicate entries. SIRs are often conducted ahead of major elections or when systemic issues in voter lists are suspected. Statement 2 is incorrect. The Suvidha Portal is primarily designed as a single-window digital platform for candidates and political parties to seek permissions, file nominations-related information, and track approvals for rallies, meetings, and campaign-related activities. Grievance redressal for wrongful deletion of names from electoral rolls is handled through other mechanisms such as Form 17, Form 7, and dedicated voter grievance portals like NVSP (National Voters’ Service Portal), not Suvidha. Statement 3 is correct. Under the Representation of the People Act, 1951, the Returning Officer is the statutory authority empowered to scrutinize nomination papers and decide on their acceptance or rejection at the time of scrutiny. Such decisions can later be challenged only through an election petition before the appropriate High Court, not before the Election Commission itself. Incorrect Solution: B Statement 1 is correct. The Special Intensive Revision (SIR) of electoral rolls is a legally grounded exercise conducted under the Representation of the People Act, 1950 and the Registration of Electors Rules, 1960. It is undertaken periodically to ensure the accuracy, completeness, and purity of electoral rolls by adding eligible voters, correcting errors, and deleting names of ineligible voters such as deceased persons, shifted electors, or duplicate entries. SIRs are often conducted ahead of major elections or when systemic issues in voter lists are suspected. Statement 2 is incorrect. The Suvidha Portal is primarily designed as a single-window digital platform for candidates and political parties to seek permissions, file nominations-related information, and track approvals for rallies, meetings, and campaign-related activities. Grievance redressal for wrongful deletion of names from electoral rolls is handled through other mechanisms such as Form 17, Form 7, and dedicated voter grievance portals like NVSP (National Voters’ Service Portal), not Suvidha. Statement 3 is correct. Under the Representation of the People Act, 1951, the Returning Officer is the statutory authority empowered to scrutinize nomination papers and decide on their acceptance or rejection at the time of scrutiny. Such decisions can later be challenged only through an election petition before the appropriate High Court, not before the Election Commission itself.

#### 2. Question

With reference to the Election Commission of India (ECI) and electoral management, consider the following statements:

• The “Special Intensive Revision” (SIR) of electoral rolls is a statutory process aimed at identifying and rectifying discrepancies in voter lists, including the deletion of ineligible voters.

• The “Suvidha Portal” was launched by the ECI primarily to serve as a Single Window System for voters to file appeals against the wrongful deletion of their names from electoral rolls.

• Under the Representation of the People Act, 1951, the power to decide disputes regarding the acceptance or rejection of nomination papers lies with the Returning Officer.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• Statement 1 is correct. The Special Intensive Revision (SIR) of electoral rolls is a legally grounded exercise conducted under the Representation of the People Act, 1950 and the Registration of Electors Rules, 1960. It is undertaken periodically to ensure the accuracy, completeness, and purity of electoral rolls by adding eligible voters, correcting errors, and deleting names of ineligible voters such as deceased persons, shifted electors, or duplicate entries. SIRs are often conducted ahead of major elections or when systemic issues in voter lists are suspected.

• Statement 2 is incorrect. The Suvidha Portal is primarily designed as a single-window digital platform for candidates and political parties to seek permissions, file nominations-related information, and track approvals for rallies, meetings, and campaign-related activities. Grievance redressal for wrongful deletion of names from electoral rolls is handled through other mechanisms such as Form 17, Form 7, and dedicated voter grievance portals like NVSP (National Voters’ Service Portal), not Suvidha.

• Statement 3 is correct. Under the Representation of the People Act, 1951, the Returning Officer is the statutory authority empowered to scrutinize nomination papers and decide on their acceptance or rejection at the time of scrutiny. Such decisions can later be challenged only through an election petition before the appropriate High Court, not before the Election Commission itself.

Solution: B

• Question 3 of 5 3. Question Consider the following statements regarding the ‘Kalvari-class’ submarines of the Indian Navy: They are the first category of submarines in the Indian Navy to be powered exclusively by nuclear propulsion. The “Scorpene” design used in this class allows them to remain submerged indefinitely without the need to surface for battery charging. Which of the above statements are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Correct Solution: D Statement 1 is incorrect. The Kalvari-class submarines are conventional diesel-electric attack submarines, constructed under Project-75 with technology transfer from France. Nuclear propulsion in the Indian Navy is confined to the Arihant-class SSBNs and proposed nuclear-powered attack submarines (SSNs), which are entirely separate programmes. Neither Project-75 nor the Kalvari-class involves nuclear propulsion. Statement 2 is also incorrect. Although the Scorpene design can be fitted with Air Independent Propulsion (AIP), the Kalvari-class submarines commissioned so far operate without an active AIP system. As diesel-electric submarines, they must periodically surface or snorkel to recharge batteries. Only nuclear-powered submarines can remain submerged for very long durations without surfacing, limited mainly by crew endurance and supplies. Incorrect Solution: D Statement 1 is incorrect. The Kalvari-class submarines are conventional diesel-electric attack submarines, constructed under Project-75 with technology transfer from France. Nuclear propulsion in the Indian Navy is confined to the Arihant-class SSBNs and proposed nuclear-powered attack submarines (SSNs), which are entirely separate programmes. Neither Project-75 nor the Kalvari-class involves nuclear propulsion. Statement 2 is also incorrect. Although the Scorpene design can be fitted with Air Independent Propulsion (AIP), the Kalvari-class submarines commissioned so far operate without an active AIP system. As diesel-electric submarines, they must periodically surface or snorkel to recharge batteries. Only nuclear-powered submarines can remain submerged for very long durations without surfacing, limited mainly by crew endurance and supplies.

#### 3. Question

Consider the following statements regarding the ‘Kalvari-class’ submarines of the Indian Navy:

• They are the first category of submarines in the Indian Navy to be powered exclusively by nuclear propulsion.

• The “Scorpene” design used in this class allows them to remain submerged indefinitely without the need to surface for battery charging.

Which of the above statements are correct?

• (a) 1 only

• (b) 2 only

• (c) Both 1 and 2

• (d) Neither 1 nor 2

Solution: D

• Statement 1 is incorrect. The Kalvari-class submarines are conventional diesel-electric attack submarines, constructed under Project-75 with technology transfer from France. Nuclear propulsion in the Indian Navy is confined to the Arihant-class SSBNs and proposed nuclear-powered attack submarines (SSNs), which are entirely separate programmes. Neither Project-75 nor the Kalvari-class involves nuclear propulsion.

• Statement 2 is also incorrect. Although the Scorpene design can be fitted with Air Independent Propulsion (AIP), the Kalvari-class submarines commissioned so far operate without an active AIP system. As diesel-electric submarines, they must periodically surface or snorkel to recharge batteries. Only nuclear-powered submarines can remain submerged for very long durations without surfacing, limited mainly by crew endurance and supplies.

Solution: D

• Question 4 of 5 4. Question In the context of the Digital Personal Data Protection (DPDP) Act, 2023, the term “Data Fiduciary” refers to: a) The individual to whom the personal data relates. b) The entity that determines the purpose and means of processing of personal data. c) The government agency responsible for storing all citizen data in a centralized repository. d) The appellate tribunal established to hear grievances regarding data breaches. Correct Solution: B Under the DPDP Act, 2023, a Data Fiduciary is defined as any person, company, firm, State, or other entity that determines the purpose and means of processing personal data. This concept is broadly aligned with the idea of a “data controller” in global data protection regimes such as the EU’s GDPR, though the Indian law uses its own terminology. The Data Fiduciary bears primary responsibility for ensuring lawful processing, data minimisation, purpose limitation, accuracy, storage limitation, and security safeguards. Incorrect Solution: B Under the DPDP Act, 2023, a Data Fiduciary is defined as any person, company, firm, State, or other entity that determines the purpose and means of processing personal data. This concept is broadly aligned with the idea of a “data controller” in global data protection regimes such as the EU’s GDPR, though the Indian law uses its own terminology. The Data Fiduciary bears primary responsibility for ensuring lawful processing, data minimisation, purpose limitation, accuracy, storage limitation, and security safeguards.

#### 4. Question

In the context of the Digital Personal Data Protection (DPDP) Act, 2023, the term “Data Fiduciary” refers to:

• a) The individual to whom the personal data relates.

• b) The entity that determines the purpose and means of processing of personal data.

• c) The government agency responsible for storing all citizen data in a centralized repository.

• d) The appellate tribunal established to hear grievances regarding data breaches.

Solution: B

Under the DPDP Act, 2023, a Data Fiduciary is defined as any person, company, firm, State, or other entity that determines the purpose and means of processing personal data. This concept is broadly aligned with the idea of a “data controller” in global data protection regimes such as the EU’s GDPR, though the Indian law uses its own terminology. The Data Fiduciary bears primary responsibility for ensuring lawful processing, data minimisation, purpose limitation, accuracy, storage limitation, and security safeguards.

Solution: B

• Question 5 of 5 5. Question Consider the following statements: Statement I: A negative Net Foreign Direct Investment (FDI) flow indicates that the total value of capital repatriation and outward investment by domestic firms exceeds the gross inflow of foreign equity capital. Statement II: The Reserve Bank of India manages the volatility in the currency exchange rate primarily by adjusting the Repo Rate and conducting Open Market Operations (OMOs). 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 and 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 Statement I is correct. Net FDI is calculated as gross foreign direct investment inflows minus FDI outflows, which include repatriation of equity capital, disinvestment by foreign investors, and outward direct investment by domestic firms. When these outflows exceed new inflows, net FDI turns negative. Such a situation does not imply a collapse of investor interest per se; rather, it reflects the balance between fresh investments and withdrawals or overseas expansion by resident firms. Statement II is incorrect. While interest rates and liquidity conditions can indirectly influence capital flows and exchange rate dynamics, the Reserve Bank of India does not manage currency volatility primarily through repo rate changes or OMOs. Exchange rate management is mainly carried out through foreign exchange market interventions, such as buying or selling foreign currency, supported by macro-prudential measures and capital flow management tools. Repo rate adjustments are aimed at inflation targeting and domestic monetary conditions, not direct exchange rate stabilisation. Incorrect Solution: C Statement I is correct. Net FDI is calculated as gross foreign direct investment inflows minus FDI outflows, which include repatriation of equity capital, disinvestment by foreign investors, and outward direct investment by domestic firms. When these outflows exceed new inflows, net FDI turns negative. Such a situation does not imply a collapse of investor interest per se; rather, it reflects the balance between fresh investments and withdrawals or overseas expansion by resident firms. Statement II is incorrect. While interest rates and liquidity conditions can indirectly influence capital flows and exchange rate dynamics, the Reserve Bank of India does not manage currency volatility primarily through repo rate changes or OMOs. Exchange rate management is mainly carried out through foreign exchange market interventions, such as buying or selling foreign currency, supported by macro-prudential measures and capital flow management tools. Repo rate adjustments are aimed at inflation targeting and domestic monetary conditions, not direct exchange rate stabilisation.

#### 5. Question

Consider the following statements:

Statement I: A negative Net Foreign Direct Investment (FDI) flow indicates that the total value of capital repatriation and outward investment by domestic firms exceeds the gross inflow of foreign equity capital.

Statement II: The Reserve Bank of India manages the volatility in the currency exchange rate primarily by adjusting the Repo Rate and conducting Open Market Operations (OMOs).

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 and 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

• Statement I is correct. Net FDI is calculated as gross foreign direct investment inflows minus FDI outflows, which include repatriation of equity capital, disinvestment by foreign investors, and outward direct investment by domestic firms. When these outflows exceed new inflows, net FDI turns negative. Such a situation does not imply a collapse of investor interest per se; rather, it reflects the balance between fresh investments and withdrawals or overseas expansion by resident firms.

• Statement II is incorrect. While interest rates and liquidity conditions can indirectly influence capital flows and exchange rate dynamics, the Reserve Bank of India does not manage currency volatility primarily through repo rate changes or OMOs. Exchange rate management is mainly carried out through foreign exchange market interventions, such as buying or selling foreign currency, supported by macro-prudential measures and capital flow management tools. Repo rate adjustments are aimed at inflation targeting and domestic monetary conditions, not direct exchange rate stabilisation.

Solution: C

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