Indian Economy - A Profile

A sick industrial unit is defined as one that is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis. This means that the unit is facing difficulties in generating profits consistently and is unable to operate efficiently. It may be experiencing financial losses, operational inefficiencies, or other challenges that hinder its ability to function effectively.

All of the above options can contribute to the failure to achieve targets of industrial production. Poor planning can lead to inefficient allocation of resources and lack of coordination, resulting in lower production levels. Power, finance, and labor problems can disrupt the production process, leading to delays or stoppages. Technical complications, such as equipment malfunctions or technological limitations, can also hinder production. Therefore, all these factors combined can lead to the failure to achieve industrial production targets.

Regional Rural Banks have been specifically established to meet the requirements of credit of the farmers and villagers. These banks were set up to provide banking services in rural areas and cater to the financial needs of the agricultural sector. They focus on providing credit facilities to small and marginal farmers, agricultural laborers, and rural artisans. Regional Rural Banks play a crucial role in promoting rural development and supporting the agricultural economy of the country.

An economy is considered underdeveloped if the standard of living of people is low, indicating a lack of access to basic necessities and a lower quality of life. Additionally, if productivity is considerably low, it suggests that the economy is not efficiently utilizing its resources and is unable to generate sufficient output. Agriculture being the main occupation with low productivity further indicates a lack of diversification and reliance on traditional, less efficient methods. Lastly, the presence of backward production techniques implies a lack of technological advancements and modernization. Therefore, all of these factors collectively contribute to categorizing an economy as underdeveloped.

The correct answer is "All of the above." This is because the statement mentions three problems in the agriculture sector: slow and uneven growth, inadequate and incomplete land reforms, and inadequate finance. The phrase "All of the above" indicates that all three of these problems are applicable to the agriculture sector.

BPO stands for Business Process Outsourcing. This term refers to the practice of contracting out specific business operations and processes to a third-party service provider. Companies often outsource tasks such as customer support, data entry, payroll processing, and IT services to specialized BPO firms, allowing them to focus on their core competencies and reduce costs. BPO has become a popular strategy for organizations looking to streamline their operations and improve efficiency.

NABARD is the apex bank for agriculture credit in India. NABARD, which stands for National Bank for Agriculture and Rural Development, is responsible for providing and regulating credit for agriculture and rural development in the country. It plays a crucial role in promoting and supporting agricultural activities, rural development, and overall financial inclusion. NABARD works closely with other financial institutions, government agencies, and stakeholders to ensure the availability of credit for the agricultural sector and to enhance the overall productivity and sustainability of rural areas.

The given organizations, Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India, and Bharat Heavy Electricals, are all examples of public sector units. This means that they are owned and controlled by the government. Public sector units are established to provide essential goods and services to the public and are often involved in industries such as energy, manufacturing, and infrastructure development. These organizations play a crucial role in the country's economy and are responsible for contributing to the overall welfare of the society.

The Indian industry faced retrogression and deceleration due to the unsatisfactory performance of agriculture, slackening of real investment in the public sector, and a narrow market for industrial goods, especially in rural areas. These factors combined to create a challenging environment for the Indian industry, leading to a slowdown in growth and progress.

The correct answer is personal income tax because it is a direct tax that is levied on the income earned by individuals. This tax is based on the individual's income and is paid directly by the taxpayer to the government. In contrast, excise duty, sales tax, and service tax are indirect taxes that are imposed on goods and services, and are ultimately passed on to the consumer.

The correct answer is "Increased". This means that over the planning period, the share of the industrial sector in India's GDP has gone up. This indicates that the industrial sector has been growing and contributing more to the overall economy.

The industrial sector depends on the agricultural sector because the agriculture sector provides food and other products for the consumption purposes of the industrial sector. Additionally, the agriculture sector provides raw materials for the development of agro-based industries in the economy. Furthermore, the agricultural sector also provides a market for the industrial products.

The correct answer is that the tertiary sector contributes the maximum to the GDP. This means that the services sector, which includes industries such as banking, retail, tourism, and healthcare, contributes the most to the overall economic output of the country. This statement suggests that the services sector is a significant driver of economic growth in India.

High productivity of labor and capital cannot cause sickness to an industrial unit. In fact, high productivity is usually desirable as it indicates efficient use of resources and increased output. Sickness in an industrial unit is more likely to be caused by factors such as demand recession, which leads to reduced sales and profitability, uneconomic size, which means the unit is too small to be viable, and financial mismanagement, which can result in cash flow problems and insolvency.

The correct answer is "One Third." This means that the service sector accounted for approximately 33.33% of exports in 2009-10.

The given answer "None of the above" is correct because all the statements mentioned in the options are correct. GDP at market price is equal to GDP at factor cost plus net indirect taxes. NNP at factor cost is equal to NNP at market price minus indirect taxes. GNP at market price is equal to GDP at market price plus net factor income from abroad. Therefore, there is no incorrect statement among the given options.

Per capita national income refers to the average income earned by each individual in a country. It is calculated by dividing the total national income (NNP) by the population. Therefore, the correct answer is NNP + population, as it represents the calculation required to determine per capita national income.

The correct answer is "All of the above" because all the given statements contribute to the modernization of Indian agriculture. The increased use of high yielding varieties of seeds, fertilizers, and pesticides indicates the adoption of advanced techniques and technologies in farming. The positive change in the attitude of farmers towards new production techniques shows their willingness to embrace modern methods. The adoption of intensive cultivation, multiple cropping, and scientific water management practices further indicates the modernization of agriculture. Therefore, all the given statements collectively support the claim that Indian agriculture has become modern.

The correct answer is "Increased." This means that the area under irrigation in India has grown over the years. This suggests that more land has been brought under irrigation, indicating an expansion in agricultural practices and potentially improved water management strategies.

Industrially well-developed countries tend to have higher per capita income because industrialization leads to increased productivity, higher wages, and technological advancements. This allows these countries to produce more goods and services, leading to higher incomes for their citizens. On the other hand, countries that are not industrially well-developed often have lower levels of productivity and limited access to technology, resulting in lower per capita income.

Small scale units exist in India because they are labour intensive and India is a labour surplus economy. This means that there is a large pool of available labor in India, making it cost-effective for small scale units to rely on manual labor. Additionally, small scale units offer methods of ensuring more equitable distribution of income and wealth. By providing opportunities for small entrepreneurs to start their own businesses, small scale units contribute to the creation of a wider entrepreneurial base in India. Therefore, all of the above reasons contribute to the existence of small scale units in India.

The correct answer is "Increased." This means that the number of people engaged in agricultural activities has grown over the planning period.

India has the third largest scientific and technical manpower in the world. This means that India has a significant number of individuals who are trained and skilled in scientific and technical fields. The ranking suggests that India's scientific and technical workforce is among the largest globally, indicating the country's strong emphasis on education and investment in these areas.

National income is the total income earned by individuals and businesses within a country's borders in a given period. Net national product at market price, on the other hand, is the total value of goods and services produced by a country's residents, including net indirect taxes. Therefore, the correct answer is net indirect taxes, as it is the only option that causes a difference between national income and net national product at market price.

The correct answer is "At present, income tax revenues from the agriculture sector are negligible." This statement is correct because in many countries, including India, agricultural income is exempt from income tax. This exemption is aimed at supporting and promoting the agricultural sector, which is considered essential for food security and rural development. As a result, the income tax revenues generated from the agriculture sector are minimal or negligible.

The correct answer is the Second plan. The question is asking about the time period in which the steel plants in Bhilai, Rourkela, and Durgapur were set up. The First plan was implemented from 1951 to 1956, and the Second plan was implemented from 1956 to 1961. Since the steel plants were set up during the Second plan, it is the correct answer.

The share of agriculture in India's national income has decreased over the years. This suggests that the contribution of agriculture to the overall economy has become relatively smaller compared to other sectors. This could be due to various factors such as the growth of other industries, urbanization, and changes in the economic structure of the country.

The Eleventh Plan aimed at achieving a growth rate of 10 percent in the industrial sector. This indicates that the plan had set a target for the industrial sector to grow at a rate of 10 percent during the specified period. This growth rate goal suggests that the plan aimed to promote and support the development and expansion of industries, which would contribute to overall economic growth and development.

The demand for final consumption arises in both the household and government sectors. In the household sector, individuals and families consume goods and services for their personal use. This includes everyday items like food, clothing, and housing, as well as services like healthcare and education. On the other hand, the government sector also has a demand for final consumption as it provides public goods and services to the citizens. This includes infrastructure projects, defense, healthcare, education, and other services that are consumed by the government and the general public. Therefore, both sectors contribute to the overall demand for final consumption.

The correct answer is "Gift tax was abolished in India in 1998, but income tax on gifts (received without adequate consideration) was partially reintroduced in April 2005." This statement accurately reflects the history of gift tax in India. It states that gift tax was abolished in 1998, but income tax on gifts was partially reintroduced in 2005 for gifts received without adequate consideration. This means that if someone receives a gift without giving anything in return or with insufficient consideration, they may be subject to income tax on that gift.

The Mahalanobis model emphasized the development and growth of capital and basic goods industries. This means that the focus was on industries that produce machinery, equipment, and other essential goods needed for the overall economic development of a country. By prioritizing the establishment of these industries, the model aimed to create a solid foundation for industrialization and economic self-sufficiency. This approach is based on the belief that a strong industrial sector is crucial for achieving sustainable economic growth and reducing dependency on imports.

The correct answer is "More than 50 per cent of GDP." This means that the service sector in India contributes to more than half of the country's Gross Domestic Product (GDP). This indicates that the service industry plays a significant role in the Indian economy, contributing to economic growth and development.

An economic activity refers to any activity that involves the production, distribution, and consumption of goods and services. In this context, medical facilities rendered by a charitable dispensary can be considered an economic activity as it involves the provision of healthcare services, which is a form of service that contributes to the well-being of individuals and society. This activity involves the production and distribution of medical services, and it may also involve the consumption of resources such as medicines and equipment.

The correct answer is "The service sector contributes more than half of the GDP of India." This statement is correct because the service sector has become a major driver of economic growth in India, accounting for more than 50% of the country's GDP. The service sector includes industries such as banking, finance, telecommunications, tourism, and information technology, which have experienced significant growth in recent years. This has led to a shift in the Indian economy, with services becoming the largest contributor to GDP, surpassing both agriculture and industry sectors.

Net national product at factor cost is equal to national income because both concepts measure the total income generated by the factors of production within a country's borders. Net national product at factor cost calculates the value of all final goods and services produced by the residents of a country, minus any depreciation or wear and tear on capital goods. National income, on the other hand, measures the total income earned by individuals, businesses, and the government within a country during a specific period. Therefore, both concepts represent the same value and are equal to each other.

The mixed income of the self-employed refers to the combined factor payments that cannot be distinguished. This means that it includes various sources of income, such as gross profits received by proprietors, rent, interest, profit of an enterprise, and wages due to family workers. The term "mixed income" implies that these different types of payments are combined and cannot be easily separated or categorized into distinct sources.

The correct answer is 96 percent. This means that a large majority (almost all) of the sick units in India are small units. This suggests that there is a higher prevalence of small businesses facing financial difficulties and operational challenges in the country.

Transfer payments refer to payments that are made without any exchange of goods and services. This means that transfer payments are not made in return for any specific product or service. Instead, they are typically made for social welfare programs, such as unemployment benefits, social security, or welfare assistance. These payments are meant to provide financial support to individuals or groups in need, without requiring them to provide any goods or services in return.

The demand for intermediate consumption arises in all producing sectors of an economy because intermediate consumption refers to the purchase of goods and services by businesses for the purpose of producing other goods and services. This includes sectors such as manufacturing, agriculture, construction, and services. All these sectors require inputs from other sectors to carry out their production processes, hence creating demand for intermediate consumption across the entire economy.

During the planning period, the structure of Indian industry has shifted in favor of basic and capital goods and the intermediate sector. This means that there has been a significant increase in the production and focus on essential goods and services, as well as the development of industries that support and provide inputs for other sectors. This shift indicates a strategic move towards self-sufficiency and the development of a strong industrial base in India.

The abolition of intermediaries and tenancy reforms are both measures that are part of land reforms in India. Land reforms aim to address issues related to land ownership, distribution, and tenancy. The abolition of intermediaries refers to the elimination of intermediaries or middlemen who traditionally controlled and exploited agricultural land, while tenancy reforms focus on providing security of tenure and fair treatment to tenants. These reforms aim to redistribute land and promote equitable access and ownership, particularly for marginalized and landless farmers.

The statement "About 80 per cent of agricultural area has irrigation facilities" is incorrect because the correct statement is that about 40 per cent of agricultural area has irrigation facilities in India.

During the period of 1965-1980, the industrial sector experienced retrogression and deceleration. This means that there was a decline or regression in the growth and development of the industrial sector during this time. The sector was facing challenges and obstacles that hindered its progress and caused a slowdown in its activities. This could be due to various factors such as economic downturns, political instability, changes in government policies, or technological disruptions. Overall, this period was characterized by a decline in industrial growth and a slower pace of development.

A large number of industries facing underutilization of production capacity means that many industries are not using their full potential to produce goods and services. This could be due to various reasons such as lack of demand, inefficient production processes, or economic downturns. This statement suggests that there is room for improvement in the utilization of production capacity in these industries.

VAT (Value Added Tax) is an indirect tax because it is imposed on the sale of goods and services rather than directly on individuals or businesses. It is collected by businesses and then paid to the government, making it an indirect form of taxation. Gift tax, corporate income tax, and wealth tax are all direct taxes as they are levied directly on individuals or businesses.

The correct answer is "Custom duties have been drastically cut down since 1991." This statement implies that there has been a significant reduction in custom duties since 1991. Custom duties are taxes imposed on goods imported or exported between countries. The answer suggests that there has been a policy change or reform in the customs duties system, leading to a decrease in the rates or overall burden of these duties.

The net values added method of measuring national income is also known as the net output method, production method, and industry of origin method. This method calculates national income by summing up the value added at each stage of production in all industries. It takes into account the value added by each industry and eliminates double counting. Therefore, all of the above options correctly describe the net values added method of measuring national income.

The correct answer is "Wheat revolution." The green revolution refers to a period of technological advancements in agriculture that occurred in the mid-20th century, leading to increased agricultural production. It primarily focused on the development and adoption of high-yielding varieties of wheat, which significantly increased wheat production and helped alleviate food shortages in many parts of the world. The term "Wheat revolution" accurately captures the central role of wheat in this agricultural transformation.

The correct answer is 25 percent because the statement indicates that a certain percentage of the working population is engaged in the service sector. Out of the given options, 25 percent is the lowest percentage, indicating that a relatively small portion of the working population is involved in the service sector.

The statement "India has been a big importer of food grains especially since 1990s" is incorrect. India has been a big exporter of food grains, not an importer. This is supported by the first statement which mentions special schemes to promote export of agro-products.