INDIAN ECONOMY.pdf

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INDIAN ECONOMY

1. The permanent Settlement System (1793) which gave rise to a new class, Zamindars, was

introduced by Lord Cornwallis.

2. The land system under which the peasant himself owns the land and is responsible for payment

of land revenue to the government is known as Mahalwari System.3. The first paper mill in India was set up at Serampur, West Bengal in 1812.

4. The 1st All India Population Census was conducted in 1872.

5. Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia established in 1875.

6. The 1st bank of limited liability managed by Indians was OUDH Commercial Bank founded in

1881.

7. The 1st modern industry to develop in India was the cotton textile industry.

8. The major trade partner of India in the pre-Independence period was the United Kingdom.

9. The establishment of the Tata Iron and Steel Company (TISCO) at Jamshedpur in 1907 was the

1st effort at large scale production of iron and steel in India.

10. The Indian Iron and Steel Company (IISCO) was set up at Burnpur in 1919.

11. 1921 is regarded as the Year of Great Divide in the history of Indias Population.

12. The 1st unit of Iron and Steel (now known as Visvesvaraya Iron and Steel Limited) in public

sector started functioning at Bhadravathi in 1923.13. The payment and Wages Act was passed in 1936.

14. Reserve Bank of India (RBI) was established under the Reserve Bank of India Act, 1934 on

April1, 1935 and nationalized on January 1, 1949.

15. The 1st ever institution set up to provide finance in India was Industrial Finance Corporation of

India (IFCI) established in July, 1948.

16. The 1st Industrial Policy Resolution was presented in 1948.

17. The Minimum Wages Act was passed in 1948.

18. India resorted to devaluation of its currency for the 1st time in September, 1949.

19. The Planning Commission of India was set up on 15th March,1950.

20. The 1st Five Year Plan was launched on April,1951.

21. The Industrial Credit and Investment Corporation of India (ICICI) was set up in 1955.

22. Growth strategy adopted in 2nd

five year Plan is associated with the name of Prof.P.C.Mahalanobis.

23. Industrial Development Bank of India (IDBI) was set up in 1964 as the apex development bank

of country.

24. Unit Trust of India (UTI) was set up in 1964 with an initial capital of Rs.5 Crore.

25. The Agricultural Price Commission was established in 1965 and was renamed in 1985 as the

Agricultural Cost and Price Commission.

26. Asias 1st EPZ set up in Kandla in 1965.

27. There was no Five Year Plan in operation during 1966-69 (plan holiday) because of Indo-Pak

War in 1965.

28. There are 19 nationalised banks in India, 14 of them were nationalized on July19, 1969 and 6

other on April 15, 1980.

29. The Differential Rate of Interest (DRI) scheme was introduced in 1972.

30. The General Insurance Corporation of India (GIC) was formed by the Central Government in

November in 1972.

31. The 1st 20-Point Programme was launched on July 1, 1975 under the connotation of Garibi

Hatao which was conceived by the late Prime Minister Smt. Indira Gandhi.

32. The National Thermal Power Corporation (NTPC) was set up in 1975.

33. The National Hydroelectric power corporation was set up in 1975.

34. The Industrial Development Bank of India (IDBI) delinked itself from RBI and became an

autonomous corporation in 1976.

35. The 1st Economic Census to bridge the data gaps in the unorganized sectors of non-agricultural

economy was conducted by the Central Statistical Organisation (CSO) in 1977.

36. Integrated Rural Development Plan (IRDP) was launched in 1978-79.

37. The National Scheme of Training of Rural Youth for self-Employment (TRYSEM) was initiated

on 15th August, 1979.


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38. Estimates of the national income in India are prepared by the Central Statistical Organisation

(CSO).

39. All receipts and disbursements of the Union are kept under two separate headings, namely,

Consolidated Fund of India and Public Account of India.

40. Estimates of expenditure from the consolidated Fund of India are placed before the Lok Sabha

in the form ofDemands for Grants.

41. Tax proposals of the Budget are embodied in a Bill which is passed as the Finance Act of theyear.

42. The paper for making currency notes and other security papers are manufactured at Security

Mills, Hoshangabad.

43. Among the non food grain crops, the largest area in India is devoted to the cultivation of oil

seeds.

44. The International Bank for Reconstruction and Development is popularly known as the World

Bank.

45. The minimum number of persons required to form a Primary Cooperative Society is 10.

46. The major portion of the total cropped area in India is taken by food crops.

47. The market that performs the function of carrying goods to consumers, final buyers, or to

places of processing is known as the terminal market.

48. The task of analyzing the Union Budget and suggesting improvements in economic policies ofthe Government has been mainly assigned to the Estimates Committee.

49. Andhra Pradesh has monopoly of quality Chrysolite asbestos in the country.

50. A six point programme was launched to revamp the Public Distribution System, giving

Panchayati Raj institutions the authority to control the fair price shops.

51. The chairman of the 1st Finance Commission was K.C.Neogy.

52. John Maynard Keynes is known as the Father of Modern Economics.

53. Essay on Principle of population as it affects the future improvement of society is written by

T.R.Malthus.

54. Professor Gunnar Myrdal in his book Asian Drama has discussed poverty in Asian countries.

55. The celebrated work on the Indian economic history known as The industrial Evolution of

India in Recent Times was written by D.R.Gadgil.

56. The book General Theory of Employment, Interest and money, is written by John Maynard

Keynes.

57. The author ofProblems of capital Formation in Underdeveloped Countries is Ragnar Nurkse.

58. The Communist Manifesto and Das Capital are the works ofKarl Marx.

59. The stages of Economic Growth by W.W.Rostow was published in 1960.

60. NABARD came into existence on July12, 1982.

61. EXIM Bank was established on 1st January, 1982 for financing, facilitating and promoting

foreign trade in India.

62. SEBI initially constituted as a non-statutory body on April12, 1988, was given statutory status

and powers through an ordinance promulgated on 30

th

January, 1992.

63. The small Industries Development Bank of India (SIDBI) was established in 1989 and started its

operations from April2, 1990.

64. Under the New Industrial Policy announced on July24, 1991, the number of industries for

which industrial licensing is compulsory is 15.65. The National Stock Exchange (NSE) of India was set up in November 1992.

66. India achieved full convertibility on current account on August19, 1994.

67. Panchayat Sanchar Sewa Yojana (PSSY) scheme was launched in 1995.

68. Accelerated Irrigation Benefit Programme (AIBP) was launched in 1996-97.

69. The Swarna Jayanthi Shahari Rozgar Yojana (SJSRY) was launched on December1, 1997.

70. The Targeted Public Distribution System was launched on June 1, 1997.

71. The Gift Tax in India was first introduced in 1958 and abolished on October1, 1998.

72. The Disinvestment Commission which was set up in 1996 winded up its function on November

30, 1999.

73. Antyodaya programme was started first of all in Rajasthan.

74. The National Population Policy2000 outlines the long-term objective of achieving a stable

population by 2045.

75. MRTP Act has been replaced by Competition Act, 2003.


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76. India is the 4th largest economy in the world in terms ofGDP at Purchasing Power Parity (PPP)

and 10th largest economy in terms of GDP at prevailing exchange rates as per the World

Development Report, 2006.

77. Bharat Nirman (2005-09) is a time bound plan for action in rural infrastructure in areas of

irrigation, roads, housing, water supply, electrification and telecommunication connectivity.

78. Good and Service Tax (GST) to be launched in India will replace VAT, CENVAT, MODVAT.

79. Mid-day Meal Scheme was launched in 1995.80. Mauritius remained predominant source country of FDI to India followed by USA, UK &

Netherlands during 2000-2007.

81. The Scheme of Kasturba Gandhi Balika Vidyalaya was merged with Sarva Shiksha Abhiyan

w.e.f April 1, 2007.

82. National Investment Fund (NIF) became operational from November 3, 2005. The proceeds

from disinvestment of PSUs equity go to this fund.

83. Fringe Benefit Tax is an additional tax introduced in Union Budget 2005-06 in order to bring

under the tax net fringe benefits received by the employee from his employer.

84. Rashtriya Swasthya Bima Yojana (RSBY) launched in 2007 will provide health cover of

Rs.30,000/- for every worker in the unorganized sector falling under BPL category and his

family.

85. Indian Farmers Fertilizer Cooperative Organization (IFFCO) will establish countrys 1st

Kisan

SEZ at Nellore district in Andhra Pradesh.

86. Pension Fund Regulatory Development Authority (PFRDA) operationalised New Pension

Scheme by appointing National Securities Depository Ltd. (NSDL) as Central Record Keeping

Agency (CRA).

87. 11TH Plan gives priority to agriculture, education, health and infra sector sectors.

88. Indira Awaas Yojana aims at providing dwelling units, free of cost to poor families of SC,ST,

freed bonded labour and persons below poverty line.

89. Title of the approach paper in 11th Five Plan is Towards Faster and More Inclusive Growth.

90. The 1ST largest agro-based industry is textile industry, the second being sugar industry.

91. The three important gold fields in the country are Kolar Gold Field, Hutti Gold Field (both in

Karnataka) and Ramagiri Gold Field (Andhra Pradesh).

92. India has 7 Export Processing Zones (EPZs) at Kandla (Gujarat), Santacruz (Maharashtra),

Cochin (Kerala), Chennai (Tamil Nadu), Noida (UP), Falta (West Bengal) and

Vishakhapatnam(A.P).

93. The most important competitor of Indian Jute in the international market is Bangladesh.

94. West Bengal is by far the most important rice-producing state in India.

95. SJSRY is a merger of three schemes : the Nehru Rozgar Yojana, Urban Basic Services for poor

and PMIUPEP.

96. Punjab National Bank is the 1st Indian bank to set up a branch in Afghanistan.

97. The Industrial Credit and Investment Corporation of India (ICICI) was the 1st Indian company

to be listed in New York Stock Exchange (NYSE).

98. India is the worlds leading producer of mica sheet and accounts for about 60% of global mica

trade.

99. Gross domestic product (GDP) gives a more accurate picture of economic growth as compared

to GNP( Gross National Product)

100. 100. The real GDP per capita is the economic indicator and the life expectancy

and educational attainment are social indicators in HDI.

101.Approximately 32% ofthe irrigated areas in India are watered by canals.

102. The gilt-edged market is the market in government securities.

103. Sikkim has the largest area and highest production of Cardamom in India.

104. The chairman of the 12th Finance Commission is C.Rangarajan.

105. Indicative Planning was followed in USSR and was used in France.

106. Recommendations of the 13th Finance Commission covers the period 2010-2015.

107. Integrated Rural Development was stressed during the 6th Plan.

108. Savings of private corporate sector constitute undistributed profits.

109. Savings of government sector constitute excess of revenue receipts over revenue

a. expenditure.

110. Since 1982, NABARD has been playing the greatest role in supplying and overseeing rural

a. credit in India.


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111. Disguised unemployment is present only in agriculture.

112. Disguised unemployment is a major cause of the low standard of living in the rural areas.

113. Disguised unemployment can be useful in Indias development process as a Source of

a. potential saving.

114. One of the significant changes brought about in the field of agriculture by the Britishers

a. was commercialization of crops.

115. The important cash crops encouraged by the Britishers were Opium, Indigo and cotton.116. As a consequence of British rule, Indian economy became a poor and dependent

a. economy. This dependence is reflected in change in occupational structure and foreign

b. trade.

117. India ceased to be an important manufacturing country during the British regime due to

a. British commercial policy.

118. Economic development has been retarded in India mainly due to poor infrastructural

facilities.

119. India is termed as a developing economy because of her initiative for determined planned

120. economic development.

121. Socialistic pattern of society comes through mixed economy.

122. Largest proportion of Indias population during 1990-91 was engaged in Agriculture

and

123. forestry.

124. L.C.A.Knowles attributed Indias economic stagnation to her religious and social

structures.

125. By deindustrialisation we mean a deliberate effort to compel the existing industries to

shut

126. down.

127. The two major industries that were directly hit by partition of the country were jute

and

128. cotton textile.

129. New bank of India and Punjab National Bank were merged on 4th September,1993.

130. The Statutory Liquidity Ratio (SLR) for commercial banks in India can be raised to a

131. maximum level of 40%.

132. The largest proportion of holdings in India is in marginal holdings (0-1 hectare).

133. One if the major changes observed during the four decades of planning of India has

been

134. that India has emerged more or less self-reliant in terms of food grains.

135. It will be true to classify India as a labour-surplus economy.

136. Land is a renewable natural resource.

137. The most important source of energy in India is Firewood and charcoal.

138. The most important source of commercial energy in India is Petroleum.

139. The most important use of electric power in India is Industry.

140. India imports copper.

141. The number of industries reserved exclusively for the public sector is 3.

142. Dandekar and Rath had estimated the percentage of rural population living below the

143. poverty line in 1960-61 as 40%.144. Import liberalization for the domestic market as a strategy would tend to raise the

ratio of

145. imports to GDP in the immediate future.

146. For international comparisons to measure the level of economic well -being in different

147. countries, we make use of data relating to real per capita income.

148. Technically, disguised unemployment is defined as a situation in which the marginal

149. productivity of labour is Zero.

150. FEMA replaced FERA in year 2000.

151. Removal of unemployment has been considered a centre-piece of strategy in the 8th Plan.

152. Food for Work programme was being managed by the Reserve Bank of India.

153. The pattern of Indias exports indicates that non-traditional items like engineering

goods,

154. handicrafts, iron-ore and chemicals are growing in importance .


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155. The theory of demographic transition postulates a 3 stage sequence of birth and death

rate as typically associated with economic development. Population explosion occurs

in the second stage when high birth rate meets with low death rate.

156. The rate of growth of population has been highest during the decade 1971-1981.

157. Growth rate of population can be measured by subtraction of death rate from birth

rate.

158. Birth rate in the country is measured more generally as the number of children bornper

159. 1000 population in the country.

160. Infant mortality rate refers to the proportion of children dying within a year of their

birth.

161. The percentage distribution of the age composition of Indias population shows

the highest population to be in the age group 15-60 years.

162. Large percentage of the population in the age group 0-4 years indicates the presence

of

163. unproductive consumers.

164. Density of population indicates the Man-Land ratio.

165. Changes in the urban-rural ratio measures the relative growth of urban and rural

166. population. This ratio in India over the years has changed in favour of urban areas.167. Life expectancy refers to the number of years a new born child can expect to live . In

India,

168. life expectancy has been very low as compared to that in other countries and over the

169. years it has shown some increase.

170. Rapidly growing population retards economic growth in a number of ways butpositively,

171. not in which it limits the supply of labour.

172. Occupational structure refers to the distribution of working force among the different

173. Occupations.

174. According to 2001 Census, population living in rural and urban areas is 72% and 28%

175. Respectively.

176. The life expectancy in the country according to the 2001 census is 62 years.

177. Rural Landless Employment Guarantee Programme (RLEGP) was introduced in August

178. 1983.

179. RLEGP was 100% centrally funded programme.

180. RLEGP was merged with NREP to form JRY.

181. The causes of decline in population are

a. Occurrence of families

b. Increase in epidemics

c. Malnutrition.

182. A full-fledged Department of Family Planning was created in the year 1966.

183. The impact of decrease of population on economy is increase in per capita income.

184. 164. Birth rate is No. of births in a year x 100.

1. Population

185. 165. The Government of India adopted a national programme of FamilyPlanning in the year 1952.

186. 166. The main factor for the accelerated growth of population in India is a high

birth rate and a falling death rate .

187. 167. The real determinant of the size of market in a country is the income of its

population.

188. 168. The occupational structure of Indias labour force since 1951 has remained

more or less static.

189. 169. In Indian towns and cities the demand for housing has been increasing

steadily owing to increase in both population and real income of the people.

190. 170. The Planning Commission has defined the poverty line for urban areas on

the basis of average nutritional requirements of 2100 calories per person per day.

191. 171. The main reason for the high growth of money supply in India since 1970 has been

the rise in RBI credit to the government.


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192. 172. According to the 5th Plan, the main causes of poverty were under-

development and unequal income distribution.

193. 173. Minimum Needs Programme was initiated to fight poverty in the 5th Five

year plan.

194. 174. IRDP was concerned with

a. Growth and production.

b. Full employment within a certain period.c. Providing benefits to the identified target group in the lower strata of rural

community.

195. 175. FDI limit in Indian Private sector bank is ( as on 1st January 2007) was 74%.

196. 176. The Reserve Bank of India acts as a bankers bank. This would imply that

197. Other banks retain their deposits with the RBI.

198. RBI lends funds to the commercial banks in times of need.

199. RBI advises the commercial banks on monetary matters.

200. 177. Fiscal deficit forms the largest share of deficit in Government of India

Budget.

201. 178. Integrated Rural Development Programme also keeps an eye on how the

various programmes relating to uplifting the poor of rural India are working.

202. 179. The government of India provides 75 % of the actual recurringestablishment expenditure but not exceeding Rs.307.5 Lakh.

203. 180. Education does not come under the economic infrastructure of our

economy.

204. 181. The basic objectives of Drought Prone Area Programme are

205. To minimize over a period of time, the adverse effects of drought.

206. To optimize the utilisation of all resources in the area.

207. To improve the living conditions of the poor who suffer the most in times of scarcity

and drought.

208. 182. The basic objectives of the IRDP are

209. Covering 600 families in each block every year.

210. Provision of assets and inputs to the rural poor for enabling them to rise above the

poverty line.

211. Reduction in unemployment in rural areas.

212. 183. The governments measures to remove poverty have yielded little results ,

because of

213. Under utilised resources.

214. Low agricultural productivity.

215. Inequalities of income.

216. 184. The governments measures to remove poverty have yielded little results,

because of

217. Corruption.

218. Misuse of funds

219. Poor administration.

220. 185. The thesis of Colin Clark and A.G.B.Fisher regarding the relation between

economic development and occupational structure and as corroborated by the empirical

evidence has been that higher per capita income is inversely correlated with the proportion of

active population engaged in agriculture.

221. 186. The empirical evidence testifies that as an economy develops , the share of

the secondary and tertiary sectors in the occupational structure rises.

222. 187. One of the reasons why Indias occupational structure has not changed over

the years has been investment pattern of the various plans has been directed towards capital

intensive industries.

223. 188. In the initial stages of growth the proportion of workforce in agriculture

declines, the absolute number increases.

224. 189. The major problem that obstructs any change in Indias occupational

structure is

225. A fast rising working force.

226. The presence of a large backlog of unemployment.

227. Inadequacy of where withal to provide work in non-agricultural sectors.


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228. 190. Higher per capita income in inversely correlated with the proportion of

active population engaged in agriculture.

229. 191. National income calculated at current prices has shown a tendency to rise at

a faster rate than national income calculated at constant prices . This is because general price

level in the economy has been rising fast.

230. 192. Share of the government sector in Net Domestic Product at current prices

has steadily risen since 1950-51. This is indicative of the fact that the role of the public sector inthe economy has been increasing.

231. 193. Net National Product at market prices has always been more than Net

National Product at factor cost. This is indicative of the fact that the net balance of indirect

taxes minus subsidies in the economy has always been positive.

232. 194. Net Domestic Product of the economy will tend to be more than the Net

National Product if the net earnings from abroad are negative.

233. 195. In India, the value of output originating in the agricultural sector is

measured with the help of Net Output Method.

234. 196. The value of Output originating in banking and insurance sectors is

measured with the help of the Net Income Method.

235. 197. Expenditure method is used in calculating the income originating in

Construction sector.236. 198. Largest contribution is made by the agricultural sector to the national

product. In Commerce, transport and communications sector of the economy has productivity

been the highest.

237. 199. Net Product of the Public sector originates from

238. Government administration.

239. Departmental enterprises

240. Non-departmental enterprises.

241. 200. When we use the term quality of income, we generally allow for

differences in income arising out of the differences in economic functions.

242. 201. Since independence the government has taken certain steps to decrease

inequalities. But Industrial Licensing system goes contrary to the declared aim.

243. 202. In order to reduce inequalities the government should adopt progressive

system of taxation.

244. 203. Real economic welfare is measured in terms of

245. Increased real per capita GNP

246. Better distribution of income.

247. 204. Capital formation means additions to the stock of producers goods.

248. 205. Capital formation in any economy can be estimated by measuring the net

change in the value of the assets in a given period in

249. The government sector.

250. The household sector.

251. The corporate sector.

252. 206. Net capital formation for an economy can be known by adding net inflow

of foreign capital to the sum of net change in the value of fixed capital assets produced in an

economy in a given period.253. 207. The difference between gross domestic capital formation and net domestic

capital formation is known as depreciation.

254. 208. Capital-output ratio refers to the number of units of capital required to

produce a unit of output.

255. 209. The largest share of savings accrues in the household sector.

256. 210. The basic cause of inequality of income is

257. System of private property.

258. The laws of inheritance.

259. Differences in opportunities.

260. 211. The New Economic Policy in India includes

261. Fiscal reforms.

262. Structural reforms

263. Financial sector reforms.

264. 212. Venkatappaiah headed All-India Rural Credit Review Committee.


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265. 213. The main purpose of regulated markets in agricultural marketing in India

are to

266. Ensure market access to farmers

267. Eliminate unhealthy market practices.

268. Reduce market charges.

269. Ensure fair price.

270. 214. Cropping pattern refers to relative distribution of cropped area underdifferent crops at a given point of time.

271. 215. Estimates of national income in India are prepared by Central Statistical

Organisation.

272. 216. One of the problems of estimating national income in India is non-

monetary transactions.

273. 217. A better index of economic welfare of a country is real per capita product.

274. 218. Economic development is characterized by certain structural changes.

Development in the Indian economy has been characterized by

275. Fall in the share of agriculture in national income.

276. Fall in the share of primary exports in total exports.

277. A relatively small fall in the proportion of labour force in primary sector.

278. 219. The economist who drew attention to relationship between economicgrowth and structural changes was Simon Kuznets.

279. 220. As economic development proceeds

280. The share of primary sector in national product fails.

281. The share of secondary sector rises.

282. The share of tertiary sector rises.

283. 221. In India during the process of economic development in the last 5 decades

the share of agricultural sector in national product has registered a decline.

284. 222. The increase in national income as a measure for economic growth is in

real terms.

285. 223. By changes in the national product we measure the economic growth of

India.

286. 224. As on 1st January 2007. In India rupee is fully convertible at Current

Account only.

287. 225. The growth strategy adopted in the second Plan emphasized the growth of

heavy industries.

288. 226. In most of the developed countries, the rate of growth has been highest in

the tertiary sector.

289. 227. The Growth strategy adopted in our plans is associated with the name of

Prof. P.C.Mahalanobis.

290. 228. Private sector savings comprise of savings accruing in the following sectors.

291. The Private corporate sector.

292. The Co-operative sector.

293. The house hold sector.

294. 229. A mixed capitalistic economy is characterized by the existence of

simultaneously the public, cooperative and private sectors.

295. 230. Indian planning is democratic in nature.

296. 231. The period of economic planning in India began on April 1, 1951.

297. 232. The 4th Five Year plan of India started on April 1, 1969.

298. 233. The 5th Five Year plan of India terminated on March 31, 1979.

299. 234. Due to India-Pakistan conflict in 1965, finalization of 4th Plan was delayed.

The planning process during the intervening period was carried out through 3 Annual Plans.

300. 235. Self-reliance means

301. A long-term equilibrium in the balance of payments.

302. Self-Sufficiency in the capital goods sector.

303. Self-Sufficiency in highly technical manpower.

304. 236. The strategy of economic development adopted in our plans during the

period 1956-78 emphasised the growth ofheavy capital goods industries.

305. 237. In the 7th plan (1985-90) there was marked shift in favour of consumer

goods industries.


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306. 238. In the strategy of development adopted, the responsibility for the

development of heavy capital goods industries was placed largely on Public sector.

307. 239. The responsibility of maintaining the supply of essential consumer goods

was placed on small scale industries.

308. 240. The heavy industry-led growth strategy can be aptly summed up in the

phrase More consumption for future generations.

309. 241. By financing of plan we mean raising financial resources to execute theprogramme incorporated in a plan.

310. 242. Irrigation is the most crucial input in Indias agriculture, responsible for the

Green Revolution.

311. 243. External assistance as a source of financing of outlay in the public sector was highest

in the 3

rd

plan. It amounted to 28.3% of total financial outlay.

312. 244. Population growth rate in India was negative in 1911-21.

313. 245. Foreign capital may take one of the following forms.

314. Foreign collaboration.

315. Direct entrepreneurial investment.

316. Loans to private or public enterprises.

317. 246. IDA is called Soft Loan Window.

318. 247. IBRD assistance to India has taken the form of loans to public and privateenterprises.

319. 248. Aid to India from the East European countries has largely taken the form of

aid through trade.

320. 249. Indian agriculture is described as semi-commercialised farming. It implies

that Indian agriculture is neither fully commercialized nor wholly of the subsistence type.

321. 250. Productivity of land in Indian agriculture is low, among others, due to

defective tenurial system and small-sized holdings; these factors are known as institutional

factors.

322. 251. Agriculture contributes to industrial development by raising cash incomes to

stimulate demand for industrial products.

323. 252. The share of financial resources allocated for agriculture and allied sectors

during the 1st plan as a percentage of total financial outlay was approximately 15%.

324. 253. Intensive agriculture forms an integral part of agricultural development

strategy in India. By intensive agriculture we mean making use of better agricultural techniques

to raise the productivity of land.

325. 254. When we talk of growth rate in agriculture we mean the annual growth in

agricultural production.

326. 255. The number of Export Processing Zones (EPZs which have been converted

into Special Economic Zones (SEZS) BY SEZ act, 2005 is 8.

327. 256. Slow progress of agriculture in India can be attributed to

328. Inadequate irrigation.

329. Slow spread of new technology

330. Defective land system

331. 257. The major achievements in the agricultural sector during the five year plans

include332. Initiation of the green revolution.

333. Increase in irrigation facilities.

334. Self sufficiency in food grains.

335. 258. The major sources of irrigation in India are Wells.

336. 259. Domestic investment in India has always been financed by domestic saving

largely.

337. 260. In India, infrastructure is partially state monopoly.

338. 261. Cotton textile industry cannot be considered as a basic industry.

339. 262. Sugar industry is practicing dual pricing policy.

340. 263. The largest share of savings in India accrues from the household sector.

341. 264. Basic concepts relating to the measurement of unemployment are

342. Usual status

343. Person weeks.

344. Person days.


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345. 265. A Subsistence agriculture is one in which the farmer

346. Produces primarily food crops.

347. Does not take any loans from institutional agencies.

348. Sells all his crops to the village money lender.

349. 266. Higher investment as visualized in our plans means establishment of new

industries.

350. 267. Goods ordinarily demanded at low levels of income are termed as wagegoods.

351. 268. The share of direct taxes as a percentage of GDP in the Post-Independence

period has remained stagnant around 2.5%.

352. 269. The 1st Five year plan of India aimed to

353. Rehabilitate the devastated economy from effects of World War-II and partition.

354. Solve the food crisis.

355. Check the inflationary tendencies.

356. 270. The objective of the 1st Five year plan was to correct the damage caused to

the economy by the Second World War and partition of the country.

357. 271. The functions of the Planning Commission in India are

358. Perspective planning.

359. Appraising the plans progress from time to time.360. Assessing the required machinery for implementing the plan.

361. 272. National Development council finally approves the draft of the Five year

plan.

362. 273. The objectives of the 2nd Five year Plan

363. Increased national Income.

364. Rapid industrialization with special attention to heavy and basic industries.

365. Expansion of employment opportunities.

366. 274. In the 2nd Five year Plan the highest priority was given to the development

of industry.

367. 275. The 3rd five year plan covered the period 1961-62 to 1965-66.

368. 276. The objectives of the 3rd Five Year plan are

369. Import of machinery for expanding indigenous industries.

370. To expand agricultural inputs for exports and industry.

371. To secure self-sufficiency in good grains.

372. 277. Indias 4th Five year Plan covered the period 1969-70 to 1973-74.

373. 278. There was no 5 year plan in operation during 1966-69. The immediate

reason for suspension of planning was

374. Droughts and floods

375. Conflicts with china and Pakistan.

376. 279. Under the 5 year plans, since 1950-51, in India both unemployment and

employment have increased.

377. 280. The objective of removal of poverty was specifically stressed in our plans

for the 1

st

time in the 5

th

plan.

378. 281. Abolition of intermediaries can be said to have been fully implemented by

now in India.379. 282. There are 196 Regional Rural Banks (RRBs) in India as on March 31, 2005.

380. 283. Employment Guarantee Scheme was 1st introduced in Maharashtra.

381. 284. Perspective Planning means Planning for future so as to meet the long term

requirements of development in the country.

382. 285. Industrial development in India has been retarded due to

383. Labour unrest.

384. Power shortage.

385. Capital deficiency.

386. 286. Industrialisation

387. Helps to build up the necessary infrastructures.

388. Can also supplement agricultural growth.

389. Can raise the employment opportunities.

390. 287. On the eve of the 1st Five year plan, the industrial development in India

was confined largely to consumer goods sector.


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391. 288. The oldest large scale industry of India is Cotton textiles.

392. 289. Product method is used in the following sectors while computing national

income In India.

393. Agriculture and allied activities.

394. Mining and quarrying.

395. Registered manufacturing.

396. Unregistered manufacturing.397. 290. The number of industries included in Schedule A of the 1956 Industrial

Policy Resolution were 17.

398. 291. A Joint Sector is defined as a sector in which both public sector and private

sector.

399. 292. A Public Sector in India is so designed as to supplement private sector.

400. 293. The private sector in Indias mixed economy has grown alongside public

sector.

401. 294. A small scale industry is one in which capital investment does not exceed

Rs.1 crore.

402. 295. A tiny unit is defined as a unit with capital investment of Rs. 5lakh.

403. 296. The main components of New Economic Policy (NEP) include

404. Relaxation of controls on trade and industry.405. Re-orientation of fiscal policy.

406. Bigger role for the private sector.

407. 297. While lending, the IFCI requires the security of fixed assets such as

408. Land.

409. Buildings

410. Plant and machinery.

411. 298. The apex institution in the field of industrial finance is industrial development Bank

of India.

412. 299. The Industrial Development Bank of India is owned by the Reserve Bank of

India.

413. 300. The major share of financial assistance, extended by the development

banks and investment banks goes to Private sector.

414. 301. In 1976 IDBI was delinked from RBI and made an autonomous

corporation.

415. 302. A mission from the World Bank, for the purpose of developing small and

medium industries in the private sector, sponsored the setting up ICICI.

416. 303. The ICICI was registered in 1955 with an authorized capital of rs.25 crores

417. 304. The main functions of the ICICI include

418. Assisting in the creation, expansion and modernization of industrial units in the private

sector.

419. Encouraging the inflow and participation of foreign capital in these units.

420. The expansion of the industrial market in India.

421. 305. The need for State Financial Corporations was to cater to the financial

needs of small and medium sized industrial concerns.

422. 306. The number of SFCs in the country (at the end of 2006) was 18.423. 307. The primary objective of Industrial reconstruction Bank of India is to

reactive the productive capacity of sick and closed industries.

424. 308. Unit Trust of India was set up in the year 1964.

425. 309. Working Capital in a business means its circulating assets-stocks, cash and

debt owing to it.

426. 310. Steps taken by the government mainly to solve the difficulties of small scale

industries include

427. Development of industrial estates and facilities for marketing.

428. Special items of production reserved for small industry.

429. Establishment of the Exim Bank.

430. 311. The kind of chemical fertilizer which is consumed most in India is

nitrogenous.

431. 312. The main problems of jute industry in India are

432. Uncertainty in availability of raw jute.


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433. The emergence of substitutes in international market.

434. Irregular power supply.

435. 313. The two leading centres of cotton textiles are Mumbai and Ahmedabad.

436. 314. The main problem which the cotton textiles are

437. Non-availability of raw material.

438. Outdated plant and machinery

439. Labour problem.440. 315. The Monopolies and Restrictive trade Practices (MRTP) Act was adopted by

the government in the year 1969.

441. 316. The share of agriculture in Indias national income in 1950-51 was 51.3 %.

442. 317. The main characteristics of Indian agriculture at the time of independence

were

443. Low productivity per hectare

444. Use of primitive tools and implements

445. Fragmented and sub divided holdings.

446. 318. A system in which the farmer produces primarily for market sale is known

as commercial farming.

447. 319. The maximum number of holdings in India is Uneconomic holdings.

448. 320. The steps that has to be taken to make the agrarian structure growthoriented are

449. Abolition of intermediaries.

450. Tenancy reforms

451. Consolidation of holdings and ceiling on holdings.

452. 321. The long term Fiscal Policy was initiated by the Government of India in

1985.

453. 322. Since independence, India has made the greatest progress in the production

of Wheat.

454. 323. Capital formation in an economy depends on total income.

455. 324. The largest part of the land sown in India is devoted to Rice.

456. 325. The area under food grain crops, as a percentage of total cropped area

amounts to about 75%.

457. 326. Among the non-feed grain crops, the largest area is devoted to the

cultivation ofOilseeds.

458. 327. To raise productivity in agriculture, it is necessary that better inputs are

made available to agriculturists.

459. 328. By land reforms we mean improvement in agrarian relations and also

enlargement of the size of small units of cultivation.

460. 329. The two basic objectives of land reforms in India are to promote growth

and social justice in the agrarian economy.

461. 330. The system under which the peasant himself owns the land and is

responsible for payment of land revenue to the government is known as Ryotwari System.

462. 331. Absentee landlord means that the land lets out his holdings and claims a

share of the produce in the form of rent.

463. 332. About 55% of the total holdings in India are in the size class of0-1 hectare.464. 333. Land reform is needed because

465. Under present arrangement, farmers have little incentive to improve productivity.

466. Output levels will unquestionably rise.

467. There is grave inequity in the distribution of land.

468. 334. The primary barrier to land reform is opposition by the land owners.

469. 335. When a tenant enjoys permanent right on land and cannot be evicted from

land as long as he pays rent, this type of tenant is known as occupancy tenant.

470. 336. By ceiling on holdings, as presently defined in India, we mean that a family

cannot own land beyond the prescribed maximum.

471. 337. A holding which gives full employment to an agriculturists family and

allows a reasonable standard of living is known as economic holding.

472. 338. The factors determining the size of economic holding are

473. Farming techniques and practices

474. Social conditions relating to the status of land-ownership.


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475. Geographical and climatic conditions.

476. 339. Ceiling on holding is not a solution for the problem of sub division and

fragmentation of holding.

477. 340. By consolidation of holdings, we mean that the owner of several scattered

pieces is given land at one place equivalent to all his pieces.

478. 341. By Green Revolution, as it has happened in India, we chiefly mean large

increase in production of food grains which took place in a short span of time.

479. 342. Green revolution in India is largely the result of application of new

techniques of agricultural production.

480. 343. The major reasons for the spread of Green Revolution only to a few crops

are

481. Urgent necessity of devoting more attention to food grains.

482. Heavy industry-biased strategy adopted in our plans required a substantial step-up in

the basic wage good viz., food grains.

483. Slow growth of HYV seeds in case of other crops.

484. 344. The following steps were taken to bring the small and marginal farmers

within the ambit of the Green Revolution

485. They should be given adequate credit facilities.

486. They should be encouraged to join cooperatives.487. They should be supplied farm machines on hire-purchase basis.

488. 345. Mechanization of agriculture in India is advocated on the ground that it

will raise agricultural productivity.

489. 346. By Package programme we mean using together all agricultural inputs for

raising production.

490. 347. The core of the new agricultural strategy as adopted in India consists of

seeds and fertilizers.

491. 348. Agricultural technology is hard to spread because

492. It has to be adapted to local conditions.

493. Rural people are frequently not receptive to outside ideas.

494. Subsistence farmers are afraid of experiment for fear of failure.

495. 349. Short-term finance is usually for a period ranging up to 15 months.

496. 350. Medium-term finance is usually for a period ranging up to 5 years.

497. 351. The major institutional source of finance in the agricultural sector is

Regional Rural Bank.

498. 352. The National Bank for Agriculture and Rural Development is a

development Bank.

499. 353. The national Agricultural Credit (Stabilization) Fund set up by the reserve

Bank of India extends medium-term loans to agriculture.

500. 354. The Reserve Bank of India provides refinance to agriculture.

501. 355. By marketing of agricultural produces we mean a process whereby the

producers and the buyers of the agricultural produce are brought together.

502. 356. The causes of economic disparity in India include

503. Unemployment

504. Poverty505. Fall in real wages

506. 357. Professional Tax is collected by Panchayats.

507. 358. The period 1968-69 was not covered under any of the five Year plans of

India.

508. 359. A fall in exchange rate of Indian Rupee would result in an expansion in

Indias imports.

509. 360. To prevent recurrence of scams in Indian Capital Market, the Government

of India has assigned regulatory powers to RBI.

510. 361. Intensive Agricultural District programme was started in the year 1962-63.

511. 362. Indian Council of Agricultural Research was set up in the year 1965.

512. 363. Measures contemplated to achieve land reform in India were

513. Abolition of Intermediaries.

514. Tenancy reforms.

515. Reorganisation of agriculture.


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516. 364. The major measures of tenancy reforms are

517. Regularization of rent.

518. Security of tenure.

519. Ownership rights to the tenants.

520. 365. The main objective of the government for declaring support price to major

crops is to ensure remunerative prices to farmers even in the event of bumper crops.

521. 366. Support Price for an agricultural commodity is the floor price below whichit cannot be sold.

522. 367. An irrigation project is described as major if it covers a minimum of10,000

hectares.

523. 368. The main cause of sub-division and fragmentation of holdings in India is

524. The laws of inheritance.

525. Mounting pressure of population on land.

526. The break up of joint family system.

527. 369. The measures advocated for solving the problems of sub-division and

fragmentation are

528. Expansion in employment opportunities outside agriculture.

529. Consolidation of holdings.

530. Cooperative farming.531. 370. Land reforms can be affective only if

532. Land ceiling laws are enforced.

533. Consolidation of holdings are completed in all states.

534. Tenancy reforms are implemented.

535. 371. The primary aim of the functioning of public distribution system is to

protect the interests of the vulnerable sections of the population against high prices of essential

commodities.

536. 372. The major defect of the market system for agricultural produce in India is

537. Inadequate storage facilities.

538. Inadequate facilities of credit.

539. Inadequacy of institutional marketing.

540. 373. The defects of agricultural marketing system in India are

541. Malpractices in buying and selling.

542. Lack of grading and standardization.

543. Non-availability of marketing information.

544. 374. A defective agricultural marketing system works as a barrier to economic

growth in general because it works as a disincentive to the farmers to sell in the markets and

thus reduces the size of the marketed surplus.

545. 375. A marketing system in which the management of the markets is entrusted

to a market committee is known as Regulated marketing.

546. 376. A major benefit of cooperative marketing is that it enables farmers to reap

the cost reducing benefits oflarge scale selling.

547. 377. By market intelligence we mean provision of information regarding prices,

demand and other market conditions to the farmers.

548. 378. In India, with the introduction of economic planning particularly after

1962, the previous trend of stagnancy in agriculture was reversed as there was a significant rise

in the cultivation area and productivity.

549. 379. Dantwala Commission appointed by the RBI in June 1977 to evaluate the

performance of Regional Rural Banks in the light of objectives for which they were set up.

550. 380. After Hindu and Muslims, Christian religion has highest population in India

(2001 census).

551. 381. Government measures to solve the food problem have been concerned

with

552. Distribution of food grains

553. Price-fixation of food grains.

554. Providing fertilizer subsidy.

555. 382. The prices at which the government purchases food grains for maintaining

the public distribution system and building up buffer stocks are known as Procurement prices.


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556. 383. The Food Corporation of India was set up on 1st January, 1965.

557. 384. Agricultural labourers are defined as those persons who do not own land

but work on it for wages.

558. 385. The 2nd Agricultural Labour Enquiry reported that agricultural workers

remain totally unemployed for 128 days in a year.

559. 386. Subsidy was expected to be shared in the ratio of 60:40 between Below

poverty line and Above Poverty line sections.560. 387. When we compare the pattern of consumption expenditure of agricultural

labour house holds, we find that the bulk of their expenditure is on food grains.

561. 388. In India, majority of agricultural holdings are marginal holdings.

562. 389. The basic characteristic that distinguishes agricultural labourers from

industrial workers is that the former are not organised in trade unions.

563. 390. Bonded Labour System (Abolition) Act was passed in the year 1976.

564. 391. Jawahar Rozgar Yojana for Rural Employment was started in the year 1989.

565. 392. Cooperation is of great significance particularly for economically backward

countries like India, Its importance is clear from the following factors

566. By pooling their resources, individuals with small means can undertake large scaleoperations and realize its advantages.

567. It is helpful in curbing the evils of bureaucracy.

568. Cooperative institutions can function as instruments of prime significance in the

promotion of planned growth of the economy.

569. 393. In India , the 2nd Green revolution took place in 1983-84.

570. 394. The minimum number of persons required to form a primary cooperative

society is 10.

571. 395. In the 3-tier cooperative structure, as it obtains in India, the institution at

the top is known as State cooperative Bank.

572. 396. The marketing and processing cooperative structure in India is topped by

National Cooperative Agricultural Marketing Federation.

573. 397. Service cooperatives are multi-purpose societies.

574. 398. The main reason for failure of the cooperative movement in India has been575. Small size of the societies.

576. Single purpose nature of operations of these societies.

577. Too much dependence on out side source of finance.

578. 399. The responsibility for policy formulation relating to the Community

Development Programme and the broad pattern of expenditure lies with the Department of

Community Development in the Ministry of Agriculture.

579. 400. Employment Assurance Scheme (EAS) and Jawahar Gram Samriddhi Yojana

(JGSY) were merged into Sampoorna Grameen Rozgar Yojana.

580. 401. The committee chaired by Ashok Mehta which recommended that the

institution of Panchayathi Raj be depoliticized, submitted its report in the year 1978.

581. 402. NABARD is the apex for rural credit.

582. 403. The NABARD was set up with an authorized share capital of Rs.100 crore.583. 404. Disguised unemployment is a situation in which the number persons

employed on a job as compared to what is required is more.

584. 405. Disguised unemployment is the prominent feature of Primary sector.

585. 406. Unemployment arising out of inadequacy of productive capacity to create

enough jobs for all those able and willing to work is called Structural unemployment.

586. 407. At the end of 2006, the number of industries in India which required

license was 6.

587. 408. The organisation which collects information about unemployment, etc in

India is called National Sample Survey Organisation.

588. 409. The government measures to provide employment following the

publication of Bhagwathi Committee Report in 1973 were

589. Rural Works Programme.

590. Marginal and Agricultural Labourers Scheme.

591. Small Farmers Development Agencies.


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592. 410. The presence of cyclical unemployment exists in Capitalist economies.

593. 411. The main cause of unemployment in India is

594. Underdevelopment of the economy.

595. Defective manpower planning.

596. Rapid population growth.

597. 412. The Integrated Rural Development Programme aims at uplifting its target

group ofthe poorest among the poor.598. 413. The National Adult Education Programme was launched on 2nd October,

1978.

599. 414. The Adult Education Programme provides

600. 20 to 30 adult education centers in each community development block.

601. Each centre to have an instructor and field level functionaries.

602. Political parties and cultural organisations will not get government grants for NAEP.

603. 415. The working population of a country comprises the age group 15-60 years.

604. 416. The sharing basis between the Central Government and State Government

under the NREP Project is 50:50.

605. 417. 8th plan registered the highest growth rate.

606. 418. Financial dependency of the states on the centre indicates the unitary aspect

of the Indian constitution.

607. 419. As regards finance, the constitution has made the distribution favourable to

the States.

608. 420. The salient function of the Finance Commission is

609. Deciding the proportion of sharable taxes that should go to States.

610. Deciding grants-in-aid to States.

611. Deciding matter concerning Centre-State financial relations.

612. 421. Shri K.C.Pant headed the 10th Finance Commission.

613. 422. The States have expressed dissatisfaction with the existing division of

powers between the Centre and the States and demanded grater autonomy specially in the

field of Finance.

614. 423. The number of members in a Finance Commission including the Chairman

is 5.

615. 424. The selective regional planning approach aims at equal development rates

for all regions in selected sectors.

616. 425. Indias rank in production of Sugar and Sugarcane (2005-2006) was first.

617. 426. In India, the value of output originating from the agricultural sector is

measured with the help of Output method.

618. 427. The year 2000-01 has been adopted as base year for Wholesale Price Index

(WPI) w.e.f April1, 2006.

619. 428. The most important source of revenue to the State Governments in India is

SALES Tax.

620. 429. Estate duty was 1st introduced in 1953.

621. 430. Duties/taxes levied on commodities produced within the country are called

Excise duties.

622. 431. A finance Bill is a bill ordinarily introduced each year to give effect to thefinancial proposals of the Government of India for the following year.

623. 432. Location of Sugar industry in India is influenced by raw material.

624. 433. Coal and lignite industry needed compulsory licensing according to the

Industrial Policy of July, 1991.

625. 434. The examples of monopoly trade practices are allocation of market

between producers.

626. 435. The Monopolistic and Restrictive Trade Practices Act was enacted in the

year 1969.

627. 436. The Monopoly Inquiry Commission appointed in 1964 was chaired by

K.C.Dasgupta.

628. 437. Rastogi Committee is related with Service tax.

629. 438. According to small & Medium Enterprise Development Act, 2006

investment limit for SSIs is Rs.5 crore.


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630. 439. Sequential licensing is often treated as a cause of industrial concentration . It

implies issuing of license to industrial houses in ascending order of their size.

631. 440. Large industrial house, as defined by the Industrial Licensing Policy Inquiry

Committee, is one with assets exceeding Rs.35 crore.

632. 441. The MRTP Act till its amendment in 1991 defined a large house as one with

assets of not less than Rs.100 crore.

633. 442. In July 1991, India devalued the rupee by about 23%.634. 443. The strategy of growth laid down in the Draft Plan 1978-83 emphasised the

growth of Consumer goods.

635. 444. The features of the price policy of the public sector are

636. Price should be such as to enable an enterprise to operate at the lowest cost and

maximum efficiency.

637. Price Should be such as to enable consumer at all levels to buy and make use of the

goods and services produced by the public enterprise.

638. Price policy should calculate costs and benefits to various sections of the society.

639. 445. Some distinctive features of costing in public enterprises are

640. A public enterprise can get easy capital and other inputs at relatively cheaper prices

which go to reduce its cost of production.

641. Public enterprises incur some social costs which private enterprises may not bear.642. Public enterprises are subject to the investigations by Parliamentary committees. This

often leads to delay in taking crucial decisions resulting I higher costs.

643. 446. In agricultural sector, Public sector does not play any role in its

organisation.

644. 447. The arguments to develop public sector in India are

645. The public sector is essential to realize the target of the high rate of development

deliberately set up by the Government.

646. The pattern of resource allocation adopted in our plans gave industries. This pattern

made it inevitable that the public sector should grow fast.

647. Public sector can be so located as to remove regional disparities in the economy.

648. 448. Major shortcomings of the public sector in India are as follows.

649. Public enterprises have incurred rather heavy social costs on construction,

maintenance, and administration of townships and other social overhead expenditure.

650. In most public enterprises manpower is in excess of actual requirements.

651. The pricing policies of the public sector undertakings are not guided solely by the

profit maximization principle, but are under the regulation and control of the Government.

652. 449. The 1st Iron & steel unit known as the Tata Iron & Steel Company was

established in 1907.

653. 450. The steel plant at Durgapur was set up with the assistance from UK.

654. 451. The problems faced by Iron & steel industry in India are

655. Rise in input cost.

656. Technological management.

657. Inefficient management.

658. Piling up of inventories.

659. 452. The problems faced by Sugar Industry in India are660. Diversion of cane to Gur & Khandsari.

661. Mounting losses.

662. Minimum economic size.

663. Inconsistent policy.

664. 453. In the field of engineering goods India has to import certain vital goods.

665. 454. Jute industry in India is concentrated in West Bengal.

666. 455. The most important competitor of the Indian Jute industry is Bangladesh.

667. 456. The need to modernize the techniques of production is most imperative

in the

668. Cotton textile industry.

669. Jute industry.

670. Sugar Industry.

671. 457. The responsibility for running and managing sick textile mills has been

entrusted to the National Textile Corporation.


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672. 458. Small scale industries are immensely suited to Indias economic

environment because these industries

673. Lead to decentralization of economic activities.

674. Make possible the use of latent resources.

675. Are import-light and skill-light.

676. 459. Most of the problems of small industries arise because ofthe smallness of

their size.677. 460. The village and small Industries (Karve) committee reported in the year

1955.

678. 461. In 2006, the number of commodities reserved for exclusive production in

the small sector was 506.

679. 462. District Industries Centers have been charged with the responsibility of

provision of raw materials and arrangements for credit facilities.

680. 463. On the eve of planning, Indias industrial structure, howsoever mearge in

size, was heavily tilted towards the production ofconsumer goods.

681. 464. The annual growth rate of industrial production during the planning era

has, generally, been more than 5 percent.

682. 465. In the pre-planning period, most of the industries that had developed

were agro-based.

683. 466. The major industries developed in the public sector are basic and capital

industries.

684. 467. In the Post Independence period, private sector expanded quite fast

probably because the private entrepreneurs were faced with the prospects of high profitability

on investments.

685. 468. There are 6 areas in Bharat Nirman Yojana.

686. 469. The predominant type of organisation in Indian large industry is Joint-

Stock company.

687. 470. In terms of value addition, the most industrially developed state of India

is Maharashtra.

688. 471. In terms of value addition, the most industrially backward state of India is

Punjab.

689. 472. By industrial finance we mean organisation of various types of finance

needed by industries for their activities connected with the production of goods and services.

690. 473. If an industry uses a credit for repair, replacement and maintenance of

machines, etc, it will be called medium term finance.

691. 474. An example of a development bank in India is Karnataka State Finance

Corporation.

692. 475. The Guarantee Scheme, which aims at extending financial help to small

industries, was started in the year 1960.

693. 476. The apex industrial finance institution of India is known as Industrial

Development Bank of India.

694. 477. The Industrial Finance Corporation of India was set up in the year 1948.

695. 478. The State Finance Corporations are prohibited from extending loans to

large industries.

696. 479. The Unit trust of India was started in the year 1964 with an initial capital

of Rs.5crores.

697. 480. The Small Industries Development Bank of India was set up in the year

1990.

698. 481. According to the original provisions of the Banking Regulations Act, 1949,

every scheduled bank was required to maintain with the Reserve Bank 5% of its demand

liabilities and 2% of its time liabilities.

699. 482. Non-monetary functions of the Reserve Bank of India include Supervision

and control over commercial banks.

700. 483. New Economic Policy deals with

701. Privatisation.

702. Liberalization.

703. Globalisation.


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704. 484. Under the Voluntary Disclosure of Income Scheme, the companies were

required to pay tax at the rate of 35%.

705. GROUP 2 ECONOMIES

706. USEFUL ECONOMY BITS for Group-2

a. The minimum number of persons required to get a cooperative society registered is

10.

b. Mumbai city is called Manchester of India.

c. Nagaland state has the highest growth rate in population.

d. Elementary education covers children in the age group 6-14.

e. Sales tax is an indirect tax.

f. Rising trend in share prices is called Bullish trend.

g. UTI was the first mutual fund in India.

h. Banks which help in foreign trade are called EXIM Banks.

i. The return on debentures is called Interest.

707. 10) 'White goods' are Durable consumption western countries.

a. The Present coinage system in India was introduced in 1957.

b. Ninth Five Year Plan period is 1997-2002.

c. The first Industrial Policy Resolution was presented in 1948.

d. Reserve Bank of India is the countrys Central Bank.

e. Reserve Bank of India issues all currency in India except One-rupee notes.

f. The important plantation crop produced in India is Rubber.

g. The highest area under irrigation is in the state ofUttar Pradesh.

h. Employees Provident Fund Act was enacted in1952.

i. The Eighth Five Year Plan covers the period 1992-97.

j. The new industrial policy was announced on July 24, 1991.

k. The rate of growth projected in the Eighth Five Year Plan is 5.6%.

l. M.S. Swaminathan is associated with Green Revolution.

m. The largest deposits of uranium in India are found in Bihar.

n. Mica is abundantly found in the state ofJharkhand.

o. Delhi was the venue for the festival of Gold 2005.


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p. Tirupur is famous as a huge exporter of Knitted garments to many parts of the world.

q. Ankaleshwar in India is known for the production of Petroleum.

r. LIC of India uses the ad line We know India better .

s. The part of profit or other surpluses of a company distributed proportionately among

shareholders is called Equity Share.

t. NABARD stands for National Bank for Agriculture and Rural Development.

u. Ashok Leyland is owned by the Hindujas.

v. Hyundai is South Korea's largest car manufacturing company.

w. 'Bottle neck inflation' means Rise in prices without increase in the aggregate demand.

x. Recession in the market implies Slump in trade & industry due to fall in demand.

y. India is the largest tea producing country in the world.

z. BPO is an abbreviation for Business Process Outsourcing.

aa. Suvidha Fixed Deposit scheme was launched by which bank IDBI.

bb. Varishtha Pension Bima Yojana has been launched by LIC of India.

cc. K.L.M. Royal Airlines belongs to Netherlands.

dd. BBC World uses the ad line, 'Knowing is everything'.

ee. Reliance has found the gas in Krishna -Godavari basin.

ff. Bharat Petroleum has introduced improved quality petrol called 'Speed'.

gg. The main cause ofInternational Trade is Comparative cost difference.

hh. Land Revenue is not a Central Government tax.

ii. The commercial banks finance rural credit through NABARD.

jj. Saffron is mainly produced in the state ofJammu & Kashmir.

kk. Tamil Nadu tops in the production ofsafety matches and finished leather.

ll. The factory producing the largest quantity of Titanium is located in the state of

Kerala.

mm. Rourkela Steel Plant is located in the state ofOrissa.

nn. Karnataka state is known as the Silk State of India.

oo. The region known as the Rice-Bowl of India is Krishna-Godavari Delta region.

pp. Maharashtra state leads in the production ofcotton.

qq. Kerala is the largest rubber producing state in India.


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rr. Firozabad in U.P is famous for Glass industry.

ss. The Geological Survey of India has located most of Indias Chromites deposits in

Cuttack.

tt. Bangalore city is known as the silicon valley of India.

uu. The two iron and steel plants that have been setup in collaboration with the former

Soviet Union are Bokaro and Bhilai.

vv. Command Area Development Programme (CADP) was launched to ensure better

utilization of irrigation potential.

ww. The oldest oil refinery in India is located in Digboi (Assam).

xx. Reserve Bank of India was established in the year 1935.

yy. Industrial Credit and Investment Corporation of India (ICICI) was established in theyear 1955.

zz. Industrial Finance Corporation of India (IFCI) was established in the year 1948.

aaa.IDBI was setup in the year 1964.

bbb. SIDBI was setup in the year 1990.

ccc. NABARD was established in the year 1982.

ddd. HUDCO was setup in the year 1970.

eee.HDFC was established in the year 1977.

fff. LIC was established in the year 1956.

ggg.GIC was setup in the year 1973.

hhh. By eradicating poverty Mahatma Gandhi wished to Wipe out every tear

from every eye.

iii. The concept of Five Year Plans in India was introduced by Jawaharlal Nehru.

jjj. The famous Haldia oil refinery was set up in collaboration with which country

France.

kkk.India has its first oil refinery at Digboi.

lll. The town Titagrah is associated with Paper industry.

mmm. Hindustan Zinc Limited is located in Udaipur.

nnn. The port on the eastern coast of India built after independence to export iron

ore to Japan is Paradeep (Orissa).

ooo. Indian telephone industry is located at Bangalore and Srinagar.

ppp. Gondwana coal fields are located in Madhya Pradesh.


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qqq. Kundremukh iron ore Project is located inKarnataka.

rrr. India contains the worlds one-fourth mineral deposit ofMica.

sss. The oldest and largest industry in India is Cotton textile.

ttt. The Zawar mines ofUdaipur are famous for Zinc.

uuu. The state which accounts for more than 90% of total rubber production in

India is Kerala.

vvv. Madhya Pradesh state in India is the only producer of diamonds.

www. Lignite mines in India are located in the state Tamil Nadu (Neyveli).

xxx. After Uttar Pradesh, Maharashtra leads in the production of sugarcane.

yyy. Cauvery delta in Tamil Nadu is famous for the production of Rice.

zzz. The main producer of Jute in India is West Bengal.

aaaa. The only Indian state where gold mining is carried on is Karnataka.

bbbb. The state which produces largest quantity ofcloves isKerala.

cccc. Liquidity is the ability of the bank to convert its non-cash assets into cash

easily and without Loss.

dddd. The financial position of a commercial bank is reflected in its balance sheet.

eeee. UTI was set up in 1964.

ffff. Hilton Young Commission recommended the establishment of the Reserve Bank of

India.

gggg. CENVAT is related with Special excise duty.

hhhh. Decentralization will Increase the importance of subordinates.

iiii. Unclaimed dividends are shown in the balance sheet under the heading Current

liabilities.

jjjj. The President appoints the finance commission in every fifth year.

kkkk. National watershed development project for rain fed area was launched in

1990-91.

llll. In India the first cement factory was started in Chennai.

mmmm. Dow Jones is the stock index ofUSA.

nnnn. In India, the deadline of the goal Power for all is in the year 2012.

oooo. The nodal agency for setting up ofAgro-Export zones is APEDA.

pppp. Nikkei is the stock index of Japan.

qqqq. State Bank of India was nationalized in the year 1955.


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rrrr.The 1ST Finance Commission was setup in the year 1952.

ssss. Dax is the stock exchange ofGermany.

tttt. With Germanys assistance the Rourkela Steel Plant had been built.

uuuu. MRTP commission was appointed by the Government in 1969, to check the

Concentration of economic power in the hands of a few business families.

vvvv. Rice Bown Theory professed that democracy was useless to the poor in and

under developed country, if it could not guarantee them adequate food, clothing

and shelter.

wwww. Removal of poverty was the main objective ofFifth five year plan.

xxxx. Sales tax is a type ofIndirect tax.

yyyy. Most of the disguised unemployed persons in India are found in agriculture.

zzzz. Seasonal unemployment refers mainly to agriculture.

aaaaa. The following programmes were started during the Fourth Five Year Plan

(i) Rural Works Programme (RWP).

708. (ii) Marginal Farmers and Agricultural Labourers Scheme (MFAL).

709. (iii) Small Farmers Development Agency (SFDA).

710. (IV) Integrated Dry Land Agricultural Development (IDLAD).

a. Food for work Programme was introduced during the Fifth Plan.

b. The SFDA has been merged into IRDP.

c. The Food for work Programme has been restructured as NREP.

d. TRYSEM deals with training of rural youth for self-employment.

e. The major emphasis in the First Plan was on agriculture.

f. The major emphasis of the Third Plan was on making India self-reliant.

g. Population growth is not an objective ofIndian's economic planning.

h. The Third Plan turned out to be a failure.

i. The Plan Holiday refers to the period 1966-69.

j. The strategic aim of the Fifth Plan was removal of poverty and attainment of

economic self-reliance.

k. The poverty line is defined on the basis ofan average daily intake of 2400 calories

in rural areas.

l. In India, the largest number of workers is employed in Textile industry.

m. The apex institution in the field of industrial finance is Industrial Development Bank

of India.

n. The Reserve Bank of India became a state owned institution in 1949.


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o. Commercial Banks in India have accelerated the process of economic growth.

p. The rationale behind the nationalization of commercial banks in 1969 was

i. Removal of control by a few

ii. Provision of adequate credit for agriculture and small industry

iii. Encouragement to a new class of entrepreneurs.

q. Sales tax is the most important source ofrevenue of the States in India.

r. Chelliah Committee examined and suggested tax reforms.

s. The most important source ofpublic revenue is taxes.

t. Mixed economy envisages private and public sectors.

u. A market economy is one in which products and factors are bought and sold.

711. 137) The economic factors responsible for the under-development of the Indian economy is

a. Shortage of capital

b. Technological backwardness

c. Lack of skilled manpower

712. 138) High rate of capital formation is not a feature of a developing economy.

713. 139) Economic development has been retarded in India mainly due to poor

infrastructural facilities.

714. 140) In a free economy inequalities of income are mainly due to private property

and inheritance.

715. 141) Mass illiteracy is not the economic factor, for the causes of poverty.

716. 142) National income does not include interest on unproductive national debt.

717. 143) Subsidies mean payment by Government to business enterprises without buying

any goods and services.

718. 144) Depreciation means Loss of equipment over time due to wear and tear.

719. 145) The 'secondary sector' of Indian economy includes(a) Manufacturing (b)

Construction (d) Electricity, gas and water supply.

720. 146) Expenditure on defence is an item ofpublic consumption.

721. 147) 1921 is known as 'Year of the Great Divide' with regard to population growth

in India.

722. 148) Bihar state has the least literacy rate.

723. 149) The maximum number of people in India works in the primary sector.

724. 150) According to the 2001, census, the most densely populated state is West Bengal.

725. 151) Mumbai is the most populated city in India.


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726. 152)The Department of Planning and Development was constituted by the

Government of India in 1944.

727. 153) The Planning Commission was set up by the Government of India in 1950.

728. 154) The concept of rolling plan was accepted in 1977.

729. 155) The long-term objectives of development in India have been

i. High rate of growth with a view to improve the level of living of the people.

ii. Social justice.

iii. Economic self-reliance.

730. 156) Disguised unemployment refers to more persons employed for a job, out of

731. them a few can accomplish.

732. 157) White revolution is associated with Dr. Varghese Kurien.

733. 158) Golden Handshake is the term associated with Voluntary Retirement

Benefits.

734. 159) The first to implement the concept of planned economy was Joseph Stalin.

735. 160) Recent industrial development of India is largest due to Liberalization of

government policies.

736. 161) In India, while defining an urban area, the most important consideration besidesthe size of its population is that it should have Three-fourths of its male working population on

non-agricultural pursuits.

737. 162) The Media campaign 'The World is waiting' is related to British

Airways.

738. 163) Among the BRIC countries (Brazil, Russia, India and China), India is the only

trade-deficit country.

739. 164) In 2005 the Government of India approved a proposal to set up an

International Container Trans-shipment Terminal at Cochin port.

740. 165) The most important commodity in India's internal trade is Coal.

741. 166) Deepest mine in India is located at Kolar.

742. 167) Kandla port has a free trade zone.

743. 168) The maximum power in India comes from thermal plants.

744. 169) The maximum amount of energy in the present day world is

a. provided by Fossil fuels.

745. 170) Of the heavy inorganic chemicals, the basic industrial chemical that

746. Is used in the largest quantity is Sulphuric acid.


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747. 171) India's as well as Asia's first wind farm is located in Gujarat.

748. 172) Karl Marx advocated the establishment of a classless society.

749. 173) Indian economy is most appropriately described as a Mixed

a. economy.

750. 174) The first state in India to recognize tourism as an industry is Goa.

751. 175) Data one is the name associated with BSNL broadband service.

752. 176) Tata Motors has become the first Indian company in the automobile

753. and engineering sector to be listed on the NEW York Stock

754. Exchange(NYSE).

755. 177) Peter A Pyhrr is known as the father of 'Zero base budgeting'.

756. 178) The central objective projected by the eleventh five year plan of

757. India is faster and enhanced Industrial growth.

758. 179) Sales tax is not a central tax.

759. 180) In India, a tax on agricultural income can be levied only by the state

760. Governments.

761. 181) Kandla port was first developed after Independence.

762. 182) The first chemical port in India for export and import of chemical

763. products is being set up at Diu.

764. 183) As an export item of India, Pepper spice occupies the top position in

765. value.

766. 184) In India the major export of iron ore is from Marmugao.

767. 185) The BSE sensex is based on the price movement of 30 shares.

768. 186) Cigarette and betel 'masala' also called 'goods of sin' in popular parlance, serve as

a source of substantial revenue and yet the tax levied on them is termed as 'Sin Tax .

769. 187) High rates of interest in a low inflation regime Discourage people to

make an investment.

770. 188) According to 'India Vision 2020', if India has to attain the goal of totalemployment by the year 2020, it should work towards generating scope for 2 million jobs per

year.

771. 189) The largest gold producing country in the world is South Africa.

772. 190) Iron and Steel industries is regarded as the most basic for our modern

civilization.

773. 191) Coal is not a source ofgeothermal energy.

774. 192) The punch-line "We Invest in Your Dreams" is of the Jammu & Kashmir Bank.

775. 193) ITC has started a rural marketing network called "e-chaupal".


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776. 194) Diesel engines for railways are manufactured at Varanasi.

777. 195) Statistical study of human population is called Demography.

778. 196) Gem cutting in India is done mainly at Surat.

779. 197) Trade Union means Organisation of employees.

780. 198) Dr. Raja J Chelliah headed the Tax Reforms Committee.

781. 199) Sardar Sarovar Project is to be constructed on the river Narmada.

782. 200) Four-fifths of the goods traffic in the country is carried by

783. Railways.

784. 201) Plan Holiday occurred between Third and Fourth Plan.

785. 202) Central Government is responsible for the construction ofNational

786. highways and border roads.

787. 203) A depreciation of a nation's currency usually causes Internal /

788. domestic prices to Rise.

789. 204) World's largest producer of coffee is Brazil.

790. 205) The free trade port of the country is Kandla.

791. 206) "Garibi Hatao" was the famous slogan during 1971 elections.

792. 207) Salem is important for Stainless steel.

793. 208) Wealth accumulated by evading tax is called Black money.

794. 209) The Food Corporation of India established on January 1, 1965.

795. 210) Nepanagar is associated with Paper mills.

796. 211) The longest railway platform in India is in Kharagpur.

797. 212) Green Revolution has been very successful in Wheat.

798. 213) DPAP stand for the Drought Prone Area Programme.

799. 214) Headquarters of the World Bank is situated at Washington.

800. 215) The length of the Indira Gandhi Canal is 468 km.

801. 216) Mazagaon Dock is a ship building yard at Mumbai.

802. 217) Apex institution which regards rural credit is NABARD.

803. 218) World Bank is also known as IBRD.

804. 219) The non-food crop is Tea.

805. 220) The largest cotton production nation in the world is USA.

806. 221) The disease Small-pox has been eradicated from India.


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807. 222) The biggest enterprise of our government is Railways.

808. 223) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are

809. terms most closely related to banking.

810. 224) National saving certificates (NSC) are issued by Post offices.

811. 225) The major source of power in India is Coal.

812. 226) The Oil and Natural Gas Commission was set up in India in 1956.

813. 227) Agriculture still remains the backbone of the Indian economy.

814. 228) The first Regional Rural Bank was established in 1975.

815. 229) The Comprehensive crop Insurance Scheme (CCIS) was launched in

816. 1975.

817. 230) National Productivity Council was set up in 1958.

818. AP ECONOMY

819. Group- 2 AP Economy Bits

820. In the 1st Five Year Plan of A.P , top priority was accorded to Electricity Sector.

821. The share of agriculture sector is gradually decreasing from 1st to 9th Plan.

822. Plan which allotted least funds to agriculture is 9th Plan.

823. In the 10 th Plan, the allotments to the agriculture sector are 4%.

824. The percentage of poverty in A.P by 1973 is 48.8%.

825. The percentage of poverty in A.P by 2004-05 is 15.8 .

826. The percentage of rural poverty in A.P by 2004-05 is 11.4%.

827. The percentage of urban poverty in A.P by 2004-05 is

828. Before the establishment of State Planning Board in 1974, State Planning Department

has extended its cooperation in framing the State Plans.

829. A.P. State Planning Board was established in 1974.

830. The Chairman of A.P State Planning Board is Chief Minister.

831. The Present Vice chairman of the Planning Board is Koneru Rama Krishna.

832. State plans are approved by Union Planning Commission.

833. The target expenditure in plans is called OUTLAY.

834. Plan Holiday refers to the period 1966-69.


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835. Plan Break refers to the period 1990-92.

836. The target growth rate of 9 th Plan in A.P was 6.5%.

837. The actual growth rate of 9 th Plan in A.P was 5.5%.

838. The plan in A.P which achieved highest actual growth rate of all plans is 10th Plan.

839. The Plans in A.P which achieved more actual growth rates than the target growth rates

are 1, 5,6,7,8 & 10 Plans.

840. The actual agricultural growth rate of 10 th Plan in A.P is approximatel

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