UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Agriculture sector, imports of the electronic components and more (Week 72)

1. Dual-use goods are categorised under the SCOMET list in India.

2. Nuclear materials are exempted from the list.

3. They have potential for both civil as well as military applications.

4. They are not capable of being deployed as weapons of mass destruction.

Which of the statements given above are correct?

(a) 1, 2 and 4 only

(b) 1 and 3 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

Explanation

— US government officials are sensitising Indian companies and exporters to deter them from supplying Russia with items and technology that could end up being used in Russian missiles and other defence equipment, which would attract Western sanctions, a government official said on condition of anonymity.

— Electronic components, machine tools, drones, and drone software are examples of dual-use commodities that can be used for both civil and military applications and are on the sanctions list issued by the West as a result of the Ukraine conflict.

— SCOMET stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies. Dual-use goods are categorised under the SCOMET list in India. Hence, statement 1 is correct.

— This list includes dual-use things, such as goods, technology, chemicals, organisms, and so on, that have the potential for both civil and military applications and can be used as weapons of mass destruction. Hence, statement 3 is correct and statement 4 is not correct.

— The SCOMET items are classified under 9 distinct categories: Nuclear materials, Toxic chemical agents and other chemicals, Micro-organisms, Materials Processing Equipment and related technologies, Nuclear-related other equipment and technology, Aerospace systems, Munitions list, Reserved, and :Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion. Hence, statement 2 is not correct.

Therefore, option (b) is the correct answer.

(Other Source: content.dgft.gov.in)

QUESTION 2

With reference to the imports of the electronic components, consider the following statements:

1. The electronics imports from China and Hong Kong have far outnumbered imports from all ASEAN countries combined.

2. The import of electronic components is the largest commodity to be imported by India followed by crude and gold.

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— In the financial year 2023-24, India imported electronic components worth over $12 billion from China and $6 billion from Hong Kong, with the two accounting for more than half of total such imports to India.

— Over the past five years, electronics imports from China and Hong Kong have greatly surpassed those from other major manufacturing hubs such as South Korea, Japan, Taiwan, and all ASEAN countries combined. Hence, statement 1 is correct.

— According to data from the Ministry of Commerce, electronic component imports in 2023-24 totalled $34.4 billion, making them the fifth largest commodity imported into India after crude, gold, petroleum products, and coal. Hence, statement 2 is not correct.

— The overall picture of India’s reliance on Chinese supply of electronic components becomes apparent when compared to imports from other electronics hubs such as South Korea, Japan, Taiwan, and ASEAN countries such as Vietnam and Malaysia.

Therefore, option (a) is the correct answer.

QUESTION 3

With reference to the cotton in India, consider the following statements:

1. It has a roughly two-thirds share in India’s total textile fibre consumption.

2. The pink bollworm (PBW) is a monophagous pest that feeds mainly on cotton.

3. It is a semi-xerophyte which grows in tropical and sub tropical conditions.

4. The optimum temperature for vegetative growth is 21-27 degrees Celsius.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Explanation

— One of India’s most significant cash crops and sources of fibre, cotton is vital to the nation’s industrial and agricultural economies. Cotton has a roughly two-thirds share in India’s total textile fibre consumption. Hence, statement 1 is correct.

— Six million Indian farmers rely only on cotton for their income, while the commerce and processing of the crop employs 40–50 million people.

— Ten major cotton-growing states in India are divided into three zones: north, centre, and south. Rajasthan, Haryana, and Punjab comprise the North Zone. Gujarat, Maharashtra, and Madhya Pradesh are all in the central zone. The South Zone comprises the states of Tamil Nadu, Telangana, Karnataka, and Andhra Pradesh.

— Cotton crops are particularly susceptible to pests and illnesses. The pink bollworm (PBW) is a monophagous pest that primarily consumes cotton. The Bt poisons were originally intended to guard against both Helicoverpa and PBW caterpillars, which burrow into the cotton plant’s bolls or fruits and produce lint and seeds. Hence, statement 2 is correct.

— Cotton, a semi-xerophyte, is grown in tropical and subtropical climates. A minimum temperature of 15 degrees Celsius is essential for optimal germination in the field. The optimum temperature for vegetative growth is 21-27 degrees Celsius, and it can handle temperatures up to 43 degrees Celsius; however, temperatures below 21 degrees Celsius are damaging to the crop. Hence, statements 3 and 4 are correct.

Therefore, option (d) is the correct answer.

(Other Source: http://www.nfsm.gov.in)

QUESTION 4

Which of the following leads to high bond yield?

1. High government borrowing

2. Low crude oil prices

3. High interest rate

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 only

(c) 1, 2 and 3 only

(d) 1 and 2 only

Explanation

— There are various factors like rising crude oil prices, inflation risks and interest rate signals from the US Federal Reserve have contributed to the hardening of bond yields. If inflation is likely to rise, investors will demand higher yields on their bond investments. Hence, 2 is not correct.

— Higher government borrowing is also a reason for the rise in bond yields. Hence, 1 is correct.

— Bond prices and interest rates have an inverse relationship. The rise indicates that the cost of funds in the financial system is rising and interest rates are on the upswing. Hence, 3 is not correct.

— The rising bond yield means the government will have to pay more as yield (or return to the investors), leading to a rise in cost of borrowings.

— This will have an overall impact on the financial system, putting upwards pressure on the general interest rates in the banking system.

Therefore, option (a) is the correct answer.

QUESTION 5

With reference to the agriculture in India, consider the following statements:

1. The agriculture sector in India accounts for the largest share of the total workforce.

2. The agriculture sector has been growing consistently over the past decade.

3. The maximum agricultural households have small landholdings, i.e. between 0.4 and 1 hectares.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

Explanation

— Prime Minister Narendra Modi stated that the “biggest castes” in his opinion are women, youth, farmers, and the impoverished, and that uplifting these four will drive the country’s progress.

— The Prime Minister addressed the country on the 78th Independence Day, and these four “castes” and the government’s attempts to lift them were highlighted in his speech at the Red Fort.

Women

— According to forecasts based on the 2011 Census, women would make up approximately 68 crore of India’s 140 crore population by 2024. Despite their numbers, women continue to be under-represented in India’s workforce. According to the Ministry of Statistics and Programme Implementation’s (MoSPI) most recent Periodic Labour Force Survey (PLFS), only 20.3% of urban women worked between January and March 2024, while 58% of urban men did.

Youth

— India is one of the world’s youngest countries, with about one-third of the population aged 15 to 29 years. According to forecasts based on the 2011 Census, 74.5 crore Indians were under the age of 30, with 37 crore aged 15 to 29 in 2021.

— According to the PLFS for January-March 2024, just 40.7% of urban India’s population aged 15 to 29 was employed, with an unemployment rate of 17%.

Farmers

— Agriculture, while not the largest contribution to the Indian economy, employs the most people. In 2022-23, agriculture accounted for 18.3% of the economy’s Gross Value Added (GVA), but employed 45.8% of the entire workforce. Hence, statement 1 is correct.

— According to data published by the Reserve Bank of India, the agricultural industry has grown steadily over the last decade. In 2014-15, India produced 2,527 lakh tonnes of foodgrains on 1,243 lakh hectares, with a yield of 728 kilogrammes per hectare. By 2022-23, these values have increased to 3,305 lakh tonnes, 1,322 lakh hectares, and 944 kilogrammes per hectare. Hence, statement 2 is correct.

— Data published by the National Statistical Office (NSO) for 2019 showed that most agricultural households have small landholdings – 27.8% between 0.01 and 0.4 hectares, 34.4% between 0.4 and 1 hectares, and 20.2% between 1 and 2 hectares – and it’s these households that have the lowest average monthly incomes and the highest indebtedness. Hence, statement 3 is correct.

Poor

— India has only quantified poverty a few times in its history, most recently with the Multidimensional Poverty Index (MPI) produced by the NITI Aayog. To calculate the poverty rate, the MPI takes into account “acute deprivations in health, education, and living standards that a person faces simultaneously” as well as income and expenditure levels.

Therefore, option (d) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 72)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 72)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 72)

Daily subject-wise quiz — Economy (Week 71)

Daily subject-wise quiz – International Relations (Week 71)

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