UPSC Essentials | Daily subject-wise quiz : Economy MCQs on nano fertilisers, agrivoltaic farming and more (Week 95)

QUESTION 1

With reference to the when-listed” platform, consider the following statements:

1. It will be launched by the Securities and Exchange Board of India.

2. The platform aims to reduce ‘grey market activity’ in companies’ stocks.

3. It will allow trading companies’ shares in a period between allotment of shares post the closure of the initial public offering (IPO) bidding process and the official listing on stock exchanges.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The Securities and Exchange Board of India (Sebi) intends to launch a “when-listed” platform, which would allow trading of companies’ shares between the allotment of shares following the completion of the initial public offering (IPO) bidding process and the formal listing on stock exchanges. Hence, statements 1 and 3 are correct.

— The platform seeks to decrease ‘grey market activity’ in company equities. Simply explained, the grey market is the unofficial trading of assets that occurs prior to their listing on stock exchanges. This is an unregulated market based on demand and supply, with investors buying and selling shares in the grey market before they are listed. Hence, statement 2 is correct.

— The grey market operates on a cash basis, with no share deliveries. Many retail investors examine the premium provided on the grey market on shares of a firm that has launched an IPO before investing in it.

Therefore, option (c) is the correct answer.

QUESTION 2

Which of the following is/are major components of Digital Public Infrastructure (DPI) that are envisaged under the Digital Agriculture Mission?

1. AgriStack

2. Krishi Decision Support System (DSS)

3. Kisan Credit Cards

4. Soil Profile Maps

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1 and 3 only

(d) 1, 2, and 4 only

Explanation

— The Union Cabinet has approved the Rs 2,817-crore Digital Agriculture Mission, which will create Digital Public Infrastructure (DPI) in the farm sector.

— The Digital Agriculture Mission envisions three primary DPI components: AgriStack, the Krishi Decision Support System (DSS), and soil profile maps. Each of these DPI components will give solutions to help farmers access and use a variety of services.

The program also seeks to establish a technology-based ecosystem, the Digital General Crop Estimation Survey (DGCES), to give accurate agricultural production estimates.

AgriStack

— The farmer-centric DPI AgriStack is made up of three core agri-sector registries or databases: Farmers’ Registry, Geo-referenced Village Maps, and Crop Sown Registry, all of which will be developed and managed by state/UT governments.

— Farmers will be assigned a digital identification (‘Farmer ID’), similar to Aadhaar, that will be dynamically connected to records of land, animal ownership, crops sown, demographic details, family details, schemes and benefits received, and so on.

— The Crop Sown Registry will offer information about crops grown by farmers. In each crop season, the data will be collected via Digital Crop Surveys, which are mobile-based ground surveys.

— The maps will connect geographic information from land records to their actual locations.

Krishi DSS

— The Krishi Decision Support System will develop a complete geospatial system that will integrate remote sensing-based information on crops, soil, weather, and water resources, among other things.

— This data will be used to generate crop maps for identifying crop planted patterns, monitor droughts and floods, and analyse yields using technology or models to settle crop insurance claims for farmers.

Soil Profile Maps

— Under the Mission, comprehensive Soil Profile Maps (on a 1:10,000 scale) of about 142 million hectares of agricultural land are expected to be generated. According to reports, a full soil profile inventory covering around 29 million acres has already been completed.

Therefore, option (d) is the correct answer.

QUESTION 3

With reference to the agrivoltaic farming, consider the following statements:

1. It is the practice of growing crops underneath solar panels.

2. It decreases land-use efficiency.

3. All the crops can thrive when grown in such environments.

4. India has already implemented agri-voltaic farming on a large scale in the southern Indian states.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Explanation

— Agrivoltaic farming is the process of producing crops under solar panels. This permits enough light and moisture to reach the crops while still enabling access to farm machinery. Hence, statement 1 is correct.

— According to a number of recent studies, some crops thrive when planted in such conditions, while others do not. Hence, statement 3 is not correct.

— Doubling up on land use in this way might help feed the world’s rising population while also producing renewable energy.

— Agrivoltaic farming could solve both of these concerns. It grows crops in the shadowed region beneath the solar panels. This boosts land-use efficiency by allowing solar farms and agriculture to coexist rather than compete. Hence, statement 2 is not correct.

— India is currently being emphasised for its high potential and vast opportunity in the agri-voltaic sector and India does not have agri-voltaic farming on a large scale. Hence, statement 4 is not correct.

Therefore, option (a) is the correct answer.

(Source: http://www.weforum.org)

QUESTION 4

Which of the following are the advantages of the Nano fertilisers?

1. High absorption compared to traditional methods

2. cost-effective

3. Require no subsidies

4. Reduces dependency on imports

Select the correct answer using the codes given below:

(a) 2 and 3 only

(b) 2 and 4 only

(c) 1 and 3 only

(d) 1, 2, 3 and 4

Explanation

— Due to a substantial shortage of traditional Diammonium Phosphate (DAP) fertiliser in Punjab, the use of Nano DAP has more than doubled this year, indicating its potential as an alternative solution for farmers.

— Traditional agricultural practices call for one or one-and-a-half bags of DAP, which comes in the form of granular, per acre of crop. In comparison, Nano DAP in liquid form requires only one 500 mL bottle per acre, resulting in significant economic savings and environmental benefits.

— Nano fertilisers are taken by plants with 90-95% efficiency, as opposed to standard approaches that result in nutrient loss of up to 60%. This high absorption rate not only decreases environmental pollutants, but it also maintains soil health.

— According to experts, nano fertilisers are indigenous and cost-effective, requiring no subsidies, as opposed to imported DAP, which imposes a significant financial burden on the country. The utilisation is consistent with India’s goals of minimising reliance on imports and encouraging sustainable farming techniques.

Therefore, option (d) is the correct answer.

QUESTION 5

With reference to the trade deficit, consider the following statements:

1. It is a situation when a country imports more goods than it exports.

2. India’s current account deficit has consistently increased from FY14 to FY24.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— India’s ongoing trade deficit, in which it imports more items than it exports, is frequently interpreted as a symptom of weakness in Indian industry. In truth, the imbalance reflects India’s greater strength in services and attractiveness as an investment destination, rather than a deficiency in manufacturing. Hence, statement 1 is correct.

— An influx of funds must be accompanied by an outflow or accumulation of funds. This means that any country that draws investment (i.e., has a net inflow of funds on the capital account) must either have a current account deficit (i.e., a net outflow on the current account) or accumulate foreign exchange reserves.

— The gap between the return earned by foreigners on their investments in India and the return earned by India on its reserves is known as the cost of keeping reserves.

India’s current account deficit has remained in a healthy range.

— This current account deficit is, in effect, a hallmark of an investment-friendly economy. India has followed a prudent policy of sustaining a current account deficit of around 2% of GDP while drawing comparable capital flows. India’s current account deficit has fluctuated between fiscal years 2014 and 2024. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 95)

Daily subject-wise quiz — Polity and Governance (Week 95)

Daily subject-wise quiz —  Science and Technology (Week 95)

Daily subject-wise quiz — Economy (Week 94)

Daily subject-wise quiz — Environment and Geography (Week 94)

Daily subject-wise quiz – International Relations (Week 94)

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