UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Chabahar port, coffee plantation and more (Week 134)

QUESTION 1

With reference to the Chabahar port, consider the following statements:

1. The port is designed to serve as a vital trade link connecting India with Afghanistan and Central Asian nations.

2. It is part of the proposed International North-South Transport Corridor (INSTC).

3. Recently, India has secured a six-month exemption from US sanctions on Iran’s Chabahar port.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— India has secured a six-month exemption from US sanctions on Iran’s Chabahar port, the Ministry of External Affairs said, adding that talks with Washington to finalise a trade deal are ongoing. Hence, statement 3 is correct.

Chabahar Port

— Located in southeastern Iran, the Chabahar Port is a key strategic project for India, offering its only direct maritime access to the Arabian Sea via Iran while bypassing Pakistan. The port is designed to serve as a vital trade link connecting India with Afghanistan and Central Asian nations such as Uzbekistan and Kazakhstan, providing a shorter and more dependable trade corridor. Hence, statement 1 is correct.

— The port is also part of the proposed International North-South Transport Corridor (INSTC), a multi-modal transportation project linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia. Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

QUESTION 2

The coffee plantation has helped:

1. to restore degraded forest land

2. in reducing soil erosion

3. in providing tribal farmers with a steady cash income

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Explanation

— Prime Minister Narendra Modi said that more and more coffee varieties are gaining popularity globally and are also helping cultivators in several parts of the country — from Chikmagalur, Coorg and Hassan in Karnataka to the areas of Pulney, Shevaroy, Nilgiri and Annamalai in Tamil Nadu.

— Indian coffee is becoming very popular all over the world. Be it Chikmagalur, Coorg and Hassan in Karnataka; the areas of Pulney, Shevaroy, Nilgiri and Annamalai in Tamil Nadu; the Biligiri region on the Karnataka–Tamil Nadu border; or the areas of Wayanad, Travancore and Malabar in Kerala — the diversity of Indian coffee is truly remarkable.

— The Commerce and Industry Ministry said that Koraput coffee has helped restore degraded forest land, reduced soil erosion, and provided tribal farmers with a steady cash income in place of subsistence farming.

Therefore, option (d) is the correct answer.

QUESTION 3

With reference to the India-EU trade, consider the following statements:

1. The EU is India’s largest trading partner.

2. In 2024, bilateral trade in goods witnessed an increase of nearly 90 per cent over the past decade.

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

— Amid steep US tariff pressure on Indian goods, negotiations between India and the European Union (EU) for a free trade agreement (FTA) have gathered pace and an EU trade delegation is expected to visit New Delhi on November 3 for the next round of negotiations, an official said.

— While India and the EU have concluded several chapters, including digital services, both trade partners have differed on key areas, including automobiles and agriculture. A EU status report on negotiations in September said that high-level interventions by senior EU officials with Indian authorities were useful in better understanding each side’s position, but did not “allow sufficient progress in sensitive areas such as automotives and agricultural products”.

— The European Commission, in a report to the European Parliament, had said that the EU is India’s largest trading partner, while India is the EU’s largest one in the Global South. In 2024, bilateral trade in goods reached €120 billion – an increase of nearly 90 per cent over the past decade, and around 6000 European companies operate in India. Hence, statements 1 and 2 are correct.

Therefore, option (c) is the correct answer.

QUESTION 4

Which of the following state governments plans to implement a Green Cess for vehicles from other states entering the hill state to combat pollution?

(a) Himachal Pradesh

(b) Sikkim

(c) Arunachal Pradesh

(d) Uttarakhand

Explanation

— The Uttarakhand government plans to implement a Green Cess for vehicles from other states entering the hill state to combat pollution.

— Adopted as an initiative to mark the 25th year of state formation, the government has announced the cess to be a step towards better environmental safeguards. The funds from the cess will be used for air pollution control, green infrastructure development, and smart traffic management, said the Uttarakhand Pollution Control Board (UKPCB).

— Through the Green Cess, measures like road dust control and the adoption of clean vehicle policies will be the most effective ways to improve the city’s air quality. The government aims to reduce air pollution and improvement in the AQI through the cess. It said the move will help regulate old, polluting vehicles and promote clean fuel-based vehicles. It is also aimed to improve road dust control, amp up tree plantation campaigns, and air monitoring networks.

Therefore, option (d) is the correct answer.

QUESTION 5

The 8th Pay Commission will be led by a former Supreme Court Judge:

(a) Ranjana Prakash Desai

(b) Ashok Bhushan

(c) Deepak Misra

(d) Arun Mishra

Explanation

— The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission. The Commission will review the pay structure and service conditions of Central government employees. The move will bring salary benefits oto lakhs of central government employees as well as pensioners.

— The commission will be led by former Supreme Court Judge Ranjana Prakash Desai. Also, on the panel will be one part-time member and one member-secretary.

— There is no official declaration of the salary hikes. However, the salary changes will be based on a combination of factors, such as existing grade pay, basic salary, HRA, and fitment factor.

— The fitment factor is a multiplier applied to the basic pay of an employee. It is expected to be between 1.83 and 2.46 under the 8th Pay Commission revisions.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 128)

Daily subject-wise quiz — Polity and Governance (Week 134)

Daily subject-wise quiz —  Science and Technology (Week 134)

Daily subject-wise quiz — Economy (Week 133)

Daily subject-wise quiz — Environment and Geography (Week 133)

Daily subject-wise quiz – International Relations (Week 133)

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