UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Export Promotion Mission, Central Pay Commission and more (Week 137)

QUESTION 1

With reference to the Export Promotion Mission (EPM), consider the following statements:

1. The mission is focused on the availability of credit and reducing the cost of credit, and focuses on MMSE exporters.

2. Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations.

3. Export of gems & jewellery is prohibited under EPM.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— Amid pressure on goods exports to the US due to high 50 per cent tariffs, the Union Cabinet extended additional credit facilities up to Rs 20,000 crore to exporters, and also approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore announced in the Budget this year.

— Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies, a statement released by the Cabinet said. Hence, statement 2 is correct and statement 3 is not correct.

— “The scheme is focused on the availability of credit and reducing the cost of credit, and focuses on MMSE exporters so that they can expand to newer export markets,” Railway Minister Ashwini Vaishnaw said during the press briefing after the Cabinet meeting. Hence, statement 1 is correct.

— “There are several countries that have imposed strict standards to discourage imports into their territory. The mission will also help meet the costs that exporters face to tackle non-tariff barriers such as compliance with standards, technical measures as well and certifications. The mission also has an element of market acquisition that will help with the cost of MSMEs to exhibit their goods in international exhibitions,” Vaishnaw said. Logistics cost, branding and packaging will also be covered under the scheme.

Therefore, option (b) is the correct answer.

QUESTION 2

With reference to the Central Pay Commission (CPC), consider the following statements:

1. The primary mandate of the commission is to review and recommend changes in the salary structure, allowances, and pension schemes of central government employees.

2. The first Pay Commission was established before independence.

3. States are bound to implement the CPC recommendations.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The Central Pay Commission is a committee established by the Government of India under the provisions of Article 309 of the Constitution. Its primary mandate is to review and recommend changes in the salary structure, allowances, and pension schemes of central government employees, including defence personnel, and to ensure that their compensation remains fair and in tune with the changing economic conditions. Hence, statement 1 is correct.

— The first Pay Commission was established in January 1946, even before independence, to rationalise the pay structure of colonial civil services and to ensure parity between different grades of government employment. Since then, India has constituted seven Pay Commissions, approximately once in every decade. Hence, statement 2 is correct.

— The 8th CPC will benefit almost 50 lakh central government employees and nearly 65 lakh pensioners. Unlike the Centre, states aren’t bound by CPC recommendations but also cannot ignore them. Nonetheless, historical data suggest near-universal adoption. All states and UTs implemented the 7th CPC within 2-3 years, often with state-specific fitment factors. Fitment factor is a multiplier used to calculate the revised basic pay.

— States are not legally bound to follow CPC recommendations. They may choose to adopt or modify them based on their finances. Hence, statement 3 is not correct.

Therefore, option (b) is the correct answer.

Read more: 8th Pay Commission: Implications for fiscal health and social equity

QUESTION 3

Consider the following statements:

1. Rubidium is used in nuclear energy due to its exceptional corrosion resistance.

2. Caesium is mainly used in the high-tech electronic sector, particularly in atomic clocks.

3. Graphite is used in making specialty glasses used in fibre optics and telecommunication systems.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The Union Cabinet approved the rationalisation of royalty rates for four critical minerals — graphite, caesium, rubidium, and zirconium — considered critical for green energy. The decision aims to facilitate indigenous production and reduce imports of these minerals to avoid supply chain vulnerabilities, the Cabinet said.

— While graphite is a crucial component in electric vehicle (EV) batteries, zirconium is used in nuclear energy due to its exceptional corrosion resistance. Caesium is mainly used in the high-tech electronic sector, particularly in atomic clocks, GPS systems and rubidium is used in making specialty glasses used in fibre optics, telecommunication systems, and night vision devices. Hence, statement 2 is correct and statement 1 and 3 are not correct.

— “The above decision of the Union Cabinet will promote auction of mineral blocks containing caesium, rubidium and zirconium thereby not only unlocking these minerals but also associated critical minerals found with them, such as lithium, tungsten, REES, niobium etc,” the government said.

Therefore, option (a) is the correct answer.

QUESTION 4

With reference to the ‘currency in circulation (CIC) – GDP ratio’, consider the following statements:

1. A higher CIC-to-GDP ratio is driven by increased digitalisation.

2. A low CIC-to-GDP ratio indicates that people and businesses rely heavily on cash for transactions.

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

— As per the RBI’s definition, currency with public is arrived at after deducting cash with banks from total currency in circulation (CIC). CIC refers to currency notes and coins issued by the central bank within a country that is physically used to conduct transactions between consumers and businesses. During the fortnight ended October 17, cash with the public increased by Rs 30,709 crore and on a year-on-year basis, it rose by Rs 3.13 lakh crore.

— The rise in currency in circulation in absolute numbers is not a reflection of reality as GDP growth has remained strong and even touched 7.8 per cent in the first quarter of FY2026. Since demonetisation in 2016, currency in circulation has risen steadily every year, with the CIC to GDP ratio having surged to 14.5 per cent in 2020-21 from 8.7 per cent in 2016-17. The ratio has now come down to 11.11 per cent in 2025 from 12.1 per cent in March 2016.

— A high CIC-to-GDP ratio indicates that people and businesses rely heavily on cash for transactions, while a lower ratio reflects a shift towards digital payments, banking channels and formal financial systems. Hence, statement 2 is not correct.

— A lower CIC-to-GDP ratio, driven by increased digitalisation and reduced reliance on cash, generally enables smoother monetary policy transmission and better inflation control, experts say. Hence, statement 1 is not correct.

Therefore, option (d) is the correct answer.

QUESTION 5

With reference to the migration survey, consider the following statements:

1. The first dedicated migration survey was conducted from February 1963 to January 1964.

2. Currently, it is conducted by the Ministry of Health and Family Welfare.

3. The most recent migration survey was carried out from July 2010 to June 2011.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The Ministry of Statistics and Programme Implementation (MoSPI) will conduct a year-long migration survey covering almost the entire country from July 2026, aiming to determine the rate of migration, out-migration, short-term migration, the reasons for migration, and the net migration that is occurring. Hence, statement 2 is not correct.

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— “Such information will greatly benefit policymakers, planners, researchers, and development practitioners by enabling more targeted interventions in areas such as urban planning, housing, transportation, employment generation, social security, and skill development. The data will also help in assessing the implications of migration for inclusive growth and regional development, thereby strengthening India’s socio-economic policy framework,” the statistics ministry said in a statement.

— The upcoming survey will be the most comprehensive attempt in more than a decade to understand and map India’s internal mobility patterns. The first dedicated migration survey was conducted from February 1963 to January 1964 with the most recent being from July 2007 to June 2008. Hence, statement 1 is correct and statement 3 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 132)

Daily subject-wise quiz — Polity and Governance (Week 137)

Daily subject-wise quiz —  Science and Technology (Week 137)

Daily subject-wise quiz — Economy (Week 136)

Daily subject-wise quiz — Environment and Geography (Week 136)

Daily subject-wise quiz – International Relations (Week 136)

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