UPSC Essentials | Daily subject-wise quiz : Economy MCQs on thorium reserves, Venezuelan crude oil and more (Week 144)

Select the correct answer using the codes given below:

(a) 1, 3 and 5

(b) 2 and 4 only

(c) 1, 3, 4 and 5

(d) 1, 2 and 3

Relevance: Thorium reserves are crucial for understanding India’s three-stage nuclear power programme and long-term energy security. The question integrates economic geography with nuclear science, a recurring Prelims theme through statement-based MCQs on mineral distribution.

Explanation

— Thorium itself is not a ‘fissile’ material like uranium, which means that its atoms are not inherently unstable enough for an extra neutron to easily split the nuclei and release energy. But it is classified as ‘fertile’, and can soak in neutrons and transform into the fissile material uranium-233, which can then be split to release energy.

— The Department of Atomic Energy’s 3-stage power programme envisages a pathway to utilising India’s abundant thorium reserves – found in coastal sands on the beaches of Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra and Gujarat, and in the inland riverine sands of Jharkhand and West Bengal – to generate electricity. The second stage of the 3-stage plan involves the Fast Breeder Reactors or FBRs, where operational progress has been slow.

Therefore, option (d) is the correct answer.

QUESTION 2

The ‘Trade Watch Quarterly’ report is released by:

(a) Ministry of Commerce and Industry

(b) Directorate General of Foreign Trade (DGFT)

(c) NITI Aayog

(d) Reserve Bank of India (RBI)

Relevance: The Trade Watch Quarterly report is critical for understanding India’s trade performance, export-import trends, and global trade dynamics, which are recurring themes in Prelims. It is also pertinent to questions about reports issued by government agencies, particularly NITI Aayog, and its role in economic policy research.

Explanation

— At a time when India is accelerating free trade agreement (FTA) negotiations to diversify exports and soften the impact of US tariffs, a Niti Aayog report has said that India’s trade deficit with its FTA partner countries is rising sharply, but exports from sunrise industries such as electronics are growing a foothold globally.

— The Niti Aayog’s ‘Trade Watch Quarterly’ report said India’s trade deficit with FTA partners rose 59.2 per cent between April and June last year compared to the previous year as imports jumped by 10 per cent to $65.3 billion and exports declined by 9 per cent to $38.7 billion.

— India has concluded FTAs with Oman, New Zealand and the UK in 2025 and is in active negotiations with the EU, the US, Australia, Bahrain, the Gulf Cooperation Council (GCC), the Eurasian Economic Union (EAEU), Canada and the Southern African Customs Union (SACU). New Delhi is also considering a Preferential Trade Agreement (PTA) with Brazil and Israel.

— However, the report said that India’s export performance during the period shows clear structural divergence, with a sharp decline in petroleum exports but a strong surge in electronics exports. Electronics emerged as the standout performer, rising 47 per cent year-on-year, increasing its share to over 11 per cent of total exports, reflecting deeper integration into global electronics supply chains, the Niti Aayog said.

Therefore, option (c) is the correct answer.

QUESTION 3

Consider the following statements:

1. Venezuela has the world’s largest oil reserves.

2. Venezuela accounts for more than 20 per cent of global oil production.

3. Venezuelan crude oil can be easily processed on a sustained basis in all the Indian refineries.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: The question links global energy geography with current affairs, covering oil reserves, production patterns, and crude quality.

Explanation

— The potential stabilisation of Venezuela’s oil sector with American intervention could lead to some volumes of Caracas’s discounted crude oil making their way into India’s oil import mix over the medium to long term to the benefit to the more complex refineries in India, even as any material impact in the near term appears highly unlikely, according to industry experts.

— Venezuela has the world’s largest oil reserves, but accounts for less than 1 per cent of global production. Hence, statement 1 is correct and statement 2 is not correct.

Experts believe that Venezuelan crude offers India a politically acceptable diversification option amid American pressure on India’s Russian oil imports. (Reuters Photo)

— “Venezuelan crude is predominantly heavy to extra-heavy and can be processed on a sustained basis by only a handful of Indian refineries, constraining system-wide intake. Any impact is likely to be incremental and dependent on sanctions policy and the pace of production recovery,” commodity market analytics firm Kpler said. Hence, statement 3 is not correct.

— The US intervention in Venezuela on 3 January 2026 does not materially alter India’s oil market dynamics in the near term. Still, it introduces a potential inflexion point for medium- to long-term crude supply, refining, and upstream considerations. Venezuelan crude had already been largely excluded from India’s import mix due to sanctions and logistics, and initial U.S. oversight has not disrupted existing flows. However, the change in control increases the likelihood of sanctions recalibration and a gradual reintegration of Venezuelan barrels into global markets.

Therefore, option (a) is the correct answer.

QUESTION 4

With reference to the mangoes, consider the following statements:

1. India is the largest producer of the fruit in the world.

2. There are around 1,000 varieties of mango in India.

3. Maharashtra is the largest producer within the country.

4. Nordic countries are the most notable importers.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Relevance: This fact is important for questions on horticulture, agricultural geography, and India’s position in global agri-production, often asked in Prelims through statement-based MCQs.

Explanation

— Erratic rainfall has been severely impacting the yield of mangoes in several regions of the country in recent years, said Minister of State for Agriculture and Farmers Welfare Bhagirath Choudhary in response to a query during the Winter Session of the Parliament. The affected regions include Uttar Pradesh, Telangana, Tamil Nadu, and Bihar, among others, where a change in the rainfall pattern has led to infestation, premature fruit dropping, poor flowering, etc. — all of which contributed to a dip in mango production, Choudhary has said.

— Mangoes are a crucial part of India’s agricultural economy, as the country is the largest producer of the fruit in the world. India accounts for more than 50% of the total mangoes produced worldwide — it produced 223.98 lakh metric tonnes (MT) in 2023-2024, according to the Ministry of Agriculture and Farmers Welfare (MoAFW) data. Hence, statement 1 is correct.

— While there are around 1,000 varieties of mango in India, about 30 are commercially cultivated in different states. Uttar Pradesh is the largest producer within the country, with a share of 26.74% in 2023-2024, the MoAFW data show. Other major mango-producing states include Andhra Pradesh, Bihar, Karnataka, Telangana, and West Bengal. Hence, statement 2 is correct and statement 3 is not correct.

— Over the years, India has also emerged as a prominent exporter of mangoes. For instance, in 2023-2024, the country exported 32,104.09 MT worth $60 million of fresh mangoes, up from 22,963.78 MT worth $48.53 million in 2022-23. The United Arab Emirates, the United Kingdom, the United States, Kuwait, and Qatar (Gulf Countries) were among the most notable importers. Hence, statement 4 is not correct.

Therefore, option (b) is the correct answer.

QUESTION 5

Which of the following countries saw inflation rise by at least 30% to more than 52% by 2025, with average monthly food inflation approaching 7%?

(a) Iran

(b) Syria

(c) Afghanistan

(d) Sri Lanka

Relevance: The question is important for understanding global inflation trends, food inflation, and macro-economic instability, which are frequently tested in Prelims through current affairs. It also links economics with geopolitical stress, sanctions, and supply-chain disruptions, helping analyse comparative economic crises across countries.

Explanation

— Since December 28, Iran has witnessed a wave of protests that has spread to at least 22 of its 31 districts. The unrest, which began in the form of demonstrations by merchants in Tehran’s Grand Bazaar, was fueled by serious economic concerns.

— Iran’s inflation grew across 2025 by at least 30% to over 52%, with average monthly food inflation touching 7%. The Iranian rial lost more than half its value over last year, dropping to a record low of 1.46 million against the US dollar this week.

— On January 5, the Iranian government announced key economic reforms such as ending subsidies on essential imports in an attempt to stabilise the foreign exchange rate. It also began direct cash and voucher transfers to a majority of the population, amounting to approximately $7 a month.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 139)

Daily subject-wise quiz — Polity and Governance (Week 144)

Daily subject-wise quiz —  Science and Technology (Week 144)

Daily subject-wise quiz — Economy (Week 143)

Daily subject-wise quiz — Environment and Geography (Week 143)

Daily subject-wise quiz – International Relations (Week 143)

Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.

Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.