UPSC Essentials | Daily subject-wise quiz : Economy MCQs on restoration of degraded, deforested land, BRICS Indore Declaration and more (Week 167)

Which one of the following conclusions based on the above statements is correct ?

(a) All three statements are correct.

(b) There are two correct statements, that include statement 1.

(c) There is only one correct statement.

(d) There is no correct statement.

Relevance: The recent report highlighting India’s progress in restoring degraded and deforested land makes this topic highly relevant for Prelims 2027. UPSC frequently tests factual knowledge of international environmental initiatives, national targets, and conservation-related reports in current affairs.

Explanation

— India has restored 21.7 million hectares of degraded and deforested land between 2011 and 2020, according to the country’s second progress report on the Bonn Challenge released by the Ministry of Environment, Forest and Climate Change and International Union for Conservation of Nature (IUCN).

— This includes restoration through planted forests, natural regeneration, silviculture, agroforestry, and mangrove restoration. The report attributed the progress to the combination of national schemes such as the Compensatory Afforestation Fund, the Green India Mission, the National Afforestation Programme, and the Mahatma Gandhi National Rural Employment Guarantee Scheme, along with dedicated state-level greening efforts. Hence, statement 3 is not correct.

— India had pledged to restore 13 million hectares with an additional eight million hectares by 2030. This was revised to 26 million hectares by 2030 as announced by Prime Minister Narendra Modi at the 14th United Nations Convention to Combat Desertification held in 2019 in India. Telangana topped the list of states that restored the highest land area at 4.18 million hectares, through an agroforestry push of over 3.6 million hectares. Madhya Pradesh, Odisha, Gujarat, and Andhra Pradesh were among the other states leading restoration efforts, according to the report. Hence, statements 1 and 2 are correct.

Therefore, option (b) is the correct answer.

QUESTION 2

The ‘BRICS Indore Declaration’ was recently in the news. It aims to:

(a) provide new direction to food security, farmer welfare, climate-resilient farming, agricultural trade and digital agriculture.

(b) establish a common BRICS currency framework to reduce dependence on the US dollar in international trade.

(c) create a joint BRICS military cooperation mechanism for maritime security and counter-terrorism operations.

(d) formulate a unified BRICS carbon tax regime to achieve net-zero emissions targets by 2050.

Relevance: The BRICS Indore Declaration is a recent outcome of the BRICS Agriculture Ministers’ Meeting, making it an important current affairs topic with international significance.

Explanation

— With Agriculture Minister Shivraj Singh Chouhan asserting that the farmer was at the centre of all deliberations, the ‘BRICS Indore Declaration’ was unanimously adopted to provide new direction to food security, farmer welfare, climate-resilient farming, agricultural trade and digital agriculture.

— The occasion was the BRICS Agriculture Ministers and officials-level meetings held in Indore. Union Minister for Agriculture and Farmers’ Welfare, and Rural Development addressed a press conference and said that the farmer is at centre of this declaration— the shared commitment to advance food security, nutrition, livelihoods, agricultural trade, innovation, investment, climate-resilient farming and sustainable agricultural development by keeping the farmer at the centre has been recorded in this declaration.

Therefore, option (a) is the correct answer.

QUESTION 3

Consider the following pairs:

1. Residual Quota – A quota that allows imports for specified end uses under defined conditions.

2. Country-Specific Quota (CSQ) – A quota reserved for a particular exporting country.

3. Authorised Use Scheme (AUS) – A scheme available after country-specific allocations or for countries without a CSQ.

How many of the pairs given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: The terms Country-Specific Quota (CSQ), Residual Quota, and Authorised Use Scheme (AUS) were recently in the news in the context of the India–UK Free Trade Agreement and the UK’s steel safeguard regime. Understanding such technical trade terms is important for solving conceptual current affairs questions in the economy section of the Prelims.

Explanation

— The India-UK trade deal is set to come into effect on July 15 after both countries, during last-minute talks in London this week, resolved differences over the terms of steel trade, which had delayed the implementation of the trade deal. The UK had announced fresh steel curbs in March this year, much after India and the UK had concluded the negotiations last year in July, which added a layer of complexity in trade ties.

— On the logjam over steel, the Commerce and Industry Ministry said India and the UK have reached a “consensus” to safeguard steel trade and that India’s steel and steel product exports would be protected through a carveout under three categories — country-specific quota (CSQ), residual quota and Authorised Use Scheme (AUS).

— “India and the UK have successfully reached a landmark consensus to safeguard and promote bilateral steel trade. Following constructive deliberations regarding the UK’s upcoming steel measures effective July 1, 2026, both sides mutually agreed to protect commercial interests, minimise market disruptions, and ensure an overall balanced and stable trading environment for exporters. About 85% of India’s exports are out of the steel measures. On the lines under the steel measures, India’s interest has been protected through a mix of CSQ, residual quota and access under AUS,” the ministry said in a statement.

— Country-Specific Quota (CSQ): A quota reserved for a particular exporting country. Hence, pair 2 is correct.

— Residual Quota: A common quota available after country-specific allocations or for countries without a CSQ. Hence, pair 1 is not correct.

— Authorised Use Scheme (AUS): A mechanism that allows imports for specified end uses under defined conditions. Hence, pair 3 is not correct.

Therefore, option (a) is the correct answer.

QUESTION 4

With reference to the PM Surya Ghar scheme, consider the following statements:

1. It is a government scheme that aims to provide free electricity to households in India.

2. It was launched in 2025.

3. Under the scheme, households will be provided with a subsidy of 75 per cent to install solar panels on their roofs.

Which one of the following conclusions based on the above statements is correct?

(a) All three statements are correct.

(b) There are two correct statements, that include statement 1.

(c) There is only one correct statement.

(d) There is no correct statement.

Relevance: The PM Surya Ghar: Muft Bijli Yojana is a flagship government scheme aimed at promoting rooftop solar energy and accelerating India’s clean energy transition. The scheme is also linked to renewable energy, energy security, and climate commitments, making it highly relevant for the environment and economy sections of the Prelims.

Explanation

— The Centre’s plan to install rooftop solar panels in 75 lakh households by year-end may hit a few bumps due to the limited availability and rising costs of these panels made from domestically-manufactured solar cells.

— About 40 lakh rooftop systems have been installed under the PM Surya Ghar: Muft Bijli Yojana so far, adding over 12 gigawatts (GW) capacity. Vendors and installers empanelled under the scheme across multiple states told The Indian Express that they are struggling to procure Domestic Content Requirement (DCR)-compliant solar panels, which are mandatory under the scheme.

About PM Surya Ghar: Muft Bijli Yojana

— It is a government scheme that aims to provide free electricity to households in India. The scheme was launched by Prime Minister Narendra Modi on February 15, 2024. Hence, statement 1 is correct and statement 2 is not correct.

— Under the scheme, households will be provided with a subsidy to install solar panels on their roofs. The subsidy will cover up to 40% of the cost of the solar panels. Hence, statement 3 is not correct.

Therefore, option (c) is the correct answer.

QUESTION 5

Consider the following statements:

1. Market coupling seeks to determine a uniform market-clearing price for electricity by aggregating bids from all power exchanges.

2. India currently does not have any operational power exchanges.

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

Relevance: Market coupling was recently in the news following proposed regulatory changes in India’s power trading market, making it an important current affairs topic. The question tests understanding of market-based electricity pricing and the functioning of power exchanges, both of which are relevant to the economy and infrastructure syllabus.

Explanation

— Supporting the rollout of a market coupling mechanism in India — that seeks to discover uniform electricity price across exchanges — Grid Controller of India (Grid India) has called for establishment of a steering committee comprising key stakeholders to act as Market Coupling Operator (MCO).

— In its draft CERC (Power Market) (Second Amendment) Regulations, 2026, issued in April, the Central Electricity Regulatory Commission (CERC) had proposed designating Grid India as the sole MCO, responsible for the operation and management of market coupling.

— Market coupling seeks to determine a uniform market-clearing price for electricity by aggregating bids from all power exchanges. The objective of market coupling is to aggregate buy and sell bids across all power exchanges and discover a single market-clearing price. Hence, statement 1 is correct.

— India currently has three power exchanges regulated by CERC, where generators, distribution companies, traders and large consumers buy and sell electricity. IEX dominates the market with over 90% share, while PXIL and HPX account for the remainder. 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 158)

Daily subject-wise quiz — Polity and Governance (Week 167)

Daily subject-wise quiz —  Science and Technology (Week 167)

Daily subject-wise quiz — Economy (Week 166)

Daily subject-wise quiz — Environment and Geography (Week 166)

Daily subject-wise quiz – International Relations (Week 166)

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