Jun 24, 2016 60 Days Plan 2019 - Daily Prelims Test

IASbaba ’60 Day Plan- Prelims Test 2016 SCIENCE AND TECHNOLOGY & CURRENT AFFAIRS [DAY 35]

Click here to get all the Tests– Archives Hello Friends Hope you are enjoying Daily questions. The link for Day 34 solution is active now.  Why we asked you to comment? Now go back to check your answers that you posted with honest effort. Edit your answers with marks. Everyday like this you can self monitor your progress for all 60 days. Accountability to self is the only way for success IASbaba '60 Day Plan' - Prelims Test 2016 [Day 35] Q.1) Consider the following w.r.t ‘Semiconductors’ Semiconducting materials are always crystalline solids Semiconductors are always manmade and properties are tweaked by Doping A semiconductor is a material whose electrical conductivity decreases as the temperature increases Select the incorrect code a) 1 and 2 only b) 2 and 3 only c) 1 and 3 Only d) All  Q.2) TERAHERTZ imaging has recently attracted attention for its ability to “see through” everyday objects. It exists between a) Microwave and Radio waves wavelengths b) Radio waves and Infrared wavelengths c) Microwaves and Infrared wavelengths d) Infrared and Visible wavelengths Q.3) There is a decline in the population of pollinators as per recent research and findings. What could be the possible reasons for this? Use of pathogens Use of street lights Air pollution Misuse of pesticides Change in seasonal behaviour due to global warming Select the appropriate code a) 1, 2, 4 and 5 b) 1, 3, 4 and 5 c) 1, 3 and 4 d) 1, 2, 3, 4 and 5   Q.4) ‘Project Baseline’ is associated with which of the following? a) Seeds b) Invasive Species c) Drugs d) Microchips Q.5) 3D Printing has gained lot of attention in recent times. Consider the following statements regarding 3D Printing 3D printing is a process of making three dimensional solid objects from anything It is also known as Additive Manufacturing (AM) 3D printing can create in a wide range of materials that include thermoplastics, thermoplastic composites, pure metals, metal alloys, ceramics and various forms of food. Select the incorrect code a) Only 1 b) Only 2 c) 2 and 3 d) 1 and 2  Q.6) Pick the odd one out in regard to its stem type: a) Bamboo b) Sugar cane c) Corn d) Banana Q.7) Match List I with List II and select the correct answer using the code given below the Lists: List I                            List II a) Magnetic Flux                  Tesla b) Magnetic Inductance     Candela c) Luminous intensity         Coulomb d) Electric Charge                Weber e) Inductance                        Henry     A-B-C-D-E a) 4-3-5-2-1 b) 4-1-2-3-5 c) 1-4-2-3-5 d) 1-4-2-5-3  Q.8) Connecting link between ape and man is a) Cro Magnon Man b) Australopithecus c) Neanderthal Man d) Lemur Q.9) Haemophilic man marries a normal woman. Their offsprings will be a) all girls haemophilic b) all normal c) all haemophilic d) all boys haemophilic Q.10) Consider the following in regard to Dolphins and Porpoise: Both are cetaceans and closely related to whales, but both belong to different families. Both are highly intelligent, they have large complex brains and are self aware like humans Dolphins tend to have prominent, elongated “beaks” and cone-shaped teeth, while porpoises have smaller mouths and spade-shaped teeth. Dolphins have hooked or curved dorsal fin (the one in the middle of the animal's back), while the porpoises have triangular dorsal fin. Which of the statements given above is/are correct? a) 3 and 4 only b) 1, 2 and 3 only c) 1 and 2 only d) All of the above  Q.11) Consider the following statements regarding project ‘Loon’: It is an ambitious project of ‘Facebook’ to provide network to rural and remote areas. Helium balloons are used to carry electronic payloads and are placed in atmosphere over a place where network towers are not available. The balloons will be placed in Stratosphere. Which of the above statements are correct? a) 1 only b) 2 and 3 c) 1 and 2 only d) All of the above  Q.12) The use of nanobots in healthcare, a fictional theory, is a reality now. Consider the following statements: Nanobots are tiny robots that can be directly injected in the blood stream and act like white blood cells and destroy bacteria and other pathogen. Nanobots will have their own sensors and propulsion system. They can be used to deliver targeted medicine with minimum side effect. Select the code from the following: a) 1 only b) 1 and 2 c) 2 and 3 d) All of the above  Q.13) Consider the following statements regarding Impacting Research Innovation and Technology (IMPRINT) Project? It is an initiative of Ministry of Human Resource Development and Pan IIT + IISc. The project aims at finding engineering and scientific solutions to major social and developmental needs like healthcare, energy, ICT, sustainable habitat etc. Which of the above statements are incorrect? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.14) India will be getting its first Bullet Train from a Spanish Company called ‘Taglo’. The company is globally known for faster and lighter trains. Consider the following statements: The train will be tested on Delhi-Mumbai Railway line. It can be run at a speed of around 300 km/hr without any significant upgrade of railway tracks. Currently the fastest train of India is Gatiman Express which runs between Delhi and Agra. Which of the above statements are correct? a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above  Q.15) C. V. Raman, was the first Indian Scientist to receive a Nobel Price. He published his theory on the Raman Effect in 1928. Raman effect is associated with which of the following? a) Scattering of light b) Total internal reflection c) Atomic structure d) Semi-conductors Q.16) Consider the following statements regarding microwave ovens: Instead of generating heat that warms the food from outside, the microwaves penetrate food and create the heat within. Microwaves are electromagnetic waves that are created by a component called ‘Megatron’ in the oven. Megatron has vacuum tubes which creates the microwave. Microwaves are known to destroy the nutrients in the food. Which of the above statements are correct? a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.17) ‘Early Career Research Award’ scheme aims to provide quick research support to the young researchers who are in their early career for pursuing exciting and innovative research in frontier areas of science and engineering. Consider the following statements regarding this scheme: The research grant is 50 Lakhs, including overhead charges for travelling, manpower, research equipment etc. The award is given in three installments for three years. The award is only for Indian citizens. Which of the above statements regarding the scheme are incorrect? a) 1 and 2 b) 3 only c) 1 and 3 d) None of the above  Q.18) Japanese Encephalitis is a notifiable disease in India. Which of the following statements are correct about JE? Japanese Encephalitis is a caused by flavivirus transmitted through infected Culex mosquitoes. JE virus is neurotorpic and arbovirus and primarily affects central nervous system. India has launched JENVAC, its first indigenous vaccine to protect children from JEV. JANVAC has been induced in National Immunisation Program. Which of the above statements are correct? a) 1 and 2 b) 1,2 and 3 c) 2,3 and 4 d) All of the above  Q.19) Which of the following forms of Carbon, is a good conductor of electricity? Diamond Graphite Graphene Charcoal Select the code from the following: a) 2 and 3 b) 1 and 2 c) 3 and 4 d) 2 only Q.20) Rustom II developed by DRDO is an important aeronautical achievement of India. Which of the following statements regarding Rustom II are correct? It is remotely piloted UAV in the category of Medium Altitude, Long Endurance (MALE) category. Rustom II is a fully featured, Combat capable drone built on the lines of US predator drones. Select the code from the following: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.21) Consider the following statements with respect to “Colombia” Quito is the capital of Colombia Quito is one of the closest places on earth where equator passes through Select the correct answer a) 1 only b) 2 only c) Both d) None Q.22) 38th parallel is found between which of the following two countries a) North Korea and South Korea b) South Korea and China c) North Korea and China d) China and Japan Q.23) Consider the following statements with respect to “Shanghai Cooperation Organisation” It consists of all members of Central Asia including China and Russia It is headquartered at Shanghai Select the correct answer a) 1 only b) 2 only c) Both d) None Q.24) Consider the following statements with respect to Net Neutrality It is the principle that ISPs and governments should treat all data on the Internet equally not discriminating or charging differently by user, content site platform application, type of attached equipment and modes of communication It creates a level playing field for all web services and websites, having access to the same connection speed Select the incorrect option a) 1 only b) 2 only c) Both d) None Q.25) Consider the following statements about Rajiv Rinn Yojana The RRY is a central sector scheme which provides an interest subsidy on housing loans to EWS and LIG households It replaces the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) Select the correct option a) 1 only b) 2 only c) Both d) None Download the Solution- Click here P.S- Attempt these questions within 20 minutes with full honesty and write your results in the comment box. Next day, come back and check your result. You can also discuss the important concepts and issues, in case of doubts (among peers) All the best IASbaba

Jun 24, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 24th June, 2016

Archives   IASbaba’s Daily Current Affairs – 24th June, 2016   INTERNATIONAL   TOPIC: General Studies 2 India and its neighborhood and International - relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora.   India and Bangladesh: Ups and Downs India and Bangladesh are not just neighbours. They are two nations bound by the threads of history, religion, culture, language and kinship Period between 2001 – 2006 is regarded as one of the worst periods in India-Bangladesh relations Only minor protocols or agreements were signed during that time The period also saw a surge in insurgency activities in the Northeast with the United Liberation Front of Asom and the Nationalist Socialist Council of Nagaland, among other outfits, crossing the border for training However, from 2009 onwards, as cross-border issues were addressed, bilateral relationship improved and progress was made in some key areas PM Modi’s visit to Bangladesh last year: Highlights Raised hopes for the settlement of old issues between the countries Increased economic and strategic ties (22 agreements were signed, including the historic ratification of the Land Boundary Agreement) Cross-border trade increased to new levels Bangladesh imported products worth $5.82 billion from India in the last fiscal year. India also exports goods estimated more than $5 billion through informal channels, making the volume of official and non-official trade approximately the same. Informal trade is mostly due to corruption and inadequate border infrastructure. Concern: However, Bangladesh’s exports to India were only at $527 million with almost 20 per cent being ready-made garments. Other items include jute products, agro processed and non-processed foods, and light engineering products.   India-Bangladesh Issues: Cross-border trade imbalance Despite duty-free access, Bangladeshi exporters face high non-tariff barriers in the form of bureaucratic and customs bottlenecks, delays due to manual clearance, visa problems, lack of banking services and lack of warehouse facilities at the border The cost of cross-border trade is quite high ‘Border Haats’, or markets across the India-Bangladesh border, were a successful solution to increase legal business on the borders. Recently, Bangladesh and India have agreed to set up six more haats along their borders. Cattle trade One bone of contention has been cattle trade. India has surplus cows (three times more than what is needed to produce the volume of milk consumed nationally), since eating beef is a religious stigma in many places These surplus cows are mostly donated to temples where they are tied to fences, die from dehydration and the remains sold to leather merchants. However, exporting such cows to Bangladesh, which tantamount to making gains from sunk capital, is still prohibited, leading to cattle smuggling. Border killing Border killing of Bangladeshis by the Indian Border Security Force is a continued concern. From 2010-2015, at least 236 Bangladeshis have been killed by BSF personnel. The above figure is very worse when compared to that, killings along the U.S.-Mexico border by U.S. Border Patrol since 2010 been only 48 where drugs worth billions are smuggled across the border Cattle, even if smuggled, can’t be worse than drugs, and shooting the offenders is not the right solution when there are options for imprisonment, fines, and confiscation. There have been incidents of BSF killing those who were allegedly smuggling illegal goods. Similarly, the latest decision by the Indian Home Minister to completely seal off border with Assam by June 2017 is inconsistent with healthy neighbourly relations. Power Government-to-government power trade is 1,300 MW from India to Bangladesh. India’s state-run Bharat Heavy Electricals Limited (BHEL) is building the Rampal coal-fired power plant in Bangladesh despite environmental concerns that the Sundarbans is situated only 14 km away from the proposed site. In the private sector, Reliance Power has won approval to set up a 750 MW LNG-based power plant and an LNG terminal in Bangladesh, paving the way for $1.3 billion investment, and Adani Group is set to sell 3,000 MW power to Bangladesh. Connectivity On connectivity, the focus has been on road, rail, rivers, sea, transmission lines, petroleum pipelines, and digital links that would give Delhi access to the Northeast and to Southeast Asia through Bangladesh. Bangladesh-India coastal shipping began in March this year Trains are set to run from Kolkata to Agartala, a project to be completed by 2017. Trucks carrying Indian goods reached Tripura from Ashuganj port on June 19, making the long-cherished idea of transhipment into reality. Water The Teesta water-sharing agreement had been stalled due to the West Bengal elections. (As Mamata Banerjee has swept back to power, it is time to deliver on the promise). India had also undertaken the Tipaimukh project on the Barak river without officially informing Bangladesh. If built, the dam will adversely affect nearly 40,000 people in Bangladesh. With resistance from Bangladesh and Manipur, the project has been temporarily deferred. Conclusion: While progress has been made since Mr. Modi’s visit, greater issues are still at bay. The time is ripe to build on the successes and resolve the remaining issues. As the pragmatic new-generation Bangladeshis have shed the anti-India mindset of the 1970s, the challenge for India is to keep up the momentum and not to be perceived as being tied to any particular party or ideology but only to the people of Bangladesh. Both the Nations should work together to harness the rich potential of relationship. Connecting the dots: Recent trends in India and Bangladesh relations have witnessed increased economic and strategic ties. However, there are many unresolved issues between the two nations. Critically examine both the statement and suggest suitable strategies to resolve the issues diplomatically.   NATIONAL   TOPIC:  General Studies 2 Issues relating to development and management of Social Sector or Services relating to Health, Education, Human Resources   UGC— A Silent Spectator (1956—2016) The University Grants Commission (UGC) is the central body for coordination, determination and maintenance of standards of university education in India. It has been mandated to initiate important decisions and dialogues which have an important bearing on the entire student population of the country Primary functions of UGC spelled out: Overseeing distribution of grants to universities and colleges in India Providing scholarships/fellowships to beneficiaries Monitoring conformity to its regulations by universities and colleges Worrying trend exhibited by UGC: It has become increasingly difficult for the UGC to keep pace with the changing dynamics of higher education; recent decisions have been considered to be ill-considered, with a lack in research and no proper consultation with the stakeholders. Some of the decisions that have paved way for such conclusion: Increase in teaching hours of the faculty and its subsequent cancellation Implementation of the choice-based credit semester system in Delhi University Decision to discontinue UGC non-NET scholarship for MPhil and PhD students and its abandonment after protests   Failure of UGC to evolve according to the changing dynamics of higher education— Delay in fellowships— A regular affair More prevalent: In ministries such as minority affairs, social justice, and tribal affairs Solutions to gain more ground: Usage of direct benefit transfers for fellowships Bringing of institutions under the public finance monitoring system An understaffed UGC Lack of manpower leads to lack of established standards in disbursing the primary functions— workforce not efficiently utilised An inefficient working ecosystem fails to ensure quality standards QS Higher Education System Strength Rankings: India ranks 24th in higher education system strength out of the 50 countries Under-regulation & Over-regulation: Many substandard institutions have found a way to flourish in the country owing to the under-regulation exercised by the UGC based on their own whims (Fake degrees, irregularities in finance, threefold increase in complaints) Also, many reputed institutes have come under the wrath of UGC— if the universities have defied UGC on their way ahead 2015: UGC wrote to 10 institutions asking them to shut down their off-campus centres for violating rules (BITS Pilani was served a court stay order for the same) New Rules: Lifts the bar on the number of off-campus centres for the deemed universities Stipulates that the UGC and human resource development ministry approve applications for deemed universities within seven months (earlier—6-7 years) T.S.R. Subramanian Committee on UGC: UGC Act should be allowed to lapse and be replaced by a new National Higher Education Act as it has been unable to effectively implement its regulations aimed at ensuring the quality of higher education in the country over the years Widespread irregularities in grant of approval of institutions and courses Loopholes by UGC in monitoring standards of education in higher education institution Credentials compromised owing to large scale approvals granted to a large number of sub-standard colleges and deemed universities UGC does not have the adequate number of personnel with credentials that matches to the required positions in question to be an effective regulatory force in the higher education sector Other committees echoing the same note: Hari Gautam committee report Yashpal Committee (subsuming of various authorities like UGC and AICTE — the technical education regulator — within a bigger platform providing interaction between different areas of knowledge) Suggestions: Specialised functions should be undertaken by specialised bodies The UGC could be revamped, and could be made the nodal point for administration of the proposed National Higher Education Fellowship Programme, without any other promotional or regulatory function   NOTE: Recommendations of Subramanian Committee on New Education Policy 1) An Indian Education Service (IES) should be established as an all India service with officers being on permanent settlement to the state governments but with the cadre controlling authority vesting with the Human Resource Development (HRD) ministry. 2) The outlay on education should be raised to at least 6% of GDP without further loss of time. 3) There should be minimum eligibility condition with 50% marks at graduate level for entry to existing B.Ed courses. Teacher Entrance Tests (TET) should be made compulsory for recruitment of all teachers. The Centre and states should jointly lay down norms and standards for TET. 4) Compulsory licensing or certification for teachers in government and private schools should be made mandatory, with provision for renewal every 10 years based on independent external testing. 5) Pre-school education for children in the age group of 4 to 5 years should be declared as a right and a programme for it implemented immediately. 6) The no detention policy must be continued for young children until completion of class V when the child will be 11 years old. At the upper primary stage, the system of detention shall be restored subject to the provision of remedial coaching and at least two extra chances being offered to prove his capability to move to a higher class 7) On-demand board exams should be introduced to offer flexibility and reduce year end stress of students and parents. A National Level Test open to every student who has completed class XII from any School Board should be designed. 8) The mid-day meal (MDM) program should now be extended to cover students of secondary schools. This is necessary as levels of malnutrition and anemia continue to be high among adolescents. 9) UGC Act must be allowed to lapse once a separate law is created for the management of higher education. The University Grants Commission (UGC) needs to be made leaner and thinner and given the role of disbursal of scholarships and fellowships. 10) Top 200 foreign universities should be allowed to open campuses in India and give the same degree which is acceptable in the home country of the said university Connecting the Dots: Does the scrapping of UGC merit attention of it being a remedy needed for India’s higher education system? Discuss. MUST READ A strange obsession with the NSG Hindu Related Articles: Nuclear Suppliers Group – Mind Map TLP – 2016 Quest for another Holy Grail – Nuclear Suppliers Group (NSG)   Hate-free speech vs. free hate speech Hindu   Solution is the problem Indian Express Related Articles: Reservation: Why Jats want a quota? RSTV - The Big Picture TLP Reservation: boon or bane?   Heavy lifter Indian Express   A material change Indian Express Related Articles: A stitch in time for a rise in India’s Employment numbers   Maoist anniversaries: pro-forma, tired Livemint   The myth of austerity and growth Livemint MIND MAPS   1. Bureaucratic Faux Pas

Jun 24, 2016 RSTV Video

The Big Picture -How to Widen the Tax Base?

Archives     How to Widen the Tax Base?   At a conference titled 'Rajasva Gyan Sangam' (Knowledge Conference on Revenue) consisting of participation from top officials of CBEC and CBDT, PM proposed RAPID - Revenue, Accountability, Probity, Information And Digitisation of taxation for accelerating the tax base net and improve efficiency of tax administration. Out of the population of 125 crore, the current tax base is 5.3 crores. The current initiative is expected to double the tax base to 10 crores by bridging the trust deficit and approaching the taxpayers with ‘soft and sober’ behaviour. Lot of positive tax reforms have happened since 1991. Income tax rate was extremely high (97.5% in 1973-74) which has now been brought down to 30% which is the lowest in world till now. Tax mobilisation has also gone up and tax base increased. Tax base expansion and contraction also depend upon economy à Growing economy, people pay more. Economy on downturn, people don’t. The worldwide trend to have a broader base is to have non-distortionary tax, i.e. government shouldn’t tax some more and leave some totally out of it. This creates an attitude of evasion and avoidance amongst those who pay. GST as a means of non-distortionary tax will play a major role in encompassing more in tax net due to uniform tax rates for different layers of society. The impact on fiscal consolidation and higher Tax-to-GDP ratio will also be visible. Kelkar Committee report mentions the ‘missing middle’ which include professionals (CAs, lawyers, doctors) who do not pay taxes. However, government has presumptive taxation measure for them. But, other middle class like small retailers who are not in tax net have no presumptive taxation. Efforts on more presumptive taxation options to businessmen and professionals in Tier-1 and Tier- 2 cities will aid in widening the tax base. Others include HUF, and rich farmers too. Out of 25 crore households in India, 15 crore belong to agricultural sector which are exempted from taxes. However, taxing agricultural income is possible beyond a large threshold limit. Also, the parallel economy existing in India of unaccounted incomes and expenditures (black money) needs to be unearthed. Cashless economy should be way forward as majority tax evasion occurs in cash transactions. Less cash utility will turn the people towards tax compliance. For successful implementation of tax reforms, the funding of political parties need to be more transparent.  This relieves the pressure from companies and wealthy individuals who have to generate black money to pay to politicians, bureaucrats, extortionists and instead comply with taxation policy. So, it is not about just lowering the tax rate but also creating situation where entities don’t have to amass tax evasion to pay political system. GST is sought to be a major revolutionary tax reform where it is expected to leave information trail. Compulsory KYC on investments has also led to registration of information. Data collection sources have increased with filing system, social networking sites, travel accounts etc. The task is to consolidate and assess the data and include them in tax base without any harassment. The tax collection framework needs to be charted out to bring people in tax foray who belong to three categories. Some want to pay tax but scared of being mad treated so avoid being in fold. Its low hanging fruit which government can target Some are completely out of framework and GST is going to be huge leap for them Some people don’t want to pay taxes and keep themselves away from taxation book. Government needs to target them. Thus, government has to assure that tax payers will not be badly treated. For this, the tax regime should be made non-adversarial and more incentivised. This doesn’t mean no taxes. It is non-feasible as government needs resources to perform. Hence, to capture potential tax payers, government needs to follow ‘one government approach’ where data of CBEC and CBDT are integrated to get a holistic information. Tax evasion takes place the most in indirect taxes and thus, GST will be helpful in data consolidation. When people know they are being monitored, they pay taxes honestly. Instead of target-based approach, compliance based approach should be adopted.   Way forward: Transfer pricing, minimum alternative tax, and plans to unearth black money are all various manifestations to widen the tax base. The economic Survey has also called for widening of the individual tax payers' base, as nearly 85 percent of the economy remains outside the tax net. Implementation of Tax Administration Reform Commission (TARC), headed by Dr. Shome which includes merging of CBDT and CBEC, use of PAN, simple laws among others to increase tax buoyancy. Less of big bold tax reforms and more of structural tax administration reforms is essential. Instead of excessive focus on auditing, care should be taken to create tax payer service. For example, UK’s HMRC brought cooperative compliance by analysing tax payer’s data and the Customer Relation Manager helped them in paying tax by removing adversarial aspect. From 5000 sample tax payers, they collected additional 2 billion pounds of taxes. Key words Tax administration= Implementation of taxation rules and regulation which includes ties include identify cation and registration of taxpayers, processing of tax returns and third-party information, examination of the completeness and correctness of tax returns, assessment of tax obligations, (enforced) collection of taxes and provision of services to taxpayers Presumptive taxation= As per the Income-tax Act, a person engaged in business or profession is required to maintain regular books of account and further, he has to get his accounts audited. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, 44ADA and 44AE. A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account and also from getting the accounts audited. Tax to GDP ratio= Total government tax collections divided by the country's GDP. India has 17.7% (Sweden= 54%) Refer: The curious case of the missing Indian taxpayers Tax Reform-Changing Paradigms AIR Debate – Tackling off Shore Tax Evasion

Jun 23, 2016 60 Days Plan 2019 - Daily Prelims Test

IASbaba ’60 Day Plan- Prelims Test 2016 ECONOMICS [DAY 34]

Click here to get all the Tests– Archives Hello Friends Hope you are enjoying Daily questions. The link for Day 33 solution is active now.  Why we asked you to comment? Now go back to check your answers that you posted with honest effort. Edit your answers with marks. Everyday like this you can self monitor your progress for all 60 days. Accountability to self is the only way for success IASbaba '60 Day Plan' - Prelims Test 2016 [Day 34] Q.1) Consider the following w.r.t. Securities and Exchange Board of India (SEBI). SEBI was established under the Securities and Exchange Board of India act 1992. The Securities Laws (Amendment) Act, 2014 provides for search and seizure after obtaining approval from Union Minister of Finance. National Strategy of Financial Education was initiated by SEBI with a vision of ‘a financially and empowered India’. SEBI is part of Financial Stability and Development Council (FSDC). Select the correct answer a) 1, 2 and 4 only b) 1 and 3 only c) 1, 3 and 4 only d) 2, 3 and 4 only Q.2) In 2012 SEBI brought out regulations for Alternative Investment Funds (AIFs). Which of the following is incorrect? Category I AIFs are those who invest in start-ups or early stage ventures or social ventures that government considers socially or economically viable. Category II AIFs are those funds are allowed to invest anywhere in any combination, but cannot take debts, except for day-to-day operation purposes. Category III AIFs are funds that make short-term investments and then sell, like hedge funds, come under this. Union Budget 2015-16 tax pass through has been given for all 3 categories. Select the correct answer a) 1, 2 and 3 only b) 1, 2 and 4 only c) 1, 3 and 4 only d) All of the above Q.3) Consider the following about Securities Appellate Tribunal (SAT) SAT consists of a presiding officer who is a deputy governor of RBI concerned with money market and capital market. SAT operates under Civil Procedure Code 1908. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.4) Which of the following are part of the Foreign Investment Promotion Board (FIPB)? Secretary Department of Economic Affairs. Secretary Department of Revenue. Secretary DIPP Principal Secretary to PM Secretary Ministry of Small Scale Industries. Select the correct answer a) 1, 2, 3 and 4 only b) 1, 2, 3 and 5 only c) 1, 2, 4 and 5 only d) All of the above Q.5) FDI is prohibited in which of the following? Lottery business Business of Chit funds. Nidhi Company Manufacturing of Cigars, Cheroots and cigarettes of tobacco Gambling and betting. Select the correct answer a) 1, 2 and 4 only b) 1, 3 and 5 only c) 1, 2 and 5 only d) All of the above Q.6) Which of the following is incorrect about FIPB? a) The Foreign Investment Promotion Board (FIPB), presently is housed in the Department of Economic Affairs, Ministry of Finance, is an inter-ministerial body. b) The FIPB was initially constituted under the Prime Minister's Office (PMO) in the wake of the economic liberalization drive of the early 1990s. c) The Board was reconstituted in 1996 with transfer of the FIPB to DIPP d) The approval limit for FIPB is Rs. 2000crore beyond which it needs approval of Union Cabinet. Q.7) Which of the following is correct about National Investment and Infrastructure Fund (NIIF)? a) NIIF was set up as a NBFC, to raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB). b) The objective of NIIF would be to maximize economic impact mainly through infrastructure development in commercially viable projects, only greenfield and not brownfield, but including stalled projects. c) The NIIF will be established as one or more Alternate Investment Funds (AIF) under the SEBI Regulations. d) The Government had approved the creation of NIIF with the aim to attract investment from international sources and not domestic for maximizing economic impact. Q.8) Consider the following about buyback of shares. A buyback is the repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.9) Recently, the market regulator Securities and Exchange Board of India (SEBI) barred 13 entities from the securities market for five years. They were accused of manipulating Global Depository Receipts (GDRs) issued by Indian companies. Which of the following are correct about GDRs? Global Depository Receipts (GDRs) is a mechanism which allows one to buy and sell shares of a foreign company without having to bother about opening a foreign brokerage account. Global Depository Receipts (GDRs) is a mechanism which allows one to buy and sell shares of a foreign company without having to bother about opening a foreign brokerage account. GDRs are usually backed by sovereign governments of that country that provide companies, investors and traders opportunities to make global investments. Country’s prone to political unrest or geopolitical conflicts can severely impact the valuations of a company, resulting in GDR valuations losses for an investor who may have been betting on that particular company. Select the correct answer a) 1 and 2 only b) 1, 2 and 3 only c) 1, 2 and 4 only d) All of the above Q.10) Consider the following about Participatory Notes (P-Notes). "P-notes," are financial instruments used by investors or hedge funds that are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian securities. India has permitted P Notes recently under the expert suggestion of top economist Subramaniam Swamy who considers P Notes will bring back all black money stashed away. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.11) Consider the following statements: Capital market loans are used by industries for fixed investment. In principle Capital market is a short term loanable fund. Which of the above statements are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2  Q.12) Gilt-Edged securities are the most sought after type securities. Which of the following statements are correct about Gilt-Edged securities? Gilt-edged securities are a high-grade investment with very low risk with confirmed dividend or interest returns. They are based on platinum, gold and silver. Select the code from following: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.13) Indian companies are allowed to access global finance market and benefit from the lower cost of funds. They have been permitted to raise resources through which of the following means? American Depository Receipts (ADRs) Global Depository Receipts (GDRs) Foreign Currency Convertible Bonds (FCCBs) External Commercial Borrowings (ECBs) Select the code from below: a) 1 and 2 b) 3 and 4 c) 1,2 and 4 d) All of the above Q.14) Buy Back of shares is a method of financial engineering. It is process which enables the company to go back to its share holders and offer to purchase the shares by them. Which of the following statements are correct about the process of buy-back of shares? When a company faces a cash crunch it buys back its shares. Buy Back is used as a defence mechanism when there is a threat of corporate takeover. It provides a safeguard against hostile takeover by increasing promoter’s holding. Buy Back can divert away the company’s funds from productive investments. A company can buy its shares every year with subject to the satisfaction of other conditions like debt-equity ratio, limits of buy back etc. Select the code from the following: a) 1,2 and 3 b) 2,3 and 4 c) 1,3 and 4 d) All of the above Q.15) A ‘Commercial Paper’ is an important instrument in the money market. Which of the following statements are correct about ‘Commercial Papers’? Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Commercial papers are usually sold at a discount from the face value. It is not backed by collateral, only firms with excellent credit ratings from a recognized credit rating agency will be able to sell their commercial paper at a reasonable price. Select the code from the following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.16) Which of the following statements regarding ‘Certificate of Deposits’ are correct? Whenever a big corporation wants to open an account in RBI, it needs to take a prior permission from the Governor. After assessing the performance of the company and its market rating, the corporation is issued a certificate by the bank, called ‘Certificate of Deposit’. Certificate of Deposit (CD) refers to a money market instrument, which is negotiable and equivalent to a promissory note. Select the code from below: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2  Q.17) SEBI has established a Foreign Portfolio Investor Regulatory Framework. Which of the following statements are correct about FPIs according to this framework? All existing Foreign Institutional Investors (FIIs) and QFIs are to be merged into one category called FPI. An applicant desirous of FPI registration should not be a resident in India or a Non-Resident Indian. FPI registration is to be undertaken and granted by Designated Depository Participants (DDPs) on behalf of SEBI. The registration of FPI is temporary and has to be renewed yearly. Which of the above statements are correct? a) 1,2 and 3 b) 2,3 and 4 c) 1,3 and 4 d) All of the above Q.18) Consider the following statements regarding Treasury bills:  Treasury bills are issued by the RBI on behalf of the government of India. Treasury bills are issued through auctions and for a period of 91 days only. State governments are also allowed to issue Treasury bills. Treasury bills are available for a minimum amount of 1 lakh and then in multiples of 25000. Which of the above statements are incorrect? a) 1 only b) 2,3 and 4 c) 1,2 and 3 d) None of the above  Q.19) Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875. The NSE, on the other hand, was founded in 1992 and started trading in 1994. Which of the following statements are correct about the stock exchanges of India? Both exchanges follow the same trading mechanism, trading hours and settlement process. The number of firms listed in NSE is almost three times than they are listed in BSE. NSE enjoys almost a complete monopoly in Derivative trading. Select the code from following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above  Q.20) Which of the following are the characteristics of a ‘Bull’ Market? In a bull market, there is a weak demand and strong supply of securities. Share prices will rise as investors compete to obtain available equity. Select the code from the following: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Download the Solution- Click here P.S- Attempt these questions within 20 minutes with full honesty and write your results in the comment box. Next day, come back and check your result. You can also discuss the important concepts and issues, in case of doubts (among peers) All the best IASbaba

Jun 23, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 23rd June, 2016

Archives   IASbaba’s Daily Current Affairs – 23rd June, 2016   INTERNATIONAL   TOPIC: General Studies 2 India and its neighborhood and International - relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. Important International institutions, agencies and fora- their structure, mandate.   India and its NAM policy: confusion or solution? India, since the inception of its NAM policy, has been finding itself tough to stand in a place somewhere in the middle. Its famous policy was criticized then by the US and its allies as a “sham”, and now it has invited laughter and mockery about its concept from the South Block. The below post describes the present India’s scenario with regard to its non-aligned policy. After India and the Soviet Union signed the Treaty of Friendship and Cooperation in August 1971, the then Indian foreign minister had to fly to US to sign an identical treaty with the US government. But, the US government complained about how the treaty made India’s policy of non-alignment look like a “sham” (sham - a thing that is not what it is purported to be) Now, a remarkably similar incident can be seen in PM Modi’s own task in recent months, however in reverse order. e. PM Modi’s recent visit to US, finalized the Logistics Exchange Memorandum of Agreement (LEMOA) on defence and India declared the U.S.’s major defence partner. Next, Mr. Modi must fly to Tashkent to finalise documents for India’s accession to the Shanghai Cooperation Organisation (SCO), a “political, economic and military alliance” spearheaded by Russia and China.   The term ‘Non-Alignment’: Background Jawaharlal Nehru, as early as in 1946, mentioned that India’s foreign policy would rest on eight pillars: non-alignment with “power groups” was the third. India’s greater push for the Non-Aligned Movement (NAM), formed in Belgrade in 1961, came as a result of its disillusionment with the U.S., China, and colonial powers. Present Now, the term ‘non-alignment’ now invites raised eyebrows and laughter in South Block (as it alleges that India is moving more to the right than the left). The term has yet to find a mention in the Prime Minister’s speeches, it may still be a necessity in his actions, especially with India’s desired Nuclear Suppliers Group (NSG) membership hanging in the balance. History is indeed strange, former enemies became the best allies, and India today stands once again in a place somewhere in the middle (albeit more to the right than the left).   Shifting sands of alliances It is alleged that India is now more to the right than the left India has close defence exchanges like Operation Malabar with the U.S. and Japan on one side, and on the other, joining a conference that has Russia and China at the helm. The alliance with the U.S. and Japan is yet to be spelt out, but it is clear from the Indo-U.S. joint vision statement of 2015 that Mr. Modi now envisages closer military cooperation with the U.S., and as a corollary its allies, both in the seas and on its military bases, airspace and cyber centres as well. Of particular importance will be the lines in the joint vision statement for Asia-Pacific and the Indian Ocean region, signed by Mr. Modi and President Obama last year, on “ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea”.   Clashing terms of engagement What SCO membership for India entails? The 2001 declaration on the establishment of the SCO clearly states that its aim is “jointly preserving and safeguarding regional peace, security and stability; and establishing a democratic, fair and rational new international political and economic order”. Analysts have always believed that the reference to the “new order” juxtaposes the Eurasian SCO as a counterpoint to the transatlantic North Atlantic Treaty Organisation. It was further spelt out vividly at the Astana SCO summit declaration in 2005, a summit in which India, Pakistan and Iran were admitted as observer countries. At Astana the members formulated joint mechanisms for regional security, joint planning and conduct of anti-terror activities, and jointly contributing to security issues “on land, at sea, in air space and in outer space”. The SCO also has a formulation on ‘Asia Pacific’, with members making a declaration “against fault lines appearing both in the Asia Pacific region and in its separate constituent parts”.   The issue: confusing concept called NAM India’s clear adherence to the terms spelt out above (in both the western and eastern alliances) would be absurd, as they could conceivably see the Indian Navy in joint patrol with the U.S. and its allies, challenging China in the South China Sea, even as it cooperates with China and Russia to counter U.S.-backed forces across the “fault lines”. Equally strange is the possible vision of the future this brings: one of India discussing nuclear safety and non-proliferation on an equal footing with known proliferator Pakistan at the NSG, and also sharing counter-terror operations with it as part of the SCO’s Regional Anti-Terrorist Structure (RATS). Conclusion: In this scenario, NAM, with its inherent confusion and often “lip service-only commitment” to neutrality, is not desirable. The next host of the NAM summit, Venezuela, has not been able to declare a date for the summit. This gives the Modi government some time to consider their position. India boasts itself of being the leader of NAM and non-alignment as “India’s heritage”. Given the stormy waters and multiple criss-crossing alignments India now envisions, NAM may be a safer shore for India’s future as well. It is vital that the Modi government clearly defines the NAM policy and its position in the upcoming NAM summit. Connecting the dots: India’s NAM policy is often criticized, by both of its western and eastern alliances, as confusing and a mere “lip service-only commitment” to neutrality. Critically comment. Is Non-Alignment Policy still relevant for India in the present changing global context and conditions? Elucidate on your view.   ECONOMICS   TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation; Governance issues Welfare schemes for vulnerable sections by the Centre and State and the Performance of these schemes; Mechanisms, laws, institutions constituted for protection and betterment of these vulnerable sections General Studies 3 Indian Economy and issues relating to mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.   A stitch in time for a rise in India’s Employment numbers Why is there a need for an increase in employment opportunities for India— Growth in industrial and service sector jobs is of utmost importance for the demographic dividend to exist positively & profitably Inter-related: As jobs grow, incomes rise and so do savings Based on higher savings, the investment rate to GDP grows, resulting in faster GDP growth Creation of new non-agricultural jobs: Job growth leads to an increase in consumer demand which has the effect of sustaining GDP growth and reducing volatility in the output growth rate Have the potential for broader social transformation Apparel/garment sector—an excellent vehicle for an employment creation strategy Has always been on a high priority as visible by almost all the successful economic growth take-off in post-war history in East Asia— rapid expansion in apparel exports in the early stages and thus, registering apparel export growth in excess of 20 per cent per year, sometimes closer to 50 per cent High labour intensity Every unit of investment in clothing generates 12 times as many jobs as that in autos and nearly 30 times that in steel World Bank employment elasticities estimates that rapid export growth could generate about half a million additional direct jobs every year Social transformation—Women Generate large number of jobs for women— Highest amongst all sectors Increased decision-making power as they are more financially empowered Increased support by husbands is doing basic household activities Provide boost to the low and declining female labour force participation Bangladesh: Female education, total fertility rates, and women’s labour force participation moved positively Shrinking window of opportunity in the global order: Window of opportunity: Provided by China due to the rising wage levels—led to the loss of market share of China— evidence of deteriorating competitiveness Why is India best positioned to benefit from China’s woes— Wage costs in most Indian states are significantly lower than in China Reality— Bangladesh and Vietnam have overtaken Indian apparel exports, rushing with full speed to fill the space vacated by China   Why is India losing out? Better market access for the competitors— By way of zero or lower tariffs to the two major importing markets (US and Europe) Average tariffs faced by India and its competitors in the US and EU: EU: Bangladesh’s exports enter mostly duty free while Indian exports face an average tariff of 9.2 per cent EU-Vietnam & Trans-Pacific Partnership if comes into existence— India will be majorly disadvantaged while Vietnam will enjoy duty-free access Solution: Reduce tariffs and import barriers To ease access to manmade fibres — such as more transparency for duty drawback schemes and bonded warehouses Removing anti-dumping duties on manmade fibres Lower excise taxes or provide other incentives to develop a domestic man-made fibre industry Promote foreign investment Move quickly to ease barriers to the import of manmade fibres Facilitate market access & encourage foreign investment to reach more end markets, which would also yield dividends for other light manufacturers like footwear and toys Connect Globally: Look at ways to help its apparel sector connect to global value chains (where production processes are situated in different countries). Consider joining mega free trade agreements such as the Trans-Pacific Partnership to get preferential access to huge and lucrative markets such as the U.S. Domestic Challenges— Logistics Costs: High costs and longer time involved in getting goods from factory to destination Very few large containers come to Indian ports to take cargo— which means that the frequency of trans-shipment through Colombo is very high— extra travel costs proving to be a disruption in flexibility for manufacturers Solution: Could shorten lead times by using industrial parks to provide better infrastructure Port development and National Waterways development— impetus to Make In India and blue economy under the Union Government’s ambitious Sagarmala Project emphasizing on port-led development Increase port capacity with the help of private companies Sagarmala Project: To develop port infrastructure in India that results in quick, efficient and cost-effective transport to and from ports It also includes establishment of rail / road linkages with the port terminals, thus providing last mile connectivity to ports; development of linkages with new regions, enhanced multi-modal connectivity including rail, inland water, coastal and road services. Labour costs: Regulations on minimum overtime pay Onerous contributions that become de facto taxes for low paid workers Lack of flexibility in part-time work High minimum wages Smaller size of the Indian apparel firms compared to firms in China and Bangladesh Solution: Ease labour norms Take advantage of economies of scale with less complex labour policies Promote foreign investment for apparel by adopting clear and transparent policies on foreign ownership (already in place for textiles) and within Export Promotion Zones Shift in the world-demand towards clothing based on man-made fibres Indian domestic tax policy favours cotton-based production Man-made fibre sector is highly inefficient (financially as well as technologically)   Policy road-map by the Government: Provision of relief to offset the impact of state taxes embedded in exports (could be as high as about 5 per cent of the exports) Not a subsidy but a drawback scheme Should be WTO-consistent because it offsets taxes on exports Provision of subsidy for increasing employment: Contribution of government towards the employers’ 12 per cent contribution to the EPF To provide an advantageous position for the Indian exporters in the foreign markets: More emphasis on new free trade agreements while weighing the pros and cons of it IASbaba’s Views: Government needs to not only focus on skill enhancement and flexible labour markets but also conduct an assessment of Proper enforcement of the laws Situation of different categories of employers Coverage of the social protection system Labour-intensive industrialization carries the potential to break the cycle of distress and therefore, more efforts needs to be taken for building up on a consensus-derived decision by taking the trade unions as well as the State government into confidence. Need to encourage industry-academia collaborations to understand innovation requirements better— Funds should be attracted from private sector to support research at academic and research & development (R&D) institutions   MUST READ Limits of the big freeze Hindu   The 10-crore rollback Hindu   Lessons for India in Thailand’s experience on universal healthcare Indian Express Related Articles: A case of public health in India Healthcare Funding Mind Map – UHC   Why rail budget Indian Express Related Articles: Rail Budget 2016-17 – Mind Map TLP – 2016 TLP – 2016   Why we need to change how elections are held Livemint Related Articles: Are simultaneous elections to Panchayat, Assembly and Lok Sabha feasible? The Big Picture – Simultaneous Elections: Is it Legally and Practically Possible?   Shift the reform debate to states Livemint   Pitfalls in taxing the digital economy Business Line   China’s inexplicable Nepal rail project Business Line MIND MAPS   1. Feasibility of Simultaneous Polls - II

Jun 23, 2016 AIR

All India Radio - Rising Prices of Essential Commodities

ARCHIVES Rising Prices of Essential Commodities   Increase in demand has been observed due to higher rural wages, rising agricultural cost of production, change in consumption pattern favouring imported items, increase in MSP and draught which has resulted inhigh food inflation. The cost of food increased to 7.55% due to ballistic price rise of essential food items. (Price of Tomato skyrocketed to Rs. 85/kg from Rs. 15/kg in 5 days). It is a matter of concern because an inflation burst trend has been observed for past 3-4 years during months of May, June and July, yet hardly time-bound actions are taken beforehand inspite of prior information as well as food inflation tackling mechanism. Contributions to present food inflation are Environmental changes: Random changes in environment not only due to climate change but also others like unseasonal rainfall, draught conditions etc. affects the raw food market as well as manufacturing industries that use food products as raw materials. Inadequate storage facilities: Lack of warehouses and godowns, cold storage infrastructure. Traditional working of FCI has resulted into unaccounted transmission losses, food spoilages etc. Mandis are also causing high prices. Increased fuel prices: Recent OPEC have increased fuel prices by decreasing production to capture market. This has resulted in falling of rupee and impounding prices and has also a direct impact on food. (Food is transported interstate through railways and roadways and thus has effect of rising oil prices.) Hoarding: Trend of increased food costs indulge traders and merchants to resort to hoarding, thereby creating artificial food scarcity. However, they also having lack of storage facilities and constant weather changes result in decrease in their perishable food stock. This further increases their demand which fuels further price rise. Limited Mandis: They are less in number and controlled by few rich agricultural producers. They resort to monopolistic behaviour and thus rack up the prices. Also, mandis need large spaces, transport linkages which creates adversaries for their proliferation. Rise in per capita income due to increased salaries in last decade (2005-2010) was supported by market availabilities of high-end products. This inflated the inflation more. Though income hikes have cooled down, the inflation persists. High demand of organic food, especially in European countries. However, they have smaller shelf-life and lack of storage facilities which has raised their prices higher. This leads to costly domestic food production. Thus, imported inorganic food items have found market place in India. Increased middlemen: The dominance of middlemen who eat away huge part of farmer’s income and also charge more from consumers has made essential food items and also other products costly. A recent UNEP study presented that food inflation can sink entire economy. India and China are global leaders in food production accounting one-third market in cereals, oil, sugar and wheat. Thus, any rise in food prices threatens their domestic economy. Earlier in 1990s, UN and FAO expressed their concerns about food security due to food inflation because of USSR disintegration, many wars etc. Agrarian land found no takers in Europe due to less profitability which saw decrease in agricultural population to 3-5% from 25-30%.  This was despite the 300% agricultural subsidies given for agricultural production. Today, India houses 70% in agricultural producers. Shut down of MNCs in past 10-12 years, large agricultural farmland owners venturing into agro-food industry, recession redirected many back to India. Now, India produces organic as well as inorganic food due to technology, availability of funding and government support. Hence, what was a food security threat in 1960s has converted to food security assurance currently. Way forward: Improved infrastructure: Better transportation and storage, check on hoarding and use of technology can bring inflation down by 3 basis points to around 4.5% in a fortnight. The need of the hour is government’s ‘blinkered focus’ to utilise available resources to relieve pressure of the hard hit consumers. Increase in agriculture markets: Encouraging increased cooperative farming and mechanisms such as credit cards to provide timely and adequate credit. The international oil prices are expected to come down in future India has sufficient foreign exchange which needs to be used during such distress times. The reserves are to cater to hurting poor consumers and not to be decorated in bank vaults during desperate times. Bypassing middlemen through increased use of technology (E-mandis) where farmers bring produce to the market directly. Use of mobile as medium of information sharing and gateway to independent markets. Pro-active government approach to identify and arrest hoarders who artificially distort market balance. Changing cropping pattern: High time now to introduce farm friendly and consumer demanded food crops than export oriented crop production. Increased use of soil health cards Search 15th June http://newsonair.com/Main_Audio_Bulletins_Search.aspx

Jun 22, 2016 60 Days Plan 2019 - Daily Prelims Test

IASbaba ’60 Day Plan- Prelims Test 2016 ECONOMICS & CURRENT AFFAIRS [DAY 33]

Click here to get all the Tests– Archives Hello Friends Hope you are enjoying Daily questions. The link for Day 32 solution is active now.  Why we asked you to comment? Now go back to check your answers that you posted with honest effort. Edit your answers with marks. Everyday like this you can self monitor your progress for all 60 days. Accountability to self is the only way for success IASbaba '60 Day Plan' - Prelims Test 2016 [Day 33] Q.1) Which of the following is incorrectly matched? a) Tax administration reforms commission – Justice Ashok Kumar Mathur b) Expenditure Management Commission – Bimal Jalan c) Committee to simplify Income Tax laws – Justice R V Easwar d) FRBM review panel – N K Singh Q.2) The GST Council will be the body that decides which taxes levied by the Centre, States and local bodies will go into the GST. Who among the following are members of GST Council? Union Minister of Finance Minister of Finance of each state Union Minister of state for Finance Chief Economic Advisor to Minister of Finance Governor of RBI Select the correct answer a) 1, 2 and 4 only b) 1, 2, and 3 only c) 1, 2, 3 and 5 only d) All of the above  Q.3) Consider the following about Gold Monetization Scheme. The designated banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit as well as Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes. Both principal and interest to be paid to the depositors of gold, will be ‘valued’ in gold. Customer will have the choice to take cash or gold on redemption, but the preference has to be stated at the time of deposit. The interest rate is decided by the banks concerned. Select the correct answer a) 1 and 2 only b) 1, 2 and 3 only c) 1, 3 and 4 only d) All of the above Q.4) Which of following qualify as measures taken to curb tax evasion and black money by government? Income Disclosure Scheme of 2016 Amendment to DTAA with Mauritius Place of Effective Management Rule to applicable Undisclosed foreign income and assets act 2015 Select the correct answer a) 1, 2 and 3 only b) 1, 2 and 4 only c) 1, 3 and 4 only d) All of the above Q.5) Consider the following.  Controller General of Accounts is part of Department of Revenue and prepares the appropriation bill. CGA is head of Indian Civil Accounts Service and administers it. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.6) Consider the following. Ideally custom duties should be high on raw material import and low on export for a country like India. Similarly custom duties should be high on finished goods exports and low on import in line with Make in India initiative. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.7) Consider the following.  The Krishi Kalyan Cess and Swachch Bharat Cess are applicable on RBI and Postal services but not on government insurance schemes for social sector. Krishi Kalyan Cess and Swachch Bharat Cess proceeds are part of Consolidated Fund of India and will be part of the shareable tax pool as per the recommendation of the Tax Administration reform Council 2015-16. Select the correct answer: a) 1 only b) 2 only c) Both 1 and 2 d) None of the above Q.8) Consider the following about revenue and capital receipts.  Interest receipts, dividends and profits are parts of revenue receipts. Article 112 of the constitution mandates expenditure is shown in revenue and other categories. Plan- Non Plan expenditure segregation has been constitutionally mandated and needs an amendment to be removed. Disinvestment proceeds are part of capital receipts. Select the correct answer a) 1 and 2 only b) 1, 2 and 3 only c) 1, 2 and 4 only d) All of the above Q.9) Which of the following is incorrect w.r.t Ways and Means Advances (WMAs)?  a) RBI provides 2 types of WMAs to state governments one with and another without collaterals. b) WMAs given by RBI to government of India do not require any collateral. c) Replacement of adhoc bills with WMAs represents an advance in fiscal discipline and harmonization of fiscal and monetary policies. d) WMAs are made at Repo rate. Q.10) Which of the following is correct debt? a) The union government borrows directly from international capital markets with the help of debt management agencies. b) Small savings and provident funds are part of other liabilities. c) Dated securities as part of market borrowings are issued by union governments as T-bills with 14 days, 91days, 182days maturity. d) Public debt means only internal debt and other liabilities but not external debt. Q.11) Which of the following recommendations of 14th Finance Commission regarding tax Devolution are accepted by the Government? States’Share in the net proceeds of Union tax revenues increased to 42% from 32% earlier. Sharing pattern under various CSS to undergo a change, with States sharing higher fiscal responsibility for scheme implementation. Distribution of grants to States for local bodies based on 2011 population data (90%weight) and area (10%weight). Revenue compensation to States under GST should be for five years;100% in first three years, 75% in fourth year and 50% in fifth year. Select the code from the following: a) 1,2 and 3 b) 2,3 and 4 c) 1,3 and 4 d) All of the above  Q.12) Consider the following statements regarding ‘Financial Stability’: Financial stability could be defined as a situation in which the financial sector provides critical services to the real economy without any discontinuity. Financial Stability report is published every year by Ministry of Finance. Financial stability is an important aspect of the Monetary Policy of India. Which of the above statements are correct? a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.13) Volume two of Economic Survey talks about a ‘Chakravyuh’ problem of Indian economy. Which of the following does ‘Chakravyuh’ refers to? a) Vicious cycle of poverty and lack of capital b) Over dependence of economy on Foreign Direct investment c) Lack of clear exit policy for companies d) Conflict between economic growth and inflation Q.14) Consider the following Statements regarding ‘Gyan Sangam’ summit: It was a meeting organized by Ministry of Finance and RBI with central banks of Tax haven countries to find a method to recover black money which is tapped outside. It is a forum where the highest officials from public sector banks, the government and the Reserve Bank of India, meet to discuss issues faced by the sector. Focus was discussion on bank consolidation, NPAs and carrying out changes to recovery laws. Which of the above statements are correct? a) 1 only b) 2 and 3 c) 1 and 3 d) None of the above Q.15) SARFAESI Act refers to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for bad loans (NPA) recovery. Which of the following statements are correct about this act? Upon loan default, banks can seize the securities (except agricultural land) without intervention of the court. Court intervention is not required only in case of secured loans where bank can enforce the underlying security eg hypothecation, pledge and mortgages. If the asset in question is an unsecured asset, the bank would have to move the court to file civil case against the defaulters. Select the code from the following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.16) Which of the following regarding ‘Tax Buoyancy’ are correct:  Tax buoyancy explains this relationship between the changes in government’s tax revenue growth and the changes in GDP. When a tax is buoyant, its revenue increases without increasing the tax rate Select the code from below: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2  Q.17) Which of the following statements are correct regarding ‘Pigovian’ Tax? A Pigovian tax is a tax levied on any market activity that generates negative externalities. It is often levied on companies that pollute the environment or create excess social costs. A type of a Pigovian tax is a "sin tax", which is a special tax on tobacco products and alcohol. Select the code from the following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.18) NITI Aayog has replaced the older planning commission. Which of the following points differentiates NITI aayog from Planning Commission?  NITI Aayog is an advisory body while Planning Commission’s recommendations were binding. State representatives were not there in Planning Commission while NITI Aayog has included Chief Ministers of all states as well as administrators of UTs. The provision of regional council is there in Niti Ayog to address local / regional development issues. Select the code from the following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above  Q.19) Consider the following statements regarding subsidies in current fiscal year: Subsidies on food, fertiliser and petroleum have been pegged higher by over 4 per cent. The deregulation of diesel price, along with the introduction of direct benefit (subsidy) transfer into the bank accounts of domestic LPG consumers, coupled with a sharp decline in global crude oil prices has helped containing the petroleum subsidy bill. Which of the above statements are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.20) Which of the following statement are the recommendation of Tax Administration Reforms Commission? A minimum of 10% of the tax administration’s budget must be spent on taxpayer services. Pre-filled tax returns should be provided to all individuals.  The taxpayer will have the option of accepting the tax return or modifying it. CBDT and CBEC should be fully integrated under Central Board of Direct and Indirect Taxes. The Permanent Account Number (PAN) should be developed as a Common Business Identification Number (CBIN), to be used by other departments such as customs, excise, etc. Select the code from the following: a) 1,3 and 4 b) 3 and 4 c) 1,2 and 3 d) All of the above Q.21) Consider the following statements with respect to cryogenic engine In Cryogenic engine its fuel or oxidizer (or both) are gases liquefied and are stored at very low temperatures. Combination of liquid hydrogen (LH2) fuel and the liquid oxygen (LOX) oxidizer is one of the most widely used fuels in the rocket Select the correct option a) 1 only b) 2 only c) Both d) None Q.22) Consider the following statements with respect to GAGAN satellite a) It is used for telemedicine in rural areas b) It is used to provide live streaming of classes from top Indian universities c) It is used to provide navigation facilities for civil aviation d) It is used for rain and whether forecasting  Q.23) Consider the following Chandrayaan 1 Mars orbiter mission Space capsule recovery experiment Which of the above space missions are launched using PSLV launch vehicle? a) 1 &3 only b) 1&2 only c) 2&3 only d) All Q.24) Consider the following statements with respect to IRNSS (Indian regional navigation satellite system) It provide accurate position information service to users in India as well as the region extending up to 1500 km from its boundary IRNSS will provide two types of services namely, Standard Positioning Service (SPS) and Restricted Service (RS) to all users Select the correct answer a) 1 only b) 2 only c) Both d) None Q.25) Consider the following statements with respect to ISRO (Indian space research organisation) ISRO is the space agency of the Indian government headquartered at Sri Hari Kota "Space technology in the Service of humankind." is the motto of ISRO Select the correct option a) 1 only b) 2 only c) Both d) None Download the Solution- Click here P.S- Attempt these questions within 20 minutes with full honesty and write your results in the comment box. Next day, come back and check your result. You can also discuss the important concepts and issues, in case of doubts (among peers) All the best IASbaba

Jun 22, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 22nd June, 2016

Archives   IASbaba’s Daily Current Affairs – 22nd June, 2016   ECONOMICS   TOPIC: General Studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth. Investment models   The FDI Story Statistics: FDI inflows into India rose to $55.46 billion in 2015-16 from $36.04 billion two years ago— FDI into the country has been going up steadily The top five sectors — services, construction, computer software and hardware, telecom and automobiles- accounts for a 45 per cent FDI share FDI Liberalization Easing entry of FDI: Government has taken a bold step in liberalising the foreign direct investment norms in nine key sectors (used to account 11 per cent of the total FDI received by India)— opens up the country to the global world Ease of Doing Business staying true to its name: Boosting the economic growth More investments have been brought under the automatic route— will not entail prior approval Reduced bureaucratic discretion—Creation of an enabling environment Promises of Policy certainty— improve investor sentiment Creation of more jobs Big mind-set shift: The move to prescribe a small negative list for FDI with most sectors under the automatic route (Coverage in point format)   Defence— Present: Permitted foreign companies to own 49% in Indian units through the automatic approval route Previously foreign OEMs (original equipment manufacturers) were required to form joint ventures with domestic firms if they wanted to establish a manufacturing base in India (an OEM can now independently plan and implement operations in India) Changes: Allowed foreign companies to own as much as 100% equity in the local defence sector through the government approval route Applicable to manufacturing of small arms and ammunitions covered under Arms Act 1959 The condition of access to ‘state-of-art’ technology in the country has been done away with Implications: Provides global OEMs (original equipment manufacturers) strong incentive to establish substantial local manufacturing in India – With 60% of India’s defence requirements met through imports, local defence production is at the heart of the Make in India programme Increase in Joint ventures— lack of expertise can be tackled with More sense of ownership— encourage foreign defence equipment makers to open production centres leading to widening of the vendor base for local companies, increasing competition among suppliers for business, and better compliance with offset obligations Will help to allay fears on technology transfer Foreign players will be able to develop a local vendor base, with or without Indian partners Ensure availability of cutting edge technologies for the defence forces Boost to local manufacturing Assured returns for international OEMs Enhanced R&D to develop and deploy solutions catering specifically to the country’s security needs Removal of procedural hurdles: Removing the burden to prove the product/ technology as modern and state of the art Flexibility in examining proposals and giving approvals quickly— allow the government to look at proposals at more proactive basis Concerns: Need to inject in a smooth process of an approval system Revenue front should be taken into account at every step More clarity on the issue if government will source from them Highly regulated export of defence items from India   Pharmaceuticals— Present: allowed 100% FDI under the automatic route in green-field pharma (projects built from scratch) and up to 100% FDI in brownfield pharma projects under the government approval route Changes: allowed up to 74% FDI under the automatic route for investments in brownfield pharmaceutical projects with investments beyond 74% under the approval route Implications: Boost mergers and acquisitions (M&As) and private equity investments in the sector in future Small and mid-sized companies may see more interest both from promoters and buyers More clarity over ownership and removal of uncertainty High margins owing to the low cost of production in India— will increase the number and size of deals Incidences of international players getting into a partnership with local partners— a welcome change for global pharma players looking at establishing a presence in India but not looking for a 100% stake Stimulate more M&A and investment in CRAMS (Contract Research and Manufacturing Services) Concerns: The limit could have been increased to 100% instead of 74% Need to streamline regulations, particularly Drug Price Control Orders (DPCO) Government should also take care of the following: Price control mechanisms Increasing use of compulsory licensing The perception of an unfavourable regime for protection of intellectual property rights in India   Civil Aviation— Present: Up to 49% FDI is allowed under the automatic route in domestic airlines (scheduled air transport service/ domestic scheduled passenger airline and regional air transport service) The extant FDI policy on airports permits 100% FDI under automatic route in green-field projects and 74% FDI in brownfield projects under automatic route. FDI beyond 74% for brownfield projects is under government route Changes: Allow overseas entities—excluding airlines—to own 100% in domestic airlines; with FDI up to 49% permitted under automatic route and FDI beyond 49% through government approval. For NRIs (non-resident Indians), 100% FDI will continue to be allowed under automatic route Investment by foreign airlines in domestic airlines will, however, be limited to 49% of paid-up capital Allowed 100% FDI under the automatic route in the brownfield airport projects (existing facilities requiring expansion and refurbishment)with the aim of modernize existing airports As equity holding of foreign airlines is still limited to 49%, a foreign airline can join hands with its sovereign fund or private investors and set up a 100% foreign-owned airline in India Implications: Incoming of more funds Modernization of existing airports—more upgradation of airport infrastructure is to make operations viable Expansion in their fleet Increase in competition will bring down prices and enhance air penetration in India—both international and domestic Enhanced valuations— when raising funds or going for partial or complete divestment Inclusion of best practices Support initial public offerings without worrying about foreigner ownership limits Foreign airlines can now focus on the customers and competition rather than wasting time on legal and regulatory issues Value being given to market forces— while the government keeping its concerns limited to issues like aviation safety, security and consumer interests Concerns: The 49% FDI still remains under-utilized Issue of Indian promoters giving up too much stake and when things go bad, foreign investors not finding such investments attractive to be a part of Government should additionally also take up measures for Reducing cost of doing business like rationalisation of input costs Providing relaxation to existing airlines in other rules (on directors, route dispersal norms, minimum domestic flying, on grandfathered schedules and routes, crew flying permits, among others) to attract foreign capital Restructuring of AAI— critical to allow long-term capital flows   Broadcast— Present: Need for prior approval of foreign investment in the broadcasting sector Investments were subject to approval from the Foreign Investment Promotion Board (FIPB)   Changes: Allowed 100% FDI via automatic route for broadcasting carriage services— direct-to-home (DTH) TV operators, cable network companies and mobile television firms to raise 100% FDI under the automatic route   Single-brand retail— Present: companies opening wholly-owned stores in India were required to comply with the local sourcing norms of 30% within five years of their first store opening   Changes: Government has made it easier for single brand retailers to setup operations in the country with an extended window of eight years before the application of the local sourcing norms come into play (firms with state-of-the-art and cutting- edge technology) Limited the exemption to three years for entities undertaking single brand retail trading and seeking exemption from local sourcing norms — get a waiver only for three years along with a relaxed sourcing regime for five more years (to encourage such manufacturers to source from India) Made it easier for retailers setting up under 100% single brand policy 100% FDI under approval route for trading, including through e-commerce for food products manufactured or produced in India (as announced in the Budget as well)   Implications: Setback for the companies in the technology space— were hoping for a complete waiver on the grounds that the products proposed to be sold involved state of the art technology Companies manufacturing food products in India will be allowed to set up retail stores and even have e-commerce operations w.r.t. the items manufactured in India— a progressive step as companies like Wal-Mart Inc which have cash and carry wholesale operations and are ruled by the multi-brand retail policy— will readily consider food retail in India   Concerns: Tough regulatory environment Image Courtesy: http://www.livemint.com/r/LiveMint/Period2/2016/06/21/Photos/Processed/web_fdi.jpg NATIONAL/POLITY   Topic: General Studies 2 Parliament and State Legislatures - structure, functioning, conduct of business, powers & privileges and issues arising out of these. Salient features of the Representation of People’s Act   Revisiting the role of Rajya Sabha The Parliament of India consists of President, Council of states (RS) and House of People (LS). At present Rajya Sabha has a strength of 245 members (States – 229; UTs – 4; Nominated – 12). Every second year one third of its members retire and fresh elections are conducted for vacant seats. The upper house also called second chamber or House of elders represents the states and union territories.   Rajya Sabha has been created with the following objectives. To maintain federal equilibrium by protecting the interests of the states against the undue interference of the centre. To facilitate giving representation to eminent professionals and experts who cannot face direct elections. To check the hasty, defective and ill-considered legislation made by Lok Sabha.   Vision of founding fathers The vision of founding fathers of our constitution can be traced in Constituent Assembly (CA) debates. Following are the views and ambitions put out by various leaders or the way in which they saw this institution. A house of reflective and evaluative reasoning, “The genius of people may have full play” and it can be make place for “who may not be able to win the popular mandate”. “A sobering house, a reviewing house, a house standing for quality and members will be exercising their right to be heard on the merits of what they say, for the sobriety and the knowledge of special problems” To initiate proposals for public policy, to elicit responsiveness from public authority, and to hold governments accountable. The house is seen as an authoritative platform to accommodate diversity, which is an essential ingredient.   Whether Rajya Sabha has lived up to the expectations? In several occasions Rajya Sabha proved its merits in Indian polity, where it has acted as an important platform of resistance to the majority rule in Lok Sabha. But also the performance of this institution has been criticized for many reasons which include – Blocking and delaying of key legislations for purely political reasons – Back door entry for those who cannot win the elections. Corruption in the election of members to this house (Magnified recently) and Tendency of political parties to pack the house with their high and mighties without consideration to their being worthy or not to play the representative role. Majoritarian rule of the Lok Sabha since 1970 till present. Increased cost of legislation. Some instances of resistance to the legislation of LS can be remembered here. Prevention of Terrorism Bill in 2002 (Bill defeated in RS and passed in Joint sitting (JS)). Two other cases where bills passed in JS are ‘Dowry prohibition bill 1960’ and ‘ Banking service commission (Repeal) bill 1977’ Corruption charges against the government during 2011­14, and The proposed amendment to the Land Acquisition, Rehabilitation and Resettlement Act in 2015. Such instances may lead to a perception that, the electoral victory to the lower House may entitle a party to rule but not necessarily govern unless it reaches out and engages with the central concerns and interests embedded in the polity. What Powers Rajya Sabha have? Following are some of the exclusive powers of RS Power to transfer a subject from the State List to Union List for a specified period (A-249) Create additional All­India Services common to both the centre and states (A-312), Endorse Emergency under Article 352 for a limited period when the Lok Sabha remains dissolved. Equal status with lok sabha in matters of Ordinary bills, Constitutional amendment bills, election and removal of various constitutional heads etc. Unequal status with lok sabha in matters of Money bill, Joint sitting, emergency provisions, disproportionate share in various committees. In 2006, Supreme court upheld the removal of domicile requirement mandated by RPI Act 1951. This is seen as a great hit to the mark of diversity that was the hall mark of this house.   How Rajya Sabha should be? It should be the voice of sanity, of the excluded and of citizen’s rights. It should ensure that the majoritarian thrust of the lower house does not undermine rule of law and public institutions. It should preserve the essence of diverse representation (which seems to be diminishing after 2006 SC verdict). Observing the sorry state of affairs in the recent elections in which saw the money game and dirty politics, there are genuine worries about credibility of this institution. Hence it is felt that, the nature and role of RS should be revisited, rather than merely think it as the parking lot for those who cannot ensure their election from a popular constituency.   Way Ahead: Rajya Sabha could be the House that represents difference in our polity, difference marked not merely by its culture but its diversity but also in its inegalitarian social relations. The representation of constituencies like: Muslims; women; Linguistic, religious and ethnic diversity; regions such as the Northeast and Jammu & Kashmir; Urban informal labour; the rural poor etc., who cannot go for direct elections must be ensured. Connecting the dots: “Rajya Sabha has turned out to be another chamber of the parliament akin to the lok sabha, except for the mode of selection of its members”. Evaluate.   Also Read- Rajya Sabha and Bad Monsoon memories MUST READ The mat goes mainstream Hindu   Banking revival must be a priority Hindu   Potential impact of model GST law Livemint Related Articles: http://iasbaba.com/2015/11/iasbabas-daily-current-affairs-12th-november-2015/ http://iasbaba.com/2015/09/q-9-how-is-gst-different-from-vat-what-is-the-grand-bargain-suggested-by-the-13th-finance-commission-for-the-implementation-of-gst/ http://iasbaba.com/2015/07/iasbabas-daily-current-affairs-18th-july-2015/ http://iasbaba.com/2016/03/big-picture-gst-bill-still-not-passed/   FDI liberalization is one part of the puzzle Livemint Related Articles: Welcome FDI push   Five charts on the state of India’s housing sector Livemint Related Articles: City infrastructure: With a multifaceted approach we can afford the ‘Housing for All’ dream The Real Estate Bill All India Radio – Issues Relating to Real Estate Sector   The permanence of temporary workers Business Line   Kabul’s doors are closing on Pakistan Business Line MINDS MAPS   1. Feasibility of Simultaneous Polls - I  

Jun 21, 2016 IASbaba's Daily Current Affairs

IASbaba’s Daily Current Affairs – 21st June, 2016

Archives   IASbaba’s Daily Current Affairs – 21st June, 2016   ECONOMICS   TOPIC: General studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Issues relating to development and management of Social Sector or Services relating to Health, Education, Human Resources General studies 3 Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment   The India Labour and Employment Report 2016 Indian labour market— Organized Sector (only 17% of total employment): Regular formal employment (9%): Contractual, with full protection of labour rights, high wages and perks Regular but informal employment: No full contractual protection of labour rights and lower wages Casual employment: Higher underemployment or fewer days of actual available work per worker (Can you identify the segregation both in the unorganised as well as across different sectors in the economy?) Statistically: Self-employment, and casual wage employment, the bottom layers of the labour market, still account for 78% of total employment Low-productivity employment in agriculture still accounts for 43% of total employment High incidence of underemployment High incidence of poverty— India still accounts for the largest number of the world’s poor in absolute numbers. Unemployment number: 13 million people in the workforce, available for work but presently unemployed—30% of them women 52 million people, 65% of them women— “disguised unemployment” 52 million, all women, who are not in the labour force but would be available for work if there were adequate opportunities for productive employment 117 million people, 78% of them women— need to be absorbed into new and more productive jobs 6-8 million young people who will be entering the labour force each year for the next decade   Significant improvement in the employment conditions High growth elasticity of employment at 0.7 Aggressive growth of employment in the organized sector Movement to better-quality jobs: from informal to formal, casual to regular, and from the unorganized sector to the organized sector Rise in real wages Decrease in underemployment— faster rise in income per worker than real wages, (lowered poverty incidence) Rise in productivity (all sectors—faster in the unorganized sector) Decline in the dualism—the differences in productivity and real wages between the organized and unorganized sectors   Demolition of myths and misconceptions Presence in the labour force of the country The labour force participation rate (LFPR) measures the proportion of people in the working-age group who are actually available for work Not all people in the working age population are in the labour force— At present (2015-16) India has a stock of 511 million workers— 38 million subsidiary (part-time) workers 39 million elderly workers About 2 million child workers But core workforce of 433 million— 22% are women Rate of labour force growth The stock is growing at 1.5% per year, adding about 5.5 million people to the workforce every year (lower than the growth rate witnessed at the end of the 20th century)— Declining population since 1980s Declining incidences of child labour & the elderly Drop in labour force participation in the working-age group among women Increasing preference of higher education in men Declining poverty is leading to less number of women and child labour to become a part of the country’s labour 3. Decline in the women’s labour force participation (lowest in the world) Trend: Declined the most among the poorest households & illiterate/least educated (decline in poverty—no need to take up jobs that are not paid properly and are least in quality) Increased in the case of better-off households & with higher levels of education 4. Rise in the Dependency Ratio— No demographic dividend Increase in the share of the young in the working-age population Decline in the share of the young who are actually in the workforce   (Henceforth, we are providing a list of initiatives to ‘READ UP’— will be useful for preparation from Prelims P.O.V) Policy Suggestions— India’s growth has to be led by manufacturing, not services Employment elasticity is higher in manufacturing Lack of education in a large section of the labour force Difficulty in skilling them— lack of basic education Easy absorption in low-skill jobs in the manufacturing sector Urgency of education policy reform An underlying foundation of basic education is important for any kind of job as well as skilling people Compromised quality of education at the primary level limits the access to basic education Read up: Digital Gender Atlas, National Scholarship Portal, Beti Bachao Beti Padhao, No detention Policy, Geeta Bhukkal Committee Report, Devnani Committee Report Need for Vocational Education Effective way of developing skills for improving the employability of the population Shatter the perception of vocational education being a low-paying and not a respectable job Read up: NSDC, NSQF, NSDM, STAR Scheme, NAP for skill training, ITE concept of vocational training, PMKVY, DDU-GKY Reforms in the Labour Market To catalyse job creation and ensuring ease of doing business in the country Promote compliance; multiplicity of it is the largest impediment of industrial development Safeguard safety, health and social security of all workers To break the cycle of distress— labour-intensive industrialization Read up: The Payment of Bonus (Amendment) Act 2015, National Career Services Portal, Shram Suvidha Portal, Universal Account Number, Pradhan Mantri Rojgar Protsahan Yojana, Changes in the Minimum Wages to contract workers & Contract Labour Act, National Social Security Authority, Release methodology of Employment Data, Industrial Relations Bill, Bonus Act, Child Labour (Protection and Regulation) Amendment Bill, The Small Factories (Regulation of Employment and Conditions of Services) Bill   Connecting the Dots: Discuss the reasons behind low LFPR. What has the Indian government done to arrest the same? What are the serious impediments that bleak the possibility of a proper labour framework to be developed for India? Suggest the way ahead   Must Read: Jobs & Economic Growth Labour law reforms   Women at Work http://iasbaba.com/2016/01/iasbabas-daily-current-affairs-14th-january-2016/ http://iasbaba.com/wp-content/uploads/2016/04/Unemployment-Stagnant-Economy-IASBaba.jpg   NATIONAL TOPIC: General Studies 2 Issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Statutory, regulatory and various quasi-judicial bodies Important aspects of governance, transparency and accountability   Local Self Government: The true devolution of power The desire of Maharashtra government to be in the forefront among business friendly states (8th in World bank’s ranking) to implement central government’s big ticket schemes (Smart cities, AMRUT, Housing for all etc.,) has come at the expense of constitutional responsibility to strengthen local governance. The State’s priorities towards the implementation these schemes demands greater revenue generation and sustained efforts for overall improvement from its urban local bodies and Panchayat raj institutions. In this endeavour state government has taken away the PRIs and ULBs key sources of income (local body tax and Octroi) for business reasons.   Persisting problems with the local bodies Inefficient civic services of ULBs and PRIs have discouraged citizens from paying taxes on time. And the government has done very little to improve the quality of basic services. ULBs and PRIs heavily dependent on government for revenue receipts owing to the slow growth in their own revenues and increased liabilities. Instead of pushing the local bodies towards the road map of growth laid out by FFC, the state has been rendered a mere guarantor to banks and central agencies on behalf of them. Hence, it is unfair to expect the ill-equipped local bodies to rise to the occasion and support major urban schemes launched by union government.   Reasons for the current state of local bodies The state government has failed to put safeguards against misuse of funds in PRIs. A weak city and village level leadership (Political and bureaucratic) has led to little/no accountability in the amount spending over the years. Both Urban and rural development departments have failed to collect utilization certificates. This indicates – the funds are just lying in the bank accounts or have been misused. Ignored the horizontal devolution formula recommended by FFC The state machinery is reluctant to pass on its powers to ‘Purchase’ at the micro level, while it continues to suffer from an obsession to procure goods and services at every possible opportunity. Finance commission (FC) recommends ‘the measures needed to augment the Consolidated Fund of a State to supplement the resources of the Panchayats and Municipalities in the state. The FCs horizontal devolution formula takes into account the population, size and geography of urban and rural areas while making budgetary provisions for local bodies.   14th FC recommendations FFC has recommended distribution of grants to States for local bodies using 2011 population data with weight of 90% and area with weight of 10%. The grants to States will be divided into two, a grant to duly constituted Gram Panchayats and a grant to duly constituted Municipal bodies, on the basis of rural and urban population. It recommends grants in two parts; a basic grant, and a performance grant, for duly constituted Gram Panchayats and municipalities. The ratio of basic to performance grant is 90:10 with respect to Panchayats and 80:20 with respect to Municipalities. The top down approach to push schemes without laying foundation for them goes against the spirit of 74th Constitutional Amendment.   Way ahead: For greater and better participation of ULBs and PRIs in central schemes, Their powers and responsibilities must be strengthened. All the existing multiple legislations should be brought under one act. Bring greater accountability in spending at village and panchayat level. Facilitate the ease of procurement at lowest levels. State must fully and effectively devolve funds and functions to local bodies, even if this means giving up on its all-important power to procure and purchase. This will mean true devolution of power. Implement the finance commission’s recommendations.   Finance commission: Article 280; Quasi-Judicial body; Chairman+4 members; Constituted once in 5 years; Submits report to President. Recommends the distribution of the net proceeds of taxes of the Union between the Union and the States (vertical devolution); and the allocation between the States of the respective shares of such proceeds (horizontal devolution). Recommends the principles governing grants-in-aid of the States’ revenues, by the Centre.   Connecting the dots: Do you think the Panchayat Raj institutions and Urban local governments have a significant role in transforming India towards a developed country? Substantiate. The key to successful implementation of any big ticket projects of central/state governments lies in the strength of local bodies. Examine.   MUST READ Do not break away, Britain Hindu   It’s about propriety, not constitutionality Hindu Related Articles: Neither Office, Nor Profit Appointing MLAs as parliamentary secretaries weakening the watchdog? AAP Trouble – Mind Map   Getting around the U.S.’s Persian block Hindu   The Centre’s big reform push Hindu Related Articles: Livemint   Babus without rights Indian Express   Thought for food Indian Express   Raja Mandala: Delhi’s new diplomatic chutzpah Indian Express   Solving India’s problem of jobless growth Livemint Related Articles: India’s jobless growth The problem of jobless growth Where are the jobs?   Women in the workplace: Not yet a better balance Livemint Related Articles: Time has come—Feminist Economics   We’d better not miss the bus Business Line   All you want to know about Income Declaration Scheme 2016 Business Line   The global ‘new normal’ is still a big, big worry Business Line  MIND MAPS   1. CPEC - II

Jun 21, 2016 60 Days Plan 2019 - Daily Prelims Test

IASbaba ’60 Day Plan- Prelims Test 2016 HISTORY & CURRENT AFFAIRS [DAY 32]

Click here to get all the Tests– Archives Hello Friends Hope you are enjoying Daily questions. The link for Day 31 solution is active now.  Why we asked you to comment? Now go back to check your answers that you posted with honest effort. Edit your answers with marks. Everyday like this you can self monitor your progress for all 60 days. Accountability to self is the only way for success IASbaba '60 Day Plan' - Prelims Test 2016 [Day 32] Q.1) The script of Indus Valley civilization is considered to be the oldest script of the Indian Sub continent. Which of the following statements are correct about this script? Despite the efforts of linguists and symbologists, it is yet undeciphered. The script is written in Boustrophedon fashion. Square stamp seals are the dominant form of Indus writing media. Select the code from the following: a) 1 and 2 b) 2 and 3 c) 1 and 3 d) All of the above Q.2) Which of the following statements are correct about the town planning of Indus Valley Civilisation? The towns had well laid covered drains and houses had toilets. Bricks were used for the first time in the history by habitants of Indus Valley civilization. All houses were single storied and with standard size showing equal economic status of everyone. Proper granaries were built to store surplus grains. Select the code from the following: a) 1,2 and 4 b) 1 and 4 c) 1,3 and 4 d) All of the above  Q.3) Consider the following statements regarding Yoga: It is amongst the six ideologies of Hinduism. We have received the knowledge of Yoga from ancient written accounts of Patanjali. Yoga is covered under AYUSH program as an indigenous therapy. Which of the above statements are correct regarding Yoga? a) 1 and 3 b) 1 and 2 c) 2 and 3 d) All of the above  Q.4) Consider the following statements regarding Early Vedic Period: Aryans referred to Indus people as Dasyus. Early Aryans made large wooden castles to protect themselves from foreign attacks. Instead of land, the tribes owned cattle as private property. Aryans used Chariots instead of riding a horse. Which of the above statements are correct? a) 1,2 and 3 b) 2,3 and 4 c) 1,3 and 4 d) All of the above  Q.5) Out of Six ‘Astikas’ of Hindu philosophy, which of the following is the oldest? a) Mimansa b) Sankhya c) Vedanta d) Nyaya Q.6) Consider the following statements regarding the ‘Prayag Prashasti’: It contains inscriptions praising the political and military achievement of Chandra Gupta II. The inscription were written by Harisena, the court poet and minister in Gupta Court. The inscriptions are written in Pali language under Ashokan edict. The edict contains the inscriptions of Ashoka, the Guptas and Jehangir. Which of the above statements are incorrect? a) 1 and 3 b) 2 and 4 c) 1,3 and 4 d) None of the above  Q.7) Current the Hindu calendar that is being used  is modified ‘Shaka Samvat’- Saka calendar. Consider the following statements: Saka era was started by Kanishka in AD 78. Kanishka was the founder of Saka dynasty in India. Which of the above statements are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2  Q.8) Which of the following Tamil Sangam literary piece of art are correctly matched with their content: Thirukullar Tamil grammar treatise Tolakappiam Philosophical work Ettutukai Anthology Silappadikkaram Epic Select the code from following: a) All of the above b) 1 and 2 c) 3 and 4 d) 2,3 and 4  Q.9) Consider the following statements: Jainism predates Buddhism, while Buddha was older than Mahavira. Right faith, Right knowledge and Right Conduct are the ‘Triratnas’ (three gems) of Jainism. To remove all sufferings Mahavira gave an eight fold path to be followed. Which of the above statements are correct? a) 2 only b) 1 and 2 c) 2 and 3 d) All of the above Q.10) Consider the following statements regarding ‘Mudrarakshasa’: It is a historical play written by Kalidasa that narrates the ascent of king Chandragupta Maurya to power in India. Chanakya Neeti of Saam, Daam, Dand, Bhed is mentioned in Mudrarakshasa. Mudrarakshasa is written in Sanskrit. Which of the above statements are incorrect? a) 1 only b) 1 and 2 c) All of the above d) None of the above  Q.11) Many new creeds and faiths emerged in the 6th century BC against the contemporary Brahmanical society. One of the most staunch amongst them was the Ajivika Sect. Which of the following statements are correct about the Ajivikas? Ajivika was one of the ‘Nastika’ school of Indian philosophy. It was founded by Makkhali Gosala. Ajivikas do not believe in Karma philosophy and believe that whatever happens is preordained by the cosmic order. Bindusara was a follower of Ajivika Sect. Select the code from the following: a) 1 and 4 b) 2 and 3 c) 1,3 and 4 d) All of the above  Q.12) Milind or Menander-I was one of the most famous Indo-Bactrian King. The most important source of information about him is Milind Panho written by Nagasena. Which of the following statements about Milind Panho are correct? It contains religious dialogues of Milind with a Buddhist monk. It is written in Sanskrit. Select the code from the following: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.13) Which of the following statements are correct about ‘PanchaSiddhanta’?  It was written by Aryabhatta. It is a detailed account of Greek and Roman Astrology. Select the correct code from the following: a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Q.14) Consider the following statements regarding the society in Chola kingdom: Cholas were Shaivites and they patronized only Shiva temples. The Devadasi system emerged during this period. Practice of Sati was absent in the society. The inscriptions during Chola rule, mentions about 6 broad caste divisions. Which of the above statements are incorrect? a) 1,2 and 3 b) 1,3 and 4 c) 2,3 and 4 d) All of the above Q.15) Which of the following inscription provide detailed information about the formation and functioning of village assemblies during Chola period? a) Tanjore Inscription b) Mammalapuram inscription c) Uttiramerur Inscription d) Gangaikondacholapuram inscription Q.16) ‘Palmyra’, the ancient city was recently in news. In which of the following countries is it located? a) Syria b) Iraq c) Saudi Arabia d) Israel Q.17) “International Intellectual Property Index” is compiled by which of the following organizations? a) IMF b) WTO c) World Bank d) US Chamber of Commerce Q.18) Consider the following statements with respect to “Nai Manzil” The scheme is launched by Skill Development Ministry The scheme focuses on education and skill development of BPL and APL families Select the correct option a) 1 only b) 2 only c) Both d) None Q.19) Shishu, Kishore, Tarun are terms associated with which of the following government of India scheme a) Loans issued under Start Up India b) Development stages of Smart City Mission c) Loans issued under MUDRA Scheme d) Age based vaccines under Mission Indradhanush  Q.20) “Global financial literacy survey” is a report released by which of the following organization? a) WTO b) IMF c) ADB d) S&P rating services Q.21) “Gender Development Index” is a report released by which of the following organizations? a) UNDP b) UNICEF c) IMF d) ILO Q.22) Consider the following statements with respect to ‘Bilateral Totalization Agreement (BTA)’ It ensures that the tax charged for the exclusive purpose of social security in one country is excluded from taxation India has a BTA with USA but not Double Taxation Avoidance Agreement (DTAA) USA has a BTA with only two Asian countries – Japan and South Korea Which of the following statements is/are correct? a) Only 1 b) 1 and 2 c) 1 and 3 d) Only 3 Q.23) Match List I with List II and select the correct answer using the code given below the Lists: List IList II a) Sardar Vallabhbhai Patel                                         1) Good Governance Day b) Pandit Deendayal Upadhyaya                                 2) Antyodaya Diwas c) Atal Bihari Vajpayee                                                   3) National Unity Day d) B R Ambedkar    A-B-C-D a) 1-( )-3-2 b) 3-2-1-( ) c) ( )-3-2-1 d) 2-3-( )-1 Q.24) Consider the following statements with respect to Rat Hole Mining. It is mainly used for iron ore and coal mining in India It is more prevalent in the state of Jharkhand National Green Tribunal has issued a blanket ban on Rat Hole Mining Which of the statements is/are incorrect? a) Only 2 b) 1 and 2 c) 2 and 3 d) All of the above Q.25) Which of the following statements is not true about Mural Painting? Murals are large works executed on the walls of solid structure Murals are mainly found in natural caves and rock-cut chambers Themes of Murals - Buddhist, Jain and Hindu religions Select the correct code a) 1 only b) 1 and 3 only c) 2 only d) None of the above Q.26) The Fourth Buddhist Council was held in Kashmir under the leadership of a) Bindusara b) Ashoka c) Kunal d) Kanishka Q.27) Which of the following statement is/are correct about archaeological survey of India? ASI is responsible for the maintenance, restoration and discovery of ancient monument, archeological site, horticulture site and museums. Archeological and historical pursuits in India started with the effort of Charles Wilkins. ASI is also responsible for epigraphical and numismatic study. It is also responsible for archeological expedition outside India. Select the appropriate code: a) 1 and 2 only b) 1, 2 and 3 only c) 1, 3 and 4 only d) Al of the above Q.28) Consider the following statements with regard to Sarnath: Sarnath, an important seat of Buddhist pilgrimage is located just a few kilometers from Varanasi near the confluence of the Ganga and the Gomti rivers. World Bank to fund for Sarnath redevelopment Lord Buddha gave his 1st sermon here Shreyamshanath (11th Thirthankara) of Jainism was born here Which of the above statement is/are not correct? a) 1 only b) 2 only c) None d) All of the above Q.29) The famous phrase ‘Vasudhaiva Kutumbakam’ belongs to which Upanishad? a) Mundaka Upanishad b) Maho Upanishad c) Brihadaranyako Upanishad d) Kena Upanishad Q.30) Consider the following pairs: (Foreign Travellers) (Visited during) Marco polo : Pandya Kingdom Bernier : : Shah Jahan Ralph Fisch : : Akbar Which of the pairs given above are matched correctly? a) 1, 2 and 3 only b) 2 and 3 only c) 1 and 3 only d) 1 and 2 only Q.31) Match the incorrect pairs: Renowned works : : Artists Landscape : : Ram Kumar Tandava : : Swaminathan Peace : : K.K. Hebbar Monkey God : : M.F.Husain Indian traditional Girl : : I.Jayachandran Choose the answer from the code below a) 1 and 2 b) 2 and 3 c) 1 and 3 d) None of the above Download the Solution- Click here P.S- Attempt these questions within 20 minutes with full honesty and write your results in the comment box. Next day, come back and check your result. You can also discuss the important concepts and issues, in case of doubts (among peers) All the best IASbaba