Applied Economics Flashcards
(104 cards)
1
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3
Q
Which companies are required to comply with Corporate Social Responsibility (CSR) provisions under Section 135 of the Companies Act, 2013?
A
Companies with: (i) net worth ≥ ₹500 crore, OR (ii) turnover ≥ ₹1000 crore, OR (iii) net profit ≥ ₹5 crore, during the immediately preceding financial year.
4
Q
How much must eligible companies spend on CSR activities? Are activities benefiting only employees/families considered CSR?
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At least 2% of their average net profits from the preceding three financial years. No, activities benefiting only employees and their families are not considered CSR activities.
5
Q
What was the approximate total CSR spending in India in FY 2023-2024? Which sector received the highest share?
A
Approximately ₹29,987 crore [cite: CSR in India: Eligibility, Laws, and Trends - - Mission Sustainability]. Education received the highest share (~₹10,085 crore) [cite: CSR in India: Eligibility, Laws, and Trends - - Mission Sustainability].
6
Q
When did NABARD start the Self Help Group-Bank Linkage Programme (SHG-BLP)? What was its purpose?
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Started in 1992-93 to provide financial services to unreached/underserved poor households.
7
Q
What are typical features of Self Help Groups (SHGs)? For what purposes do they provide finance?
A
Small groups (10-20 members) with homogeneous socio-economic backgrounds and a common interest. Provide finance primarily for production (e.g., pickles, dairy, animal husbandry) and sometimes for consumption; loan repayment liability rests with the group.
8
Q
What are the two main models of microfinance involving banks in India mentioned?
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- SHG-Bank Linkage Model: SHGs financed directly by banks (CBs, RRBs, Co-op Banks). 2. MFI-Bank Linkage Model: Banks finance Micro Finance Institutions (MFIs) for on-lending to SHGs/other small borrowers.
9
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What is the definition of a Micro Enterprise as per the MSME Development Act, 2006 (mentioned in the text)?
A
Investment in Plant & Machinery/Equipment ≤ ₹1 crore AND Turnover ≤ ₹5 crore. (Note: Search results indicated potential revised limits effective Apr 2025: Investment ≤ ₹2.5 crore, Turnover ≤ ₹10 crore [cite: MSME New Definition 2025: Revised Investment & Turnover Limits - IndiaFilings])
10
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What is the definition of a Small Enterprise?
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Investment in Plant & Machinery/Equipment ≤ ₹10 crore AND Turnover ≤ ₹50 crore.
11
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What is the definition of a Medium Enterprise?
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Investment in Plant & Machinery/Equipment ≤ ₹50 crore AND Turnover ≤ ₹250 crore.
12
Q
Do bank loans to MSMEs qualify for Priority Sector Lending (PSL)? Is collateral required for loans up to ₹10 lakh to MSEs?
A
Yes, bank loans to MSMEs conforming to RBI conditions qualify for PSL classification. Scheduled Commercial Banks are mandated not to accept collateral security for loans up to ₹10 lakh to Micro and Small Enterprise (MSE) units.
13
Q
What are Carbon Markets?
A
Trading systems where carbon credits are bought and sold. Companies/individuals buy credits (representing 1 tonne CO2 equivalent reduced/sequestered/avoided) from entities that reduce GHG emissions, to compensate for their own emissions. Credits become offsets once used. Help finance climate action.
14
Q
What is the “Small Farmers Large Field (SFLF)” model?
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A model where small farmers organize into groups to synchronize/harmonize operations (like nursery management, transplanting, harvesting), purchase inputs, and sell produce collectively to achieve economies of scale and increase bargaining power.
15
Q
What benefits did the SFLF pilot study show?
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Participating farmers nearly doubled profits, saved time on joint activities, and experienced social harmony and improved system sustainability.
16
Q
Is Niger (Ramtil) seed an MSP-mandated crop? Is it Kharif or Rabi?
A
Yes, it is one of the 22 mandated crops. It is primarily a Kharif crop, though grown as Rabi in Odisha.
17
Q
What are the uses of Niger seed/oil mentioned?
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Used by tribal populations for cooking oil, press cake as livestock feed, seeds as condiment. Oil has medicinal properties, used commercially in cosmetics, perfumeries.
18
Q
Does Niger crop require significant inputs?
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No, it can grow on denuded soil with basic cultivation (ploughing, sprinkling seeds). Requires little water, fertilizer, or pesticides.
19
Q
What defines an e-commerce entity under the Consumer Protection (E-Commerce) Rules, 2020? Does it include sellers on the platform?
A
Any person owning, operating, or managing a digital/electronic facility/platform for e-commerce. It does not include a seller offering goods/services on a marketplace.
20
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Can an e-commerce marketplace entity sell goods owned or controlled by itself on its platform under the amended rules (2021)?
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No, the 2021 amended rules specify that marketplace entities cannot sell goods owned/controlled by them. Sellers must be third parties; no e-commerce store run by the platform itself is allowed.
21
Q
What are the EPF contribution rates for employer and employee?
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Both contribute equally, typically 12% of basic salary (+DA). For certain establishments (e.g., <20 employees), the rate is restricted to 10%.
22
Q
Is EPF membership mandatory for employees earning >₹15,000/month? Are casual workers entitled to EPF benefits?
A
No, membership is mandatory only for those earning ≤ ₹15,000/month at the time of joining. Higher earners can join with employer/Asst. PF Commissioner consent. Yes, the Supreme Court ruled casual workers are included in the definition of ‘employee’ and entitled to benefits.
23
Q
Are casual workers entitled to regular working hours and overtime pay?
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Yes, as per Minimum Wage Rules, 1950 and SC guidelines including casual workers under ‘employee’ definition.
24
Q
How can wages be paid according to the Payment of Wages Act, 1936 (as amended 2017)?
A
By (a) cash OR (b) cheque OR (c) crediting to the employee’s bank account. Appropriate Govt. can specify establishments that must pay only by cheque or bank credit.
25
What is Fertigation?
A method of applying fertilizer incorporated within irrigation water through a drip system, allowing even distribution.
26
What are the advantages of Fertigation mentioned? Can Rock Phosphate be used?
Advantages: Controlling alkalinity of irrigation water, efficient utilization/precise application of nutrients, increased nutrient availability (due to optimal pH), potentially higher water/nitrogen use efficiency. No, Rock Phosphate is generally insoluble and not suitable for fertigation.
27
What is Synthetic Ammonia typically synthesized from?
Natural gas. Hydrogen derived from natural gas is reacted with nitrogen.
28
Where does Sulphur, used in fertilizers, often come from?
It is a major by-product of oil refining and gas processing, recovered during the removal of sulphur from crude oil/gas.
29
What was the EPF interest rate declared for FY 2024-2025?
8.25% [cite: EPF Interest Rate 2024-2025: Current Rate & Historical Trends - Paytm].
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32
What is Zero Tillage (ZT) or No-Tillage? What are its advantages mentioned?
A process where crop seed is sown using drillers without prior land preparation, leaving previous crop stubbles [source: 2370]. Advantages: Reduces cultivation cost, soil erosion, crop duration, irrigation requirement, and weed effect [source: 2371, 2372]. Allows direct planting of paddy seeds in wet soil, skipping nursery stage [source: 2373]. Enhances carbon sequestration in soils [source: 2374].
33
What is the Social Cost of Carbon (SCC)?
An estimate (in dollars) of the economic damages resulting from emitting one additional ton of carbon dioxide into the atmosphere [source: 2375]. Used to help understand the economic impacts of decisions affecting emissions [source: 2376].
34
What was a recent estimate for India's country-level SCC?
Around $90 per tonne of CO2, higher than the US estimate ($50/tonne) at the time of the study [source: Social Cost of Carbon: The Figure We Need to Know
35
What is the conventional planting material for sugarcane in India? What problems does it pose?
Setts (cane cuttings with 2-3 buds), requiring 6-8 tonnes/ha (about 32,000 pieces) [source: 2378, 2379]. Problems: Large mass causes issues in transport, handling, storage; rapid deterioration reduces bud viability and sprouting [source: 2380].
36
What is Sugarcane Bud Chip technology? What are its advantages?
Using excised axillary buds (bud chips) as planting material, often raised in a nursery and transplanted [source: 2381, 2382]. Advantages: Reduces seed mass (less bulky, easier transport), more economical, improves seed quality, reduces plant mortality, good for rapid multiplication of new varieties, allows leftover cane use for juice/sugar [source: 2381, 2382, 2383, 2384, 2385].
37
What is Crop Diversification? How can legumes help?
Adding new crops or cropping systems to a farm, considering returns and marketing opportunities [source: 2390]. Enhances agroecosystem biodiversity and resilience [source: 2391]. Legumes fix atmospheric nitrogen, add quality organic matter, aid nutrient circulation and water retention [source: 2392]. High potential for conservation agriculture [source: 2393].
38
Name some Government initiatives supporting Crop Diversification in India.
Crop Diversification Programme (CDP under RKVY in Green Revolution states), National Food Security Mission (NFSM), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), Paramparagat Krishi Vikas Yojana (PKVY), Rashtriya Krishi Vikas Yojana (RKVY), Mission for Integrated Development of Horticulture (MIDH) [source: Crop Diversification in India - INSIGHTS IAS].
39
What is a Tensiometer used for in agriculture?
A device for measuring soil water tension, indirectly indicating soil moisture [source: 2394]. Provides readings at the same location over time, helping interpret soil water conditions experienced by plant roots [source: 2395, 2396].
40
What is Vertical Farming? What are its pros and cons mentioned?
Growing crops vertically stacked, rather than in horizontal rows [source: 2397]. Pros: Conserves space, higher yield per sq. foot [source: 2398]. Cons: Can hinder pollination (indoor environment), dependent on technology (lighting, temperature/humidity control) [source: 2399, 2400].
41
What constitutes 'Public Investment' in agriculture? Give examples.
Acquiring physical assets creating incremental income over time, or investments aiding the agricultural sector directly, enhancing resource productivity [source: 2403, 2404]. Examples: Computerization of PACS, Social Capital Development, Setting up cold storage facilities by government [source: 2405].
42
Which items mentioned are not considered public investment in agriculture?
Providing Minimum Support Price (MSP), free electricity to farmers, and farm loan waivers [source: 2406].
43
What was the planned increase in India's farm budget for FY 2025-26?
Planned increase of over 15% to about ₹1.75 trillion (~$20 billion), focusing on high-yield crops, infrastructure, and boosting production of pulses, oilseeds, etc. [source: India set to raise farm budget by over 15%, biggest increase in six years].
44
What were the trends in rural worker productivity and workforce share in India between 1993-94 and 2011-12 (based on text)?
Productivity increased in rural areas (from ₹37k to ₹62k at 2004-05 prices) but remained lower than urban areas [source: 2407, 2408, 2409]. Rural share in the workforce declined due to urbanization (from 77.8% to 70.9%) [source: 2410].
45
How did the structure of the rural economy change post-1991 reforms (up to 2004-05)?
Agricultural growth decelerated, while non-farm economy (services, manufacturing, construction) growth accelerated, offsetting the agricultural slowdown [source: 2411, 2412]. Share of agriculture in rural economy reduced (57% in 1993-94 to 39% in 2004-05), making it more non-agricultural [source: 2413, 2414].
46
What happened to rural employment growth post-1991 reforms?
Decelerated significantly compared to the pre-reform period and even turned negative post-2004-05 despite acceleration in output growth [source: 2417, 2418]. Reason: Non-farm rural sectors could not absorb labour leaving agriculture [source: 2419, 2420].
47
What is 'Fixed Term Employment' as notified by the government (context 2018)?
Allowed across all sectors via amendment to Industrial Employment (Standing Orders) Central Rules [source: 2421, 2422]. Makes hire/fire easier, reduces role of middlemen [source: 2425]. Positions of existing permanent workers cannot be converted to fixed-term [source: 2423]. No termination notice needed for temporary workman [source: 2426].
48
What benefits are Fixed Term Employment (FTE) workers entitled to under the Labour Codes?
Entitled to all benefits available to permanent employees. Eligible for gratuity after one year of service [source: New Labour Code - PIB].
49
When was coal mining nationalized in India? Is India self-sufficient in coal?
Nationalized in phases: coking coal in 1971-72, non-coking in 1973. All mines nationalized by May 1973 via Coal Mines (Nationalization) Act [source: 2427]. No, India imports coal to meet domestic supply shortages despite having large reserves [source: 2429].
50
How were coal blocks allocated for Ultra Mega Power Projects (UMPPs) according to the text?
Allocated by the Ministry of Power through tariff-based competitive bidding [source: 2428].
51
Are solar panels manufactured in India using fully domestic components?
No, according to the text, panels made in India are assembled with materials sourced from other countries [source: 2430]. India is still developing semiconductor clusters [source: 2430].
52
What are the functions of the Central Electricity Regulatory Commission (CERC)?
Regulate inter-State electricity transmission; determine tariffs for inter-State transmission; issue licenses for transmission/trading (interstate ops); regulate tariffs of generating companies owned/controlled by Central Govt [source: 2431, 2432, 2433].
53
What recent amendment did CERC make regarding Bank Rate definition for tariff regulations (effective Apr 2024)?
Defined Bank Rate as the 1-year SBI MCLR + 100 basis points, used for calculating interest on working capital [source: Central Electricity Regulatory Commission Amends Tariff Regulations For 2025].
54
Who recommends MSPs and who approves/announces them?
Recommended by the Commission for Agricultural Costs and Prices (CACP) [source: 2434]. Announced by the Cabinet Committee on Economic Affairs (CCEA) [source: 2434].
55
What is the National Agriculture Market (eNAM)? Who is the lead implementing agency?
A pan-India electronic trading portal networking APMC mandis to create a unified national market for agricultural commodities [source: 2436]. Lead agency: Small Farmers Agribusiness Consortium (SFAC) [source: 2437].
56
What benefits does eNAM aim to provide?
Better marketing via online access to more buyers/markets, removal of information asymmetry, real-time price discovery, transparent auction process, quality-commensurate prices, online payment, improved marketing efficiency [source: 2438].
57
What is the Stand Up India Scheme? Who is eligible?
Facilitates bank loans (₹10 lakh - ₹1 crore) per bank branch to at least one SC/ST borrower AND at least one woman borrower for setting up a greenfield enterprise (mfg, services, trading) [source: 2439, 2440]. For non-individual enterprises, SC/ST/Woman entrepreneur must hold ≥51% stake [source: 2441]. Launched April 5, 2016 [source: 2442].
58
Does SIDBI provide refinance support for the Stand Up India scheme?
Yes, SIDBI formulated a Special Refinance Scheme for Banks extending assistance under Stand-Up India [source: 2443]. An allocation of ₹10,000 crore was mentioned for refinancing support [source: 2444].
59
What was the total loan amount sanctioned under Stand Up India by March 17, 2025?
₹61,020.41 crore [source: Stand-Up India scheme sanctions record Rs 61,020 crore worth loans: Centre].
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61
What is the Accelerated Irrigation Benefits Programme (AIBP)? Which ministry implements it?
Launched in 1996 as a central assistance programme to accelerate the implementation of irrigation projects exceeding state resource capabilities [source: 454, 455]. Currently implemented by the Ministry of Water Resources, River Development, and Ganga Rejuvenation [source: 454]. It is now part of PMKSY [source: Cabinet Committee on Economic Affairs approves inclusion of Jamrani Dam...].
62
What is the Command Area Development (CAD) programme (now CADWM)? When was it initiated and why?
Initiated in 1974-75 to bridge the gap between irrigation potential created and utilized, and optimize agricultural productivity via better land/water management in command areas [source: 456]. Aimed at developing water-use efficiency [source: 457]. Restructured/renamed CADWM in 2004 [source: 457].
63
What is the latest status of the CADWM programme?
The Centre approved the Modernization of CADWM (M-CADWM) as a sub-scheme of PMKSY for the 2025-2026 period, aiming to enhance irrigation infrastructure, promote sustainable farming, and improve water-use efficiency, particularly via piped irrigation systems [source: Modernisation of Command Area Development and Water Management (M-CADWM) scheme - ForumIAS].
64
What is Capital Augmenting Technological Progress? Give an example from the text.
Technological progress that leads to an increase in effective capital input [source: 458]. Example: Substitution of steel ploughs for wooden ploughs in agriculture [source: 458].
65
What is the concept of a "Seed Village"? What are its objectives?
A village with a trained group of farmers producing seeds for various crops to meet their own needs and those of nearby farmers timely and cost-effectively [source: 460]. Objectives: Replace local varieties with new HYVs, empower farmers through training in seed production/technology [source: 461, 462].
66
Which office releases the Index of Eight Core Industries (ICI)? Name the eight industries.
Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) [source: 463]. Industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity [source: 463].
67
Which core industry has the highest weightage in the ICI? Which had the highest weightage among the options given in the text?
Petroleum Refinery Products has the highest weightage overall (28.04%) [source: Index of Eight Core Industries (ICI) - Drishti IAS]. Among the specific options likely referred to in the original question (Q29), Electricity had the highest weightage (19.85%) [source: 463, Index of Eight Core Industries (ICI) - Drishti IAS].
68
How is the Fair and Remunerative Price (FRP) for sugarcane determined and approved?
Determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) after consulting state governments and stakeholders [source: 463]. Approved by the Cabinet Committee on Economic Affairs (CCEA) [source: 463].
69
What was the approved FRP for sugarcane for the 2024-25 season?
₹340 per quintal at a sugar recovery rate of 10.25% [source: Cabinet approves hike in sugarcane FRP by Rs 25 to Rs 340 per quintal for 2024-25 season]. This was ₹25 higher than the previous season [source: Cabinet approves hike in sugarcane FRP by Rs 25 to Rs 340 per quintal for 2024-25 season].
70
Under which Act are agricultural produce markets regulated in India? What is an APMC?
Regulated under the Agricultural Produce Market Committee (APMC) Act enacted by State Governments [source: 464]. APMC is a marketing board established by states, which geographically divides the state and establishes markets (mandis) [source: 465, 466].
71
What is Venture Capital?
Capital invested by wealthy investors (venture capitalists) in new start-up companies with long-term growth potential [source: 467, 468]. Venture capitalists often influence major decisions in the companies they invest in [source: 470].
72
What was the main objective of India's Twelfth Five-Year Plan (2012-17)? What was the GDP growth target?
Main objective: Faster, sustainable, and more inclusive growth [source: 472]. Target: 9 percent average GDP growth over the plan period [source: 474]. (It was the last Five-Year Plan [source: 471]).
73
What is Bagasse? What can it be used for?
A byproduct of the sugar industry; the fibrous residue remaining after sugarcane stalks are crushed [source: 476, 477]. It can be used as biomass fuel for energy generation [source: 478].
74
What is Molasses? Can it be used to produce synthetic chemical fertilizers according to the text?
A dark, sweet, syrupy byproduct from sugar extraction (sugarcane/sugar beets) [source: 479]. No, the text states it cannot be used as feedstock for synthetic chemical fertilizers, which usually derive from petroleum byproducts [source: 482, 483]. Molasses contains nutrients like calcium, magnesium, iron [source: 481] and is used to produce ethanol and as a sweetener [source: 484, 485, 486, 487].
75
What are Land Development Banks (LDBs)? What is their main objective?
Special banks providing long-term loans [source: 490]. Main objective: Promote agricultural development and increase agricultural production [source: 491]. They finance Primary LDBs or directly finance farmers [source: 492].
76
Does NABARD provide direct credit assistance to rural households?
No, NABARD is an All-India Financial Institution that extends indirect credit by providing refinance facilities to lending institutions (like RRBs, cooperative banks) in rural areas [source: 493, 494]. It also promotes institutional development and monitors client banks [source: 493].
77
Which recent policy initiatives mentioned aimed to promote manufacturing sector growth?
Setting up National Investment and Manufacturing Zones (NIMZs), providing 'single window clearance', establishing the Technology Acquisition and Development Fund [source: 495].
78
Which measures mentioned would aid in inclusive governance?
Establishing effective District Planning Committees, increasing government spending on public health, strengthening the Mid-day Meal Scheme [source: 496]. (Opening NBFCs might not be considered part of inclusive governance per the text [source: 497]).
79
What is the Lead Bank Scheme? What group recommended it?
Introduced in 1969, it assigns lead roles to individual banks for specific districts [source: 498]. Banks take responsibility for credit availability to priority sectors (agriculture, SSI, etc.) in their allotted district [source: 500, 501]. Introduced by RBI based on the Gadgil Study Group report [source: 499].
80
What are the main objectives of the Mega Food Parks Scheme?
Increase processing of perishables, provide good infrastructure for food processing industries, reduce food wastage, increase India's share in global food trade [source: 502, 503]. Based on a cluster approach [source: 504].
81
What are the main objectives of the Special Economic Zones (SEZs) policy/Act?
Generation of additional economic activity, promotion of exports (goods/services), promotion of domestic/foreign investment, creation of employment, development of infrastructure facilities [source: 506, 507, 508].
82
When was the National Food Security Mission (NFSM) launched? What components does it currently comprise?
Launched in 2007-08 [source: 509]. Currently comprises sub-components: NFSM-Rice, NFSM-Wheat, NFSM-Pulses, NFSM-Coarse Cereals, NFSM-Nutri-Cereals, and NFSM-Commercial Crops [source: 511].
83
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84
What is the mandate of the Commission for Agricultural Costs & Prices (CACP)?
To recommend Minimum Support Prices (MSPs) to incentivize cultivators to adopt modern technology, raise productivity, and overall grain production in line with demand patterns [source: 513, 514].
85
How many commodities does CACP recommend MSPs for according to the text? Name the categories.
22 commodities: 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops (copra, sugarcane, cotton, raw jute) [source: 515].
86
When was the National Food Security Mission (NFSM) launched? What was its initial aim?
Launched in October 2007 [source: 516] by the Ministry of Consumer Affairs, Food and Public Distribution [source: 516]. Initial aim: Increase production of rice, wheat, and pulses [source: 516]. (Coarse cereals were included later [source: 510]).
87
What did the Deepak Parekh Committee on Infrastructure Financing recommend?
Recommended significant infrastructure investment to sustain/improve GDP growth [source: 517]. Also recommended measures to facilitate equity flow, induce foreign investment, and use forex reserves for infrastructure capacity expansion [source: 518].
88
Which Ministry launched the Rashtriya Swasthya Bima Yojana (RSBY)? What was its purpose?
Launched by the Ministry of Labour and Employment [source: 519]. Purpose: Provide health insurance coverage for Below Poverty Line (BPL) families [source: 519].
89
Which Ministry launched the Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY)? What is its aim?
Launched by the Ministry of Textiles [source: 520]. Aim: Financially enable the artisans' community to access healthcare facilities [source: 521].
90
What is the current name for the MCX Stock Exchange (MCX-SX)? Is it a recognized stock exchange?
Renamed to the Metropolitan Stock Exchange of India (mSXI or MSE) in 2014 [source: 522, 523]. Yes, it is recognized by SEBI under the Securities Contracts (Regulation) Act, 1956 and notified as a "Recognized Stock Exchange" by the Ministry of Corporate Affairs [source: 523, 524].
91
What was the focus of India's Second Five-Year Plan (1956-61)? Whose ideas was it based on?
Strategy emphasized rapid industrialisation with a focus on heavy industries and capital goods [source: 525, 526]. Based on the ideas of Mahalanobis [source: 527].
92
What policies were emphasized during India's Third Five-Year Plan (1961-66) due to dependence on external resources?
Policies and measures for import substitution and increasing export earnings [source: 528, 529].
93
What were the estimated production figures for Rice, Wheat, and Pulses in India during 2021-22 according to the text?
Rice: 127.93 million tonnes (record) [source: 530]. Wheat: 111.32 million tonnes (record) [source: 530]. Pulses: 26.96 million tonnes (record) [source: 531].
94
Briefly describe BALCO, NALCO, and Hindalco.
BALCO: Incorporated 1965 as PSU, taken over by Vedanta Resources in 2001; integrated Aluminium complex in Korba (Chhattisgarh) and unit in Bidhanbag (West Bengal) [source: 532, 533, 534]. NALCO: Navratna CPSE (Group 'A') under Ministry of Mines; integrated operations in mining, metal, power; GoI holds majority equity (51.5%); units in Odisha (Angula, Damanjodi) [source: 535, 536, 537]. Hindalco: Indian aluminium/copper company, subsidiary of Aditya Birla Group; HQ in Mumbai [source: 538, 539].
95
When was the National Housing Bank (NHB) established? Who owned it initially and who owns it now?
Established July 9, 1988, under NHB Act, 1987 [source: 540, 556, 557]. Initially wholly owned by RBI [source: 541, 558]. In 2019, pursuant to Budget announcements, shares were transferred to the Government of India, which now contributes the entire capital [source: 542, 543, 559, 560].
96
What was the purpose of the Tarapore Committee (1997)?
Set up by RBI under former Deputy Governor S S Tarapore to "lay the road map" to capital account convertibility [source: 544].
97
What was the first life insurance company on Indian soil? Were Indians initially insured? When was LIC formed?
Oriental Life Insurance Company, started by Europeans in Calcutta in 1818 [source: 545]. Initially, Indian natives were not insured [source: 545]. LIC was formed in 1956 by nationalizing 245 insurers/provident societies, via the LIC Act, 1956 [source: 546, 547].
98
Which is India's oldest General Insurance Company mentioned? How was it reformed in 1972?
National Insurance Company Limited, incorporated in Kolkata in 1906 [source: 548, 549]. In 1972, after the General Insurance Business Nationalisation Act, it was merged with other companies to become one of four subsidiaries of the General Insurance Corporation of India (GIC), fully owned by GoI [source: 550].
99
When was United India Insurance Company incorporated and nationalized?
Incorporated Feb 18, 1938; nationalized in 1972 [source: 551]. Headquartered in Chennai, fully owned by GoI [source: 551].
100
Who chaired the Task Forces set up in 2002 for simplification/rationalization of direct and indirect taxes? What were some recommendations?
Dr. Vijay L. Kelkar [source: 553]. Recommendations included increasing income tax exemption limits (to ₹1 lakh general, ₹1.5 lakh widows/seniors), rationalizing exemptions, abolishing long-term capital gains tax and wealth tax [source: 554, 555].
101
When was the Small Industries Development Bank of India (SIDBI) established? Was it initially a subsidiary of IDBI?
Established April 2, 1990, by GoI [source: 561]. Yes, initially a wholly owned subsidiary of IDBI; delinked from IDBI w.e.f. March 27, 2000 [source: 561].
102
Define Procurement Prices as distinct from MSP.
Prices at which grain was domestically procured by public agencies (like FCI) for PDS release, announced after harvest began [source: 562]. Normally, Procurement Price was lower than open market price but higher than MSP [source: 563]. (Note: Text mentions separate declaration stopped around 1968-69, with MSP usually acting as procurement price [source: Procurement prices vs MSP India latest policy]).
103
When did India's major economic liberalization start? Was industrial licensing completely abolished?
Started in 1991, though some measures began in the 1980s [source: 564]. Industrial licensing was abolished for almost all product categories, but exceptions remained (e.g., alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace, drugs/pharmaceuticals) [source: 566, 567].
104
What does a rise in the SENSEX generally indicate?
Indicates the market is doing well [source: 570]. Since stocks reflect future earnings expectations, a rising index suggests investors expect better earnings from the companies included in the index [source: 570, 571]. It means an overall rise in share prices of the 30 actively traded companies registered with BSE that comprise the index [source: 568, 572].
