Economic Planning

Explanation

The Atal Innovation Mission (AIM) is a key program led by the Prime Minister and established by NITI Aayog to encourage innovation and entrepreneurship throughout India.

Explanation

In India's Five Year Plans, the Second Plan focused on promoting basic and capital industries, while the Fourth Plan aimed to address the growing wealth disparity. However, the Fifth Plan did not include the financial sector in its objectives. Therefore, the correct statements are 1 and 2 only, making option (a) the correct answer.

Explanation

When the Government provides a commodity for free to the public, the opportunity cost is transferred from the consumers of the product to the tax-paying public. This means that the cost of providing the free commodity is borne by the taxpayers rather than the consumers benefiting from it. For example, if the Government chooses to build a street light instead of a water tap using its limited funds, there is an opportunity cost involved in selecting one over the other.

Explanation

The 'National Investment and Infrastructure Fund' is not a part of NITI Aayog, but falls under the Department of Economic Affairs. Additionally, contrary to the second statement, its initial corpus when established in the 2015 Budget was Rs. 40,000 crore, not Rs. 4,00,000 crore. Therefore, both statements are incorrect.

Explanation

The Government of India created NITI Aayog to take over the functions of the Planning Commission. The formation of NITI Aayog was officially announced by the Union Government of India on 1 January 2015.

Explanation

The primary goal of the 12th Five-Year Plan of the Indian government (2012-17) is to achieve faster, sustainable, and more inclusive growth.

Explanation

A country's economic growth depends on the accumulation of capital, which then stimulates private businesses to contribute to the overall growth of the economy.

Explanation

When foreign nationals visit a country for events like the XIX Commonwealth Games in India, it is considered as an export in terms of the economy. This is because income generated from tourism acts as an invisible export, bringing in foreign exchange into the country.

Explanation

When considering actions to reduce the current account deficit, devaluing the domestic currency and adopting policies to attract more Foreign Direct Investment (FDI) and funds from Foreign Institutional Investors (FIIs) can be effective. Devaluing the currency makes domestic goods more affordable, increasing demand for them in international markets. This helps in reducing the current account deficit by boosting exports.

Explanation

The SEZ Act, 2005, enforced in February 2006, aims to achieve certain goals. These include the development of infrastructure facilities and the encouragement of investments from foreign sources. Additionally, the Act aims to enhance the export of services exclusively. The correct objectives of this Act are options (a) 1 and 2 only.

Explanation

India has established Double Taxation Avoidance Agreements (DTAA) with 23 countries, including Mauritius, which is known for its low tax rates. This agreement plays a significant role in attracting Foreign Direct Investment (FDI) from Mauritius to India, as it helps to avoid double taxation on income earned in both countries.

Explanation

During the Eighth Five Year Plan from 1992 to 1997, there was a focus on developing infrastructure instead of heavy industries in India.

Explanation

The Second Five-Year Plan focused on promoting heavy industries, while the Third Five-Year Plan introduced import substitution as a strategy for industrial growth. The correct statement is that the Second Five-Year Plan emphasized heavy industries.

Explanation

The publication 'Energy Statistics' is periodically released by the Central Statistical Organization under the Ministry of Statistics and Programme Implementation.

Explanation

The earliest event to take place in the context of independent India's economy was the enactment of the Banking Regulation Act in 1949. This was followed by the introduction of the First Five-Year Plan in 1951, nationalization of the State Bank of India in 1955, and nationalization of insurance companies in 1955-56.

Explanation

In India, the plans are created by the Planning Commission and ultimately endorsed by the National Development Council.

Explanation

In the year 1991, India experienced a significant increase in the growth rate of its exports. This was attributed to a strategic decision by the Government of India to devalue the currency. Devaluation is a deliberate action by the country's central bank to reduce the value of the domestic currency in relation to foreign currencies. This makes Indian products more affordable for international buyers.

Explanation

The process of economic liberalisation in India commenced with substantial changes in industrial licensing policy, specifically the removal of restrictions on industries.

Explanation

In the planning process of the industrial sector in India, there has been a shift in focus from industrial development to other sectors in the nineties. This shift is due to factors such as the dominance of private and multinational sectors in industrial investment, the reduced relevance of central planning with the market taking a central role, and a greater emphasis on sectors like human resources. The statement that the nation's priorities have shifted away from industrial development to rural development is not true in this context.

Explanation

The official publication known as the Economic Survey in India is released annually by the Ministry of Finance, Government of India, and is made available before the annual budget presentation.

Explanation

The Sixth Five Year Plan was implemented from 1980 to 1985, followed by the Eighth Five Year Plan from 1992 to 1997. The Seventh Five Year Plan covered the period from 1985 to 1990. The second plan holiday occurred between 1990 and 1992, while the first plan holiday took place between 1966 and 1969.

Explanation

The Chelliah Committee focused on Tax Reforms in 1993, the Omkar Goswami Committee dealt with Industrial Sickness in 1994, the Rangarajan Committee addressed Disinvestment of Shares in PSUs in April 1993, and the RN Malhotra Committee worked on Reforms in the Insurance Sector in 1993.

Explanation

Both Assertion and Reason are true, and the Reason provides the correct explanation for the Assertion regarding the policy instrument of economic liberalization through reduction in import duties on capital goods. This measure helps local entrepreneurs enhance their technology to compete in the global markets.

Explanation

The key difference between the Eighth Five Year Plan and the earlier ones is that the Eighth Plan had a significantly larger budget allocation compared to its predecessors. In this plan, a major focus was on boosting agricultural and rural development to drive growth. Additionally, there was a notable emphasis on the expansion of infrastructure. The abolition of industrial licensing was also a significant change in this plan. The correct option is (a), as the Eighth Five Year Plan had a larger outlay to support its objectives, with a specific focus on energy, aiming for a growth rate of 6.78% per annum.

Explanation

The new economic policy implemented in India in 1991, following the Rao-Manmohan model, consists of two main components: stabilization and structural adjustment. Stabilization is focused on short-term measures to stabilize the economy, while structural adjustment involves long-term changes to the economic framework.

Explanation

During the Eighth Five Year Plan from 1992 to 1997, the main focus was on improving human resources such as employment, education, and public health. This plan recognized human development as the central aspect of all development efforts.

Explanation

In the Eighth Five Year Plan, the goal was to achieve an annual growth rate of 5.6%, but the actual growth rate reached was 6.7%.

Explanation

The New Exim Policy announced in 1992 was set to be in place for a duration of five years, specifically from April 1, 1992, to March 31, 1997.