UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the International Relations Quiz.

1. It provides a logistics facility away from a seaport or airport for cargo handling.

2. It does not handle customs clearance procedures.

3. Rajasthan has the maximum number of dry ports in India.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— Bihar Industry minister Nitish Mishra inaugurated the state’s first dry port at Bihta, a town near state capital Patna.

Festive offer

— A dry port, or inland container depot (ICD), provides a logistics facility away from a seaport or airport for cargo handling, storage, and transportation. It acts as a bridge between sea/air ports and inland regions, facilitating efficient movement of goods. Hence, statement 1 is correct.

— Bihar is a major producer of fruits and vegetables such as potato, tomato, banana, litchi and makhana (fox nuts). It also has significant export capacities of maize (with 11 of 38 Bihar districts focusing on maize production), sponge iron, packed food, waste paper, newsprint, rice, and meat.

— The best part of a dry port is that it handles customs clearance proceduresreducing congestion at seaports/airports. Hence, statement 2 is not correct.

— As of April 2022, the maximum number of dry ports are in Tamil Nadu and Haryana with 11 dry ports. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

QUESTION 2

With reference to the agricultural households, consider the following statements:

1. The all-India average monthly income of agricultural households in 2021-22 was less than the non-agricultural rural households.

2. Within agricultural households, the contribution of cultivation and animal husbandry to total income in 2021-22 has decreased from 2016-17.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— The All India Rural Financial Inclusion Survey for 2021-22 found that 57% of rural households in the country — including households in semi-urban centers with a population of less than 50,000 — were “agricultural”. This was significantly higher than the 48% reported in the previous survey of 2016-17.

— The survey, commissioned by the National Bank for Agriculture & Rural Development (NABARD), defined an “agricultural household” as one that (i) reported a total value of produce from farming exceeding Rs 6,500 (be it cultivation of field and horticulture crops , livestock and poultry rearing, or aquaculture, sericulture and apiculture); and (ii) had at least one member who was self-employed in such activities during the reference year (July 2021 to June 2022). In the 2016-17 survey, the threshold cut-off value of produce was Rs 5,000.

— The all-India average monthly income of agricultural households, at Rs 13,661 in 2021-22, was more than the Rs 11,438 for non-agricultural rural households. Hence, statement 1 is not correct.

— Within agricultural households, the contribution of cultivation and animal husbandry to total income was over 45% in 2021-22, up from 43.1% in 2016-17. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

QUESTION 3

With reference to India’s solar capacity, consider the following statements:

1. India has added 15 GW of solar capacity in 2023-24, bringing the total to 90.8 GW by September 2024.

2. India aims to achieve the 500 GW target by 2040.

3. Maximum solar energy contribution is provided by the grid connected solar rooftop.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 1 only

(d) 2 and 3 only

Explanation

— India’s ambitious goal of installing 500 GW of renewable energy capacity by 2030 may drive the country’s annual solar equipment imports to around $30 billion due to heavy reliance on Chinese goods, Global Trade Research Initiative (GTRI) has said. Hence, statement 2 is not correct.

— The think tank has emphasized on the need for India to develop a self-reliant solar manufacturing ecosystem, particularly in key areas such as polysilicon and wafer production.

— India has added 15 GW of solar capacity in 2023-24, bringing the total to 90.8 GW by September, a significant increase from just 2.8 GW in 2014. Hence, statement 1 is correct.

— In 2023-24, India imported solar equipment worth $7 billion, with China supplying 62.6 percent. China’s dominance in global solar manufacturing—controlling 97 percent of polysilicon production and 80 percent of solar modules—makes it challenging for other countries to compete.

— Solar Power (Cumulative) Contribution from different sources (90.76 GW)

(i) Ground Mounted Solar Plant : 70.05 GW Hence, statement 3 is not correct.

(ii) Grid Connected Solar Rooftop: 14.30 GW

(iii) Hybrid Projects (Solar Component) : 2.63 GW

(iv) Off-Grid Solar: 3.78 GW

Therefore, option (c) is the correct answer.

(Other Source: mnre.gov.in)

QUESTION 4

Which of the following are the benefits of the agroforestry system?

1. Improve microclimate

2. Increase of surface run-off

3. Improvement in soil nutrients

4. Increase in evaporation of soil moisture through mulching and shading

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2 and 3 only

(c) 1, 2, 3 and 4

(d) 1 and 3 only

Explanation

— Agroforestry is defined as the cultivation and use of trees and shrubs with crops and livestock in agricultural systems. It aims at achieving a more ecologically diverse and socially productive output from the land than is possible through conventional agriculture.

— Agroforestry seeks positive interactions between its components and is also known as ‘social forestry’. It involves raising trees and agricultural crops either on the same land or in close association in such a way that all land including the waste patches is put to good use.

— It applies agricultural practices that are compatible with the cultural patterns of the local population and has many benefits.

Benefits of agroforestry system

(i) Reduced pressure on natural forests.

(ii) Improved nutrient recycling by the site’s deep-rooted plants

(iii) Improved protection for ecological systems

(iv) Reduced surface runoffnutrient leaching, and soil erosion by obstructing these processes with tree roots and stems. Hence, 2 is not correct.

(v) Improve microclimatesuch as lowering soil surface temperature and reducing evaporation of soil moisture by a combination of mulching and shadowing. Hence, 1 is correct and 4 is not correct.

(v) Increase soil nutrient levels through litterfall addition and breakdown. Hence, 3 is correct.

(vii) Improved soil structure with the continuous addition of organic materials from degraded litter.

Therefore, option (d) is the correct answer.

(Other Source: agritech.tnau.ac.in)

QUESTION 5

With reference to the indexation, consider the following statements:

1. It is the process of adjusting the original purchase price of an asset in order to neutralize the impact of inflation on it.

2. The Union Budget for 2024-25 removed the indexation benefit available for calculation of long-term capital gains (LTCG) on gold.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— The changes in the long-term capital gains (LTCG) tax regime, particularly the withdrawal of the indexation benefit, has emerged as one of the most contentious decisions announced in the Union Budget for 2024-25.

— Indexation is the process of adjusting the original purchase price of an asset or investment in order to neutralize the impact of inflation on it. Hence, statement 1 is correct.

— Inflation diminishes the value of money over time, thus when an asset is sold or an investment is redeemed, indexation aids in determining the cost of acquisition while accounting for the impact of inflation throughout the holding period.

— Finance Minister Nirmala Sitharaman’s revised LTCG regime, proposed in the Union Budget for 2024-25, eliminates the indexation advantage used to calculate LTCG on property, gold, and other unlisted assets while lowering the LTCG tax rate from 20 percent to 12.5 percent . Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 81)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 81)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 81)

Daily subject-wise quiz — Economy (Week 80)

Daily subject-wise quiz – International Relations (Week 80)

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

Stay updated with the latest UPSC articles by joining our Telegram channelIndianExpress UPSC Huband follow us on Instagram and X.