Indian Economy - General awareness questions on current affairs

1)   Karang, a small lake island in Manipur reached which important milestone?
- Published on 19 Jan 17

a. First cashless island
b. First ODF island
c. First island to have wireless technology
d. None of the above
Answer  Explanation 

ANSWER: First cashless island

Karang, a small lake island in Manipur has become the first cashless island.

The Union Ministry of Electronics and Information Technology under the Digital India programme declared this is the first cashless island in India.

The island has fulfilled the necessary criteria of the Centre.

Karang is located in the middle of Loktak, the largest freshwater lake in NE India.

Akodara was the first digital village in India in 2015.

2)   Post demonetisation, IMF has cut down the Indian growth rate to what percent?
- Published on 17 Jan 17

a. 6.3
b. 6.4
c. 6.5
d. 6.6
Answer  Explanation  Related Ques


IMF has cut down India's growth rate for the current fiscal year to 6.6 percent. The previous estimate was 7.6%.

The slowing of the growth rate is on account of temporary negative consumption shock of demonetisation after the WB decelerated India's growth estimates.

Growth forecast for the current and next fiscal year were trimmed by one percentage and 0.4 percentage points, due to temporary negative consumption shock .

This has been caused by cash shortage and payment disruption noted with recent currency note withdrawal and exchange, as per World Economic Outlook released by the IMF.

IMF also said after a lackluster outturn in 2016, economic activity will pick up in the next 2 years. This is more so for the emerging market and developing economies.

Global growth for 2016 is now 3.1 percent in line with the Oct 2016 forecast.

The economic activities in emerging markets and developing economies/EMDEs is to accelerate in 2017-2018 with global growth at 3.4 and 3.6 percent respectively.

India's growth in 2017 is projected at growth rate of 7.2% as against previous growth forecast of 7.6 percent.

Indian economy is expected to revive with 7.7% growth in 2018.

Cut in the growth rate comes after WB decelerated India's GDP growth for 2016-2017 fiscal to 7 percent from previous estimate of 7.6 percent citing impact of demonetisation.

India would regain momentum in coming years. India continues to be among the fastest growing countries in the emerging economies.

In 2016, China with a growth percentage of 6.7% has outperformed India. IMF has forecasted China's growth rate to 6.5% for 2017 based on continued policy support.

In 2018, China is projected to grow at 6 percent against India's 7.7%.

IMF: Know More

  • Abbreviation stands for: International Monetary Fund
  • Formation: 27 December 1945
  • Type: International financial institution
  • Headquarters: Washington, D.C., United States
  • Membership: 189 countries
  • Official language: English
  • Managing Director: Christine Lagarde
  • Main organ: Board of governors
  • Parent organization: United Nations
  • Staff: 2,700

3)   Central government plans to set up how many electronic manufacturing clusters in 400 towns and cities?
- Published on 13 Jan 17

a. 18
b. 19
c. 20
d. 21
Answer  Explanation 


Centre plans to set up 18 electronics manufacturing clusters in 400 towns and cities. India's electronic manufacturing market will be worth USD 400 billion by 2020 according to some estimates.

Government is focusing on domestic production of technology products, according to Union Minister for Communications, Ravi Shankar Prasad at the Pravasi Haryana Divas 2017.

Digital payment infrastructure and service is set to be a rising industry. Haryana has a lot of potential and possibilities for innovation in the field of digital payment, internet, AI, digital education and cybersecurity.

Considerable potential is there for small and medium level enterprises to grow.

About 42 mobile phone manufacturing companies and 30 component factories have been established in the country.

India has close to 105 crore mobile phones , 10 crore Aadhaar cards, 500 billion internet connections and 350 billion smartphones.

4)   BIS has revised Indian standards on hallmarking _________
- Published on 11 Jan 17

a. Gold ingots
b. Gold biscuits
c. Gold coins
d. Gold jewellery
Answer  Explanation  Related Ques

ANSWER: Gold jewellery

Bureau of Indian Standards (BIS) on 10th Jan said it has revised Indian Standard on gold hallmarking, which is effective from January 1 this year.

Indian standard on gold hallmarking has been revised and has been made effective for implementation with effect from January 1, 2017.

The hallmarked gold jewellery will now be available in three grades of 14 carat, 18 carat and 22 carat.

The caratage will also be marked on jewellery in addition to fineness for convenience of consumers,

For 22 carat jewellery 22K will be marked in addition to 916 (22K916), for 18 carat jewellery 18K will be marked in addition to 750 (18K750) and for 14 carat jewellery, 14K will be marked in addition to 585 (14K585).

Hallmark on gold jewellery will now have four marks.

These are the BIS Mark, the purity in carat and fineness (22K916 for 22 carat), assaying centre's identification mark and jeweller's identification mark.

Know More About BIS

  • The Bureau of Indian Standards (BIS) is the national Standards Body of India.
  • It working under the aegis of Ministry of Consumer Affairs, Food & Public Distribution.
  • Headquarters?: ?Manak Bhawan
  • Agency executive?: ?: Alka Panda, Director General
  • Formed?: ?23 December 1986

5)   Which state has registered India's second highest per capita income in 2016?
- Published on 03 Jan 17

a. Delhi
b. Chandigarh
c. Sikkim
d. None of the above
Answer  Explanation 

ANSWER: Chandigarh

National capital Delhi has registered the highest per capita income among all states and union territories of the country with INR 2,80,000 during 2015-2016, according to the National Statistical handbook.

Delhi's per capita income is three times the national average INR 93,293.

It was followed by Chandigarh and Sikkim with per capital incomes of INR 2,42,386 and INR 2,27,465.

Data released by Oxford Economics in Nov 2016 found Delhi has emerged as the economic capital of India.

It has overtaken Mumbai as per GDP in terms of purchasing power parity.

Chandigarh registered the second highest per capita income at 2.5 times the national average.

Chandigarh’s current figure of INR 2,42,386 is a meagre increase of over INR 1,699, or 0.7 per cent, compared to the previous year when it was INR 2,40,687, a statistical handbook released in Delhi showed.

Delhi’s current figure increased by over INR 28,000, or 13 per cent, compared to the previous year when it was INR 2,52,011.

The per capita income at the national level was found to be INR 93,293 during 2015-16.

6)   According to latest data, over 26 crore accounts have been opened under PMJDY. How many of these are in rural areas, approximately?
- Published on 03 Jan 17

a. 10 crore
b. 12 crore
c. 16 crore
d. None of the above
Answer  Explanation  Related Ques

ANSWER: 16 crore

According to the fresh data released by the Finance Ministry, over 26 crore accounts have been opened under the Pradhan Mantri Jan Dan Yojana across the country till date.

Nearly 16 crore accounts have been opened in rural areas and more than 10 crore in the urban.

Over 71,5000 crore rupees has been deposited in these accounts.

Zero balance accounts have come down by nearly 24%.

Around 20 crore RuPay debit cards have also been issued under the scheme.

The PMJDY was launched in Aug 2014 by PM Narendra Modi to ensure financial inclusion for covering all households with at least one bank account.

More About PMJDY

  • Government scheme launched by government of India.
  • Aims to provide easy access to financial services such as Remittance, Credit, Insurance, Savings, Deposit and Pension.
  • Financial inclusion scheme officially launched on 15th August 2014.
  • East financial access ensured to everyone at national level.

7)   How many tourists visited India in Dec 2016?
- Published on 28 Dec 16

a. 8.91 lakh
b. 8.90 lakh
c. 7.91 lakh
d. 7.90 lakh
Answer  Explanation  Related Ques

ANSWER: 8.91 lakh

Demonetisation did not impact the tourist footfall adversely this year, with 8.91 lakh foreign tourists visited India in Nov 2016.

This marks the growth of 9.3 % over the same month last year.

Foreign tourist arrivals (FTAs) during December 2015 was 8.16 lakh, while it was 7.65 lakh in December 2014.

Foreign Exchange Earnings (FEEs) from tourism during the month of December were INR 14,474 crore as compared to INR 12,649 crore in the same month last year, recording a growth of 14.4 %.

The US accounted for highest share of tourist arrivals followed by the UK and Bangladesh in December 2016, according to an official release.

FTAs during January-December, 2016 were 78.53 lakh, recording a growth of 10.4 % as compared to 71.14 lakh during the corresponding period last year.

FEEs from tourism in January-December were Rs 1,38,845 crore, witnessing an increase of 14.7 % as compared to the INR 1,21,041 crore during the corresponding period last year.

Among the top 15 source countries in December, share of the US was highest with 15.53 %, followed by these:

15 Source countries with Highest Foreign Tourist Arrivals (Dec 2016)

“Country”Highest Foreign Tourist Arrivals (Dec 2016)
US(15.53 %)
UK(11.21 %)
Bangladesh(10.72 %)
Canada(4.66 %)
Russia(4.53 %)
Australia(4.04 %)
Malaysia(3.65 %)
Germany(3.53 %)
China(3.14 %)
France(2.88 %)
Sri Lanka(2.49 %)
Japan(2.49 %)
Singapore(2.16 %)
Nepal(1.46 %)
Thailand(1.37 %)

“Airport”Share of foreign tourists
Among the top 15 ports, the share of Delhi Airport was highest with(32.71 %)
followed by Mumbai Airport(18.51 %)
Chennai Airport(6.83 %)
Bengaluru Airport(5.89 %)
Haridaspur Land check post(5.87 %)
Goa Airport(5.63 %)
Kolkata Airport(3.90 %)
Cochin Airport(3.29 %)
The share of Hyderabad Airport was(3.14 %)
while that of Ahmadabad Airport(2.76 %)
Trivandrum Airport(1.54 %)
Trichy Airport(1.53 %)
Gede Rail(1.16 %)
Amritsar Airport(1.15 %)
Ghojadanga land check post(0.82 %)

8)   RBI has opposed which move of the Watal Committee?
- Published on 21 Dec 16

a. Digital payments
b. Separate entity to regulate payments and settlements
c. Cashless transactions
d. None of the above
Answer  Explanation  Related Ques

ANSWER: Separate entity to regulate payments and settlements

The Reserve Bank of India (RBI) has opposed a move to establish a separate entity to regulate payments and settlements as recommended by Ratan Watal Committee for Digital Payments.

The 11-member committee was formed in September 2016 by the Union Finance Ministry to review existing payment systems in country and recommend appropriate measures for encouraging Digital Payments.

One of the committee’s terms of reference was to study and recommend changes in the regulatory mechanism under various acts such as the RBI Act, Payments and Settlement Act, and the Information Technology Act among others.

Based on this, the committee had recommended making regulation of retail payments independent from the function of RBI to give digital payments boost.

It called for establishing separate Payments Regulatory Board (PRB) as an independent body for retail payments and suggested that RBI’s regulation must be kept only for SIPS (systemically important payment system).

According to RBI, the global practice is that both the SIPS and retail payment systems are under the central bank for a variety of reasons including issues of inter-connectivity between the systems and the role of the central bank as the lender of last resort (LOLR).

RBI has suggested a monetary-policy-committee-style structure for the PRB, where outcomes are decided independently, but implementation remains with the banking regulator.

9)   Which scheme provides for 50% tax and surcharge on declarations of unaccounted cash deposited in banks?

- Published on 19 Dec 16

a. Pradhan Mantri Jan Dhan Yojana
b. Pradhan Mantri Garib Kalyan Yojana
c. Pradhan Mantri Jan Kalyan Yojana
d. None of the above
Answer  Explanation 

ANSWER: Pradhan Mantri Garib Kalyan Yojana

GoI has urged people to take advantage of the last window for disclosing black money and make declarations under the Pradhan Mantri Garib Kalyan Yojana that opens on 17th Dec, 2016.

The Pradhan Mantri Garib Kalyan Yojana provides for 50 percent tax and surcharge on declarations of unaccounted cash deposited in banks.

Declarants also have to park a quarter of the total sum in a non-interest bearing deposit for 4 years.
The government also released an email id and urged people to mail any information about people who have black money.

PMGKY will close on March 31, 2017.

Disclosure under the scheme will attract 50% tax and penalty. Declarations under the black money disclosure scheme will be kept confidential. Information will not be used for prosecution.

Receipt of tax paid on deposited will have to be shown to avail disclosure scheme benefits including immunity from prosecution.

Currently, INR 393 crore of cash and jewellery has been seized of which INR 316 crore is cash and the rest is bullion and jewellery. Of the total INR 316 crore, INR 80 crore is in new currency.

Raids have revealed INR 2600 crore of concealed income.

10)   RBI kept repo rate unchanged at 6.25 percent. What did it abolish?
- Published on 08 Dec 16

a. Temporary 100 percent CRR
b. 30 percent CRR
c. 40 percent CRR
d. None of the above
Answer  Explanation  Related Ques

ANSWER: Temporary 100 percent CRR

Reserve Bank of India (RBI) on 7th Dec 2016 kept its key lending - the repo rate - unchanged at 6.25 percent.

This move ended hopes of lower borrowing costs to arrest the demonetisation-induced slide in spending and investment.

The Monetary Policy Committee felt that the assessment is clouded by the still unfolding effects of the withdrawal of specified bank notes (SBNs).

It also lowered its growth forecast for 2016-17 to 7.1 percent from 7.6 percent earlier.

The MPC also decided to restore the cash reserve ratio (CRR) - the proportion of deposits banks are required to park with the RBI - at 4 percent.

The surge in post-demonetisation liquidity had prompted the RBI to temporarily ask banks to park the entire mountain of additional cash as 100 percent cash reserve ratio (CRR) with the central bank.

RBI revised the ceiling on issuance of securities under the market tabilization scheme (MSS) to INR 6 lakh crore, from the previous limit of INR 30,000 crore for financial year 2016-17.

Banks were not in favour of a higher CRR, as parking funds with the RBI in this window does not fetch any returns, and works against lowering lending rates for final individual and corporate borrowers.

India’s Repo Rate

  • Stands for: Repurchase Option.
  • Since January 2015, the RBI has cut the repo rate six times. India’s retail inflation has touched 4.20 percent in October, triggering hopes of a rate cut.
  • The RBI and the government have set a retail inflation target of 4 per cent for the next five years with an upper tolerance level of 6 percent and lower limit of 2 per cent.
  • Household spending accounts for more than half of India’s GDP.
  • The slowdown in household spending could push back investment growth.

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