IAS Prelims GS Questions and Answers - June 19 & 20, 2016

1)   What is also known as Cashmere?

a. Pashmina
b. Muslin
c. Cotton
d. Silk
Answer  Explanation 

ANSWER: Pashmina

Explanation:

  • Pashmina, internationally known as "Cashmere", a fine luxury fibre is being produced from Changthang goats bred in the Ladakh region of India.
  • Pashmina producing goats are of great importance for revitalizing the economy of the Changthang and the Leh district of Ladakh which produces more than 80 percent of the total Pashmina yield of the country.
  • Common usage defines the fiber as wool but is finer and softer, giving its characteristics as compared to sheep's wool. It is not obtained from sheep but is obtained from goat.


2)   Which of the following can be used for treatment of waste waters?

1) Canna indica
2) Typha
3) Water hyacinth


a. 1, 3
b. 2, 3
c. 1, 2
d. All of the above
Answer  Explanation  Related Ques

ANSWER: All of the above

Explanation:

  • The Water4crops project has shown remarkable success by aiding the construction of wetlands containing plant species such as Canna indica, lemon grass (Cymbopogon), napier (Pennisetum perpureum X Pennisetum americarnum), para grass (Urochloa mutica), typha (Typha latifolia), water hyacinth (Eichhornia crassipes), water lettuce (Pistia stratiotes) and a weed species Agaratum Conyzoides.
  • These plant species absorb harmful toxins as well as nutrients such as nitrogen, phosphorus, potash, inter alia, that contaminate the water due to overuse of chemical fertilizers in the agriculture sector.
  • Canna indica sps. can be used for the treatment of industrial waste waters through constructed wetlands. It is effective for the removal of high organic load, colour and chlorinated organic compounds from paper mill wastewater.


3)   Which of the following are the key highlights of the Automotive Mission Plan 2026?

1) Create 65 million jobs
2) Implementing End of Life Policy for automotive vehicles and components
3) Contribute over 5 percent to India's GDP


a. 1, 2
b. 1, 3
c. 2, 3
d. All of the above
Answer  Explanation  Related Ques

ANSWER: 1, 2

Explanation:
The vision of AMP 2026 is “By 2026, the Indian Automotive industry will be among the top three of the world in engineering , manufacture and export of vehicles and components, and will encompass safe, efficient and environment friendly conditions for affordable mobility of people and transportation of goods in India comparable with global standards, growing in value to over 12% of India’s GDP, and generating an additional 65 million jobs.” The salient features of AMP 2026 are

  • Contribute over 12 percent to India's GDP.
  • The Indian Automotive industry to be a top job creator – 65 million additional jobs.
  • The Indian Automotive industry to be the prime mover of Manufacturing sector and “Make in India” Programme.
  • The Indian Automotive industry to aim at increasing exports of vehicles by 5 times and Components by 7.5 times.
  • AMP envisages implementing End of Life Policy for automotive vehicles and components.
  • BSV norms to be adopted by 2019 and BSVI norms to be implemented 2023 for passenger vehicle.


4)   Which of the following is/are true regarding National Policy on Capital Goods?

1) It ensures Mandatory Standardization.
2) It plans to create a 'Start-up Center for Capital Goods Sector'.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation 

ANSWER: Both 1 and 2

Explanation:
Some important recommendations made in National Capital Goods Policy are -

  • To integrate with Make in India initiative:
  • To create an enabling scheme as a pilot for 'Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)
  • To launch a Technology Development Fund under PPP model to fund technology acquisition
  • To create a 'Start-up Center for Capital Goods Sector'
  • To ensure Mandatory Standardization
  • To upgrade development, testing and certification infrastructure.
  • To enhance Skill development: to set up 5 regional State-of-the-Art Greenfield Centres of Excellence for skill development of CG sector.
  • To provide schemes for enhancing competitiveness through a cluster approach
  • To modernize the existing CG manufacturing units, especially SMEs.


5)   Which of the following are suggestions for improving land trade between India and Myanmar?

1) Border Haats
2) Improving banking facilities
3) Improving security in the area


a. 2, 3
b. 1, 2
c. 1, 3
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:

  • One of the mechanisms to increase border trade are the Border Haats that play a facilitating role of enabling local trade and increasing people-to-people contacts and promoting the well-being of the people in areas of difficult access across the borders of two countries.
  • Overall, to increase border trade which can be conducted in an unfettered way as ‘normal trade’, actions focusing on laboratory testing at border, warehousing and storage facilities, certificate of origin related facilities, integrated check posts, border haats, trade promotion activities and most importantly improving banking facilities and bridging information gap need to be stepped-up along with focusing on security situation in the region.
  • Moreh in Manipur is an important location along the Indo-Myanmar border for trade.


6)   Which of the following is/are true regarding draft of the GST bill proposed?

1) GST will be payable on transaction value i.e. the price which does not include expense such as packing, commission, etc.
2) There are two types of GST proposed (Centre and State) instead of a single one.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation  Related Ques

ANSWER: Only 2

Explanation:

  • All forms of "supply" of goods and services such as sale, transfer, barter, exchange, license, rental, lease and import of services of goods and services made for a consideration will attract CGST (central levy) and SGST (state levy).
  • States will draft their own State GST based on the draft model law with minor variations.
  • As GST will apply on "supply", the erstwhile taxable heads such as "manufacture", "sale" and "provision of services", among others, will lose relevance.
  • With GST to be applicable according to whether a transaction is "intra-state" or "inter-state", separate provisions are there to help an assessee determine the place of supply for goods and services.
  • GST would be payable on "transaction value", being the price actually paid or payable, and said to include all expenses in relation to sale, such as packing and commission.


7)   Which of the following are true regarding new FDI norms?

1) 74% FDI under automatic route in brownfield pharmaceuticals is permitted.
2) 100% FDI under automatic route in Brownfield Airport projects.
3) Local sourcing norms up to three years have been relaxed for Single Brand Retail having state-of-art technology.


a. 2, 3
b. 1, 3
c. 1, 2
d. All of the above
Answer  Explanation  Related Ques

ANSWER: All of the above

Explanation:

  • The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.
  • The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route. With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.
  • It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.


8)   Which of the following is/are true regarding new FDI norms in Defence Sector?

1) Currently FDI above 49% is not allowed under any route in the Defence Sector.
2) FDI limit for defence sector is applicable to Manufacturing of Small Arms and Ammunitions.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation  Related Ques

ANSWER: Only 2

Explanation:

  • Present FDI regime permits 49% FDI participation in the equity of a company under automatic route. FDI above 49% is permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:
  • Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with.
  • FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.


9)   Which of the following is/are true regarding new FDI norms in Defence Sector?

1) FDI in Animal Husbandry is not permitted at all.
2) 100% FDI under government approval route is permitted for trading in food products manufactured in India.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation  Related Ques

ANSWER: Only 2

Explanation:

  • As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions. It has been decided to do away with this requirement of ‘controlled conditions’ for FDI in these activities.
  • 100% FDI under government approval route is permitted for trading, including through e-commerce, in respect of food products manufactured or produced in India.