UPSC Prelims 2017 Question Paper

Detailed Explanation:

Answer: Option 2 — 2 only

The Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) deals with transactions where property is held by one person (benamidar) but is actually owned or financed by another person (beneficial owner). Only Statement 2 is correct, as the Act explicitly provides for confiscation of benami properties by the Central Government.

❌ Statement 1 – Incorrect: A transaction is specifically treated as benami if the owner of the property (benamidar) is not aware of the transaction or denies knowledge of it; lack of awareness does not exempt it but rather characterizes it as benami.

✅ Statement 2 – Correct: Section 5 of the PBPT Act clearly states that properties held benami are liable for confiscation by the Central Government.

❌ Statement 3 – Incorrect: The Act provides for four authorities (Initiating Officer, Approving Authority, Administrator, and Adjudicating Authority) and does provide an appellate mechanism through the Appellate Tribunal and subsequently the High Court.

Detailed Explanation:

Answer: Option 3 — Both 1 and 2

The National Intellectual Property Rights Policy, adopted in 2016, explicitly reiterates India's commitment to international IPR frameworks including the TRIPS Agreement and the Doha Development Agenda, which provides flexibilities for developing nations. The Department for Promotion of Industry and Internal Trade (DPIIT), formerly known as the Department of Industrial Policy and Promotion, serves as the nodal agency for IPR policy formulation and implementation in India.

✅ Statement 1 – Correct: The National IPR Policy reiterates India's commitment to the Doha Development Agenda and the TRIPS Agreement, ensuring access to flexibilities like compulsory licensing for affordable medicines.

✅ Statement 2 – Correct: The Department of Industrial Policy and Promotion (now DPIIT) under the Ministry of Commerce and Industry is indeed the nodal agency for regulating and implementing IPR policy in India.

Detailed Explanation:

Answer: Option 3 — Both 1 and 2

The National Agriculture Market (e-NAM) is a pan-India electronic trading portal that integrates existing APMCs into a unified national market for agricultural commodities. It provides farmers access to nationwide markets with transparent price discovery based on quality parameters, thereby enabling them to get better prices for their produce.

✅ Statement 1 – Correct: e-NAM is indeed a pan-India electronic trading portal that connects agricultural mandis across the country through an online platform, facilitating electronic trading of agricultural commodities.

✅ Statement 2 – Correct: The scheme provides farmers access to a wider market beyond their local mandis, with prices determined based on quality standards and real-time price discovery, helping them get remunerative prices commensurate with the quality of their produce.

Detailed Explanation:

Answer: Option 4 — Neither 1 nor 2

Both statements are incorrect because neither tax revenue nor fiscal deficit as a percent of GDP has shown a steady increase over the last decade. Instead, both indicators have fluctuated significantly based on economic cycles, policy changes, and external shocks like the COVID-19 pandemic.

❌ Statement 1 – Incorrect: Tax revenue as a percent of GDP has fluctuated over the last decade rather than steadily increasing. While there were periods of growth, years like 2019–20 and 2020–21 saw declines due to economic slowdown and pandemic-related disruptions, making the overall trend non-linear.

❌ Statement 2 – Incorrect: Fiscal deficit as a percent of GDP has not steadily increased either. It actually narrowed from around 4.5% in 2013–14 to about 3.4% in 2018–19, then spiked dramatically to 9.2% in 2020–21 due to COVID-19, and has since been declining, showing a fluctuating rather than steadily increasing pattern.

Detailed Explanation:

Answer: Option 1 — 1 only

The Goods and Services Tax (GST) is a comprehensive indirect tax reform that replaced multiple central and state taxes, creating a unified national market. This simplifies tax compliance, reduces cascading effects, and promotes ease of doing business across India.

✅ Statement 1 – Correct: GST replaced numerous indirect taxes levied by central and state authorities (like excise duty, VAT, service tax, etc.), creating a single unified market by removing inter-state barriers and simplifying the tax structure.

❌ Statement 2 – Incorrect: GST is a domestic indirect tax reform and has no direct mechanism to reduce Current Account Deficit, which depends on trade balance, foreign investments, remittances, and exchange rate dynamics.

❌ Statement 3 – Incorrect: While GST can contribute to economic efficiency and growth, it alone cannot drastically increase economy size to overtake China, as economic growth depends on multiple complex factors including capital formation, technology, demographics, and global economic conditions.

Detailed Explanation:

Answer: Option 2 — 2, 3 and 4 only

After the 1991 economic liberalization, India witnessed significant structural changes in its economy. The service sector expanded rapidly while agriculture's contribution to GDP declined, foreign trade and investment increased substantially, and forex reserves grew dramatically due to improved external sector management.

❌ Statement 1 – Incorrect: The share of agriculture in GDP has consistently decreased since 1991, falling from around 30% to approximately 15-18%, as the service and industrial sectors expanded.

✅ Statement 2 – Correct: India's share in world exports increased from less than 0.5% in 1991 to around 1.7-2% currently, reflecting greater global economic integration.

✅ Statement 3 – Correct: FDI inflows increased dramatically from negligible amounts (less than $100 million annually) in the pre-liberalization era to billions of dollars annually post-1991.

✅ Statement 4 – Correct: India's foreign exchange reserves grew enormously from about $1 billion in 1991 (barely covering 2 weeks of imports) to over $600 billion in recent years, reflecting improved macroeconomic stability.

Detailed Explanation:

Answer: Option 1 — 1 only

✅ Statement 1 – Correct: The Bureau of Indian Standards (BIS) Standard Mark is mandatory for automotive tyres and tubes as per BIS regulations to ensure quality and safety standards.

❌ Statement 2 – Incorrect: AGMARK is a quality certification mark issued by the Directorate of Marketing and Inspection (DMI), Government of India, not by the Food and Agriculture Organisation (FAO).

Detailed Explanation:

Answer: Option 3 — Both 1 and 2

The National Payments Corporation of India (NPCI) is an umbrella organization established to promote retail payments and financial inclusion by developing payment infrastructure and enabling wider participation in the digital payments ecosystem. Both statements correctly describe NPCI's role and initiatives.

✅ Statement 1 – Correct: NPCI promotes financial inclusion by developing innovative payment systems like UPI, IMPS, and RuPay, which enable affordable and accessible digital payment solutions for all segments of society, including the unbanked and underbanked populations.

✅ Statement 2 – Correct: NPCI launched RuPay in 2012 as India's domestic card payment network to provide an alternative to international schemes like Visa and Mastercard, thereby reducing transaction costs and promoting indigenous payment infrastructure.

Detailed Explanation:

Answer: Option 3 — EU

The Digital Single Market Strategy is a flagship initiative of the European Union (EU) launched in 2015 to create a unified digital market across all 28 member states. This strategy aims to remove regulatory barriers, ensure better access to digital goods and services, and create a level playing field for digital businesses across Europe. It focuses on areas like e-commerce, data protection, digital copyright, and reducing geo-blocking to foster innovation and economic growth in the European digital economy.

Detailed Explanation:

Answer: Option 2 — 3 only

The Soil Health Card Scheme primarily aims to promote balanced and judicious use of fertilizers by providing farmers with soil nutrient status information. This helps in checking the overuse of fertilizers in farmlands, thereby improving soil health and reducing environmental damage.

❌ Statement 1 – Incorrect: Expanding cultivable area under irrigation is not an objective of the Soil Health Card Scheme; it focuses on soil nutrient management, not irrigation expansion.

❌ Statement 2 – Incorrect: Banks do not use soil health cards to assess loan quantum; agricultural loans are based on factors like land ownership, crop type, credit history, and repayment capacity, not soil quality data.

✅ Statement 3 – Correct: The scheme aims to check overuse of fertilizers by informing farmers about actual soil nutrient requirements, thereby promoting judicious fertilizer application and preventing soil degradation.

Detailed Explanation:

Answer: Option 1 — 1 and 2 only

Small Finance Banks (SFBs) were established by the Reserve Bank of India to promote financial inclusion by providing basic banking services to the unserved and underserved sections of the population. Their primary objective is to supply credit to small business units, small and marginal farmers, micro and small industries, and unorganized sector entities.

✅ Statement 1 – Correct: SFBs are specifically designed to provide credit facilities to small business units as part of their core mandate for financial inclusion.

✅ Statement 2 – Correct: Providing credit to small and marginal farmers is one of the primary objectives of SFBs to support agricultural and rural development.

❌ Statement 3 – Incorrect: While SFBs may indirectly benefit young entrepreneurs, their primary purpose is not specifically to encourage young entrepreneurs to set up businesses in rural areas; this is more aligned with schemes like MUDRA or Stand-Up India.

Detailed Explanation:

Answer: Option 4 — Neither 1 nor 2

The National Investment and Infrastructure Fund (NIIF) is India's first sovereign wealth fund established by the Government of India in February 2015 to provide long-term capital for infrastructure projects. It is registered with SEBI as a Category II Alternative Investment Fund, not an organ of NITI Aayog.

❌ Statement 1 – Incorrect: NIIF is not an organ of NITI Aayog; it is an independent sovereign wealth fund registered with SEBI as an Alternative Investment Fund.
❌ Statement 2 – Incorrect: The initial corpus was Rs. 20,000 crores from the Government of India as announced in Union Budget 2015-16, not Rs. 4,00,000 crores.

Detailed Explanation:

Answer: Option 3 — Both 1 and 2

The Quality Council of India (QCI) was established in 1997 as a joint initiative by the Government of India and Indian Industry, represented by ASSOCHAM, CII, and FICCI, to establish national accreditation structures and promote quality standards. The organization is governed by a Council, and its Chairman is appointed by the Prime Minister based on recommendations from the industry to the government.

✅ Statement 1 – Correct: QCI was set up jointly in 1997 by the Government of India and Indian Industry (represented by ASSOCHAM, CII, and FICCI) to establish national accreditation structures and promote quality through the National Quality Campaign.
✅ Statement 2 – Correct: The Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government, making it a unique public-private partnership governance model.

Detailed Explanation:

Answer: Option 1 — 1 only

The Monetary Policy Committee (MPC) is the primary body responsible for deciding the RBI's benchmark interest rates, particularly the repo rate, which influences the overall monetary policy stance of the country. Only statement 1 is correct, while statements 2 and 3 contain factual inaccuracies regarding the composition and chairmanship of the MPC.

✅ Statement 1 – Correct: The MPC is mandated to decide the RBI's benchmark interest rates, especially the repo rate, which is the key policy rate for monetary policy decisions.

❌ Statement 2 – Incorrect: The MPC is a 6-member body (not 12), consisting of three members from the RBI (including the Governor) and three external members appointed by the Central Government for a four-year term; it is not reconstituted annually.

❌ Statement 3 – Incorrect: The MPC functions under the chairmanship of the Governor of RBI, not the Union Finance Minister.

Detailed Explanation:

Answer: Option 2 — 2 only

This question tests knowledge of Buddhist philosophical schools, not Jainism or theatre. Statement 1 incorrectly identifies Sautrantika and Sammitiya as Jain sects when they were actually Buddhist schools. Statement 2 correctly describes the Sarvastivada doctrine of permanent existence of dharmas across past, present, and future.

❌ Statement 1 – Incorrect: Sautrantika and Sammitiya were Buddhist philosophical schools, not Jain sects; Sautrantika emphasized sutras over Abhidharma, while Sammitiya upheld the existence of a self (pudgala).

✅ Statement 2 – Correct: Sarvastivadins held the doctrine "sarvam asti" (everything exists), believing that dharmas (constituents of phenomena) existed permanently in latent form across all three times rather than being wholly momentary.

Detailed Explanation:

Answer: Option 1 — 1 only

This question tests the correct matching of cultural traditions with their associated communities. Only the first pair is correctly matched, as Chaliha Sahib is indeed a Sindhi Hindu festival, while the other two pairs incorrectly associate traditions with communities.

✅ Pair 1 – Correct: Chaliha Sahib (also called Chalio or Chaliho) is a forty-day-long festival celebrated by the Hindu Sindhi community, observed in honor of Jhulelal (Uderolal), the patron saint of Sindhis.

❌ Pair 2 – Incorrect: Nanda Raj Jaat Yatra is a pilgrimage festival associated with the people of Uttarakhand (particularly the Garhwal region), not the Gond community, which is an indigenous tribe of central India.

❌ Pair 3 – Incorrect: Wari-Warkari is a pilgrimage tradition associated with devotees of Lord Vitthal (Vithoba) in Maharashtra, primarily involving the Marathi-speaking community, not the Santhals, who are an indigenous tribe of eastern India.

Detailed Explanation:

Answer: Option 1 — Ajanta

The painting of Bodhisattva Padmapani is one of the most celebrated masterpieces of Indian art, located in Cave 1 of the Ajanta Caves in Maharashtra. This exquisite mural depicts the compassionate Bodhisattva holding a lotus (padma), showcasing exceptional artistic skill, graceful composition, and spiritual depth that exemplifies the zenith of Buddhist cave art (5th-6th century CE).

Why other options are incorrect:
Badami: Known for rock-cut Hindu, Jain, and Buddhist temples built by the Chalukyas (6th-8th century CE), but not famous for the Padmapani painting.
Bagh: These caves in Madhya Pradesh have Buddhist paintings similar in style to Ajanta, but the iconic Padmapani is specifically at Ajanta.
Ellora: Famous for rock-cut temples of three religions and the monolithic Kailasa temple, but the Padmapani painting is not found here.

Detailed Explanation:

Answer: Option 2 — 1 and 3 only

Manipuri Sankirtana is a traditional performance art form from Manipur that combines singing, drumming, and dancing to narrate the life and deeds of Lord Krishna. It uses multiple musical instruments, not just cymbals.

✅ Statement 1 – Correct: Manipuri Sankirtana is indeed a song and dance performance that combines singing, dancing, and drumming as an integral part of Vaishnavite traditions in Manipur.
❌ Statement 2 – Incorrect: Besides cymbals (Kartal), Manipuri Sankirtana uses several other instruments including the Pung (barrel-shaped drum), which is the primary percussion instrument, along with Harmonium and other instruments.
✅ Statement 3 – Correct: The performance is primarily dedicated to narrating the life, deeds, and leelas (divine plays) of Lord Krishna, forming a core aspect of Manipuri Vaishnavism and religious congregation.

Additional Information: Manipuri Sankirtana was inscribed on UNESCO's Representative List of Intangible Cultural Heritage of Humanity in 2013, recognizing its significance as a living tradition that encompasses ritual singing, drumming and dancing performed in temples and domestic spaces in Manipur.

Detailed Explanation:

Answer: Option 1 — 1 only

Among the given options, only Arasavalli is famous for its Sun temple. The Suryanarayana Temple at Arasavalli in Andhra Pradesh is a renowned 7th-century Sun temple built by the Eastern Ganga Dynasty, architecturally designed so that sun rays fall on the deity's feet twice annually.

✅ Statement 1 – Correct: Arasavalli in Srikakulam district, Andhra Pradesh, is home to the famous 7th-century Suryanarayana Sun Temple built by King Devendra Varma of the Eastern Ganga Dynasty.
❌ Statement 2 – Incorrect: Amarakantak in Madhya Pradesh is known as the source of Narmada River and houses Kalachuri dynasty temples, but is not famous for a Sun temple.
❌ Statement 3 – Incorrect: Omkareshwar in Madhya Pradesh is one of the 12 Jyotirlingas dedicated to Lord Shiva and is a Shaivite pilgrimage center, not known for a Sun temple.

Detailed Explanation:

Answer: Option 3 — 1 and 3 only

This question tests the comparative understanding of Rigvedic Aryan culture and Indus Valley Civilization. Statement 1 and Statement 3 are correct, while Statement 2 contains a factual error regarding metallurgical knowledge.

✅ Statement 1 – Correct: Rigvedic Aryans used protective warfare equipment like 'varman' (coat of mail) and helmets, whereas the Indus Valley Civilization, being primarily a peaceful urban society, has not yielded archaeological evidence of such military gear.

❌ Statement 2 – Incorrect: The Indus Valley people were part of a Bronze Age civilization and knew gold, silver, copper, and bronze (not iron). Rigvedic Aryans also knew gold, silver, and copper but not iron initially. The statement incorrectly claims IVC people knew only copper and iron, which is factually wrong on both counts.

✅ Statement 3 – Correct: The horse was central to Rigvedic Aryan culture with extensive mentions in the Rigveda, whereas there is no clear, widespread evidence of horse domestication or awareness in the Indus Valley Civilization.