UPSC Prelims 2019
Indian Economy Previous Year Questions (PYQs)
Explore 23 solved UPSC Prelims 2019 Indian Economy questions with detailed step-by-step bilingual solutions, option analysis, and answer keys.
With reference to India’s Five-Year Plans, which of the following statements is/are correct?
- From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries.
- The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
- In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
Detailed Explanation:
Answer: Option 1 — 1 and 2 only
This question tests knowledge of the evolution of India's Five-Year Plans and their changing objectives. Statements 1 and 2 are correct as they accurately reflect the industrial thrust of the Second Plan and the equity focus of the Fourth Plan, while Statement 3 is incorrect regarding the timing of financial sector integration.
✅ Statement 1 – Correct: The Second Five-Year Plan (1956-1961), based on the Mahalanobis Model, emphasized rapid industrialization with a determined thrust on substitution of basic and capital goods industries to build a strong industrial base.
✅ Statement 2 – Correct: The Fourth Five-Year Plan (1969-1974) adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power through measures like nationalization of 14 major banks (1969) and the MRTP Act.
❌ Statement 3 – Incorrect: The financial sector was not included as an integral part of planning during the Fifth Five-Year Plan (1974-1979); it was integrated from the Ninth Five-Year Plan (1997-2002) onwards.
📝 Short Notes: India's Five-Year Plans - Key Features
| Five-Year Plan | Period | Key Focus/Features |
|---|---|---|
| First Plan | 1951-1956 | Agriculture, irrigation, power; based on Harrod-Domar model |
| Second Plan | 1956-1961 | Rapid industrialization; Mahalanobis Model; focus on heavy and basic industries |
| Third Plan | 1961-1966 | Self-reliance and self-sustained growth; faced setbacks due to wars and droughts |
| Fourth Plan | 1969-1974 | Growth with stability; correcting wealth concentration; bank nationalization (1969) |
| Fifth Plan | 1974-1979 | Garibi Hatao; poverty alleviation and employment generation; terminated in 1978 |
| Ninth Plan | 1997-2002 | Financial sector integrated as part of planning; economic reforms consolidation |
Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, command the payment system providers that
- they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India
- they shall ensure that the systems are owned and operated by public sector enterprises
- they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 1 — 1 only
The RBI's directive on 'Storage of Payment System Data' (issued in April 2018) primarily mandates that all payment system operators must store the entire data relating to payment systems operated by them in systems located only within India. This is aimed at ensuring better supervision, data security, and regulatory oversight.
✅ Statement 1 – Correct: The directive explicitly requires that entire payment system data must be stored in systems located only in India, with a compliance deadline originally set for October 2018.
❌ Statement 2 – Incorrect: There is no requirement in the directive that the storage systems must be owned and operated by public sector enterprises; private entities can also comply as long as data is stored within India.
❌ Statement 3 – Incorrect: The directive does not mandate submission of consolidated system audit reports to the Comptroller and Auditor General of India; such reporting is typically required only for government entities.
📝 Short Notes: RBI Data Localization Directive
| Aspect | Details |
|---|---|
| Official Name | Storage of Payment System Data directive |
| Issued By | Reserve Bank of India (RBI) |
| Year of Issue | April 2018 |
| Core Requirement | All payment system data must be stored only in India |
| Affected Entities | All payment system operators (domestic and foreign) |
| Objective | Enhanced data security, better supervisory access, and regulatory oversight |
| Compliance Timeline | Originally 6 months (October 2018) |
| Controversy | Foreign payment companies (Visa, Mastercard, etc.) raised concerns about compliance costs and operational challenges |
Consider the following statements : As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
- if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
- no notice of termination of employment shall be necessary in the case of temporary workman
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 3 — Both 1 and 2
The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 introduced significant changes to employment regulations, particularly regarding Fixed-Term Employment (FTE) and the treatment of temporary workers. Both statements correctly reflect the provisions of these amendments.
✅ Statement 1 – Correct: The 2018 Amendment expanded FTE to all sectors, allowing employers to hire workers for a fixed period via written contract. Crucially, non-renewal of FTE contracts does not constitute retrenchment under the Industrial Disputes Act, thereby making it easier for firms to lay off workers without following complex retrenchment procedures.
✅ Statement 2 – Correct: The rules explicitly state that no notice of termination of employment shall be necessary in the case of temporary workmen, who are engaged for work of an essentially temporary nature. Similarly, for Fixed-Term workers, no notice is required when employment ends due to contract expiry.
📝 Short Notes: Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
| Aspect | Details |
|---|---|
| Year of Amendment | 2018 |
| Key Change | Extended Fixed-Term Employment (FTE) to all sectors (previously limited to apparel manufacturing) |
| Fixed-Term Employment | Worker hired for a fixed period via written contract; eligible for all statutory benefits like permanent workers (pro-rata basis) |
| Termination in FTE | Non-renewal of contract does not amount to retrenchment; no notice required at contract expiry |
| Temporary Workmen | Engaged for work of essentially temporary nature; no notice of termination required |
| Impact on Labour Flexibility | Increases ease of hiring and separation for employers; reduces procedural complexity |
| Industrial Disputes Act | Retrenchment provisions (notice, compensation) do not apply to FTE non-renewal |
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Showing 21 to 23 of 23 questions
UPSC Prelims 2019 - Indian Economy Chapter-wise Distribution
External Sector
6 Qs (26.1%)Money, Banking & Financial System
6 Qs (26.1%)Employment, Poverty & Inclusive Growth
3 Qs (13%)International Trade and Economic Organizations
2 Qs (8.7%)Agriculture
2 Qs (8.7%)Indian Economy: Historical Background & Economic Reforms
1 Qs (4.3%)Infrastructure
1 Qs (4.3%)Industry
1 Qs (4.3%)National Income & Economic Development
1 Qs (4.3%)UPSC Prelims 2019 - Indian Economy Questions FAQs
Q1 How many Indian Economy questions were asked in UPSC Prelims 2019?
Q2 What is the chapter-wise question distribution for Indian Economy in UPSC Prelims 2019?
- External Sector: 6 questions (26.1%)
- Money, Banking & Financial System: 6 questions (26.1%)
- Employment, Poverty & Inclusive Growth: 3 questions (13%)
- International Trade and Economic Organizations: 2 questions (8.7%)
- Agriculture: 2 questions (8.7%)
- Indian Economy: Historical Background & Economic Reforms: 1 questions (4.3%)
- Infrastructure: 1 questions (4.3%)
- Industry: 1 questions (4.3%)
- National Income & Economic Development: 1 questions (4.3%)