UPSC Prelims 2019 Question Paper

Detailed Explanation:

Answer: Option 2 — The major aim of land reforms was providing agricultural land to all the landless.

The primary objective of land reforms in independent India was to achieve social justice and equity by redistributing land from large landowners to the landless and marginal farmers. The policy aimed to ensure that those who actually tilled the soil had ownership rights, thereby reducing rural poverty and inequality.

❌ Option 1 – Incorrect: During the first phase of land reforms (1950s-60s), ceiling laws were applied to individual holdings; only after 1972 national guidelines was the basis shifted to family units.

✅ Option 2 – Correct: The major aim was indeed to provide agricultural land to the landless, ensuring 'land to the tiller' and reducing concentration of land ownership.

❌ Option 3 – Incorrect: Land reforms aimed at improving productivity and equity, but did not specifically result in cash crops becoming the predominant form of cultivation.

❌ Option 4 – Incorrect: Land ceiling laws provided numerous exemptions for plantations (tea, coffee, rubber), orchards, sugarcane farms, and land held by religious, educational, or charitable trusts.

📝 Short Notes: Land Reforms in India

• Abolition of Intermediaries (Zamindari System): First major step was to abolish zamindari and other intermediary tenures, removing rent-collecting intermediaries between the state and cultivators.
• Tenancy Reforms: Aimed to regulate rent, provide security of tenure, and confer ownership rights to tenants.
• Land Ceiling Legislation: Imposed upper limits on landholdings to redistribute surplus land to the landless; initially applied to individuals (1950s-60s), later to family units (post-1972).
• Consolidation of Holdings: Aimed to reduce fragmentation of agricultural land and improve productivity.
• Exemptions: Plantations, orchards, specialized farming, and land held by trusts were often exempted from ceiling laws.
• Implementation Challenges: Benami transfers, poor land records, legal loopholes, and lack of political will led to limited success in achieving redistribution goals.

Detailed Explanation:

Answer: Option 2 — Increase in the banking habits of the population

The money multiplier increases when people deposit more money in banks rather than holding cash. This increases the deposit base available for banks to lend, thereby multiplying the money supply through the credit creation process. Higher banking habits mean lower currency-deposit ratio, which directly increases the money multiplier.

❌ Option 1 – Incorrect: Increase in Cash Reserve Ratio (CRR) reduces the money multiplier as banks must hold more reserves and can lend less.
✅ Option 2 – Correct: Increase in banking habits reduces cash holdings and increases deposits, thereby increasing the money multiplier.
❌ Option 3 – Incorrect: Increase in Statutory Liquidity Ratio (SLR) reduces the money multiplier as banks must hold more liquid assets and have less funds for lending.
❌ Option 4 – Incorrect: Population increase does not directly affect the money multiplier mechanism, which depends on reserve ratios and banking habits.

📝 Short Notes: Money Multiplier

• Money Multiplier Formula: m = 1/r, where r is the reserve ratio (CRR). Alternatively, m = (1 + cdr)/(cdr + rr), where cdr is currency-deposit ratio and rr is reserve ratio.
• Direct Relationship: Money multiplier increases with increase in banking habits (lower currency-deposit ratio) and decreases with increase in reserve requirements.
• Cash Reserve Ratio (CRR): Percentage of deposits banks must maintain with RBI as reserves. Higher CRR → Lower money multiplier.
• Statutory Liquidity Ratio (SLR): Percentage of deposits banks must maintain in liquid assets (gold, government securities). Higher SLR → Lower money multiplier.
• Currency-Deposit Ratio: Ratio of cash held by public to deposits in banks. Lower ratio (higher banking habits) → Higher money multiplier.
• Credit Creation: Banks create money through lending. If initial deposit is ₹100 and CRR is 10%, banks can lend ₹90, which when re-deposited creates ₹81 for further lending, and so on.

Detailed Explanation:

Answer: Option 3 — World Economic Forum

The Global Competitiveness Report (GCR) is an annual publication by the World Economic Forum (WEF) that assesses the competitiveness of countries based on various economic indicators such as infrastructure, macroeconomic stability, health, education, market efficiency, innovation, and institutional strength. The WEF, based in Geneva, Switzerland, uses this report to provide insights into the drivers of productivity and long-term economic growth.

Why other options are incorrect:
❌ Option 1 – International Monetary Fund: The IMF focuses on macroeconomic policies, financial stability, and global monetary cooperation but does not publish the Global Competitiveness Report.
❌ Option 2 – United Nations Conference on Trade and Development: UNCTAD deals with trade, investment, and development issues but is not responsible for the GCR.
❌ Option 4 – World Bank: The World Bank publishes reports on economic development and business environments (like the Ease of Doing Business Report) but not the Global Competitiveness Report.

📝 Short Notes: Major International Economic Reports and Publishers

Detailed Explanation:

Answer: Option 2 — Lead Bank Scheme

The Service Area Approach (SAA) was implemented as an improved version of the area approach under the Lead Bank Scheme. Under SAA, each commercial bank/RRB branch in rural and semi-urban areas is designated to serve 15-25 villages for planned and orderly development, ensuring effective linkages between bank credit, production, productivity, and income enhancement.

📝 Short Notes: Lead Bank Scheme & Service Area Approach

Detailed Explanation:

Answer: Option 2 — 2 and 3 only

The Petroleum and Natural Gas Regulatory Board (PNGRB) was established in 2006, not as India's first regulatory body. Its key mandate includes ensuring competitive markets for gas and protecting consumer interests. Appeals against PNGRB decisions are heard by the Appellate Tribunal for Electricity (APTEL) as per Section 30 of the PNGRB Act, 2006.

❌ Statement 1 – Incorrect: PNGRB (2006) is not the first regulatory body; SEBI (1992), TRAI (1997), and others were established earlier.
✅ Statement 2 – Correct: PNGRB's mandate includes promoting competitive markets for gas as per the PNGRB Act, 2006.
✅ Statement 3 – Correct: Appeals against PNGRB decisions go to the Appellate Tribunal for Electricity (APTEL) under Section 30 of the PNGRB Act, 2006.

📝 Short Notes: PNGRB and Regulatory Bodies

• PNGRB Functions: Regulating refining, processing, storage, transportation, distribution, marketing, and sale of petroleum and natural gas; ensuring competitive markets; protecting consumer interests.
• APTEL: Established under Section 110 of the Electricity Act, 2003; also serves as appellate authority for PNGRB.
• First Regulatory Body Context: India's regulatory architecture began evolving in the 1990s post-liberalization; SEBI was among the earliest sector-specific regulators.

Detailed Explanation:

Answer: Option 2 — Deposits

Deposits are liabilities for a commercial bank, not assets. They represent money that customers have placed with the bank, which the bank is obligated to repay on demand or at a specified time. In contrast, advances (loans), investments, and money at call and short notice are all assets as they represent resources owned by the bank or money owed to it.

📝 Short Notes: Bank Balance Sheet - Assets vs Liabilities

Detailed Explanation:

Answer: Option 4 — Neither 1 nor 2

Both statements about India's external debt are incorrect. Most of India's external debt is owed by non-governmental entities (commercial borrowings, NRI deposits, and trade credit account for the majority), while government debt constitutes a smaller portion. Additionally, India's external debt is denominated in multiple currencies, with US dollar being the largest but not the only component.

❌ Statement 1 – Incorrect: Non-governmental debt (US$ 416.7 billion) far exceeds governmental debt (US$ 104.5 billion), making most external debt non-governmental in nature.

❌ Statement 2 – Incorrect: While US dollar-denominated debt is the largest component (45.9%), India's external debt is also denominated in Indian rupee (24.8%), SDR (5.1%), Japanese yen (4.9%), euro (3.1%), and other currencies.

📝 Short Notes: India's External Debt

Detailed Explanation:

Answer: Option 1 — Maintenance of law and order

The World Bank's Ease of Doing Business Index (discontinued in 2021) measured regulatory efficiency through 10 specific sub-indices that quantified business regulations. Maintenance of law and order, while essential for economic activity, was not one of these measurable indicators. The index focused on specific procedural aspects like paying taxes, registering property, and dealing with construction permits—all of which were official sub-indices.

📝 Short Notes: Ease of Doing Business Index

• Nature: Annual ranking by World Bank measuring business regulation quality and enforcement across 190 economies (discontinued in 2021)
• 10 Sub-Indices: (1) Starting a Business, (2) Dealing with Construction Permits, (3) Getting Electricity, (4) Registering Property, (5) Getting Credit, (6) Protecting Minority Investors, (7) Paying Taxes, (8) Trading Across Borders, (9) Enforcing Contracts, (10) Resolving Insolvency
• Methodology: Each indicator measured specific procedures, time, cost, and legal requirements businesses face
• India's Performance: India improved from 142nd rank (2014) to 63rd rank (2020) through reforms like GST, IBC, and digital initiatives
• Discontinuation: World Bank discontinued the index in 2021 following data irregularities and methodology concerns

Detailed Explanation:

Answer: Option 2 — India

India has consistently been the world's largest exporter of rice since 2012, maintaining its dominant position in the global rice export market. During the five-year period preceding 2019, India accounted for approximately 30% of total global rice exports, far ahead of competitors like Thailand and Vietnam. While China is the world's largest rice producer, it is primarily a consumer and net importer, whereas India has a substantial exportable surplus that it ships to international markets.

📝 Short Notes: Global Rice Trade

• India's Dominance: India has been the world's largest rice exporter since 2012, with exports valued at approximately US$7.4 billion in 2018.
• Export Share: India accounts for about 30-35% of global rice exports, exporting varieties like Basmati and non-Basmati rice to over 150 countries.
• Major Competitors: Thailand (historically the largest exporter until 2012), Vietnam, Pakistan, and the United States are other significant rice exporters.
• China's Position: Despite being the world's largest rice producer, China is a net importer due to high domestic consumption and focuses on self-sufficiency.
• Key Export Destinations: India's major rice export markets include African countries, Middle East nations, Bangladesh, Nepal, and European countries.
• Basmati Advantage: India enjoys a monopoly in premium Basmati rice exports along with Pakistan, commanding premium prices in international markets.

Detailed Explanation:

Answer: Option 4 — To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending

The Inter-Creditor Agreement (ICA) was introduced as part of Project Sashakt (based on the Sunil Mehta Committee recommendations) to expedite the resolution of Non-Performing Assets (NPAs) in the Indian banking system. Under the ICA, if 66% of lenders by value agree to a resolution plan for stressed assets of ₹50 crore or more under consortium lending, the decision becomes binding on all lenders. This mechanism prevents individual dissenting banks from blocking recovery efforts, thereby enabling faster turnaround of bad loans and improving the health of the banking sector.

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

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

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

Detailed Explanation:

Answer: Option 4 — Vijayanagara

The construction of elaborate 'Kalyana Mandapas' (marriage halls) within temple complexes was a distinctive architectural feature of the Vijayanagara Empire (14th-17th centuries). These ornate mandapas were specifically designed for the ceremonial marriage rituals of deities and became a hallmark of Vijayanagara temple architecture, distinguishing it from earlier South Indian styles.

📝 Short Notes: Vijayanagara Temple Architecture

Detailed Explanation:

Answer: Option 4 — Neither 1 nor 2

Both statements contain chronological inaccuracies regarding the timelines of these historical religious figures. Let us evaluate each statement:

❌ Statement 1 – Incorrect: Saint Nimbarka lived in the 12th-13th century (exact dates debated, but generally placed between 1130-1200 CE), while Akbar reigned much later from 1556 to 1605 CE, making them separated by approximately 3-4 centuries.

❌ Statement 2 – Incorrect: Saint Kabir lived in the 15th century (approximately 1440-1518 CE), while Shaikh Ahmad Sirhindi (Mujaddid Alf Thani) lived from 1564 to 1624 CE, meaning Kabir predated Sirhindi and could not have been influenced by him.

📝 Short Notes: Medieval Bhakti Saints and Sufi Masters

• Chronological Order: Nimbarka (12th-13th c.) → Kabir (15th c.) → Akbar (16th c.) → Sirhindi (16th-17th c.)
• Nimbarka's Philosophy: Dvaitadvaita or Bhedabheda (difference and non-difference) - souls and world are both different from and identical to Brahman
• Kabir's Influences: He was influenced by earlier Bhakti saints like Ramananda and Sufi traditions prevalent in his time, not by later figures like Sirhindi
• Sirhindi's Position: He opposed Akbar's religious syncretism and worked to restore orthodox Islamic practices during Jahangir's reign

Detailed Explanation:

Answer: Option 3 — Jahangir

Jahangir (reigned 1605-1627) shifted the emphasis of Mughal painting from illustrated manuscripts to albums (muraqqa) and individual portraits. He had a deep personal interest in naturalistic art and patronized master artists like Mansur (famous for flora and fauna), Abu'l Hasan, and Ustad Mansur, who specialized in portraiture and realistic studies. This marked a transition towards more refined, detailed individual portraits and compilations in album format rather than large-scale manuscript illustrations.

📝 Short Notes: Mughal Painting Traditions

Detailed Explanation:

Answer: Option 1 — Kanganahalli

Kanganahalli, an archaeological site near Sannati in Karnataka, is renowned for containing the first and only known stone portrait of Emperor Ashoka with his name inscribed. A relief sculpture at this site depicts a royal figure with attendants and bears a Brahmi inscription reading 'Ranyo Ashoka' (King Ashoka), making it a unique archaeological discovery that provides visual representation of the emperor.

Why other options are incorrect:
• Sanchi: Famous for the Great Stupa commissioned by Ashoka, but contains no inscribed stone portrait of the emperor.
• Shahbazgarhi: Site of Ashokan Rock Edicts in Kharosthi script promoting Dhamma, but lacks any portrait sculpture.
• Sohgaura: Known for a Mauryan-period copper-plate inscription about famine relief, not a relief sculpture of Ashoka.

📝 Short Notes: Kanganahalli and Ashokan Iconography

• Location: Kanganahalli is located near Sannati in Chitapur taluk, Kalaburagi district, Karnataka.
• Unique Feature: Contains the only known stone portrait of Emperor Ashoka with his name inscribed as 'Ranyo Ashoka' in Brahmi script.
• Historical Significance: Before this discovery, Ashoka was never depicted in sculpture with his name; Buddhist art traditionally avoided portraying the Buddha and key figures directly.
• Other Sculptures: The site also contains relief sculptures depicting Jataka tales, scenes from Buddha's life, and the Mahastupa at Sanchi.
• Period: The stupa and sculptures date to the 1st-3rd centuries CE, though the site was originally established during Ashoka's reign (3rd century BCE).
• Archaeological Discovery: Excavations revealed limestone slabs with inscriptions and sculptural panels, providing valuable insights into early Buddhist art and Mauryan history.

Detailed Explanation:

Answer: Option 4 — 1, 2 and 3

All three statements are defining features of Mahayana Buddhism, which emerged as a liberal and reform movement emphasizing universal salvation and compassionate Bodhisattvas.

✅ Statement 1 – Correct: Mahayana Buddhism deified the Buddha, portraying him as a transcendent, cosmic being with multiple manifestations, unlike Theravada's historical human Buddha.
✅ Statement 2 – Correct: The Bodhisattva ideal is central to Mahayana, where enlightened beings postpone their own nirvana to help all sentient beings achieve liberation.
✅ Statement 3 – Correct: Mahayana introduced elaborate image worship, rituals, and devotional practices centered around Buddha and Bodhisattva statues, making Buddhism more accessible to lay followers.

📝 Short Notes: Mahayana vs Theravada Buddhism

Detailed Explanation:

Answer: Option 1 — It was considered a source of income for the State, a sort of tax paid by the people.

During the Gupta period, Vishti (forced labour) was recognized as a legitimate fiscal obligation where subjects rendered compulsory labour services to the State in lieu of tax payment. The Junagadh inscription explicitly lists Vishti alongside other revenue sources like Bali (tribute) and Bhaga (share of produce), confirming its status as a state income mechanism.

✅ Option 1 – Correct: Vishti was indeed regarded as a tax-in-kind, a compulsory labour service that constituted a revenue source for the State during the Gupta administration.

❌ Option 2 – Incorrect: Vishti was prevalent across the Gupta Empire, including Madhya Pradesh and Kathiawar regions, as evidenced by inscriptional records from Junagadh (Kathiawar).

❌ Option 3 – Incorrect: Being a form of forced extraction, Vishti did not entitle labourers to any wages; it was an unpaid compulsory service obligation.

❌ Option 4 – Incorrect: There is no historical evidence suggesting that the burden of Vishti was specifically assigned to the eldest son; it was a general obligation imposed on the subject population.

📝 Short Notes: Taxation System in Gupta Period

• The Gupta revenue system was largely agrarian-based, with land revenue being the primary source of state income.
• Taxes were collected both in kind (grain, produce) and in cash depending on regional practices.
• Forced labour (Vishti) was particularly burdensome on lower social strata and peasant communities.
• The Allahabad Pillar Inscription and various land grant records provide detailed insights into Gupta fiscal administration.

Detailed Explanation:

Answer: Option 3 — Sohgaura

Sohgaura is not a Harappan site; it is located in Uttar Pradesh and is famous for its copper-plate inscription written in Prakrit using the Brahmi script, dating to the Mauryan period. The other three sites—Chanhudaro and Kot Diji in Sindh, Pakistan, and Desalpur in Gujarat, India—are all authentic Harappan sites.

📝 Short Notes: Harappan Sites