UPSC CSE Prelims
Indian Economy Previous Year Questions (PYQs)
Solved Previous Year Questions (PYQs) for Indian Economy in UPSC CSE Prelims in English & Hindi Medium.
Chapter Breakdown: Scroll →
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?
- Cut and optimize the Statutory Liquidity Ratio
- Increase the Marginal Standing Facility Rate
- Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 2 — 2 only
An expansionary monetary policy aims to increase money supply and lower interest rates to stimulate economic activity. Statement 2 (increasing the Marginal Standing Facility Rate) is the only action the RBI would NOT take under expansionary policy, as it contradicts the goal of reducing borrowing costs for banks.
✅ Statement 1 – Correct: Cutting and optimizing the Statutory Liquidity Ratio allows banks to lend more money, directly supporting expansionary policy.
❌ Statement 2 – Incorrect: Increasing the MSF Rate makes borrowing from RBI more expensive for banks, which restricts liquidity and contradicts expansionary objectives.
✅ Statement 3 – Correct: Cutting Bank Rate and Repo Rate are core expansionary tools that encourage banks to borrow and lend at lower rates, boosting credit and economic activity.
📝 Short Notes: RBI Monetary Policy Tools
- Repo Rate: Rate at which RBI lends to banks; cutting it encourages borrowing and lending (expansionary).
- Reverse Repo Rate: Rate at which RBI borrows from banks; cutting it reduces incentive to park funds with RBI.
- Bank Rate: Long-term lending rate used for discounting bills; lower rates support credit expansion.
- Statutory Liquidity Ratio (SLR): Percentage of deposits banks must keep in liquid form; reducing it frees up capital for lending.
- Marginal Standing Facility (MSF) Rate: Emergency borrowing rate for banks; higher rates restrict liquidity (contractionary tool).
- Cash Reserve Ratio (CRR): Percentage of deposits held as reserves; reducing it increases lendable resources.
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?
- Not depending on short-term foreign borrowings
- Opening up to more foreign banks
- Maintaining full capital account convertibility
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 1 — 1 only
During a global financial crisis, India's primary shield against external shocks is reducing dependence on short-term foreign borrowings, which minimizes vulnerability to sudden capital flight and currency instability. The other two measures would actually increase systemic risk rather than provide immunity.
✅ Statement 1 – Correct: Limiting short-term foreign borrowings reduces exposure to capital flight; when foreign investors withdraw funds during a crisis, economies with lower short-term external debt face less rupee depreciation and financial instability.
❌ Statement 2 – Incorrect: Opening up to more foreign banks increases reliance on foreign capital and credit; during a crisis, foreign banks typically restrict lending, amplifying credit contraction and economic damage in the host economy.
❌ Statement 3 – Incorrect: Full capital account convertibility permits unrestricted outflow of foreign capital; this accelerates capital flight during crises, causing sharp currency depreciation and financial sector stress, making the economy more vulnerable rather than immune.
📝 Short Notes: Capital Account Management and Financial Stability
- Capital Account Convertibility: Allows free movement of capital across borders. India has partial convertibility on the capital account, maintaining restrictions on short-term speculative flows to manage systemic risk.
- Short-term Foreign Debt Risk: Creates currency mismatch and rollover risk; during crises, maturity mismatches force rapid repayment, depleting foreign reserves and destabilizing the exchange rate.
- Foreign Direct Investment vs. Foreign Portfolio Investment: FDI (long-term, stable) is preferred over FPI (short-term, volatile); foreign banks' presence increases FPI dependency and pro-cyclical credit behavior during downturns.
- Debt Sustainability Framework: Countries with lower short-term external debt as a percentage of foreign reserves and lower debt-to-GDP ratios demonstrate greater resilience to external shocks.
Along with the Budget, the Finance Minister also places other documents before the Parliament which include “The Macro Economic Framework Statement”. The aforesaid document is presented because this is mandated by
Detailed Explanation:
Answer: Option 4 — Provisions of the Fiscal Responsibility and Budget Management Act, 2003
The Macro Economic Framework Statement is mandated to be presented before Parliament by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. This Act establishes a legal framework requiring the government to lay three key policy statements before Parliament each financial year: the Medium Term Fiscal Policy Statement, the Fiscal Policy Strategy Statement, and the Macroeconomic Framework Statement. These statements ensure transparency in fiscal operations, promote inter-generational equity in fiscal management, and support long-run macroeconomic stability and better coordination between fiscal and monetary policies.
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If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be
Detailed Explanation:
Answer: Option 4 — to leave it unchanged
When you withdraw Rs. 1,00,000 in cash from your demand deposit account, you are converting a deposit (part of money supply) into currency (also part of money supply). The total money supply remains constant; only its composition changes—cash increases while demand deposits decrease by the same amount. Since both cash and demand deposits are components of M1 (the primary measure of money supply), the net effect on aggregate money supply is zero.
“Gold Tranche” (Reserve Tranche) refers to
Detailed Explanation:
Answer: Option 4 — a credit system granted by IMF to its members
The Reserve Tranche (formerly called Gold Tranche) represents the first 25% of a member country's quota with the IMF that can be withdrawn automatically without conditions, interest, or IMF approval. It acts as an unconditional credit facility available to member nations facing balance of payments difficulties, making it distinct from regular IMF lending programs which require strict conditionalities.
📝 Short Notes: IMF Reserve Tranche and Member Quotas
- Reserve Tranche: The portion of a country's IMF quota (typically 25%) that can be accessed unconditionally, without interest charges or policy conditions. Previously termed "Gold Tranche" when quotas were partly paid in gold.
- IMF Quota System: Each member country is assigned a quota based on its relative size in the global economy, which determines its financial commitment to the IMF, voting power, and access to IMF financing.
- Quota Composition: Members pay their quota partly in Special Drawing Rights (SDRs) or widely accepted currencies (reserve tranche position) and partly in their own currency.
- Automatic Drawing Rights: Unlike credit tranches which require IMF approval and conditionalities, the reserve tranche can be drawn immediately when needed for balance of payments support.
- No Interest Charges: Drawings from the reserve tranche do not incur interest or service charges, distinguishing it from other IMF lending facilities.
- Voting Rights: A country's quota also determines its voting power in IMF decisions, with larger economies having proportionally greater influence.
What is the importance of the term “Interest Coverage Ratio” of a firm in India?
- It help in understanding the present risk of a firm that a bank is going to give loan to.
- It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
- The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 1 — 1 and 2 only
The Interest Coverage Ratio (ICR) is a key financial metric used by banks and creditors to assess a firm's ability to meet its interest obligations from its operating earnings. It helps evaluate both the current creditworthiness and emerging financial risks of a borrowing firm.
✅ Statement 1 – Correct: ICR helps understand the present risk by showing whether the firm currently has sufficient earnings to cover interest payments; a low ICR signals immediate difficulty in servicing debt.
✅ Statement 2 – Correct: ICR also helps evaluate emerging risks; a declining trend in ICR over time indicates growing financial stress and potential future default risk.
❌ Statement 3 – Incorrect: A higher ICR indicates better ability to service debt, not worse; it means the firm has a comfortable earnings cushion to meet interest obligations.
📝 Short Notes: Interest Coverage Ratio (ICR)
- Definition: ICR = Earnings Before Interest and Tax (EBIT) ÷ Interest Expense. It measures how many times a company can pay its interest obligations from its operating profit.
- Interpretation: An ICR of 2.5 or higher is generally considered healthy, meaning the company earns at least 2.5 times its interest obligations.
- Risk Assessment: ICR below 1.5 is typically considered risky, as it indicates insufficient earnings buffer to cover interest payments comfortably.
- Banking Use: Banks use ICR as a critical parameter in credit appraisal to determine loan eligibility and interest rates; lower ICR may lead to loan rejection or higher interest rates.
- Trend Analysis: A declining ICR trend signals deteriorating financial health and increased default risk, even if the current ratio appears acceptable.
- Limitation: ICR does not account for principal repayment obligations; it only measures ability to pay interest, not total debt servicing capacity.
In India, which of the following can be considered as public investment in agriculture?
- Fixing Minimum Support Price for agricultural produce of all crops
- Computerization of Primary Agricultural Credit Societies
- Social Capital development
- Free electricity supply to farmers
- Waiver of agricultural loans by the banking system
- Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 3 — 2, 3 and 6 only
Public investment in agriculture refers to government capital expenditure aimed at creating infrastructure, institutional support, and technological improvements that enhance agricultural productivity and efficiency. It excludes policy measures like subsidies, price support mechanisms, or loan waivers that do not constitute direct capital formation.
❌ Statement 1 – Incorrect: Fixing Minimum Support Price (MSP) is a policy instrument for price support, not a capital investment in agricultural infrastructure or assets.
✅ Statement 2 – Correct: Computerization of Primary Agricultural Credit Societies (PACS) involves government expenditure on technology and institutional modernization, qualifying as public investment.
✅ Statement 3 – Correct: Social capital development includes building institutional networks, training programs, and community resources that improve agricultural productivity, representing public investment.
❌ Statement 4 – Incorrect: Free electricity supply to farmers is a subsidy or revenue expenditure, not a capital investment in agricultural infrastructure.
❌ Statement 5 – Incorrect: Waiver of agricultural loans is a debt relief measure affecting government finances but does not create new capital assets or infrastructure in agriculture.
✅ Statement 6 – Correct: Setting up cold storage facilities by the government is direct capital expenditure on agricultural infrastructure aimed at reducing post-harvest losses.
📝 Short Notes: Public Investment in Agriculture
- Public Investment: Government capital expenditure creating durable assets, infrastructure, and institutional capacity in the agricultural sector.
- Components: Includes irrigation infrastructure, rural roads, cold storage facilities, warehouses, research institutions, extension services, and agricultural credit infrastructure.
- vs. Subsidies: Public investment creates assets (capital formation), while subsidies like free electricity or fertilizer subsidies are revenue expenditures without asset creation.
- vs. Policy Measures: MSP, loan waivers, and procurement policies are support mechanisms but not direct investments in infrastructure.
- Social Capital: Investment in human resources, institutions, farmer cooperatives, training programs, and knowledge networks that enhance productivity.
- Impact: Public investment in agriculture improves productivity, reduces risks, enhances market access, and contributes to long-term agricultural growth.
With reference to the Indian economy, consider the following statements:
- ‘Commercial Paper’ is a short-term unsecured promissory note.
- ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
- ‘Call Money’ is a short-term finance used for interbank transactions.
- ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 3 — 1 and 3 only
This question tests knowledge of various money market instruments in the Indian economy. Statements 1 and 3 correctly describe Commercial Paper and Call Money, while statements 2 and 4 contain factual inaccuracies regarding Certificate of Deposit and Zero-Coupon Bonds.
✅ Statement 1 – Correct: Commercial Paper (CP) is indeed a short-term unsecured promissory note issued by highly rated corporations to raise short-term funds, introduced in India in 1990.
❌ Statement 2 – Incorrect: Certificate of Deposit (CD) is a short-term (not long-term) negotiable instrument issued by Scheduled Commercial Banks and select All-India Financial Institutions, not by the Reserve Bank of India.
✅ Statement 3 – Correct: Call Money refers to overnight borrowing/lending between banks (1 day), used for interbank transactions; funds borrowed for more than 1 day up to 14 days are called Notice Money.
❌ Statement 4 – Incorrect: Zero-Coupon Bonds do not bear periodic interest; they are issued at a deep discount to face value and redeemed at par, with the difference representing the return. They are not specifically issued by Scheduled Commercial Banks to corporations.
📝 Short Notes: Money Market Instruments
| Instrument | Nature | Issuer | Key Features |
|---|---|---|---|
| Commercial Paper (CP) | Short-term unsecured promissory note | Highly rated corporations | Maturity: 7 days to 1 year; introduced in 1990 |
| Certificate of Deposit (CD) | Short-term negotiable instrument | Scheduled Commercial Banks & select FIs | Maturity: 7 days to 1 year; cannot be withdrawn before maturity |
| Call Money | Very short-term interbank loan | Banks to banks | Overnight (1 day); Notice Money: 2-14 days |
| Treasury Bills (T-Bills) | Short-term government security | Government of India | Zero-coupon; maturity: 91, 182, 364 days |
| Zero-Coupon Bonds | Long-term debt instrument | Government/Corporations | No periodic interest; issued at discount, redeemed at par |
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
Detailed Explanation:
Answer: Option 2 — It is a largely non-debt creating capital flow.
Foreign Direct Investment (FDI) is characterized as a non-debt creating capital flow because it involves equity investments and long-term stakes in enterprises, which do not require repayment like loans or bonds. Unlike debt financing, FDI brings permanent capital, technology, and management expertise without creating obligations for interest payments or principal repayment.
❌ Option 1 – Incorrect: FDI typically involves direct ownership stakes in unlisted or private companies, not merely investments through capital instruments in listed companies (which is more characteristic of FPI).
✅ Option 2 – Correct: FDI is a non-debt creating capital flow as it involves equity participation without repayment obligations, making it a stable and long-term source of foreign capital.
❌ Option 3 – Incorrect: FDI does not involve debt-servicing since it represents equity ownership rather than borrowed capital that requires interest or principal repayment.
❌ Option 4 – Incorrect: Investment by foreign institutional investors in Government securities is classified as Foreign Portfolio Investment (FPI), not FDI, as it involves short-term financial investments without control or management participation.
📝 Short Notes: Foreign Direct Investment (FDI) vs Foreign Portfolio Investment (FPI)
| Parameter | Foreign Direct Investment (FDI) | Foreign Portfolio Investment (FPI) |
|---|---|---|
| Nature | Equity participation with control/management | Investment in financial assets without control |
| Duration | Long-term investment | Short-term investment |
| Debt Creation | Non-debt creating capital flow | Non-debt creating but volatile |
| Investment Mode | Greenfield projects, M&A, equity stakes | Stocks, bonds, government securities |
| Stability | More stable and permanent | Volatile, prone to quick exit |
| Example | Setting up manufacturing plant, acquiring company shares for control | FIIs investing in stock market or G-secs |
With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?
- Quantitative restrictions on imports by foreign investors are prohibited.
- They apply to investment measures related to trade in both goods and services.
- They are not concerned with the regulation of foreign investments.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 3 — 1 and 3 only
The Trade-Related Investment Measures (TRIMS) agreement under WTO prohibits investment measures that restrict and distort trade in goods. It addresses measures like quantitative restrictions on imports and local content requirements but does not regulate foreign investment per se or extend to services.
✅ Statement 1 – Correct: TRIMS prohibits quantitative restrictions on imports by foreign investors, such as mandatory local sourcing requirements that distort free trade in goods.
❌ Statement 2 – Incorrect: TRIMS applies only to investment measures related to trade in goods, not services. Trade in services is governed by the General Agreement on Trade in Services (GATS).
✅ Statement 3 – Correct: TRIMS is not concerned with regulating foreign investment itself; it focuses on investment measures that affect trade in goods, ensuring they do not create trade barriers.
📝 Short Notes: TRIMS Agreement
- Full Form: Trade-Related Investment Measures
- Part of: World Trade Organization (WTO) framework, came into effect in 1995
- Scope: Applies only to investment measures affecting trade in goods, not services
- Prohibited Measures: Local content requirements, trade-balancing requirements, foreign exchange restrictions related to imports, and export restrictions
- Objective: To eliminate investment measures that cause trade-distorting effects inconsistent with GATT Articles III (National Treatment) and XI (Prohibition of Quantitative Restrictions)
- Not Covered: Does not regulate foreign investment policies directly; does not cover performance requirements unrelated to trade
- Relation to Services: GATS (General Agreement on Trade in Services) governs trade in services, not TRIMS
With reference to the international trade of India at present, which of the following statements is/are correct?
- India’s merchandise exports are less than its merchandise imports.
- India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
- India’s exports of services are more than its imports of services.
- India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 4 — 1, 3 and 4 only
India consistently runs a merchandise trade deficit (imports exceed exports) and an overall current account deficit, while maintaining a services trade surplus. Statement 2 is incorrect as imports of iron and steel, chemicals, fertilizers, and machinery have actually increased in recent years, not decreased.
✅ Statement 1 – Correct: India's merchandise imports consistently exceed merchandise exports, creating a substantial trade deficit.
❌ Statement 2 – Incorrect: Imports of iron and steel, chemicals, fertilizers, and industrial machinery have registered positive growth rates, not decreased.
✅ Statement 3 – Correct: India maintains a services trade surplus, with service exports significantly exceeding service imports.
✅ Statement 4 – Correct: India suffers from an overall current account deficit (CAD), which was 2.1% of GDP in 2018-19 and 1.5% in H1 of 2019-20.
📝 Short Notes: India's Balance of Payments Structure
- Merchandise Trade: India runs a persistent merchandise trade deficit, with major imports including petroleum, gold, electronics, machinery, and chemicals.
- Services Trade: India enjoys a services trade surplus driven by IT-BPO exports, software services, business services, and remittances.
- Current Account Components: CAD = (Merchandise Trade Balance) + (Services Trade Balance) + (Primary Income) + (Secondary Income/Transfers).
- Major Export Items: Petroleum products, gems & jewelry, pharmaceuticals, engineering goods, textiles, and chemicals.
- Major Import Items: Crude oil & petroleum products, gold, electronic goods, machinery, coal, chemicals, and fertilizers.
- CAD Management: India finances CAD through foreign direct investment (FDI), foreign portfolio investment (FPI), and external commercial borrowings (ECB).
- Historical Trend: The services surplus partially offsets the merchandise deficit, but India typically maintains a moderate CAD of 1-3% of GDP.
Consider the following statements:
- In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks
- One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 2 — 2 only
Statement 1 is incorrect because Scheduled Commercial Banks (SCBs) dominate short-term agricultural credit delivery in India, accounting for approximately 75-80% of the total credit, significantly more than District Central Cooperative Banks (DCCBs). Statement 2 is correct as DCCBs form the intermediate tier in the Short-Term Cooperative Credit Structure (STCCS) and one of their primary functions is to channel funds to Primary Agricultural Credit Societies (PACS) at the grassroots level.
❌ Statement 1 – Incorrect: SCBs deliver the largest share of short-term agricultural credit (75-80%), far exceeding DCCBs' contribution.
✅ Statement 2 – Correct: DCCBs serve as the district-level intermediary, providing funds to PACS which operate at the village level.
📝 Short Notes: Agricultural Credit Structure in India
| Component | Details |
|---|---|
| Short-Term Cooperative Credit Structure (STCCS) | Three-tier system: State Cooperative Banks (StCBs) → District Central Cooperative Banks (DCCBs) → Primary Agricultural Credit Societies (PACS) |
| Agricultural Credit Delivery Share | Scheduled Commercial Banks: ~75-80% Regional Rural Banks: ~15-20% Cooperative Banks (including DCCBs): ~5-10% |
| PACS (Primary Agricultural Credit Societies) | Grassroots-level cooperative societies providing credit directly to farmers; total ~1 lakh PACS across India |
| DCCBs Functions | • Mobilize deposits at district level • Provide funds to PACS • Act as link between StCBs and PACS • Finance agricultural and allied activities |
| Long-Term Credit Structure | State Cooperative Agriculture and Rural Development Banks (SCARDBs) → Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) |
Consider the following statements:
- In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
- In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 4 — Neither 1 nor 2
Both statements present incorrect characterizations of the Minimum Support Price (MSP) mechanism in India. Statement 1 incorrectly claims unlimited procurement across all cereals, pulses, and oilseeds, while Statement 2 misunderstands MSP as a price ceiling rather than a floor price.
❌ Statement 1 – Incorrect: Procurement at MSP is not unlimited for all cereals, pulses, and oilseeds; while wheat and rice have open-ended procurement in certain states, most pulses and oilseeds are procured under the Price Support Scheme (PSS) with specific targets and storage constraints.
❌ Statement 2 – Incorrect: MSP functions as a floor price (minimum guarantee) and not a ceiling; market prices can and do rise above MSP based on demand-supply dynamics, and MSP does not prevent price increases.
📝 Short Notes: Minimum Support Price (MSP)
- Definition: MSP is the minimum price guaranteed by the government to purchase agricultural produce from farmers, serving as a safety net against price crashes.
- Coverage: MSP is currently announced for 23 crops including 7 cereals (paddy, wheat, barley, jowar, bajra, maize, ragi), 5 pulses (gram, tur/arhar, moong, urad, lentil/masur), 7 oilseeds (groundnut, rapeseed-mustard, soybean, sunflower, sesamum, safflower, nigerseed), and 4 commercial crops (cotton, sugarcane, copra, raw jute).
- Recommendation Body: Commission for Agricultural Costs and Prices (CACP) recommends MSP based on various factors including cost of production, demand-supply conditions, market prices, and inter-crop price parity.
- 2018-19 Policy: Government announced that MSP would be fixed at least 1.5 times the all-India weighted average cost of production (A2+FL cost), ensuring minimum 50% returns over production cost.
- Procurement Mechanism: Open-ended procurement primarily for rice and wheat through FCI and state agencies; for most other crops, procurement is done under Price Support Scheme (PSS) with quantity limits.
- MSP as Floor Price: MSP acts as a minimum price guarantee, not a maximum; market prices can rise above MSP based on demand, quality, and market conditions.
The crop is subtropical in nature. A hard frost is injurious to it. It requires at least 210 frost-free days and 50 to 100 centimetres of rainfall for its growth. A light well-drained soil capable of retaining moisture is ideally suited for the cultivation of the crop. Which one of the following is that crop?
Detailed Explanation:
Answer: Option 1 — Cotton
Cotton is a subtropical crop that requires at least 210 frost-free days, 50-100 cm of rainfall, and light well-drained soil capable of retaining moisture. Hard frost is highly injurious to cotton plants, making them unsuitable for cold regions. These specific climatic and soil requirements clearly distinguish cotton from other crops like jute (which requires hot humid climate), sugarcane (which needs heavy rainfall of 150-250 cm), and tea (which grows in tropical to subtropical highlands).
📝 Short Notes: Major Cash Crops and Their Growing Conditions
| Crop | Climate | Frost-Free Days | Rainfall (cm) | Soil Type |
|---|---|---|---|---|
| Cotton | Subtropical | 210+ days | 50-100 | Light, well-drained, moisture-retaining (black soil ideal) |
| Jute | Tropical (hot & humid) | Not frost-tolerant | 150-250 | Alluvial soil in deltaic regions |
| Sugarcane | Tropical/Subtropical | Frost-sensitive | 150-250 | Deep, rich loamy soil |
| Tea | Tropical to Subtropical (highlands) | Frost-sensitive | 150-250 | Well-drained acidic soil with good humus |
With reference to pulse production in India, consider the following statements:
- Black gram can be cultivated as both kharif and rabi crop.
- Green-gram alone accounts for nearly half of pulse production.
- In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 1 — 1 only
This question tests knowledge about pulse cultivation patterns and production trends in India. Statement 1 is correct as black gram is a versatile pulse cultivated in both seasons, while statements 2 and 3 contain factual inaccuracies regarding production shares and trends.
✅ Statement 1 – Correct: Black gram (Urad dal) is indeed cultivated as both kharif and rabi crop in India, showing its adaptability to different seasons and agro-climatic conditions.
❌ Statement 2 – Incorrect: Green gram does not account for nearly half of pulse production; Chickpea (Chana) is the dominant pulse contributing approximately 40% of total pulse production in India.
❌ Statement 3 – Incorrect: Both kharif and rabi pulse production have increased over the last three decades due to government initiatives like National Food Security Mission and improved varieties; rabi pulses contribute over 60% of total production and have shown substantial growth.
📝 Short Notes: Pulse Production in India
| Pulse Type | Dominant Season | Share in Production | Major Producing States |
|---|---|---|---|
| Chickpea (Chana) | Rabi | ~40% | Madhya Pradesh, Rajasthan, Maharashtra |
| Pigeon Pea (Arhar/Tur) | Kharif | ~15% | Maharashtra, Karnataka, Madhya Pradesh |
| Black Gram (Urad) | Both Kharif & Rabi | ~10% | Madhya Pradesh, Rajasthan, Uttar Pradesh |
| Green Gram (Moong) | Both Kharif & Rabi | ~10% | Rajasthan, Maharashtra, Karnataka |
| Lentil (Masur) | Rabi | ~7% | Madhya Pradesh, Uttar Pradesh, West Bengal |
- Seasonal Distribution: Rabi pulses account for about 60-65% of total pulse production, while kharif pulses contribute 35-40%.
- Growth Trends: Both kharif and rabi pulse production have increased significantly since 1990s due to improved varieties, better agronomic practices, and government support schemes.
- India's Position: India is the largest producer and consumer of pulses globally, accounting for about 25% of world production.
- Key Initiatives: National Food Security Mission-Pulses (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), and minimum support price (MSP) have boosted pulse production.