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The correct answer is All of the above.

Key PointsThe Foreign Exchange Reserves (FER) of the Reserve Bank of India (RBI) typically include several components. These reserves are held to maintain stability in the Indian financial system and to ensure that the country can meet its international payment obligations. The components of the RBI's Foreign Exchange Reserves typically include:

• Foreign Currency Assets (FCA): This is the largest component of the FER and includes major currencies such as the US Dollar, Euro, Japanese Yen, British Pound, etc. These are held in the form of foreign government bonds, deposits with foreign central banks, and other foreign securities.
• Gold Reserves: This represents the physical gold held by the RBI. Gold is considered a store of value and an international reserve asset.
• Special Drawing Rights (SDRs): SDRs are an international reserve asset created by the International Monetary Fund (IMF). RBI holds a portion of its reserves in the form of SDRs.
• Reserve Tranche Position (RTP) with the IMF: This is a financial arrangement with the IMF and is part of India's international reserves.
• Other Reserve Assets: This category includes any other foreign exchange assets held by the RBI, such as foreign exchange derivatives.

These components make up the overall Foreign Exchange Reserves held by the RBI, and they play a crucial role in ensuring the stability of India's external financial position and the ability to meet international payment obligations. The composition of these reserves can change over time due to various factors, including exchange rate movements and international economic conditions. Hence all the options are correct.

The correct answer is All of the above.

Key Points'Rules of Origin’: Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports.

Rules of origin are used:

• Rules of origin are set criteria that are used to determine the national source of a product.
• These criteria are used to establish the economic nationality of a product and are necessary for various purposes, such as determining trade preferences, imposing tariffs, and enforcing trade regulations.
• The rules of origin help to prevent trade fraud, ensure fair competition, and protect domestic industries. Hence, the statement 1 is correct.
• Rules of Origin help the custom agencies to know what regulations and fees apply to a given product. Hence, statement 2 is correct.
• To determine whether imported products shall receive most-favoured-nation (MFN) treatment or preferential treatment.
• for the purpose of trade statistics, hence statement 3 is correct.**
• for the application of labelling and marking requirements; and
• for government procurement.
• Their importance is derived from the fact that duties and restrictions in several cases depend on the sources of imports. Hence, statement 4 is correct.

The correct answer is only 2 and 3.

Key PointsInfant mortality rate (IMR):

• The infant mortality rate (IMR) is a crucial demographic and public health indicator that measures the number of deaths of infants under one year of age per 1,000 live births in a given population during a specific period, usually a year. Hence, statement 1 is incorrect.
• IMR is often used to assess the overall health and healthcare quality of a society and to compare the well-being of infants in different countries or regions.
• The infant mortality rate you mentioned for the year 1950, 189.6, seems unusually high. The infant mortality rate is typically reported as the number of infant deaths per 1,000 live births in a given year. Hence, statement 2 is correct.
• An infant mortality rate of 189.6 would indicate a very high number of infant deaths relative to the number of live births.
• Infant Mortality Rate (IMR) has also registered 2-point decline to 28 per 1000 live births in 2020 from 30 per 1000 live births in 2019 (Annual Decline Rate: 6.7%). Hence statement 3 is correct.
• As per the Sample Registration System (SRS) Bulletin of Registrar General of India (RGI), the State with the highest infant mortality rate in the year 2019 was Madhya Pradesh.
• Madhya Pradesh was 46 deaths per 1,000 live births in the year 2019. Hence statement 4 is incorrect.

The correct answer is Only 4.

Key Points

Human Capital Formation

• Human capital formation refers to the process of enhancing a nation's human resources through education, training, skill development, and other productive activities. Hence statement 4 is correct.
• According to the OECD, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”.  Only skill and Knowledge does not form Human Capital Formation. Hence statement 2 and 3 is incorrect.
• It recognizes that people are not just a cost of production but also a valuable resource that can contribute to economic growth and development. Here are some key aspects and concepts related to human capital formation:
• As per RBI, Gross capital formation refers to the 'aggregate of gross additions to fixed assets (that is fixed capital formation) plus change in stocks during the counting period. Hence statement 1 is incorrect.

Additional Information

• The intangible wealth of a nation comprises of the skilled population, human resource base, culture, arts etc.
• Human capital formation is the outcome of investments in education, health, on-the-job training, migration and information.
• Tangible capital is also GCF is it involves largely infrastructural components.

The correct answer is Only 4.

Key Points The Insolvency and Bankruptcy Code, 2016 (IBC) 

• The Insolvency and Bankruptcy Code, 2016 (IBC) is a significant piece of legislation in India that was enacted to address issues related to the insolvency and bankruptcy of individuals and corporate entities.
• The primary objectives of the IBC are to provide a time-bound and efficient resolution process for insolvent entities, promote entrepreneurship, and ensure the maximization of value from the assets of such entities.
• Insolvency is a state of economic distress, while bankruptcy is a legal conclusion. A person who is bankrupt is conclusively insolvent, but all insolvent persons are not bankrupt. Hence, statement 3 is incorrect.
• Bankruptcy is a legal declaration of insolvency, i.e., one’s inability to pay off debts. Insolvency is just the state where financial inability is reached, whereas bankruptcy is the realisation and announcement of the state of being insolvent.
• IBBI is the regulator for overseeing insolvency proceedings of service providers like Insolvency Professional Agencies (IPA), Insolvency Professionals (IP) and Information Utilities (IU) in India. It was given statutory powers through the Insolvency and Bankruptcy Code. It functions under the Ministry of Commerce. Hence statement 4 is correct,

Features of the Code:

• Applicability: The IBC applies to individuals, partnership firms, limited liability partnerships (LLPs), and companies. Hence, statement 1 is incorrect
• Adjudicating Authority: The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are the primary adjudicating authorities responsible for hearing and resolving insolvency cases.
• Insolvency Resolution Process: The IBC sets out a time-bound process for the resolution of insolvency, which includes the appointment of an Insolvency Resolution Professional (IRP) to manage the affairs of the debtor during the resolution process.
• Committee of Creditors (CoC): In corporate insolvency cases, a CoC is formed, consisting of financial creditors, who have a significant say in the insolvency resolution process, including the approval or rejection of resolution plans.

The correct answer is 1956.

Key Points

• Industrial Policy Resolution, 1956
• ​This second industrial policy was announced on April 20, 1956, which replaced the policy of 1948.
• In 1956  the Indian Policy Resolution was adopted by the Parliament.
• The features of this policy were:
• A new classification of Industries.
• Non-discriminatory and fair treatment for the private sector.
• Promotion of village and small-scale industries.
• To achieve development by removing regional disparity.
• Labour welfare.
• It was regarded as the “Economic Constitution of India” or “The Bible of State Capitalism”.

Additional Information

• Industrial Policy of 1948
• The first industrial policy after independence was announced on 6^th April 1948.
• It was presented by Dr. Shyama Prasad Mukherjee the then Industry Minister.
• The main goal of this policy was to accelerate the industrial development by introducing a mixed economy where the private and public sector was accepted as important in the development of the economy.

The correct answer is ​2 and 3.

Key Points

• Production-linked incentive (PLI) scheme:
• The government recently announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors to make India a manufacturing hub.
• It was notified as a part of the National Policy on Electronics.  Hence option 4 is correct.
• It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain. So, option 1 is correct.
• Key features:
• The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies. Hence statement 3 is incorrect.
• It is for a period of five years.
• FY 2019-20 is considered as the base year for the calculation of incentives.
• The Scheme will be implemented through a Nodal Agency which shall act as a Project Management Agency (PMA) and be responsible for providing secretarial, managerial, and implementation support and carrying out other responsibilities as assigned by MeitY from time to time.
• The scheme has two categories of applicants, namely, global companies, Hybrid companies, and domestic companies. Hence, statement 2 is incorrect.
• The scheme shall extend an average incentive of around 8% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years.
• Eligibility:
• Companies that make mobile phones which sell for Rs 15,000 or more will get an incentive of up to 6 percent on incremental sales of all such mobile phones made in India.
• In the same category, for companies that are owned by Indian nationals and make such mobile phones, the incentive has been kept at Rs 200 crore for the next four years.

The correct answer is 1 and 3.

Key Points SVAMITVA

• SVAMITVA, a Central Sector Scheme of the Ministry of Panchayati Raj was nation-wide launched by the Hon’ble Prime Minister on National Panchayati Raj Day, April 24, 2021, after successful completion of pilot phase of scheme (2020–2021) in nine states. Hence, statement 1 is incorrect.
• The scheme is a reformative step towards the establishment of clear ownership of property in rural inhabited (“Abadi”) areas by mapping land parcels using drone technology and providing ‘Record of Rights’ to village household owners with issuance of legal ownership cards (Property cards/Title deeds) to the property owners.

Main Activities of the Scheme:

• Establishment of Continuous Operating Reference System – (CORS) is network of reference stations that provide a virtual base station that allows access long-range high-accuracy network RTK corrections with centimetre-level horizontal positioning in real-time. Hence statement 3 is incorrect.
• CORS network supports accurate georeferencing, ground truthing and demarcation of lands.  Large-scale mapping using drones: rural inhabited (abadi) areas would be mapped by Survey of India using drone Survey. Hence statement 2 is correct.
• It would generate high resolution and accurate maps to confer ownership property rights. Based on these maps or data, property cards would be issued to the rural household owners. Hence, statement 4 is correct.
• Awareness program to sensitize the rural population about the surveying methodology and its benefits.
• Setting of Programme management unit at National and State level.
• Development/ Maintenance of Scheme Dashboard and integration of drone survey Spatial data/maps with Ministry’s Spatial planning application to support in planning at local level.
• Documentation of best practices/ conducting National and Regional workshops.

The correct answer is Only 1, 3 and 4.

Key Points Financial Emergency: The President of India proclaims the Financial Emergency under Article 360. When a situation has emerged that threatens India's financial stability or credit, or any portion of its territory.

Financial Emergency - Grounds Of Declaration

• Article 360 empowers the president to proclaim a Financial Emergency.
• Grounds of Proclamation: if the President is satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
• Under such a situation, the executive and legislative powers will go to the centre.
• Like the other two types of emergencies, it has also to be approved by the Parliament.
• 38^th amendment act of 1975: The Amendment act made that the proclamation of financial emergency cannot be questioned in the court of law.
• 44^th amendment act of 1978: The amendment act deleted the provision inserted by the 38^th Amendment Act of 1975, which suggests that the president's satisfaction is not immune from judicial review.
• Now the Financial emergency is under Judicial review.

Effects of Financial Emergency

• The Union Government may give direction to any of the States regarding financial matters.
• The President may ask the States to reduce the salaries and allowances of all or any class of persons in government service. Hence statement 1 is correct.
• The President may ask the States to reserve all the money bills for the consideration of the Parliament after they have been passed by the State Legislature. Statement 2 is incorrect and 4 is correct.
• The President may also give directions for the reduction of salaries and allowances of the Central Government employees including the Judges of the Supreme Court and the High Courts. Statement 3 is correct.

The correct answer is Only 1, 2, 3 and 4.

Key Points

Stagflation 

• Stagflation means a situation characterized by simultaneous increase in prices and stagnation of economic growth.
• The term Stagflation was coined by Iain Macleod, a Conservative Party MP in the United Kingdom, in November 1965.
• It is described as a situation in the economy where the growth rate slows down, the level of unemployment remains steadily high and yet the inflation or price level remains high at the same time. It is Dangerous for the economy.

 Factors could potentially contribute to stagflation in the Indian economy:

• ​​Decline in Consumption: A decline in consumption contributes to stagflation. Consumption decreases as a result of lower income and fewer jobs giving way to slower growth and even more inflation.
• Oil Price Volatility: The volatility in oil prices results in a further reduction in spending. An increase in oil prices results in a rise in transportation costs, which leads to an increase in overall pricing, particularly for food items.
• Decrease in credit availability: Less money in the economy leads to reduced investment. This results in reduced industrial activity impacting economic growth.
• Unemployment: Unemployment impacts the buying ability of individuals. The increased automated production and inability of the manufacturing sector to boost up the growth also impacts job growth of the country.
• Inflation: With rising input costs and reduction in supply, prices of various products and services increase. As the supply is reduced, there is a fall in output and employment and the price level rises. Hence statement 1 is correct.
• Decline in Industrial Production:  Decline in industrial production and sluggish economic growth​, resulted in stagflation. Hence statement 2 is correct.
• Decrease in aggregate demand and consumer spending can lead to economic stagnation or recession. However, when paired with inflation (which could be driven by other factors like supply shocks or increased costs), it could contribute to a stagflation scenario.Hence statement 3 is correct.
• Appreciation of the domestic currency can make a country's exports more expensive on the global market, reducing demand for these exports. This reduction can, in turn, negatively impact the export-driven sectors of the economy, leading to job losses and lower industrial output. In an economy simultaneously experiencing high inflation, these dynamics can contribute to stagflation by combining sluggish growth or recession with persistent inflation. Hence statement 4 is correct.

Additional Information Consequences of Stagflation

• The trifecta of slow growth, high unemployment, and fast inflation puts significant pressure on the economy.
• Stagflation is unambiguously harmful to the economy, as high inflation and inflation uncertainty distort investment decisions.
• It is also damaging to fixed income markets, as rising interest rates push bond prices lower and depress equity valuations.