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CONTENTS
1. ThE uNfOldiNg Union Budget 2012-13 ........................................................... Economic Survey: An Overview ............................................ Budgetary Terms .................................................................... 2. NATiONAl BullETiN Economy News........................................................................ 25 3. iNTERNATiONAl BullETiN International News................................................................... 32 Nuclear Summit, Seoul, 2012 ................................................. 35 4. BilATERAl BullETiN BRICS Meet, 2012 ................................................................. 37 Bilateral News......................................................................... 5. ECONOMY@ iP Economy News........................................................................ 44 6. SCiENCE SPECTRuM Science News.......................................................................... 4. iNSPiRATiONS@iP Rahul Dravid-End of An Era .................................................. 54 12. KNOW iT All ..................................................................... 56 13. QuESTiONS@ iP Current Affairs Questions ....................................................... 65 CSAT Model Paper ................................................................. 71 India Year Book Question Book ............................................. 84 Economic Survey and Current Economy Questions ............... 89 49 39 1 2 12 23
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ThE UNFOlDING...
Intervene decisively to address the problem of malnutrition especially in Indias inflation is largely structural, the 200 high-burden districts; and driven predominantly by agricultural supply constraints and global Expedite coordinated implementation cost push. Evidence suggests that of decisions being taken to improve prolonged periods of high food delivery systems, governance, inflation tend to get generalized. and transparency; and address Fortunately, steps taken to bridge the problem of black money and gaps in distribution, storage and corruption in public life. marketing systems to strengthen Overview of the Economy food supply chains have helped us Indias GDP is estimated to grow at in a more effective management of 6.9 per cent in real terms in 2011-12. inflation and led to a decline in food The growth is estimated to be 2.5 per inflation. cent in agriculture, 3.9 per cent in The developments in Indias external industry and 9.4 per cent in services. trade in the first half of the current There is a significant slowdown in year were encouraging. During Aprilcomparison to the preceding two January 2011-12, exports grew by years, primarily due to deceleration 23 per cent to reach US Dollar 243 in industrial growth, more specifically billion, while imports at US Dollar in private investment. Rising cost of 391 billion recorded a growth of over credit and weak domestic business 29 per cent. What is heartening is sentiment, added to this decline. that India has successfully achieved The headline inflation remained high diversification of export and import for most part of the year. It was only markets. The share of Asia, including in December 2011 that it moderated ASEAN, in total trade increased from to 8.3 per cent followed by 6.6 per 33.3 per cent in 2000-2001 to 57.3 cent in January 2012. Monthly food per cent in the first half of 2011inflation declined from 20.2 per cent 12. This has helped us weather the in February 2010, to 9.4 per cent in impact of global crisis emanating March 2011 and turned negative in from Europe and to a lesser extent January 2012. Though the February from USA. 2012 inflation figure has gone up The current account deficit as a marginally, it is expected that the proportion of GDP for 2011-12 is
headline inflation will moderate further in the next few months and remain stable thereafter.
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out nation-wide during 2012. Direct transfer of subsidy to the retailer, and eventually to the farmer will be implemented in subsequent phases. All the three public sector Oil Marketing Companies have launched LPG transparency portals to improve customer service and reduce leakage. A pilot project for selling LPG at market price and reimbursement of subsidy directly into the beneficiarys bank account is being conducted in Mysore. A similar pilot project on direct transfer of subsidy for kerosene into the bank accounts of beneficiaries has been initiated in Alwar district of in undertaking a de-novo exercise for Rajasthan. The Aadhaar platform has allocating resources for prioritized also been successfully used to validate schemes and weeding out others PDS ration cards in Jharkhand. that have outlived their utility. This T would provide greater certainty in he Budget also calls for scale up and roll out Aadhaar enabled payments multi-year budgeting framework. It for various government schemes in at would also encourage efficiencies in least 50 selected districts within the expenditure management. next six months. The Central Plan Scheme Monitoring System is to be expanded to facilitate Strengthening Investment Envibetter tracking and utilization of funds ronment released by the Central Government. The domestic investment environment Subsidies has suffered on multiple counts in the Subsidies related to food and for past year. The Budget calls for fastadministering the Food Security Act tracking policy decisions and ensure onhas been fully provided for. All other time implementation of major projects. subsidies would be funded to the To build consensus on FDI in multiextent that they can be borne by brand retail through consultation the economy without any adverse with the State governments. implications. Advance Pricing Agreement (APA) as envisaged in the DTC Bill, 2010 is to be implemented very soon. This will bring down tax litigation and provide tax certainty to foreign investors in case of transfer pricing.
likely to be around 3.6 per cent. This, along with reduced net capital inflows in the second and third quarters, put pressure on the exchange rate. Indias GDP growth in 2012-13 to be 7.6 per cent, +/- 0.25 per cent.
Fiscal Consolidation: calls for efforts both to raise the tax-GDP ratio and to lower the expenditure The expenditure on Central subsidies to under 2 per cent of GDP in 2012Fiscal Responsibility and Budget 13 and to be further brought down to Management (FRBM) Act: The Fiscal 1.75% by 2015. This will help improve Responsibility and Budget Management the quality of public spending. Act, 2003 (FRBM Act) has been amended Furthermore the Budget also calls as part of the Finance Bill, 2012. It has for directing efforts towards better introduced two concepts to reform the targeting and leakage proof delivery expenditure aspect of the fiscal policy. of the subsidies. These are: 1. Effective Revenue Deficit: It was introduced in the Budget 20011-12, to address the structural imbalances in the revenue account. It is being brought in as a fiscal parameter. 2. Medium-term Expenditure Framework Statement: It will set forth a three-year rolling target for expenditure indicators. It would help
Disinvestment Policy: In 2011-12, as against a target of Rs. 40,000 crore, only about Rs. 14,000 crore were raised from the disinvestment. For 2012-13, the A mobile-based Fertiliser Management target for the disinvestment has been System (mFMS) has been designed to kept at Rs. 30,000 crore. provide end-to-end information on the Financial Sector movement of fertilizers and subsidies, from the manufacturer to the retail Reforms in the financial sector have been pursued with the objective of more efficient level on the recommendations of the market intermediation between savers and task force headed by Shri Nandan investors. Nilekani on IT strategy for direct To encourage flow of savings in transfer of subsidy. This will be rolled financial instruments and improve the
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depth of domestic capital market, the Budget introduces a new scheme called Rajiv Gandhi Equity Savings Scheme. The scheme would allow for income tax deduction of 50 per cent to new retail investors, who invest up to Rs. 50,000 directly in equities and whose annual income is below Rs. 10 lakh. The scheme will have a lock-in period of 3 years.
will go up to Rs. 50 lakh crore. About the Budget proposes to protect the half of this is expected to come from financial health of Public Sector private sector. Banks and financial institutions. In this direction, for the year 2012-13, Viability Gap Funding (VGF) under Rs. 15,888 crore for capitalization of the Scheme for Support to PPP Public Sector Banks, Regional Rural in infrastructure is an important Banks and other financial institutions instrument in attracting private including NABARD. Furthermore a investment into the sector. This year Financial Holding Company has been it has been decided to make irrigation proposed to be set up. (including dams, channels and
The reforms in the Capital is sought To bring banking payment structure embankments), terminal markets, to be further deepened through (i) common infrastructure in agriculture at par with global standards, a allowing Qualified Foreign Investors comprehensive action plan has been markets, soil testing laboratories and (QFIs) to access Indian Corporate prepared for implementation in 2012capital investment in fertilizer sector Bond market; (ii) simplifying the 13. A central Know Your Customer eligible for VGF under this scheme. process of issuing Initial Public Offers (KYC) depository will be developed Oil and Gas/LNG storage facilities (IPOs). In this direction it has been in 2012-13 to avoid multiplicity of and oil and gas pipelines, fixed made mandatory for companies to registration and data upkeep. network for telecommunication and issue IPOs of Rs.10 crore and above in As a next step, to the Swabhimaan, telecommunication towers will also electronic form through nationwide be made eligible sectors for VGF. the Budget proposes to set up Ultra broker network of stock exchanges; Small Branches at habitations where The first Infrastructure Debt Fund (iii) wider shareholder participation; the Business Correspondents would with an initial size of Rs. 8000 and (iv) permitting two-way deal with cash transactions. crore, has been launched earlier in fungibility in Indian Depository February 2012. Tax-free bonds for The Swabhimaan campaign has Receipts subject to a ceiling with Rs. 30,000 crore has been doubled been extended to habitations with the objective of encouraging greater to Rs. 60,000 crore in 2012-13. This population of more than 1000 in foreign participation in Indian includes Rs.10,000 crore for NHAI, North Eastern and hilly States and to capital market. Rs.10,000 crore for IRFC, Rs.10,000 other habitations which have crossed Taking forward the process of crore for IIFCL, Rs.5,000 crore for population of 2,000 as per Census financial sector legislative reforms, HUDCO, Rs.5,000 crore for National 2011. the Government has proposed to Housing Bank, Rs.5,000 crore for move the following Bills in the Regional Rural Banks (RRBs) have SIDBI, Rs.5,000 crore for ports and played a crucial role in meeting the Budget Session of the Parliament: Rs.10,000 crore for power sector. credit needs of rural areas. Out of 82 The Micro Finance Institutions RRBs in India, 81 have successfully In power generation, fuel supply (Development and Regulation) Bill, constraints are affecting production migrated to Core Banking Solutions 2012; prospects. To address this concern, (CBS) and have also joined the Coal India Limited (CIL) has The National Housing Bank National Electronic Fund Transfer been advised to sign fuel supply (Amendment) Bill, 2012; system. The budget has proposed to agreements, with power plants that extend the scheme of capitalisation The Small Industries Development have entered into long-term Power of weak RRBs by another 2 years to Bank of India (Amendment) Bill, Purchase Agreements with DISCOMs enable all the States to contribute 2012; and would get commissioned on or their share. National Bank for Agriculture and before March 31, 2015. Further the Rural Development (Amendment) Infrastructure and Industrial Budget proposes to allow External Bill, 2012; Development Commercial Borrowings (ECB) to part finance Rupee debt of existing power Regional Rural Banks (Amendment) Lack of adequate infrastructure is a projects. Bill, 2012; major constraint on our growth. The strategy followed so far is to increase The Budget proposes to set a target Indian Stamp (Amendment) Bill, investment in infrastructure through of covering a length of 8,800 kms 2012; and a combination of public investment under NHDP next year. The allocation Public Debt Management Agency of and public private partnerships has been enhanced by 14 per cent India Bill, 2012. (PPP). During the Twelfth Plan to Rs. 25,360 crore in 2012-12 and To meet the Basel norm-III norms, period, infrastructure investment allow ECB for capital expenditure on
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the maintenance and operations of toll systems for roads and highways so long as they are a part of the original project.
To address the immediate financing National Food Security Mission concerns of the Civil Aviation sector, To address the need of the local which aims to bridge the yield gap ECB has been permitted for working in respect of paddy, wheat, pulses, artisans and weavers, it is proposed capital requirements of the airline millet and fodder. The ongoing to set up a powerloom mega cluster industry for a period of one year, Integrated Development of Pulses in Ichalkaranji in Maharashtra with a subject to a total ceiling of US Dollar Villages, Promotion of Nutri-cereals Budget allocation of Rs. 70 crore. 1 billion. and Accelerated Fodder Development To enhance availability of equity to Programme would now become a part In view of the shortage of housing MSME sector, Rs. 5,000 crore India of this Mission; for low income groups in major cities Opportunities Venture Fund with and towns, it has been proposed to: National Mission on Sustainable SIDBI will be set up. Agriculture including Micro Allow ECB for low cost affordable With the objective of promoting Irrigation is being taken up as a housing projects; market access of Micro and Small part of the National Action Plan on Enterprises, Government has Set up Credit Guarantee Trust Fund Climate Change. The Rainfed Area approved a policy which requires to ensure better flow of institutional Development Programme will be Ministries and CPSEs to make a credit for housing loans; merged with this; minimum of 20 per cent of their Enhance provisions under Rural annual purchases from MSEs. Of this, National Mission on Oilseeds and Oil Housing Fund from Rs. 3000 crore to Palm aims to increase production 4 per cent will be earmarked for Rs. 4000 crore; and productivity of oil seeds and oil procurement from MSEs owned by SC/ Extend the scheme of interest palm; ST entrepreneurs. subvention of 1 per cent on housing National Mission on Agricultural loan up to Rs. 15 lakh where the cost Agriculture Extension and Technology focuses on of the house does not exceed Rs. 25 The total plan outlay for the adoption of appropriate technologies Department of Agriculture and lakh for another year; and by farmers for improving productivity Cooperation has been increased by Enhance the limit of indirect finance and efficiency in farm operations; 18 per cent from Rs. 17,123 crore in under priority sector from Rs. 5 lakh and 2011-12 to Rs. 20,208 crore in 2012to Rs.10 lakh. National Horticulture Mission aims at 13. In the Textile sector, the Government horticulture diversification. This will has recently announced a financial The outlay for Rashtriya Krishi Vikas also include the initiative on saffron. Yojana (RKVY) is being increased package of Rs. 3,884 crore for waiver from Rs. 7,860 crore in 2011-12 to National Mission for Protein of loans of handloom weavers and Supplement has been proposed Rs. 9,217 crore in 2012-13. their cooperative societies. Moving to be strengthened. To improve further, the Budget has announced Seeing the significant increase in productivity in the dairy sector, a Rs. production and productivity of paddy the following: 2,242 crore project is being launched after the launch of initiative of Two more mega handloom clusters in with World Bank assistance. To Bringing Green Revolution to Eastern addition to the already operational broaden the scope of production of India (BGREI), the Budget proposes 4 such clusters. These are: (i) fish to coastal aquaculture, apart to increase the allocation for this Prakasam and Guntur districts in from fresh water aquaculture, the scheme from Rs. 400 crore in 2011Andhra Pradesh; and (ii) Godda outlay in 2012-13 is being stepped 12 to Rs. 1000 crore in 2012-13. and neighbouring districts in up to Rs. 500 crore. Jharkhand. Besides, it also proposes Under RKVY, it has been proposed to The target for agricultural credit allocate Rs. 300 crore to Vidarbha to provide assistance in setting up in 2012-13 has been raised to Rs. Intensified Irrigation Development of dormitories for women workers 5,75,000 crore. This represents an Programme. This Scheme seeks to in the 5 mega clusters relating to increase of Rs. 1,00,000 crore over bring in more farming areas under handloom, power loom and leather the target for the current year. protective irrigation. sectors. The interest subvention scheme for Setting up of Weavers Service The Government intends to merge providing short term crop loans to the remaining activities into a set Centres, one each in Mizoram, farmers at 7 per cent interest per
Nagaland and Jharkhand and Rs. 500 crore pilot scheme in the Twelfth Plan for promotion and application of Geo-textiles in the North East Region.
of missions to address the needs of agricultural development in the Twelfth Five Year Plan. These Missions are:
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for such scientific breakthroughs. annum will be continued in 2012- Kisan Credit Card (KCC) is an effective 13. An additional subvention of 3 instrument for making agricultural To maximise the flow of benefits from per cent will be available to prompt credit available to the farmers. KCC investments in irrigation projects, paying farmers. In addition, the same scheme will be modified to make KCC structural changes in Accelerated interest subvention on post harvest a smart card which could be used at Irrigation Benefit Programme (AIBP) loans up to six months against ATMs. are being made. The allocation for negotiable warehouse receipt will Agricultural Research: Food security AIBP in 2012-13 is being stepped up also be available. This will encourage by 13 per cent to Rs. 14,242 crore. and agricultural development in the farmers to keep their produce in the coming decades would depend To mobilise large resources to fund warehouses. upon scientific and technological irrigation projects, a Government breakthroughs in raising productivity. A Short term RRB Credit Refinance owned Irrigation and Water We have to develop plant and seed Fund is being set-up to enhance the Resource Finance Company is being varieties that yield more and can capacity of Regional Rural Banks to operationalised. The Company would resist climate change. It has been disburse short term crop loans to start its operations in 2012-13 by proposed to set aside a sum of Rs. the small and marginal farmers. Rs. focusing on financing sub-sectors 200 crore for incentivising research 10,000 crore to NABARD has been like micro-irrigation, contract with rewards, both for institutions provided for refinancing the RRBs farming, waste water management through this fund. and the research team responsible and sanitation.
The Government has taken steps to create additional foodgrain storage capacity in the country. Creation of 2 million tonnes of storage capacity in the form of modern silos has already been approved. Nearly 15 million tonnes capacity is being created under the Private Entrepreneurs Guarantee Scheme, of which 3 million tonnes of storage capacity will be added by the end of 2011-12 and 5 million would be added next year.
Inclusion
Scheduled Castes and Tribal Sub Plans: From the year 2011-12, allocations are being made for Scheduled Castes Sub Plan (SCSP) and Tribal Sub Plan (TSP) under separate minor heads as part of the Plan allocations. In 2012-13, the allocation for SCSP is Rs. 37,113 crore which represents an increase of 18 per cent over 201112. The allocation for TSP in 2012-13 is Rs. 21,710 crore representing an increase of 17.6 per cent over 201112. Food Security: Government has taken definite steps to create food security at the household level by making food a legal entitlement for all targeted people, especially for the poor and vulnerable segments of
our population. The National Food Security Bill, 2011 is before the Parliamentary Standing Committee. To ensure that the objectives of the National Food Security Bill are effectively realised, a Public Distribution System Network is being created using the Aadhaar platform. A National Information Utility for the computerisation of PDS is being created. It will become operational by December 2012. Multi-sectoral Nutrition Augmentation Programme: Following the decision taken in the Prime Ministers National Council on Indias Nutritional Challenges, a multi-sectoral programme to address maternal and child malnutrition in selected 200 high burden districts is being rolled out during 201213. It will harness synergies across
nutrition, sanitation, drinking water, primary health care, women education, food security and consumer protection schemes. In this context, Integrated Child Development Services (ICDS) scheme is being strengthened and re-structured. For 2012-13, an allocation of Rs. 15,850 crore has been made as against Rs. 10,000 crore in 2011-12. This amounts to an increase of over 58 per cent. National Programme of Mid Day Meals in Schools has enhanced enrolment, retention, attendance, and also helped in improving nutrition levels among children. In 2012-13, it has been proposed to allocate Rs. 11,937 crore for this scheme as against Rs. 10,380 crore in 2011-12. Rajiv Gandhi Scheme for Empowerment of Adolescent Girls,
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SABLA, has been introduced last year with a view to address the nutritional needs and other educational and skill development initiatives for self development of adolescent girls in the age group of 11 to 18 years. For 2012-13, an allocation of Rs. 750 crore has been proposed for the scheme. Rural Development and Panchayati Raj Along with water quality, poor sanitation is one of the factors contributing to malnourishment. In this context it has been proposed to increase the budgetary allocation for rural drinking water and sanitation from Rs.11,000 crore in 2011-12 to Rs. 14,000 crore in 2012-13. This is an increase of over 27 per cent. Pradhan Mantri Gram Sadak Yojana (PMGSY) has been a successful programme. In 2012-13, it has been proposed to raise the allocation by 20 per cent to this scheme by providing Rs. 24,000 crore. A major initiative has been proposed to strengthen Panchayats across the country through the Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA). This programme will expand on the existing schemes for Panchayat capacity building. Continuing with the focus on the development of backward regions the allocation for the Backward Regions Grant Fund scheme into the Twelfth Plan with has been enhanced to Rs. 12, 040 crore. This includes the State component which covers projects in backward areas in Bihar, West Bengal and the Kalahandi-Bolangir-Koraput region of Odisha, development projects for drought mitigation in the Bundelkhand region and projects under the Integrated Action Plan to accelerate the pace of development in selected tribal and backward districts. The allocation under Rural Infrastructure Development Fund has been enhanced to Rs. 20, 000 crore. Further in view of the warehousing shortage in the country, it has been proposed to earmark an amount of Rs. 5,000 crore from the above allocation exclusively for creating warehousing facilities under RIDF. Education The Right to Education (RTE) Act is being implemented with effect from April 1, 2010 through the Sarva Shiksha Abhiyan (SSA). For 2012-13, Rs. 25,555 crore have been provided for RTE-SSA. This is an increase of 21.7 per cent over 2011-12. In the Twelfth Plan, 6,000 schools have been proposed to be set up at block level as model schools to benchmark excellence. Of these, 2500 will be set up under Public Private Partnership. The Rashtriya Madhyamik Shiksha Abhiyan (RMSA) was launched in March, 2009 to enhance access to quality secondary education. In 2012-13, it has been allocated Rs. 3,124 crore for RMSA which is nearly 29 per cent higher than the allocation in 2011-12. A Credit Guarantee Fund is proposed to be set up to ensure better flow of credit to deserving students. Health Under National Rural Health Mission (NRHM) the ambit of activities of Accredited Social Health Activist- ASHA has been proposed to be enlarged. This includes prevention of Iodine Deficiency Disorders, ensure 100 per cent immunisation and better spacing of children. At the
community level, a more active role is envisaged for ASHA as the convenor of the Village Health and Sanitation Committee, as also to support the initiative on malnutrition. National Urban Health Mission is being proposed to be launched to encompass the primary healthcare needs of people in the urban areas. The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) aimed at setting up of AIIMS-like institutions and upgradation of existing Government medical colleges is being expanded to cover upgradation of 7 more Government medical colleges. It will enhance the availability of affordable tertiary health care. Employment and Skill Development The Swarnjayanti Gram Swarozgar Yojana (SGSY) has been restructured into National Rural Livelihood Mission (NRLM) to provide self-employment opportunities. A sub-component, Mahila Kisan Sashaktikaran Pariyojana, under NRLM seeks to provide better targeting of women farmers. For NRLM, the allocation has been increased by over 34 per cent from Rs. 2,914 crore in 2011-12 to Rs. 3,915 crore in 2012-13. Womens SHGs Development Fund was announced in the Budget 2011-12 and being implemented by NABARD. Its corpus has been increased from Rs. 200 crore to Rs. 300 crore. This Fund will also support the objectives of Aajeevika i.e. the National Rural Livelihood Mission. It will empower women SHGs to access bank credit. It is proposed to establish a Bharat Livelihoods Foundation of India through Aajeevika. The Foundation would support and scale up civil society initiatives and interventions particularly in the tribal regions covering around 170 districts. Private trusts and philanthropic organisations would be encouraged to partner with the autonomous body that will be managed professionally.
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To encourage micro enterprises, a credit linked subsidy programme namely Prime Ministers Employment Generation Programme (PMEGP) is being implemented through KVIC. The allocation for this programme has been increased by 23 per cent from Rs. 1,037 crore in 2011-12 to Rs. 1,276 crore in 2012-13. Skill Development For 2012-13, it has been proposed to allocate Rs. 1000 crore to National Skill Development Fund (NSDF). In order to improve the flow of institutional credit for skill development, it has been proposed to set up separate Credit Guarantee Fund. This will benefit youth in acquiring market oriented skills. A new scheme titled Himayat was introduced in Jammu and Kashmir from 2011-12. It aims to provide skill training to one lakh youth in the next five years. The entire cost of this programme is being borne by the Centre. Social security and the needs of weaker sections The allocation under the National Social Assistance Programme (NSAP) by 37 per cent from Rs. 6,158 crore in 2011-12 to Rs. 8,447 crore in 2012-13. Under the ongoing Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme for BPL beneficiaries, the monthly pension amount per person is being raised from Rs. 200 to Rs. 300.
the Aadhaar system have crossed 20 crore and the Aadhaar numbers generated upto date have crossed 14 crore. It has been proposed to allocate adequate funds to complete another 40 crore enrolments starting from April 1, 2012. The Aadhaar platform is now ready to support the payments of MG-NREGA; old age, widow and disability pensions; and scholarships directly to the beneficiary accounts in selected areas. Black Money: Last year government had outlined a five pronged strategy to tackle the malaise of generation and circulation of black money and its illegitimate transfer outside India. Government has taken a number of proactive steps to implement this strategy. As a result: 82 Double Taxation Avoidance Agreements (DTAA) and 17 Tax Information Exchange Agreements (TIEA) have been finalised and information regarding bank accounts and assets held by Indians abroad has started flowing in. In some cases prosecution will be initiated;
in Parliament with a view to bring certain provisions of the Act in line with global standards; Benami Transactions (Prohibition) Bill, 2011 is currently being examined by the Standing Committee on Finance. It would replace the Benami Transactions (Prohibition) Act, 1988; and National Drugs and Psychotropic Substances (Amendment) Bill, 2011 introduced in Parliament with a view to strengthen legal provisions for implementation of the national policy on Narcotic Drugs and Psychotropic Substances.
Tax Proposals
Direct Taxes Tax proposals for 2012-13 mark progress in the direction of movement towards DTC and GST. DTC rates proposed to be introduced for personal income tax.
Exemption limit for the general category of individual taxpayers proposed to be enhanced from Rs. 1,80,000 to Rs. 2,00,000 giving tax relief of Rs. 2,000. Dedicated exchange of information cell for speedy exchange of tax Upper limit of 20 per cent tax slab proposed to be raised from Rs. 8 lakh information with treaty countries is to Rs. 10 lakh. fully functional in CBDT;
On the death of the primary breadwinner of a BPL family, in the age group 18 to 64 years, a lumpsum grant of Rs. 10,000 is presently Strengthening anti-corruption To provide low cost funds to stressed provided under the National Family infrastructure sectors, rate of framework: Benefit scheme. It has been proposed withholding tax on interest payment to double this amount to Rs. 20,000 The following legislative measures for on ECBs proposed to be reduced and expect a matching contribution strengthening anti-corruption framework from 20 per cent to 5 per cent for are in various stages of enactment: by the State Governments. 3 years for certain sectors. These Prevention of Money Laundering Governance sectors are: power; airlines; roads (Amendment) Bill, 2011 introduced and bridges; ports and shipyards; UID-Aadhaar: The enrolments into
India became the 33rd signatory Proposal to allow individual tax payers, a deduction of upto Rs. of the Multilateral Convention on 10,000 for interest from savings Mutual Administrative Assistance in bank accounts. Tax Matters; and Directorate of Income Tax Criminal Proposal to allow deduction of upto Rs. 5,000 for preventive health check Investigation has been established up. in CBDT. It is in this context the Budget proposes Senior citizens not having income from business proposed to be to lay on the table of the House a white exempted from payment of advance paper on Black Money in the current tax. session of Parliament.
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The important inclusions in the negative list comprise all services provided by the government or local authorities, except a few specified services where they compete with private sector. The list also includes pre-school and school education, recognised education at higher levels and approved vocational education, renting of residential dwellings, entertainment and amusement services and a large part of public transportation including inland waterways, urban railways and metered cabs. As a measure of harmonisation between Central Excise and Service Tax, a number of alignments have been made. These include a common simplified registration form and a common return for Central Excise and Service Tax, to be named EST-1. This common return will comprise only one page, which will be a significant reduction from the 15 pages of the two returns at present.
Increasing the onus of proof on Investment linked deduction of closely held companies for funds capital expenditure incurred in the received from shareholders as well following businesses is proposed to as taxing share premium in excess of be provided at the enhanced rate of fair market value. 150 per cent, as against the current Taxation of unexplained money, rate of 100 per cent. The sectors are: credits, investments, expenditures, Cold chain facility; Warehouses for etc., at the highest rate of 30 per Revision Application Authority and Settlement Commission are being storage of food grains; Hospitals ; cent irrespective of the slab of introduced in Service Tax to help Fertilisers; and Affordable housing. income. resolve disputes with far greater In this Budget the new sectors added ease. are: The following new sectors are: Reduction in securities transaction tax by 20 per cent on cash delivery bee keeping and production of honey It has been proposed to raise the transactions. and beeswax; container freight service tax rate from 10 per cent Proposal to extend the levy of station and inland container depots; to 12 per cent, with consequential Alternate Minimum Tax to all persons, and warehousing for storage of sugar changes in rates for services that other than companies, claiming have individual tax rates. Series of measures to deter the profit linked deductions. generation and use of unaccounted The proposals from service tax are money has been proposed. These are A net revenue loss of `4,500 crore expected to yield an additional estimated as a result of Direct Tax revenue of Rs. 18,660 crore. Introduction of compulsory reporting proposals. requirement in case of assets held Other indirect taxes abroad. Indirect Taxes In the wake of the global financial Allowing for reopening of assessment Service Tax crisis in 2008-09, the standard rate of upto 16 years in relation to assets In light of the increased contribution excise duty for non-petroleum goods held abroad. was reduced from 14 per cent to 8 of the Services to the GDP to the per cent in a phased manner. This Tax collection at source on purchase tune of 59%, it has been proposed rate was raised from 8 per cent to 10 in cash of bullion or jewellery in to tax all the services except those per cent in Budget 2010-11. Given excess of ` 2 lakh. in negative list. The negative list the imperative for fiscal correction, comprises 17 heads and has been Tax deduction at source on transfer it has been proposed to now raise carefully drawn up, keeping in view of immovable property (other than the standard rate from 10 per cent the federal nature of our polity, the agricultural land) above a specified to 12 per cent, the merit rate from 5 best international practices and our threshold. per cent to 6 per cent, and the lower socio-economic requirements. Tax collection at source on trading in
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10
sector and help address supply-side constraints. The commitment to cap the subsidies within 2% of the GDP by 2015 is good in intent. The commitment to fully fund the food subsidy but limit the No change is proposed in the peak fertilizer and fuel subsidy bill to create rate of customs duty of 10 per cent fiscal space for investment spending is a on non-agricultural goods. Barring a right step. However, the steps taken for few individual items, the rates below fiscal consolidation stop short of the peak are also being retained. action. Although additional resource Tax Reforms mobilization through an increase in GST Network (GSTN) to be set up as a excise duty and services tax will provide National Information Utility and will some boost to revenue collections, the become operational by August 2012. impact of slow growth in industry and The GSTN will implement common services could result in lower-thanPAN-based registration, returns budgeted tax collections. Moreover, filing and payments processing for tepid investor sentiment could also all States on a shared platform. The affect the disinvestment revenue budget use of PAN as a common identifier in of Rs. 30, 000 for 2012-13. In addition both direct and indirect taxes, will to this, given the inelastic nature of enhance transparency and check tax government expenditure, the Budget evasion. seems conservative on its expenditure estimates which is expected to be An Analysis of the Budget Budget 2012-13 did not enjoy the higher on account of under-budgeting positive growth environment that the of fertilizer and petroleum subsidies. previous Budget did. Although inflation These factors are likely to make the has come down a little, the overall fiscal deficit target of 5.1% for 2012-13 macroeconomic situation remains quite unachievable. merit rate from 1 per cent to 2 per cent. However, the lower merit rate for coal, fertilisers, mobile phones and precious metal jewellery is being retained at 1 per cent. challenging on both the domestic and global fronts. Persistently high inflation in the last few years has constrained the monetary policy for being aggressive on rate cuts to support growth. The sharp slippage in fiscal and revenue deficits in 2011-12 dented the effectiveness of fiscal policy to pump-prime the economy. The Budget, therefore, was expected to take steps to set the fiscal house in order. This called for a reduction in deficit and an improvement in the quality of expenditure. That is, reducing consumption expenditure and increasing investment expenditure. Inflation to rise in short-term Indian economy is already battling with the inflation and its effective management. The dangers on this front still looms large on account of inadequate fiscal consolidation and the uncertain global environment especially the tensions in the Middle-East which could push the prices of oil. However, the proposed steps in Budget even though the effects will be in short run falls short of countering this challenge. For instance, the proposal to reduce subsidies at under 2% of the GDP implies that there is likelihood of higher pass through of international fuel prices into Fiscal consolidation: short in action domestic retail prices. But in longer term The Budget does attempt to tilt the expenditure balance towards investment. it could ease government subsidy burden For instance, capital expenditure is and help reduce non-Plan expenditure. The increase in the services taxes budgeted to grow at 30.6% as against and excise duty from 10% to 12% will 10.7% growth in revenue expenditure. Also the proposed steps to improve also add to the inflationary pressures access to funding and tax concessions in the economy in the short-run. But will boost investment in infrastructure this equal increase in the services tax
and excise duty is a move towards early introduction of the 4G of tax reforms, i.e., introduction of Goods and Services Tax (GST). Sooner the GST is introduced greater the benefits in terms of unification of taxation system and lowering of retail prices through eliminating cascading effect of taxes. Agriculture still the priority This Budget like previous Budgets has accorded special priority to agriculture in terms of allocating resources. This becomes pertinent in view of rising food prices. The Budget in this direction increased the plan outlay of Department of Agriculture and Cooperation by 18% over the previous year. Furthermore, encouraged by the success of Bringing Green Revolution to Eastern India (BGREI), the allocation of the scheme has been increased to Rs. 10 billion in 2012-13 form Rs. 4 billion in 2011-12. The target for agricultural credit for 2012-13 has been raised by 21% to Rs. 5.75 lakhs from Rs. 4.75 lakhs in 201112. Moreover, a new centrally sponsored scheme titled National Mission on Food Processing has been envisaged in cooperation with the State governments. Infrastructure Funding and Investment Incentivised Healthy infrastructure spending holds the key to facilitating economic growth in India through easing supply-side constraints. However, in the Budget 2012-13, the year-on-year growth of allocation to major infrastructure sectors including power, road transport and etc has been increased by a mere 7.4% as compared to 36% in 2011-12. The Budget, however, has announced a host of measures to improve the flow of funds to infrastructure. For instance, the amount of tax-free bonds has been doubled from Rs. 30, 000 crore to Rs. 60, 000 crore while India Infrastructure Finance Company Limited (IIFCL) has established a structure for credit enhancement and take-out finance to ease access of credit to various infrastructure projects. One of the primary vehicles of the government to address
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The Unfolding
infrastructure insufficiencies in urban areas is the JNNURM, whose allocation has been almost trebled in 2012-13 as compared to revised estimates of 201112. To ease the supply-side constraints emanating from inadequate gross capital formation in agriculture, the Budget has expanded the scope of eligibility of viability gap funding under VGF scheme to include certain agriculture activities like extension services and soil testing laboratories. Moreover, to overcome the funding inadequacies in sectors like civil aviation and power sector, the External Commercial Borrowing (ECB) route has been allowed. The above measures success though would depend depend on how much government pays importance to actual implementation of various schemes. As the study shows that in past few years, the actual expenditure under various
social sector schemes has invariably increase of around 20 per cent over last fallen short of the budgeted expenditure. year. Allocations for schedule castes sub-pan and tribal sub-plan have gone Inclusiveness Agenda Widened up by 18 per cent and 17.6 per cent Inclusive growth is critical to sustain respectively. its current growth momentum and However, the allocation to the overall economic development in the MGNREGA has seen a decline. This was long run. Inclusion has been given due importance in this Budget as well, and keeping in view the underutilization of efforts have been to ensure the benefits the allocated funds and leakages in the of growth trickle down to bottom of the scheme. The Budget emphasizes on the pyramid through budgetary transfer. need to improve the focus of the scheme The Budget 2012-13 expands it further from provision of mere employment by allocating more resources to the to creation of quality assets for rural ongoing programmes and mentions the infrastructure. Overall the scenario painted on the introduction of the Food Security Bill. The Budgetary allocation to the Ministry growth and fiscal consolidation in the of Rural Development stands Rs. 736.8 Budget is wholly speculative mainly billion, a 10 per cent increase over the because the government has little revised estimates of the last fiscal. The control over it. But on other fronts flagship scheme PMGSY to provide and the Budget 2012-13 has made a bold enhance rural connectivity has received attempt under the given circumstances. an allocation of Rs. 240 billion, an
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ThE uNfolDINg...
The Economic Survey suggests that the progressive deregulation of The growth rate of investment in interest rates on savings accounts the economy is estimated to have Introduction will help raise financial savings and registered a significant decline Indian economy is estimated to grow improve transmission of monetary during the current year. The year by 6.9% in 2011-12 mainly due to policy. Other key areas include the witnessed a sharp increase in interest weakening industrial growth. This deepening of domestic financial rates that resulted in higher costs of indicates a slowdown compared not markets, especially corporate bond borrowings; and other rising costs just to the previous two years, when market and attracting longer-term affecting profitability and, thereby, the economy grew by 8.4%, but also inflows from abroad. internal accruals that could be used from 2003 to 2011, except 2008to finance investment. Indias foreign trade performance will 9 economic downturn, when the remain a key driver of growth. During Despite the low growth figure of growth rate was 6.7 percent. the first half of 2011-12, Indias 6.9%, India remains one of the The Economic Survey 2011-12, export growth was a high 40.5%, but fastest growing economies of the presented predicts 7.6% GDP growth has been decelerating since. Imports world as all major countries including in 2012-13 and 8.6% in 2013have growth rapidly, by 30.4% during the fast growing emerging economies 14. With agriculture and services 2011- 12 (April-December). are seeing a significant slowdown. continuing to perform well, the Balance of Payments has widened slowdown can be attributed almost The global economic environment to $ 32.8 billion in the first half of which was tenuous at best entirely to weakening industrial 2011-12, compared to $29.6 billion throughout the year, turned sharply growth. during the corresponding period adverse in September, 2011, owing The services sector continues to be of 2010-11. The foreign exchange to the turmoil in the euro-zone a star performer as its share in GDP reserves increased from US $ 279 countries and questions about has climbed from 58% in 2010-11 to billion at end March 2010 to US $ others, reflected in sharp ratings 59% in 2011-12 with a growth rate 305 billion at end March 2011. downgrades of sovereign debt in of 9.4%. Reserves varied from an all-time peak most major advanced countries. of US$ 322.2 billion at end August, Agriculture and allied sectors are While a large part of the reason for 2011 and a low of US $ 292.8 billion estimated to achieve a growth rate the slowing of the Indian economy at end-January, 2012. of 2.5% in 2011-12 with foodgrains can be attributed to global factors, production likely to cross 250.42 domestic factors also played role. The Survey suggests that rapid fiscal
INDIA PREPARES
The Unfolding
Liquidity conditions have generally foodgrains in the central pool and remained in deficit during 2011as on February 1, 2012 it was 55.2 12. However, the RBI has addressed million tonnes comprising 31.8 liquidity concerns via the use of its million tonnes of rice and 23.4 million standard tools. The monetary market tonnes of wheat. This is adequate for has, in general, remained orderly meeting the requirements under the during 2011-12 with the rates in targeted public distribution system The centres gross tax-GDP ratio (BE collateralized segments moving (TPSD) and welfare schemes during 2011-12) stood at 10.5 per cent. Our in tandem with the call rate, but the current financial year. aim must be to cross 13 per cent by generally remaining below it. As per the Second Advance Estimates, 2016-17 adds the Survey. The Survey suggests that there is production of foodgrains during 2011 The Economic Survey 2011-12 also a need to examine the linkages 12 has been estimated at 250.42 notes that critical task of inclusion and trade-offs between policy rate million tonnes. cannot be left to the free market. For changes and inflation in the Indian Expressing concern over decline in the Government the role has to be that of context, for better calibration of area under food grains cultivation the enabler. monetary policy. Survey calls for speedy improvement Indias comparative rating index for There is also scope to further sharpen in yield through adequate investment sovereigns (CRIS), has seen a rise monetary policy and macro prudential in research and development. Pooling from 23.81 in 2007 to 24.52 in 2012. tools to deal with asset price bubbles of many land holdings may yield better Since the CRIS is a comparative rating in the real estate and stock markets results for which land laws for leasing score, it means that vis--vis the rest and the risks associated with these, with sufficient safeguards in place of the world, Indias rating has risen which carry implications for the real should be considered. Addressing by 2.8 per cent per year. economy. infrastructure requirements in the Inflation and its management agriculture sector, especially storage, Monetary policy remained focussed on communication, roads and market Wholesale Price Index (WPI) controlling inflation and anchoring should be priority. which remained persistently high inflationary expectations, which has throughout 2011 due to increasing slowed growth. These effects, coupled The Economic Survey has suggested global commodity prices and high with a favourable base effect in prices following options to address supply crude prices has started showing signs and continued global slowdown, are side constraints existing in the food of moderation and it is expected to expected to moderate inflation to sector: touch 6.5 to 7 percent by March 2012. around 6.5 to 7.0 percent by March Extension programmes and guidance It may further moderate during 2012and further moderate in the months to farmers regarding fertiliser and 13 due to tightening of monetary ahead, barring unexpected shocks, insecticide uses an alternate cropping policy and other measures put in such as oil prices in international pattern based on soil analysis could place by the Government. markets. be undertaken and intensified. In the current financial year the gap Agriculture As a strategy, regular imports of between WPI and CPI inflation has agriculture commodities in relatively The Survey expresses concern over significantly narrowed due to drastic smaller quantities with an upper the growth rate in agriculture sector fall in food inflation. CPI-IW inflation, ceiling on total quantity could be which has fallen short of planned after remaining in single digit from considered. target inspite of record food grain August 2010 to August 2011, briefly production. During the current Five Setting up special markets for touched double digits at 10.1 percent Year Plan it is estimated at 3.28 special crops in states/regions/areas in September 2011 but came down to percent against the target of 4 producing those crops would facilitate 6.5 percent in December 2011. percent. supply of superior commodities to the The Survey says that the major drivers consumers. According to Survey, agriculture of food inflation during the current and allied sectors are estimated to Improved Mandi governance is an financial year were milk, eggs/meat/ achieve a growth rate of 2.5 percent area of concern. A greater number of fish, gram and edible oils. WPI food during 2011-12. traders must be allowed as agents in inflation (weight 24.31 percent) mandis. Anyone who gets better prices has significantly dropped from 20.2 Agriculture including allied activities and terms outside the Agricultural accounted for 13.9 percent of Gross percent in February 2010 to 1.6 Produce Marketing Committee (APMC) Domestic Products (GDP) in 2011-12. percent in January 2012 mainly on or its farmgate should be allowed to the back of seasonal fall in fruits & The successive high production do so. vegetables prices and good harvest levels boosted the stock position of leading to lower inflation in cereals consolidation is the only way out to keep inflation down and aim for robust growth. The principle way in which this has to be achieved is by raising our tax-GDP ratio and cutting down wasteful expenditures.
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The Unfolding
14
Volatility in capital flows resulting from the spillover effects of monetary policy choices and other uncertainties in the advanced financial markets further impacted exchange rates During April- Dec 2011, the maximum and made the task of macrogrowth in exports was observed economic management difficult in in the petroleum and oil products many emerging economies. This has sectors (55%) followed by gems Perishable food items could be taken brought out a new dimension of and jewellery (38.5%); readymade out of ambit of the APMC Act. The globalization in the post-financial garments (23.7%); engineering Government regulatory mandis crisis world, where easy monetary (21.6%); drugs (21.5%); and sometimes prevent retailers from policy in one set of countries may electronics sector. integrating their enterprises with result in inflation elsewhere due to During the ten-year period from those of farmers. In view of this cross-border capital flows. perishable may have to be exempted 2000-01 to 2009-10, while the share from this regulation. The changes in composition of the of petroleum crude and products global economy suggest a perceptible increased by 11.8 percentage but the Considering significant investment shift in the global balance of output share of manufactures and primary gaps in post harvest infrastructure of goods, especially manufacturing. products fell almost proportionately of agriculture produce, organised While services, in particular financial by 11.6 and 1.1 percentage points trade and agriculture should be services, continue to be largely respectively during the same period. encouraged and the FDI in multi concentrated in advanced economies, mports during April - Jan 2011-12 brand retain once implemented could I a large share in world population, be effectively leveraged towards this were valued at US $ 391.5 billion, coupled with higher growth, end. which was 29.4 per cent higher than implies that the EMEs (Emerging the level of US $ 302.5 billion during The Government should step up Market Economies) and developing the same period last year. creation of modern stories facilities countries will increasingly account for food grains. for incremental growth in the global During April - Jan 2011-12, the maximum growth in imports was External Sector market for goods and services. observed in Gold and silver (46.2%) The present state of the global Indian economy though has followed by POL (petroleum, oil and economy not only presents new advantageous demographic dividend lubricant) imports (38.8%) and nonopportunities but also the new but still is the poorest among the POL sector (25.7%) challenges and responsibilities for G-20 countries. Therefore, to emerge the Indian economy. as a strong global player, it needs Trade deficit during April-Jan 201112 was US $ 148.7 billion as against to address: (i) its low spending on As per the IMF, at a growth rate of US $ 105.9 billion during the same Research and Development and 7 per cent, India is projected to be period in the last fiscal. innovation; (ii) low energy intensity the second fastest growing major of GDP; (iii) 80 per cent dependence In the case of imports, there are no economy after China. The share of major compositional changes other on imports for petroleum products; India in global merchandise exports than the sudden rise in share of gold (iv) dependence on global markets has increased from about 0.5 per and silver imports from 9.3 per cent for food security; and (v) a need for cent in 1990 to 1.5 per cent in 2010. in 2000-01 to 13.3 per cent in the sustained investment. In the medium term, challenges first half of 2011-12. However, a for the global economy continue composition and Direction of fall in the share of pearls, precious to emanate from the way the Euro Trade and semi-precious stones has been zone crisis is addressed. The high observed during this period. During the period April 2011 - Jan deficits and debts in Japan and the 2012, Indias cumulative exports The share of Asia and ASEAN in the US and slow growth in high income grew at a rate of 23.5 per cent total trade increased from 33.3 per countries in general, have not been reaching US $ 242.8 billion. cent in 2000-01 to 57.3 per cent resolved. The looming risk to the in the first half of 2011-12, while The growth in exports, which was global outlook is also on account of that of Europe and America fell from moving robustly at 40.6 per cent the geopolitical tensions centered on 42.5 per cent to 30.8 per cent. This during the first half of this fiscal, Iran that could disrupt oil supply and
For promoting interstate trade, a commodity for which market fee has been paid once must not be subjected to subsequent market fee in other markets including that for transaction in other states. Only user charges linked to services provided may be levied for subsequent transactions.
result in a sharp increase in oil prices and even disrupt supply routes.
began to decelerate during the months of October and November owing to the Euro zone crisis before recovering back to 6.7 per cent and 10.1 per cent in Dec 2011 and Jan 2012 respectively.
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The Unfolding
Indias push towards regional and bi-lateral agreements should result in meaningful and resultoriented Free Trade Agreements An interesting development in the (FTAs) and Comprehensive Economic direction of Indias trade is that USA, Cooperation Agreements (CECAs). which was in the first position in 2007-08 has been relegated to the Progress of Special Economic third spot in the following years, Zones (SEZs) with the UAE becoming Indias largest trading partner, followed by As on 31 Dec 2011 the total physical exports have been to the tune of China. Rs. 2,60,972.90 crore, registering Indias services exports, which had a growth of 14.5per cent over the recorded a contraction of 9.4 per exports of corresponding period of cent in 2009-10 due to the global the previous year. financial crisis bounced back to grow by 38.4 per cent to US $ 132.9 The total investment in SEZs till 31 Dec 2011 is Rs. 2,49,630.80 crore, billion in 2010-11. However, growth including Rs. 2,31,160 crore in the in export of services moderated newly notified zones. during the first half of 2011- 12 to 17.1 per cent compared to 32.7 per In a short span of about five cent during the first half of 2010-11. years since the SEZs Act and Rules were notified in Feb 2006, formal Though India has successfully approvals have been granted for diversified its markets with reduced setting up of 583 SEZs out of which dependence on the EU and the US, 380 have been notified. Europe still has a 19.5 per cent share in Indias exports. Besides, Out of the total employment some of Indias trading partners are provided to 8,15,308 persons dependent on Europe, thus affecting in SEZs as a whole, incremental the countrys trade indirectly. The employment generated after Feb software exports too may show 2006 i.e. when the SEZ Act came some sluggishness as the Euro zone into force is 6,80,609 persons. accounts for 30 per cent of the total current Account Deficit tourist arrivals in India. The challenges for India on the trade In the current fiscal 2011-12, on month-to-month basis the rupee front are due to the current emerging depreciated by 12.4 per cent from global situation, the others are 44.97 per US dollar in March 2011 to systemic and long-term in nature. 51.34 per US dollar in January 2012. These are: Rupee reached a peak of 43.94 on If the global situation worsens, the July 27, 2011, and lowest at 54.23 pressure for stimulus measures could per US dollar on December 15, 2011 again resurface and protectionist indicating a depreciation of 19 per measures from trading partners cent. could increase. Therefore, a lot more needs to be done on diversification During fiscal 2011-12, forex reserves reached all time high level of US $ of Indias export basket as its export 322.2 billion at end August 2011. presence is limited in the top items However, it declined to US $ 292.8 of world trade. billion at end January 2012 indicating It must ensure greater trade a fall of US $ 12.0 billion from US facilitation by removing the delays $ 304.8 billion at end-March,2011. and high costs due to procedural The decline in reserves is partly due and documentation factors, besides to intervention by the Reserve Bank infrastructural bottlenecks is another of India to stem the slide of Rupee major challenge.
has helped India weather the global crisis emanating from Europe and America.
against US dollar. Indias external debt stock increased by US $ 20.2 billion (6.6 per cent) to US $ 326.6 billion at end-September 2011 vis--vis US $ 306.4 billion at end-March 2011, primarily on account of higher commercial borrowings and short-term debt. The long-term external debt at US $ 255.1 billion accounted for 78.1 per cent of the total external debt while the short-term debt was at 21.9 per cent. Government (sovereign) external debt stood at US $ 79.3 billion, while non-Government debt amounted to US $ 247.3 billion at end-September 2011. The current account deficit was US $ 32.8 billion (3.6 per cent of GDP) in H1 of 2011-12, as compared to US $ 29.6 billion (k3.8 per cent of GDP) during the corresponding period of 2010-11. This was mainly on account of the trade deficit of US $ 85.8 billion (9.4 per cent of GDP) due mainly to increase in international prices of imported commodities viz oil and gold and silver. Net capital flows at US $ 41.1 billion (4.5 per cent of GDP) in the first half of 2011-12 remained higher as compared with US $ 38.9 billion (5 per cent of GDP) in the first half of 2010-11. FDI (US $ 12.3 billion) and external commercial borrowing (US $ 10.6 billion) have shown increasing trend during H1 of 2011-12 over the corresponding period of 2010-11. Portfolio investment, however, witnessed large decrease in inflow to US $ 1.3 billion in H1 of 2011-12 vis-a-vis US $ 23.8 billion in H1 of 2010-11. According to the Economic Survey, a trade deficit of more than 8 per cent of GDP and current account deficit of more than 3 per cent is a sign of growing imbalance in the countrys BOP. High share of volatile FFI flows is an added external shock. The rupees high volatility impairs
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16
The ability of the Indian financial The outstanding priority sector system which is bank dominated advances of PSBs rose by almost to withstand stress is critical for 19 per cent between March 2010 to overall stability. Moreover, with March 2011. The increase was from further globalization, consolidations, Rs 8,63,777 crore to Rs 10,28,614 deregulation and diversification of crore. The advances of Private Sector the financial system, the banking Banks showed a growth of 15.9 per business may become more complex cent during the same period. and riskier. Therefore, issues like risk and liquidity management coupled The Indian banking system disbursed credit of Rs 4,46,779 crore to the with skill enhancement assumes agricultural sector as against a greater significance. target of Rs 3,75,000 crore in-2010 An important reason India emerged 11, thereby exceeding the target by largely unscathed from the global around 19 per cent. The extension crisis of 2008 is the strict external of credit has taken the total number commercial borrowings (ECB) policy of new farmers brought under the that places all-in-cost, end-use banking system to 127.26 lakhs. and maturity restrictions on foreign The Self Help Group-bank linkage borrowings by the corporate. The programme is being implemented corporate, were therefore not by Commercial Banks, Regional exposed to balance sheet recession Rural Banks (RRBs) and Cooperative that could have happened due Banks. Under this, as on 31 March to excessive foreign borrowings. 2011, over 74 lakh SHGs held bank The liberalization of ECB policy, accounts with total savings of nearly however has to keep in view the Rs.7,000 crores as against 69.5 lakh need to maintain sustainable levels SHGs with savings of Rs 6,200 crores of external debt. Other challenges as on 31 March 2010. include: innovative steps to bring corporate bond market at the centre 98 per cent of Public Sector Bank branches are today fully stage of infrastructure financing computerized. In 2010-11, the and to meet financing requirements, number of ATMs witnessed a growth particularly of the unorganized of 24 per cent over the previous year. sector/self-employed in the micro/ small business sector. Services Sector
During Financial Year 2011-12 growth 1950-1 to 55.1 per cent in 2010-11 in bank credit extended by Scheduled and to 56.3 per cent in 2011-12 as Commercial Banks (SCBs) stood at per Advance Estimates (AE). 8.2 per cent as on 16 December If construction is also included, the 2011, with year-on-year growth at Service Sectors share increased to 17.1 per cent. 63.3 per cent in 2010-11 and 64.4 per cent in 2011-12. While agriculture continues to be the primary employment-providing sector, the Services Sector (including construction) is in second place. As per the National Sample Survey Organisations (NSSO) report on Employment and Unemployment Situation in India 2009-10, on the basis of usually working persons in the principal status and subsidiary status, for every 1000 people employed in rural and urban India, 679 and 75 people are employed in the agriculture sector, 241 and 683 in services sector (including construction) and 80 and 242 in the industrial sector, respectively. The combined FDI share of financial and non-financial services, computer hardware and software, telecommunications and housing and real estate is 41.9 per cent of the cumulative FDI equity inflows during the period April 2000-December 2011. With the inclusion of the construction sector (6.5 per cent), the share of services in FDI inflows increases to 48.4 per cent.
FDI inflows to the Services Sector (top five sectors including construction) have also slowed down in 2009-10 Indian Banking and 2010-11, with negative growths Services Sector continues to remain of -7.5 per cent and -42.5 per cent growth engine for Indian Economy Capital is a key measure of banks respectively in rupee terms. growing at the rate of 9.4% which capacity for generating loan assets was little higher than the 9.3% in In 2011-12 (April to December), and is essential for balance sheet the previous year. The moderation expansion. Rs 12,000 crore has been following the trend of overall FDI in the services sector growth at the provided in the Revised Estimates inflows, which increased by 50.8 end of the year 2011-12 is due to 2011-12, under Plan, for capital per cent to reach US$ 24.19 billion, the steep fall in growth of public infusion in Public Sector Banks FDI inflows to the top five Service administration and defence services (PSBs) to enable them to maintain Sectors (including construction) also reflecting fiscal consolidation. a minimum Tier 1 CRAR at 8 per increased by 36.8 per cent to US$ cent on 31st March 2012, and also The share of services in Indias GDP 9.3 billion to the Services Sector in to increase shareholding of the 2011-12 (April-December). at factor cost (at current prices) Government of India in the PSBs to increased from 33.5 per cent in 58 per cent.
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The Unfolding
employment in India. These surveys The highest growth rates of the indicate that the upward trend in Services Sector are in the northemployment since July 2009 has eastern States of Arunachal Pradesh been maintained. (34.9 per cent) and Sikkim (30.1 per cent). Among the other States, The results for selected sectors i.e. Goa with 20.1 per cent and Bihar textiles including apparel, leather, with 16.6 per cent growth top the metals, automobiles, gems and list. This is over and above their very jewellery, transport information high growth rates in 2008-09. Other technology (IT)/business process States with higher than national outsourcing (BPO) and handloom/ average growth in the sector are powerloom are as follows: Kerala, Tamil Nadu, Maharashtra and Overall employment in September, Mizoram. 2011 over September, 2010 has Sustainable development and increased by 9.11 lakh, with the highest increase recorded in IT/ climate change BPO (7.96 lakh) sector followed by The Economic Survey 2011-12 to 1.07 lakh in Metals, 0.71 lakh in make lower carbon sustainable Automobiles, 0.08 lakh in Gems & growth a central element of our jewellery and 0.07 lakh in Leather Twelfth Five Year Plan commencing industries during the period. in April 2012. Indias per capita CO2 emissions are much lower (1.52 CO2 tons) than those of the developed countries even if historical emissions are excluded. Steps taken by India to tackle climate change are : (i) adoption of the National Action Plan on Climate Change (NAPCC) in 2008 which has both mitigation and adaptation measures; (ii) an announcement of a domestic goal of reducing the emission intensity of its GDP by 20-25 per cent of the 2005 level by 2020 is a noteworthy measure. Five key challenges as outlined by the 2009 State of the Environment Report by the Ministry of Environment and Forests (MoEF) are: climate change, food security, water security, energy security and managing urbanization.
has increased by 1.9 % in 2010, which is lower than the annual growth for the previous year. The annual growth rate for the private sector was much higher than that for the public sector. However, in respect of both sectors, annual increase in employment had slowed down in 2010 vis--vis 2009. The share of women in organizedsector employment was 20.4 per cent in 2010 March end and has remained nearly constant in recent years.
Education
In the primary education sector, the reforms initiated in 2010-11, continued during the year 2011-12. The expenditure on education as a proportion of GDP by General government has increased from 2.72 per cent in 2006-07 to 3.11 per cent in 2011-12 (BE).
Employment
On the employment front, the country has been able to withstand Overall estimated employment in all The number of out-of-school children selected sectors has experienced a the adverse impact of the global has come down from 134.6 lakh in net addition of 23.58 lakh during the crisis and generate employment 2005 to 81.5 lakh in 2009 as per an period October, 2008 (first survey) to since July, 2009. The Labour Bureau independent study conducted by the September, 2011 (twelfth survey) conducted twelve quarterly quick SRI-IMRB. employment surveys to assess the Employment growth in the organized As part of the National Mission in impact of the economic slowdown on sector, public and private combined, Education through ICT, content
An upward trend in employment has been continuously observed since July 2009. During the quarter July to September 2011, employment has The Sarva Shiksha Abhiyan (SSA) increased in respect of all sectors norms have been revised to except Leather and Transport where correspond with the provisions of there was a marginal fall. The overall the RTE Act including norms for employment has increased by 3.15 sanctioning additional teacher lakh during the quarter. At the posts, classrooms, teaching-learning sectoral level, the maximum increase equipment to enable states to of 2.04 lakh in employment during move to an eight year elementary the period September, 2011 over education cycle, enhancement of June, 2011 was in IT/BPO sector, academic support for better school followed by increase of 0.42 lakh in supervision, and expansion of Textiles including Apparels, 0.38 lakh Kasturba Gandhi Balika Vidhyalaya in Metals, 0.22 lakh in Automobiles, (KGBVs). 0.09 lakh in Handloom/Powerloom, The National Council for Teacher 0.07 lakh in Gems & Jewellery. Education (NCTE) has been notified In the export oriented units, the as the academic authority for teacher employment at the overall level qualifications. has increased by 1.96 lakh whereas A country wide campaign has been in the non-exporting units, it has launched for raising public awareness increased by 1.16 lakh during the about Right to Education (RTE) and period September, 2011 over June, to ensure all schools become RTE 2011. compliant.
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The Unfolding
Janani Suraksha Yojana (JSY), which targets lowering of Maternal Mortality A decision has been taken to index Ratio by ensuring that deliveries wage rates notified under MGNREGA are conducted by skilled birth A major development during the to the Consumer Price Index for attendants, has shown rapid growth year has been the launch of Aakash, agricultural labour. Accordingly, in last three years, with number of the low cost access-cum-computing the revised wage rates of MGNREGA beneficiaries rising to 106.96 lakh in device that was launched on 5 2005 were notified on 14th January, 2010-11 from 90.37 lakh in 2008-09. October, 2011. 2011. The issue of governance,transparency, Nearly 400 universities have been and grievance redressal mechanisms provided 1 Gbps connectivity or have Public health are now the thrust areas for the JSY. been configured under the scheme The combined revenue and capital and more than 14,000 colleges have expenditure of the Centre and Women Empowerment also been provided VPN connectivity. states on medical and public health, Creation of e-content for 996 courses water supply and sanitation and Women & Education in Phase II in engineering, sciences, family welfare has increased from The Sarva Shiksha Abhiyan (SSA) has had positive outcomes for girl child technology, humanities, and Rs.53,057.80 crore in 2006-07 to Rs. education leading to an increase management has been undertaken by 96,672.79 crore in 2010-11 (BE). in the gender parity index( GPI) IIT Madras. In addition to increasing resource in primary (0.94) as well as upper allocation for the Health Sector the mahatma gandhi National primary (0.92) education. Government is also playing a critical
generation and connectivity along with provision for access devices for institutions and learners are the major components of the Mission.
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The coverage under the MGNREGA has consistently increased from 4.51 crore households during 2008-09 to 5.49 crore households during 2010-11 with averaged employment of 47 persondays per household. Average wage has consistently increased from Rs 65 in 2006-07 to Rs. 100 in 2010-11. Women person days have been 48 percent during the last three years against the stipulation of 1/3 as per the Act. To strengthen transparency and accountability in the implementation of the MGNREGA, the Government has initiated a service delivery project for Information and Communication Technology (ICT) and biometrics related works of the MGNREGA on PPP basis. In pursuance of the announcement in Budget 2009-10 to provide a real wage of Rs 100 per day as an entitlement under the MGNREGA, the Government has set up a committee for developing an index
The number of girls in schools in the age group of 5-14 years has increased from 79.6 per cent in 2004-05 to 87.7 per cent in 2009-10. The Rasthriya Swasthaya Bima Yojana (RSBY) is being extended to cover Similarly, the number of girls in the MGNREGA beneficiaries and beedi educational system in 15-19 years workers. age group increased from 40.3 per cent to 54.6 per cent over the same Janani Shishu Suraksha Karyakram period. The challenge is to translate (JSSK) was launched on 1st June, the high enrolment into high 2011 to give free entitlements to attendance rates. pregnant women and sick newborns for cashless delivery, C-Section, drugs The National Literacy Mission or and consumables, diagnostics, diet Saakshar Bharat targeted female during stay in the health institutions, literacy as a critical instrument of provision of blood, exemption from womens empowerment. This has led user charges, transport from home to an increase in literacy amongst to health institutions, transport women from 53.67 per cent (Census between facilities in case of referral, 2001) to 65.46 per cent (Census and drop back from Institutions to 2011). home. A sum of Rs. 1437 crore has For the first time, out of the total of been allocated to the states during 217.70 million literates added during 2011-12 under the JSSK. the decade, women (110.07 million) A Mother and Child Tracking system out numbered men. has been introduced, which provides Women & health complete data of the mothers with their addresses, telephone numbers, As per the India Human Development Report, fertility rates have come etc. for effective monitoring of antedown and have reached replacement natal and post-natal check-up of
role in facilitating access to health care delivery channels, public and private through subsidized health, insurance schemes like the RSBY for providing basic health care to poor and marginal workers.
Enrolment of girls at primary level and upper primary level increased over the years.
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The Unfolding
levels in a number of states. Maternal Mortality Ratio (MMR) has come down to 212 per 1,00,000 live births in 2009 from 301 in 2003. Infant Mortality Rate (IMR), though still high, has fallen to 50 per 1000 in 2009.
all the womens welfare and socio-economic development programmes across ministries and departments, was launched on 8 March 2010 to ensure economic and social empowerment of women.
Coal, Natural Gas, Fertilizers, handling of Export Cargo at airports and number of cell phone connections show negative growth. Steel sector witnessed moderation in growth. Credit growth to the infrastructure sector turned negative in the current financial year. The incremental credit flow to the infrastructure sector during April- December 2011 was nearly 61% of the credit to this sector during April-December 2010. A significant reduction in credit flow was observed for the power and telecom sectors. The total FDI inflows into majors infrastructure sectors during AprilDecember 2011 however, registered a growth of 23.6% as compared to the FDI inflows during AprilDecember 2010. Power (43.6%), Non Conventional Energy (338 %) and Telecommunications (499%) were the preferred sectors for foreign investors.
The NMEW is piloting the convergence model across the country in 32 select districts with the aim of bridging the Women & Economy gap between demand and supply of women-related services by An important strategy for financial undertaking realistic estimates inclusion of women, which is of the demand, creating greater crucial for their integration into the awareness about women-bsed economy, has been micro-finance. schemes and programmes of the The model encourages access of SHGs Government, augmenting the to banks both as a means of savings demand for various services/ and as providers of loan services. schemes for women, and By March 2010, 69.53 lakh Self connecting them with the service Help Group (SHGs) including those providers. formed under the SGSY had been covered under the National Bank for The model includes introduction of convergence-cum-facilitation Agricultural and Rural Developments centres for women at district, (NABARD) SHG-bank linkage tehsil/block and village levels. programme. Of these 76 per cent are exclusively women SHGs, accounting The first such pilot convergence for 72.5 per cent of savings and 82 project was launched in Pali per cent of outstanding loans. district in Rajasthan on 16 Institutional deliveries have risen from 39 per cent in 2006 to 78 per cent in 2009.
Industrial Sector
The Economic Survey 2011-12 has projected the industrial-sector growth during the current financial September 2011 with the opening Promoting gender mainstreaming year to be between 4 to 5%. At this of 150 village-level centres. Through gender Budgeting (gB) rate, says the Survey the annual Recognizing hat omen, onstituting t w c growth rate will be less than the annual growth rates achieved in 48 per cent of Indias population, lag Infrastructure behind men on many social indicators The Planning Commission has the recent past and far below the like health, education, and economic potential growth rate. projected an investment requirement opportunities and warrant special of over Rs. 45 lakh crore (about US Challenges for the sector in the attention due to their vulnerability $ 1 trillion) during the Twelfth Plan short term would be to shore up of and lack of access to resources, (2012-12). business sentiments, spur investment GB, as a tool for achieving gender in productive activities and identify mainstreaming, has been adopted by It is projected that at least 50% of bottlenecks that can be removed in a this investment will come from the the government in 2005. reasonably short period of time. private sector as against the 36% The magnitude of GB allocations as a anticipated in the Eleventh Plan and According to the Survey, the long percentage of total budget has also public sector investment will need to term average annual growth of gone up from 2.79 per cent in 2005increase to over Rs.22.5 lakh crore as industries comprising mining, 06 to 6.22 per cent in 2011-12. against an expenditure of Rs. 13.1 manufacturing and electricity has in
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There was improvement in growth in power, petroleum refinery, cement, railway freight traffic, passenger handled at domestic terminals and upgradation of NHAI. The share of industry (including construction) and manufacturing
general remained aligned with the overall GDP growth rate during the post reform period between 199192 and 2011-12, averaging 6.7% as against GDP growth of 6.9%.
INDIA PREPARES
The Unfolding
The basic goods and non-durables The Planning Commission has projected growth rates of 9.8% goods had a relatively better growth and 11.5% in manufacturing sector at 6.1% compared to the growth in required to achieve 9 % and 9.5% the corresponding period of previous The share of industry in total economy growth respectively. year. employment, however, increase from 16.2% in 1999-2000 to 21.9% There was a moderation in growth in The National Manufacturing Policy (NMP) which has envisaged even other segments of IIP and negative in 2009-10 largely on account of higher growth of 14% per annum so growth was observed in capital goods expansion of employment opportunity as to take the share of manufacturing and intermediates segments. in the construction sector from 17.5 in GDP to 25% and increase the million in 1999-2000 to 44.2 million The share of Gross Capital Formation absorption of labour in this sector in 2009-10. (GCF) in industry as percent to the from 50 million as of today to more In terms of Index of Industrial overall GCF, after peaking to a level than 150 million by 2022. Production (IIP), industrial growth of 54.9% in 2007-08, moderated to in GDP remained generally stable at 28% and in the 14-16% range respectively during this period. during April-December 2011 reached 3.6% compared to a growth of 8.3% in the corresponding period of previous year. There was a contraction in production in the mining sector, particularly in the coal and natural gas segments. The electricity sector witnessed and improvement in its growth in the current year. Growth also moderated in the manufacturing sector from 9.0% in April-December 2010 to 3.9% in April-December 2011. To achieve this policy objectives, several policy measures will have to be pursued simultaneously such as resolving issues of land In the current year, the rate of availability and infrastructure for growth of banking sector credit flow the proposed national investment to industries moderated significantly. and manufacturing zones (NIMZs); On year-on-year basis, credit growth strengthening backward and forward to industry decelerated to 19.8% linkages of manufacturing sector in December 2011 from 31.6% in with agriculture and services sectors December 2010. respectively; acquiring depth in Moderation in rate of growth of manufacturing sector by focusing credit was particularly large for the on high value addition industries; infrastructure and manufacturing and prompting FDI to fill the savingsectors. investment gap etc. 48.3% in 2010-11 the manufacturing GCF growth rate declined to 7% in 2010- 11 from 42% in 2009-10.
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ThE uNFoLDING...
Measures proposed
Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee; Creating Missions as recommended by Pitroda Committee to implement the modernization programme Aligning the Annual Plan investment with five focus areas identified by Kakodkar and Pitroda Committees i.e. (a) Track (b) Bridges (c) Signalling & Telecommunication (d) Rolling Stock and (e) Stations & Freight Terminals. Rail-Road Grade Separation Corporation to be set up to eliminate level crossings. Three Safety Villages to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management
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Resource Mobilization
Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode; Logistics Corporation to be set up for development & management of
INDIA PREPARES
The Unfolding
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Wagon Manufacturing Factory at Kulti Introduction of a Green Train to run and fiat bogey frame unit at Budge through the pristine forests of North Budge to commence production in Bengal. Private investment schemes for Wagon 2012-13. 2500 coaches to be equipped with bio leasing, Sidings, Private Freight toilets. Terminals, Container train operations, A wagon factory to be set up at Sitapali (Ganjam District of Odisha). Rail connectivity projects (R3i and Passenger/Rail users Amenities R2C-i) being made more attractive to A rail coach factory with the support SMS on passenger mobile phone in PPP partners. of Government of Kerala to be set case of e-ticket to be accepted as up at Palakkad; two additional new Metropolitan Projects proof of valid reservation. manufacturing units for coaches to Works announced for Kolkata Metro Introduction of regional cuisine at be established in the Kutch area in last year progressing satisfactorily affordable rates; launching of BookGujarat and at Kolar in Karnataka and some projects being extended to ameal scheme to provide multiple with active participation of the State cover new sections. choices of meals through SMS or Governments. SPV with Andhra Pradesh Government email. A plant for manufacture of traction to be set up for commercial alternators for high horse power Setting up of new Rail Neer Plants at management of the MMTS. Palur in Tamil Nadu and Ambernath in diesel locomotives to be set up at Maharashtra. Work to be taken up facilitating Vidisha in Madhya Pradesh. running of 12-car rakes on Harbour Setting up of a factory at Shyamnagar Introduction of Rail Bandhu on-board line. magazines on Rajdhanis, Shatabdis in West Bengal to manufacture next Financial modeling of the elevated and Duronto trains. generation technology propulsion rail corridor from Churchgate to system for use in high power electric Introduction of Alternate Train Virar firmed up with Government of locomotives. Accommodation System to Maharashtra through PPP mode. accommodate waitlisted passengers Augmenting the electric loco A National High Speed Rail Authority on alternate trains. Ancillaries Unit of CLW at Dankuni for to be set up. fabrication of locomotive shells and Introduction of satellite based assembly of three phase locomotives real time train information system connectivity to neighboring for manufacturing of new generation (SIMRAN) to provide train running countries 9000 HP locomotives. information to passengers through Construction of Jogbani-Biratnagar SMS, internet, etc. Sick wagon unit Braithwaite taken and Jaynagar-Bijalpura-Bardibas new over by Railways has been conferred Dedicated Railway Design Centre to lines already in progress to provide with Turn Around Award by the Board be set up in the National Institute of connectivity to Nepal. of Reconstruction of Public Sector Design, Ahmadabad. Project to connect Agartala with Enterprise. coaching terminals Akhaura in Bangladesh to be taken up Green Initiatives in 2012-13. Pre-feasibility study for development Setting up of 72 MW capacity windmill of Roypuram station in Tamil Nadu Rail based Industries plants in Andhra Pradesh, Karnataka, for which many representations have Rail Wheel Plan at Chhapra produced Kerala, Tamil Nadu and West Bengal. been received. 78 wheels during 2011-12; the plant Setting up of 200 remote railway New coaching complex at Panvel would be fully commissioned in 2012stations as green energy stations and coach maintenance complex 13. powered entirely by solar energy. at Kalamboli in partnership with Rae Bareli coach factory manufactured Government of Maharashtra through Providing solar lighting system at 10 coaches in 2011-12; phase-II of CIDCO planned. 1000 manned level crossing gates. the factory would be commissioned in Introduction of mobile emission test New coaching terminal at Naihati, 2012-13. West Bengal the birth place of Rishi cars to measure pollution level of Diesel Component Factory at Dankuni Bankim Chandra Chattopadhyay diesel locomotives. has commenced trial production and commemorating him on 175th Birth would be fully commissioned in 2012- Commissioning of two bio diesel Anniversary. plants at Raipur and Tondiarpet. 13. existing railway goods sheds and multi-modal logistics parks.
INDIA PREPARES
The Unfolding
ThE UNFolDING...
BUDGETARY TERMS
Ad- Valorem Duties: Defined as those duties that are established as a certain percentage of the price of the product. Annual Financial Statement (AFS): The document as provided under Article 112, shows estimated receipts and expenditure of the Government of India for a financial year in relation to estimates for the previous financial year. Under the Constitution, Annual Financial Statement distinguishes expenditure on revenue account from other expenditure. Government Budget, therefore, comprises Revenue Budget and Capital Budget. Appropriation Bill: Under Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament. After the Demands for Grants are voted by the Lok Sabha, Parliaments approval to the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill. Banking cash transaction tax (BCTT): BCTT is a small tax on cash withdrawal from bank exceeding a particular amount in a single day. The basic idea is to curb the black economy and generate a record of big cash transactions. This tax was introduced in 2005-06 budget. It has been abolished from the year 2009-10. Budget Deficit: When the expenditure becomes more than revenues, then the budgetary exercise is considered a failure as there is shortage of funds. Such a situation is said to be a Budget Deficit. Capital Budget: It consists of capital receipts and capital payments. Capital Payments: It consists of capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by Central Government to State and Union Territory Governments, Government companies, Corporations and other parties. Capital Receipts: These are loans raised by Government from public, called market loans, borrowings by Government from Reserve Bank and other parties through sale of Treasury Bills, loans received from foreign Governments and bodies, disinvestment receipts and recoveries of loans from State and Union Territory Governments and other parties. Cess: This is an additional levy on the basic tax liability. Governments resort to cess for meeting specific expenditure. For instance, both corporate and individual income is at present subject to an education cess of 2%. In the last Budget, the government had imposed another 1% cess as secondary and higher education cess on income tax to finance secondary and higher education. Consolidated Fund of India (CFI): It flows from Article 266 of the Constitution. All revenues received by Government, loans raised by it, and also its receipts from recoveries of loans granted by it form the Consolidated Fund. All expenditure of Government is incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated Fund without authorisation from Parliament. Contingency Fund of India: Article 267 of the Constitution authorises the Contingency Fund of India which is placed at the disposal of the President of India to facilitate Government to meet urgent unforeseen expenditure pending authorization from Parliament. The corpus of the Contingency Fund as authorized by Parliament presently stands at Rs. 500 crore. Countervailing Duties: These duties are imposed on all imports in order to thwart any kind of unfair trading practices carried by the foreign countries. of Demands for Grants: Article 113 the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. In budget 2012-13 there are 106 Demands for Grants. Effective Revenue Deficit: It was announced in the Budget 2011-12 and has been included as a fiscal parameter in the Budget 2012-13. It is the difference between revenue deficit and grants for creation of capital assets. Finance Bill: At the time of presentation of the Annual Financial Statement before Parliament, a Finance Bill is also presented in fulfillment of the requirement of Article 110 (1)(a) of the Constitution, detailing the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution. It is accompanied by a Memorandum explaining the provisions included in it. Fiscal Policy Strategy Statement: It is presented to Parliament under the Fiscal Responsibility and Budget Management Act, 2003, outlines the strategic priorities of Government in the fiscal area for the ensuing financial year. The Statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures. Fiscal Deficit: It is the difference between the revenue receipts plus certain non-debt capital receipts and the total expenditure including loans (net of repayments). This indicates the total borrowing requirements of the government from all sources. FRBM ACT: It stands for Fiscal Responsibility and Budget Management Act. It was enactewd in 2003 and came into effect from 5th July 2006. It
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The Unfolding
envisages reduction of revenue deficit by 0.5% every year so as to eliminate it by the year 2008-09; (ii) reduction of fiscal deficit by 0.3% every year so as to reduce it to 3% by 2008-09; (iii) reduction in government guarantees by 0.5% every year and reduction in additional liabilities by 1% every year. Fringe Benefit Tax (FBT): It is the tax lievied on the fringe benefit / perks given by a company to its employees. Employers had to now pay a tax (FBT) on a percentage of the expense incurred on such perquisites. This tax was introduced in the 2005-06 budget. It has been abolished from the Budget 2009-10. Macro-economic Framework Statement: It is presented to Parliament the Fiscal Responsibility and Budget Management Act, 2003 and the rules made there under contains an assessment of the growth prospects of the economy with specific underlying assumptions. Medium-term Fiscal Policy Statement: It is presented to Parliament under the Fiscal Responsibility and Budget Management Act, 2003, sets out three-year rolling targets for four specific fiscal indicators in relation to GDP at market prices namely (i) Revenue Deficit, (ii) Fiscal Deficit, (iii)Tax to GDP ratio and (iv) Total outstanding Debt at the end of the year. Minimum Alternate Tax (MAT): Its known that a company pays tax on profits as per the Income-Tax Act. If a companys tax liability is less than 10% of its profits, it has to pay a minimum alternate tax of 10% of the book profits. MoDVAT: It stands for Modified Value Added Tax and is a way of giving some relief to the final manufacturers of goods on Excise Duties borne by their suppliers. It was recommended by Jha Committee. Monetised Deficit: It indicates the level of support extended by the Reserve Bank of India to the governments borrowing programme. Non-Plan Expenditure: This expenditure is a combination of expenses like capital expenditure, revenue expenditure on interest payments, postal deficit, pensions, economic services, defence expenditure and subsidies. Non-plan expenditure also includes expenditure on police, loans & grants to
public sector, governments whether State or foreign and Union territories. outcome Budget: With effect from Financial Year 2007-08, the Performance Budget and the Outcome Budget hitherto presented to Parliament separately by Ministries/Departments, are merged and presented as a single document titled Outcome Budget. It broadly indicates physical dimensions of the financial budget of a Ministry/Department, indicating actual physical performance in the preceding year (2010-2011), performance in the first nine months (up to December) of the current year (20112012) and the targeted performance during the ensuing year (2012-2013). Peak Rate: The term peak rate is common in Indian Budget and refers to the maximum rate of customs duty which is applied on any item. Plan Expenditure: Money provided for the execution of Central Plan. This monetary aid is given from the governments account and consists of expenditure both capital & revenue and Central assistance to Union territories & States. Public Account: Moneys held by Government in Trust as in the case of Provident Funds, Small Savings collections, income of Government set apart for expenditure on specific objects like road development, primary education, Reserve/Special Funds etc. are kept in the Public Account. Public Account funds do not belong to Government and have to be finally paid back to the persons and authorities who deposited them. Parliamentary authorisation for such payments is, therefore, not required. Revenue Budget: It consists of the revenue receipts of Government (tax revenues and other revenues) and the expenditure met from these revenues. Revenue Deficit: It refers to the excess of revenue expenditure over revenue receipts. It shows by what amount the current expenditure of the government exceeds the revenue. Revenue expenditure: It is for the normal running of Government departments and various services, interest payments on debt, subsidies, etc. Broadly, the expenditure which does not result in creation of assets for Government of India is treated as revenue expenditure.
All grants given to State Governments/ Union Territories and other parties are also treated as revenue expenditure even though some of the grants may be used for creation of assets. Result Framework Document: To monitor the performance management of various Ministries/Departments, Result Framework Document (RFD) system has been adopted by the Government in the year 2009-10.year 2010-11 and in 2011-12, 74 Ministries/Departments prepared the RFD. To ensure the success in achieving the agreed objectives and implementing agreed policies, programs and projects, the RFD also includes a commitment for required resources and necessary operational autonomy. Revised Estimates: Usually given in the following budget, it is the difference between the Budget Estimates and the actual figures. Securities and Transaction Tax (STT): It is a small tax you need to pay on the total amount you pay or receive in a share deal. In the 2004-05 Budget, the government did away with the tax on profits earned on the sale of shares held for over a year (known as long-term capital gains tax) and replaced it with STT. Surcharge: This is an extra bit of 10% on the tax liability that individuals pay for earning more than Rs. 10 lakh. Companies with a revenue of up to Rs. 1 crore are spared. Tax Revenues: It comprise proceeds of taxes and other duties levied by the Union. Other receipts of Government mainly consist of interest and dividend on investments made by Government, fees, and other receipts for services rendered by Government. Ways and Means Advances (WMA): It was introduced in March 1997 by the RBI which is the banker for both Central and State governments. Hence, it provides a breather to manage mismatches in their receipts and payments in the form of ways and means advances. There are two types of WMA normal and special. While Normal WMA are clean advances, Special WMA are secured advances provided against the pledge of government of Indiadated securities.
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National Bulletin
Vol.1 Issue 7
April 2012
NATIONAL NEwS...
LEGAL / CONSTITUTIONAL
Decriminalization Judgment Boosts Morale of Gay Community
Even as the Supreme Court has begun hearings on the legality of the de-criminalisation of consensual gay sex, a report by the Centre for Health, Law, Ethics and Technology (CHLET) at the Jindal Global Law School has found that the 2009 Delhi High Court judgment has significantly enhanced the social acceptance and self-esteem of Lesbians, Bisexuals, Transgenders and Queers (LGBTQ). The High Courts landmark decision of revoking the archaic Section 377 of the Indian Penal Code has led to a gradual but steady acceptance of sexual minorities by society, concludes the study. This shows that attitudes can be moulded and mindsets transformed by even subtle but progressive changes in the law. Ensuring greater self-confidence for the community, it has already brought them one step closer to living with dignity, states the report. The apex court, on 15th March, began the hearings on a bunch of petitions challenging the High Court judgment in the case between the Naz Foundation and the Union of India. Some respondents of the case said they could now argue with the police since they knew Section 377 was not there in the law books any more. Though most respondents felt more emotionally secure and positive, there are mixed responses as far as police harassment is concerned. While some felt harassment had substantially reduced among MSM (men who have sex with men) outreach workers, they pointed out that it had only to some extent reduced amongst Hijras and Kothis. that Dow did not have any connection with the gas tragedy while it had supported the Olympic Movement for over 30 years. Dow is a Worldwide Olympic Partner since 2010 and part of its funding goes to the National Olympic Committees (NOCs), including the IOA. The IOA has not accepted the IOCs stand, but wants the government to come out with a clear statement regarding Indias participation, or otherwise, in the Olympics. It would be willing to follow any government directive regarding this.
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National Bulletin
sanction for prosecution of corrupt public servants, including one month for the Attorney-General to give his opinion to the government in certain cases. In its petition, the Centre sought review of the January 31 judgment on the petition filed by the Janata Party president Subramanian Swamy, holding the Prime Ministers Office (PMO) responsible for sitting over his private complaint to Prime Minister Manmohan Singh seeking sanction to prosecute the former Telecom Minister, A. Raja, in the 2G scam. The Centre said it was not challenging the findings in the judgment on locus standi but was seeking review for the limited extent of correcting certain errors apparent in the verdict as remarks were also made against the officers of the PMO who were not party to the litigation. These included the observations made by this court regarding certain unnamed officers of the PMO without their being parties to the litigation. The Centre faulted Justice Ganguly [since retired] for his observations in his separate judgment saying it is legally untenable. In the absence of a time limit in Section 19 of the Prevention of Corruption Act (PCA), the provision would violate Article 14, the Centre said. The conclusions in this regard that the question of sanction can arise at a stage anterior to the stage of cognisance and even before the filing of the complaint are in the respectful submission of the petitioner legally untenable. The Centre said the interpretation of Section 19 of the PCA in the judgment needs correction.
GOVERNANCE
Railway Ministry Turns down Proposals to Fund Safety Steps
The Railways will need at least Rs. 1 lakh crore over the next five years to address all serious concerns relating to safety of passengers and safe running of trains, the funding of which appears unclear as of now. The High Level Safety Review Committee, headed by Anil Kakodkar, former chairman of the Atomic Energy Commission, has in its report made 106 recommendations to bring about drastic technical and technological improvements for the safe running of train services and proposed a mode to fund the proposed Rs. 1 lakh crore programme. However, Railway Minister Dinesh Trivedi refused to adopt the proposal and said the Railways would find a method to generate resources required to implement the schemes considered necessary to execute. The committee proposed levying safety cess on passengers to mobilise Rs. 5,000 crore annually for the next five years, a like grant from the Centre, deferment of dividend of like amount, levying road cess to earn Rs. 1000 crore and collect about Rs. 4000 crore from the land available with the Railways. That works out to Rs. 20,000 crore a year. But Mr. Trivedi said that if the Centre was unwilling to provide budgetary support, he would not give in and the Railways would beg, borrow and generate its own resources. He was also unwilling to commit himself on imposing a safety cess or hiking fares to mobilise resources, adding that there were several ways of achieving the goal like developing the railway stations and real estate.
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Cannot Issue writ of Quo warranto for Removing Minister: High Court
The pleasure of dismissing or removing a State Minister has to be that of the Governor and not that of the High Court. The High Court, therefore, cannot issue a writ of quo warranto for removing a Minister. The First Bench of the Madras High Court comprising the Chief Justice M. Y. Eqbal and Justice T. S. Sivagnanam made the observation while dismissing a petition seeking the issue of a writ directing Tamil Nadu Forest Minister K. T .Pachamal to show under what authority he functioned as a Minister in the face of well-documented allegations of breaking the law. The petitioner, K. R. Ramaswamy, alleged that the Minister had violated the City Municipal Corporation Act by erecting digital banners. The Supreme Court and other High Courts in a series of decisions had held that a writ of quo warranto could not be issued for removing Ministers, who were peoples representatives. The remedy was available in the Constitution and a writ court could not issue a writ of quo warranto. The Bench said the High Court had earlier held that State Ministers were appointed by the Governor albeit on the advice of the Chief Minister and they held their office during the pleasure of the Governor. A complete machinery has been provided in the Constitution for removal or disqualification of a Minister. The contention made in the writ petition was wholly misconceived,
INDIA PREPARES
National Bulletin
Vol.1 Issue 7
April 2012
Propelled Grenade/sniper rifle and Rs. 3,000 for a pistol or revolver. At the meeting, States and paramilitary forces were asked to take all possible steps to ensure protection of human rights of every individual while carrying out anti-Maoist operations and countering Naxals negative propaganda. The Home Ministry also asked the States to conduct a thorough probe into allegations of abuse of power by security forces and follow Standard Operating Procedure while dealing with Naxals. The meeting took stock of the anti-Naxal operations as well as the development programmes being initiated in the Maoisthit areas. There was concern in the Union government that many States were not able to complete many of the centrallysponsored schemes, especially the road projects, despite provision of required funds by the Home Ministry. The Home Ministry also indicated that it was keen on extending the Integrated Action Plan (IAP) being implemented in 78 worst Naxal-affected districts.
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SOCIAL ISSUES
Centre Evolving Uniform Surrender Policy for Naxal-hit States In a bid to motivate Maoists to join the mainstream, the government is likely to come up with a new uniform surrender policy for all Left Wing Extremism-affected States, offering Rs. 5 lakh to anyone laying down a Light Machine Gun (LMG) and Rs. 3 lakh to those depositing an AK-47 assault rifle. The issue was discussed at a meeting of Chief Secretaries and Directors- General of Police of the Naxal-affected States on 22nd February. At present, different State governments follow different surrender policies and surrender packages that include varying financial incentives. The policy, announced by the Home Ministry last year, offers an incentive of Rs. 15,000 for each deposited AK 47/56/74 rifle, Rs. 25,000 for each Rocket
INDIA PREPARES
National Bulletin
change from just a generation ago, where joint families were the norm. Seventy per cent of the households consist of only one couple. Indian families are overwhelmingly likely 86.6 per cent of them to live in their own houses, but 37.1 per cent live in a single room. Though there has been a nine percentage point jump in the numbers of households who own a two-wheeler, 45 per cent own a cycle, which remains the primary mode of transport. The data cast light on the changing character of the media. There has been a 16 per cent increase in the number of households watching television, but a 15 per cent decline in the use of radios and transistors. A total of 47.2 per cent of households own a television; only 19.9 per cent have either radio or transistors.
MW Demwe Lower Hydro Electric project was needed to counter Chinese plans to build mega hydel projects across the border in Tibet. The Lohit river originates in China. A committee appointed by the National Board for Wildlife (NBWL) to study the case visited the site and said the dam would harm the grassland ecosystem, and the Bengal bustard and wild water buffaloe both highly endangered species that live in it, as well as fragmenting the habitat of the Gangetic dolphin downstream, and submerging a nearby conservation area of medicinal plants. However, the State government officials insist that neither the grasslands nor conservation area would be submerged, adding that there are no reports of sighting the Gangetic dolphin near the proposed dam site. The Minister, who chairs the standing committee of the NBWL, accepted the arguments in favour of the project. The spirit of the clearance system basically demands evaluation of trade-offs for balancing the developmental needs with environmental sustainability, examination of scope of mitigation and capacity of the ecosystems to withstand the impact. The project, therefore, needs to be considered in the light of this overarching principle, said the Ministrys order on the NBWL approval.
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ENVIRONMENTAL ISSUES
Jayanthi Overrules wildlife Panel to Approve Arunachal Dam
Union Environment Minister Jayanthi Natarajan has overruled a key wildlife committee to approve the construction of a major hydel power project on the Lohit river in Arunachal Pradesh. The State government had reportedly argued that the 1,750
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which had failed to clean up the river. Now, the activists are complaining that the government is repeating its mistakes, breaking its own promises and continuing its neglect of the river. Government had promised that the 135 km stretch from Gomukh to Uttarkashi would be a protected ecological zone. But [the government] has given permission for 50 new dams along that stretch. The three NGRBA members are also quitting in solidarity with Swami Gyan Swarup Anand on a fast-untodeath to persuade the government to scrap all hydel projects under construction on the Ganga or its tributaries which disrupt the natural flow of their waters. After one month of no food, the activist sanyasi has also stopped drinking water from March 9 to increase the pressure on the government. In 2010, his 36-day fast resulted in three major hydel projects being abandoned.
POLICIES / PROGRAMMES
Farmer-Friendly Rural Job Scheme from April 1
Even while turning down demands for a moratorium on MGNREGS jobs during the agricultural season, the Centre on February 22nd approved new works that aim at boosting the farm sector. Rural Development Minister Jairam Ramesh released a report, authored by Planning Commission member Mihir Shah, suggesting revision of the guidelines to strengthen the job entitlement programme that has run into rough weather of late. The new avatar of the Mahatma Gandhi National Rural Employment Guarantee Scheme, coming into existence on April 1, will allow farmers who qualify for support under MGNREGS to hire hands for eight man-days per acre for transplantation and for another four man-days at two intervals for weeding. Through this provision the Centre seeks to solve the problem of small and marginal farmers who not only find it difficult to get hands but also pay higher wages demanded by workers. They are unable to match the wages paid under MGNREGS. Now the government will pay for those working on agricultural land owned by eligible farmers. Both Mr. Ramesh and the Planning Commission member said the Shah-led committee had received several petitions to freeze the scheme during the agricultural season but these were turned down and instead it was decided to accept the proposal to converge MGNREGS activities with farm work. Out of the 30 new works approved, almost 90 per cent were agriculture related. Mr. Ramesh stressed that 75 per cent of employment was provided under MGNREGS outside the agricultural season and hence the anxiety in some quarters was unfounded. In another development, to safeguard the interests of manual labour, receipt of application has been made mandatory and inability to provide job would automatically generate an unemployment allowance under the electronic system to be managed by the States. Refusal by authorities to accept
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National Bulletin
application for jobs has been made punishable. The States will have to approve the annual plan, for works to be taken up, at the gram sabhas to be held on August 15, in a bid to prevent distress migration. The States have been permitted to make an interim 75 per cent wage payment if delay is unavoidable. To eliminate misuse of funds, any panchayat or MGNREGS functionary found in possession of job cards will be hauled up.
REPORTS / SURVEYS
Panel Submits Report on Nuclear Project
An expert committee appointed by the Tamil Nadu government has submitted its report on the safety aspects of the Kudankulam Nuclear Power Project (KKNNP) to Chief Minister Jayalalithaa, marking a crucial stage in the debate over the project. M.R. Srinivasan, former Chairman, Atomic Energy Commission and member of the experts committee, indicated that the fourmember committee was fully satisfied with the KKNPPs safety aspect. On February 20, after visiting the nuclear plant and holding talks with PMANE representatives in Tirunelveli, Dr. Srinivasan had said the state-of-the-art safety features incorporated in the reactor had made it a third generation plus reactor. S. Iniyan, Director of Centre for Energy Studies, Anna University, D. Arivuoli, Professor, Department of Physics, Anna University and former IAS office L.N. Vijayaraghavan are the other members on the committee.
for doing away with level crossings, the panel has noted that apart from saving lives, the investment could be recouped in about 8 years as the monetary saving from a phase-out of level crossings would be in the region of Rs.7,000 crore per annum. Turning the spotlight toward the safety of train travel on bridges, the committee recommended monitoring of all the bridges in terms of scientific measurements of deflections/ displacements, water level and flow velocity on a continuous basis and data should be communicated to the office of the concerned Chief Bridge Engineer for monitoring. The panel, which noted that the Railways had classified at least 3,000 bridges to be 100 years old or more and 32 bridges as distressed structures, wanted vulnerable bridges fitted with water level gauges and turbine flow meters to measure flow which should be interlocked in a way to warn the driver of the approaching train. The panel has recommended an advanced signalling system based on continuous track circuiting and cab signalling similar to European train control system Level-II on the entire trunk route of about 19,000 route kilometres at an estimated cost of Rs.20,000 crore within five years. While discussing this need, the panel stressed the need for the customisation to Indian conditions of foreign technologies like Anti-Collision Device and the Train Protection and Warning System which is a virtual endorsement of the efforts of Southern Railway in its trials with ACDs and the operation of the TPWS on its suburban lines. On the manpower gaps in the safety category in the Railways, the panels recommendation for a time-bound filling up of vacancies in Critical Safety Categories and Manpower Planning Issues, addresses the demand by railway unions such as the Southern Railway Mazdoor Union and the All India Loco Running Staff Association.
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STATE NEwS
Voyeuristic Tribal Tourism Continues in Odisha
Foreign tourists continue to flock to a weekly shandy in Koraput district, about 100 km from the Araku Valley, at least some of them eager to gaze at semi-clad Bonda tribals. A `human safari controversy over semi-nude dances by members of one of the most primitive tribal groups in Odishas Malkangiri district had recently led to an undeclared ban being imposed on the entry of outsiders into the tribal hamlets. The Odisha government had acted after advertisements on the Internet by certain travel operators offering to display Bonda tribal people had come to the attention of the authorities. The offer involved entertainment for the tourists provided by tribals, scantily-clad and sporting heavily beaded and thick silver necklace bands. Following a local media furore in December 2011, Additional Secretary, Panchayati Raj, Usha Padhee, IAS, had been asked by Chief Minister Naveen Patnaik to conduct an enquiry. Her report is believed to have recommended steps to protect the dignity and self-respect of the Bonda tribes; it has not been made public.
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It was only recently that a public outcry was caused by video footage on a nude dance by Jarawa tribes in the Andamans archipelago. Malkangiri Collector Balwant Singh said the administration had taken several initiatives to protect the culture of Bondas and bring about improvement in their socio-economic conditions. Most of them live in sub-human conditions on hilltops. According to Census 2011, the Bonda tribe has a population of less than 12,000, and they are not a dwindling tribe.
Apart from substantial forest destruction [including Forest Department estimates of about 28,000 trees being cut] via wide roads cutting huge swathes through Reserve Forest, the wind mill project has triggered large scale erosion and landslides through poor construction of roads with steep gradients, and all this rubble is ending up on fertile farmland and in reservoirs of tributaries of the Krishna, panel report says
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International Bulletin
INTERNATIONAL NEwS...
U.N. Urged India to close Andaman Trunk Road
British rights activists has urged the United Nations to press India to close the Andaman Trunk Road that runs through the Jarawa tribal reserve in order to end human safaris in the Andaman Islands. In a letter to the U.N. Committee on the Elimination of Racial Discrimination (CERD), campaign group Survival International said that despite growing national and international pressure India had still not implemented the 2002 Supreme Court order on closing the road. Far from meddling in Indias affairs, Britain, Europe and the U.N.s concern shows the gravity of the situation. Recently, British MPs signed a parliamentary motion expressing concern over reports that tourists were taken in coaches to goggle at members of the Jarawa tribe, who were treated like attractions in a human safari park. This followed a video released by The Observer purporting to show that police and army officials were involved in human safaris despite official denials. the assassination of Afghan Joint Peace Council chairman Burhanuddin Rabbani. According to a statement put out by the Prime Ministers secretariat, Mr. Karzai termed Pakistans support as critical to the success of the Afghan-owned and Afghan-led peace process and reconciliation in the country.
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officials said, adding that U.S. and North Korean nutritional assistance teams would meet in the immediate future to finalise administrative details on a targeted U.S. program consisting of an initial 240,000 metric tons of nutritional assistance with the prospect of additional assistance based on continued need.
Chinas lawmakers have proposed the construction of a new highway linking south-western Yunnan with Tibet, which would for the first time provide year-round access to a remote region which borders Arunachal Pradesh. The new highway, which would include two 1,600-metre-tunnels, would also cut short the route between the two regional capitals of Kunming and Lhasa by more than 300 km. The highway would run through Nyingchi, a Tibetan county that borders Arunachal Pradesh, which China claims and refers to as south Tibet. The new route would also allow connectivity in the winter. The current highway, which is located at an altitude of 4,000 metres, was almost impassable in winter months because of hazardous conditions. The plans are part of a recent move to boost infrastructure in border regions, particularly in Tibet and Xinjiang which have seen recent unrest. While China says the projects are aimed at economic development, Indian defence officials have expressed concern about their strategic implications and the growing asymmetry in infrastructure across the disputed border.
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Over the past 18 months Kyrgyzstan received more than $100 million in aid from Russia. Experts said the economic situation in Kyrgyzstan is desperate as the budget deficit stood at $460 million last year and foreign debt servicing due this year tops $2 billion. Closure of the U.S. airbase, which brings Kyrgyzstan about $150 million a year in rent and other payments, will blow a deeper hole in the countrys budget. However, Kyrgyzstan, as a member of the Russia-led Collective Security Treaty Organisation, must comply with the defence pacts recent rule which says that a member-state needs the approval of all other partners to host a foreign base on its territory.
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lose power in the Arab Spring uprisings. But to the chagrin of many protesters, he will likely remain in Yemen. As part of a U.S.backed deal brokered by Yemens Gulf neighbors, Mr. Saleh is stepping down in exchange for blanket immunity from prosecution. But the outgoing President, who over the years has built a web of tribal and family relations, could still hold considerable sway after Mr. Hadi is installed.
Fearing that climate change could wipe out their entire Pacific archipelago, the leaders of Kiribati are considering an unusual backup plan moving the populace to Fiji. Kiribati President Anote Tong has told that his Cabinet recently endorsed a plan to buy nearly 6,000 acres on Fijis main island, Viti Levu. He
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said the fertile land, being sold by a church group for about $9.6 million, could provide an insurance policy for Kiribatis entire population of 103,000, though he hopes it will never be necessary for everyone to leave. Kiribati, which straddles the Equator near the International Date Line, has found itself at the leading edge of the debate on climate change because many of its atolls rise just a few feet above sea level. Mr. Tong said some villages have already moved and there have been increasing instances of sea water contaminating the fresh ground water. Some scientists have estimated the level of sea rise in the Pacific at about two millimetres per year. Many scientists expect that rate to accelerate due to climate change. Fiji, home to about 850,000 people, is about 2,200 km south of Kiribati. But just what people there think about potentially providing a home for thousands of their neighbours remains unclear. Mr. Tong said hes awaiting parliamentary approval for the land purchase, which he expects in April, before discussing the plan formally with Fijian officials. Mr.Tong has been considering other unusual options to combat climate change, including shoring up some Kiribati islands with sea walls and even building a floating island. He said this week that the latter option would likely prove too expensive, but that he hopes reinforcing some islands will ensure that Kiribati continues to exist in some form even in a worst-case scenario.
for future military operations. The agreements are in keeping with strategic defence cooperation known as the Lancaster House Accords which Mr. Cameron and French President Nicolas Sarkozy signed in November 2010. Britain and France also signed a raft of agreements in the nuclear and energy sectors with Britain giving its final thumbs up to Frances powerful EPR nuclear reactor which is to be built at Hinkley Point in Somerset. Rolls Royce also signed a 480-million deal with Frances Areva. The two companies announced they would work together on the manufacture of components for new nuclear reactors and other projects in the nuclear sector. Rolls Royce will supply services and components for Hinkley point with a commitment for three other EPR reactors at a specially constructed facility in Rotherham. The deal is expected to create 1200 jobs in Britain. Paris and London between them account for 60 per cent of the European Unions defence.
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INTERNATIONAL BULLETIN...
Korean/Iranian concerns
The communique did not mention North
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Korea or Iran -- two countries are at the forefront of current concerns when it comes to suspected development of nuclear weapons. However, with a North Korean launch of a ballistic missile likely just weeks away, President Obama and his counterparts discussed on the summit sidelines how to respond if Pyongyang goes ahead with what it contends will be a peaceful space launch. While North Korea was not on the agenda, the summits participants did effectively speak with one voice regarding Pyongyang, South Koreas Unification Minister Yu Woo-ik said. Yu, who coordinates Seouls policy towards North Korea, said the leaders attending the summit clearly articulated requests for Pyongyang to drop its plan for the mid-April launch. The summits host, South Korean President Lee Myung-bak, said it is
inappropriate for the North to pursue such projects while its own people have so little. The launch, he said, will only further isolate Pyongyang from the international community. North Koreas foreign ministry however has defended its planned launch, contending it should not be seen as a violation of sanctions forbidding it from the use of ballistic missile technology. Pyongyangs statement said it will never give up the satellite launch, and that what it called a peaceful activity is a legitimate right of a sovereign state and essential for North Koreas economic development. The impoverished and isolated country has twice before failed to place a satellite into orbit. Heralding the progress made in two years since the first such gathering of world leaders, which he hosted in Washington, Obama said the security of the world depended on success. It would not take much - just a handful or
so of these materials - to kill hundreds of thousands of innocent people. And thats not an exaggeration. Thats the reality that we face. The host South Korea also defended the summit, saying it did yield practical outcomes to reduce the threat of nuclear terrorism. Analysts, however, describe the actual results modest and note that nothing binding was adopted. Italy pledged to rid itself of all fissile material. The United States joined Belgium, France and the Netherlands in a deal to begin producing, four years from now, medical isotopes without the use of highly enriched uranium. Several countries agreed to switch to low enriched uranium, which cannot be weaponized, to fuel research reactors. But beyond that, there are few outcomes contributing to the summits goal of securing vulnerable nuclear materials around the world.
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The Delhi Declaration expressed concern over the current global economic situation, especially in the euro zone. It said the BRICS nations were ready to work with the international community to ensure that the world economy was taken forward, and Europe was given the necessary assistance so it could help itself. The meeting also agreed to expand the capital base of the World Bank and other multilateral institutions to ensure global economic stability. of But, Mr Singh said that institutions global political and economic
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FAct-FILE
BRICS is an international political organisation of leading emerging economies, arising out of the inclusion of South Africa into the BRIC group in 2010. As of 2012, its five members are Brazil, Russia, India, China and South Africa. With the possible exception of Russia, the BRICS members are all developing or newly industrialised countries, but they are distinguished by their large economies and significant influence on regional and global affairs. As of 2012, the five BRICS countries represent almost half of the worlds population, with a combined nominal GDP of US$13.6 trillion, and an estimated US$4 trillion in combined foreign reserves. The grouping has held annual summits since 2009, with member countries taking turns to host. Prior to South Africas admission, two BRIC summits were held, in 2009 and 2010. The first five-member BRICS summit was held in 2011.
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governance created more than six decades ago have not kept pace with the changing world and that developing countries needed access to capital. The five nations, in their closing statement, voiced concern about slow reforms and called on the International Monetary Fund to make its surveillance framework more integrated and even-handed.
Unjust policies
A joint declaration issued at the close of the summit found common ground in strongly criticising western economic policy. It is critical for advanced economies to adopt responsible macroeconomic and financial policies, avoid creating excessive global liquidity and undertake structural reforms to lift growth that create jobs, it said. There was agreement, too, to press ahead with plans to create a south-south development fund that might one day rival the World Bank and the Asian Development Bank.
She blamed the developed world for hindering other nations with unjust monetary policies. Analysts say the joint development bank is expected to be established along the lines of the World Bank and Asian Development Bank, offering funding outside the current global financial system. The BRICS nations have radically different economies and political systems and have often struggled to find common ground in the past. But, they have been looking at ways to increase their trade links and decrease dependency on Europe and the United States. The BRICS renewed their demand for expanded voting rights for developing countries in the IMF and challenged western policy on Iran, stressing that military action to curb Tehrans suspect nuclear activities was unacceptable and suggesting the group was not bound by a looming ban on Irans oil exports. Both the Iran and Syria crises must be resolved diplomatically, it said. The leaders also stressed the vital importance that stability, peace and security of the Middle East and North Africa holds for the international community. We call for an immediate end to all violence and violations of human rights in Syria, the declaration said adding that the situation concerning Iran cannot be allowed to escalate into conflict, the disastrous consequences of which will be in no ones interest.We must avoid political disruptions that create volatilities in global energy markets and affect trade flow... We must ensure policy coordination to revive economic growth, the Indian leader, Manmohan
Singh said. BRICS countries would increase co-operation on terrorism and piracy, he added. On UN Security Council reform, he appealed for the group to speak with one voice.
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The countries resolved to promote greater interaction among the business communities of BRICS nations and easier visa facilities for businessmen. Mr Singh said the BRICS group must speak with one voice on important issues such as reform of the UN Security Council. President Hu said BRICS nations should enhance cooperation and intensify communication in international trade. Brazils Dilma Rousseff said the BRICS had become the most important engines of the world economy in the past few years. Together, we will be responsible for more than half of the foreseen growth for 2012, 56% according to the IMF.
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Bilateral/Multilateral Bulletin
Bilateral/Multilateral News...
INDIA AND MAJOR POWERS
Aksai Chin is a Closed Chapter: Chinese Paper
A month after India and China held the fifteenth round of border talks; a commentary in a Chinese newspaper Jiefang Daily, or Liberation Daily has questioned Indias claims on Kashmir and asserted that the only dispute was over the status of Arunachal Pradesh. The commentary said: The Indian side believes that the border dispute between China and India covers not only the eastern region of 90,000 sq km but also the western region of 30,000 sq km and the western region is Indias too. This wrong argument, which totally disregards the history, still has supporters in India. The article, written by an India scholar in the Shanghai Institute of International Studies, Wu Yongnian, was the first Chinese reaction to last months border talks, and it underscored a hardening in Chinas position over the western section over recent years, officials said. Sovereignty over two separated pieces of territory have been contested between China and India. Aksai Chin is located either in the Indian province of Jammu and Kashmir, or the Chinese province of Xinjiang, in the west. It is a virtually uninhabited high-altitude wasteland crossed by the Xinjiang-Tibet Highway. The other disputed territory lies south of other McMahon Line. It was formerly referred to as the North East Frontier Agency, and is now called Arunachal Pradesh. The McMahon Line was part of the 1914 Simla Convention between British India and Tibet, an agreement rejected by China. The 1962 Sino-Indian War was fought in this territory. An agreement to resolve the dispute was concluded in 1996, including confidence-building measures and a mutually agreed Line of Actual Control. In 2006, the Chinese ambassador to India stated that all of Arunachal Pradesh is Chinese territory. This was followed up with a military build up, and numerous incursions into Sikkim, some penetrating by more than a kilometer. In 2009, India announced it would deploy additional military forces along the border. The Johnson Line: W. H. Johnson, a civil servant with the Survey of India proposed the Johnson Line in 1865, which put Aksai Chin in Kashmir. This was the time of the Dungan revolt, when China did not control Xinjiang, so this line was never presented to the Chinese. The Macartney-Macdonald Line: In the 1890s Britain and China were allies and Britain was principally concerned that Aksai Chin not fall into Russian hands. In 1899, when China showed an interest in Aksai Chin, Britain proposed a revised boundary, initially suggested by George Macartney, which put most of Aksai Chin in Chinese territory. The British presented this line to the Chinese in a Note by Sir Claude MacDonald. The Chinese did not respond to the Note, and the British took that as Chinese acquiescence. This line, known as the MacartneyMacDonald line, is approximately the same as the current Line of Actual Control.
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As India Speaks out, Russia says its Suspicion has been Confirmed
Prime Minister Manmohan Singhs charge that civil society groups were misusing funds from America and other western countries to stoke protests at the Kudankulam nuclear plant saw Russia, the joint venture partner, claiming it had suspected this all along, and the U.S. stating it would check whether the allegation was true. Dr. Singhs observations, which appeared on 23rd February, were amplified by Minister in-charge of the Prime Ministers Office V. Narayanasamy, who said the licences of three NGOs were cancelled following reports that they had diverted funds to fuel protests against the nuclear project. It is suspected that the Kudankulam plant was being targeted
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by the West because similar projects by American companies in Andhra Pradesh and Gujarat have not taken off while two units of the Russian technology-based plant are on the verge of being operationalised. Two of the six units at Kudankulam are nearly ready and four more are in the works. Each will be Indias largest civil nuclear power plants until they are overtaken by larger French and American units. The site of the French units is under siege by civil society protesters, while plans of the U.S.-based companies have been stymied by an Indian law that holds equipment suppliers as well as operators liable for compensation in case of an accident. However, the Russian plant is in a category very different from the French and U.S. projects. It was conceived at a time when a West-dominated cartel was bitterly opposed to transferring nuclear technology to India until it rolled back its nuclear weapons programme. But the Russian project meandered along for over a decade until the U.S. quarterbacked Indias entry into the nuclear commerce mainstream with active assistance from other civil nuclear heavyweights such as France and Russia.
new President. Till then, the national unity government will run the country. The Maldivian Democratic Party (MDP), to which the former President, Mohamed Nasheed, belongs, will be part of the government. These are the broad contours of the India-brokered deal that has been accepted by all parties to the dispute. While there is still no clear agreement on the timing of the election, the earliest possible window would be this year-end. This formulation was agreeable to both the new President, Waheed Hassan Manik, who could go down as the shortest-serving President, and Mr. Nasheed. But some of the smaller parties, leaders of which wield a disproportionate amount of influence, did not agree to early elections. Indias Foreign Secretary Ranjan Mathai said the national unity government would hold discussions with all relevant parties to conduct elections by an early date. This will entail a Constitutional Amendment. Hence, the government will work towards the conditions that will permit such elections to take place, including any necessary constitutional amendments, he added. The Maldivian crisis of governance began on February 7 after President Mohamed Nasheed resigned. His Vice-President Waheed Hassan Manik was sworn in as President. On February 8, Mr. Nasheed said he was forced to resign, and wanted early elections.
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keeping a close eye on three factors the military posture to be adopted by NATO after 2014, contours of a strategic pact that Afghanistan and the U.S. plan to sign and the political process involving the still-recalcitrant Taliban groups.
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Iran is also critical to stabilizing Afghanistan as part of the Shanghai Cooperation Organisation (SCO) grouping after the NATO forces scale down their operations in 2014. Nearly all the countries surrounding Afghanistan are either members or observers to the SCO. India is also closely following the development of another route into Central Asia via Iran and Afghanistan into Uzbekistan. Currently a portion of the route (part of the Northern Distribution Network) from Termez in Uzbekistan to Mazar-e-Sharif is used by the NATO to transfer non-lethal supplies for its forces to Afghanistan.
President Hosni Mubarak and Egypt emerging as a democracy though, possibly with Islamist characteristics since the Muslim Brotherhood did so well in the recent parliamentary elections a fresh opportunity has arisen to revive the ties and take them along on an exciting and uncharted path.
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obtain the extension of the visas of two Indian children in its care. The child custody row concerns the children of Anurup and Sagrika Bhattacharya, Aishwarya (1) and Abhigyan (3), who were taken into care and placed with foster parents. Norways Child Welfare Society (CWS) in Stavanger which has announced that the custody of the two Indian toddlers would be given to their uncle took the position that the laws direct it to protect children who are suffering abuse, ill-treatment or neglect while on Norwegian soil, irrespective of the nationality of the parents or children. The Indian government has argued that since the parents has returned to India after the expiry of their visa on March 8 it is inconceivable that the children should be brought up outside their own cultural and linguistic environment. It pointed out that retaining the children in Norway after the departure of the parents would amount to de facto kidnapping by the authorities. Sagarika Bhattacharya, at the time of the CPS intervention in May 2011, cared for the two children, the boy then aged three and the four-month-old daughter, while Anurup was employed in the oil industry in Stavanger. Abhigyan and Aishwarya were placed in foster care by the Child Protection Agency (Barnevarnet or CWS) in the city of Stavanger, where the childrens father Anurup Bhattacharya, works at Halliburton. The stated reason for placing the children in care until they attain majority was Abhigyans diagnosed attachment disorder and his mothers alleged inability to respond to his needs compounded by marital discord and cultural misunderstandings between the CWS and the parents. The Norwegian welfare state is reputed to be working exceptionally well for the average Norwegian, including, admirably, families with strongly disabled children. Maternity and paternity leaves are generous and womens position in Norwegian society is hard to match.
last year to protect ships against the growing threat from pirates in the Indian Ocean. Italy argued that the UN Convention on the Law of the Sea (UNCLOS) permits prosecution only by the state whose flag the ship is flying or the state of which the citizen is a national (in both cases Italy). The third is that their ships have the right to take on pirates. According to us, Article 97 of UNCLOS to which they are referring deals only with collision of vessels and other such incidents. Italy also feels it has the right to take action against pirates. In this too they are in the wrong. This right is given only to naval vessels and not merchant ships, said highly placed sources, basing their explanation on the advice given by the MEAs legal cell. But India points to Section 4 of the Indian Penal Code, which says any crime, committed against an Indian or on an Indian vessel, wherever it may be, can be tried in India.
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Economy@IP
Economy News...
China to be top gold consumer in 2012
China could well displace India as the country with the greatest appetite for gold in 2012. Its jewellery and investment demand reached 769.8 tonnes in 2011, representing 82 per cent of Indias level of demand for gold which was at 933.4 tonnes, according to World Gold Council (WGC). The WGC report said that the Chinese figure has only recently risen above the 50 per cent mark, reflecting the strength of Chinas presence in the gold market. Further, both countries face separate headwinds in 2012, but China with its large reserve base, adjustable exchange rate and political decisiveness may be better positioned to tackle a slowdown posed by falling exports and the policy-tightening pursued during most of 2011. Indias importance in the gold market will not diminish, even if demand growth softens. Not only is India a key player in the global gold market, but the domestic drivers of gold demand are largely independent of outside forces, firmly supporting golds diversified demand base. These factors will promote continued growth in demand over the long-term even as the short-term outlook for both countries is for a modest slowdown, the report said. The World Gold Council is a non-profit association of the worlds leading gold mining companies, established in 1987 to promote the use of gold. It aims to stimulate demand for gold from industry, consumers, and investors. The Councils Chief Executive Officer is Aram Shishmanian, former head of global financial markets practice at Accenture. Its Chairman is Ian Telfer. Based in the UK, with operations in India, the Far East, Europe and the USA, the World Gold Council is an association whose 22 members represents approximately 60% of global corporate gold production. Some members felt that the fiscal pressure would continue beyond 2011-12 as the monetary impact of entitlements such as the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), oil, fertilizer and food subsidies would be significant. Some members also felt that unless there was a clear signal of credible fiscal consolidation, the RBI should hold back the policy rate reversal. Most members felt that inflation would continue at the current levels in the near future because of the structural issues such as fiscal slippage, suppressed elements of inflation, increase in input prices due to the weakening rupee, high inflation expectations and the wage-price spiral. Some members felt that level of inflation expectations was high and the RBI should continue to keep monetary policy tight (at the present level). It was necessary to bring down inflation significantly from the present level even if it meant lower growth for the next few years. It would ensure that high growth was achieved in subsequent years. Discussing the domestic macroeconomic situation, members felt that the economy was clearly slowing down. FATF nod for revised proposals for combating money laundering The plenary meeting of the Financial Action Task Force (FATF) being held in Paris has approved the revised recommendations for combating money laundering and financing of terrorism. According to an official statement here, the plenary also discussed the fourth follow-up report on Indias progress on the action plan that it had committed to in June 2010 and appreciated the progress it made with regard to the international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards. An Indian delegation led by Bimal Julka, Additional Secretary & Director General (Currency) in the Department of Economic Affairs (DEA) is attending the FATF plenary meeting. The FATF is an inter-governmental body that sets international standards for combating money laundering and the financing of terrorism. India became a member of the body in June 2010. The report of the FATF Secretariat commended India for its continued progress to remedy the deficiencies identified with particular reference to the core and key recommendations of the task force. It noted that consistent with its action plan, India has introduced amendments to a range of primary legislation.
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propose to start joint ventures to explore and exploit copper and other mineral deposits in the State. The initiative is part of Hindustan Copper Limiteds plan to consolidate its mining business, especially in Rajasthan. The company is planning to execute as many as eight mining projects across the country at an estimated capital expenditure of Rs.3,435 crore to quadruple its mining capacity over the next five years, said Hindustan Copper Limited Chairman & Managing Director Shakeel Ahmed during a visit to the Khetri Copper Complex in Jhunjhunu district in Rajasthan over the weekend. It is the only copper mining company in India. The Khetri copper belt, situated on the foothills of the Aravallis along the 80-km metallogenetic province from Singhana in the north to Raghunathgarh in the south, has prominent copper deposits at Khetri, Kolihan, Banwas, Chandmari, Dhani Basri and in Baniwali Ki Dhani (at Neem Ka Thana in Sikar district). Devlalai in Bhilwara district, Akwali and Muradpura-Pacheri in Jhunjhunu also have sizeable copper ore presence.
weaker sections and low income groups, housing loans granted to these individuals may be included in the weaker sections category. All loans to women under the priority sector may also be counted under loans to weaker sections. The limit under the priority sector for loans for studies in India may be increased to Rs.15 lakh and Rs.25 lakh in case of studies abroad, from the existing limit of Rs.10 lakh and Rs.20 lakh, respectively. The committee recommended allowing non-tradable priority sector lending certificates on a pilot basis with domestic scheduled commercial banks, foreign banks and regional rural banks as market players.
RBI panel increases priority sector lending target for foreign banks
The Reserve Bank of India (RBI) panel on priority sector lending has proposed that the target (priority sector) for foreign banks may be increased to 40 per cent of net bank credit from the current level of 32 per cent with sub-targets of 15 per cent for exports and 15 per cent for the MSE sector, within which 7 per cent may be earmarked for micro enterprises. The target of domestic scheduled commercial banks for lending to the priority sector may be retained at 40 per cent of net bank credit. The committee, under the chairmanship of M. V. Nair, Chairman, Union Bank of India, has re-examined the existing classification and suggested revised guidelines with regard to priority sector lending and related issues. The committee suggested that the sector agriculture and allied activities may be a composite sector within the priority sector, by doing away with the distinction between direct and indirect agriculture. However, the targets for agriculture and allied activities would be at 18 per cent. . A sub-target for small and marginal farmers within agriculture and allied activities is recommended, equivalent to 9 per cent, which would be achieved in stages by 2015-16. The MSE sector may continue to be under the priority sector. Within the MSE sector, a sub-target for micro enterprises is recommended, equivalent to 7 per cent, which would also be achieved in stages by 2013-14. The loans to housing and education may continue to be under the priority sector. Loans for construction or purchase of one dwelling unit per individual up to Rs.25 lakh; loans up to Rs.2 lakh in rural and semi urban areas and up to Rs.5 lakh in other centres for repair of damaged dwelling units may be granted under the priority sector. To encourage construction of dwelling units for economically
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tax should be increased to the pre-crisis level, a move that would bring in additional Rs.35,000 crore revenue. Before the economic crisis, service tax and excise duty rates were at 12 per cent, but as a stimulus the government had brought them down to 10 per cent in 2008-09.
in crisis, Dr. Kumar noted, adding that it was sanctioned $7 billion in lending during crisis, of which $5 billion was tied to crisis-specific operations. Despite these large-scale commitments, some of them remained unrealised, including $3 billion for the financial sector were cancelled. The IEG also noted that while much of the budget-support lending that the Bank undertook in India had helped signal the strength of public sector banks in the country, yet many of these public sector banks had capital adequacy ratios conforming to Indian government norms at the outset of crisis. This again raised the question of Bank lending priorities during the crisis.
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cases related to it. The petitioner (Ministry of Railways) is also carrying out an activity of running the railways, which has a commercial angle and is capable of being carried out by entities other than the State, as is the case in various other developed countries. It is not an inalienable function of the State and the submission of the petitioner that it is not covered by the definition of enterprise has no merit and is rejected, the court said. The CCI had previously rejected the Railways plea, allowing a private firms allegation that the public carrier had abused its dominant position through its various acts/conduct; by increasing charges for various services; by not providing access to infrastructure such as rail terminals, etc.
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in subsidy on nitrogen (N) and potassium (K), which will be Rs.24 a kg each and Rs.21.8 a kg on phosphate (P) for 201213. The new rates will be effective from April 1. The reduction in P&K fertilizers are expected to bring down the governments total subsidy bill by 20 per cent in the next fiscal. Since India imports almost its entire supply of non-urea fertilizers, this reduction could help bring down the fertilizer subsidy bill substantially. Fertilizers Association of India Director-General Satish Chandra said the reduction of subsidy for fertilizers would not lead to any increase in prices as the fertilizer prices in the international markets had been falling.
fertilizer companies were asked to consider providing longterm cargo commitment for transportation. The Department of Industrial Policy and Promotion (DIPP) was asked to take necessary steps to include IWT under transport subsidy scheme. Mr. Chatterjee said the Planning Commission would be requested to constitute a committee under the chairmanship of member concerned to ascertain the requirements of budgetary support to develop National Waterways.
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Science Spectrum
Science News...
IAF inducted Russian Mi-17 V5 armed choppers
Indian Air Force formally inducted its latest Mi-17 V5 armed helicopters from Russia that will greatly enhance its capabilities to carry troops and cargo at higher altitudes as well as help in combat operations. With Russia delivering 21 of the 80 Mi-17s ordered under the $1.34-billion deal in 2008 till now, the induction ceremony took place at the Palam airbase in the presence of defence minister A K Antony. India is likely to go in for 59 more Mi17s, after the first 80 have been inducted by around 2014, in what will cost the country another $1 billion. The MI-17 V5 falls in armed helicopter category, with substantial and effective firepower. It has the latest and more powerful engines that will enhance its payload carrying capability at higher altitudes. The Mi-17 V5 is an upgrade of Mi-17 choppers in the mediumlift category and is equipped with state-of-the-art avionics and on board navigation nystems, IAF officials said. On the machines capabilities, they said, It has on- board weather radar, state-of-the-art autopilot and is compatible with the latest generation night vision goggles. The Mi-17 variants have operated in various types of terrain, including Siachen Glacier, and have also proven their mettle in UN missions. IAF is going to deploy the first squadrons of the new Mi-17s, which will also make it possible for the force to spare some more helicopters for logistical support in the ongoing antinaxal operations, at Bhatinda and Srinagar. developing such seekers to eventually equip mother missiles with smaller missiles packed with PGMs. Another frontier technology area in which scientists have begun work is to design and develop Low Probability of Intercept Radar Seeker to equip anti-ship and anti-aircraft missiles.
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Science Spectrum
Of the other two new facilities, one would supply fuel to 10 700 MW PHWR reactors being planned in Haryana, Karnataka and Madhya Pradesh, while the other would be used to meet the fuel requirements of the light water reactors planned to be built with foreign collaboration.
from the year 2018. It has projected a requirement of about 10,000 bundles of SEU in the beginning, which could grow up to 55,000 bundles by 2030.
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Science Spectrum
Why is a U.S. prison using execution drugs obtained through allegedly fraudulent means, from India? Lethal injection procedures in this country have, for the last few years, been rocked by the voluntary shutdown of a firm called Hospira, oddly the sole producer of sodium thiopental in the U.S. at the time. Since that event in 2010, a slew of correctional facilities have continued to seek out alternative suppliers of the drug or switch to pentobarbital, a veterinary euthanasia barbiturate used to put down dogs. After attempts to source sodium thiopental from a firm in the United Kingdom met with a storm of opposition across Europe and led to the ban of all such drug exports to the U.S. in that continent, one Mumbaibased firm called Kayem Pharmaceuticals was contacted by an intermediary acting on behalf of the NDCS. When a U.K.-based anti-death penalty group called Reprieve highlighted the fact that despite not being approved by U.S. regulators, Kayem had handed over 500 one-gram vials of thiopental enough to kill 166 men to the middleman named Chris Harris, and then it had passed on to the NDCS, the intense pressure on Kayem led to it stating publicly that it would immediately halt all exports of thiopental to the U.S. Yet the fate of Naaris drugs remains uncertain, this despite Naari CEO Prithi Kochhar dashing off an anxious letter to Nebraska Supreme Court Chief Justice Michael Heavican, in which he said he was shocked and appalled by the prospect that Naaris drugs could thus be used in execution procedures. Mr. Kochhar went on to explain to the Chief Justice that the agreement with Mr. Harris was that he would use these vials for registration in Zambia. Our intention was to get the product registered in Zambia and then begin selling it there, since sodium thiopental is used very widely as an anaesthetic in the developing world. Mr. Kochhars hope is that the drugs that he alleges Mr. Harris misappropriated and diverted from their intended purpose would be returned immediately to its rightful owners, that is, that it be returned to us at Naari. If his wish is granted, the court would have to deny the right of the thiopental-starved NDCS to inject Ryan with an untested, uncertified chemical.
Pointing out that India had declared 2012 as the year of intensification of routine immunisation, Mr. Azad said strengthening routine immunisation was imperative if we wished to sustain our gains in polio and guard ourselves against both distant and international importations. We intend to accelerate routine immunisation activities from April 1 through special immunisation drives, with special focus on 207 districts recording low routine immunisation coverage, he said. In 14 States where coverage was less than 80 per cent, introduction of the second dose of measles vaccine had started. Our target is to cover more than 130 million children under this campaign. The Minister said 26 million mothers and children were already registered under the web-enabled mother and child tracking system set up by the Ministry of Health and Family Welfare. The system generates weekly work plans for the Auxiliary Nurse Midwives through SMS. Alerts are also sent to the beneficiaries to remind them of the date of the due health services. Utilising the vast gains in infrastructure and human resources made through the National Rural Health Mission, we intend to improve the immunisation coverage, which has been stagnating at 61 per cent for a long time, he said adding that it was important that we use the micro plans prepared for polio rounds for tracking these children and making sure they are fully protected against not just polio but other vaccine preventable diseases as well. Mr. Azad called upon the Rotary International, WHO, UNICEF, CDC, Gates Foundation, and other partners to provide impetus to routine immunisation and synergise polio eradication and routine immunisation strategies.
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Health ranks as one of the key segments of interest for smart mobile device users. In the U.S. as well as key European segments, access to the web through Apps gained parity with access through mobile web browsers, the report notes. Health Apps is the fastest-growing mobile Apps category, followed by retail and other e-commerce applications. Conversely, other classical web applications like the web mail and weather services are seeing a lack of interest. The report lays stress on news consumption in markets where newspaper circulation is being challenged by online consumption. (In India, the scenario is different as of now.) It points to a change in the consumer pattern on the devices the readers used to access news through the course of the day. The use of smartphones and tablets peaked through the course of the day, whereas access to news through the traditional desktop computer seems to be on the wane. This could be one of the opportunities for publishers to look at this year. Defining a new category of consumers digital omnivores who engage online through multiple touch points through the day the report has predicted that 2012 could well be the year of a pitched battle among mobile operating systems (OS). Consumers in the U.S. and Europe reckon that network connectivity and strengths of the mobile operating system are key considerations before buying a smartphone.
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The main contenders are Googles Android and Apples iOS, but the report notes that Research In Motions BlackBerry OS, which is making a comeback of sorts, and Microsofts Windows Mobile, which is trying to reach out with the Metro interface that integrates the desktop and the mobile experience, could set things up this year.
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Science Spectrum
The Information and Broadcasting ministry has earlier placed its claim in this spectrum band saying that Doordarshan has 40 MHz frequency assignment for mobile video link and 8 MHz for digital transmission in four metros. The I&B ministry has kindly agreed to vacate that band and that issue has been resolved, Mr. Sibal said. In other major issue, on the vacation of 1700 MHz to 2,000 MHz spectrum band between Defence and Telecom Ministry, Mr. Sibal said that most of the matters related to it had been resolved and expressed the hope that it would be completely resolved in the next meeting of EGoM scheduled for the coming week. Then there were some issues relating to 1,700 MHz to 2,000 MHz band. We have had a full discussion and hopefully it will be resolved next week, he said. In this case, Defence Ministry had shown interest to give DoT only 150 MHz and retain the balance 150 MHz while DoT has been pushing the Ministry to give it 230 MHz and retain 70 MHz in the civilian areas to operate sophisticated equipment but allot all 300 MHz in the urban areas. This spectrum can be used for 3G services, 4G services and it is a progressive band for CDMA technology as well. Under the MoU signed between the two ministries, the Defence Ministry had agreed to vacate 25 MHz of 3G spectrum and 20 MHz of 2G in phases. In return, the DoT had committed to set up an exclusive defence band and defence interest zone for the armed forces. The project, however, is stuck because of financial constraints. According to sources, the Planning Commission has approved Rs.800 crore for the project as against the demand of Rs.6,767.94 crore by DoT which included Rs.5,000 crore earmarked for OFC-based network for Defence services.
Even if there are multiple targets, it can pick out a target and attack it. It is a loitering missile; it can go round and round a target, perform several manoeuvres and take it apart. It has precision, endurance and accuracy. It is an important missile, DRDO officials said. With a range of more than 750 km, Nirbhay can remain in the air for a long time. Capable of flying at the height of a tree (so, it is known as tree-top missile), it can soar to a minimum of 10 km and a maximum of 50 km. The DRDO will also soon test-fire Helina, the helicopter-fired version of Nag, the third-generation anti-tank missile. Helina is a portmanteau term, standing for helicopter and Nag (the cobra). Nag has fire and forget and top attack capability. Carrying an eight-kg warhead, it has an infra-red seeker and can destroy enemy tanks four km away. Based on the information available from the target, Helina will lock on to it midway through its flight and zero in on to it. A modified version of Arjun-Mark I main battle tank will prove its mettle by firing a LAHAT missile from an Army range this month. The LAHAT (Laser Homing Attack or Laser Homing Anti-Tank missile) is a third-generation semi-active lowweight anti-tank missile. This version was fired from the Arjun tank in 2004. The Combat Vehicles Research and Development Establishment, a DRDO facility at Avadi, designed and developed the Arjun.
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Solar storm
The sudden release of magnetic energy stored in the Suns atmosphere can cause a bright flare This can also release bursts of charged particles into space These solar eruptions are known as coronal mass ejections or CMEs When headed in our direction, the charged gas collides with the magnetic sheath around Earth The subsequent disturbances in the Earths magnetic envelope are called solar storms They can interfere with technology: satellites, electrical grids and communications systems They can also cause aurorae - Northern and Southern Lights - to be seen at lower latitudes
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Inspirations@IP
INSPIRAtIoNS@IP...
-My approach to cricket has been reasonably simple: it was about giving everything to the team, it was about playing with dignity and it was about upholding the spirit of the game. I hope I have done some of that. I have failed at times, but I have never stopped trying. It is why I leave with sadness but also with pride. Rahul Dravid, March 9, 2012 From teammates to oppositions, from friends to the very old foe, everyone acknowledged Dravid as the ultimate cricketer, the unchallenged team-man, the man who did everything with grace, panache, dignity, decency and a sense of correctness that is too rare in this dogeat-dog world. Rahul Dravid has definitely left cricket a richer, better place. Cricket will be poorer without him, but cricket will also consider itself fortunate that a giant graced the sport with such aplomb and for such a long time. Men who inspire a generation are rare. They become legends, role models for higher achievements and icons in their field of excellence. Rahul Dravid, the gentle hard hitting first down batsman is one such personality who shall remain a role model in cricket and an ambassador of sports. He has made millions of cricket lovers across the world in general and in India particular proud by his outstanding performance. Rahul is one, said Australian speedster Glen McGrawth, who can step into the star-studded Australian team. That was a huge compliment to The Wall. It is not his consistent performance over the past 16 years scoring 36 centuries and 63 half centuries to amass 13,288 runs at a good average of 52.31 in 164 tests nor 10,889 runs with 12 centuries and 83 half centuries from 344 ODIs that has made him great. His great qualities as a team man, his commitment to the game and respect for his team mates have scripted his name in golden letters in the history of cricket. Dravid started playing cricket at the age of 12, and represented the state at the under-15, under-17 and under-19 level. Rahuls talents were first spotted by former cricketer Keki Tarapore who was coaching at a summer coaching camp at the Chinnaswamy Stadium. He went on to score a century on debut for his school team. Along with the batting, he was keeping wickets. However, he later stopped keeping wickets on advice from former Test players Gundappa Vishwanath, Roger Binny, Brijesh Patel and Tarapore. He was selected to make his Ranji Trophy debut in February 1991 against Maharashtra in Pune (while still attending college at St. Josephs College of Commerce in Bangalore), alongside future Indian teammates Anil Kumble and Javagal Srinath, scoring 82 in a drawn match after batting in the No. 7 position. His first full season was in 199192, when he scored two centuries to finish with 380 runs at an average of 63.3, and was selected for South Zone in the Duleep Trophy. All this going around is not aggression; if you want to see aggression on cricket field, look into Rahul Dravids eyes.Matthew Hayden. He made his International debut in 1996 when he played his first One Day International against Srilanka on April 3, 1996 in Singapore. He made his Test debut against England on June 20, 1996 along with Saurav Ganguly and scored 95 in his first test innings. Though he fell short by 5 runs but he sealed his place in the test squad for the future to come. You either become obsessed with future or plan for it madly that you forget the present. Otherwise, you become obsessed with living in the present and suffer in future. Or you could be Rahul Dravid. Someone who didnt practice because he wanted to succeed at the international level, but because he loved the game. Dravid was an evolved cricketer,
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articulate and well spoken, quietly aggressive yet not afraid to reveal an introspective side. Cricket is a thinking mans game- unlike contact sports like rugby, which is more about brute force and Dravid embodied the thinking mans cricketer. In a way, Dravid is someone who all of us can relate to. While Tendulkar is someone who has always been seen with God-like qualities, Laxman with his immense talent, Ganguly with his flair; Dravids been one who can easily fit into the role of the boy next door. And thats what makes his achievements all the more amazing. It is what makes him the most inspiring figure around- I can try and emulate his attributes, and Ill succeed.
- In the year 2004 Rahul Dravid was awarded ICC Player of the year 2004 and Test Player of the year 2004. - Rahul Dravid became sixth player in the history of world cricket and the third Indian score 10,000 runs in ODI cricket in February 2007. - Rahul Dravid is the first and the only batsman to score a century in all ten Test playing nations. Dravid is obviously one of Indias greatest batsmen great in all conditions and one who scored runs everywhere, said John Wright, former New Zealand skipper who coached India from 2000 to 2005. From a personal perspective, Rahul is one of the best men Ive ever worked with... hes not only a great cricketer, but a great man.
Rahul Dravid isnt about numbers. If youve seen him on field, you wont need some statistician to tell you his value, his aura, his presence. You need some fine eyes which could distinguish very good from good, excellent from very good, and as per need from carefree. He has always been a silent performer, full of talent and commitment. He remained calm and kept his head cool whenever he was asked to serve in different roles. He never compared himself with anybody and competed against his own performance. He is a man of class and always served to contribute for the bigger goal. Like he said, records didnt matter to him as long as he was contributing to Indias victory. if youre not giving your best in life, you shouldnt be called a Rahul Dravid fan. Rahul Dravids career stands for Inspiration. - From the mouth of an overwhelmed fan
Achievements
- In the year 2000 Rahul Dravid was honored as one of the five WISDEN Cricketers.
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Know it all
KNOW IT ALL
AWARDS
Jawaharlal Darda Memorial Excellence in Journalism Awards
The media excellence awards are instituted in the name of Jawaharlal Darda, the late freedom fighter and founder Editor of the Lokmat Group of Newspapers. The group has another award named Ashok Gehlot Lokmat Mitrata Puraskar, denoting the link between the Darda family and Rajasthan, the land of their ancestors. This years winner of the Ashok Gehlot Lokmat Puraskar is Om Thanvi, Editor of Jansatta , and Delhi . The awards for the winners of the two previous years -- Ved Vyas and Rajendra Shankar Bhatt were also handed over on the same occasion. Madan Kalal and Vishwalal Saini of Rajasthan Patrika and Moinduddin Chisti, a freelance journalist from Jodhpur, were the recipients of the Jawaharlal Darda Memorial Awards. the Ernst & Young Entrepreneur of the Year 2011. Mr. Bhatia will now represent the country at the Ernst & Young World Entrepreneur of the Year Award in Monte Carlo, Monaco, later this year, says a release. Deepak Parekh, Chairman of HDFC, has been named for the Lifetime Achievement Award for his contribution to the emergence of financial services. The winners in other categories are: Business transformation: Deep Kalra, Founder & Chief Executive Officer of Makemytrip (India); Consumer products: Anand Burman, Chairman of Dabur India; Lifesciences and healthcare: Desh Bandhu Gupta, Founder of Lupin; Manager: Natarajan Chandrasekaran, Managing Director & Chief Executive Officer of Tata Consultancy; Manufacturing: Vivek Chaand Sehgal, Founder of Samvardhana Motherson Group; Services: Analjit Singh, Founder & Chairman of Max India Group; and Start-up: B. S. Ajaikumar, Founder & Chairman of Healthcare Global Enterprises. The Muppets earned the best-song award for Man or Muppet, the sweet comic duet. Filmmaker Alexander Payne won the adapted-screenplay prize for the Hawaiian family drama The Descendants with co-writers Nat Faxon and Jim Rash. Woody Allen earned his first Oscar in 25 years, winning for original screenplay for the romantic fantasy Midnight in Paris. Rango won for best animated feature. Sharmeen Obaid Chinoy, a documentary film maker from Pakistan, became the countrys first Oscar awardee. She got the award for Saving Face, a documentary on acid victims. Asghar Farhadi accepted Irans first Oscar for best foreign film for acclaimed domestic drama, A Separation. The only other Iranian movie ever nominated was 1997s Children of Heaven , which was defeated by Italys Life Is Beautiful .
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Oscars
The Artist on 26th February won five Academy Awards, including best picture, becoming the first silent film to win Hollywoods highest honours since the original Oscar ceremony 83 years ago. The best actor award went to Jean Dujardin and the best director to Michel Hazanavicius. Other top Oscars went to Meryl Streep for best actress for the film The Iron Lady, Octavia Spencer as supporting actress for The Help and Christopher Plummer as supporting actor for Beginners. The 82-year-old Plummer became the oldest acting winner ever for his role as an elderly widower who comes out as gay in Beginners. The Artist is the first silent winner since the World War I saga Wings, which was named outstanding picture at the first Oscars in 1929. The other wins for The Artist were for musical score and art direction. Martin Scorseses Paris adventure Hugo also won five Oscars, all in technical categories.
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Indira Gandhi Award for Best Debut Film of a Director. Actor-director Revathy received the award for Best film on family values for Red Building where the Sun Sets. The special mention award won by Aadimadhyantham directed by Sherry.
such as the UN HABITATs 2010 report on Solid Waste in the Worlds Cities and the European Unions ISSOWAMA project.
APPOINTED/ELECTED
Mohamed Waheeduddin
Maldivian President Waheed Hasan Manik named a resort owner of no claimed political affiliation, Mohamed Waheeduddin, as his Vice-President. Mr. Waheeduddin was the Atolls Minister in the earlier Gayoom regime, and is regarded as one of the fathers of modern tourism in The Maldives. The appointment has to be approved by the Peoples Majlis (Parliament).
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Jawhar Sircar
Jawhar Sircar Secretary to the Culture Ministry is set to be the new Chief Executive Officer of Prasar Bharati. A search panel has recommended his name for the big job. The top spot has been empty for over a year, ever since B.S. Lalli was suspended due to a CBI probe into the alleged financial irregularities. Since then, Information and Broadcasting Ministry Additional Secretary Rajiv Takru has been acting as CEO. Mr. Sircar, a 1975 batch officer from the West Bengal cadre, who has previously held additional charge of the
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Information and Broadcasting Ministry, was selected by a three-member panel headed by Vice-President Hamid Ansari, and including Press Council Chairman Justice Markandey Katju and I&B Secretary Uday Kumar Varma.
Medal, Sena Medal and Vishist Seva Medal and one of the Honorary ADCs to the President of India.
F. M. Ibrahim Kalifulla
The Supreme Court will soon get one more judge Chief Justice of the Jammu & Kashmir High Court F. M. Ibrahim Kalifulla with the collegium of judges clearing his name for elevation. Justice Kalifulla, who hails from Tamil Nadu, will be the second judge to represent the Madras High Court, after Justice P. Sathasivam. The collegium, headed by Chief Justice of India S. H. Kapadia considered the elevation of Justice Kalifulla. Justice Kalifulla was posted as a judge of the Jammu & Kashmir High Court in February 2011. He became its acting Chief Justice in April 2011 and permanent Chief Justice in September that year. He will have little over four years in tenure as Supreme Court judge and will be the third Muslim Judge, after Justice Altamas Kabir and Justice Aftab Alam.
Sushobhan Sarkar
Life Insurance Corporation (LIC) has said the Centre had appointed Sushobhan Sarkar as Managing Director. Prior to his elevation, he was Executive Director (International Operations) handling LICs global business in Fiji, Mauritius, Kenya, Nepal, Saudi Arabia, Bahrain (covering GCC counties), the U.K., Sri Lanka and Singapore. He had also served as Director and CEO of LIC MF AMC.
Lieutenant-General Islam is also an infantry man like COAS Ashfaq Parvez Kayani and Lieutenant-General Pasha. He has served in the ISI in the past as a two-star general in the post of Deputy Director General and had then apparently dealt with domestic and counter-intelligence issues.
K. Venkataramanan
K. Venkataramanan will take over as the Chief Executive Officer and Managing Director of engineering conglomerate Larsen & Toubro (L&T) from April 1, 2012. He will succeed A. M. Naik who will step down as Managing Director. Mr. Venkataramanan, 67, at present, President, Hydrocarbons and wholetime director on the companys board, is a chemical engineer from IIT (Delhi). He joined L&T as a graduate engineer trainee. He was elevated to the board as a whole-time director in 1995.
Vinod Rai
The Comptroller and Auditor General of India (CAG), Vinod Rai is the new chairman of the 45-nation-strong Asian organisation of the Institutions of the Auditors General, Association of Supreme Audit Institutions (ASOSAI). Mr. Rai took over as its chairman from Muhammad Akhtar Rana, Auditor General of Pakistan.
Vijay Bahuguna
Vijay Bahuguna, 65-year-old former High Court Judge-turned-politician representing Tehri in the Lok Sabha, was named the Uttarakhand Chief Ministerdesignate by Congress president Sonia Gandhi.
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Bikram Singh
Eastern Army Commander Lieutenant General Bikram Singh is set to be the next Chief of Staff of the 1.3 million-strong Indian Army. He will succeed General Vijay Kumar Singh, who retires on May 31. Lt. Gen. Bikram Singh was commissioned into the Sikh Light Infantry Regiment on March 31, 1972 and during the last four decades, served in a variety of Command and Staff appointments. Besides having commanded a Corps in the Northern Command, he served as Deputy Force Commander of multi-nation U.N. Peace Keeping Mission in Congo. He also served as U.N. observer in Nicaragua and El Salvador during early 1990s. He is a recipient of Param Vishist Seva Meda, Uttam Yudh Seva Medal, Ati Vishist Seva
Bo Shin Seo
Hyundai Motor India Ltd (HMIL) has appointed Bo Shin Seo as the new Managing Director. Mr. Seo will take over from Han Woo Park, who returns to Korea as Chief Financial Officer of Kia Motors. Mr. Park had a nine-year stint in India and had a long association with HMIL.
Okram Ibobi
The outgoing Chief Minister, Okram Ibobi, has been elected as the Chief Minister by the Congress Party Legislature in Manipur. Thus, he is heading the government for the third time. Laishram Nandakumar, a newly elected Congress MLA, was appointed pro-tem Speaker.
Marine Le Pen
French farRight candidate Marine Le Pen had secured the backing of enough local government officials to run in the two-round presidential election. Ms. Le Pen, who heads the anti-immigrant National
Zaheer-ul Islam
The government of Pakistan has appointed Zaheer-ul Islam, the Karachi Corps Commander, as the ISI DirectorGeneral. He will replace Ahmad Shuja Pasha who retired on March 18 after a three-and-a-half-year stint at what is regarded as one of the most powerful offices in the country, second only to that of the Chief of Army Staff (COAS).
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Front party, now has the required 500 signatures from local Mayors and other elected officials to stand in the AprilMay vote. Though opinion polls give Ms. Le Pen between 16 and 18 per cent of the national vote, there was speculation that few Mayors or regional councillors wanted to take the political risk of associating themselves with her campaign. Frances Constitutional Council last month rejected Ms. Le Pens plea to make the sponsorships anonymous. All French presidential candidates must have the signed endorsement of 500 elected local officials of which there are around 42,000 in France by a March 16 deadline. Opposition Socialist candidate Francois Hollande is tipped to beat President Nicolas Sarkozy in the two-round election to be held on April 22 and May 6.
RESIGNED/SUSPENDED
Robert Zoellick
World Bank President Robert Zoellick has announced to step down from at the end of his five-year-term in June.
the blacklisting of scientists involved in the controversial spectrum deal between the Indian Space Research Organisation (ISRO) and Bangalore-based Devas Multimedia Private Limited. Professor Narasimha objected to the treatment of four scientists, including the former ISRO chief, Madhavan Nair, who were barred from holding government office for their role in multi-million dollar deal between the ISROs commercial wing Antrix Corporation and Devas. Professor Narasimha was part of the two-member High Powered Review Committee (the second member being Planning Commission member B.K. Chaturvedi) appointed by the Union government in February 2011 to probe flaws in the agreement. While the committees report said that concerns [over] cheap selling of spectrum have no basis, it enumerated several lapses in the agreement.
career at PepsiCo included roles in the companys businesses in India, Asia and the Middle East. As the leader of PepsiCo India Foods, he oversaw the companys popular Lays, Quaker, Kurkure and Lehar brands, it added.
Rajendra Singh
The Prime Ministers Office has asked Magsaysay Award winner Rajendra Singh better known as Waterman -to re-consider his resignation from the National Ganga River Basin Authority. Mr. Singh and his Authority colleagues Ravi Chopra and R. H. Siddiqi had quit two days ago in protest against alleged indifference of the Central Government towards protection of the Ganga River. Mr. Singh has responded positively, though with conditions. Dr. Singh heads the Ganga Authority, set up in 2009 to clean up the holy river and protecting its minimum ecological flow while ensuring the water quality and environmental sustenance. The immediate provocation for the act of the Waterman and his colleagues was the ongoing fast-untodeath by the swami-turned-technocrat G. D. Agarwal (now Swami Gyan Swarup Sanand) on the banks of the Ganga at Varanasi.
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James Murdoch
The News of the World phone-hacking scandal has claimed its biggest scalp yet when James Murdoch, Rupert Murdochs heir apparent, dramatically resigned as executive chairman of News International, publisher of The Times , The Sunday Times and The Sun , amid fresh allegations that he attempted to cover-up the scandal. Last year, its chief executive Rebekah Brooks was forced to resign over her role in hushing up the affair. She was arrested and is on bail.
Chritian Wulff
Germanys President Chritian Wulff has resigned on 17th February in a scandal over favours he allegedly received before becoming head of state. Mr. Wulff announced his resignation a day after the slowburning affair escalated with a request by prosecutors for Parliament to lift his immunity from prosecution over his relationship with a film producer in his previous job as governor of Lower Saxony. Those benefits allegedly included paying for a luxury hotel stay in 2007.
Dinesh Trivedi
Railway Minster and Trinamool Congress leader Dinesh Trivedi has resigned after presenting the Rail budget 2012-13. Earlier Trinamool party leader and West Bengal Chief Minister Mamata Banerjee sent a letter to Prime Minister asking him to sack Mr. Trivedi and withdraw the hike in passenger fares in the budget. Another leader of Trinamool Mukul Roy has replaced Mr. Trivedi as the Railway Minister.
Varun Berry
Global beverages and snacks major PepsiCo has said Varun Berry, PepsiCo India Foods CEO, has resigned from the company. Mr. Berrys 18-year
DIED/KILLED
Marie Colvin
British journalism on 22nd February has lost one of its most respected war reporters when Marie Colvin of The Sunday Times, often spoken of in the same breath as Martha Gelhorn for her extraordinary courage to venture into
Roddam Narasimha
Eminent aerospace scientist Roddam Narasimha has resigned as a member of the Space Commission in protest against
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the most feared of danger zones and her passion for war victims, was killed with a French photographer Remi Ochlik in Syria. The Sunday Times said the journalists were working in Baba Amr, a suburb of the besieged city of Homs, when the house in which they had been staying came under bombardment. As they tried to escape the building, Colvin and Ochlik were hit by a rocket and killed.
Maya Sen
Renowned Rabindra Sangeet exponent Maya Sen has died. Initiated and trained in Rabindra Sangeet by a famous Guru of the genre Sailajaranjan Majumder at Santiniketan, Sen also learnt classical music from V V Wajhalwar and practised the esraj and the sitar under Asesh Chandra Banerjee. Graduating in 1953 from Santiniketans Sangit Bhavan, she went on to establish herself as a Rabindrasangeet singer in the traditional style.
many doyens in the world of Carnatic music, has passed away. He was 82. Ramabhadrans journey as a performing artiste began in 1943, when he got to accompany the legendary Madurai Mani Iyer.
Sobha Brahma
Sobha Brahma, the artist-sculptor from Assam who gave a contemporary stroke to the north-eastern regions tribal art, has passed away. He was 82. So distinct was his art, so researched it was into the forms, tones and shades representative of Assams plains tribes the Bodos, and the Dimasas, the Rabhas and the Karbis that Brahma became everyones own. Brahmas flowering in art began in the 1950s. Along with his contemporary, Beni Mishra, he began searching for ways to give a fresh blend to art in Assam, different from their seniors in the 1930s and the 1940s. They had largely followed trails beaten by Raja Ravi Varma, and beautiful ruralscapes with an Impressionist influence, respectively. He was the recipient of the Kala Ratna from the Lalit Kala Akademi, the Kamal Kumari National Award, and the Bishnu Rabha Award, among others
M.A. Vellodi
M.A. Vellodi, who as an Indian Foreign Service officer witnessed up-close several momentous events in the 1960s and 1970s while working at the United Nations and also back home in India, has died. He was 90. The former Secretary, Ministry of Foreign Affairs, had a remarkable career until he retired from service in 1979. Mr. Vellodi was posted in Switzerland, Pakistan and Tanzania. He was Indias first Ambassador to Tanzania when it gained independence in 1962.
Frits Staal
Frits Staal one of the most influential Indologists and experts in Vedas abroad died on February 19. Some of the earliest and rarest recordings of Veda recitation and chant were made by a foreigner, Frits Staal, during a ride he undertook across South India. Stall, was Emeritus Professor of Philosophy and South/ Southeast Asian Studies at the University of California. Staal wrote, Panini is the Indian Euclid. The Indologist wrote how Panini had expanded the spoken Sanskrit to a formal metalanguage.
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George Joseph
Senior journalist George Joseph, who shot to fame in early 1990s for his reporting on militancy-hit Jammu & Kashmir, has died. He was 58. Working as a coordinating editor with IANS, Joseph was posted to Kashmir in the early 1990 with the Indian Express and he became an eyesore for terror groups, especially Hizbul Mujahideen, because of his writings.
Anthony Shadid
Anthony Shadid, t w o - t i m e Pulitzer Prizewinning foreign correspondent has died at the age of 43. At his death, from what appeared to be an asthma attack, he was on assignment for The Times in Syria. While working with The Washington Post he won Pulitzer Prizes in 2004 and 2010. He was known most recently to Times readers for his clear-eyed coverage of the Arab Spring. For his reporting on the sea change sweeping the region which included dispatches from Lebanon and Egypt The Times nominated him, along with a team of his colleagues, for the 2012 Pulitzer in international reporting. (The awards are announced in April.)
Vellore Ramabhadran
Veteran mridangam exponent Vellore Ramabhadran, whose sensitive percussive strokes enriched performances of
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Joy Mukherjee
Yesteryear actor Joy Mukherjee has passed away after prolonged illness. He was 73. Mr. Mukherjee had starred in many Hindi movies of the 1960s such as Shagird , Love In Tokyo , Ziddi ,Phir Wohi Dil Laya Hoon and Ek Musafir Ek Hasina.
Pervez Musharraf
Pakistan has decided to ask Interpol to arrest the former President, Pervez Musharraf, in connection with the assassination of the former Prime Minister, Benazir Bhutto, for failing to provide adequate security to her. Mr. Musharraf is currently based in the U.K. This was announced by Interior Minister Rehman Malik on 21st February while briefing the Sindh Assembly on the findings of the investigation into her assassination. The Minister said 27 terrorist outfits helped the Tehreek-e-Taliban Pakistan execute the assassination on December 27, 2007, in the garrison town of Rawalpindi.
MISCELLANEOUS
Earliest Image of Mother Goddess Found
The first-ever Mother Goddess image carved in sandstone rock representing the earliest perception of idolising woman as Goddess dating back to 3rd Century BC has been found at Samarlakota near Kakinada in East Godavari district of Andhra Pradesh. Archaeological Survey of has found the image of a seated mother goddess (Yakshini), while conducting an exploration around the Bheemeswara Swamy temple to ascertain its origin and antiquity
IN NEWS
Thomas Lubanga
The International Criminal Court has convicted Congolese militia chief Thomas Lubanga of war crimes for conscripting children into his army, the tribunals first ever verdict. Lubanga (51) was found guilty in The Hague of enlisting child soldiers as young as 11 to fight during a bloody four-year war in a goldrich region of the Democratic Republic of Congo (DRC). First transferred to The Hague in 2006, the alleged founder of the Union of Congolese Patriots (UPC) and chief commander of its military wing went on trial in January 2009. He had pleaded not guilty to the charges. Prosecutors told the court that militia under Lubangas control abducted and conscripted children as young as 11 from their homes, schools and football fields to serve as soldiers, and that young girls were used as sex slaves.
Baltasar Garzon
A court in Madrid has acquitted Spains renowned human rights judge Baltasar Garzon of breaching the terms of an amnesty by trying to investigate atrocities committed during the Franco era. Six members of the seven-panel bench came out in favour of acquitting the 56-year-old. Mr. Garzon has argued that the atrocities, including the disappearance of more than 100,000 people during the 1936-39 Civil War and General Francisco Francos dictatorship that ended in 1975, were crimes against humanity and not subject to a 1977 amnesty voted through by Parliament. Recently, a court also quashed a bribetaking case against Mr. Garzon, ruling that a three-year statute of limitations had passed in the case. The 56-year-old, who came to fame with his efforts to extradite Chiles former dictator Augusto Pinochet from London in 1998, has also taken on Basque militants and even the al-Qaeda.
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Silvio Berlusconi
An Italian court has thrown out bribery charges against the former Prime Minister, Silvio Berlusconi, under the statute of limitations, bringing the five-year trial to an end. Prosecutors had called for a five-year prison term for Mr. Berlusconi, who was accused of having paid off his former British tax lawyer David Mills to provide false testimony in his favour in two trials in the 1990s.
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celebrations for Clarke as, apart from the Allan Border Medal, he was also named Australias Test Player of the Year. It was also double joy for Clarkes deputy, Shane Watson who won the ODI and Twenty20 Player of the Year awards.
SPORTS
CRICKET Andrew Symonds 62
Australian allrounder Andrew Symonds has announced his retirement from all forms of professional cricket. The 36-year-old Symonds cited family reasons for his decision. Symonds made his first class debut in 1994-95 before playing his first ODI in November 1998 against Pakistan in Lahore. He scored 5,088 runs from 198 ODIs at an average of 39.75 before retiring in 2009. The burly all-rounder made his Test debut in March 2004 against Sri Lanka and scored 1,462 runs from 26 matches at an average of 40.61 before playing his last match against South Africa in December 2008. He took 24 wickets in Tests and 133 wickets in ODIs.
Ivan Ljubicic
Croatias former World No. 3 Ivan Ljubicic announced on 8th March that he will retire from the sport after competing in the Monte Carlo ATP event in April. A Davis Cup winner in 2005 and an Olympic bronze medal winner in doubles at the 2004 Games, the 32-year-old Ljubicic said he is now looking forward to the next stage of his life. Ljubicic, currently 40th in the ATP rankings, has won 10 career singles titles, notably the BNP Paribas Open at Indian Wells in 2010 when he beat Novak Djokovic, Rafael Nadal and Andy Roddick.
Michael Clarke
Michael Clarke has taken away the Allan Border Medal for the third time in his career to cap off a sensational opening year as Australia captain. It was double
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Prajakta Sawant and Pradnya Gadre went down 18-21, 19-21 against Shu Cheng and Pan Pan. Sayali Gokhale lost the final match to Xin Liu 9-21, 2-21. In Thomas Cup, India got off to a bad start with P. Kashyap losing 7-21, 1521 to Simon Santoso. The duo of Rupesh Kumar and Sanave Thomas saw off Alvent Yulianto Chandra and Hendra Aprida Gunawan 21-18, 21-16 to even the tie. Olympic champion Taufiq Hidayat helped Indonesia regain the lead by thrashing Anand Pawar 21-16, 21-13 and India lost out when Akshay Dewalkar and Pranav Chopra went down 21-18, 21-16 against Markis Kido and Hendra Setiawan. In the inconsequential fifth match, B Sai Praneeth eked out a hard-fought 21-13, 15-21, 9-21 win over Dionysius Hayom Rumbaka.
eased past unseeded German Julia Goerges 7-5, 6-4 on 25th February to win the WTA Dubai title for her eighth career trophy. Radwanska will also rise to a career-high of five in the world courtesy of her victory over Goerges. In doubles, Sania Mirza and Elena Vesnina suffered a crushing 6-2, 6-1 defeat against top seeds Liezel Huber and Lisa Raymond to end runners-up.
B. Adhiban and Deep Sengupta, retained the title following a 3.5-0.5 triumph over Maharashtra B in the ninth round. In the womens section, AAI, served by D. Harika, Mary Ann Gomes, Kiran Manisha Mohanty and Nimmy George, and defending champion Air-India finished with 12 match-points each. AAI took the title owing to its aggregate of 24 game-points as compared to Air Indias 21.5.
Rotterdam Open
Roger Federer has won his second title at the Rotterdam Open seven years after his first as he defeated Juan Martin del Potro 6-1, 6-4. The victory took the 30-year-old Federers record against del Potro to 9-2. The Swiss, a 16-time Grand Slam winner, has now assured himself of a 12th consecutive year in which he has won at least one crown.
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Qatar Open
At Doha, Victoria Azarenka extended her domination over Australias Samantha Stosur to win her third successive title of the year. The Belarusian World No. 1 beat Stosur 6-1, 6-2 in a one-sided final to extend her unbeaten streak in 2012 to 17.
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and Jhano Hansdah, mens compound team of Rajat Chauhan, Ch. Jignas and Ritul Chatterjee also won gold in their respective events. India secured silver medal through Mangal Singh Champia (mens recurve), Chekrovolu Swuro (womens recurve) and Rajat Chauhan (mens compound) and Mangal Singh Champia, Thupuvoyi Swuro and Jayanta Talukdar (recurve teams).
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QuEStIONS@IP...
8. Which of the following is/are not correct regarding companies bill, 2011? I. The bill proposed to regulate entry and exit policies of operating business in India to comply with best global practices II. It will also make mandatory for companies to earmark 2 per cent of their average profit of the preceding three years for CSR (corporate social responsibility) activities. (a) I only (b) II only (c) Both I and II (d) None 9. Which global IT major in partnership with Karnataka government launched the pilot project to enable organizations in the state to make smooth transition for IPv6? (a) HCL (c) Microsoft (b) HP (d) Google
4. Which of the following is true about recent vaccine trials against HIV in rhesus monkeys? 1. The vaccine consists of env antigen which is considered as vital for reducing the viral load. 2. The monkeys which developed antibodies against the env antigen were less vulnerable in contracting simian immunodeficiency virus. (a) 1 only (b) 2 only (c) Both 1 and 2 (d) None 5. Which of the following is/are correct regarding FDI in domestic airlines? 1. NRIs are allowed to invest 100% in domestic airlines 2. Foreign investors other than foreign airlines can invest upto 49% in domestic airlines 3. Foreign airlines are allowed to invest upto 26% in domestic airlines (a) 2 only (b) 1 and 2 only (c) 1, 2 and 3 (d) 2 and 3 6. Dhamaadhikari committee was set up by government of India to revive (a) Air India (b) Inland water transport
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2. Read the statement about Kalas Mahal. 1. Kalas Mahal or the Chepauk Palace, the official residence of the princes of the Carnatic had been taken over by the British. 2. The Kalas Mahal is classified as a Grade I heritage building in the Justice E. Padmanaban committee report. 3. The building mark the beginning of Indo-Saracenic architecture in India Which of the following statements given above is/are correct? (a) 1 only (c) 1 and 2 (b) 2 only (d) 1 , 2 and 3
10. NASA launched a Curiosity rover, from Florida on an Atlas 5 rocket. The ambitious project is launched to which planet of the solar system (a) Mars (c) Venus (b) Jupiter (d) Saturn
11. Before India-EU summit, these two join hand to combat against piracy in the India Ocean. Identify the operation. (a) Operation cactus (b) Operation Atlanta
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(c) Operation Indian ocean (d) Operation thunderstorm 12. Which of the following is/are correct regarding South China dispute? 1. China wants to asserts its sovereignty on south china sea by using its military power but not through negotiations 2. China had not signed the Declaration on the Conduct of Parties in the South China Sea in 2011 ASEAN summit (a) 1 only (b) 2 only (c) Both 1 and 2 (d) None 13. Which of the following is/are reasons for the postponement of 15th round of border talks between India and China? I. World Buddhist conference was scheduled in New Delhi which coincided with the date of border talks
and elected its new president, identify the person (a) Martin schulz (b) Jos Manuel Barroso (c) Herman Van Rompuy (d) Tony Blair 16. Match Column I with Column II Column I A. Solar pond B. Solar Photovoltaic system C. Future Gen Project D. Coal Bed Methane Column II 1. Natural gas extracted from coal beds. 2. Initiative to build worlds first coal based power plant that removes and sequesters CO2 while producing electricity and hydrogen 3. Enable conversion of light into electricity 4. Large scale collector. Codes : A (a) 1 (b) 4 (c) 1 (d) 2 B 2 3 4 3 C 3 2 3 4 D 4 1 2 1 solar energy
(a) Mars
(b) Jupiter
(c) Saturn (d) Uranus 20. Read the following statements about worlds first intergovernmental agency on renewable agency IRENA 1. Adnan Amin was sworn in as the first Director-General 2. Inaugural Session of IRENA`s Assembly was held at Abu Dhabi in 2011 Which of the following statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) None 21. Consider the following statements: 1. The Abel Prize is an international prize presented annually by the King of Norway to one or more outstanding mathematicians. 2. It has often been described as the mathematicians Nobel prize 3. The prize started in 2002, at the hundredth anniversary of Abels birth 4. The first prize was actually awarded in 2003 and this year is given to Endre Szemerdi Which of the following statements given above is/are incorrect? (a) 1 (b) 2 (c) 3 (d) 4 22. Which country is regarded as the diabetes capital of the world by the International Diabetes Federations new diabetes atlas? (a) China (b) India (c) South Africa (d) Brazil 23. The Bahin Shanno Devi Panchayati Raj Award is named after (a) The first women speaker of Rajasthan (b) The first women speaker of Kerala (c) The first women Chief Minister of Orissa (d) The first women speaker of Haryana
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II. Dalai Lama was allowed by India for his lecture in closing ceremony of Buddhist conference. (a) I only (b) II only (c) Both I and II (d) None 14. Who among the following can be the chairman of the National human Rights Commission ? (a) Any serving judge in Supreme Court (b) Any serving judge in the high courts (c) Only a retired chief justice of India (d) Only a retired chief justice of high courts 15. European Parliament is the directly elected parliamentary institution of the European Union (EU). Together with the Council of the European Union (the Council) and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world. Recently went for election
17. With which of the following country India does not have any defense treaty? (a) China (c) Israel (b) France (d) United kingdom
18. Which of the following articles deals with the reservation for women in the local government? (a) 243C & 243 R (b) 243D & 243 T (c) 243 E & 243 U (d) 243 F & 243 V 19. Which planet is having the moon named EUROPA in which new lake was discovered recently?
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24. Which of the following is/are correct regarding Australian decision to supply uranium to India? i. It will increase the trust and understanding in the political domain between two countries
4. That will reduce about 15 per cent of India`s annual emissions Which of the following statements given above is/are correct? (a) 1 and 2 (b) 2 and 3 (c) 1 ,2 and 3 (d) 1 ,2 ,3 and 4 28. Matters of discretion is an autobiography of the former Indian Prime Minister: (a) H.D. Deve gowda (b) I.K. Gujral (c) Atal Bihari Vajpaye (d) V.P. Singh 29. Consider the following statements 1. Jaitapur is the name of a small port situated in Ratnagiri district of Mahrashtra. 2. Jaitapur Nuclear power plant is proposed to be build in Madban, a village besides Jaitapur. 3. The project comprises of six reactors each 1650 Megawatts with a total capacity of 9900 Mega Watts. 4. French Multinational company Areva has been awarded the contract to construct these reactors. Select the correct one. (a) 1, 2, 3 (c) 1, 2, 3, 4 (a) Diptayan Ghosh (c) Jan Ullrich (d) Sadaf Rahimi (b) 2 and 4 (d) 1 and 3 : Chess : Golf : Boxing
on
32. Which one among the following was the objective of starting the NIRMAL GRAM PURUSKAR incentive scheme? (a) Encourage the Panchayati Raj Institutions to take up sanitation promotion for attaining 100% open defecation-free environment (b) Enable rural schools to provide safe and clean drinking water for children (c) Provide toilets to all rural households (d) Provide financial assistance to states to install water purification systems in rural schools 33. The SABLA scheme is supervised by which one among the following (a) Ministry of health (b) Ministry of rural development (c) Ministry of women and child development (d) Department of food and public distribution 34. Which of the following is/are true about Dragon Capsule, recently in the news? 1. It is the chinas first satellite to Moon. 2. It is launched by the private space exploration company Space X to dock with International Space Station. (a) 1 only (b) 2 only (c) Both 1 and 2 (d) None 35. Union budget 2012-2013 declared that one of the ongoing schemes will be called as Aajeevika. Identify the scheme: (a) National Mission Rural Livelihood
ii. It will be vital for the Indias energy security and nuclear power expansion plan. iii. The decision was taken based on the recommendations from 46 member NSG group. (a) ii only (c) i ,ii & iii (b) i & ii only (d) ii & iii only
25. In the budget 2012-2013 finance minister announce probiotics. Probiotics are: (a) Muscle supplements that enhance the lean body muscle (b) live microorganisms thought to be beneficial to the host organism (c) Biological nutrients that are produced by the body themselves (d) Pro-vitamin enhancers stabilize body control 26. Consider the following list 1. Internet explorer 3. Safari 5. Netscape Navigator Which among the following is/are internet browsers? (a) 1, 2 and 3 (b) 1, 2, 3 and 4 (c) 1, 2, 3 and 5 (d) 1, 2, 3, 4 and 5 27. Consider the following statement. 1. There is an increase of 5 percent forest cover between 1997 to 2007 in India. 2. The implementation of the Green India Mission which aims to increase the forest and tree cover by 5 million hectares and improve forest cover on another 5 million hectares 3. These forests will act as a sink that could absorb 50-60 million tonnes of carbon dioxide. 2. Firefox 4. Google AdSense that
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31. Honolulu Declaration is related to which of the following international organization. (a) APEC (Asia-Pacific Economic Cooperation ) (b) OPEC (Organization of Petroleum Exporting Countries ) (c) SAARC (South Asian Association for Regional Cooperation ) (d) UNFCCC (United Nations
(b) Indira Gandhi Matritva Sahyog Yojana (c) Rajiv Gandhi Scheme for Empowerment of Adolescent Girls
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Suraksha
36. Consider the following statements about SAARC. 1. The Seventeenth Summit was held from 10-11 of November 2011 in Addu City, Maldives. 2. The Summit being held under the theme of Building Bridges 3. Its founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan, Bangladesh and Afghanistan. Which of the following statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1 ,2 and 3 only 37. Which country among the following recently communicated its intention to join in SCO (Shanghai Cooperation Organisation) as observer? (a) Iran (c) Vietnam (b) India (d) Sri-Lanka
Which of the following statements given above is/are incorrect? (a) 1 only (c) 3 only (b) 2 only (d) none
mode to one that will blend natural resources and labour to build productive assets. 2. NAC has recommended to decentralize planning and the creation of technical capacity at various levels to the village level. 3. Till date under the MGNREGS scheme sums of money has been spent on unproductive works. 4. NAC also insists on two third investments on natural resources management. Choose the correct among the following: (a) Only (2), (3), & (4). (b) Only (1) & (4). (c) All (1), (2), (3) & (4) are correct. (d) All of the above are false. 45. With respect to the Rajya Sabha (R.S.), consider the following statements: 1. Apart from Article 102, certain Constitutional provisions of Representation of People Act, 1951 also provides grounds of disqualification for member of R.S. 2. R.S. plays special role in making laws with respect to matter given in the state list & create one or more All India services by passing a resolution. 3. The R.S. revises & rectifies the acts of the Lok Sabha. Select the correct statement: (a) Only (2) & (3) are correct. (b) Only (1) & (2) are correct. (c) Only (1) & (3) are correct. (d) All of the above are correct. 46. Read the statement carefully: Assertion: Impeachment is an executive act that is why it is formal. Reason: In Indian Constitution there are also elaborate provisions
40. Which of the following is/are correct regarding transparency international report on corruption? i. The least corrupt country is New Zealand.
ii. Most corrupt countries are Somalia and North Korea. iii. India ranked 95th position, which is worse than china but better than Pakistan. (a) i & iii only (b) i & ii only (c) iii only (d) i ii & iii 41. Which of the following is/are correct regarding Ivory Coast presidential election? i. Laurent Gbagbo has lost the election but refused to step down.
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ii. Outtara was recognized as new president by the international community. iii. After the intervention of French peace keeping forces, Gbagbo was arrested and handed over to international criminal court. (a) i & ii only (b) i,ii & iii (c) i & iii only (d) None of the above 42. Who was awarded Homi Bhabha lifetime achievement award 2010 recently? (a) Baldev raj (b) Kasthurirangan (c) Saravat (d) Dineash mohanty 43. Which of the following book won guardian first book award recently? (a) Emperor of all maladies (b) A great and distinct humour (c) The legitimate argument (d) Decision points 44. Regarding MGNREGS consider the following statements: 1. National Advisory Committee (NAC) wants the scheme to move from its relief work
38. Which is the Russian naval base in Syria? (a) Tartus port (b) Baniyas port (c) Latakia port (d) Aleppo port 39. Read the statements about BRICS: 1. The leaders of the BRIC countries held their first summit in Yekaterinburg, and issued a declaration calling for the establishment of an equitable, democratic and multipolar world order. 2. Goldman Sachs has argued that, since the four BRIC countries are developing rapidly, by 2050 their combined economies could eclipse the combined economies of the current richest countries of the world. 3. The fourth meeting of the BRICS now going to held in Delhi India.
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for the impeachment of VicePresident. Select the correct option: (a) Assertion & Reason both are true & reason explains assertion. (b) Assertion & Reason both are true & reason does not explain assertion. (c) Assertion is true but Reason is false. (d) Assertion & Reason both are false. 47. In the field of Space, the acronym TMT stands for (a) Telescope (b) Asteroid (c) Fuel used in shuttle (d) Satellite to monitor carbon dioxide in environment by NASA. 48. Comptroller and Auditor General (CAG) of India recently being in news for identifying the
misappropriation of public money in the case of 2G and CWG. Identify the correct statement about CAG 1. Comptroller and Auditor General of India has been appointed as external auditor of two UN organization-IAEA and UNESCO. 2. Comptroller and Auditor General of India is governed by 1971 Audits Act. Which of the statement given above is/are correct? (a) 1 only (c) Both 1 and 2 (d) Neither 1 and 2 49. With the reference to space programme of India, consider the following statements: 1. Department of Space is headed by Prime Minister of India with chairman of ISRO as its secretary. 2. Bhoosampda is a information portal of ISRO. (b) 2 only
3.
India is using engine of Geosynchronous Satellite Launch Vehicle for ambitious Inter Continental Ballistic Missile Identify the correct statement: (a) 1 and 2 (c) 1 and 3 (b) 2 and 3 (d) 1,2 and 3
50. Consider the following statements about Rabindranath Tagore: 1. He composed a number of patriotic songs during the swadeshi Movement. 2. He returned his knighthood to condemn the brutal killing of innocent people at jallianwala bagh. Which of the following statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 and 2
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1. (d) 2. (d) 3. (a) 4. (c) Expl: Only those animals that produced high levels of envelope antibodies (in response to the Env antigen in the vaccine) remained free of infection. So critical was the inclusion of the Env antigen that the protection conferred was extended even to the virus that differed from the vaccine strain. 5. (b) Expl: At present there is no policy to allow foreign airlines to invest in domestic airlines. But there is a proposal to allow foreign airlines in domestic market upto 49% in the cabinet. 6. (a) 7. (d) 8. (a) Expl: the bill will help improve efficiency and increase accountability of the corporate sector rather than regulating it. 9. (b) Expl: IPv6 (Internet Protocol version 6) is a version of the Internet Protocol (IP) intended to succeed IPv4, which is the protocol currently used to direct almost all Internet traffic. The Internet operates by transferring data between hosts in packets that are routed across networks as specified by routing protocols. These packets require an addressing scheme, such as IPv4 or IPv6, to specify their source and destination addresses. Each host, computer or other device on the Internet requires an IP address in order to communicate. The growth of the Internet has created a need for more addresses than are possible with IPv4. IPv6 also provides for improved quality and new applications like IP TV, telephony and ecommerce. The pilot project aims at identifying major challenges in IPV6 adoption, developing solutions to meet these challenges and actively promoting IPV6 adoption 10. (a) 11. (b) 12. (d) Expl :1) china is willing for negotiations with concerned countries but condemned for outside forces involving in this dispute 2) china signed that declaration with ASEAN countries to increase practical cooperation. 13. (c) Expl : both the reasons were cited by the Chinese embassy for the postponement. It also mentioned that no countries should provide any platform for Dalai Lama to carry out anti-Chinese activities. 14. (c) 15. (a) 16. (b) 17. (a) 18. (b) Expl : 243D&T provide for the one third reservation for woman in directly elected seats and also in chairman seats. 19. (b) Expl: Scientists have discovered what appears to be a body of liquid water as vast as the volume of the North American Great Lakes locked inside the icy shell of Jupiters moon Europa, suggesting a potential new habitat for life. 20. (c) 21. (c) Exp. In August 2001, the Norwegian government announced that the prize would be awarded beginning
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in 2002, the two-hundredth anniversary of Abels birth. 22. (a) Expl : in the last year, India was regarded as the diabetes capital but in the recent report china topped the list of more number of diabetes patients in a country. 23. (d) Exp. The Bahin Shanno Devi Panchayati Raj Award, named after the first woman Speaker in Haryana, would be given to those women panchayat leaders who have done outstanding work on women empowerment, female literacy, health, nutrition, universalization of education and environmental protection. 24. (b) Expl: iii) the decision was taken by the Julia Gillards government with the approval from the ruling labour party. Australia has now reversed its policy of banning uranium exports to non NPT countries on its own without NSG interference. 25. (b) 26. (c) Expl.: Google AdSense is a program run by Google Inc. that allows publishers in the Google Network of content sites to serve automatic text, image, video, and rich media adverts that are targeted to site content and audience. 27. (c) 28. (b) 29. (c) Expl.: If built, it would be the largest nuclear power generating station in the world by net electrical power rating. 30. (c) 31. (a) 32. (a) 33. (c) Exp. SABLA, a scheme for empowerment of adolescent girls includes a complete nutrition programme for adolescent girls in the age group of 11 to 18 years. 34. (b) Expl : dragon capsule is the first private spacecraft launched by US based space X company to dock with ISS recently. The private players are allowed to participate because of the retirement of all the space flights. 35. (a) 36. (a) 37. (c) Expl: SCO has six full members China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, four observer states India, Iran, Mongolia and Pakistan, and two dialogue partners Belarus and Sri Lanka. 38. (a) Expl: it is the only Russian naval base in east Mediterranean Sea. It conducted naval exercise recently to show solidarity with long time ally Syria. 39. (d) 40. (d)
expl : TIs Corruption Perceptions Index scores 183 countries and territories from zero (highly corrupt) to 10 (very clean) based on data from 17 surveys that look at factors such as enforcement of anticorruption laws, access to information and conflicts of interest. Two-thirds of ranked countries scored less than five. Transparency International is a global body leading the fight against corruption. New Zealand scored 9.5 compared while Australia achieved 8.8 this year. North Korea and Somalia both scored just one point and ranked at the end of the scale. China was ranked 75th in the world with a score of 3.6, while its number-two trading destination Japan was 14th with a score of 8.0.India was ranked 95th on the list - worse than China, but better than Pakistan thats ranked way below at 134th. 41. (b) Expl: Ivory Coasts Laurent Gbagbo has become the first former head of state to appear at the International Criminal Court in The Hague. He faces four charges of crimes against humanity, including murder and rape, in the wake of Ivory Coasts disputed presidential elections a year ago. Some 3,000 people were killed in violence after Mr Gbagbo refused to accept defeat in the 2010 polls. He was not asked to plead but has denied responsibility for the violence. 42. (a) Expl : Former director, Indira Gandhi Centre for Atomic Research (IGCAR), Baldev Raj has been presented the INS Homi Bhabha Lifetime Achievement award. 43. (a) Expl : Indian-born American physician Siddhartha Mukherjees Pulitzer-winning biography of cancer, The Emperor of All Maladies, has won the 10,000 prestigious Guardian First Book award beating four formidable contenders, including Amy Waldmans acclaimed The Submission. Guardian First Book Award, issued before 1999 as Guardian Fiction Prize or Guardian Fiction Award, is awarded to new writing in fiction and non-fiction and is given by The Guardian newspaper. 44. (c) Exp. The National Advisory Council (NAC)
of India is an advisory body set up to monitor the implementation of the UPA governments manifesto, the Common Minimum Programme(CMP). It is a brainchild of Congress party president, Sonia Gandhi. It is also informally called as UPAs Planning Commission for social agenda. NAC is also called as Shadow Cabinet. On 23 March 2006, Sonia Gandhi had resigned from the post of chairmanship of the NAC after Office of profit controversy. On 29 March 2010, she was back as the chairperson of NAC. 45. (d) Explanation: Constitutional provisions of Representation of People Act, 1951, also provide certain grounds of disqualification for Member of Rajya Sabha. For example Person convicted for promoting enmity between different groups; Person convicted for the offence of bribery; and others. 46. (d) Explanation: Impeachment is a legislative act that is why it is formal. An impeachment is not required for Vice Presidents removal. He may be removed by a resolution of the council of states passed by a majority of its members & agreed to by the House of People. 47. (a) Exp. The Thirty Metre Telescope (TMT) is a proposed groundbased large segmented mirror reflecting telescope to be built on Mauna Kea in Hawaii. The telescope is designed for observations from the near-ultraviolet to the mid-infrared (0.31 to 28 m). An adaptive optics system would correct for image blur caused by the atmosphere of the Earth. At wavelengths longer than 0.8 m, this correction would enable observations with ten times the spatial resolution of the Hubble Space Telescope. TMT would be more sensitive than existing ground-based telescopes by factors of 10 (natural seeing mode) to 100 (adaptive optics mode). If completed on schedule, TMT would be the first of the new generation of Extremely Large Telescopes. 48. (b) Exp. CAG is the external auditor of IAEA and WIPO 49. (a) Exp. DRDO is using engine of PSLV for its upcoming ICBM. 50. (c)
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(c) Spaceship basic fundamentals remains more or less the same though there is always some technical fine tunings going on (d) Spaceship involves a lot of scientific details 3. Dawn flies very, very slowly or at least it accelerates that way. But that very pokiness is part of its genius. What does the word genius here is used for? (a) For sheer smartness (b) For Innovation (c) For disruptive innovation (d) For Creativity 4. When the Delta rocket that blasted Dawn into space and then out of Earth orbit was spent and discarded, the craft was moving at an impressive 25,000 mph (40,000 k/h) clip fast, certainly, but more speed still would be needed to get the ship out to the asteroid belt, into orbit around Vesta, then out of orbit and onto Ceres. All that flying and maneuvering takes a lot of fuel, which can add weight and drive up mission costs. Author intends to emphasize here that
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(a) The fast movement for spaceship is important so that it covers more astronomical distanced in the shortest possible time (b) Keeping the weight of the whole craft light so that per unit thrust required is lessened. (c) Speed is always taken as the most impressive feature of spaceship/spacecraft. (d) Escape velocity of the earth becomes the most important factor for designing spaceship. 5. The key to that was ion propulsion technology, which is just as cool as it sounds. Here author uses the term cool for two things. What are they? (a) Smartness and emphatic design (b) Chick and technically dexterous (c) Smart and not normal (d) Smart and majestic 6. What does author intends to her readers to believe when she says that Still, even such constant thrusting adds only 15 mph (24 k/h) per day, or zero to 60 in four days, not exactly flooring it. Over the course of 67 days, however, that adds up to an additional 1,000 mph? (a) He is impressed with the thrust (b) He describes low about the slow speed and thrust generated. (c) He is satisfied with the thrust generated considering all the positives that comes with this technology. (d) Either A or C 7. Ishu had a well shuffled pack of 52 cards. One day, Rishu borrowed the cards from Ishu and when Rishu returned the cards he stole 4 cards from it. When Ishu got the returned cards he picked up a card from the stack, what is the probability that
the card is a king of Hearts? (a) 1/52 (c) 1/13 (b) 1/48 (d) None of the above
finish point. The speed time graph of the race is shown below:
8. A minimum of how many persons should be there in a hall so as to confirm that there are at least two persons born on the same date? (a) 183 (c) 367 (b) 366 (d) 730
9. Three boys Arjun, Krishna and Balram compete in a cycle race on a circular race track. Arjun was 15 m ahead of Krishna at the end of the race. Balram completed the race in 16 minutes and 40 seconds. The length of the race was 2 km. Balram won the race by 20 seconds. What is the approximate average speed of Krishna? (a) 7.3 km/hr (c) 6.8 km/hr (b) 7 km/hr (d) 6.5 km/hr
Answer the questions based on the graph. 13. Who won the race? (a) Amar (c) Anthony (d) All ended at the same time 14. Who ran at a constant speed? (a) Amar (c) Anthony (d) No one 15. Which of the following statements is correct? (i) Amar, Akbar and Anthony ran at same average speed. (ii) Amar, Akbar and Anthony completed the race at the same time. (iii)Amar, Akbar and Anthony had the same speed at the end of the race. (a) Only I (c) Only III (b) Only II (d) I, II and III (b) Akbar (b) Akbar
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10. If x = 1, then which of the following has the largest value? (a) 1/x (c) 1/x
2
(b) 2 (d) 2
1/x x
11. If a/(a+b)= b/(b+c)=c/(c+a)=k, then k cannot take any value except ___? (a) 1/2 or 1 (c) 1/2 or 1 (b) 1 (d) 1/2
12. A painter charges painting walls on per metre square basis. He charges Rs 10 per metre square. How much will he charge to paint a room of length 4m, breadth 5m and height 3 m except the floor? (a) Rs 740 (c) Rs 790 Directions for three (13-15) given below: (b) Rs 940 (d) Rs 820 questions
Directions for the following 6 (six) items: Read the following passage and incur the best possible answer for the question that follows it: Passage (Q.16-21) The Tata Nano, the worlds cheapest car, became a symbol before the first one rolled off the production line in 2009. The Tata group, Indias most revered conglomerate, hyped it as the embodiment of a revolution.
Amar, Akbar and Anthony were three friends. One day they argued about the fastest runner among them. So they decided to race amongst each other. All the three ran the race and the race ended as the first person reaches the
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Frugal innovation would put consumer products, of which a $2,000 car was merely a foretaste, within reach of ordinary Indians and Chinese. Asian engineers would reimagine Western products with all the unnecessary frills stripped out. The cost savings would be so huge that frugal ideas would conquer the world. The Nano would herald Indias arrival just as the Toyota once heralded Japans. Alas, the miracle car was dogged with problems from the first. Protesting farmers forced Tata Motors to move production out of one Indian state and into another. Early sales failed to catch fire, but some of the cars did, literally. Rural customers showed little desire to shift from trucks to cars. The Nanos failure to live up to the hype raises a bigger question. Is frugal innovation being oversold? Can Western companies relax? Two new booksReverse Innovation by Vijay Govindarajan and Chris Trimble, and Jugaad Innovation by Navi Radjou, Jaideep Prabhu and Simone Ahujasuggest that the answer to both questions is No. Mr Govindarajan, of the Tuck Business School at Dartmouth College, has advised General Electric on frugal innovation and co-written a pathbreaking article on the subject with GEs boss, Jeff Immelt. Jugaad Innovation is the most comprehensive book yet to appear on the subject (jugaad is a Hindi word meaning a clever improvisation). The books show that frugal innovation is flourishing across the emerging world, despite the gurus failure to agree on a term to describe it. They also argue convincingly that it will change rich countries, too. Multinationals are beginning to take ideas developed in (and for) the emerging world and deploy them in the West. Harman, an American company that makes infotainment systems for cars, developed a new system for emerging markets, dubbed Saras, the Sanskrit word for flexible, using a simpler design and Indian and Chinese
engineers. In 2009 Harman enrolled Toyota as a customer. GEs Vscan, a portable ultrasound device that allows doctors to see inside patients, was developed in China and is now a hit in rich and poor countries alike. (Mr Immelt believes that these devices will become as indispensable as stethoscopes.) Walmart, which created small mart stores to compete in Argentina, Brazil and Mexico, is reimporting the idea to the United States. The standard worry among Western firms is that this strategy will cannibalise the existing market for expensive technology. Why buy a $10,000 device if the same firm makes a slightly simpler one for $1,000? This is too pessimistic. GE opened up a new market among doctors for its cheap electrocardiograms; previously only hospitals could afford the things. Besides, standing still is not an option. Whether or not Western firms sell frugal products in the West, Asian firms will. Indias Mahindra & Mahindra sells lots of small tractors to American hobby farmers, filling John Deere with fear. Chinas Haier has undercut Western competitors in a wide range of products, from air conditioners and washing machines to wine coolers. Haier sold a wine cooler for half the price of the industry leader. Within two years, it had grabbed 60% of the American market. Some Western companies are turning to emerging markets first to develop their products. Diagnostics for All, a Massachusettsbased start-up that has developed paper-based diagnostic tests the size of a postage stamp, chose to commercialise its idea in the developing world so as to circumvent Americas hideously slow approval process for medical devices. Entrepreneurs everywhere are seizing on the idea of radical cost-cutting. Zack Rosenburg and Liz McCartney are rethinking house-building from the ground up; they hope to reduce the cost by 15% and the construction time by 30%. Vivian Fonseca collaborated in the development of a system for sending SMS messages to poor and elderly diabetics
to help them control their disease. Jane Chen, the boss of Embrace, sells low-cost infant warmers for premature babies in America and several emerging markets. This trend will surely accelerate. The West is doomed to a long period of austerity, as the middle class is squeezed and governments curb spending. Some 50m Americans lack medical insurance; 60m lack regular bank accounts. Such people are crying out for new ways to save money. A growing number of Western universities are taking the frugal message to heart (at least when it comes to thinking about things other than their own tuition fees). Santa Clara University has a Frugal Innovation Lab. Stanford University has an (unfrugally named) Entrepreneurial Design for Extreme Affordability programme. Cambridge University has an Inclusive Design programme. Even the Obama administration has an Office of Social Innovation and Civic Participation to encourage grassroots entrepreneurs in health care and energy. Globalisation is forcing Western firms to provide more value for money. Logitech, an American firm, had to create a topclass wireless mouse for bottom-of-therange prices when it took on Rapoo, a Chinese company, in China. John Deere had to do the same with its small tractors when it took on Mahindra in India. At the same time, globalisation gives Western firms more tools. Some are building innovation centres in the emerging world. PepsiCo, for example, established one in India in 2010. Some Western firms routinely fish in a global brain pool. Renault-Nissan asked its engineers in France, India and Japan to compete to come up with ideas for cutting costs. The Indians won. The Tata Nano may not have changed the world, but frugal innovation will. 16. What is the central theme of the passage? (a) Frugal Innovation is like a storm that intends to take the whole world unto itself. (b) Frugal innovation will eat the more expensive technology
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developed in the West. (c) Frugal innovation will be mastered by the developing nations and its engineers. (d) All of the above 17. The whole concept of frugal innovation became streamlined with the Tata coming up with its below $2000 car Nano and its success. The aforesaid statement in the light of the passage is (a) Correct (c) Partially Correct (d) None of the above 18. What is Saras? (a) An incubator for frugal technological innovation (b) An Indian start up (c) A venture fund for frugal technologist (d) An automotive entertainment device (b) Incorrect
21. Who could be the most probable writer for this write-up (a) An economist from a developing economy (b) An economist from a developed economy (c) A industrialist involved with frugal innovation (d) An economist
Directions for three questions (2224) given below: A television manufacturer manufactures four types of TVs viz, CRT, LCD, LED and Plasma. All the TVs manufactured are sold. The company started in 2008. The units of each type produced in the given years is shown in the chart given below. Answer the questions based on the chart given above.
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19. At the same time, globalisation gives Western firms more tools. Here tools is intended for (a) For making in-roads into the frugal innovations that has come up from the emerging economies (b) For being self sufficient (c) For making newer technical collaborations with the emerging economies (d) For increased competitions and predatory hunting by the MNCs pouncing upon the companies from the developing nations 20. Maturing demography of the Western world will impact frugal innovation in what manner (a) It will assist it (b) It will make it more difficult to make its inroutes into the developed economies (c) It will kill frugal innovation (d) It will subsume technology frugal 22. What is the percentage increase in the TV production capacity of the company from 2008 to 2011? (a) 62.5% (c) 262.5% (b) 162.5% (d) None of these 25. A person goes from A to B adopting the shortest route along the lines (each line, horizontal or vertical, is equal in length). How many different such routes can he adopt? A
23. Which TV registered the maximum growth in the production for the given period? (a) CRT (c) LED (b) LCD (d) Plasma
24. Which of the following statements is incorrect? (a) CRT TV registered the least growth in production for the entire period. (b) The production of all the TVs registered a growth every year. (c) In 2011, LCD TV registered the highest growth in production by the company. Plasma TV is the least selling TV of the company.
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(a) 15 (c) 21
Directions for three questions (3133) that follow: Six friends A, B, C, D, E and F decide to climb Mount Everest. They decided to make two groups East and West each having three members. Each group will be climbing by a person leading and a person in middle followed by the third all of which are tied through a rope. The following additional information is given.
l
and at a high price. Yesterdays catch must be discounted and may not sell at all. This simple insight has made Inditex one of the worlds two biggest clothes makers. (The other, H&M Hennes & Mauritz of Sweden, is about the same size.) From its base near the Spanish fishing port of La Corua, Inditexs main brand, Zara, has conquered Europe. The Inditex model, celebrated in many a case study, goes like this. Other fashion firms have their clothes made in China. This is cheap, but managing a long supply chain is hard. By the time a boat has sailed halfway round the world, hemlines may have risen an inch and its cargo will be as popular as geriatric haddock. Inditex, by contrast, sources just over half of its products from Spain, Portugal and Morocco. This costs more. But because its supply chain is short, Inditex can react quickly to new trends. Instead of betting on tomorrows hot look, Zara can wait to see what customers are actually buyingand make that. While others are stuck with unwanted stock, Inditex sells at full prices. Sales have quadrupled to 13.8 billion ($19.1 billion) since the firms initial public offering in 2001. Inditexs operating profits are high and have been more stable over time than its peers. The firm now faces two challenges. Can it go global? And will its fast-fashion model be copied, or bettered, by others? For now, Inditex is dependent on Europe: 70% of its sales in 2011 were there. Sales in Spain, which accounted for 25% of revenue, have stalled. Europe is stagnant and ageing. Inditex needs new markets. Pablo Isla, who took over as chairman from Mr Ortega last summer, has big plans. Going into China is like beginning again in Europe for us, he says. Announcing its annual results on March 21st, Inditex said it opened 179 new stores in Asia in 2011, 156 of them in China. A global brand needs a prominent
A colony in Mumbai gets affected by mosquitoes due to poor maintenance works by BMC. After a certain time due to several complains and reports of malaria, the BMC comes into action and sprays disinfectants and insecticides to prevent mosquito breeding. The following graph shows the number of mosquitoes wrt days passed. Various regions of the graph mark different stages denoted by A, B, C, D, etc.
C leads a group in which E is not there. B is behind A who is not leading the group. F is in the East group but is not leading the group.
31. Who is in the middle position of West group? (a) A (c) E (a) E Now based on the above given information and graph answer the following questions: 27. Which region(s) of the graph shows proper regular maintenance works by BMC? (a) Only A (b) Only B (c) Only G (d) Both A and G 28. Which region saturation level of mosquitoes in the colony? (a) Only B (c) Only E (b) Only D (d) Only F (c) C (b) D (d) Data insufficient (b) D (d) Data insufficient
33. Which can be the correct pair having the same position in their respective groups? (a) CF (c) FE (b) BA (d) CE
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34. Two electric poles of height 12 m and 15 m are at some distance to each other. The distance between the top of the two poles is 34 m, what is the distance between the top of the shorter pole to the bottom of the longer pole? (a) 5 m (c) 13 m (b) 12 m (d) 15 m
29. Which region shows the effective relief after the BMC came into action? (a) C (b) D (c) E (d) F 30. A fruit vendor buys 4 dozen bananas, 6 kg apples and 5 kg oranges for Rs 300. He sells the bananas at Rs 25 per dozen, the apples at Rs 35 per kg. At what price should he sell the oranges to gain 20% on the whole transaction? (a) Rs 5 (c) Rs 10 (b) Rs 8 (d) Rs 12
Directions for the following 8 (eight) items: Conceptualize the Following passage, and then attempt to answer the questions that follow. Passage (35-42 ) Flogging fashion is like selling fish, as Amancio Ortega, the founder of Inditex, likes to say. Fresh fish, like a freshly cut jacket in the latest colour, sells quickly
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shop window. On March 15th Inditex opened a huge outlet on Fifth Avenue in Manhattan, having bought the store for $324m last year. (Even after adjusting for inflation, that is more than the Louisiana Purchase of 1803, in which America bought all or part of 15 states.) The aim is not merely to sell to New Yorkers, but to convince shoppers everywhere that Zara is hip. Inditexs formula has not worked everywhere. Zara has struggled in America, for instance. It sells trendy cuts and slim fits. Outside the biggest cities, Americans have long preferred classic, roomier clothes (though this may be changing). Chinese office ladies like Zaras slim fits more, says Fraser Ramzan of Nomura, a bank. Iria Campos, a Zara designer, says Chinese women choose pastels to flatter their pale skin rather than the stronger colours Europeans prefer; but otherwise they have surprisingly similar tastes. Still, China will not be easy. Zaras clothes are far pricier than local rivals, whereas in Europe they are relatively cheap. And because of the distance from La Corua, Zara must charge more in absolute terms as well. So it has to convince Chinese shoppers that it is luxurious enough to justify the price tag. Its Chinese stores are packed, but its success is more fragile in China than in Europe, says Luca Solca of CA Cheuvreux Research in Paris. It must watch the quality of its products. And expect hurdles. Last year Chinas consumer watchdog attacked Zara for poor quality. The firm denies that it was singled out for political reasons. But the Chinese government typically targets foreign firms first. Last week McDonalds and Carrefour were pilloried for minor lapses. At some point, Inditex may have to adapt its business model for Asia. As its Chinese sales grow, it will make sense to have both logistics and design in China, says Mr Solca. Last year rumours flew that Inditex might buy Giordano, a Hong Kong-based version of Gap, an American clothes chain. Both companies denied it.
Inditex currently has a dozen or so designers in Shanghai and around 250 at home in La Corua. That will surely change. Creatively, Europe is rather dead, says Jos Luis Pavia Cervera, a former executive at Inditex who now works for C&A, a mid-market retailer. In the future, China will set the trends, he reckons. Several of Inditexs rivals are struggling. In February the Benetton family moved to de-list their fashion group to revamp its business model. Benetton went international in the 1980s but overexpanded and lost direction. Its shocking ads (the Pope kissing an imam, etc) no longer thrill. Americas Gap, another retailer with global ambitions, is ailing. Both brands have lost market share to Inditex and H&M. The genius of Mr Ortegas model, says a former Inditex executive, is that it picks up on every seasons trends and is never associated with any one style, which could fall out of fashion. Alone among its peers, it does not advertise. Instead, it relies on chic locations and shop-window displays. Rivals, however, argue that Zara is in fact associated with something: a gilded age of throwaway fashion. Now that tight belts are in, women may hesitate to buy a top and wear it only twice. Inditex is trying to develop new brands. Bershka, the most successful, was launched in 1998 and has sales of 1.3 billion. But the firm remains dependent on Zara, which generated 65% of sales in 2011. The change at the top appears to have gone smoothly. Mr Isla was Mr Ortegas deputy and hand-picked successor. The 75-year-old Mr Ortega remains powerful, however: he still owns 59% of Inditex. He started work in a clothing shop in La Corua at 13, and has always directed the design, manufacturing and selling side of the business, while delegating other parts, such as finance and IT. The firm has developed a schism between the product side and finance, according to Zara and Her Sisters, a recent book by Enrique Bada.
Mr Islas background is different. A lawyer, he was chairman of Altadis, a tobacco group, before joining Inditex in 2005. Even now that he is the boss, says a former colleague, Mr Isla has little to do with the product side of the business. Mr Ortega is still in charge of that, apparently. Insiders praise Mr Isla. He has curbed costs. During 2010-11 the firm rolled out a global online-commerce platform for Zara. Were it not for Mr Isla, Inditex would probably not have broken with its bricks-and- mortar tradition so boldly. The company does not release figures, but the online store is said to be thriving. Nevertheless, insiders worry about the day Mr Ortega really retires. Inditex will need a new muse, some say. Mr Isla retorts that product teams make product decisions, and that Mr Ortegas handover of the chairmanship represented the complete professionalisation of the company. Why has no one copied Inditexs business model? One executive at Gap is said to have answered: I would love to organise our business like Inditex, but I would have to knock the company down and rebuild it from scratch. The gulf between Inditex and its rivals is bound to shrink, however. Isabel Cavill of Planet Retail, a consultancy, notes that retailers such as Gap and George, a brand owned by Britains Asda, are seeking to move production away from Asia and closer to home. As Benetton addresses its problems, it will adopt elements of Inditexs model, such as the way it frequently updates its collections, says an executive close to the company. Plenty of competitors are poaching the Spanish firms people to learn its secrets. My main task at C&A is to replicate Inditexs obsessive focus on its products and its shops, says Mr Pavia, who has hired people from Inditex to help him. Nothing lasts forever in the world of fashion. Fortunes, like hemlines, can go down as well as up. 35. Why does the author uses the word simple when he says that this
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simple insight has made Inditex one of the worlds two biggest clothes makers? (a) It is so lucid yet so difficult (b) The insight is so simple but so meaningful (c) The simile of the fashion industry with the fish industry is so simple but so central to the theme of the fashion as a concept (d) Could be any of the two B or C 36. Other fashion firms have their clothes made in China. This is cheap, but managing a long supply chain is hard. Which two sides of the cost incurred by the fashion industry does the author talks about here? (a) The less turnover time and the logistical chain (b) The design and the freshness (c) The fashion conscious people and the production cost (d) Could be both A and B 37. Why Inditex needs new market? (a) Dying market of Western world (b) Economic recession in Western world (c) Demography shift Western World in the
(b) The fashion industry and brands are slowly dying in Europe (c) Europeans are ill equipped for creatively adding anything to the fashion market (d) The workforce needed for the fashion industry is not available in the Western world as of now 40. The firm has developed a schism between the product side and finance, according to Zara and Her Sisters, a recent book by Enrique Bada. Why does the author of the described book uses sisters even though the main characters in the book are males (a) To show that fight is always a girlie thing (b) To emphasize on the fact that division happens only where girls are working as owners (c) To thrust upon the fact that fashion industry as a whole is still a woman based industry as far as its producer and consumer is concerned (d) Uses it just to make the book more saleable 41. Any person can make things happen, it is just that she must try his luck with a belief in her labour. In the saying the grammar is diluted to maintain the (a) Gender respect (b) Gender Neutrality (c) Gender Awareness (d) Gender sensitivity 42. In the present day, the puritanical definition of language is being blurred in the domain of SMSs and mobile text. Here puritanical are ascribed to what class of people (a) Pure in their usage (b) Grammarian (c) Linguist (d) Could be either B or C 43. Three men Azam, Biju and Chintu invested Rs 4000, Rs 5000 and Rs
7000 in a joint partnership business for a year. After a year, they got a profit of Rs 80000. If they decide to divide the amount on the basis of their shares of investment, then what amount will Biju receive? (a) Rs 20000 (b) Rs 25000 (c) Rs 30000 (d) None of these 44. In an exam of 100 marks, the average mark of a class of 35 students is 70. If the top 5 scorers of the class are removed, the average score falls down by 4. If the other four toppers except the highest topper scored less than 94, then what is the least high score the topper can score? (a) 100 (c) 98 (b) 99 (d) 95
Directions for three questions (4547) that follows: The following pie chart shows the sales of various types of cars in 2009 and 2010 in Ajibgarh area of Pagalpur.
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(d) Volatile market and increased competition of the Western world 38. What is the general trend of the fashion brands of repute according to the write-up (a) It is growing (b) Showing stagnancy (c) It is in deep constraints (d) It is slowly retarding 39. That will surely change. Creatively, Europe is rather dead. What does the author intends by this (a) The fashion industry is not meant for older European people
Now answer the questions based on the data given: 45. How many sedan cars were sold in both the years combined? (a) 7960 (c) 9360 (b) 8610 (d) 8450
46. How many types of cars saw a decrease in number of cars sold in 2010 wrt the previous year? (a) 0 (c) 2 (b) 1 (d) 3
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47. What is the percentage difference in the number of cars sold in 2010 by the maximum selling car of 2009?
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(d) Car C is at rest in the given graph. 50. Which statement among following is incorrect? the
systemic interest rates remain stable, the officials said. India is experiencing a bout of cash tightness that started in mid-November. The call rate has mostly remained close to the repo rate of 8.50 percent, except for a few days in January, and thats key reason for the RBI to not step up its liquidity infusion steps. The cash deficit is currently around 1.6 trillion rupees ($32.5 billion). Banks expect it to rise to 2 trillion rupees in mid-March, with the bulk of the increase stemming from companies pulling cash from banks to make tax payments. The RBI prefers to maintain a cash deficit position, for making monetary policy effective. It has said its comfort zone for the deficit is around 600 billion rupees. Still, the current, severe credit crunch -- which has kept the deficit more than double 600 billion rupees -- has not made overnight rates shoot up, mainly because of the availability of funds from the RBIs repo borrowing window, the officials said. The comfort zone is only an indicative one, said a senior RBI official. We dont need to get unduly disturbed as long as call rates do not shoot up, government bond yields and auctions do not show signs of stress. 52. The tone of the passage is (a) Descriptive (b) Factual (c) Analytic (d) Explanatory 53. RBI has not felt pressurized to cut the CRR i.e. to infuse liquidity into the system because (a) The call rate has remained very near to repo rate (b) The call rate has remained very high (c) The call rate has remained very low (d) The call rate has maintained in sync with the reverse repo rate 54. Repo rate is currently running at (a) 5.5% (c) 6.5% (b) 8.5% (d) 6%
48. Two pipes A and B fill a completely empty 10000 litres tank in 4 hrs and 5 hrs respectively. There is a leak in tank which allows the water to leak at 200 litres per hr. At 10 AM, if in the half filled tank, pipe A is opened for first half an hour, then second pipe is opened and first is closed for the next half an hour, and it is repeated every half an hour, then at what time approx. will the tank be completely filled for the first time? (a) 11 AM (b) 11:12 AM (c) 11:26 AM (d) 11:40 AM Directions for two questions (49-50) that follow: The figure below shows a snapshot of a race between three cars A, B and C. The graph does not show the statistics of the entire race, it can be the graph of race in somewhere between the race. Consider the following distance time graph:
(a) Car A is moving with maximum speed. (b) Car C was ahead at first but was last at the end of the graph. (c) Car B is moving with a speed greater than C but lesser than A. (d) The acceleration of car A is constant. 51. A train route has 20 stations including the starting and terminating stations. If each station has tickets for all of the other 19 stations then a total of how many types of tickets can be issued? (a) 19 (c) 19! (b) 380 (d) 1920
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Directions for the following 8 (eight) items: Read each of the following two passages and answer the items that follow. Your answers to these items should be based on the passages only. Passage-1 ( 52-56) The time for Indian companies to pay tax is near, and that could mean accentuated cash tightness which pushes up overnight interest rates and spurs the Reserve Bank of India to cut banks cash reserve ratio in March. The last cut in the cash reserve ratio (CRR) was in January, by 50 basis points to 5.5 percent.
Answer the question based on the information given above: 49. Which statement among following is correct? the
(a) Car C is moving with constant speed. (b) Car C is moving constant acceleration. (c) Car C has covered the maximum distance in least time.
Overnight interbank rates rising to close to double digits and banks dipping into a special liquidity window to borrow at higher rates for a week or two would be decisive factors that could prompt RBI to cut the CRR again, four RBI officials said. A CRR cut might still leave the cash deficit -- the shortfall among banks to fund their loan book -- above the RBIs comfort level. However, central bank officials wont lose sleep as long as
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55. According to the passage, RBI is comfortable with cash deficit of more than double its comfort limit because (a) Reverse rap rate has been kept low making the RBI to take money from bank at very low arte thus incentivizing them to give it to the market (b) The system has a window of opportunity through the means of repo rate (c) The CRR has been cut thus infusing liquidity into the system (d) Still there is room for cutting CRR by 50 basis points 56. The scenario of cash deficit will worsen in the coming months due to annual closing (a) True (c) Speculative Passage-2 ( 57-60) In the early 2000s it looked a safe bet that the turboprop was on its way out, as far as airlines were concerned. Planes with jet engines were faster, more comfortable and somehow more modern-looking than ones with whirly things on the wings. Embraer, Brazils aircraftmaker, stopped making its EMB120 Braslia and went over entirely to producing jets. But now, even as regional airlines continue to phase out their older turboprops, a new generation of planes with propellers is taking off. ATR, a European maker of turboprops that is jointly owned by Airbuss parent EADS and Finmeccanica of Italy, had a record year last year, winning firm orders for 157 planes and options for a further 79. Like Airbus and Boeing it now has an order book stretching years ahead. And like the bigger planemakers it is ramping up its output to meet the demand: in 2005, the turboprops darkest hour, ATR made just 15 of them. Last year it made 53, this year it is aiming to make more than 70, and in 2014 it wants to turn out 85. (b) Partly True (d) False
ATRs big order from Kingfisher seems to have gone pear-shaped in recent weeks as the Indian airlines financial troubles have worsened. But this week the planemaker signed a big deal with Wings Air of Indonesia, which will eventually have a fleet of 60 ATR turboprops, of which 40 will be its latest model, the 72-600 , which seats up to 74. Bombardier of Canada also has a new, high-tech turboprop, the Q400. It struggled to win orders last year but has high hopes that 2012 will be much better: recently it said an undisclosed customer had ordered five of its new planes. It will battle ATR for a chunky 40-plane order that WestJet, a Canadian carrier, is planning to make soon, as it launches a new regional airline subsidiary. The Teal Group, an aviation consultancy, forecasts a market of around $2 billion a year for turboprops from now into the 2020sa nice little business, though still a fraction of the market for jets. As in most industries these days, it is important to ask: what about the Chinese? The answer, as usual, is that they are determined to get in the game. Xian Aircraft, a subsidiary of AVIC, the Chinese state aerospace giant, had a big presence at the Dubai air show in November, showing off its new MA600 turboprop, a 50-seat upgrade of its MA60 plane, as well as a 19-seater called the Aircar, aimed at corporate users, tour operators and the like. In December last year a bunch of orders from African airlines brought combined orders for the MA60 and MA600, including those already delivered, to over 200. Shuyu Zhai, an executive at Xian Aircraft, says its parent company has set it the target of overtaking its European and Canadian rivals to become the worlds number-one turboprop-maker by 2020. Aviation Weeks print edition recently reported that AVIC had set up an airline to operate MA60s, hoping that by doing so it would gain useful insights that would help it design the next generation of turboprops. An Indian government agency is also working on a
national turboprop. 57. What is EMB-Brasilia (a) A Turboprop (b) A Jetengine aircraft (c) Brazilian aircraft company (d) Brazilian airline 58. What does the writer wants to convey from the passage (a) That the time of the old fashioned turboprop is coming back (b) That the turboprop is more efficient in fuel economy as compared to its compatriot the jet engine (c) That the jet engine sales will decline (d) That the turboprop will be seen more in the sky 59. Airbus-the European Aircraft Company is an organization under (a) EADS (c) ATS (b) Finmeccannica (d) ATR
60. As in most industries these days, it is important to ask: what about the Chinese? What does the author wants to indicate by this statement (a) That Chinese are number one in aircraft industry (b) That China is a nation of new invention as far as the aircraft technology is concerned (c) That is has become a norm of a sort in asking this question considering the massive economy China is (d) Both A & C Direction for four questions (61-64) given below: Each of the following questions consists of a question followed by two statements A and B. Analyze the statements and mark: (a) If the question can be answered using one of the statements alone, but cannot be answered using the other statement alone.
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(b) If the question can be answered using either of the given statements alone. (c) If the question can be answered using both the statements together. (d) If the question cannot be answered even by using both the statements together. 61. Is x(<45) a prime number? (A) x leaves a remainder of 1 when divided by 6. (B) x is not divisible by 5. 62. How many single persons are there in a party of 200 adult people? (a) There are 60 couples in the party. (b) There are equal single men and women in the party, which constitute 40% of the total persons in the party. 63. How many pages are there in the book?
Sarees, 40% ladies wore Salwars and 45 wore other than these. Whereas, 60% of men wore Suits and a total of 240 men came to the party. What percent of the total persons in the party wore either Sarees or Suits? (a) 40% (c) 48.4% (b) 46.6% (d) 52.8%
(a) 3 (c) 5
(b) 4 (d) 6
Directions for three questions (7173) that follow: In a joint family there are three fathers and three mothers, one grandfather and a grandmother and eight children. There are a total of five male and eight female members. The Lawyer is the husband of the professor. The doctor couple has three children, none of which are married. The housewife has no children. The Bank manager is the only female child of their parents who live with them. The Accountant has two girl child. All the grandchildren are studying in school. On the basis of given information, answer the following questions: 71. How many male child does the doctor has? (a) 0 (b) 1 (c) 2 (d) Cannot be determined 72. How many children does the professor has? (a) 1 (b) 2 (c) 3 (d) Cannot be determined 73. If one male member is an Engineer, how many children does he have? (a) 0 (b) 1 (c) 2 (d) Cannot be determined 74. A teacher told the students to add the odd numbers starting from 1. She randomly asked a student to tell the sum and the student replied 1500, the teacher answered that the answer is incorrect and that he has missed a number. Which number did the student miss? (a) 1 (c) 17
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67. Armaan has 12 litres of pure milk. He adds 4 litres water to it and then takes out 4 litres out of the solution. He then replaces 2 litres of the solution with water and repeats the same procedure once again. What is the percentage of milk in the solution finally? (a) 75% (c) 52% (b) 66.6% (d) 47%
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(a) Amar can read this book in 6 hrs. (b) Amar reads half of the book in 4 hrs and remaining 400 pages in 2 hrs. 64. Ram and Shyam run a race. Who among them wins the race? (a) Ram ran at a constant speed of 4 km/hr. (b) The difference between Rams and Shyams speed is 1 km/hr. 65. Dharam invested a certain equal amount in two banks. The first one was offering 8% per annum Simple interest and the other one was offering 8% per annum compounded annually. After 3 years, Dharam withdrew the money and found that the difference in the amount came to be Rs 591.36, then what was the amount he invested in each of the banks? (a) 25000 (c) 30000 (b) 29000 (d) 32000
68. In a gear mechanism, there are three gears A, B and C, each of which are of different sizes. Gear A has 22 teeths and gear B has 55 teeths. When gear B completes 20 rotations then gear C completes 5 rotations, then how many teeths does gear C has? (a) 22 (c) 110 (b) 33 (d) 220
69. A student arranged his books on his bookshelf, one besides the other. His science book his 12th from the left and Maths book has 25 books to its right. There are 15 other books between the two books. How many books does he have? (a) 52 (b) 53 (c) 38 (d) Cannot be determined 70. Consider the figure given below:
(b) 15 (d) 21
75. If (4x 5) + (3y + 2)2 = 0, then what is the value of 12xy? (a) 10 (c) Data inadequate A minimum of how many colours are required to fill the figure, such that the adjacent blocks are not of same colour? (d) None of these 76. In how many ways 7 flowers can be put in 4 vases so that any vase (b) 20
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can accommodate any number of flowers? (a) 47 (c) 7P4 (b) 74 (d) 7C4
(c) B and D (d) A and D 78. Examine the following statements: (A) All men are brave. (B) Some men are not brave. (C) Some men are brave. (D) Men are not brave. (a) A and B (b) B and C (c) A and D (d) B and D 79. If a number when divided by 5 gives a remainder of 3 and when divided by 7 gives a remainder of 2, then what is the largest three digit number of that type? (a) 933 (c) 968 (b) 961 (d) 973
got promoted. The concern officer was very upright and honest. Denial of promotion has demoralised him. His senior officers will (a) Allot him additional important responsibility signalling thereby that he considers him better than anyone. (b) Take up his case with higher authorities an agitate that grave injustice has been done to him. (c) Call a meeting of the officials and praise him and convey to everyone that his contribution should be remembered. (d) Console him that he should not get upset and denial of promotion should be taken in the right spirit.
Directions for two questions that follows: Each of the following two questions consists of four statements. Of these four statements, both cannot be true, but both can be false. Study the statements carefully and identify the two that satisfy the above condition. Select the correct answer using the codes given below each set of statements: 77. Examine the following statements: (A) All machines are engines. (B) Some machines are not engines. (C) All engines are machine. (D) Machines are not engines. (a) A and B (b) B and C
80. A superintendent of police could not get promotion whereas entire batch
Answers
1. (b) 2. (c) 3. (c) 4. (b) 5. (c) 6. (c) 7. (b) Sol: The 4 stolen cards can be any of them. So, the probability that Ishu picked the King of Hearts = 1/(52 4)= 1/48 8. (c) Sol: There are 365 days in a normal year and 366 days in a leap year. So, if there are 366 people in a hall there are chances that all of them have different birth dates. So, there should be at least 367 people in a hall so as to confirm two people with same birth dates. 9. (b): Balram completed the race in 1000 secs. So, Balrams speed = 2m/sec. Arjun completed the race in 1020 secs. So, distance covered by Krishna in 1020 secs = 2000 15 = 1985 m. So, Krishnas speed = 1985/1020 m/sec = 7 km/hr approx. 10. (c) Sol: Option (a) 1/x= -1 Option (b) 2-1 = 0.5 Option (c) 1/(-1) =1
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23. (c) Sol: Clearly the chart shows that LED TV registered the highest growth for the entire period. % increase = 500% 24. (b) Sol: The production of CRT TV shows a decrease in 2011 and hence statement (b) is incorrect. 25. (c) Sol (c): No. of ways = 5!/(3! 2!) 26. (d) Sol: Sum of adjacent triangles inside the square is in the outer opposite triangle. So, sum of 7 + 12 = 19. So, 3 + ? = 26. So, ? = 23 27. (d) Sol: Both the regions A and G shows regular maintenance works by BMC as the mosquito levels are at constant minimum. 28. (c) Sol: Region E shows the maximum number of mosquitoes after which it didnt increase. Hence, that region can be called the saturation region. 29. (d) Sol: The region F shows a sudden decrease in the number of mosquitoes which can be considered an effective relief.
11. (d) Sol: For a/(a+b),b/(b+c),c/(c+a) to be equal, the value of a, b and c must be equal. So, for any value the value of k will always be . 12. (a) Sol: The area to be painted = (4 5) + 2(4 3) + 2(5 3) = 20 + 24 + 30 = 74 square metres. Total charge = Rs 740. 13. (a) Sol: Since the speed of Amar was maximum throughout the race. So, he won the race. 14. (d) Sol: All of them ran at varied speed as none of them ran at a same constant speed. 15. (c) Sol (c): Only statement III is correct as at the end of the race all of them were at the same speed. 16. (d) 17. (c) 18. (d) 19. (a) 20. (a) 21. (d) 22. (b) Sol: Total production in 2008 = 8000 Total production in 2011 = 21000 % change = (21000-8000)/8000100 = 162.5%
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30. (c) Sol: Total CP = Rs 300. Total SP so as to gain 20% = Rs 360 Total SP of bananas = Rs (25 4) = Rs 100 Total SP of apples = Rs (35 6) = Rs 210 Total SP of oranges= 360 (100 + 210) = Rs 50 So, price per kg of oranges = Rs 10 31. (d) 32. (c) 33. (d) Solutions to questions 31 to 33: The arrangement is: East group : C followed by A followed by B West group : D/E leads the group. Others positions cannot be determined. The group members are D, E and F. 31. The position cannot be determined. 32. C is leading the East group. 33. Since F cannot lead his group but C is leading his group hence CF cannot be correct. Options (b) and (c) cannot be true as both are of same group. Option (d) can only be true.
2450 1980 = 470. For the least high score, we consider that the other 4 toppers scored 93. So, Marks scored by the highest scoring topper = 470 (93*4) = 98. 45. (b) Sol (b): Total sedan cars = 25% of 15000 + 27% 0f 18000 = 3750 + 4860 = 8610 46. (b) Sol: Clearly the Hatchback, Sedan and others increase in sales as their share of sales is higher and the total sales also increased. No. of SUVs in 2009 = 15% of 15000 = 2250 No. of SUVs in 2010 = 10% of 18000 = 1800 So, SUVs decreased in 2010. No. of Luxury cars in 2009 = 30% of 15000 = 4500 No. of Luxury cars in 2010 = 25% of 18000 = 4500. So, only SUV decreased in 2010. Hence, (b) 47. (a) Sol: Maximum selling car in 2009 is Luxury car. % change in number of Luxury cars in 2010 = 0%. 48. (b) Sol: Speed of filling the tank by pipe A = 10000/4 = 2500 l/hr Speed of filling the tank by pipe B = 10000/5 = 2000 l/hr Net speed of A after the leak = 2300 l/ hr and Net speed of B after the leak = 1800 l/hr.
that x can be either 7, 13, 19, 25, 31, 37, 43. 25 is not a prime number. Hence we cannot answer the question. Using statement B alone we cannot answer the question. Using both the statements together, we can justify that x is a prime number. So, using Hence, (c). 62. (b) Sol: Using statement A, we get that there are 80 single persons in the party. Hence, we get the answer. Using statement B alone, we get that 40% of total people are single. So, using either statements alone we can answer the question. Hence, (b) 63. (a) Sol: From statement B alone, we get that half the book contains 400 pages, so there are 800 pages in the book. 64. (d) Sol: From even both the statements together, we cannot find who ran faster or who won the race. 65. (c) Sol: Let the principle be Rs x. Simple interest = 8*3x/100. So, amount = 1.24x Compound interest = x(1+(8/100))3 = 1.259712x So, difference = 0.019712x = 591.36. So, x = 30000 66. (c) Sol: Remaining 45 ladies who wore other than Sarees and Salwars constituted 30% of the ladies. So,total ladies in the party = 150. So, total persons in the party = 240 + 150 = 390. Total persons wearing either Sarees or Suits = 45 + 144 = 189. So, percentage = (189/390)*100 = 48.4% 67. (c) Sol (c): Initially, the milk and water is in the ratio of 3:1 with total volume being 12 + 4 = 16 litres. Now after removing 6 liters of solution, the ratio of milk and water remains unchanged. This means that initially the ratio of milk and water in the solution is 3:1 and the total volume is 12 litres. So, the initital concentration of milk in solution is 75 %. Using replacement formulae: Final concentration = Initial concentration {1-(volume replaced)/(total volume)}(number of replacements) Final concentration = 75%{1 (1/6)}2 = 52% approx.
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AB = 12, CD = 12 and AB = ED, so, CE = 3 AC = 34, so, by Pythagoras theorem, AE = (34-9)=5 m So, AD = (122+52)=13 m 35. (d) 36. (a) 37. (c) 38. (c) 39. (d) 40. (c) 41. (b) 42. (c) 43. (b) Sol: Total investment = Rs 16000. Bijus share = 5000/16000100 = 31.25% So, share in profit = 31.25% of Rs 80000 = Rs 25000 44. (c) Sol: The total marks scored by the class = 35*70 = 2450. The total marks of the class after removing 5 toppers = 30*66 = 1980. So, marks scored by the 5 toppers =
Water to be filled = 5000 l Water filling by sequence 2300 + 1800 + 900 = 5000 i.e. 0.5 + 0.5 + (0.5*900/2300) = 1.195 hrs = 1 hr 11 min 45 sec = 1 hr 12 min approx. = 11:12 AM 49. (d) Sol: Statement (d) is correct as car C does not change its position wrt time. 50. (d) Sol: The acceleration of car A is zero as it is moving with constant speed. 51. (b) Sol: Each station can issue a total of 19 tickets. So, there are 19*20 = 380 possible tickets that can be issued. 52. (c) 53. (a) 54. (b) 55. (b) 56. (a) 57. (a) 58. (a) 59. (a) 60. (c) 61. (c) Sol: Using statement A we get
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68. (d) Sol: Gear A has 22 teeths and gear B has 55 teeths. So gear B is bigger than gear A and on completion of one rotation of gear B, gear A completes more than one rotation. Since the ratio of size is 2 : 5, the ratio of rotation is 5:2. When gear A completes 5 rotations, gear B completes 2 rotations. So, when gear B completes 20 rotations, gear A completes 50 rotations and gear C completes 5 rotations. So, gear C has 220 teeths. 69. (b) Sol: Since there are 15 books in between the two and the Science book is 12th from the left, hence Maths book cannot be on the left of Science book. Hence, the total number of books are 11 + Science + 15 + Maths + 25 = 53 books. 70. (b) Sol (b): At least 4 colours are required to colour the figure. 71. (a) Sol (a): The family is as follows: The Professor and the Lawyer has two male child (Doctor and Engineer) and one female child (Bank Manager). The Doctor is married to Doctor having two female child and one male child.
The Engineer is married to Housewife having no children. The Bank manager is married to Accountant and has two girl child. 72. (c) Sol: The family is as follows: The Professor and the Lawyer has two male child (Doctor and Engineer) and one female child (Bank Manager). The Doctor is married to Doctor having two female child and one male child. The Engineer is married to Housewife having no children. The Bank manager is married to Accountant and has two girl child. 73. (a) Sol: The family is as follows: The Professor and the Lawyer has two male child (Doctor and Engineer) and one female child (Bank Manager). The Doctor is married to Doctor having two female child and one male child. The Engineer is married to Housewife having no children. The Bank manager is married to Accountant and has two girl child.
74. (d) Sol: The sum of first 39 odd numbers is 1521. So, the student missed 21 and hence he got the answer as 1500. 75. (d) Sol (d): For the sum of two terms to be zero, both the terms must be zero as square of any term/number cannot be negative. Hence, 4x 5 = 0. So, x = 5/4 (3y + 2) = 0. So, y = -2/3 So, 12xy = 12 5/4 -2/3 = -10 76. (a) Sol: First flower can be put in 4 ways. Second flower can be put in 4 ways and so on. Hence, number of ways = 4 4 4 4 4 4 4 = 47. 77. (d) Sol: Statement A and D cannot be true together whereas both can be false. 78. (c) Sol (c): Statements A and D cannot be true together, whereas both can be false, if some men are brave and some are not. 79. (c) : We can check it by options. 968 is the largest number satisfying the given conditions. 80. (a) Exp.: Assigning additional responsibility motivates a person and raises his stature substantially.
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5. Which of the following activities has to be implemented by National Fisheries Development Board? 1. To bring major activities relating to fisheries and aquaculture for focused attention and professional management. 2. To enhance contribution of fish towards food and nutritional security. 3. To train and empower women in the fisheries section. Code: (a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2, 3 6. In which state central institute of Horticulture is situated. (a) Manipur (c) Nagaland (b) Assam (d) Uttarakand
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3. Which of the following department/ departments come under the Ministry of Science and Technology? 1. Department of Scientific and Industrial Research. 2. Department of Space. 3. Department of Bio-Technology Code: (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3 only 4. Match List I with List II: List I 1. Central Institute of Agricutural Engineering 2. Central Agricultural Research Institute 3. Indian Institute of Horticultural Research 4. Indian Institute of Sugercane Research List II A. Bhopal C. Bangalore Code: A (a) 2 B 4 C 3 D 1 B. Lucknow D. Port Blair
7. In which year the Kendriya Hindi Samiti was constituted (a) 1967 (c) 1971 (b) 1968 (d) 1974
8. Who is the chairman of National water Resources council? (a) President (b) Union Minister Resources (c) Prime Minister (d) Minister of Home Affair 9. National Agricultural Insurance Scheme was introduced in 19992000. Which of the following statement is NOT correct about it? (a) It covers all formers loans and loanees under the scheme. (b) The premium rate varies from 1.5 to 3.5 percent of the sum assured food crops. (c) The scheme is operating on the of water
12. Government of India had taken up a National Project on Development and Use of Bio fertilizer during the sixth Plan. Which one of the following statement is NOT correct about it? (a) The scheme provided for setting up National Bio-fertilizer Development. (b) National Development Ghaziabad. Bio-fertilizer Centre is at
(c) The scheme provided for setting up of Eight Regional Biofertilizer Development Centre (RBDCs) (d) Major objective of the scheme is promotion, extension, training and demonstration of bio-fertilizers.
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13. Match List I with List II: List I 1. Directorate of Marketing and Inspection 2. Ch. Charan Singh N a t i o n a l Institute of Agricultural Marketing 3. Small Farmery Agri Business Consortium List II A. Faridabad B. Jaipur C. New Delhi Code: A (a) 1 (b) 2 (c) 3 (d) 1 B 2 1 2 3 C 3 3 1 2
(c) The first ever National Theatre Festival christened Bharat Rang Mahotsav was held from 18 August to 14 September 1998 to commemorate the 50th year of Indias Independence. (d) Encouraged by the success of the first Bharat Rang Mahotsav, it has been made an annual feature. 16. The regional Resource cum research centre of National school of Drama is located at. (a) New Delhi (c) Mumbai (b) Bangalore (d) Pune
Laboratory for Conservation of cultured property A. 1976 C. 1948 Code : A (a) 1 (b) 1 (c) 4 (d) 4 B 2 3 2 3 C 3 2 3 2 D 4 4 1 1 B. 1949 D. 1954
17. Which of the following statements is/are correct about Sahitya Akademi 1. The Akademi has recognised 24 Languages 2. It has three translation centres at Bangalore, Chennai and Kolkata 3. It is an autonomous body fully funded by the Department of culture. (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2, 3 18. Which of the following statement is incorrect about Sahitya Akademi (a) It was registered as a Society in 1956 under the societies registration act, 1860. (b) It has three journals, Indian Literature in English, Bharatia Sahitya in Hindi and Samskrita Pratibha in Sanskrit. (c) The Akademi holds an annual weak long Festival of Letters usually in February. (d) The Akademi introduced a new series of programmes entitled Swarna Sahitya as part of the Golden Jubilee celebrations. 19. When were established? the following
20. Which of the following statements is NOT correct about centre for cultural resources and training (CCRT) (a) Established in 1979 (b) Is a semi-autonomous organisation. (c) Its Head Quarter is in Delhi. (d) Has two regional centres at Udaipur and Hyderabad. 21. Which of the following are under the administrative control of Ministry of Tourism? 1. Indian Institute of Tourism and Travel Management. 2. National Council for Hotel Management and Catering Technology. 3. National Institute of Water sports. Code: (a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3 22. A major India promotional event India Calling Organized by the National Geographic Society was held in (a) New York (c) Denver (b) Los Angeles (d) Atlanta
14. Which of the following statements are correct about Lalitkala Akademi. 1. It has regional centres called Rashtriya Lalit Kala Kendra and one of them is situated in Bhubaneswar 2. Every three years, the Akademi organizes Triennial India, and International exhibition of contemporary art in New Delhi. 3. Since 1955, the Akademi has organised 52 national exhibitions of Arts and has presented the National Awards to 545 artists. Code: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 15. Which of the following statement about National School of Drama (NSD) is NOT correct? (a) Became an autonomous organisation, financed entirely by Department of culture, Govt. of India in 1975. (b) Since 1998, the School has organised National theatre Festival for children christened Jashne Bachpan every year.
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1. National Gallery of Modern Art 2. National Library 3. National Museum 4. National Search
23. India is a producer-member of the International Tropical Timber organisations (ITTO). At present, how many Member Countries are there in ITTO. (a) 57 (c) 59 (b) 58 (d) 60
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24. Geological Survey of India has opened full fledged seismo-tectonic division in 6 cities. Which one of the following is not one of those cities? (a) Shimla (c) Shillong (b) Lucknow (d) Nagpur
of
Schedule
List II A. 1962 C. 1992 Code: A (a) 1 (b) 1 (c) 4 (d) 4 B 2 3 3 2 C 3 2 2 3 D 4 4 1 1 B. 1984 D. 1969
29. The National Programme of Flood management was launched in: (a) 1954 (c) 1981 (b) 1967 (d) 1999
25. Which of the following is/are chosen for the project cheetah? 1. Kumo-Palpur and Nauradehi, (MP) 2. Sunabeda (Orissa) 3. Shahgarh Bulge (Rajasthan) Code: (a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2, 3 26. Match List I with List II : List I 1. Surface to surface 2. Anti Tank missile 3. Ship launched SS missile 4. Multidirectinal Multi-target SAM area defence weapon system List II A. Prithvi Missile C. Akash Code : A (a) 1 (b) 1 (c) 2 (d) 1 B 2 2 1 4 C 3 4 3 3 D 4 3 4 2 B. Nag D. Dhanush
30. Project Arrow envisages upgradation of Post offices in urban and rural areas. In which year it was started? (a) 2006 (c) 2008 (b) 2007 (d) 2009
31. At the end of March 2011, there were 282.29 million phones in rural areas with a teledensity of (a) 32.76% (c) 34.13% (b) 33.83% (d) 34.91%
36. Which of the following statements is / are correct? 1. India ranks first in the world in terms of milk production 2. Buffalo milk is estimated to account for 57 percent of the total milk production in India. 3. Despite of being the largest producer, the per capita availability is lower than the world average. (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2, 3 37. Which of the following statement is NOT correct regarding Child Health Situation in India? (a) Of the 9.7 million under five deaths globally, 2.1 million are in India alone (b) 1.57 million children die before one year of age. (c) 25 percent of all infant deaths in India are concentrated in Uttar Pradesh and Bihar. (d) 70 percent of all infant deaths in India are concentrated in eight states (Bihar, UP, Madhya Pradesh, Odisha, Rajasthan, Andhra Pradesh, Maharashtra and Gujarat). 38. Yaws Eradication Programme was launched as a centrally sponsored scheme in 1996-97. In which year yaws elimination was declared by the Health and Family welfare ministry. (a) 19th September 2005 (b) 19th September 2006 (c) 19th September 2007 (d) 19th September 2008
32. Which of the following statement is incorrect regarding operation Blackboard? (a) This scheme was launched in 1987-88 (b) It was launched in order to improve the physical and human resources in primary school/ (c) It is a centrally sponsored scheme. (d) The scheme has been subsumed in the District primary Education Programme. 33. Sardar Vallabhbai Patel International School of Textiles and Management is situated in: (a) Bangalore (c) Coimbatore (b) Gandhi nagar (d) Indore
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27. INS Jalashwa was commissioned on June 22, 2007 and is the first landing platform Dock (LPD) in the Indian Navy. From which country it was acquired. (a) USA (c) UK (a) River dam (b) Rural housing programme for B.P.L (c) Rural womens Empowerment and Livelihood Programme (b) USSR (d) France
34. Who is the chairman of 19th Law Commission? (a) Justice G.B. Pattanaik (b) Justice Brahm A. Agarwal (c) Justice P.V. Reddi (d) Justice E.S. Venkataramiah 35. Match List I with List II: List I 1. Indo-Tibetan Border Police 2. National Security Guards 3. Rapid Action Force 4. Sashastra Seema Bal
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39. Choose the incorrect statement. (a) Malaria is an acute parasitic illness caused by plasmodium falciparium or plasmodium vivax in India (b) Filariasis is transmitted by mosquito species i.e. culex vishnui (c) Kalazar is caused by a protozoan parasite Leishmania donovani and spread by sandfly. (d) Dengue Fever is an outbreak prone viral disease, transmitted by Aedes Aegypti mosquitoes. 40. In which year the National Rural Health Mission (NRHM) was launched. (a) 2005 (c) 2007 (b) 2006 (d) 2008
is/are correct regarding Rashtriya Swasthya Bima Yojana? 1. The premium is shared on 75:25 basis by centre and state Government. 2. In case of the North East region, the premium is shared in the ratio of 90:10 3. All pre-existing diseases of the beneficiaries of this scheme are to be covered. Code: (a) 1 and 2 (c) 3 only (b) 2 and 3 (d) 1, 2, 3
2 2 1
1 1 2
4 3 3
47. Which state has the distinction of publishing newspapers /periodicals in 21 major languages listed in the Eight Schedule of the Constitution of India? (a) Delhi (c) Tamil Nadu (b) Maharashtra (d) Odisha
48. Which of the following statement is incorrect regarding Mahatma Gandhi National Rural Employment Guarantee Act. (a) In phase one, it was introduced in 200 most backward districts of the country. (b) The Act, at present, is being implemented in 625 districts in the country. (c) Unique features of the Act include time found employment guarantee and wage payment within 30 days (d) The Act mandates 33 percent participation for women. 49. In which of the following states / UTs Indira Awas Yojana is not implemented. 1. Delhi 2. Chandigarh 3. Sikkim Code: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2, 3 50. Match List I with List II: List I 1. Pradhan Mantri Sadak Yojana 2. Swarnajayanti Gram Swarojgar Yojana 3. Indra Awas Yojana C. 2000 Code: A (a) 1 (b) 1 (c) 3 (d) 3 B 3 2 1 2 C 2 3 2 1 B. 1999 List II A. 1985-86
44. Which of the following statement is/are correct regarding the Prasar Bharati Board? 1. The chairman is a part time member with three year tenure subject to an age limit of seventy years. 2. The executive Member is a whole time member with five year tenure subject to an age limit of sixty five years. 3. The Member (finance) and member (personnel) are whole time members with six-year tenure, subject to the age limit of 62 years. (a) 1 only (c) 2 and 3 only (b) 2 only (d) 1, 2, 3
41. Two components of Jawaharlal Nehru National Urban Renewal Mission are operational for the housing section. Basic Services to the Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP). Which of the following statement is/are correct about the features of BSUP? 1. The duration of the Mission is for 7 years beginning from the year 2005-06 2. 90% of the project cost is borne by the central Government for projects from cities / towns in north-eastern states and Jammu and Kashmir. 3. 70% of the project cost in respect of cities having million plus population or above to be borne by the central Government. Code: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2, 3 42. National Cooperative Housing Federation was established in which year? (a) 1969 (c) 1972 (b) 1971 (d) 1976
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45. Recently Government of India has decided to reduce the age limit under Indira Gandhi National old Age Pension Scheme for BPL. What is the new limit? (a) 58 (c) 62 List I 1. DD News 2. DD Sports 3. DD Bharati 4. DD Urdu Code: A (a) 3 B 1 C 2 D 4 (b) 60 (d) 65 List II A. 1999 B. 2002 C. 2003 D. 2010
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51. Under Nirmal Gram Puraskar which state have the distinction of becoming first nirmal state of the country? (a) Goa (c) Manipur (b) Sikkim (d) Meghalaya
2. Hyderabad 3. Haryana
2. Physics 3. Economics 4. Solid state chemistry Material science Code: A (a) 4 (b) 2 B 3 1 1 3 C 2 4 2 4 D 1 3 3 1 and
D. National Institute 4. New Delhi for Plant Genome Research Code: A (a) 1 (b) 1 (c) 3 (d) 4 B 2 2 2 3 C 3 4 1 2 D 4 3 4 1
52. When was Jawaharlal Nehru National Urban Renewal Mission Launched? (a) 31 th December 2004 (b) 3rd December 2005 (c) 24th April 2006 (d) 14th November 2007 53. Which of the following statement is incorrect regarding implementation of reforms under Jawaharlal Nehru National Urban Renewal Mission? (a) Legislation has been enacted for establishment of Urban Local Bodies in Sikkim, Arunachal Pradesh and Mizoram (b) The city of Faridabad has taken community Participation to the next level by involving the community in monitoring project progress from tendering to the executive stage (c) Rajasthan has come up with a comprehensive land tilling legislation (d) Jaipur was the first city to set up a dedicated Urban Transport Fund 54. Match I and II List I A. National Centre for cell Science List II 1. Pune
(c) 4 (d) 2
58. Who is the President of the Council of Scientific and Industrial Research? (a) President of India (b) Vice President of India (c) Prime Minister of India (d) Union Minister of science and Technology 59. Which personalitys birthday is celebrated as National Youth Festival by the Ministry of youth Affair and Sports? (a) Bhagat Singh (b) Sulhas Chandra Bose (c) Swami Vivekanand (d) Rajiv Gandhi 60. Which state has been adjudged number one in Primary Education and teacher student ratio (a) Kerala (b) Himachal Pradesh (c) Gujarat (d) Tamil Nadu
55. The Research, Design and Standards Organisation, the R&D wing of Indian Railways is located at (a) Chittarjan (c) Vasanasi (b) Lucknow (d) Bilaspur
56. In which country, the 16th world Route Development (RDG) (Related to Aviation) was held. (a) USA (c) Canada (b) France (d) Germany
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57. Mateh List I with II (Indian scientist/scholars with Area of work) List I A. C.N. R Rao B. Jagdish Bhagwati C. G.N Ramchandran D. Ashok Junjunwala List II 1. Telecomunication
ANSWERS
1. (d) 2. (c) 3. (b) 4. (d) 5. (d) 6. (c) 7. (a) 8. (c) 9. (d) 10. (b) EXP. instead of 70% it is 50% 11. (c) 12. (c) 13. (a) 14. (d) 15. (c) Exp. it was held from 18th March to 14 April 1999 16. (b) 17. (c) Exp. it has only 2 translation centers at Bangalore and Kolkata 18. (d) Exp. the name of the programme was Sur sahitya 19. (d) 20. (b) Exp. it is fully autonomous organisation. 21. (d) 22. (b) 23. (c) Exp. ITTO was established under the auspices of the United Nations in 1986 amidst increasing worldwide concern for the fate of tropical forests. 24. (a) 25. (c) 26. (b) 27. (a) Exp. USS Trenton 28. (c) 29. (a) 30. (c) 31. (b) 32. (d) Exp. subsumed in the Sarva Siksha Abhiyan from 2002-03 33. (c) 34. (c) 35. (a) 36. (d) 37. (c) Exp. it is 37% 38. (b) 39. (b) Exp. Filarasis is transmitted by mosquito species that is culex quinquefascias and mansonia annulifera. 40. (a) 41. (b) Exp. it is 50% for million plus cities. 42. (a) 43. (d) 44. (d) 45. (b) 46. (a) 47. (d) 48. (c) Exp. 15 days instead of 30 49. (b) 50. (d) 51. (b) 52. (b) 53. (d) Exp. Surat instead of Jaipur. 54. (d) 55. (b) 56. (c) Exp. Vancouver, Canada 57. (a) 58. (c) 59. (c) 60. (b)
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7. To raise the agricultural productivity the need is to overcome supply-side constraints. This could be achieved through 1. Regular imports of agriculture commodities though with an upper ceiling on total quantity. 2. Allowing greater number of traders as agents in mandis. 3. Undertaking an alternate cropping pattern based on agro-climatic zone. 4. Allowing multi-brand retail. Which is/are correct? (a) 1, 2 and 3 (c) 1, 3 and 4 (b) 2, 3 and 4 (d) 1, 2 and 4
3. Encourage investment and help fiscal consolidation Which is/are correct? (a) 1 and 2 (c) 1 and 3 (b) 2 and 3 (d) All of the above
2. Consider the following statements 1. The share of the services sector in total GDP has climbed from 58% in 2010-11 to 60% in 2011-12. 2. Industrial sector share has declined to 27% owing to uncertain global economic environment. 3. Inflation as measured by the WPI has declined owing to decline in the prices of nonfood manufacturing products. 4. During the 11th Plan period the average annual growth rate in agriculture sector is estimated to be 3.2%. Which is/are incorrect? (a) 1 and 2 (c) 3 and 4 (b) 1, 2 and 3 (d) All of the above
8. Indian economy though has advantageous demographic dividend yet if it has to emerge as a strong global player, it needs to address 1. Low spending on R & D and innovation. 2. Low energy intensity of GDP. 3. Dependence on global markets for food security. Which is/are correct? (a) 1 and 2 (c) 1 and 3 (b) 2 and 3 (d) All of the above
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(c) Comparative Rating Index for Sovereigns (d) Component-wise Reform Income-tax System of
3. The growth rate of investment in the economy is estimated to have registered a significant decline during 2011-12. The major cause(s) is/are 1. Widening of the current account deficit 2. Global economic uncertainty owing to euro zone crisis 3. Tight monetary policy 4. Higher cost of borrowings
6. The inflation in the current fiscal is expected to moderate to 6.5% to 7% by the end of March. The reason/s is/are: 1. The lag effect of the tight monetary policy. 2. Favourable prices. base effect of
9. Though India has reduced its dependence on the EU and US and diversified its exports, yet the danger of economic slowdown on account of uncertainty in these regions persists. It is because 1. Europe accounts for 1/5th of the total exports of India. 2. More than 45 % of the total tourist arrivals in India are accounted by the EU and the US.
3. Continued global slowdown 4. Easing of constraints Select the correct code supply-side
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Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 10. According to the Economic Survey the sure shot signs of growing imbalance in the countrys BoP (Balance of Payment) is/are 1. A trade deficit of more than 8% of the GDP 2. A current account deficit of more than 3% of the GDP. 3. Low share of FIIs inflows in the country Select the correct code: (a) 1 and 2 (c) 1 and 3 (b) 2 and 3 (d) All of the above
organized sector, public and private combined, has increased by 1.9% in 2009-10. 2. The annual growth rate for the public sector was higher than that for the private sector. 3. The share of women in the organized sector employment has declined in recent years. Which is/are correct? (a) 1 and 2 (c) 1 and 3 (b) 2 and 3 (d) All of the above
1. During the post-reform period between 1991-92 and 2011-12, the average annual growth of industrial sector was lower than the overall GDP growth. 2. The share of industry in total employment, increased from 16.2% in 1999-2000 to 21.9% in 2009-10 largely on account of expansion in manufacturing sector. Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 17. Consider the following statement concerning National Manufacturing Policy. 1. It aims at 14% per annum growth in manufacturing so as to increase the share of manufacturing in GDP to 25% by 2020. 2. It aims at increasing the absorption of labour in the manufacturing sector from 50 million to 150 million by 2022. Which is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 18. Effective revenue deficit is (a) Total Receipts Total expenditure + Grants for creation of Capital Assets. (b) Revenue Receipts Revenue Expenditure + Grants for creation of Capital Assets. (c) Revenue Receipts Proceeds from disinvestment (d) Both (a) and (b) 19. Which of the following is/are the focus area identified by Kakodkar and Pitroda Committee on Railways? 1. Track 2. Bridges 3. Signaling & Telecommunication 4. Rolling Stock 5. Stations & Freight Terminals Select the correct code
14. Consider the following statements 1. Janani Suraksha Yojana (JSY) targets to give free entitlements to pregnant women for cashless delivery. 2. Janani Shishu Suraksha Yojana (JSSY) targets lowering of infant mortality ratio by ensuring that deliveries are conducted by skilled birth attendants. Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 15. Match the following: Programmes A. Sarva Shiksha Abhiyaan B. National Literacy Mission C. Right to Education Impact 1. Increase in the literacy among women from 53.6% (2001 census) to 65.4% (2011 census). 2. Drop in number of out-of-school children especially girls 3. Increase in Gender Parity Index in primary as well as upper primary education A (a) 2 (b) 1 (c) 3 (d) 3 B 1 2 1 2 C 3 3 2 1
11. The stability of the Indian financial system is critical for the overall stability of the economy in the medium term. It is because 1. Indian financial system is bank dominated.
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2. The globalised nature of the monetary policy post-financial crisis. 3. Dominance of the external commercial borrowings poses a contagion risk 4. Inadequate risk and liquidity management. Select the correct code (a) 1 and 2 (c) 2, 3 and 4 (b) 1 and 3 (d) 1, 2 and 4
12. Consider the following statements 1. Services sector share (inclusive of Construction sector) increased from 63.3% in 201011 to 64.4% in 2011-12. 2. In providing employment, agriculture sector was followed by industrial sector and then services sector. Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 13. Consider the following statements: 1. Employment growth in the
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(a) 1, 3 and 4 (b) 1, 2, 3 and 4 (c) 1, 3, 4 and 5 (d) All of the above 20. Safety Villages proposed in the Rail Budget 2012-13 is concerned with (a) Providing small shelters to dwellers near rail track. (b) Imparting skill development for disaster management (c) A new training camp for railway personnel especially trained for rail safety (d) A manufacturing unit for the development of rail safety devices to be set up at Lucknow. 21. Match the following List I A. Diesel Component Factory B. Wagon Manufacturing Unit C. Rail Coach Factory D. Rail Wheel Factory List II 1. Chappra 2. Pallakad 3. Dankuni 4. Kulti A (a) 1 (b) 2 (c) 3 (d) 3 B 2 1 4 4 C 3 3 1 2 D 4 4 2 1
Which is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 23. Which one of the following given statement is incorrect? (a) Rajiv Gandhi Equity Saving Scheme allows tax deduction of 50% to new retail investors who invest up to Rs. 50, 000 directly in equities. (b) Central Plan Scheme Monitoring System is for better targeting and utilization of subsidies given by the government. (c) Coal India Ltd has been advised to sign Fuel Supply Agreements (FSA) only with those power plants who have signed longterm Power Purchase Agreement (PPA) with DISCOMS. (d) Mobile based Fertiliser Management System (m-FMS) has been introduced on the recommendation of Nandan Nilekani Committee for better tracking and monitoring of the movement of fertilizers. 24. In which one of the following sector ECB route has not been allowed by the Union Budget 2012-13? (a) Housing (b) National highways (c) Power sector (d) Port sector 25. Union Budget 2012-13 has made certain sectors eligible for viable gap funding under the Viability Gap Funding (VGF) scheme. 1. Gas/LNG storage facilities 2. Telecommunication towers 3. Capital investment in fertilizer sector 4. Soil testing laboratories Select the correct code (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1, 3 and 4 (d) All of the above 26. Consider the following statements related to the Budget 2012-13 1. The proposed General AntiAvoidance Rule (GAAR) rules to
bring back the stashed money outside the country is borrowed from South Africa 2. GST is already being implemented in 140 countries. In Europe it is in vogue since last 50 years, however, in India it will come into effect from August 2012. Select the correct code (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 27. In the context of black money 1. India is the 33rd signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. 2. India has so far signed 82 DTAA (Double Taxation Avoidance Agreement) and 17 TIEA (Tax Information Exchange Agreement). Select the correct code (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 28. Himayat scheme proposed in the Budget is (a) Skill development programme to be run in Jammu & Kashmir. (b) Skill development programme to be run in North-East of India. (c) A social security programme to cover unorganized sector in J & K. (d) A social security programme to cover unorganized sector in North-East of India. 29. Which one of the following statement is/are incorrect? 1. Mahila Kisan Shashaktikaran Pariyojana is for better targeting of women farmers under the MGNREGA. 2. National Rural Livelihood Mission (NRLM) has been renamed as Aajeevika. 3. The role of ASHA has been expanded to include convenor
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22. Consider the following statements 1. An advance pricing agreement (APA) is an ahead of time agreement between a taxpayer and a taxing authority on an appropriate transfer pricing methodology (TPM) for some set of transactions so as to bring tax certainty. 2. A general anti avoidance rule (GAAR) is a set of broad and general principles-based rules enacted in the tax code aimed at counteracting avoidance of tax.
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of the village health and sanitation committee and support initiative on malnutrition. Codes are: (a) 1 only (c) 2 only (b) 1 and 3 (d) 1 and 2
(c) 1 and 3 (d) All of the above 34. Aadhar scheme has huge potential for improving operations and delivery of services. Its potential application in various significant public services delivery and social sector programme is immense. In this context consider the following statements. 1. The UID database can be used for the authentication of beneficiaries under the Public Distribution System. 2. It will help in enhancing the efficiency of social audit of programmes. 3. Enable greater commitment towards government financing of public health and primary health care. Which is/are correct? (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) All of the above 35. All the G-20 countries have been impacted by the global economic slowdown as witnessed from the decline in each countrys economic growth rate during 2011-12 except (a) Australia (c) Brazil (b) China (d) Canada
ascending order. 1. Odisha 3. Uttarakhand (a) 1-3-2-4 (c) 2-4-3-1 2. Chattisgarh 4. Gujarat (b) 3-1-2-4 (d) 4-2-3-1
38. Consider the following statements 1. Madhya Pradesh has the highest gross enrolment ratio while Punjab has the lowest. 2. The percentage of households provided employment under MGNREGA is highest in Haryana and lowest in Uttar Pradesh. Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 39. Consider the following statements regarding Maritime Agenda 20102020. 1. It sets a target of 3130 MT port capacity to be achieved by 2020. 2. 50 % of the port capacity of 3130 MT will be created in major ports. 3. To reduce transaction cost so as to make Indian ports globally competitive. Which is/are correct? (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) All of the above 40. To improve the viability of the civil aviation sector, it is necessary to 1. Rationalize VAT on aviation turbine fuel. 2. Allowing direct imports of ATF by airlines for their own consumption. 3. Permit foreign airlines to invest in domestic undertakings. Which is/are correct? (a) 1 and 3 (c) 2 and 3 (b) 1 and 2 (d) All of the above
30. Which one of the following has not been matched correctly? concept Budget Estimates 2012-13 (a) Fiscal deficit (b) Primary deficit (c) Revenue deficit (d) Effective revenue deficit 1.8% 31. Among the various sub-sectors of industry, namely mining, manufacturing, electricity, and construction, which was the only sector that witnessed improvement in growth during 2011-12? (a) Manufacturing (b) Construction (c) Electricity (d) Mining 32. Which one of the following combination constitutes the core industries of the Indian economy? 1. Cement (a) 1 and 2 (c) 2, 3 and 4 2. Steel (b) 1, 2 and 3 (d) 1, 2 and 4 3. Fertilisers 4. Capital goods 5.9% 1.9% 3.4%
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36. According to the 66th Round of NSSO, the unemployment in absolute terms came down only by 6.3 million between 2004-05 and 2009-10. This has been due to 1. The labour force expanded by only 11.7 million during the same period, which was considerably lower than the earlier periods. 2. The much larger retention of youth in education. 3. Lower labour force participation among working age men. Select the correct code (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) All of the above 37. Arrange the following States in terms of their State GDP growth in
33. There is need to put in special efforts to improve foodgrain storage facilities in the Indian economy because 1. To ensure adequate security for all. food
2. To stabilize prices from one year to another. 3. To meet the exports need of the economy in food grains Select the correct code (a) 1 and 2 (b) 2 and 3
41. Consider the following statements 1. Sanchar Shakti Scheme aims at empowerment of rural women through facilitating access of
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SHGs to ICT enabled services. 2. WPI based inflation will now be published on weekly basis with effect from 24th January 2012. Which is/are incorrect? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Directions for the question no 42-45 Mark (a) if both Assertion (A) and Reason(R) are correct and R explains A Mark (b) if both A and R are correct but R does not explain A Mark (c) if A is correct and R is false Mark (d) if A is wrong and R is correct 42. Assertion: Fiscal deficit in the Revised Estimates of 2011-12 is 5.9% which is higher than the Budget Estimates of 4.4% for the year 2011-12. Reason: The tax collections were lower and the expenditure was high on account of subsidies. 43. Assertion: Service taxes in the Budget 2012-13 have been raised from 10% to 12%. Reason: The share of services in the GDP has increased to 59% in 2011-12. 44. Assertion: Gross domestic savings as a ratio of GDP at current prices declined from 33.8% in 2009-10 to 32.3% in 2010-11. Reason: The Public sector saving has seen a decline on account of fiscal stimulus. 45. Assertion: Agriculture sector growth at the end of the 11th Plan is expected to be 3.2% which is lower than the targeted 4%. Reason: There was a severe drought across the major parts of the country in 2009-10. 46. Which among the following are the countries who recently joined WTO as a member? 1. Russia 2. Samoa 3. Vanautu 4. Montanegro
Options are: (a) 1 only (c) 1, 2 & 3 (b) 1 & 2 only (d) All the above
the RBI to prevent the depreciation of the rupee? i. Allowing QFI to invest in equity market
47. Which of the following is/are true about recent WTO ministerial meeting? 1. The ministerial meeting involves trade ministers from member countries and will meet for every two years. 2. Developed countries proposed for tariff standstill as a precondition to carry forward Doha round. Options are: (a) 1 only (c) Both (b) 2 only (d) None
ii. Raising interest rate for NRI savings account iii. Preventing speculation In the forward currency market (a) i & ii only (b) ii only (c) i, ii & iii (d) i & iii only 52. What is the recent moodys rating of Indias local and foreign currency bonds? (a) Baa1 (c) Baa3 (b) Baa2 (d) Bbb1
48. Which of the following is/are correct statements regarding new manufacturing policy? i. It is formulated to increase the share of manufacturing in GDP to 25% and to create 100 million jobs.
53. Which of the following has initiated Sankat Haran Bima Yojana and save the soil campaign ? (a) IFFCO (c) NALCO (b) IDBI (d) NABARD
ii. It proposed to incentivize specific sectors and for specific location. iii. It proposed for setting up of NMIZ (national manufacturing investment zone). Options are: (a) i & iii only (c) i only (b) i, ii & iii (d) ii & iii only
54. Which Asian country is recently in the news for its first trade deficit after 31years? (a) South Korea (c) Indonesia (b) Japan (d) Singapore
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55. Which of the following is/are not correct statements? i. 13th finance commission recommended for inclusion of petroleum products in GST regime.
49. How many states are covered by DMIC (Delhi Mumbai industrial corridor) project? (a) Four (c) Six (b) Five (d) Seven
50. In which states youth employability skill (YES) project is implemented on pilot basis? (a) Assam and Manipur (b) Manipur and Meghalaya (c) J&K and Himachal Pradesh (d) West Bengal and Bihar 51. Which are all the measures taken by
ii. Present GST proposal excludes petroleum products in it, so only petroleum ministry asked finance ministry to include petroleum products in GST to get benefit from it. iii. State governments fear that their revenues will be reduced if the petroleum products included in GST (a) i & iii only (b) ii only (c) i , ii &iii (d) None
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56. Which of the following is/are correct regarding de-regulation of sugar sector? i. Food ministry will set the quantity of sugars to be released by sugar factories into the market every month.
(b) i & ii only (c) i,ii & iii (d) iii only 59. Which of the following is/are correct regarding Indias stand on Iran? i. India will adhere to UN sanctions but not to USA&EU
iii. Slowdown in domestic sectors (a) i & ii only (c) ii & iii (b) ii only (d) i, ii & iii
63. Which of the following are commercial credit rating agencies in India? i. CRISIL ii. CARE iii. ICRA iv. BRICKWORKS RATINGS Options are: (a) i & ii only (c) i, iii & iv (b) i, ii & iii only (d) All the above
ii. Sugar industries are suffering loss due to the procurement of 10% of the production by the government for PDS at below market rates. iii. Recently, expert committee was formulated under C. Rangarajan to consider this sector reforms. (a) ii & iii only (b) iii only (c) i,ii & iii (d) i & ii only 57. Which of the following is/are correct about recent negative food inflation? i.
ii. India will continue to import Irans oil as it is sold at lower prices when compared to global crude prices. iii. Diversification of sources of oil for India will address this problem immediately. (a) i & ii (c) i & iii only (b) i,ii & iii (d) i only
64. Which of the following is not true about credit rating agency? (a) It will give rating for corporate and government debt structure (b) It will be calculated based on economic formulas and mathematical calculation by the particular rating agency (c) It gives the information for investors about the risk of their investment in particular company or country (d) While giving the rating it will consider both economic and political situation in the country. 65. Which of the following is true about credit bureaus? (a) The agency which give rating for individuals (b) The agency which give rating for the investing agency in particular debt instruments (c) The agency which evaluate risks of particular debenture instrument issued by the corporate (d) The agency set up by the government to regulate credit rating agency in the country. 66. Which of the following is called as green jobs? (a) Jobs involved in agriculture sector with climate resilient techniques (b) Jobs which are created in the economy which employs fresh
60. Which of the following is/are correct regarding disputes in the payment of wages to MGNREGA workers? i. Union government statutorily delinked MGNREGS from minimum wages act(MWA)
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ii. It is because of sharp drop in food articles prices iii. It is because of tight monetary policy to tame demand in the market. (a) i & iii only (b) i & ii only (c) i,ii & iii (d) iii only 58. Which of the following is/are not correct regarding recent changes in WPI? i. Earlier it was released by finance ministry but now commerce ministry will release the data.
ii. Supreme Court asked centre to link that with consumer price index for agricultural laborers (CPIAL) to add the inflationary trends in the wages. (a) i only (c) Both i & ii (b) ii only (d) None
61. What is look US policy recently in news? (a) To import LNG from US at cheap prices (b) To acquire technology know how in exploring shale gas (c) To protect our industry from US protectionist policies (d) To increase civil nuclear cooperation to next step as a partner in nuclear research 62. Which of the following is/are the reason/s for the downgrading of SBI by moody in last October? i. Inadequate capital in the bank NPA(nonii. Increasing performing assets)
ii. Earlier WPI was released weekly basis but now changed to monthly basis. iii. Earlier food inflation based on headline index was released on weekly basis but now changed to monthly basis. (a) i only
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graduates (c) Jobs which involve all the sectors which aims for restoring the environmental sustainability and quality. (d) Jobs created by the government exclusively for conserving biodeiversity. 67. Which of the following is/are false about professional tax? i. Tax payable by single person to any state or municipality, district board or local authority should not exceed rs.2500 per annum
by the law made by the state government. iii. There is no need of constitutional amendment, for removing the upper cap in profession tax. (a) i only (c) ii only (b) i & iii only (d) iii only
69. Which committee was set up to look into the matter afresh and suggest the new cap on beneficiaries for welfare schemes, including the proposed legal food entitlement? (a) Abhijit sen (c) Pranob sen (b) Rangarajan (d) N.C.saxena
68. Which countrys bank was used by India to pay for Iran crude oil imports before US economic sanctions on Iran central bank? (a) Germany (c) Belgium (b) Turkey (d) Brussels
70. Which of the following countries are downgraded from AAA status by S&P recently? i. France ii. Austria iv. Germany (b) i , ii & iii (d) i & iii only iii. Portugal (a) i & ii only (c) All the above
ANSWERS
1. The answer is (a) because interest rate on saving account is the price for parting with the money by an individual which should necessarily be high if adequate mobilization of resources has to take place. Whereas investment can be encouraged by reducing the interest rates which at present are ruling high in the economy on account of tight monetary policy. Moreover, fiscal consolidation can happen through increase in tax-GDP ratio and cutting down wasteful expenditure. 2. (b) Hint: services sector share has increased to 59%, industrial sector slowdown has been the result of subdued investment climate on account of tight monetary policy, and the decline in inflation has been account of food inflation. Therefore only statement 4 is correct. 3. (b) Hint: the widening of current account deficit impacts the exchange rate. 4. (b) Hint: Fiscal consolidation comprises of raising the tax-GDP ratio and cutting down on wasteful expenditure rather than nonPlan expenditure. It is because nonPlan expenditure also includes certain expenditures which are beneficial for the economy and society. 5. (b) 6. (d) 7. (d) Hint: 3rd option should be undertaking an alternate cropping pattern based on soil analysis. 8. (a) 9. (a) Hint: the EU share is 30% and the US share is 16.5% 10. (a) Hint: It is the high share of volatile FIIs inflow which is dangerous for Indias already widening BoP imbalance. 11. (d) Hint: The exposition of the Indian financial system to the ECBs during the crisis helped India tide the crisis as the share of ECBs was low. 12. (a) Hint: in providing employment the agriculture sector is followed by services sector and then industry. This has been account of slowdown in the industry sector in the crisis and postcrisis period and decline in employment in the organized manufacturing during the same period. 13. (a) Hint: The share of women remained constant. 14. (d) Hint: Both the statements are wrong. The targets of both the programmes has been interchanged and moreover in place of IMR it should be MMR. 15. (c) 16. (b) Hint: during the post-reform period the average annual growth of industry was in alignment with the GDP growth. That is both have the same growth rate of 6.9%. 17. (a) Hint: In place of 2020 it should be 2022. 18. (b) 19. (d) 20. (b) 21. (c) 22. (d) 23. (b) Hint: option (b) is wrong because it is not for subsidies only but for all the funds released by the Central government. 24. (d) 25. (d) 26. (c) 27. (c) 28. (a) 29. (a) 30. (a) 31. (c) 32. (b) 33. (a) 34. (d) 35. (a) 36. (a) 37. (b) 38. (a) Hint: 2nd statement is wrong because it is highest in UP and lowest in Haryana. 39. (b) Hint: 50% of the port capacity will be created in non-major ports. 40. (d) 41. (b) 42. (a) 43. (b) 44. (c) 45. (a) 46. (d) 47. (c) Expl:i) recently 8th ministerial meeting held in Geneva in December 2011. ii)correct.tariff standstill means freezing all the customs duties at present level. It is proposed by developed countries but developing countries including India rejected the proposal as it is tantamount to ceding sovereign rights in taxing exports. 48. (a) Expl:ii) incorrect.The proposals in the policy are generally sector neutral, location neutral and technology neutral except incentivization of green technology. 49. (c) Expl: Haryana, UP, Rajasthan, Madhya Pradesh, Maharashtra and Gujarat. 50. (b) Expl: the Youth Employability Skill (YES) project, a residential training programme that was launched on a pilot basis in Manipur and Meghalaya earlier this year, saw 56 of its 78 trainees finding jobs. 51. (c) Expl: i & ii will increase the inflows of foreign currency into India which will weakens the rupee.iii) preventing speculation in the market there will be decrease in forward contract in currency market which will reduce outflows of the foreign currency in the environment of strong rupee. 52. (c) 53. (a) Expl: sankat haran bima yojana is the insurance scheme for farmers buying fertilizers by Indian
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Farmers Fertiliser Cooperative Limited. Save the soil campaign is the measure to reduce the excess usage of fertilizers in farming to prevent the deterioration of soil health. 54. (b) 55. (d) Expl: I) correct. II) recently petroleum ministry asked for inclusion of petroleum products in the GST so that there will be increase in the trade of these goods which will benefit the sector. Iii)correct; because the GST will impose less tax on petroleum products so state fears that it will loss the revenue if it is included. 56. (c) Expl: i)ii) are cited by the sugar industry union as reason for poor development of the sector. 57. (a) Expl:ii)incorrect. Because there is no uniform decline in the price of all food articles. the prices of onions and potatoes only fallen, the protein rich items like egg, meat and milk are still having high prices. 58. (b) Expl:i)incorrect.the data is released by commerce ministry always ii)incorrect.the WPI data is released on monthly basis only iii)correct.this is the recent change to synchronize with global standards 59. (d) Expl: i)correct. India will not adhere to any unilateral embargo on Iran ii)incorrect. India is importing oil from Iran because of Irans strategic importance and the crude oil prices is also not low iii)incorrect. India cannot diversify oil sources immediately to replace Irans oil because Iran is the second largest exporter of crude to
India 60. (a) Expl:i)correct ii)incorrect. Already government linked the NREGA Wages to CPIAL. Now Supreme Court asked government to link it to MWA 61. (a) Expl:it is to import cheap LNG from USA because there the gas is priced on Henry hub not linked to crude oil prices. So it will be cheaper for India 62. (a) Expl: That Moodys has not been comfortable with Indian banks was clear from its downgrade of the State Bank of India (SBI) in early October, on the grounds that the bank didnt have enough capital and could be in a bit of a spot if more loans turned bad. 63. (d) Expl: Credit Rating and Information Services of India Ltd. (CRISIL)majority stakeholder is standards & poors, Credit Analysis & Research Ltd. (CAREs) Ratings, Investment Information and Credit Rating Agency of India Limited (IICRA India). It was a joint-venture between Moodys and various Indian commercial banks and financial services companies. brickwork ratings is also another crediting agency in India. 64. (b) Expl: ii)not correct. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. 65. (a) Expl: Credit
scores for individuals are assigned by credit bureaus (US; UK: credit reference agencies. There is no universal credit score as such, rather each individual lender credit scores based on its own wish-list of a perfect customer. 66. (c) Expl: Green job is mainly defined as work in agricultural, manufacturing, research and development, administrative and service activities that contribute substantially to preserving or restoring environmental quality. 67. (d) Expl: The Empowered Committee (EC) of finance ministers of States demanded that the upper limit on Professional tax, currently capped at Rs.2,500, be removed by amending the constitution. Article 276 of the constitution empowers the States to levy tax on professions. The article originally envisaged a cap of Rs.2500 per annum. 68. (b) Expl: Turkeys state-run Halkbank t is used by India for crude oil payment to Iran by euro. 69. (a) Expl: Union Minister for Rural Development Jairam Ramesh set up a committee under Mr. abhijit Sen to look into the matter afresh and suggest the new cap on beneficiaries for welfare schemes, including the proposed legal food entitlement. 70. (a) Expl: because Portugal is in junk status already. Germany retained its top rating but France and Austria lost its AAA status.
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