Indian Economy Previous Year Questions (PYQ) with Answers – Page 15

India's first Industrial Policy Resolution was announced on 6 April 1948 by Shyama Prasad Mukherjee, the first Industry Minister.

Maharatna, Navratna and Miniratna are status tags that the Government of India gives to central public sector enterprises on the basis of their size, profits and performance.

Globalisation means the growing integration of countries through trade, investment, technology and the movement of people, and it works by lowering barriers to trade, not by raising them.

Gulzarilal Nanda became the first Deputy Chairman when the Planning Commission began work in 1950, and he later became interim Prime Minister twice, in 1964 and 1966.

Regional Rural Banks were set up under the Regional Rural Banks Act, 1976, after the Narasimham Working Group of 1975 recommended small banks close to the villages.

Selling dollars supports a falling rupee and buying dollars absorbs heavy inflows, but to fight inflation the RBI sells, not buys, securities.

The Second Five-Year Plan, 1956 to 1961, moved the focus from farming to rapid industrialisation, especially heavy and basic industries.

A unicorn is a startup that is not listed on the stock market and is valued at more than one billion US dollars.

The Bombay Plan of 1944 was drawn up by a group of eight, mostly leading industrialists such as J. R. D. Tata, G. D. Birla, Purushottamdas Thakurdas, Lala Shri Ram and Kasturbhai Lalbhai, with John Mathai among them.

Real GDP measures the value of all final goods and services produced in a year at the prices of one fixed earlier year, called the base year, so that the effect of rising prices is removed and true growth can be seen.

A hawkish stance means the central bank treats inflation as its first enemy and is ready to raise interest rates and tighten money supply, even at some cost to growth.

The Reserve Bank of India measures money supply in four grades, M1 to M4, in decreasing order of liquidity. M1 is currency with the public plus demand deposits of banks plus other deposits with the RBI, and M2 is M1 plus savings deposits with post offices.

Stagflation is a blend of the words stagnation and inflation: output stops growing, unemployment rises, and yet prices keep climbing.

Open market operations, or OMO, are the buying and selling of government securities by the central bank in the open market to control the money supply.

The National Mission on Edible Oils - Oil Palm (NMEO-OP), approved in August 2021, gives special focus to these two areas because their high rainfall and humid climate suit oil palm.

All three are social security schemes, launched together by the Government of India on 9 May 2015 to give pension and insurance cover to ordinary people, especially in the unorganised sector.

SGST Acts are passed by each State Legislature, not by Parliament. The 101st Amendment, 2016 added Article 246A, which gives both Parliament and the State Legislatures the power to make laws on GST, and Article 279A, which created the GST Council.

Soap is sold by many firms under different brands that buyers see as close but not perfect substitutes, which is the mark of monopolistic competition.

India is not a member of the G7; it attends some summits only as an invited guest country. The Group of Seven is an informal grouping of seven major advanced economies: the United States, the United Kingdom, France, Germany, Italy, Japan and Canada.

Opportunity cost is what you sacrifice by choosing one option, measured by the best option you did not take. Because resources such as time, money and land are scarce, choosing one use means giving up others.