Daily Current Affairs Quiz: September 10, 2025

Answer: D [All of the above]
Explanation:

Statement 1 is correct: Liberalization policies, such as reduced tariffs and easier foreign investment norms, directly increased competition from foreign companies in the Indian market.

Statement 2 is correct: While liberalization did lead to the closure of some inefficient domestic industries unable to compete with foreign counterparts, many others, even if inefficient, continued to operate, often by restructuring, focusing on niche markets, or leveraging existing distribution networks.

Statement 3 is correct: Facing competition, many Indian industries adopted technological upgrades and modernized their operations to improve productivity, quality, and cost-effectiveness.

Statement 4 is correct: Liberalization generally led to increased industrial output and employment. However, this growth was not uniform across all sectors. Some sectors benefited more than others, and the impact on employment varied depending on factors like automation and the specific nature of the industry.

Answer: C [Only three]
Explanation:

1. Net Factor Income from Abroad (NFIA):

NFIA represents the difference between income earned by residents of a country from the rest of the world and income earned by non-residents within the domestic territory. While NFIA is crucial for calculating Gross National Product (GNP), it’s not directly included in GDP at market prices.

2. Private Final Consumption Expenditure (PFCE):

This component represents the total spending by households on goods and services. It’s a direct component of GDP at market prices.

3. Government Final Consumption Expenditure (GFCE):

This component reflects the government’s spending on goods and services. Like PFCE, it’s a direct component of GDP at market prices.

4. Gross Capital Formation (GCF):

GCF represents the total investment in the economy, including business investment, residential construction, and changes in inventories. It’s a direct component of GDP at market prices.

Therefore, three components (PFCE, GFCE, and GCF) are directly included in the calculation of GDP at market prices.

Answer: B [Only two]
Explanation:

Statement 1 is incorrect: Globalization has significantly increased cultural exchange between countries through the spread of ideas, values, and cultural products.

Statement 2 is correct: Globalization has played a role in poverty reduction in several developing countries by providing them with access to larger markets and technology.

Statement 3 is correct: While globalization has many benefits, it also increases the vulnerability of economies to global financial shocks, as seen during the 2008 financial crisis.

Answer: C [1, 2 and 3 only]
Explanation:

Statement 1 is Correct: The 1st Five Year Plan (1951-56) was heavily focused on the agricultural sector. This was a natural choice considering India’s agrarian economy at the time. The plan aimed to increase food production to combat food insecurity and lay the foundation for industrial growth.

Statement 2 is Correct: The plan also aimed to boost industrial production, particularly in areas where India was heavily reliant on imports. This was seen as crucial for achieving self-sufficiency and reducing the drain on foreign exchange reserves.

Statement 3 is Correct: Self-reliance and social justice were two fundamental principles guiding the 1st Five Year Plan. The plan aimed to reduce dependence on foreign aid, achieve economic independence, and create a more equitable society.

Statement 4 is Incorrect: While increasing per capita income was a long-term goal, the 1st Five Year Plan primarily focused on building a strong foundation for future growth. The emphasis was on increasing production, both agricultural and industrial, rather than directly targeting a rapid increase in per capita income.

Answer: C [Only three]
Explanation:

Statement 1 is correct:  Centralized planning prioritized heavy industries and infrastructure development as a foundation for long-term economic growth, reflecting the influence of the Mahalanobis model.

Statement 2 is correct:  Import substitution was a key element of centralized planning, aiming to reduce dependence on foreign imports and foster self-reliance in critical sectors.

Statement 3 is correct:  The Industrial Policy Resolution of 1956 categorized industries into different schedules, specifying the roles of the public and private sectors. Schedule A industries were reserved for the state, while Schedule B allowed for both public and private participation, reflecting the mixed economy approach.

Statement 4 is incorrect: While equitable distribution was a stated goal, centralized planning did not achieve this outcome. Regional disparities persisted, and income inequality remained a significant challenge. The focus on heavy industry often came at the expense of social development and poverty reduction programs.