Question Discussion & Solution

The correct answer is 2011-12.

Key Points

• The Index of Industrial Production (IIP)
  • It is a short-term macroeconomic indicator widely used in measuring the industrial growth of the State.
  • The index indicates the relative change over time in the volume of production in the industrial sector and it is an effective tool to measure the trend of current industrial production.
  • Presently IIP is constructed based on the base year 2011-12. Hence, Option 3 is correct.
  • The Directorate of Economics and Statistics, Department of Planning, Rajasthan has been compiling/releasing an index of industrial production for the Rajasthan State since 1971 as per the guidelines of the Central Statistical Office (CSO), Govt. of India.
  • New base year IIP series based on 156 items/product groups for the manufacturing sector.
  • Shifting of the base year 2011-12 are in process to get monthly Production data from April 2011 onwards for a selected item for selected units in the prescribed format given by C.S.O.
  • Three major sectors in IIP 
    • Manufacturing:- For Manufacturing Sector the Production data is collecting for selected items from selected industrial units through district statistical officer’s and Now IIP web Portal has been developed for the collection of regular data from districts through an online system.
    • Mining:- Mining sector production data is supplied by the Indian Bureau of Mines, (IBM) Nagpur.
    • Electricity:- Electricity sector generation figures furnished by the Central Electricity Authority New Delhi.

The correct answer is Kota.

Key Points 

• Kota industrial Hub
  • Surrounded by the water of River Chambal, power plants, and natural resources Kota has been a centre of attraction for different industries.
  • Kota city is the trade centre for industries which includes Kota stone oilseed milling, handloom textile weaving, distilling, dairy product, manufacturing of metal handicrafts, fertilizers, chemicals, and engineering equipment.
  • Kota is a hub of Kota Doria sarees in Kaithoon, & C.F.C. is established for the development of weavers.​

Additional Information

• About Kota
  • Kota is one of the eastern districts of Rajasthan and is something like Dumbly shape.
  • The country slopes gently Northward from the high tableland of Malwa in Madhya Pradesh.
  • It is well watered, drained by rivers flowing in north and northeastern directions.
  • There are hills in the south, north, and eastern portion of the district and it is generally fertile. 

The correct answer is 2002 AD.

Key Points 

• Rajasthan Renewable Energy Corporation-
  • Established - 9 August 2002 AD
  • Headquarter - Jaipur
  • This entity was the result of the Rajasthan State Power Corporation Ltd merger with the Rajasthan Energy Development Agency.
  • This entity does work in the field of renewable energy production and capacity building.
  • This entity was awarded the IIMA power award.

Key Points

• Rajasthan Renewable Energy Corporation Limited (RRECL) was formed in August 2002 by amalgamating the erstwhile REDA (Rajasthan Energy Development Agency) and Rajasthan Rajya Vidyut Nigam Limited (RSPCL).
• The corporation is registered under the Companies Act 1956.
• RRECL is acting as a state nodal.
• Agency to promote and develop non-conventional energy sources in the State and as State Designated Agency (SDA) to implement the provisions of Energy Conservation Act 2001 in the State 

Additional Information

• Rajasthan State Power Corporation Ltd. was established in 2002 AD.
• Rajasthan Energy Development Agency was established on 21 January 1985 AD.

The correct answer is Option 4.

Key Points

• The new industrial policy, announced by the government on 23 July 1991 had initiated a bigger process of economic reforms in the country, seriously
  motivated towards the structural readjustment naturally obliged to ‘fulfil’ IMF conditions.
• The major highlights of the policy are as follows:
  • De-reservation of the Industries. Hence, statement 1 is correct.
  • De-licencing of the Industries. Hence, statement 3 is correct.
    • There are only five industries that carry the burden of compulsory licensing-
      • Aerospace and defence-related electronics
      • Gun powder, industrial explosives, and detonating fuse
      • Dangerous chemicals
      • Tobacco, cigarette and related products
      • Alcoholic drinks
  • Abolition of the monopolistic and restrictive trade practices (MRTP) Limit. Hence, statement 2 is correct.
  • Promotion to Foreign Investment.
  • Foreign Exchange Regulation Act (FERA) Replaced by the Foreign Exchange Management Act (FEMA). Hence, statement 4 is incorrect.

The correct answer is Inflation.

Key Points

• Inflation:
  • ​Inflation is an increase in the level of prices of the goods and services that households buy.
  • It is measured as the rate of change of those prices.
  • The well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.
  • Inflation refers to the increase in the prices of the goods and services of daily use, such as food, housing, clothing, transport, recreation, consumer staples, etc.
  • Inflation is calculated in India by the Ministry of Statistics and Program Implementation.

Additional Information

• Deflation: 
  • ​It is also called negative inflation.
  • During a deflationary period, prices fall in the same way as they arise in the case of inflation: continuously and in a generalized manner.
• Stagflation:
  • ​Stagflation is the extreme economic situation, a peculiar combination of stagnant growth and rising inflation leading to high unemployment.
  • Causes of Stagflation:
    • ​Government expansion of the money supply.
    • Decreasing level of Productivity.
    • Supply-side shock.
    • Increasing structural Unemployment.
    • Central bank raising Interest rates.
    • A sudden increase in oil prices.
  • Hyperinflation:​
    • It is the situation when the price of goods and services rises uncontrollably over a definite time period.
    • It is also called Rapid Inflation.