ID : 1070145 Name : POLATHALA NAGARJUNA

Test : [Daily test 28th June 2019] Date : 28-Jun-2019

1) With regard to Producer Price Index (PPI) which of the following is not correct?

(a) It measures the average change in selling prices received by domestic producers of goods and services
over time [13.33%]

(b) It measures the price of goods sold by the first wholesaler to the next smaller wholesaler or the retailers
[25%]

(c) It measures the price of goods sold by the producer to the first buyer i.e. wholesalers. [18.33%]

(d) It is released in a report by the Bureau of Labor Statistics [15%]

Your Answer : Result : Incorrect Correct by : 25%

Source : THE HINDU

Explanation :-
Producer Price Index (PPI):
1. It measures the average change over time in the selling prices received by domestic producers of goods and services.
2. PPIs measure price change from the perspective of the seller and differs from other indexes, such as the Consumer Price
Index, that measure price change from the purchaser's perspective.
3. It measures the price of goods sold by the producer to the first buyer i.e. wholesalers.
4. PPI is measured monthly and is released in a report by the Bureau of Labor Statistics.

Statement "B" is related to Wholesale Price Index

2) With reference to Non permanent membership of India to UN Security Council:

1. India was elected as non permanent member seven times so far.
2. India needs the vote of two-thirds of the 193 UN General Assembly members to win.
Select the correct statements using given code below

(a) 1 only [13.33%]

(b) 2 only [6.67%]

(c) Both 1 and 2 [61.67%]

(d) Neither 1 nor 2 [6.67%]

Your Answer : Result : Incorrect Correct by : 61.67%

Source : THE HINDU
Explanation :-
Context: 54 nations back India for UNSC non-permanent Seat [Page No. 1], (Source: The HIndu, 27th, 2019)

UN Security Council:
? One of the six principal organs of the United Nations
? To maintain international peace and security
? Composition: 15 (5-permanent, 10-nonpermanent)
? Presidency rotates monthly among its members
? Permanent members: Russia, the United Kingdom, France, China, and the United States.

Non permanent membership:

? Elected on regional basis (10 seats divided into 5 regional groups)
? Tenure: two-years

7 times India was elected as non permanent member

? India needs the vote of two-thirds of the 193 UN General Assembly members to win

3) Which of the following statements is/are not correct regarding Objectives of Draft National
logistics policy ?

(a) To increase the logistics cost from the present 10 percent of GDP to 14 percent. [21.67%]

(b) Improve India’s ranking in the Logistics Performance Index to between 25 to 30. [3.33%]

(c) Creating a National Logistics e-marketplace as a one stop marketplace. [1.67%]

(d) All the statements are correct [31.67%]

Your Answer : Result : Incorrect Correct by : 21.67%

Source : PIB
Explanation :-
Context: Commerce and Industry minister review Draft National logistics policy, (Source: 27th June 2019)

Union minister of commerce and industry reviewed the draft National Logistics policy and the proposed action plan for
implementation of the policy prepared by the department of logistics.

Improving the first mile and last mile connectivity to expand market access of farmers, MSMEs, and small businesses.
Creating a National Logistics e-marketplace as a one-stop marketplace.
Logistics cost in India is around 14 percent of the GDP, and the sector is unorganized.

Vision and objectives of the policy:

To reduce the logistics cost from the present 14 percent of GDP to 9 percent.
Improve India’s ranking in the Logistics Performance Index to between 25 to 30.
Providing impetus to the MSME sector in the country through a cost-effective logistics network.
4) Consider the following statements regarding wholesale price index (WPI),Consider the
following statements;
1. WPI is used as an important measure of inflation in India.
2. The current series of wholesale price index with 2011-12 as base year was introduced in
May 2018.
3. The government reconstituted the working group to revising WPI chaired by NITI Aayog
member.
Select the correct statements using given code below;

(a) 1 only [11.67%]

(b) 2 and 3 [13.33%]

(c) 1 and 3 [13.33%]

(d) 1, 2 and 3 [28.33%]

Your Answer : Result : Incorrect Correct by : 13.33%

Source : THE HINDU

Explanation :-
Context: Government revamps WPI revision team To choose the most appropriate base year, Page-13, (Source: The Hindu,
28th, 2019)

Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded
between organizations instead of consumers. WPI is used as a measure of inflation in some economies. Description: WPI is
used as an important measure of inflation in India.

The government has reconstituted the working group tasked with revising the current wholesale price index (WPI), it
announced on Thursday.

The terms of reference (ToR) of the working group include selecting the most appropriate base year for the preparation of a
new official series of index numbers of the wholesale price (WPI) and producer price index (PPI) in India.

The working group will also have to review the commodity basket of the current WPI series and suggest additions or deletions
of commodities in the light of structural changes that occurred in the economy since 2011-12.

The ToRs also include a review of the existing system of price collection and suggesting improvements, along with coming up
with a computational methodology to be adopted for the monthly WPI and PPI.

“The current series of wholesale price index with 2011-12 as the base year was introduced in May 2017,” the Ministry of
Commerce said in a statement

5) Which of the following statements is/are correct regarding the non-banking financial
companies (NBFC)?
(a) NBFCs cannot accept public deposits. [33.33%]

(b) Bank borrowings, debentures, and commercial papers are the major sources of funding. [21.67%]

(c) Gross non-performing assets (NPA) of the NBFC sector as a percentage of total advances decreased.
[16.67%]

(d) The net NPA ratio increased substantially. [3.33%]

Your Answer : Result : Incorrect Correct by : 21.67%

Source : THE HINDU

Explanation :-
Context: NBFC crisis separated the good from the bad, says RBI, ‘Firms with strong fundamentals managed their liquidity’,
Page- 13, (Source: The Hindu, 28th, 2019)

The on-going crisis in the non-banking financial companies (NBFC) sector has brought it under greater market discipline, even
as the better performing companies continued to raise funds, while those with an asset liability mismatch and asset quality
concerns faced higher borrowing costs, the Reserve Bank of India said in its half-yearly Financial Stability Report.

NBFCs are facing a crisis of confidence post the IL&FS debt default in September last year, with a sharp increase in their
borrowing costs.

As on March 31, there were 9,659 NBFCs registered with the RBI, of which 88 can accept public deposits.

While bank borrowings, debentures and commercial papers are the major sources of funding for the NBFCs, borrowings from
banks have shown an increasing trend as their (banks) share in total borrowings has increased from 23.6% in March 2018 to
29.2% in March 2019 and NBFCs’ dependence on debentures declined.

“This indicates that banks are compensating for the reduced market access for NBFCs in the wake of stress in the sector,” the
RBI said. Commercial paper issuance by NBFCs sharply declined post the IL&FS default.

Gross non-performing assets (NPA) of the NBFC sector as a percentage of total advances increased from 5.8% in 2017-18 to
6.6% in 2018-19, though the net NPA ratio declined marginally.

Their capital adequacy ratio (CAR) also moderated to 19.3% as on March 2019 as compared to 22.8% a year ago. The stress
test revealed that their CAR may decline further.

6) Who is the regulator of mutual funds (MFs)?

(a) The Reserve Bank of India (RBI) [6.67%]

(b) The Insurance Regulatory and Development Authority of India (IRDAI) [10%]

(c) Pension Fund Regulatory and Development Authority(PFRDA) [1.67%]

(d) The Securities and Exchange Board of India (SEBI) [76.67%]

Your Answer : Result : Incorrect Correct by : 76.67%

Source : THE HINDU

Explanation :-
Context: SEBI tightens norms for MF investments, Regulator does not recognize funds’ standstill agreements with company
promoters. (Source: The Hindu, 28th, 2019)

Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI). Indian mutual funds are subject to
stringent requirements about who is eligible to start a fund, how the fund is managed and administrated and how much capital a
fund must have on hand.

SEBI said MFs will now be mandated to invest in only listed non-convertible debentures. All fresh investments by MFs in
commercial papers (CPs) and equities will also be allowed only in listed securities and liquid mutual fund schemes will have to
hold at least 20% in liquid assets.

In a reaction to a series of credit-related events that put investor money at risk, markets regulator Securities and Exchange
Board of India (SEBI) on Thursday tightened norms on investments by mutual funds (MFs).

Vowing to take action against MFs getting into standstill agreements with the promoters of companies, SEBI Chairman, Ajay
Tyagi said, “We don’t recognize any such standstill agreements. MFs are not banks and there is nothing called ‘standstill’.
They (MFs) are investing rather than lending and some of these restrictions have been put to bring in more discipline.”

7) Which of the following statements is/are incorrect regarding capital adequacy ratio?

(a) The Basel III norms stipulated a capital to risk weighted assets of 8%. [6.67%]

(b) The overall capital adequacy ratio of commercial banks declined after capital infusion to PSU banks.
[21.67%]

(c) As per RBI norms, Indian scheduled commercial banks are required to maintain a CAR of 9%. [13.33%]

(d) Indian public sector banks are emphasized to maintain a CAR of 12%. [11.67%]

Your Answer : Result : Incorrect Correct by : 21.67%

Source : THE HINDU

Explanation :-
Context: NPAs down, credit growth picking up: RBI, Capital infusion helps improve CAR, Page-13,(Source: The Hindu, 28th,
2019)

Gross non-performing assets in the banking system have declined for the second consecutive half year, while credit growth is
picking up, the Reserve Bank of India (RBI) said in the half-yearly Financial Stability report.

Gross NPAs could further decline to 9% by March 2020, the macro stress tests indicated.

Following capital infusion by the government in public sector banks, the overall capital adequacy ratio of commercial banks
improved from 13.7% in September 2018 to 14.3% in March 2019, with state-run banks’ CAR improving from 11.3% to
12.2% during the period. However, there was a marginal decline in the CAR of private sector banks.
Capital Adequacy Ratio is also known as Capital to Risk Assets Ratio, is the ratio of a bank's capital to its risk. National
regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital
requirements. It is a measure of a bank's capital.

The Basel III norms stipulated a capital to risk-weighted assets of 8%. However, as per RBI norms, Indian scheduled
commercial banks are required to maintain a CAR of 9% while Indian public sector banks are emphasized to maintain a CAR
of 12%.

8) With reference to The micro, small and medium enterprises (MSME) sector ;
1. It is contributing more than 28% of the GDP and about 45% to manufacturing output.
2. RBI sets up committee under UK Sinha to study MSMEs to undertake a comprehensive
review.
Select the correct statements using given code below;

(a) 1 only [15%]

(b) 2 only [5%]

(c) Both 1 and 2 [53.33%]

(d) Neither 1 nor 2 [0%]

Your Answer : Result : Incorrect Correct by : 53.33%

Source : THE HINDU

Explanation :-
Context: Prudent prescription, An RBI panel’s suggestions on the MSME sector cut to the heart of crucial issues, Page-8,
(Source: The Hindu, 28th, 2019)

The micro, small and medium enterprises (MSME) sector in India is not only a key engine of growth, contributing more than
28% of the GDP and about 45% to manufacturing output. It is also a true reflection of economics where people really matter.
Providing employment to about 111 million people, the sector’s health is crucial to the economy’s vitality and society’s well
being. An expert committee constituted by the Reserve Bank of India has in this context submitted a substantially germane
study on the issues bedeviling MSMEs and made a fairly exhaustive set of recommendations to redress them.

In January 2019, RBI constituted the expert committee on MSMEs to undertake a comprehensive review of the sector and to
identify causes and propose long-term solutions.

The panel is emphatic that the policy environment needs to be urgently refocussed. To that end, it is imperative that the thrust
of the enabling legislation — a 13-year-old law, the MSME Development Act, 2006 — be changed to prioritize market
facilitation and ease of doing business.

9) Which of the following statement(s) is/are true regarding the concept of SMART Police and
‘Ranking of Police Stations 2018’ report?
1. The status of the concept of SMART Policing introduced in 2014.
2. Its objective is the police force must be strict and sensitive, modern and mobile, alert and
accountable, reliable and responsive, techno-savvy and trained.
3. The ‘Ranking of Police Stations 2018’ report published by NITI Aayog.
Select the correct statements using the code given below:

(a) 1 and 2 [25%]

(b) 2 and 3 [5%]

(c) 1 and 3 [5%]

(d) 1, 2 and 3 [15%]

Your Answer : Result : Incorrect Correct by : 25%

Source : THE HINDU

Explanation :-
Context: Three police stations from State in the top list, Two in Nalgonda and one in Siddipet find a place in ‘SMART list’ for
2018. Page-4, (Source: The Hindu, 28th, 2019)

The Prime Minister of India had introduced the concept of SMART Police (S-Sensitive and Strict; M-Modern with mobility; A-
Alert and Accountable; R- Reliable and Responsive; T- Trained and Techno-savvy) during the 49th Directors General/
Inspectors General Annual Conference at Guwahati on Nov. 30, 2014.

Two police stations in old undivided Nalgonda and one from Siddipet district have found a place in the Ministry of Home
Affairs’ SMART list of police stations for 2018.

Narayanpur police station in Choutuppal of Yadadri Bhuvnagiri bagged the 14th position, Chintapalli police station in
Devarakonda of Nalgonda stood at 24th and Bejjanki police station of Siddipet was 41 in the list of 87.

The model adopted for the survey was the ‘SMART call’ given by Prime Minister Narendra Modi during the 2015 DGP
conference in Gujarat — that the police force must be strict and sensitive, modern and mobile, alert and accountable, reliable and
responsive, techno-savvy and trained. And a survey design by the Bureau of Police Research and Development (BPR&D),
planned the study in two parts – performance, and infrastructure and citizen feedback, given a weightage of 80% and 20%
respectively.

According to the ‘Ranking of Police Stations 2018’ report published by the Ministry of Home Affairs, the Quality Council of
India selected a total 15,666 police stations, from CCTNS – Crime and Criminal Tracking Network and System data uploaded
by each police station.

And most evaluation of performance was on three criteria – crimes against women, crimes against SC/ST and property
offences.

10) Which of the following statement(s) is/are true regarding Mission on natural language
translation?
1. To make science and technology accessible to all by teaching and researching material
bilingually in English, native Indian language.
2. The IT ministry implements the mission along with Ministry of Human Resource
Development and Department of Science and Technology.
Select the correct statements using given code below;

(a) 1 only [8.33%]

(b) 2 only [3.33%]

(c) Both 1 and 2 [50%]

(d) Neither 1 nor 2 [1.67%]

Your Answer : Result : Incorrect Correct by : 50%

Source : THE HINDU

Explanation :-
Context: Mission on natural language translation, ?450 crore-proposal is part of the 100-day action plan charted out by MeitY,
Page-11, (Source: The Hindu, 28th, 2019)

The Ministry of Electronics and IT will soon place before the Union Cabinet a Rs 450 crore proposal for Natural Language
Translation — one of the key missions identified by the Prime Minister’s Science, Technology and Innovation Advisory
Council (PM-STIAC).

The national mission on natural language translation aims to make science and technology accessible to all by facilitating
access to teaching and researching material bilingually — in English and in one’s native Indian language. To achieve this, the
government plans to leverage a combination of machine translation and human translation.

Translation activities can also help generate employment for educated unemployed, he pointed out, adding that the mission
would help not just students who find it difficult to access knowledge because of the language barrier, but also teachers,
authors, publishers, translation software developers, and general readers.

The IT ministry is the lead agency for implementation of the mission along with the Ministry of Human Resource Development
and Department of Science and Technology. The PM- STIAC is an overarching body that identifies challenges in certain areas
of science and technology.

11) With respect to the "Ayushman Bharat" scheme, consider the following statements:

1. It is a central sector scheme, which gives health insurance for poor families for secondary
and tertiary health care.
2. There is no restriction on the basis of family size, age or gender.
3. It includes both pre and post-hospitalization expenses.

Which of the statement(s) given above is/are correct?

(a) 1 only [11.67%]

(b) 1 and 2 only [20%]

(c) 2 and 3 only [25%]

(d) 1, 2 and 3 [30%]

Your Answer : Result : Incorrect Correct by : 25%

Source : PIB
Explanation :-
Context: For universal access to public healthcare (Source: PIB)

It is a centrally sponsored scheme but not central sector scheme.

AB-NHPM aims to target over 10 crore families belonging to poor and vulnerable population based on Socio Economic and
Caste Census 2011 (SECC) database. It will cover of Rs 5 lakh per family per year, taking care of almost all secondary care and
tertiary care procedures. There will be no cap on family size and age in the scheme. The scheme integrates two on-going
centrally sponsored schemes viz. Rashtriya Swasthya Bima Yojana (RSBY) and Senior Citizen Health Insurance Scheme
(SCHIS).

Benefit cover: It includes pre and post-hospitalisation expenses. It will cover all pre-existing conditions from beginning of the
policy. It will also pay defined transport allowance per hospitalization to the beneficiary.

Cashless benefits: The scheme allows the beneficiary to take cashless benefits from any public or private empanelled hospitals
across the country. The payment for treatment will be done on package rate which will be defined by Government in advance
basis. The package rates will include all the costs associated with treatment.

Role of state governments: They are allowed to expand the scheme both horizontally and vertically. They are also free to
choose modalities for implementation. They can implement through insurance company or directly through Trust/ Society or a
mixed model. States/UTs will have also flexibility to modify these rates within limited bandwidth.

Council: For giving policy directions and fostering coordination between Centre and States, Ayushman Bharat National Health
Protection Mission Council (AB-NHPMC) will be set up at apex level. It will be chaired by Union Health and Family Welfare
Minister.

12) Consider the following statements with respect to "National Action Plan for Drug Demand
Reduction (NAPDDR)":
1. It is a 5-year action plan for addressing the problem of drug and substance abuse in the
country.
2. The action plan will only focus on de-addiction and rehabilitation of the drug abuse.
3. The action plan was drafted by the Ministry of Social Justice and Empowerment.

Which of the statement(s) given above is/are correct?

(a) 1 only [8.33%]

(b) 2 and 3 only [3.33%]

(c) 1 and 3 only [20%]

(d) 1, 2 and 3 [21.67%]

Your Answer : Result : Incorrect Correct by : 20%

Source : PIB
Explanation :-
Context: Ministry of social justice & Empowerment observes ‘International Day against drug abuse and illicit trafficking’.
(Source: PIB)
A national level function was held by the MOSJ&E, attended by vice president and other dignitaries, to generate public
awareness about the ill-effects of drug abuse and launched a campaign to fight against drug abuse.

Highlights:
? The magnitude of the problem necessitates for a governance approach to address the issue of drug abuse.
? The ministry identified high risk districts which require special attention in order to increase community participation and
public cooperation in reducing the drug demand.
? The menace of drug abuse is rising, mostly among the teenagers and youth, across the word and India is no exception.
? Presented a report on “The National Survey on Extent and Pattern of Substance Use” and “National Action Plan for Drug
Demand Reduction (NAPDDR)”.

National Action Plan for Drug Demand Reduction (NAPDDR)

Action plan is for the years 2018-2023.

The plan aims to employ a multi-pronged strategy involving education, de-addiction and rehabilitation of affected individuals
and their families.

The Action Plan focuses on preventive education, awareness generation, counseling, treatment and rehabilitation of drug-
dependent people.

Training and capacity building of service providers through collaborative efforts of centre, states and NGOs.

Several measures like coordination with implementing agencies for controlling the sale of sedatives, painkillers and muscle
relaxant drugs, holding awareness generation programmes and checking online sale of drugs by stringent monitoring by the
cyber cell are proposed under the Action Plan.

Plan also proposes awareness generation through social, print, digital and online media, and engagement of celebrities, besides
strengthening the national toll-free helpline for drug prevention.

Persuading principals, directors, vice chancellors of educational institutions to ensure that no drugs are sold within/nearby the
campus.

13) Which of the following statements are correct with respect to the “Three-stage Nuclear
Energy Programme” of India?
1. In the first stage, natural uranium fuelled pressurized heavy water reactors (PHWR) produce
electricity while generating plutonium-239 as a by-product.
2. In the second stage, fast breeder reactors (FBRs) would use plutonium-239 (a by-product of
the first stage), and natural uranium.
3. In the final stage, a mix of thorium and uranium fuels the reactors and thorium transmutes to
U-233 which powers the reactor.
Select the correct answer using the code given below:

(a) 1 and 2 only [8.33%]

(b) 2 and 3 only [1.67%]

(c) 1 and 3 only [6.67%]

(d) 1, 2 and 3 [30%]

Your Answer : Result : Incorrect Correct by : 30%

Source : THE HINDU

Explanation :-
Context: Plan to make use of nuclear wastes (Source: PIB)

India’s three-stage nuclear power programme was formulated by Homi Bhabha in the 1950s to secure the country’s long term
energy independence, through the use of uranium and thorium reserves found in the monazite sands of coastal regions of South
India.
The ultimate focus of the programme is on enabling the thorium reserves of India to be utilized in meeting the country’s energy
requirements.
Thorium is particularly attractive for India, as it has only around 1–2% of the global uranium reserves, but one of the largest
shares of global thorium reserves. However, at present thorium is not economically viable because global uranium prices are
much lower. Thorium itself is not a fissile material, and thus cannot undergo fission to produce energy. Instead, it must be
transmuted to uranium-233 in a reactor fueled by other fissile materials [plutonium-239 or uranium-235].

Stage I – Pressurized Heavy Water Reactor [PHWR]

In the first stage of the programme, natural uranium fuelled pressurized heavy water reactors (PHWR) produce electricity while
generating plutonium-239 as by-product. Hence Statement 1 is correct.
[U-238 ? Plutonium-239 + Heat]
In PWHR, enrichment of Uranium to improve concentration of U-235 is not required. U-238 can be directly fed into the reactor
core.
[Natural uranium contains only 0.7% of the fissile isotope uranium-235. Most of the remaining 99.3% is uranium-238 which is
not fissile but can be converted in a reactor to the fissile isotope plutonium-239].
[Heavy water (deuterium oxide, D 2O) is used as moderator and coolant in PHWR].
PHWRs was a natural choice for implementing the first stage because it had the most efficient reactor design [uranium
enrichment not required] in terms of uranium utilisation. India correctly calculated that it would be easier to create heavy water
production facilities (required for PHWRs) than uranium enrichment facilities (required for LWRs). Almost the entire existing
base of Indian nuclear power (4780 MW) is composed of first stage PHWRs, with the exception of the two Boiling Water
Reactor (BWR) units.

Stage II – Fast Breeder Reactor (FBRs)

In the second stage, fast breeder reactors (FBRs) [moderators not required] would use plutonium-239, recovered by
reprocessing spent fuel from the first stage, and natural uranium. Hence Statement 2 is correct.
In FBRs, plutonium-239 undergoes fission to produce energy, while the uranium-238 present in the fuel transmutes to
additional plutonium-239. Uranium-235 and Plutonium-239 can sustain a chain reaction. But Uranium-238 cannot sustain a
chain reaction. So it is transmuted to Plutonium-239.
Once the inventory of plutonium-239 is built up thorium can be introduced as a blanket material in the reactor and transmuted
to uranium-233 for use in the third stage.
The surplus plutonium bred in each fast reactor can be used to set up more such reactors, and might thus grow the Indian civil
nuclear power capacity till the point where the third stage reactors using thorium as fuel can be brought online.

Stage III – Thorium Based Reactors

In the final stage, a mix of thorium and uranium fuels the reactors. The thorium transmutes to U-233 which powers the reactor.
Fresh thorium can replace the depleted thorium [can be totally done away with uranium which is very scares in India] in the
reactor core, making it essentially a thorium-fuelled reactor [thorium keeps transmuting into U-233. It is U-233 that generates
the energy]. Hence Statement 3 is correct.

14) Which of the following statement(s) is/are TRUE with respect to "Logistics sector" in
India?

1. Recently the Logistics sector has removed from Infrastructure status, to focus singularly on
the sector.
2. The logistics cost in India is very low compared to developed countries.

Select the correct answer using the code given below:

(a) 1 only [16.67%]

(b) 2 only [6.67%]

(c) Both 1 and 2 [15%]

(d) Neither 1 nor 2 [16.67%]

Your Answer : Result : Incorrect Correct by : 16.67%

Source : PIB
Explanation :-
Context: Commerce and Industry minister review Draft National logistics policy (Source: PIB)

The Union Finance Ministry has granted Infrastructure Status to Logistics sector. Logistics Infrastructure was included by
insertion of new item in renamed category of ‘Transport and Logistics’.

The need for integrated Logistics sector development was felt in view of fact that logistics cost in India is very high compared
to developed countries. High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export
market.

15) Consider the following statements with respect to 'Regional Comprehensive Economic
Partnership (RCEP):

1. It is a free trade agreement between ASEAN (Association of South East Asian Nations) and
six other countries.
2. India is reluctant to the free movement of service professional in this free trade agreement.
 Which of the statement(s) given above is/are correct?

(a) 1 only [31.67%]

(b) 2 only [1.67%]

(c) Both 1 and 2 [45%]

(d) Neither 1 nor 2 [3.33%]

Your Answer : Result : Incorrect Correct by : 31.67%

Source : THE HINDU

Explanation :-
Context: RCEP (Regional Comprehensive Economic Partnership) next steps: on India’s free trade agreement.

Leaders of ASEAN and six of its dialogue partners have agreed to fasten the negotiations of the free trade deal between them.

Who are the ASEAN members?

Thailand, Indonesia, Malaysia, Singapore, Philippines, Vietnam, Brunei, Myanmar (Burma), Cambodia, Laos
Who are the other members of RCEP?
India, China, Japan, New Zealand, Australia, South Korea

What is the progress made in this regard?

The negotiations have been going on for many years now since the idea was first proposed.

Why has the progress been slow?

Some countries have expressed concerns over certain key trade issues. Example: India, Australia and New Zealand.

What are the issues highlighted by India?

Flooding of the market with Chinese goods; opening up market for free movement of service professionals, ‘Country of origin’
tag

What is the present stand of Indian government on RCEP?

It has reiterated its commitment to complete the negotiations.

Why is India willing to join RCEP in spite of all the challenges?

India would not like to miss out on framing the standards which could decide the future investment in India.

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