Daily Current Affairs (MCQ) | Date 09.02.22

Q1. Consider the following statements

1. According to the economic survey 2021-2022, Advance estimates suggest that GDP will record an expansion of 9.2 per cent in 2021- 22
2. The level of real economic output in 2021-2022 will surpass the preCOVID level of 2019-20

Which of the above is/are correct?

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer : c

Why is the Question ?

Advance estimates suggest that GDP will record an expansion of 9.2 per cent in 2021-22. This implies that the level of real economic output will surpass the pre-COVID level of 2019-20.

Q2. Consider the following statements

1. The agricultural sector was the least impacted by the pandemicrelated disruptions
2. This sector now accounts for 38.8 percent of Gross value Addition

Which of the above is/are correct?

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer : a

Why is the Question ?

Not surprisingly, the agricultural sector was the least impacted by the pandemic-related disruptions. It is estimated to grow 3.9 per cent in 2021- 22 on top of 3.6 per cent and 4.3 per cent respectively in the previous two years. This sector now accounts for 18.8 percent of GVA.

Q3. Consider the following statements about the Agile approach discussed in the economic survey 2021-2022

1. The Agile framework responds by assessing outcomes in short iterations and constantly adjusting incrementally based on real time data
2. This is the thinking reflected in five-year economic plans, and rigid urban master-plans

Which of the above is/are correct?

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer : a

Why is the Question ?

The Agile approach is a well-established intellectual framework that is increasingly used in fields like project management and technology development. In an uncertain environment, the Agile framework responds by assessing outcomes in short iterations and constantly adjusting incrementally. It is important here to distinguish Agile from the “Waterfall” framework which has been the conventional method for framing policy in India and most of the world. The Waterfall approach entails a detailed, initial assessment of the problem followed by a rigid upfront plan for implementation. This methodology works on the premise that all requirements can be understood at the beginning and therefore precommits to a certain path of action. This is the thinking reflected in fiveyear economic plans, and rigid urban master-plans.

While some form of feedback-loop based policy-making was always possible, it is particularly effective at a time when we have a wealth of realtime data. Over the last two years, the Government leveraged a host of High Frequency Indicators (HFIs) both from government departments/agencies as well as private institutions that enabled constant monitoring and iterative adaptations. Such information includes GST collections, power consumption, mobility indicators, digital payments, satellite photographs, cargo movements, highway toll collections, and so on. These HFIs helped policy makers tailor their responses to an evolving situation rather than rely on predefined responses of a Waterfall framework.

Q4. PM SVANidhi Scheme is intended to benefit

a. The Ministry of Micro, Small and Medium Enterprises (MSMEs)
b. Urban street vendors
c. Farmers
d. Women Self Help Groups

Answer : b

Why is the Question ?

PM SVANidhi Scheme to provide working capital loan to urban street vendors to resume their businesses 

Q5. Consider the following statements

1. As of end-November 2021, India was the fourth largest foreign exchange reserves holder in the world after China, Japan, and Switzerland
2. Indian foreign exchange reserves declined during pandemic

Which of the above is/are incorrect?

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer : b

Why is the Question ?

Despite all the disruptions caused by the global pandemic, India’s balance of payments remained in surplus throughout the last two years. This allowed the Reserve Bank of India to keep accumulating foreign exchange reserves, which stood at US$634 billion on 31st December 2021). This is equivalent to 13.2 months of imports and higher than the country’s external debt. As of end-November 2021, India was the fourth largest foreign exchange reserves holder in the world after China, Japan, and Switzerland. A sizable accretion in reserves led to an improvement in external vulnerability indicators such as foreign exchange reserves to total external debt, short-term debt to foreign exchange reserves, etc.