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The Correct Answer is Reserve Bank of India.

• In order to gradually implement Sharia-compliant or interest-free banking in the country, the Reserve Bank of India (RBI) has suggested the opening of Islamic windows in conventional banks.
• In this regard, RBI also prepared a report on a technical review and sent it to the Union Ministry of Finance for consideration.
• Islamic or Sharia banking is a method of finance focused on the principle that interest is not paid. Under Islam, the charging of interest is forbidden.
• There is no history of Indian banks in the Islamic or Sharia banking market. Islamic finance also has a lot of nuances.
• The matter also entails numerous regulatory and supervisory issues.

The correct answer is Economic Survey 2017-18.

• Son Meta-Preference is the phenomenon where parents continue to produce children until the desired number of sons are born.
• According to Economic Survey-2017-18, there are over 21 million ‘unwanted girls’ in India.
• Due to the strict implementation of the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act in India, the sex-selective abortion of a female fetus has become difficult.
• However, couples have adopted a different strategy where they’ll continue to produce children until the desired number of sons are born.
• Economic Survey 2017-18 has used the term ‘Son Meta-Preference’ to describe this phenomenon.
• According to this survey, there are over 21 million ‘unwanted girls’ in India who were when the couples wanted a male-child. 

The correct answer is All of the above.

• The impact of humans on global climate has been induced due to-
  • Deforestation for thousands of years
  • Sudden forest fires like Amazon forest fire, Australia bush fire, etc.
  • Overgrazing by cattle.
  • Wet paddy cultivation for thousands of years
  • Rapid industrialization has affected the global climate.
  • Hence the correct answer is All the above.

• Climate change includes global warmings driven by human emissions of greenhouse gases and other natural causes.
• It is causing large-scale shifts in weather patterns.
• Factors that affect climate change
  • Greenhouse Gases like Carbon dioxide, Chlorofluorocarbons retains the heat in the earth's atmosphere.
  • Change in the land use pattern.

The correct answer is 1966 - 69.

• There were three annual plans between 1966 and 1969.
  • This period was also called ‘plan holiday’.
• Plan Holidays' main reason was later deducted as war (Indo-Pakistan), inflation, and the severe drought.
• In a bid to increase the exports in the country, the government declared devaluation of the rupee.
• The Fourth Five-Year Plan was introduced only in 1969.

• On 9 July 1951, India’s first Prime Minister Jawaharlal Nehru presented the First Five-Year Plan to the Parliament.
• The Niti Aayog has replaced the Planning Commission by the Modi Cabinet and launched three-year action plans from April 1, 2017, onwards.
• The 12th five-year plan is considered as the last five-year plan of India.
  • Its duration is from 2012 to 2017, under the leadership of Manmohan Singh.
  • The theme is “Faster, More Inclusive and Sustainable Growth”.

The correct answer is the National Population Policy, 1976.

• In 1976, the government of India came up with its first National Population policy.
• The policy came up with a number of measures to arrest population growth.
• Some of the measures are:
  • Increasing the minimum legal age of marriage for girls and boys to 18 and 21 respectively. Hence option 1 is correct.
  • Monetary incentives for birth control.
  • Improving the literacy levels of females both through the formal and non-formal channels.
  • The population was made as a factor for sharing central resources with that of the states. Linking 8% of the central assistance to the State Plans by weighing the performance of the states in the family welfare programs.
  • Popularise family welfare programs by using all forms of media.
  • Inculcating population education into the formal education system.
• It was hitherto believed that development and education would themselves restrict the rate of population growth, while the government’s own program was restricted to family planning, by way of motivating people to accept family planning and providing clinical facilities and other services to its acceptors.

The correct answer is 2 3 and 6 only.

• Fixing Minimum Support Price for Agriculture for agricultural products of all crops and free electricity supply to farmers are subsidies, hence they are not categorized as public investment in agriculture.
• The waiver of agricultural loans by the banking system is a concession or indirect support. hence it is not considered as public investment in agriculture.
• Subsidies and incentives are not considered as public investment, hence statement 2 3, and 6 are correct codes.

• Recently in May 2020, the government announced Aatam Nirbhar Bharat Abhiyan and invested heavily in agriculture, These include-
  • The Agri Infra Fund of Rs 1 lakh crore for post-harvest infrastructure, a scheme for 10,000 farmer producer organizations.
  • Special drive to include 25 million farmers who still do not have the Kisan Credit Cards (KCC)
  •  developing a digital agri-stack which will be a key enabler for online marketplaces and smart agriculture.

The correct answer is ​Richard Musgrave.

• Public Goods :
  • The government provides certain goods and services which cannot be provided by the market mechanism i.e. by the exchange between individual consumers and producers. which are referred to as public goods.
  • Examples - National defence, Roads, Government administration, etc. 
• It is necessary to understand the difference between private goods and public goods-
  • The benefits of public goods are available to all and are not only restricted to one particular consumer.
  • For example, if a person eats chocolate or wears a shirt, these will not be available to others. It is said that this person’s consumption stands in rival relationship to the consumption of others.
  • However, if we consider a public park or measures to reduce air pollution, the benefits will be available to all.
  • One person’s consumption of a good does not reduce the amount available for consumption for others and so several people can enjoy the benefits, that is, the consumption of many people is not ‘rivalrous’.
  • In the case of private goods, anyone who does not pay for the goods can be excluded from enjoying its benefits. If you do not buy a ticket, you will not be allowed to watch a movie at a local cinema hall.
  • However, in the case of public goods, there is no feasible way of excluding anyone from enjoying the benefits of the good.
  • That is why public goods are called non-excludable. Even if some users do not pay, it is difficult and sometimes impossible to collect fees for the public good.

•  Merit Goods :
  • According to Richard Musgrave, some commodities or services should be judged on the basis of need, rather than ability and willingness to pay. 
  • Example - Subsidies for agriculture, poor people. 

The correct answer is a and c.

• The Sick Industrial Companies Act (SICA) 1985 :
  • An Act to make, in the public interest, special provisions with a view to securing the timely detection of sick and potentially sick companies owning industrial undertakings, the speedy determination by a Board of experts of the preventive, ameliorative, remedial and other measures which need to be taken with respect to such companies and the expeditious enforcement of the measures so determined and for matters connected therewith.

• The Reserve Bank of India has defined a sick unit as 
  • One “which has incurred a cash loss for one year and is likely to continue incurring losses for the current year as well as in the following year.
  • The unit has an imbalance in its financial structure, such as the current ratio is less than 1 :1 and there is a worsening trend in the debt-equity ratio.

• However, prior to the enactment of the Sick Industrial Companies Act (SICA) in 1985, there was no agreement on the criteria to be used to describe an industrial unit as sick.
• According to SICA, as amended in 1992, an industrial company can be declared as sick which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
• It may be noted that the Sick Industrial Companies Act (SICA) applies to registered companies that have been in existence for at least 5 years.

The correct answer is A only.

• Foreign capital allows strengthening infrastructure, increasing productivity, and creating employment opportunities.
• Also, it acts as a medium to acquire advanced technology and mobilize foreign exchange resources.
• Availability of foreign exchange reserves in the country allows RBI (the central bank) to intervene in the foreign exchange market and control any adverse movement in order to stabilize the foreign exchange rates. 

• Role of Foreign capital and technology :
  • Foreign companies carry a broad international marketing network and marketing information which helps in promoting domestic products across the globe. Hence, FDI encourages export-oriented activities that improve the exports of the country.
  • Foreign capital creates a competitive environment in the country which leads to higher efficiency and good quality of products and services.
  • It is the major source of foreign exchange reserves in the country. This inflow of foreign currency in the economy allows the government to generate adequate resources which help to stabilize the Balance of Payment.
  • Foreign capital also brings new technology which modernizes businesses in a country.
• Forms of Foreign capital :
  • Foreign direct investment is building or purchasing businesses and their associated infrastructure in a foreign country. 
  • Foreign portfolio investment is the purchase of securities of foreign countries, such as stocks and bonds, on an exchange. Hence, statement b is not correct.
• For want of experience, domestic capital and entrepreneurship may not flow into certain lines of production or areas. Foreign capital can show the way for domestic capital.
  • Example - Bullet train, Hyperloop etc. which brings Foreign capital as well as new technology in the economy which helps in faster economic growth.

The correct answer is It is the minimum amount banks deposit with the Reserve bank of India.

Cash Reserve Ratio or CRR is the minimum amount banks have to deposit or keep with the Reserve Bank of India (RBI), and not with themselves.

• CRR is kept in form of cash and Banks earn no interest in these deposits.
• CRR is primarily for the purpose of security of depositors' savings by reserving part of the money with the central bank. Another function of CRR is as a tool to control monetary policy by the RBI. Thus, when inflation (price rise) is positive, the raising of CRR reduces available funds with the banks to lend, and hence reduces the circulation of money in the economy.
• Other information: CRR is decided by the RBI's Monetary Policy Committee. Currently, CRR is 3%.

The correct answer is To produce goods 

• In economics, producers are often referred to as firms or companies that play a role in using inputs and producing goods and services.
• Firms play a key role in deciding what to produce and how to produce. 
• Other functions include:
  • Firms employ different factors of production.
  • Developing new products.
  • Investing in capital and new technology.
  • Providing goods and services for the consumer. 
• Public expenditure is done by the Government.
• Generation of income and savings is primarily an individualistic action. 

The correct answer is Greek

• Macroeconomics is the study of making decisions by the nation or aggregate economy.
• Macroeconomics studies concepts like economic growth, national income, gross domestic product (GDP).
• The word "Macro” has been taken from the “Greek” language.

The correct answer is Rs. 200 lakh.

• Both new and existing MSMEs can avail credit under the scheme.
• For the guarantee scheme, up to 75% of the loan allowed under the Credit Guarantee Scheme is covered under the guarantee up to a maximum of Rs 50 lakh.
• The guarantee cover is provided for 5 years or above in blocks of 5 years

• The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector.
• Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI) established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. 
• The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility.
• The extent of guarantee cover is 85% for micro-enterprises for credit up to Rs 5 lakh.
• The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from Rs 10 lakh to Rs 100 lakh per MSE borrower for retail trade activity.

The correct answer is Integration.

• Globalization is the process by which ideas, goods, and services spread throughout the world.
• Globalization is often used in an economic context to describe an integrated economy marked by free trade, the free flow of capital, and corporate use of foreign labor markets to maximize returns and benefit the common good.
• The three types of globalization
  • Economic globalization
  • Political globalization
  • Cultural globalization

• Advantages of Globalization
  • Greater access to global markets
  • Advanced technology
• India’s share in global trade (merchandise and services) was 2.1% (481.74 USD billion out of a total 23,044 USD billion) for exports and 2.6% (600.62 USD billion out of total 23,112 USD billion) for imports in 2017.

The correct answer is 1 only

• A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. Hence, statement 1 is correct.
• It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment.
• A significant fall in spending generally leads to a recession. Hence, statement 2 is incorrect.
• Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply or increasing government spending and decreasing taxation.
• In the past 69 years, India has seen a recession only thrice – as per available data – in fiscals 1958, 1966 and 1980. The reason was the same each time – a monsoon shock that hit agriculture, then a sizeable part of the economy. Hence, statement 3 is incorrect.

The correct answer is Increase in expenditure on public projects.

• An economic recession is typically defined as a decline in the gross domestic product (GDP) for two or more consecutive quarters. 
• High-interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest. Hence statements 1 and 3 are not correct
• Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.
• An increase in public expenditure rises GDP by the same amount, other things equal.
• Moreover, since income is an important determinant of consumption, that increase in income will be followed by a rise in consumption.
• Public expenditure plays four main roles:
  • It contributes to current effective demand;
  • It expresses a coordinated impulse on the economy, which can be used for stabilization, business cycle inversion, and growth purposes;
  • It increases the public endowment of goods for everybody;
  • It gives rise to positive externalities to the economy and society as a whole (or in specific sectors and geographical areas), the more so through its capital component. Hence statement 2 is correct.

The correct answer is Consumer Price Index-Combined (CPI-C).

• In India, headline inflation is based on Consumer Price Index-Combined (CPI-C).
• Headline inflation is the total inflation in an economy. 
• The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy.
• It is different from core inflation, which excludes food and energy prices while calculating inflation.
• Most central banks use headline inflation or a similar measure as their target variable.
• The reason being headline inflation is a broad measure that closely represents the basket of goods and services consumed by most households. RBI also uses Headline Inflation.
• India's headline CPI for September dropped sharply to 5.35% YoY from 5.3% in August.

The correct answer is 1 only.

• The Planning Commission was set up in 1950 with the Prime Minister as its Chairperson.
  • It started the era of five-year plans.
  • The goals of the five-year plans were growth, modernization, self-reliance, and equity. Hence, Statement 1 is correct.
  • This does not mean that all goals had equal importance.
  • Due to limited resources, a choice should be made about their priorities.
• The Second Five year Plan was based on the ideas of the Mahalanobis. Hence, Statement 2 is incorrect.
  • He is regarded as the architect of Indian planning.
  • Mahalanobis established the Indian Statistical Institute (ISI) in Calcutta and started a journal, Sankhya.

the correct answer is 1 only.

• MGNREGA is one of the largest work guarantee programs in the world.
• The primary objective of the scheme is to guarantee 100 days of employment in every financial year to all the adult members of any rural household willing to do public work-related unskilled manual work.
• Salient Features of the Act:
  • Applicable for all villages in the District.
  • Every rural household has the right to register under MGNREGA.
  • Job cards are issued to every household registered under MGNREGA. Hence, Statement 4 is correct.
  • Job cards are issued within 15 days from the date of receipt of an application for the job card registration.
  • The registered job cardholders can seek employment by giving a group / individual application.
  • The village community has the right to choose works under 8 permissible categories of works.
  • “Shelf of works” will be identified by the village community for 5 yrs which can be taken up in their villages as per the job demand and entitled personals.
  • The works proposed by the village community cannot be altered by anyone unless they are not in conformity with the guidelines of MGNREGA.
  • The work shall be provided within 5 km jurisdiction from the village.
  • If the work provided is beyond 5 Kms, the job seekers shall be given 10% of the minimum wages as an additional amount
  • State Govt. to pay 25% of the minimum wage for the 1st 30 days as compensatory daily unemployment allowance on failure to provide employment for the families demanding the works under MGNREG Act, and 1/2 of the wage for the remaining period of the year
  • Wages are paid according to the State Minimum Wage rate notified under the Minimum Wages Act 1948.
  • Equal payment for men and women.
  • Wages to be paid within a fortnight. Hence, Statement 2 is correct.
  • The Act provides a legal right to employment for adult members of rural households. At least one-third of beneficiaries have to be women. Hence, Statement 3 is correct.
  • Worksite facilities such as creche, drinking water, and shade have to be provided.
  • 60:40 wage and the material ratio have to be maintained for all works undertaken under MNREGA.
  • No contractors and machinery are allowed Hence, Statement 1 is incorrect.
  • Grievance redressal mechanism to be set up for ensuring a responsive implementation process.
  • Social Audit is a must for all the works implemented under NREGA.
  • Provisions of the RTI Act shall be applicable to ensure transparency and accountability​.

The correct answer is None of the above.

• Accelerated Irrigation Benefit Program (AIBP) :
  • It was launched by the Government of India during 1996-97 to provide financial assistance to State Governments with the aim of speeding up the implementation of on-going irrigation projects.
  • It is currently implemented by the Ministry of Water Resources, River Development, and Ganga Rejuvenation. Hence pair 1 is incorrectly matched.
  • Projects included -
    • Major/Medium Irrigation (MMI) including Extension, Renovation and Modernization (ERM) of irrigation projects
    • Surface Minor Irrigation schemes (SMI)
    • Lift Irrigation Schemes (LIS)
• Watershed management programs in India -
  • To accelerate the pace of development of wastelands/degraded lands the Government had set up the National Wastelands Development Board in 1985 under the Ministry of Environment and Forests.
  • Later a separate Department of Wastelands Development in the Ministry of Rural Development and Poverty Alleviation was created in 1992 and the National Wastelands Development Board was transferred to it.
  • In April 1999, the Department of Wastelands Development was renamed as the Department of Land Resources to act as the nodal agency for land resource management. Hence pair 2 is incorrectly matched.
• On-farm water management focuses primarily on enhancing water use efficiency by promoting efficient on-farm water management technologies and equipment.
  • It has been implemented under Ministry of Agriculture.  Hence pair 3 is incorrectly matched.
  • This will not only focus on application efficiency but, in conjunction with the RAD component, also will emphasize effective harvesting & management of rainwater.
  • Assistance will be extended for adopting water conservation technologies, efficient delivery and distribution systems, etc.

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
  • It was launched in 2015-16.
  • PMKSY has been conceived amalgamating of ongoing schemes such as Accelerated Irrigation benefit scheme, Integrated watershed management program, On-farm water management - Ministry of Agriculture 

The correct answer is Maternity Benefit Act

• Under the Maternity Benefit Act, women employees get the benefit without the contribution.
• Under the Employees State Insurance Act employee contribution is 0.75%.
• Under the Employees Provident Funds and Miscellaneous Provisions Act employee contribution is 12%.

Important Features of the Maternity Benefit Act 

• The Act gives effect to the directive principle as provided under Article 42 of the Constitution.
• This act is applicable to all establishments including factories, plantations, mines under the control of the central government.
• The act is applicable to an establishment where 10 or more people are employed.
• The state government can add any establishment under this act after taking approval from the central government and giving two months notification.
• This act does not apply to establishment which is covered under the Employee State Insurance Act 1948. Except

1. Women employees not covered under the ESI Act 1948 and
2. Women employees whose wages exceed 21000 of ESI Act wage limit.

• Responsibility of an employee to avail benefit

1. The woman must work at least 80 days or more in the last 12 months immediately preceding the date of her expected delivery.
2. Before ten-week of her expected delivery, she may ask her employer to give her light work for which she should produce a certificate of her pregnancy.
3. Before seven weeks of her expected delivery, she should give her employer written notice mentioning that she will be absent during her maternity period.

• The rate of payment is the average daily wages of 3 months immediately preceding the date of her absence.
• Claims in case of death during maternity

1. If a woman dies before her delivery then the claim is till her death.
2. If a woman dies during or after her delivery then the claim is for the entire period.
3. If a woman and child both die then the claim is till the death of the child.

• From December 2011, the Medical Bonus is Rs 3500.
• Condition for payment

• Before Delivery – After proofing of pregnancy, she can get an advance payment.
• After Delivery – A proof be given within 48 hours of childbirth for payment.

• In the case of miscarriage, the woman is eligible for a leave of 6 weeks immediately after the date of miscarriage.
• Also, she is eligible for an additional 1 month paid leave for illness due to pregnancy, delivery, or other complications.
• Every woman who delivered a child who returns to duty shall be given two breaks in addition to her interval period for nursing her child until the child attains the age of fifteen months.
• If a woman is deprived of maternity benefits or wrongfully discharged or dismissed then the employer is punishable under the law.
• This appeal should be filed before the authority prescribed by the law within 60 days from the date of deprivation of benefit.
• If found guilty employer can be imprisoned for 3 months to 1 year or can be fined 2000 to 5000 rupees.
• The appropriate government here means the Central government for Mines and State government for others.
• The appropriate government can appoint inspectors for the purpose of this act with powers of examination, inspection, and inquiry.
• No court inferior to that of a Presidency Magistrate or the magistrate of the first class shall try such offences.

Key Highlights of 2017 amendment

• Paid Maternity leave increased to 26 weeks from 12 weeks, with 8 weeks prior to delivery and 12 weeks after the delivery.
• No increased benefit for a third child, it is applicable for the first two children only.
• A woman who has already given birth to two or more children shall only be entitled to 12 weeks of maternity benefits, of which 6 weeks before and 6 weeks after the delivery.
• In the case of surrogacy or adoption, if a woman adopts a child below three months or a commissioning mother in the case of surrogacy then they are entitled to 12 weeks of Maternity benefit from the date of handover of the child to the adopting or the commissioning mother respectively.
• Crèche facility is made mandatory for the establishment employing 50 or more people.
• Now nursing breaks are increased from two to four for visits to the crèche including her interval period.
• An employer may allow a woman to work from home post the period of maternity benefit on mutually agreed conditions.

The correct answer is Rs. 35,600 Crore.

According to the budget 2020-21, Rs. 35,600 Crore amount has been proposed for nutrition-related programs for the financial year 2020-21.

• Recently, the Minister of Finance presented the Union Budget 2021-22. 
• This was the first-ever digital Union Budget.
• It is based on six pillars - 
  • Health and well-being.
  • Physical and Financial capital and Infrastructure.
  • Inclusive Development for Aspirational India.
  • Reinvigorating Human capital.
  • Innovation and R&D.
  • Minimum Government, Maximum Governance.

• The Constitution refers to the Budget as the 'Annual Financial Statement'.
• The budget is laid before Parliament in the name of the President.
• The central ministry decided to merge the General Budget and the Railway Budget on 21st September 2016.
• The General Budget has a total of 109 demands (103 for civil expenditure and 6 for defence expenditure).
• The Railway Budget has 32 demands.
• The Union Finance Minister presents the Union Budget every year in the Parliament that contains the Government of India revenue and expenditure for one fiscal year which begins on 1^st April and ends on 31^st March of the following year.
• India's first Union Budget was presented by the first Finance minister, RK Shanmukham Chetty on November 26, 1947.
• Former Prime Minister Indira Gandhi was the first Indian woman Finance minister and to have presented the budget in her capacity as the Prime Minister of India in 1978.
• C. D. Deshmukh was India's first Governor of RBI to have presented the interim Budget for the year  (1951-1952).
• The budget of 1973-1974 is known as the 'Black Budget' due to the budget deficit. 

Stages of Enacting the budget

• Presentation of the budget.
• General discussion.
• Scrutiny by departmentally related standing committees.
• Voting on demands for grants.
• Passing of Appropriation Bill (Article 114).
• Passing of Finance Bill.

• Father of Indian Budget - P. C. Mahalanobis.
• Current Union Finance Minister - Nirmala Sitaraman​.
• Article 112 - Annual Financial Statement.
• The Union Finance Minister to present the maximum number of budgets - Moraji Desai (10 times).
• The first budget of the Republic of India was presented by John Mathai on 28th February 1950.

The correct answer is Per capita, per month consumption expenditure.

• Per capita, per month consumption expenditure was the criteria considered by P.D. Ojha Committee (1960-61) for calculating the poverty line.

• P.D. Ojha Committee (1960-61)
  • The method used to calculate the poverty line was consumption expenditure(per capita, per month).
  • P. D. Ojha estimates that, in 1960- 61, 190 million people in India were poor.
  • Constituting about 44% of the then total population.
  • A vast majority 184 million of the poor lived in rural India.

The correct answer is 2 only.

• A lender of last resort (LoR) is an institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.
• In India, RBI is the lender of last resort.
• Lender of last resort does not lend money to trade and industry bodies when they fail to borrow from other sources. Hence, statement 1 is incorrect.
• The Reserve Bank extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of the bank, which in turn may also affect other banks and institutions and can have an adverse impact on financial stability and thus on the economy. Hence, statement 2 is correct. 
• RBI does lend to governments to finance budget deficits but it does not come under Lender of last resort. Hence, statement 3 is incorrect.

The correct answer is Central bank buys and sells government securities in the financial market to influence money supply in the economy.

•  Open Market Operations (OMOs) are market operations conducted by RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
• If there is excess liquidity, RBI resorts to the sale of securities and sucks out the rupee liquidity.
• Similarly, when the liquidity conditions are tight, RBI buys securities from the market, thereby releasing liquidity into the market.
• It is one of the quantitative (to regulate or control the total volume of money) monetary policy tools that are employed by the central bank of a country to control the money supply in the economy. 

The correct answer is The sale and purchase of government securities and treasury bills by RBI or the central bank of the country.

• Recently, The Reserve Bank of India (RBI) has said it would conduct an Open Market Operation (OMO) purchase of State Developments Loans.
• Open market operations (OMO) 
  • Open market operations are the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.
    • These include both, outright purchase and sale of government securities, for injection and absorption of durable liquidity, respectively. Hence, Statement 1 is correct.
    • It is one of the quantitative monetary policy tools. 
• There are several direct and indirect instruments RBI used for implementing monetary policy. (Asked in UPSC prelims)
  • Repo Rate:
    • The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF). Hence, Statement 2 is not correct.
  • Reverse Repo Rate:
    • The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF. Hence, Statement 3 is not correct.
  • Bank Rate:
    • It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. Hence, Statement 4 is not correct.
    • This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes.

The correct answer is 1, 2 and 3.

• The provisions of the Provident Fund Act, 1952, covers all types of employees, who are drawing salary/wages at the time of joining up to Rs. 15,000/- per month.
• Also, the employees drawing salary/wages more than Rs. 15,000/- per month can also come under the purview of the EPF Act at the discretion of the management and by submitting a joint undertaking to the Provident Fund Commissioner.
• The Act does not make any distinction between temporary and permanent workers or daily rated and piece rated employees.
• Further, in case the casual workers are employed in or in connection with the work of the establishment, the said casual workers are also covered under the Employee Provident Fund Act from the date of their joining the establishment. Hence statement 1 is correct.
• According to the Minimum Wages (Central) Rules, 1950, when a worker works in employment for more than nine hours on any day or for more than forty-eight hours in any week, he shall in respect of overtime work, be entitled to wages -
  • In the case of employment in agriculture, at one and a half times the ordinary rate of wages.
  • In the case of any other scheduled employment, at double the ordinary rate of wages. Hence statement 2 is correct.
• The Central government has notified the amendment under section 6 of The Payment of Wages Act, 2017, with the provision that "the appropriate Government may, by notification in the Official Gazette, specify the industrial or another establishment, the employer of which shall pay to every person employed in such industrial or another establishment, the wages only by cheque or by crediting the wages in his bank account". Hence statement 3 is correct.

The correct answer is 1, 2 and 3

• NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:
• NBFC cannot accept demand deposits; (The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and a maximum period of 60 months. They cannot accept deposits repayable on demand.) Hence, statement 2 is correct.
• NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself. Hence, statement 1 is correct.
• The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks. Hence, statement 3 is correct.

• The Reserve Bank of India (RBI) has decided to merge three categories of Non-Banking Financial Companies (NBFCs) into a single category to provide greater operational flexibility to non-banking lenders.
• NBFCs categorized as Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs), will be merged into a new category called NBFC - Investment and Credit Company (NBFC-ICC).

Non-Banking Financial Company (NBFC)

• A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature.
• NBFC does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of the immovable property.
• A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in instalments by way of contributions or in any other manner is also a non-banking financial company (Residuary non-banking company).

The correct answer is Increase in the banking habit of the people.

• The monetary base (or M0) is the total amount of a currency that is either in general circulation in the hands of the public or in the form of commercial bank deposits held in the central bank's reserves.
• An increase in banking activity will lead to more money in the bank’s hands in the form of Time Deposits  (FD, RD), Demand Deposits (Savings Bank Account), Cash, etc, thus increase in banking habits of the 
  people will increase the money multiplier.
• Banks create money by making loans. A bank loans or invests its excess reserves to earn more interest. 
• When people start depositing more into banks. The banks can lend even more.

The correct answer is Prof. S.D. Tendulkar.

• An expert Group headed by Prof. Suresh D. Tendulkar was constituted in 2005 to review the methodology for the official estimation of poverty and recommend changes in the existing procedures.
• The Tendulkar Committee submitted its report in 2009.

• Dr. Duvvuri Subbarao is an Indian Economist and a Civil Servant.
  • He is known to be a reformer at heart who has favored inclusive economic policies.
  • He is the former Governor of the Reserve Bank of India in 2008.

The correct answer is 3 and 4 only.

• As per NITI Ayog's report, worker productivity has increased for both rural and urban areas. 
• Consider the data shown below-For rural areas it was Rs. 37273 in 2004 -05 and Rs. 101755 in 2011 -12, while for urban areas it was Rs. 120419 in 2004 -05 and Rs. 282515 in 2011 -12. Hence statement 1 is incorrect.
• Steady transition to urbanization over the years has led to a decline in the rural share in the workforce, from 77.8% in 1993 -94 to 70.9% in 2011 -12. Hence statement 2 is incorrect.

• The rural share in the total workforce declined steadily from 76.1 per cent in 1999-00 to 70.9 per cent in 2011-12.
• As evident from the table below, the share of the non-farm economy increased in rural areas.
  • Share of rural areas in total NDP and workforce (per cent):

• Hence 3 is correct.
• Also, the growth rate of rural employment decreased (becoming negative in 2005-12). Hence 4 is correct.

The correct answer is Revenue generated after production.

• According to economic theory, there are four main factors of production - land, labour, capital, and entrepreneurship.
• They are the inputs needed for supply.
• They produce all the goods and services in an economy. That's measured by gross domestic product.
• Land, labor, and capital as factors of production were originally identified by the early political economists such as Adam Smith, David Ricardo, and Karl Marx.
• From the given option Revenue generated after production is not a factor of production.

The correct answer is Varshik Yojana.

• The time frame for Varshik Yojana was 1979-80.
  • This Yojana was also known as Rolling Plan.
  • The rolling plan is defined as the plan where there are no fixed dates in respect of commencement and end of the plan.
  • The main objective of these plans that they are very flexible.
  • The projected expenditure of this plan was Rs 465 Crore and the actual expenditure was Rs. 476 Crore.

• The time frame for the first five-year plan was 1951-1956.
  • On 7^th March 1963 under this five-year plan foundation stone of Gandhi Sagar Dam was laid.
• The time frame for the ninth five-year plan was 1997-2002.
  • Areas related to Social service were the main objectives of this five-year plan.

• In the light of high NPAs, Banks tend to lower the interest rates on deposits on one hand and likely to levy higher interest rates on advances. Hence, Statement 1 is correct.
• The increased NPAs put pressure on the recycling of funds and reduces the ability of banks for lending more and thus results in lesser interest income. Hence, Statement 2 is correct.
• As per Basel norms, banks are required to maintain adequate capital on risk-weighted assets on an ongoing basis.
  • Every increase in NPA level adds to risk weighted assets which warrants the banks to shore up their capital base further. Hence, Statement 3 is correct.

The correct answer is Faster and more inclusive growth.

• Eleventh Five Year Plan (2007–2012) focused on faster and more inclusive growth.

• Eleventh Plan (2007–2012)
  • It was in the period of Manmohan Singh as the prime minister.
  • It aimed to increase the enrolment in higher education of 18–23 years of age group by 2011–12.
  • It focused on distant education, the convergence of formal, non-formal, distant, and IT education institutions.
  • Rapid and inclusive growth (poverty reduction).
  • Emphasis on the social sector and delivery of service therein.
  • Empowerment through education and skill development.
  • Reduction of gender inequality.
  • Environmental sustainability.
  • It aimed to increase the growth rate in agriculture, industry, and services to 4%, 10%, and 9% respectively.
  • Reduce the total fertility rate to 2.1.
  • Provide clean drinking water for all by 2009.
  • Increase agriculture growth to 4%.

The correct answer is the primary Sector.

• The Primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining.
• White Revolution, Blue Revolution, and Green Revolution are promulgated to boost the primary sector of the economy.
• With GVA of Rs. 50.43 lakh crore, the Industry sector contributes 29.73%. While Agriculture and allied sector share 15.87%.
• The services sector accounts for 54.40% of total India's GVA of 169.61 lakh crore Indian rupees and is the largest contributor among all sectors.  

• Different revolutions and their respective areas are s follows-
  • Black Revolution - Petroleum Production
  • Brown Revolution - Leather/non-conventional/Cocoa production G
  • olden Fiber Revolution - Jute Production
  • Golden Revolution - Fruits/Overall Horticulture development/ Honey Production
  • Grey Revolution - Fertiliser
  • Round Revolution – Potato
  • Silver Fiber Revolution – Cotton

The correct answer is 1 3 and 4.

• India is a net exporter in services. Observing the recent trends, there was a surplus of $6.84 billion in June, with exports standing at $16.48 billion and imports at $9.64 billion. Hence 3 is correct.
• As per RBI’s data, India’s merchandise exports during April-August 2019-20 was 133 bn USD as compared to 210 bn of imports during the same period. Hence statement 1 is correct.
• India suffers from an overall trade deficit. For instance-

Hence 4 is correct.

• India's trade deficit narrowed sharply to USD 6.77 billion in August of 2020 from USD 13.86 billion in the same month last year.
• In 2018, major countries to which India Exported include the United States, United Arab Emirates, China, Hong Kong and Singapore.

• Export of iron and steel products witnessed a sharp rise of more than 100% in June 2020. Hence 2 is incorrect.
• Chemicals include dyes and dye intermediates, organic chemicals, inorganic chemicals, agro-chemicals, cosmetics & toiletries, and castor oil.
• From April 2019 to January 2020, the export of dyes increased by 9.12% y-o-y to US$ 2.27 billion. Cosmetics and toiletries increased by 5.62%. Hence 2 is incorrect.

The correct answer is To study the SEZ policy.

• In June 2018, the Union Commerce Ministry set up a committee headed by Bharat Forge chairman Baba Kalyani to make its special economic zone (SEZ) policy compatible with World Trade Organisation (WTO) rules after the US challenged India’s export subsidy program at the multilateral trade body.
• The Baba Kalyani led committee constituted by the Ministry of Commerce and Industry to study the existing SEZ policy of India submitted its report to Commerce Minister Suresh Prabhu, in New Delhi on November 19, 2018.
• Objectives of the committee :
  • To evaluate the SEZ policy and make it WTO compatible.
  • To suggest measures for maximizing the utilization of vacant land in SEZs.
  • To suggest changes in the SEZ policy based on international experience.
  • To merge the SEZ policy with other Government schemes such as coastal economic zones, Delhi-Mumbai industrial corridor, national industrial manufacturing zones, and food and textiles parks.

•  SEZ :
  • India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965.
  • With a view to overcoming the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime, and with a view to attracting larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
  • The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
    • The main objectives of the SEZ Act are :
      • Generation of additional economic activity
      • Promotion of exports of goods and services
      • Promotion of investment from domestic and foreign sources
      • Creation of employment opportunities
      • Development of infrastructure facilities

The correct answer is a only.

• The quest for industrial development started soon after independence in 1947. The Industrial Policy Resolution of 1948 defined the broad contours of the policy delineating the role of the State in industrial development both as an entrepreneur and authority.
• This was followed by comprehensive enactment of Industries (Development & Regulation) Act, 1951 (referred to as IDR Act) that provides for the necessary framework for implementing the Industrial Policy and enables the Union Government to direct investment into desired channels of industrial activity inter alia through the mechanism of licensing keeping with national development objectives and goals.
• The main objectives of the Industrial Policy of the Government are
  • To maintain a sustained growth in productivity,
  • To enhance gainful employment,
  • To achieve optimal utilisation of human resources,
  • To attain international competitiveness,
  • To transform India into a major partner and player in the global arena.
• To achieve these objectives, the Policy focus is on deregulating the Indian industry; allowing freedom and flexibility to the industry in responding to market forces; and providing a policy regime that facilitates and fosters growth.
• Economic reforms initiated since 1991 envisages a significantly bigger role for private initiatives. The policy has been progressively liberalized over years to at present, as would be evident in subsequent paragraphs.

• Industrial Policy of 1948 : 
  • Adopted a mixed economy model
  • Classified industry into 4 groups :
    • Strategic Industries (Public Sector) - It included three industries in which the Central Government had a monopoly. These included Arms and ammunition, Atomic energy, and Rail transport.
    • Basic/Key Industries (Public-cum-Private Sector) - 6 industries viz. coal, iron & steel, aircraft manufacturing, ship-building, manufacture of telephone, telegraph & wireless apparatus, and mineral oil were designated as “Key Industries” or “Basic Industries”.
      • These industries were to be set-up by the Central Government. However, the existing private sector enterprises were allowed to continue.
    • Important Industries (Controlled Private Sector) - It included 18 industries including heavy chemicals, sugar, cotton textile & woolen industry, cement, paper, salt, machine tools, fertilizer, rubber, air and sea transport, motor, tractor, electricity, etc.
      • These industries continue to remain under the private sector however, the central government, in consultation with the state government, had general control over them.
    • Other Industries (Private and Cooperative Sector) - All other industries which were not included in the above mentioned three categories were left open for the private.
  • The Industries (Development and Regulation) Act was passed in 1951 to implement the Industrial Policy Resolution, 1948.

The correct answer is The interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility.

• Repo Rate:
  • ​Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.
  • The word ‘Repo’ technically stands for ‘Repurchasing Option’ or ‘Repurchase Agreement’.
  • Both the parties are required to sign an agreement of repurchasing which will state the repurchasing of the securities on a specific date at a predetermined price.
  • Repo rate is used by monetary authorities to control inflation.
  • The current Repo Rate is at 4.00%. (December 2020).
  • Repo rate is decided by the Monetary policy committee of RBI.
  • The Central Bank RBI reviews the repo rate in every two months.

• Reverse Repo Rate:
  • ​The interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the liquidity adjustment facility.
  • The current Reverse Repo Rate is at 3.35%. (December 2020)
  • It is used to manage cash-flow.

The correct answer is Too much money chasing too few goods.

• Demand-Pull Inflation:
  • Demand-pull inflation is the upward thrust on prices that reflects a shortage in supply.
  • In the simplest form, the Demand-pull inflation is the increase in aggregate demand, by the four sections of the macroeconomy: households, businesses, governments, and foreign buyers.
  • Economists describe it as "too much money chasing too few goods."
  • Depicts a faster growth rate in the country.
  • To curb it the central bank has to implement a tight monetary policy.

• Inflation is generally classified into three main types: 
  • ​Demand-Pull inflation:
    • Demand-pull inflation is due to the increase in aggregate demand for goods than supply.
  • Cost-Push inflation:
    • Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials.
  • Built-In inflation:
    • Built-in inflation is a type of inflation that results from past events and persists in the present.
    • It can occur when prices rise due to increases in production costs, such as raw materials and wages. 

The correct answer is Eleventh plan.

• Eighth plan - 6.5%
• Ninth plan - 5.5%
• Tenth plan - 7.7%
• Eleventh plan - 7.9%

• Eighth Five Year Plan:
  • Its duration was from 1992 to 1997, under the leadership of P.V. Narasimha Rao. 
  • In this plan, the top priority was given to the development of human resources i.e. employment, education, and public health.
  • During this plan, Narasimha Rao Govt. launched the New Economic Policy of India.
  • Some of the main economic outcomes during the eighth plan period were rapid economic growth (highest annual growth rate so far – 6.8 %), high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.
  • A high growth rate was achieved even though the share of the public sector in total investment had declined considerably to about 34 %.
  • This plan was successful and got an annual growth rate of 6.8% against the target of 5.6%.
• Ninth Five Year Plan:
  • Its duration was from 1997 to 2002, under the leadership of Atal Bihari Vajpayee. 
  • The main focus of this plan was “Growth with Social Justice and Equality”.
  • It was launched in the 50th year of independence of India.
  • This plan failed to achieve the growth target of 6.5% and achieved a growth rate of 5.6%.
• Tenth Five Year Plan:
  • Its duration was from 2002 to 2007, under the leadership of Atal Bihari Vajpayee and Manmohan Singh. 
  • This plan aimed to double the Per Capita Income of India in the next 10 years.
  • It also aimed to reduce the poverty ratio by 15% by 2012.
  • Its growth target was 8.0% but it achieved only 7.6%.
• Eleventh Five Year Plan:
  • Its duration was from 2007 to 2012, under the leadership of Manmohan Singh. 
  • It was prepared by the C. Rangarajan.
  • Its main theme was “rapid and more inclusive growth”.
  • It achieved a growth rate of 8% against a target of 9% growth.

The correct answer is Consumer price index.

• Many developing countries use changes in the consumer price index (CPI) as their central measure of inflation.
• In India, CPI (combined) is declared as the new standard for measuring inflation (April 2014).
• CPI numbers are typically measured monthly, and with a significant lag, making them unsuitable for policy use.
• Inflation is the measured surge in the average prices of goods and services over a longer period in the economy.
• It is a macro term in which the impact of inflation on a large basket of goods is seen.
• As the value of money is decreased, the cumulative impact of inflation is reported as the buying power of money is reduced.

• A wholesale price index (WPI) is an index that measures and monitors changes in the price of goods at stages prior to the retail level. This applies to goods sold in bulk and exchanged between companies or companies (instead of between consumers).
• The Consumer Price Index (CPI) is a metric examining the weighted average of consumer goods and services basket prices such as transport, food and medical care.

The correct answer is Wholesale Price Index Number.

• In India, inflation measured by the - Wholesale Price Index Number.

• The Wholesale Price Index represents the price of a basket of wholesale goods.
  • WPI focuses on the price of goods that are traded between corporations.
  • It does not concentrate on goods purchased by the consumers.
  • The main objective of WPI is monitoring price drifts that reflect demand and supply in manufacturing, construction and industry.
  • WPI helps in assessing macroeconomic as well as microeconomic conditions of an economy.
  • Inflation rates are based on WPI which is released by the Office of Economic Advisor under the Ministry of Commerce and Industry.
  • 2011-2012 is the base year for the Wholesale Price Index (WPI).
• There are four series, viz the CPI UNME (Urban Non-Manual Employee), CPI AL (Agricultural Labourer), CPI RL (Rural Labourer), and CPI IW (Industrial Worker).
• While the CPI UNME series is published by the Central Statistical Organisation, the others are published by the Department of Labour.

The correct answer is a only.

• The Sustainable Development Goals are a universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.
•  There are 17 Sustainable Development Goals and 169 Targets. Hence, Statement a is correct.
• The 17 Goals were adopted by all UN Member States in 2015, as part of the 2030 Agenda for Sustainable Development which set out a 15-year plan to achieve the Goals. Hence, Statement b is not correct.
• The NITI Aayog released the Baseline Report of the Sustainable Development Goals (SDG) India Index, which comprehensively documents the progress made by India’s States and Union Territories towards implementing the 2030 SDG targets. Hence, Statement c is not correct.
• SDG India Index :
  • Based on the score, the States and UTs were classified into four categories :
    • Achiever – when SDG India Index score is equal to 100.
    • Front Runner – when SDG India Index score is less than 100 but greater than or equal to 65.
    • Performer – when SDG India Index score is less than 65 but greater than or equal to 50.
    • Aspirant – when SDG India Index score is less than 50.
  • Kerala retained its rank as the top State with a score of 70 (2019-20). 
  • Chandigarh too maintained its top spot among the UTs with a score of 70 (2019-20).

The correct answer is a, b, c, and d.

• Under the Eleventh Plan, some of the monitorable targets reflecting inclusiveness
  • Infrastructure
  • Environment
  • Income and poverty
  • Education and health
  • Hence the correct answer is a, b, c and d.

• Total five-year plans- 12.
• Successful Plans-6. (Those plans who achieved their targets)
• Failure of Plans-6.
• Epic failure five-year plan- Third (due to Indo-China war 1962).
• First five-year plan-1951 to 1956.
• Last five-year plan-2012 to 2017.
• The Government of India announced the dissolution of the Planning Commission and it was replacement by a think tank called the NITI Aayog.

• Eleventh Plan (2007–2012)
  • It was in the period of Manmohan Singh as the prime minister.
  • It aimed to increase enrollment in higher education by 2011–12.
  • It focused on distance education, and the convergence of formal, non-formal, distance, and IT education institutions.
  • Rapid and inclusive growth (income and poverty reduction).
  • Emphasis on the social sector and delivery of service therein.
  • Empowerment through education, skill development, and infrastructure.
  • Reduction of gender inequality.
  • Environmental sustainability.
  • To increase the growth rate in agriculture, industry, and services to 4%, 10%, and 9% respectively.
  • Reduce the total fertility rate to 2.1.
  • Provide clean drinking water for all by 2009.
  • Increase agriculture growth to 4%.

The correct answer is Neither exports nor imports are done.

• A closed economy is one that has no trading activity with outside economies.
• The closed economy is entirely self-sufficient.
• It means no imports come into the country and no exports leave the country. 
• In other words, A closed economy is one that does not swap their trading with outside.

• Open Economy:
  • An economy in which participants are permitted to buy and sell goods and services with other countries.
  • The GDP of open economies includes exports and imports.
  • Some very open economies try to have few or no trade restrictions. 

The correct answer is 3.5%, 8.0% and 9.5%.

The economic growth targets of the 12th five-year plan:

• "Faster, Sustainable, and more inclusive growth" was the theme of the 12th five-year plan.
• An outlay of INR 1,96,992 crore has been proposed for the 12th five-year plan.
• This includes gross budgetary support of 130084.32 crores and Internal & Extra Budgetary Resources (IEBR) of  66907.68 crores.

• 12th Five-year plan (2012-17) was India’s last Five Year Plan.
• Niti Aayog, which has replaced the Planning Commission, has launched a three-year action plan from April 1, 2017. 
  • Niti Aayog has also been entrusted the work on the 15-year Vision Document and a seven-year strategy, which would guide the government’s development works till 2030. 

The correct answer is 2012-2017.

• The period of the 12th Five-Year Plan was 2012-2017.
• Aim -  Faster, More Inclusive, and Sustainable Growth.
• 12th Five Year Plan of the Government of India (2012–17) was India's last Five Year Plan.

•  Its growth rate target was 8%.

​

• The NDA government has dissolved the Planning Commission with the NITI Aayog, Thus, there will be no thirteen Five Year Plan.
• Niti Aayog was Formed on 1 January 2015. 

The correct answer is 2012-2017.

• 12th Five Year Plan of the Government of India (2012–17) was India's last Five Year Plan.

​

• Twelfth Five Year Plan (2012-2017) was launched with the objective of faster, sustainable, and more inclusive growth.
  • The broad vision and aspirations which the Twelfth Plan seeks to fulfill are reflected in the subtitle: ‘Faster, Sustainable, and More Inclusive Growth’.
  • It aimed to increase the GDP at a faster pace such that each stratum of the society is a part of and contributed to the growth and hence foster an environment of inclusive growth that is sustainable.
  • Twelfth Plan had set a target of 8 percent growth over the five-year period 2012-13 to 2016-17.
  • Inclusiveness is to be achieved through poverty reduction, promoting group equality and regional balance, reducing inequality, empowering people etc whereas sustainability includes ensuring environmental sustainability, development of human capital through improved health, education, skill development, nutrition, information technology etc and development of institutional capabilities, infrastructure like power telecommunication, roads, transport etc.