Question 1

Consider the following statements regarding the lending facilities of the International Monetary Fund (IMF):

1. The Stand-by Arrangement (SBA) provides non-concessional loans to address short-term Balance of Payments (BOP) problems and is available to all member countries.
2. The Extended Credit Facility (ECF) is a form of non-concessional lending designed to address long-term BOP problems in any member country.
3. Lending through the Poverty Reduction and Growth Trust (PRGT) Facility is exclusively extended to Low-Income Countries (LICs) and features zero interest rates.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The text specifies that the Stand-by Arrangement (SBA) is a type of non-concessional lending provided to all member countries to address short-term or potential BOP problems. Statement 2 is incorrect. The text classifies the Extended Credit Facility (ECF) as a form of 'Concessional Lending' under the Poverty Reduction and Growth Trust (PRGT), which is exclusively for Low-Income Countries (LICs), not a non-concessional facility for any member country. Statement 3 is correct. The text explicitly states that lending through the PRGT is exclusively for LICs on concessional terms, and these loans feature zero interest rates. Since two statements are correct, the correct option is (b).

Question 2

Consider the following statements:

Statement-I: The International Finance Corporation (IFC) is the arm of the World Bank Group that focuses exclusively on promoting the private sector in developing countries by providing loans directly to private companies.

Statement-II: The International Bank for Reconstruction and Development (IBRD) promotes Foreign Direct Investment (FDI) by providing insurance to private sector foreign investors against losses caused by non-commercial political risks.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The provided text explicitly states that the IFC is 'focused exclusively on the promotion of the private sector in developing countries' and 'gives loans to private companies rather than to governments'. Statement-II is incorrect. The function described, providing insurance against non-commercial (political) risks to promote FDI, is the mandate of the Multilateral Investment Guarantee Agency (MIGA), not the IBRD. The text specifies that the IBRD lends money to the governments of middle-income countries and creditworthy low-income countries. Therefore, Statement-I is correct and Statement-II is incorrect.

Question 3

With reference to the IMF Quota for member countries, consider the following statements:

1. In the formula to derive a member country's quota, the country's GDP is assigned the highest weightage.
2. A country's quota is the primary determinant of its subscription amount, voting power, and its access to IMF financing.
3. To be included in the Special Drawing Rights (SDR) basket, a currency's issuer must be one of the world's largest exporters, and the currency must be widely traded in principal exchange markets.

How many of the above statements are correct?

Accepted Answer

All three. Statement 1 is correct. The text specifies the formula for the IMF quota is a weighted average where the member country's GDP has an assigned weight of 50 percent, which is the highest among the four components listed. Statement 2 is correct. The text explicitly lists under the 'Role of quota' that it determines a member's 'Subscriptions to IMF', 'Voting Power', and 'Access to IMF Financing'. Statement 3 is correct. The text outlines two criteria for a currency's inclusion in the SDR basket: the 'Export Criterion' (issuer must be among the largest exporters) and the 'Currency to be Freely Usable' criterion (widely used and widely traded). Since all three statements are correct, the correct option is (c).

Question 4

Consider the following statements regarding the governance and structure of the New Development Bank (NDB):

1. The NDB employs a weighted voting system where votes are distributed in proportion to the members' capital subscription.
2. The collective share of the founding BRICS nations in the NDB cannot be less than 55 percent of the total voting power.
3. Unlike the World Bank and IMF, the NDB follows a 'no Veto policy'.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The New Development Bank (NDB) has a 'One Member, One Vote Policy'. It is the Asian Development Bank (ADB) that uses a weighted voting system where votes are distributed in proportion to members' capital subscription. Statement 2 is correct. The text explicitly states that the collective share of BRICS nations cannot be less than 55 percent of the voting power in the NDB. Statement 3 is correct. The NDB's features include a 'One Member, One Vote Policy and no Veto policy', which contrasts with the governance structures of the World Bank and IMF.

Question 5

Consider the following statements:

Statement-I: India, despite being a shareholder of the European Bank for Reconstruction and Development (EBRD), is not a recipient of its finances.

Statement-II: The EBRD's mandate is exclusively focused on providing financial support for the development of private sectors in European Union member countries only.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The provided text explicitly mentions that 'Although India has a shareholding in the EBRD, it is not a recipient of its finances.' Statement-II is incorrect. The statement uses extreme words like 'exclusively' and 'only'. The text states that the EBRD has 75 member countries from across the globe, not just the European Union. Furthermore, it provides support 'mainly' for the development of private sectors, not 'exclusively'. Since Statement-II is incorrect, it cannot be the explanation for Statement-I.

Question 6

With reference to multilateral financial institutions, consider the following statements:

1. The authorized capital of the New Development Bank (NDB) and the total capital contribution for the Contingent Reserve Arrangement (CRA) are both set at US$ 100 billion.
2. In the Asian Infrastructure Investment Bank (AIIB), voting shares are based on the size of member countries' economies, with India being the second-largest shareholder.
3. The United States and Japan are not members of the Asian Infrastructure Investment Bank (AIIB) but hold the two largest portions of share capital in the Asian Development Bank (ADB).

How many of the above statements are correct?

Accepted Answer

All three. Statement 1 is correct. The text specifies that the present authorized capital of NDB is $100 billion. It also states that for the CRA, there is a total capital contribution of US$ 100 billion. Statement 2 is correct. The text mentions that in the AIIB, 'The voting shares are based on the size of member countries’ economies' and that 'India is the second-largest stakeholder in AIIB after China.' Statement 3 is correct. The text explicitly states that 'The United States and Japan are not members of AIIB.' For the ADB, the text notes that 'Japan holds the largest portion of share capital, followed by the United States, China and India,' confirming that Japan and the US hold the top two positions.

Question 7

With reference to international economic organisations, consider the following statements:

1. India is a member of the Organisation for Economic Cooperation and Development (OECD).
2. The World Economic Forum (WEF) computes and publishes the Service Trade Restrictiveness Index.
3. China is not a member of the OECD.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The text explicitly states, 'India is not a member of the OECD. However, India is a member of the OECD Development Centre.' Membership in the Development Centre is distinct from full membership in the OECD. Statement 2 is incorrect. The text specifies that 'The Service Trade Restrictiveness Index has been computed by the OECD since 2014.' This report is attributed to the OECD, not the World Economic Forum. Statement 3 is correct. The provided content clearly mentions that 'China is not a member of the OECD.' Therefore, only one statement is correct.

Question 8

Consider the following statements regarding the Organisation for Economic Cooperation and Development (OECD):

1. The OECD's 'The Long View' report projects that global real GDP growth will accelerate from its 2018 level to over 4% by 2060.
2. The same report projects that by 2060, India and China combined will account for nearly half of the global economic output.
3. The Programme for International Student Assessment (PISA), which evaluates the applicability of knowledge learned in primary and secondary education, is an initiative of the OECD.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The OECD's 'The Long View' report projects a slowdown in global real GDP growth, from around 3.5% in 2018 to 2% in 2060, which is a deceleration, not an acceleration. Statement 2 is incorrect. The report's projection is that India, China, and Indonesia combined will account for nearly half of global economic output by 2060; the statement incorrectly omits Indonesia. Statement 3 is correct. The Programme for International Student Assessment (PISA) is a worldwide study initiated by the OECD to evaluate education systems by testing the skills and knowledge of 15-year-old students. Since only one statement is correct, the correct option is 'Only one'.

Question 9

Consider the following statements:

Statement-I: The International Fund for Agricultural Development (IFAD) is the only multilateral development organisation that focuses exclusively on rural economy and food security.

Statement-II: The World Food Programme (WFP), founded in 1961, is a humanitarian organisation that provides emergency food aid and works with communities to enhance nutrition and resilience.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.. Statement-I is correct. The text explicitly states that IFAD 'is the only multilateral development organisation that focuses exclusively on rural economy and food security.' Statement-II is also correct. The text describes the World Food Programme (WFP) as the 'foremost humanitarian organisation' founded in 1961 that provides food aid and works to enhance nutrition and resilience. However, Statement-II describes the mandate and nature of a different organization (WFP), which is classified as a 'humanitarian organisation,' not a 'multilateral development organisation' in the context of Statement-I. Therefore, Statement-II does not explain or elaborate upon the specific and exclusive mandate of IFAD as described in Statement-I.

Question 10

Consider the following pairs:

1. World Economic Forum : Global Food Crisis Report
2. World Customs Organisation : Harmonised System (HS)
3. World Food Programme : Global Gender Gap Report

How many of the above pairs are correctly matched?

Accepted Answer

Only one. Pair 1 is incorrectly matched. The text states that the 'Global Food Crisis Report' is published by the World Food Programme (WFP), not the World Economic Forum (WEF). Pair 2 is correctly matched. The text specifies that the Harmonised System (or ‘HS’) is a 'multipurpose international product nomenclature, developed by the WCO' (World Customs Organisation). Pair 3 is incorrectly matched. The text lists the 'Global Gender Gap Report' as a major annual report published by the World Economic Forum (WEF), not the World Food Programme (WFP). Therefore, only one pair is correctly matched.

Question 11

With reference to the Agreement on Agriculture (AoA) under the WTO, consider the following statements:
1. Subsidies provided to compensate farmers for weak rural infrastructure are classified under the Amber Box.
2. Subsidies tied to programs that limit production by way of quotas are classified under the Blue Box and are subject to a limit of 10% of the value of agricultural production for developing countries.
3. The subsidy provided by the Indian Government under its Minimum Support Price (MSP) program, which is used for the Public Distribution System (PDS), falls under the Amber Box category.

Accepted Answer

Only one. Only statement 3 is correct. Statements 1 and 2 are incorrect.

1.  **Statement 1 is incorrect.** Subsidies for developing weak rural infrastructure, along with support for research or training, are considered non-trade-distorting. Such subsidies are classified under the Green Box, which has no spending limits.
2.  **Statement 2 is incorrect.** While it is true that subsidies tied to programs that limit production are classified under the Blue Box, these subsidies currently have no prescribed spending limits. The 10% limit mentioned is the 'de minimis' level of trade-distorting domestic support allowed for developing countries under the Amber Box, not the Blue Box.
3.  **Statement 3 is correct.** The Minimum Support Price (MSP) program provides market price support, which is considered a trade-distorting domestic subsidy. Therefore, it is correctly classified under the Amber Box.

Question 12

Consider the following statements:
Statement-I: India lost a case at the WTO where its domestic content requirements under the National Solar Mission were challenged by the United States.
Statement-II: The WTO ruled that India's policy violated the 'Most Favoured Nation' (MFN) principle by creating discriminatory conditions between its trading partners.

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The provided text explicitly mentions that under the National Solar Mission, India's domestic content requirements were challenged by a US trade representative, and India lost the case after the judgment was upheld by the WTO Appellate Body in 2016. Statement-II is incorrect. The text clearly states that the challenge was based on the policy being 'violative of the ‘National Treatment’ principle', not the 'Most Favoured Nation' (MFN) principle. The National Treatment principle pertains to non-discrimination between domestic and foreign products once they enter the market, whereas the MFN principle pertains to not discriminating between different foreign trading partners.

Question 13

With reference to Intellectual Property Rights (IPRs), consider the following statements:
1. A patent granted for an invention in India is valid worldwide under the TRIPS agreement.
2. The term of protection for a trademark in India is 10 years, after which it can be renewed.
3. Copyrights are considered territorial rights, meaning their protection does not automatically extend beyond the jurisdiction where they are granted.

Accepted Answer

Only two. Statement 1 is incorrect. Patent protection is a territorial right. This means a patent granted in one country, such as India, is only valid within that country's borders. To get protection in other countries, separate patent applications must be filed in each of those countries. There is no such thing as a worldwide patent. Statement 2 is correct. In India, the initial term of protection for a registered trademark is 10 years. After this period, the registration can be renewed for subsequent periods of 10 years, allowing for potentially indefinite protection as long as it is renewed. Statement 3 is correct. Copyrights are territorial rights, meaning their legal protection is generally confined to the jurisdiction of the country where they are granted. While international agreements like the Berne Convention provide a framework for reciprocal protection in other signatory countries, the right itself does not automatically extend globally from a single grant. Therefore, two statements (2 and 3) are correct.

Question 14

Consider the following statements regarding the WTO's Dispute Settlement Mechanism:
1. If bilateral consultations fail, a member state may request the Ministerial Conference for adjudication of the dispute.
2. A judgment by the Dispute Settlement Body (DSB) can be challenged by the parties at the Appellate Body of the WTO.
3. The order of the WTO Appellate Body is binding, and if an erring country fails to comply, the WTO is empowered to impose financial penalties.

Accepted Answer

Only one. Statement 1 is incorrect. When bilateral consultations between member states fail to resolve a dispute, a member can request the establishment of a panel. This request is made to the Dispute Settlement Body (DSB), not the Ministerial Conference. The DSB is the WTO's General Council meeting to settle trade disputes. Statement 2 is correct. A report issued by a dispute panel, which forms the basis of the DSB's judgment, can be appealed by either party to the dispute. These appeals are heard by the WTO's Appellate Body. Statement 3 is incorrect. While the rulings of the Appellate Body are binding, the WTO itself does not impose financial penalties. If a country fails to comply with a ruling, the complaining party can request authorization from the DSB to take retaliatory measures (like suspending trade concessions) against the non-compliant member. Therefore, only one statement is correct.

Question 15

With reference to the G20, consider the following statements:
1. The G20 operates through a permanent secretariat and staff to ensure continuity in its agenda and policy implementation.
2. The G20's primary and exclusive mandate is to address insolvency and protracted liquidity problems in low-income countries through its Common Framework.
3. The International Monetary Fund (IMF) exercises an oversight role and its policy recommendations are binding on the G20 member nations.

How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The text explicitly states that the G20 'has no permanent staff of its own'. The chairmanship rotates annually among member nations. Statement 2 is incorrect. While the G20 did introduce the Common Framework to deal with debt issues, its overall mandate is much broader. It was established to 'discuss key issues in the global economy' and has worked on issues like the 2008 financial crisis, financial sector reforms, and climate change. The mandate is not exclusively limited to the Common Framework. Statement 3 is incorrect. The text mentions that the 'IMF works closely with the G20'. This implies cooperation, not a formal 'oversight role' or that its recommendations are 'binding' on the sovereign member countries of the G20.

Question 16

Consider the following statements:

Statement-I: The G33 is a coalition of developing countries, many of which are net importers of agricultural products, that advocates for the protection of their domestic farmers from import surges.

Statement-II: The G33 was formed to counter the push for extensive market opening in agriculture by demanding mechanisms like Special Products exemptions and Special Safeguard Mechanisms in WTO negotiations.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.. Statement-I is correct. The text identifies the G33 as a forum of 'developing countries', many of which are 'net agri-products importing developing countries' with 'defensive farm interests that involve protecting farmers from imports'. Statement-II is also correct. The text lists the G33's demands, which include 'Limitation on the level of market opening', 'Creation of special product exemption', and a 'Special safeguard mechanism which would allow tariff increases against import surges'. These demands are the specific policy tools the group advocates for. Statement-II correctly explains Statement-I because the reason this specific coalition of developing countries (as described in Statement-I) exists is to collectively pursue the negotiating objectives (as described in Statement-II) within the framework of agricultural trade talks.

Question 17

Consider the following pairs regarding India's association with international groupings:
1. ASEAN : Dialogue Partner
2. Asia-Pacific Economic Cooperation (APEC) : Member Country
3. South Asia Subregional Economic Cooperation (SASEC) : Member Country

How many of the above pairs are correctly matched?

Accepted Answer

Only two. Pair 1 is correctly matched. The text states that India has been a 'Dialogue partner of ASEAN since 1996'. Pair 2 is incorrectly matched. The provided list of 21 APEC members does not include India. Pair 3 is correctly matched. The text explicitly lists the 'Members of SASEC include Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal and Sri Lanka'. Therefore, two of the three pairs are correctly matched.

Question 18

Consider the following statements regarding international energy organisations:

Statement-I: The International Energy Agency (IEA) was established with the primary objective of coordinating petroleum policies among member countries to secure fair and stable prices for petroleum producers.

Statement-II: India, the world’s third-largest energy consumer, is an association country of the IEA and has been invited to become a full-time member.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct.. Statement-I is incorrect. The objective described, 'Coordination and unification of petroleum policies among member countries to secure fair and stable prices for petroleum producers,' belongs to the Organisation of Petroleum Exporting Countries (OPEC). The International Energy Agency (IEA) was established during the 1973-74 oil crisis to ensure the supply and security of oil for consumer nations. Statement-II is correct. The provided text explicitly states that 'India became an association country of IEA in 2017' and 'The IEA invited India, the world’s third-largest energy consumer, to join as a full-time member in 2021'.

Question 19

Consider the following statements:

1. The 'World Oil Outlook (WOO)' is a flagship publication of the International Energy Agency (IEA).
2. The 'World Energy Outlook (WEO)' is an energy report published by the Organisation of Petroleum Exporting Countries (OPEC).
3. A country must be a member of the Organisation for Economic Co-operation and Development (OECD) to join the IEA.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The 'World Oil Outlook (WOO)' is the flagship publication of the Organisation of Petroleum Exporting Countries (OPEC), not the IEA. Statement 2 is incorrect. The 'World Energy Outlook (WEO)' is a key publication of the International Energy Agency (IEA), not OPEC. The first two statements have swapped the organizations and their respective reports. Statement 3 is correct. A country must be a member of the Organisation for Economic Co-operation and Development (OECD) to be eligible for membership in the IEA. Thus, only one of the statements is correct.

Question 20

With reference to the Organisation of Petroleum Exporting Countries (OPEC), consider the following statements:

1. It is a permanent inter-Governmental organisation created at the Baghdad Conference in 1960.
2. Angola recently withdrew its membership, while Congo was the last country to join the organisation.
3. All Arab petroleum exporting countries are members of OPEC.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The text states that OPEC is a permanent inter-Governmental organisation created at the Baghdad Conference in 1960. Statement 2 is correct. The text mentions that 'Angola has withdrawn its membership from OPEC (effective from 1st January 2024)' and 'The last member to join was Congo in 2018.' Statement 3 is incorrect. The text provides a list of OAPEC (Organisation of Arab Petroleum Exporting Countries) members which includes Bahrain, Egypt, Qatar, Syria, and Tunisia. These countries are not listed as members of OPEC, indicating that not all Arab petroleum exporting countries are members of OPEC. Therefore, only two statements are correct.

Question 21

With reference to the trends in India's external sector in recent years, consider the following statements:

Statement-I: India's merchandise trade deficit has generally remained at elevated levels, influenced significantly by volatile global commodity prices and fluctuating external demand.

Statement-II: The pressure from the merchandise trade deficit is further intensified by a consistently contracting services trade surplus.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct, but Statement-II is incorrect.. Statement-I is a correct assessment; India's merchandise trade deficit is persistently high, largely due to import bills for commodities like crude oil and gold, and is sensitive to global demand shifts. Statement-II is incorrect and presents a 'Directional Inversion'. Contrary to the statement, India's services trade surplus has been robust and generally growing, acting as a significant cushion against the merchandise trade deficit, not 'contracting' or 'intensifying' the pressure. While the rate of growth in services exports may face headwinds, the surplus itself has not been consistently contracting.

Question 22

In the context of evolving international trade policies and global climate action, consider the following statements regarding the Carbon Border Adjustment Mechanism (CBAM):

1. It is a World Trade Organization (WTO) mandated tariff to address climate change.
2. It is designed to apply to both carbon-intensive goods and digital services.
3. Its primary objective is to prevent 'carbon leakage' from the implementing region.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect; CBAM is a unilateral measure by the European Union, not a WTO-mandated one. It has, in fact, raised concerns about its compatibility with WTO rules. Statement 2 is incorrect; it applies to specific imported goods (like steel, cement, electricity), not services. This is a 'Classification Swap' trap. Statement 3 is correct; CBAM aims to equalize the carbon price on domestic and imported goods to prevent industries from moving to regions with laxer emission norms, an effect known as 'carbon leakage'.

Question 23

Consider the following statements regarding recent trends in international economic policy:

Accepted Answer

2 and 3 only. {'statement_1': "Incorrect. The term 'friend-shoring' or 'ally-shoring' refers to diversifying supply chains to countries that are geopolitical allies and share similar values. However, the term 'exclusively' makes this statement incorrect. The focus is on political and economic alignment, not strictly formal military alliances. For instance, the US may 'friend-shore' to countries like Vietnam or Mexico, which are not formal military treaty allies in the same way as NATO members.", 'statement_2': 'Correct. The Production-Linked Incentive (PLI) schemes are designed with the dual objective of making Indian manufacturers globally competitive and reducing import dependency. The mechanism involves providing companies with financial incentives on incremental sales of products manufactured in domestic units. By rewarding increased domestic production, the scheme directly boosts the manufacturing sector and encourages the substitution of imported goods with locally produced ones.', 'statement_3': "Correct. The India-EFTA Trade and Economic Partnership Agreement (TEPA) contains a novel and legally binding commitment. The EFTA states (Switzerland, Iceland, Liechtenstein, and Norway) have committed to promoting investments to increase the stock of foreign direct investment by USD 100 billion in India over the 15 years following the agreement's implementation. This investment is targeted to facilitate the creation of 1 million jobs in India, making it a direct and binding commitment on both investment and employment."}

Question 24

Consider the following statements regarding contemporary trends in the global energy sector:
1. Recent analyses indicate that global demand for all three major fossil fuels—coal, oil, and natural gas—is projected to peak before 2030 under current policy scenarios.
2. Natural gas is increasingly viewed as a long-term 'bridge fuel', with its global demand projected to grow continuously beyond 2030.
3. A recent and unprecedented shift in energy finance has seen annual global investment in clean energy surpass that in fossil fuels for the very first time.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. Authoritative global energy outlooks project that the rapid expansion of clean energy technologies and supportive policies are accelerating the energy transition. This leads to a forecast where demand for all three major fossil fuels—coal, oil, and natural gas—is expected to peak before 2030 under current policy scenarios. Statement 2 is incorrect. This is a directional inversion of current projections. While previously seen as a long-term bridge fuel, recent analysis suggests that even natural gas demand will peak before 2030, shortening its expected role in the transition. Statement 3 is incorrect. Although global investment in clean energy is now substantially higher than in fossil fuels, this is not a first-time event. The milestone of clean energy investment surpassing fossil fuel investment was achieved in previous years, making the current situation a continuation of an established trend, not an 'unprecedented' or 'first-time' shift.

Question 25

With reference to the 'World Energy Outlook' report, consider the following statements:

Statement-I: The report often highlights a significant 'clean energy divide', with investments heavily concentrated in advanced economies and China.
Statement-II: The International Energy Agency (IEA), which publishes the report, has the authority to mandate corrective financial flows to bridge this divide.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct. The World Energy Outlook reports consistently emphasize the growing disparity in clean energy investment as a major challenge for a global transition. Statement-II is incorrect. The IEA is an influential intergovernmental organization providing policy analysis and recommendations; however, it does not possess the legal authority or mandate to enforce financial regulations or direct investment flows between countries. This is an 'Authority/Exclusion' trap.

Question 26

Consider the following statements regarding major trends in the global energy sector:
1. Green hydrogen is generally classified as a 'mature' renewable technology, with its growth projected to soon outpace that of solar PV.
2. It is widely projected that global electricity generation from all renewable sources combined will surpass that from coal in the near future.
3. A consistent trend observed globally is the decoupling of economic growth from energy consumption, indicating improvements in energy intensity.

Which of the statements given above are correct?

Accepted Answer

2 and 3 only. Statement 1 is incorrect. This is a 'Classification Swap'. Green hydrogen is considered a 'nascent' or 'emerging' technology, not mature. Its development faces significant cost and infrastructure challenges. In contrast, solar PV is a mature technology with established growth. Statement 2 is correct. The rapid and continuous decline in the costs of key renewable technologies, particularly solar PV and wind, combined with strong policy support globally, has led to exponential growth in their deployment. Consequently, it is a consensus projection that the total electricity generated from renewable sources is on track to surpass that from coal in the near future, marking a pivotal moment in the global energy transition. Statement 3 is correct. The decoupling of GDP growth from energy consumption is a well-documented long-term trend, reflecting global gains in energy efficiency and a structural shift in economies towards less energy-intensive sectors. This is measured by a falling energy intensity (energy consumed per unit of GDP).

International Economic Organisations and India

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