Question 1

With reference to the evaluation bodies related to the Planning Commission, consider the following statements:
1. The Programme Evaluation Organisation (PEO) was established in 2014, modelled on the lines of Mexico’s National Council for the Evaluation of Social Development Policy.
2. The Independent Evaluation Office (IEO) was established in October 1952 with the specific task of evaluating community development programmes.
3. The PEO is primarily a field-level organisation with a three-tier structure, whereas the IEO was conceived as an independent office attached to the Planning Commission and funded by it.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The Independent Evaluation Office (IEO), not the PEO, was created in 2014 and was modelled on Mexico’s National Council for the Evaluation of Social Development Policy. Statement 2 is incorrect. The Programme Evaluation Organisation (PEO), not the IEO, was established in October 1952 to evaluate community development programmes. The statements swap the origins and establishment dates of the two distinct bodies. Statement 3 is correct. The PEO is described as a field-level organisation with a three-tier structure (Headquarters, Regional Offices, Field Units). The IEO was designed as an independent office attached to the Planning Commission, to be funded by it.

Question 2

Consider the following statements regarding the National Development Council (NDC):
1. The NDC was a statutory body established by an Act of Parliament to ensure cooperative federalism in planning.
2. The initial composition of the NDC in 1952 included the Prime Minister, all Union Cabinet Ministers, and the Chief Ministers of all States.
3. Following its reconstitution in 1967, the Secretary of the Planning Commission was designated to act as the Secretary to the NDC.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The NDC was set up by a Cabinet Secretariat Resolution, not by an Act of Parliament. This makes it an extra-constitutional and non-statutory body, similar in legal status to the erstwhile Planning Commission. Statement 2 is incorrect. The initial composition of the NDC in 1952 comprised the Prime Minister, the Chief Ministers of all States, and the Members of the Planning Commission. Union Cabinet Ministers were included only after the reconstitution of the NDC in 1967. Statement 3 is correct. The reconstituted Council's arrangements specified that the Secretary of the Planning Commission would also act as the Secretary to the NDC, and the Planning Commission would provide administrative assistance.

Question 3

Consider the following statements regarding fiscal federalism and planning in India:
1. The Constitution of India explicitly classifies the functions of the Finance Commission into determining capital and revenue-related assistance for the states.
2. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, empowered state governments to undertake market borrowings for their plan expenditure only after obtaining prior permission from the Central Government.
3. In the pre-reform era, the Planning Commission, a non-constitutional body, was often seen as eclipsing the role of the constitutional Finance Commission in the domain of central financial assistance to states for development.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The Constitution does not classify the Finance Commission's role based on capital or revenue-related assistance when determining the Centre's assistance to the states; this distinction was a functional outcome of the planning process. Statement 2 is incorrect. The FRBM Act, 2003, empowered state governments to go for market borrowings to fulfil their plan expenditure *without* prior permission from the Central Government, provided they had enacted their own respective Fiscal Responsibility Acts. The statement inverts the actual provision. Statement 3 is correct. Due to the Planning Commission's purview over all development plans, programmes, and projects, it practically determined all developmental grants and loans from the Centre to the states. This led to the observation that the non-constitutional Planning Commission was 'eclipsing' the role of the constitutional Finance Commission.

Question 4

Consider the following statements regarding the rationale provided for replacing the Planning Commission with NITI Aayog:

1. A key economic shift cited was the dramatic increase in agriculture's share in the Gross Domestic Product (GDP) to over 50 percent.
2. The changing nature of the private sector necessitated a paradigm shift for the government, from its role as a 'catalyst' to becoming a 'provider of first and last resort'.
3. The growing integration of the Indian economy with the global economic system was recognized as a significant factor requiring a new policy-making framework.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The economic shift mentioned was a dramatic drop in agriculture's share in the GDP, from more than 50 percent to less than 15 percent, not an increase. Statement 2 is incorrect. The text describes the required transition for the government as moving from being a 'provider of first and last resort' to becoming a 'catalyst' that nurtures an enabling environment for the private sector. The statement inverts this direction. Statement 3 is correct. The increasing influence of global dynamics on India's economy and India's contribution to them ('Forces of globalisation') was identified as a reason for needing a new framework for policy-making that incorporates these realities.

Question 5

With reference to the structure of the NITI Aayog, consider the following statements:

1. The Governing Council comprises the Chief Ministers of all states, Lt. Governors of union territories, and experts nominated by the Prime Minister as special invitees.
2. The full-time organizational framework allows for a maximum of four part-time members to be selected from leading universities and research organizations on a rotational basis.
3. Regional Councils, formed to address specific inter-state issues, are convened by the Prime Minister and are jointly headed by a Chief Minister from the group and a corresponding Central Minister.

How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The Governing Council comprises the Chief Ministers of all states and Lt. Governors of union territories with legislatures (and administrators for other UTs). Special Invitees, who are experts and specialists, are a separate category nominated by the Prime Minister and are not members of the Governing Council.
Statement 2 is incorrect. The structure allows for a maximum of two part-time members, not four. The provision for a maximum of four members applies to Ex-Officio members from the Union Council of Ministers.
Statement 3 is incorrect. Regional Councils are convened by the Prime Minister to address specific inter-state issues and are chaired by the Prime Minister (as Chairperson of NITI Aayog) or his nominee, not jointly headed by a Chief Minister and a Central Minister.
Since all three statements are incorrect, the correct option is 'None'.

Question 6

Consider the following statements regarding the Bombay Plan and the National Planning Committee (NPC):
1. Both the Bombay Plan and the NPC agreed on the necessity of agrarian restructuring, including the abolition of the zamindari system.
2. A key point of divergence was that the NPC favoured a dominant role for the state in the economy, while the Bombay Plan advocated for undiluted laissez-faire.
3. Taking cues from Soviet Planning, both plans agreed to prioritize the development of essential consumer goods industries over heavy and basic industries.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. Both plans had a basic agreement on agrarian restructuring, which included the abolition of all intermediaries (i.e., zamindari abolition). Statement 2 is incorrect. Both the Bombay Plan and the NPC wanted the state to play an active role in the economy through planning, controlling, and overseeing different areas via state ownership or direct control. The text notes that by 1934, the leading capitalist organization FICCI had proclaimed that the days of undiluted laissez-faire were gone. Statement 3 is incorrect. Both plans emphasized heavy capital goods and basic industries. The development of essential consumer goods industries was considered a simultaneous but 'low-key affair'.

Question 7

Consider the following statements regarding post-independence planning and decentralisation:
1. The Jayprakash Narayan Committee (1961) observed that there was no longer a valid reason to continue with subject-wise individual fund allocations from the centre after the acceptance of Panchayati Raj.
2. Following the committee's advice, central schemes like the Drought-Prone Area Programme (DPAP) were brought under the purview of Panchayats to strengthen democratic decentralisation.
3. The Gandhian Plan, formulated by Sriman Narayan Agarwal, articulated a 'decentralised economic structure' with 'self-contained villages'.
How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The Jayprakash Narayan Committee (1961) pointed out that after accepting Panchayati Raj as the agency for planning and execution, there was 'no longer any valid reason for continuing the individual allocations subjectwise'. Statement 2 is incorrect. The government acted contrary to the committee's advice. Central schemes like DPAP and SFDA were introduced and 'put totally outside the purview of Panchayats', which disregarded the committee's advice and increased centralization. Statement 3 is correct. The Gandhian Plan, formulated by Sriman Narayan Agarwal in 1944, articulated a 'decentralised economic structure' for India with 'self-contained villages'.

Question 8

Consider the following statements:
Statement-I: The People's Plan, formulated by M. N. Roy, was based on Marxist socialism and advocated for providing the people with the 'basic necessities of life'.
Statement-II: The slogan 'Economic reforms with the human face', associated with the reforms of the early 1990s, is considered to have resonance with the principles articulated in the People's Plan.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I.. Statement-I is correct. The People's Plan, formulated by M.N. Roy, was explicitly based on Marxist socialism and its primary goal was to provide the 'basic necessities of life'. Statement-II is also correct. The text mentions that the slogan 'Economic reforms with the human face' from the early 1990s has resonance with the People's Plan. However, Statement-II is not the correct explanation for Statement-I. Statement-II provides an example of the plan's later influence and legacy, but it does not explain the ideological basis or the core objective of the plan as mentioned in Statement-I. The two statements are factually correct and related, but one does not causally explain the other.

Question 9

Consider the following statements regarding schemes under Indian planning:
1. Central Sector Schemes are entirely funded by the Union Government and are implemented by the Central Government machinery.
2. Centrally Sponsored Schemes (CSSs) are formulated on subjects from the Union List to encourage states to prioritize certain areas.
3. Under a Centrally Sponsored Scheme, the implementation is carried out by the state governments or their agencies.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. Central Sector Schemes are defined as being 100% funded by the Union Government and implemented by its own machinery. Statement 2 is incorrect. This is a classification swap. Centrally Sponsored Schemes (CSSs) are formulated on subjects from the State List, not the Union List, to encourage states to act on subjects within their legislative domain that require national priority. Statement 3 is correct. The implementation of Centrally Sponsored Schemes is the responsibility of the state governments and their agencies, with the Centre providing a share of the funding.

Question 10

Consider the following statements:
Statement-I: The period of three consecutive Annual Plans from 1966 to 1969 is often referred to as a "Plan Holiday".
Statement-II: The Janata Government, after coming to power in 1977, terminated the Fifth Plan ahead of schedule and introduced the concept of a "Rolling Plan" for the period 1978–83.

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

Accepted Answer

Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation of Statement-I.. Statement-I is correct. The period between 1966 and 1969 saw three consecutive Annual Plans instead of a Five-Year Plan due to a weak financial situation and low morale after the war with China. Critics termed this period a "Plan Holiday". Statement-II is also correct. The Janata Government, upon assuming power, did cut short the Fifth Plan in 1978 (one year early) and launched its own Sixth Plan (1978–83), which was termed a "Rolling Plan". However, Statement-II does not explain Statement-I. The "Rolling Plan" of the late 1970s is a separate and distinct event from the "Plan Holiday" of the late 1960s. The two events occurred at different times and for different political and economic reasons.

Question 11

With reference to the objectives and challenges outlined in India's Five-Year Plans, consider the following statements:
1. The Twelfth Plan's approach paper identified higher agricultural growth as a key factor for restraining inflationary pressure in the economy.
2. The Tenth Plan accepted the 'agriculture sector' as the Prime Moving Force (PMF) of the economy, with one of the stated goals being to reverse 'market failure' by boosting the purchasing power of the masses.
3. The Twelfth Plan's approach paper indicated that for the GDP to grow at 9 per cent, commercial energy supplies would need to grow at a rate of at least 10 per cent per year.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The Twelfth Plan approach paper noted that higher growth in agriculture would help restrain inflation that could arise from high overall growth without a corresponding increase in domestic food production capabilities. Statement 2 is correct. The Tenth Plan explicitly accepted agriculture as the PMF, arguing that it would increase the purchasing power of the masses, thereby reversing the long-standing situation of 'market failure' where industrial goods lacked a sufficient market. Statement 3 is incorrect. This is a conceptual direction trap. The text explicitly states that for a 9 per cent GDP growth, commercial energy supplies would have to grow at a rate between 6.5 and 7 per cent per year. This rate is significantly lower than the GDP growth rate itself, not higher.

Question 12

Consider the following statements regarding NITI Aayog:
1. Its recommendations, formulated after consultation with states, are binding on the Central Government.
2. It is a statutory body that has been granted the financial power to allocate funds to State Governments.
3. It follows a 'bottom-up' approach, in contrast to the 'top-down' model of the erstwhile Planning Commission.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. NITI Aayog is an advisory body, often referred to as a 'think tank'. Its recommendations are not binding on the Central Government. Statement 2 is incorrect. NITI Aayog is a non-constitutional and non-statutory body, established through an executive resolution. It does not possess financial powers to allocate funds to State Governments; this function is handled by the Finance Ministry. Statement 3 is correct. NITI Aayog was designed to follow a 'bottom-up' approach, fostering cooperative federalism. This is a departure from the 'top-down' model of the erstwhile Planning Commission, as it emphasizes the formulation of plans at the village level and their aggregation upwards. Therefore, only one of the statements is correct.

Question 13

Consider the following statements regarding the National Development Agenda formulated by NITI Aayog:
1. The Vision document is a perspective plan with a 15-year duration.
2. The Strategy document is a 3-year plan designed to convert the long-term vision into implementable policy.
3. The Action Plan document is a 7-year short-term plan to translate policies into concrete actions.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. The Vision document is a perspective plan covering a duration of 15 years. Statement 2 is incorrect. The Strategy Document is a seven-year plan, not a three-year plan. Statement 3 is incorrect. The Action Plan Document is a three-year short-term action plan, not a seven-year plan. The timeframes for the Strategy and Action Plan documents have been swapped. Therefore, only one statement is correct.

Question 14

Consider the following statements regarding the composition and structure of NITI Aayog:
1. The Governing Council of NITI Aayog is chaired by the Prime Minister and includes Chief Ministers of all States and Lieutenant Governors of Union Territories.
2. The 'Team India Hub' is the division within NITI Aayog responsible for building its think tank capabilities and dealing with different sectors.
3. In addition to full-time members, NITI Aayog has a provision for a maximum of four part-time members who are appointed on a rotational basis.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. The Prime Minister is the Chairperson of NITI Aayog, and the Governing Council comprises the Chief Ministers of States and Lieutenant Governors of Union Territories. Statement 2 is incorrect. The 'Knowledge and Innovation Hub' is responsible for building think tank capabilities. The 'Team India Hub' acts as the interface between the Central Government and the States. Statement 3 is incorrect. NITI Aayog has a provision for a maximum of two part-time members, not four. Therefore, only one statement is correct.

Question 15

With reference to the initiatives involving NITI Aayog, consider the following statements:

1. NITI Aayog is the primary implementing agency for the National Nutrition Mission (POSHAN Abhiyaan).
2. The Agriculture Export Policy was formulated and launched exclusively by NITI Aayog to address the global export environment.
3. The Atal Innovation Mission (AIM) was launched under NITI Aayog to foster an innovation and entrepreneurship ecosystem.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The National Nutrition Mission (POSHAN Abhiyaan) was launched by the Ministry of Women and Child Development (MoWCD). NITI Aayog's role is limited to monitoring and evaluation of the mission, not implementation. Statement 2 is incorrect. NITI Aayog only provided inputs to the Ministry of Commerce and Industry for the Agriculture Export Policy; it did not formulate or launch it exclusively. Statement 3 is correct. The text explicitly states that the Atal Innovation Mission (AIM) was launched under NITI Aayog to build an innovative mindset in the country's entrepreneurship ecosystem. Therefore, only one statement is correct.

Question 16

Consider the following statements regarding initiatives associated with NITI Aayog:

1. The 'Sustainable Action for Transforming Human Capital (SATH)' initiative is primarily focused on developing infrastructure through Private-Public Partnerships.
2. The establishment of Gramin Agricultural Markets (GrAMs) was a key component of the Aspirational Districts Programme.
3. Atal Tinkering Labs (ATLs) are established in universities as part of the 'Performance-Based Graded Autonomy Framework' to foster creativity.

How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The 'Sustainable Action for Transforming Human Capital (SATH)' initiative aims to bring transformative change by assisting states in improving their social sector indicators. The initiative focused on infrastructure and Private-Public Partnerships is the 'Development Support Services to States (DSSS)'. Statement 2 is incorrect. The development of Gramin Agricultural Markets (GrAMs) was announced in the 2018–19 Budget as part of agricultural sector reforms. The Aspirational Districts Programme is a separate initiative focused on transforming underdeveloped districts. Statement 3 is incorrect. Atal Tinkering Labs (ATLs) are established in schools, not universities, under the Atal Innovation Mission (AIM). The 'Performance-Based Graded Autonomy Framework' is a separate reform for universities. Therefore, none of the statements are correct.

Question 17

Consider the following two statements:

Statement-I: NITI Aayog has been actively involved in the formulation of a wide range of policies and model acts, including the National Energy Policy and the Model Agriculture Land Leasing Act, 2016.

Statement-II: NITI Aayog functions primarily as a recommendatory body and think tank, which limits its power to directly influence private or public investment or enforce its proposals.

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 provided text confirms that NITI Aayog initiated the drafting of the National Energy Policy and formulated the Model Agriculture Land Leasing Act, 2016. Statement-II is also correct. The text explicitly mentions that NITI Aayog has been transformed into a 'glorified recommendatory body' that 'lacks the requisite power' and has a 'less role in influencing private or public investment'. Statement-II provides the structural context for Statement-I; NITI Aayog's role is in 'formulation' and 'drafting' (as mentioned in Statement-I) precisely because it is a 'recommendatory body' (as explained in Statement-II) and not an executive or implementing agency. Thus, Statement-II correctly explains the nature of the activities described in Statement-I.

Question 18

Consider the following statements regarding indices developed by NITI Aayog and its partners:

1. The State Health Index initiative is spearheaded by NITI Aayog in collaboration with the Ministry of Health and Family Welfare and with technical assistance from the United Nations.
2. The Sustainable Development Goals (SDG) India Index is developed by NITI Aayog in partnership with the World Bank.
3. The SDG Urban Index was developed by NITI Aayog under the Indo-German Cooperation.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The State Health Index was developed by NITI Aayog in collaboration with the Ministry of Health and Family Welfare (MoHFW) and with technical assistance from the World Bank, not the United Nations. Statement 2 is incorrect. The SDG India Index was developed by NITI Aayog in partnership with the United Nations in India, not the World Bank. Statement 3 is correct. The SDG Urban Index was developed by NITI Aayog in collaboration with the German Federal Ministry for Economic Cooperation and Development (BMZ) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) as part of the Indo-German Cooperation. Therefore, only one of the given statements is correct.

Question 19

With reference to the India Innovation Index, consider the following statements:

1. The index is calculated as the average of the scores of its two dimensions: 'Enablers' and 'Performance'.
2. 'Human Capital' and 'Investment' are pillars under the 'Performance' dimension.
3. 'Knowledge Diffusion' is a pillar under the 'Enablers' dimension.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. The index is calculated as the average of the scores of its two dimensions: 'Enablers' and 'Performance'. Statement 2 is incorrect. 'Human Capital' and 'Investment' are two of the five pillars under the 'Enablers' dimension, not the 'Performance' dimension. Statement 3 is incorrect. 'Knowledge Diffusion' is one of the two pillars under the 'Performance' dimension, not the 'Enablers' dimension. Therefore, only one statement is correct.

Question 20

Consider the following two statements:

Statement-I: The SDG India Index 2020-21 is considered more comprehensive than its previous editions.
Statement-II: The framework of the SDG India Index 2020-21 is aligned with the National Indicator Framework (NIF) and covers 115 indicators, which is a broader range than before.

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 as the provided text explicitly states, 'The SDG India Index 2020-21 was more comprehensive than previous editions, incorporating a broader range of targets and indicators.' Statement-II is also correct, as the text mentions that the index is aligned with the National Indicator Framework (NIF) and tracks progress on 115 indicators. The reason for the index's increased comprehensiveness is precisely its incorporation of a broader range of targets and indicators (115 in total), as mentioned in Statement-II. Therefore, both statements are correct, and Statement-II provides the correct explanation for Statement-I.

Question 21

With reference to India's energy security strategy, consider the following statements:

1. Enhancing domestic energy infrastructure is a primary strategy to mitigate risks associated with high import dependence.
2. The 'One Nation, One Grid, One Tariff' regime for natural gas pipelines was implemented to increase regional cost disparities.
3. Under its expansion phase, Strategic Petroleum Reserves are being established in both coastal and land-locked states.

How many of the statements given above are correct?

Accepted Answer

Only one. Statement 1 is correct: A core tenet of India's energy security policy is to reduce vulnerability from its high dependence on imported energy. Expanding domestic infrastructure, such as pipelines, storage facilities, and refining capacity, is a key method to manage supply chain risks and improve energy resilience. Statement 2 is incorrect: The unified pipeline tariff policy aims to reduce, not increase, regional cost disparities. By creating a single tariff zone, it seeks to rationalize gas transportation costs and promote the use of natural gas in regions farther from the source. Statement 3 is incorrect: The new Strategic Petroleum Reserve facilities under Phase-II are planned at Chandikhol (Odisha) and Padur (Karnataka). Both locations are in coastal states, not land-locked ones, to facilitate easy filling from sea-borne imports.

History Five-Year Plans and NITI Aayog

Unlock All Questions