Explanation:
- Bhutan: Bhutan became the first neighbouring country to accept BHIM-UPI based mobile payments. This occurred prior to 2024.
- UAE: UPI QR-based payments were enabled in 2021 through partnership with Network International.
- Singapore: The partnership with HitPay to allow UPI payments in Singapore was made in 2023.
- France: No. France became the first European country to widely accept UPI only in 2024.
Thus, the correct set of countries that enabled UPI transactions before 2024 is: Bhutan, UAE, and Singapore.
Answer: (b) 1, 2 and 3 only
Explanation:
- Statement 1: Correct. France became the first European country to widely accept India’s UPI payment system in 2024.
- Statement 2: Correct. Bhutan was the first country in India’s immediate neighbourhood to enable mobile-based payments via BHIM App.
- Statement 3: Incorrect. UAE adopted UPI payments earlier in 2021, while Singapore expanded UPI acceptance later in 2023.
Answer: (a) 1 and 2 only
Trinidad and Tobago Embraces UPI for Digital Transactions
Trinidad and Tobago has become the first country in the Caribbean region to adopt India's Unified Payments Interface (UPI) system, enabling transactions via the BHIM app. This move marks a significant step in strengthening digital cooperation between the two nations.
The announcement came during Indian Prime Minister Narendra Modi’s official visit to Trinidad and Tobago from July 3 to 4. He was hosted by Kamla Persad-Bissessar, the Prime Minister of Trinidad and Tobago. During the visit, both countries expressed a keen interest in expanding their partnership in digital technologies.
With this development, Trinidad and Tobago joins a growing list of nations around the world that have integrated UPI into their payment systems.
Countries Currently Using India’s UPI System
- France: Became the first country in Europe to allow widespread UPI-based payments in 2024. This was enabled through a partnership between NPCI International and Lyra.
- United Arab Emirates (UAE): In 2021, UPI QR code-based payments were made available through a partnership with Network International.
- Bhutan: Adopted BHIM UPI QR code payments in 2021 via its central bank and became the first neighbouring country to align with India’s UPI system.
- Nepal: In 2024, UPI was integrated through a partnership with Fonepay, enabling cross-border digital transactions.
- Mauritius: Launched UPI in 2024 during a joint event led by Prime Ministers Modi and Pravind Jugnauth.
- Sri Lanka: UPI was introduced in 2024 alongside Mauritius, in the presence of President Ranil Wickremesinghe and PM Modi.
- Singapore: Extended UPI services in 2023 via a collaboration with fintech firm HitPay, making UPI available across multiple merchant points.
Explanation:
- Statement 1: Correct. The Gulf of Paria is located between Trinidad and Venezuela, and it connects to the Caribbean Sea via the Dragon’s Mouths (to the north) and to the Atlantic Ocean via the Serpent’s Mouth (to the south).
- Statement 2: Correct. The Northern Range of Trinidad is indeed a geological extension of the coastal Andes Mountains of Venezuela.
- Statement 3: Incorrect. The Dragon’s Mouths and Serpent’s Mouth straits are between Trinidad and Venezuela, not between Trinidad and Tobago.
Answer: (a) 1 and 2 only
PM Modi Celebrates Indian Heritage in Trinidad and Tobago
During his visit to Port of Spain, the capital of Trinidad and Tobago, Prime Minister Narendra Modi addressed a large gathering of the Indian diaspora. In his speech, he paid tribute to the enduring contributions of individuals of Indian origin who have shaped the cultural and historical legacy of the island nation.
He mentioned several distinguished personalities with Indian ancestry, including:
- Dr. Rudranath Capildeo (1920–1970): A renowned mathematician and influential political figure in Trinidad.
- Sundar Popo: A legendary musician widely known as the “King of Chutney,” a genre that blends Indian and Caribbean musical styles.
- Daren Ganga: A former cricketer who represented the West Indies and is celebrated for his achievements on the international stage.
Prime Minister Modi also highlighted the inspiring story of Sewdass Sadhu, an indentured laborer remembered for his remarkable devotion and perseverance. Despite limited means, Sadhu is credited with building the iconic “Temple in the Sea” entirely on his own. This temple, located in the Gulf of Paria between Trinidad and the Venezuelan coast, stands as a symbol of faith and resilience.
- Statement 1: Correct. Mount Aripo (El Cerro del Aripo), at 940 metres, is the highest point in the country and is located in the Northern Range of Trinidad.
- Statement 2: Correct. Trinidad and Tobago lies northeast of Venezuela and northwest of Guyana, near the South American mainland.
- Statement 3: Incorrect. Tobago is smaller and less mountainous than Trinidad; it does not have higher elevation than Mount Aripo.
Answer: (a) 1 and 2 only
- Statement I: Correct. India’s fertiliser security is indeed vulnerable to Middle East geopolitical instability, as a significant portion of urea and DAP is imported from the region.
- Statement II: Incorrect. Muriate of Potash (MOP) is not primarily sourced from Gulf countries. India imports 100% of its MOP, mainly from Canada, Belarus, and Israel, not from Qatar, Saudi Arabia, or Oman.
Answer: (c) Statement I is correct but Statement II is incorrect
India’s Fertiliser Security and Its Dependence on the Middle East
India’s fertiliser supply is closely tied to the Middle East, as the region plays a vital role in meeting both the country’s demand for finished fertilisers and the natural gas needed for domestic fertiliser production. Countries such as Qatar, Saudi Arabia, and Oman are key suppliers in this regard.
Strategic Dependence on Gulf Nations
In 2023, nearly 20–25% of India’s total fertiliser imports came from Gulf countries. These shipments typically transit through the Strait of Hormuz, a narrow yet strategically important maritime route connecting India to the Persian Gulf. Any escalation of regional tensions in this area can potentially disrupt shipping, delay deliveries, and impact the global prices of fertilisers and natural gas. Such disruptions would particularly affect India’s agricultural sector by raising input costs and hampering timely fertiliser availability to farmers.
Composition of Fertiliser Imports
- Urea: Around 20% of India’s urea requirements are met through imports, with the Gulf playing a significant role as a supplier.
- Diammonium Phosphate (DAP): Approximately 60% of DAP is imported, a large share of which also comes from Gulf nations.
- Muriate of Potash (MOP): India is entirely dependent on imports for MOP (100%), but these supplies come primarily from Canada, Belarus, and Israel, making them less vulnerable to Middle Eastern instability.
- Statement I: The National Sample Survey was launched in 1950 to generate reliable socio-economic statistics through scientific sample surveys across India.
- Statement II: P.C. Mahalanobis is best known for developing the Mahalanobis Distance, a multivariate statistical tool for measuring how far a data point deviates from a mean distribution.
- Statement III: The Mahalanobis Distance was the core statistical technique used to design the entire sampling framework of the National Sample Survey.
(a) All three statements are correct
(b) Statements I and II are correct
(c) Statements II and III are correct
(d) Only Statement III is correct
- Statement I: Correct. The NSS was launched in 1950, under P.C. Mahalanobis’s guidance, to carry out large-scale sample-based socio-economic surveys.
- Statement II: Correct. The Mahalanobis Distance, introduced in 1936, is a widely used multivariate technique for detecting outliers by measuring distance from the mean, adjusted for correlations between variables.
- Statement III: Incorrect. While Mahalanobis was instrumental in designing the sampling methodology for NSS, the Mahalanobis Distance itself was not the core technique used for sampling design. Sampling involved stratified and random sampling principles, not direct application of Mahalanobis Distance.
- Correct Answer: (b) Statements I and II are correct
P.C. Mahalanobis and His Legacy in Statistics
Prasanta Chandra Mahalanobis, a pioneering Indian statistician, is most renowned for introducing the concept of Mahalanobis Distance in 1936—a statistical measure still widely used in data analysis today.
What is the Mahalanobis Distance?
At its core, the Mahalanobis Distance is a way to measure how unusual or distant a data point is from the expected or average pattern in a dataset. Unlike simple measures that consider one variable at a time, this technique accounts for multiple factors simultaneously.
For example, imagine a study that examines households with similar income levels and compares the health of children in those homes. While all children may vary in terms of height, weight, haemoglobin levels, etc., the Mahalanobis Distance can combine all these variables to determine whether a particular child significantly deviates from the norm. It might identify, for instance, a case where a child is severely undernourished despite living in a relatively wealthy household—signaling an anomaly worth investigating.
The National Sample Survey
India’s National Sample Survey (NSS) is one of the most important instruments for collecting large-scale socio-economic data across the country. It is conducted by the National Sample Survey Office (NSSO), under the Ministry of Statistics and Programme Implementation (MoSPI).
- Established: 1950
- Founder and Visionary: Prof. P.C. Mahalanobis
- Objective: To generate timely, reliable, and consistent socio-economic data through well-designed sample surveys.
The NSS has been instrumental in shaping policy decisions in areas such as poverty, employment, education, health, and consumption by offering detailed insights into the socio-economic conditions of India’s population.
2. Countervailing Duty is imposed on goods that are subsidized by foreign governments.
3. Safeguard Duty is unique in that it does not require proof of any unfair trade practice.
(a) 2 and 3 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
1. Incorrect. Anti-Dumping Duty requires proof that dumping is causing or threatening material injury to the domestic industry. It is not enough that goods are dumped; there must be injury.
2. Correct. Countervailing Duty is specifically imposed on imported goods that have received unfair subsidies from the government of the exporting country.
3. Correct. Safeguard Duty does not require a finding of unfair trade practice like dumping or subsidies. It is a temporary measure to protect domestic industries from unforeseen import surges.
Correct Answer: (a) 2 and 3 only
(b) Specific tariff is based on a percentage of the import value, while Ad Valorem tariff is a fixed rate per unit.
(c) Specific tariff imposes a fixed charge per unit of imported good, whereas Ad Valorem tariff is calculated as a percentage of the good’s value.
(d) Specific tariff is imposed by developing countries only, while Ad Valorem tariff is used by developed countries.
- Option (a): Incorrect.
Tariffs are not categorized based on the type of good (agriculture vs. industrial) but by how they are calculated. - Option (b): Incorrect (reversed definitions).
It incorrectly defines both types: Ad Valorem is percentage-based; Specific is per-unit. - Option (c): Correct.
This accurately describes the distinction:
o Specific Tariff = Fixed amount per unit (e.g., ₹50 per ton).
o Ad Valorem Tariff = Percentage of the value (e.g., 10% of invoice price). - Option (d): Incorrect.
There is no such country-based distinction in the use of tariff types. - Correct Answer: (c) Specific tariff imposes a fixed charge per unit of imported good, whereas Ad Valorem tariff is calculated as a percentage of the good’s value.
2. Country B imposes a tariff on mobile phone imports sold at less than cost price by foreign firms.
3. Country C temporarily raises tariffs on textile imports after a sudden surge causes job losses in domestic units.
(a) 1 – Safeguard Duty; 2 – Anti-Dumping Duty; 3 – Countervailing Duty
(b) 1 – Countervailing Duty; 2 – Anti-Dumping Duty; 3 – Safeguard Duty
(c) 1 – Anti-Dumping Duty; 2 – Safeguard Duty; 3 – Countervailing Duty
(d) 1 – Revenue Tariff; 2 – Protective Tariff; 3 – Reciprocal Tariff
- Statement 1 – Countervailing Duty: This is a textbook case of CVD, where imports are subsidized and hurt the domestic industry.
- Statement 2 – Anti-Dumping Duty: The foreign firms are dumping mobile phones (selling below cost). This calls for ADD.
- Statement 3 – Safeguard Duty: A temporary surge in textile imports, causing job losses, is the classic ground for a Safeguard Duty, even in the absence of unfair trade practices.
- Option (d): Incorrect—mislabels all categories and introduces unrelated tariff types.
- Correct Answer: (b) 1 – Countervailing Duty; 2 – Anti-Dumping Duty; 3 – Safeguard Duty
I. Core Tariff Types (Based on Calculation/Form):
These categories define how the tariff amount is determined.
- Ad Valorem Tariff: A tariff calculated as a percentage of the value of the imported good.
Example: A 10% ad valorem tariff on a shirt valued at $20 would be $2. - Specific Tariff: A fixed fee levied on each physical unit of an imported good, regardless of its value.
Example: A $5 specific tariff per imported bicycle. - Compound Tariff: A combination of both an ad valorem and a specific tariff.
Example: A 5% ad valorem tariff plus $1 per kilogram on imported cheese.
II. Tariff Types (Based on Purpose/Direction):
These categories highlight the government's intention behind imposing the tariff or the direction of trade it affects.
- Import Tariff/Duty: The most common type, a tax on goods entering a country.
Purpose: To generate revenue, protect domestic industries, or respond to trade actions. - Export Tariff/Duty: A tax on goods leaving a country. These are less common and typically used by developing countries to generate revenue or control the export of raw materials.
Purpose: To raise revenue, ensure domestic supply, or influence global prices of specific raw materials. - Revenue Tariff: A tariff imposed primarily to generate government income rather than to significantly restrict trade.
Purpose: Fiscal revenue generation. - Protective Tariff: A tariff designed to shield domestic industries from foreign competition by making imported goods more expensive.
Purpose: To encourage domestic production and employment.
III. Trade Remedy Tariffs (Addressing Unfair Trade Practices or Surges):
These are specialized tariffs implemented in response to specific, often adverse, trade conditions or alleged unfair practices by other countries.
- Anti-Dumping Duty (ADD): A tariff imposed on imported goods that are being "dumped" in the domestic market. Dumping occurs when a foreign company sells its products in another country at a price lower than their normal value (either lower than their domestic price or their cost of production), which can harm domestic industries.
Trigger: Investigation finding of dumping and injury to domestic industry. - Countervailing Duty (CVD): A tariff imposed on imported goods that have received unfair subsidies from the exporting country's government. These subsidies can make the foreign goods artificially cheap, giving them an unfair advantage.
Trigger: Investigation finding of actionable subsidies and injury to domestic industry. - Safeguard Duty: A temporary tariff or quota imposed on imports when a sudden, unforeseen, and sharp increase in imports threatens to cause serious injury to a domestic industry. Unlike ADD or CVD, safeguards don't require a finding of unfair trade practices by the exporting country, only that the surge in imports is causing harm.
Trigger: Investigation finding of a surge in imports causing or threatening serious injury. - Retaliatory Tariff/Duty: A tariff imposed by a country on imported goods as a direct response to another country's perceived unfair trade practices, tariffs, or other trade barriers. It is a "tit-for-tat" measure aimed at pressuring the other country to change its policies or to compensate for perceived harm.
Trigger: Unfair trade practices, tariffs, or other restrictive measures by a trading partner. Often arises in the context of trade disputes or trade wars.
IV. Broader Concepts & Non-Tariff Measures:
These terms provide context to tariffs and include other ways trade can be influenced or restricted.
- Trade Barrier: Any government policy or regulation that restricts international trade. Tariffs are a type of trade barrier.
- Non-Tariff Barriers (NTBs): Trade barriers that are not tariffs. They include a wide range of measures:
- Quotas: Direct limits on the quantity of goods that can be imported or exported.
- Import Licenses: Government permits required for importing certain goods.
- Voluntary Export Restraints (VERs): Agreements where an exporting country voluntarily limits its exports to another country, often to avoid the imposition of tariffs or quotas by the importing country.
- Technical Barriers to Trade (TBTs): Regulations, standards, testing, and certification procedures that can act as barriers to trade if they are discriminatory or unnecessarily complex.
- Sanitary and Phytosanitary (SPS) Measures: Regulations to protect human, animal, or plant life or health, which, if misused, can become trade barriers.
- Protectionism: The economic policy of restricting imports from other countries through various trade barriers, including tariffs and NTBs, to protect domestic industries.
- Free Trade: The unrestricted flow of goods and services between countries without the imposition of tariffs or other trade barriers.
- Trade War: An economic conflict between two or more countries characterized by the imposition of escalating tariffs and other trade barriers against each other.
- Reciprocal Tariff: A tariff imposed by one country that matches the tariff imposed by another country on similar goods, often as a means of achieving balanced trade access.
2. The percentage decline in calorie intake of the top 5 per cent was higher in urban areas than in rural areas.
3. The fat intake gap between rural and urban areas widened in 2023–24 compared to the previous year.
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
- Statement 1 is correct. The bottom 5 per cent experienced a rise in calorie intake: 5 per cent in rural areas and 4.5 per cent in urban areas.
- Statement 2 is correct. The top 5 per cent in urban areas saw an 11.1 per cent decline, compared to 5.6 per cent in rural areas.
- Statement 3 is incorrect. The fat intake gap narrowed from 10.8 grams to 9.4 grams between 2022–23 and 2023–24.
- Correct Answer: (a) 1 and 2 only
Household Consumption Expenditure Survey (HCES) 2023–24
Calorie Gap Between Richest and Poorest Narrows Across Urban and Rural India
The latest Household Consumption Expenditure Survey (HCES) for 2023–24, released by the Ministry of Statistics and Programme Implementation (MoSPI), reveals a significant shift in the dietary consumption patterns of India's population. The difference in daily per capita calorie intake between the top 5% and bottom 5% income groups has reduced across both urban and rural areas.
Urban India: A Decline at the Top, Rise at the Bottom
- The wealthiest 5% in urban areas consumed 3,092 kilocalories (Kcal) per person per day in 2023–24.
- This was 82.3% more than the 1,696 Kcal consumed by the bottom 5%.
- The calorie gap in 2022–23 was 114.3%, indicating convergence.
- Reduction due to an 11.1% drop among the top 5% and a 4.5% rise among the bottom 5%.
Rural India: Similar Trends Observed
- The top 5% in rural areas consumed 2,941 Kcal/day in 2023–24, compared to 1,688 Kcal for the bottom 5%.
- This 74.2% gap was narrower than 93.9% in 2022–23.
- Drop driven by a 5.6% fall in top-tier consumption and a 5% increase at the bottom.
Changes in Nutritional Composition
- Fat Consumption:
Urban India: Declined to 69.8g/day (from 70.5g)
Rural India: Increased to 60.4g/day (from 59.7g) - Protein Intake: Remained largely stable in both urban and rural areas.
Key Insight
The narrowing of the calorie intake gap is a result of rising consumption among the poorest households and a moderation in intake among the wealthiest, reflecting changing food habits and possibly shifts in awareness, lifestyle, or economic constraints. While inequality in calorie consumption persists, the latest figures suggest a trend towards greater dietary convergence across socio-economic segments.