Q1. With reference to India’s evolving fiscal architecture, consider the following statements:
1. The Fiscal Health Index (FHI) aims to enhance fiscal federalism by benchmarking state-level performance on standardized parameters.
2. States ranking lower in the FHI are automatically subjected to additional borrowing restrictions by the central government.
3. The relevance of FHI is expected to increase as India transitions to a debt-to-GDP anchor post-2025–26.
How many of the above statements are correct?
Q2. With reference to the fiscal role of Indian states, consider the following statements:
1. States in India account for over two-thirds of total public expenditure.
2. States contribute to nearly one-third of the country’s total revenue.
3. States’ fiscal performance has no bearing on India’s standing in global debt indices.
How many of the above statements are correct?
Q3. Which of the following statements best explain why transparent fiscal indices such as the Fiscal Health Index (FHI) are crucial in India’s economic context?
1. They attract global capital inflows by meeting global transparency norms.
2. They offer uniform guidelines for states to adopt GST reforms.
3. They promote competitive federalism in fiscal management.
4. They reduce fiscal deficit automatically at the central level.
Select the correct answer using the code given below:
Fiscal Health Index
The Fiscal Health Index (FHI), launched by NITI Aayog, serves as a comprehensive tool to evaluate and benchmark the fiscal performance of Indian states. By focusing on eighteen economically significant states—those contributing heavily to India's GDP, public spending, revenue collection, and population—the initiative offers a structured understanding of fiscal sustainability at the subnational level.
Purpose and Scope of the Index
States play a vital role in India’s public finance architecture, accounting for nearly two-thirds of total government expenditure and about one-third of revenue generation. Given this, their fiscal discipline directly impacts the country’s macroeconomic stability.
The FHI facilitates cross-state comparisons through a unified composite index, offering policymakers and stakeholders a transparent mechanism to track performance and adopt best practices. Odisha ranks highest in the 2025 edition of the Index, followed by Chhattisgarh, Goa, Jharkhand, and Gujarat.
Framework of Evaluation
The 2025 FHI is built on a multi-dimensional framework comprising five core categories:
- Revenue Generation and Mobilization
- Expenditure Management and Prioritization
- Debt Management
- Fiscal Deficit Control
- Overall Fiscal Sustainability
These categories encompass both short-term fiscal management and long-term sustainability concerns, enabling a holistic fiscal diagnosis.
Key Observations and Concerns
The Index highlights states with significant fiscal vulnerabilities. West Bengal and Punjab, in particular, show elevated debt burdens and rising debt-to-GSDP ratios. These growing liabilities pose challenges to their fiscal flexibility and sustainability.
With the central government aiming to reduce the combined government debt to 50% of GDP by FY 2026–27 (from the current 57.1%), tools like the FHI can incentivize state governments to manage their debt more prudently.
Relevance in a Changing Fiscal Landscape
India is set to adopt a debt-to-GDP fiscal anchor post-2025–26. In this context, metrics like the Fiscal Health Index will become even more crucial. Additionally, India’s recent inclusion in the JPMorgan Emerging Market Debt Index is expected to attract approximately $8 billion in capital inflows.
The availability of standardized and transparent fiscal metrics, such as those provided by the FHI, will enhance investor confidence and align India’s fiscal framework with international benchmarks.
Overall, the FHI is emerging as a key instrument in promoting fiscal responsibility, improving inter-state comparisons, and supporting India’s transition to globally accepted fiscal norms.
Q4. With reference to the increasing deployment of satellites in Low Earth Orbit (LEO), consider the following statements:
1. The orbital environment in LEO increases the risk of Kessler Syndrome due to higher satellite density and collision potential.
2. Satellites in LEO offer lower latency than those in geostationary orbit, but have shorter service life due to more intense radiation exposure.
3. The International Space Station (ISS), despite being in LEO, does not experience atmospheric drag due to its stabilized orbital altitude.
How many of the above statements are correct?
Q5. With reference to recent developments in human spaceflight and orbital research infrastructure, consider the following statements:
1. The International Space Station (ISS), located in Low Earth Orbit, is currently operating under an extension and is expected to be decommissioned by 2030.
2. India plans to establish an independent space station by 2035 to support long-duration missions and research in microgravity conditions.
3. Space stations serve primarily as platforms for atmospheric and Earth observation, and are not relevant for microgravity-based scientific research.
How many of the above statements are correct?
Q6. With reference to the ‘State of the Climate in Asia 2024’ report released by the World Meteorological Organisation (WMO), consider the following statements:
1. Asia’s landmass is warming approximately twice as fast as the global average.
2. In 2024, marine heat waves of strong to extreme intensity affected a majority of Asia’s ocean areas — the widest coverage since 1993.
3. The average sea surface temperature around Asia is increasing at a rate lower than the global average due to the moderating effect of surrounding oceans.
How many of the above statements are correct?
Q7. In the context of global temperature analysis, consider the following datasets:
1. ERA5
2. GISTEMP v4
3. NOAAGlobalTemp v6
4. HadGEM3-GC31-HM
How many of the above are commonly used to track observed global temperature variations?
Major Global Temperature Datasets and Their Role in Climate Research
Several prominent datasets are used worldwide to monitor and analyze changes in Earth's surface temperature. Compiled by different institutions with distinct methodologies, these datasets provide critical insights into long-term climate trends and are essential tools in the study of global warming and climate variability. Below is an overview of key datasets that contribute significantly to climate science:
Berkeley Earth
Berkeley Earth is an independent non-profit organization dedicated to analyzing land-based temperature records. Known for its emphasis on open access and methodological transparency, the group provides freely available climate data and results to the scientific community and the public.
ERA5
ERA5, developed by the European Centre for Medium-Range Weather Forecasts (ECMWF), is a comprehensive climate reanalysis product. It merges data from observations with climate models to reconstruct past atmospheric conditions with high accuracy and spatial resolution.
GISTEMP v4
GISTEMP v4 is maintained by NASA's Goddard Institute for Space Studies (GISS). This dataset offers a detailed global surface temperature record and is frequently used for analyzing annual and decadal temperature trends.
HadCRUT.5.0.2.0
HadCRUT.5.0.2.0 is produced through a collaboration between the UK Met Office’s Hadley Centre and the Climatic Research Unit at the University of East Anglia. It compiles global temperature records by combining land and sea surface observations.
JRA-3Q
JRA-3Q is a reanalysis dataset from the Japan Meteorological Agency (JMA), which reconstructs global atmospheric conditions using past observations and model-based simulations to ensure consistency and accuracy in long-term climate data.
NOAAGlobalTemp v6
NOAAGlobalTemp v6 is published by the National Centers for Environmental Information (NCEI), part of the U.S. National Oceanic and Atmospheric Administration (NOAA). It compiles surface temperature measurements from around the world to assess trends in global warming.
These datasets are indispensable for understanding how Earth's climate is changing over time. They support scientific research, guide policy development, and inform global efforts to adapt to and mitigate the effects of climate change.
Q8. In the context of India’s fisheries sector, consider the following statements:
1. India ranks second globally in total fish production and in aquaculture output.
2. Inland fisheries contribute more than three-fourths of India’s total fish production.
3. Gujarat ranks second among Indian states in total fish production, ahead of West Bengal.
How many of the above statements are correct?
Q9. With reference to the CROPIC initiative of the Ministry of Agriculture and Farmers’ Welfare, consider the following statements:
1. The CROPIC platform integrates geotagged crop imagery and AI algorithms to generate real-time advisories for dynamic crop loss assessment.
2. It combines a mobile-based photo collection interface with a cloud computing framework and a web dashboard to support policy decisions.
3. Unlike traditional crop-cutting experiments, CROPIC enables predictive analytics before harvest by leveraging image-based time-series data.
How many of the above statements are correct?
Q10. The joint military exercise "Nomadic Elephant" is conducted between India and which of the following countries?