HPAS 2018 Economy Topic-Wise Solutions
Which one is incorrect regarding sustainable development?
Correct Answer is (B) Economic development refers to the flow of goods and services in the economy for a long period of time only:
This option is blatantly incorrect because it describes mere Economic Growth (a purely quantitative increase in production), not Sustainable Development. True sustainable development must include qualitative improvements in human life, social equity, and strict environmental preservation, none of which are covered by simply increasing the “flow of goods and services.”
Option (A) is not just a random sentence; it is the most famous, universally accepted, and highly tested definition of Sustainable Development in the world.
- It was coined in 1987 by the United Nations World Commission on Environment and Development (WCED).
- This commission was headed by Gro Harlem Brundtland (former PM of Norway), hence it is famously known as the Brundtland Report.
- The actual title of the report was “Our Common Future”. State PSCs frequently ask for the name of this report directly!
To never get confused by these options again, visualize the evolution of economic thought:
| Concept | Focus | Example |
|---|---|---|
| 1. Economic Growth | Quantitative. Simply producing more stuff. (This is what Option B described). | India’s GDP increasing from $2 Trillion to $3 Trillion. |
| 2. Economic Development | Quantitative + Qualitative. GDP increases, but poverty, illiteracy, and disease also decrease. | Building more schools and hospitals alongside factories. |
| 3. Sustainable Development | Quantitative + Qualitative + Environmental/Future Focus. Growing the economy today without destroying the planet for tomorrow. | Shifting away from coal to solar power so future generations have clean air and energy. (Options C and D describe this perfectly). |
In UPSC and State PSC exams, extreme words like “only”, “always”, or “completely” are massive red flags. In Option (B), stating that development refers to the flow of goods “only” is a classic examiner trick to make a partially true statement completely false by excluding social and environmental factors.
UPSC CSE / State PSC (Similar PYQ): The concept of “Sustainable Development” was first officially defined in which of the following reports?
(A) The Club of Rome Report
(B) The Brundtland Report (Our Common Future)
(C) Agenda 21 (Earth Summit)
(D) The Kyoto Protocol
Exam Connection: This validates why understanding Option (A) in your question is so critical. The Brundtland definition is the cornerstone of modern environmental economics.
Sustainable development goals and targets are to be achieved by:
Correct Answer is (C) 2030:
The 17 Sustainable Development Goals (SDGs) were adopted by all United Nations Member States in 2015 as part of the 2030 Agenda for Sustainable Development. This agenda provides a shared blueprint for peace and prosperity for people and the planet, now and into the future, with a clear deadline of December 31, 2030.
Stop memorizing them by number. Use this narrative flow to recall the sequence in seconds during the exam.
“Poor Hungry Hippos Eat Green Watermelons. Every worker in unequal cities consume cold orange lemonade, perfectly poured.”
| # | Goal | Mnemonic |
|---|---|---|
| 1 | No Poverty | Poor |
| 2 | Zero Hunger | Hungry |
| 3 | Good Health & Well-being | Hippos |
| 4 | Quality Education | Eat |
| 5 | Gender Equality | Green |
| 6 | Clean Water & Sanitation | Watermelons |
| 7 | Affordable & Clean Energy | Every |
| 8 | Decent Work & Economic Growth | Worker |
| 9 | Industry, Innovation & Infrastructure | In |
| 10 | Reduced Inequalities | Unequal |
| 11 | Sustainable Cities & Communities | Cities |
| 12 | Responsible Consumption & Production | Consume |
| 13 | Climate Action | Cold |
| 14 | Life Below Water | Orange |
| 15 | Life on Land | Lemonade |
| 16 | Peace, Justice & Strong Institutions | Perfectly |
| 17 | Partnerships for the Goals | Poured |
Group them by “themes” to solve elimination-based questions in Prelims:
- 1–6 (Basic Needs): Survival, health, education, and sanitation.
- 7–12 (Economic/Social): Energy, jobs, infrastructure, and urban living.
- 13–15 (Planetary): Climate change, oceans, and land ecosystems.
- 16–17 (Enablers): The institutional “glue”—governance and global partnerships required to make the first 15 possible.
- MDGs (Millennium Development Goals): The predecessor to SDGs. There were only 8 goals, and they expired in 2015.
- SDGs: 17 goals, wider in scope, expired in 2030.
- Never confuse them! If a question asks about the 8 goals or the 2015 deadline, they are talking about the old MDGs.
UPSC CSE / State PSC (Similar PYQ): Which of the following is NOT one of the Sustainable Development Goals (SDGs)?
(A) Zero Hunger
(B) Universal Primary Education (This was an MDG)
(C) Climate Action
(D) Life Below Water
Exam Connection: This reinforces that knowing the difference between MDG and SDG is a high-yield area. “Universal Primary Education” was MDG Goal 2, whereas SDG Goal 4 is “Quality Education” (which is much broader than just primary school).
Which one of the following is not a part of the strategy of a direct attack on poverty?
Correct Answer is (B) Family Planning Programme:
The “Direct Attack on Poverty” is a specific economic strategy initiated in India (most notably during the 5th and 6th Five-Year Plans) that focuses on providing tangible assets, income, and employment directly to the poor to help them escape the poverty trap. Family Planning, while crucial for national development, is a social welfare program, not a direct poverty-alleviation mechanism.
Before this shift, the government believed in the “Trickle-Down” theory—that if we just grow the economy, wealth will naturally trickle down to the poor. When that failed, the government launched the “Direct Attack” approach:
- The Goal: Instead of waiting for growth to reach the bottom, go to the bottom and give them the tools to earn money today.
- The Method: It involves self-employment programs (giving cattle/looms) and wage-employment programs (giving work on government projects).
| Option | Why it IS a “Direct Attack” |
|---|---|
| (A) IRDP | Integrated Rural Development Programme: Provided subsidized loans and assets (like cows or sewing machines) to rural poor families to start businesses. |
| (C) NREP | National Rural Employment Programme: Guaranteed manual labor work for the poor in rural areas, ensuring immediate cash income. |
| (D) Jawahar Rojgar Yojna | This was a massive consolidation of rural employment schemes, designed to generate 100 days of guaranteed wage employment. |
Think of it in terms of mechanism:
- Direct Attack: I give a poor person a cow; they sell the milk; they are less poor. (This is an Income-Generating Mechanism).
- Family Planning: I provide health advice; it improves the long-term health and population stability of the country. (This is a Demographic/Health Mechanism).
Family Planning addresses the root cause of poverty over generations by reducing the dependency burden, but it provides no direct income or assets to a family struggling with hunger today. Thus, it is never classified under “Direct Poverty Alleviation Programs.”
UPSC CSE / State PSC (Similar PYQ): Consider the following poverty alleviation programmes of India:
1. Integrated Rural Development Programme (IRDP)
2. Swarnjayanti Gram Swarozgar Yojana (SGSY)
3. Jawahar Rozgar Yojana (JRY)
Which of the above are classified as ‘Wage Employment’ programmes?
Exam Connection: This is a crucial distinction in the “Direct Attack” strategy. Programs like IRDP and SGSY were Self-Employment programs (giving assets), whereas JRY and NREGA are Wage-Employment programs (paying for physical work). Both are “Direct Attacks,” but their methods are different!
Over the years, the government has been following approach/es to reduce poverty in India:
I. Specific Poverty Alleviation Programmes
II. Growth-oriented development
III. Meeting the minimum needs of the poor.
Select the correct answer using the codes given below:
Correct Answer is (D) I, II and III all:
The Government of India has never relied on a single “magic bullet” to solve poverty. Instead, it has utilized a multi-pronged strategy that combines long-term economic growth with targeted, short-term support for the most vulnerable. This three-part approach is the foundation of Indian poverty policy.
To master this topic for both Prelims and Mains, you need to understand the logic behind why the government uses all three simultaneously.
| Approach | Logic & Strategy |
|---|---|
| I. Poverty Alleviation Programmes | Targeted/Direct Attack. Since growth takes time to reach everyone, the government intervenes directly to provide immediate assets (IRDP) or wages (MGNREGA) to those who cannot wait for the “trickle-down.” |
| II. Growth-Oriented Development | The “Engine.” The belief that GDP growth leads to more jobs, more tax revenue for schools/hospitals, and more opportunities. This is the macro-level engine that eventually lifts the whole country. |
| III. Meeting Minimum Needs | Social Safety Net. Even if a person has a low-paying job, they might still die of preventable disease or malnutrition. This approach (e.g., PDS, Mid-day Meal, Janani Suraksha) ensures that even the poorest have access to food, health, and clean water. |
- If you only do Growth (II), the rich get richer while the poorest are left behind (inequality grows).
- If you only do Poverty Alleviation (I), it is unsustainable because it costs the government too much money without growing the economy.
- If you only do Minimum Needs (III), people survive, but they stay trapped in poverty forever without the opportunity to improve their station.
- Conclusion: Using all three (D) creates a “Virtuous Cycle”—growth provides the money for social schemes, and social schemes build the human capital (healthy/educated workers) necessary for further growth.
UPSC CSE / State PSC (Similar PYQ): Which of the following is/are the main objective(s) of the ‘National Food Security Act (NFSA), 2013’?
1. To ensure food and nutritional security to the vulnerable sections of society.
2. To provide subsidized food grains under the Targeted Public Distribution System.
3. To ensure that only the poorest of the poor are included in the coverage.
Select the correct answer using the code below:
Exam Connection: This relates to Pillar III (Minimum Needs). The NFSA 2013 is a classic example of “Minimum Needs” policy. Statement 3 is wrong because the NFSA aims to cover a significant majority of the population (up to 75% in rural areas), not *just* the “poorest of the poor.”
Poverty gap reflects:
Correct Answer is (B) The difference between the poverty line and actual income of all those below that line:
The Poverty Gap is a crucial metric because it tells us how deep poverty actually is. While the Poverty Line tells us who is poor, the Poverty Gap tells us how poor they are. If a country has a high poverty rate but a low poverty gap, it means most poor people are just slightly below the poverty line (and thus easier to lift out). If the gap is wide, it means people are extremely destitute, requiring intensive, long-term intervention.
If you are preparing for HPAS or HCS, you must know these specific technical terms to differentiate between various types of deprivation. Do not confuse them.
| Term | Core Explanation |
|---|---|
| 1. Absolute Poverty | A condition where household income is below a necessary level to maintain basic living standards (food, shelter, clothing). It is measured by a Poverty Line. |
| 2. Relative Poverty | Measures inequality. It defines poverty based on the average income of a society. If you earn significantly less than the society’s average, you are “relatively poor,” even if you have basic survival needs met. |
| 3. Poverty Headcount Ratio | The percentage of the population that lives below the poverty line. (e.g., “30% of India is poor”). |
| 4. Poverty Gap Ratio | Measures the depth of poverty. It calculates the average shortfall of the total population from the poverty line. |
| 5. Multidimensional Poverty (MPI) | Poverty is not just lack of money. It is a cluster of deprivations: no clean water, no electricity, child mortality, and lack of schooling. UNDP uses this. |
| 6. Feminization of Poverty | The phenomenon where women are more likely to live in poverty than men due to lack of access to education, lower wages, and property rights. |
| 7. Poverty Trap | A self-reinforcing cycle where people remain poor because they lack the capital to invest in education, health, or productive assets to break the cycle. |
| 8. Chronic vs. Transient Poverty | Chronic: Long-term, persistent poverty. Transient: People who move in and out of poverty due to seasonal factors (like farming) or shocks (like a health crisis). |
- Poverty Gap: Treats all poor people equally regardless of how poor they are.
- Squared Poverty Gap (Poverty Severity Index): This is the advanced metric. It gives more weight to the poorest of the poor. If a person is extremely far below the line, this index counts them as a much bigger problem than someone just below the line. UPSC Mains examiners love this term!
UPSC CSE / State PSC (Similar PYQ): Consider the following statements about the ‘Multidimensional Poverty Index (MPI)’:
1. It is published by the World Bank.
2. It includes indicators like nutrition, school attendance, and cooking fuel.
Which of the statements given above is/are correct?
Exam Connection: The MPI is published by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI), not the World Bank. This is a favorite factual trap for examiners.
NITI Aayog action agenda for enhancing digital connectivity is based on:
I. Developing software for services that can be provided digitally
II. Enhancing digital infra-structure
III. Empowering citizens digitally
Select the correct answer using the codes given below:
Correct Answer is (D) I, II and III all:
The NITI Aayog “Strategy for New India @ 75” (and the subsequent Action Agenda) identified digital connectivity not merely as an IT project, but as the foundational layer for all future governance. The Action Agenda focuses on these three pillars to bridge the digital divide and transform public service delivery.
To answer this correctly, you must understand how NITI Aayog views the “Digital Ecosystem.” It is not just about having internet cables; it is about the software, the hardware, and the citizens themselves.
| Pillar | Explanation & NITI Aayog’s Vision |
|---|---|
| I. Software for Services | Moving from “physical files” to “digital interfaces.” This involves building scalable platforms (like UPI, CoWIN, or e-NAM) that allow citizens to access government services without visiting a government office. |
| II. Digital Infrastructure | The hardware “backbone.” This includes BharatNet (optical fiber to gram panchayats), submarine cables, and robust data centers. Without this infrastructure, the software (Pillar I) cannot run. |
| III. Digital Empowerment | The “Human” factor. Providing the software and hardware is useless if the citizen is digitally illiterate. NITI Aayog emphasizes training, vernacular interfaces, and access to digital financial services. |
- NITI Aayog uses these terms specifically. If an exam asks about “Action Agenda,” they are referring to the 3-year short-term roadmap. If they ask about “Strategy for New India,” they are referring to the comprehensive long-term (2022-23) vision.
- For Digital Connectivity, both documents emphasize the “JAM Trinity” (Jan Dhan, Aadhaar, Mobile) as the precursor to these three pillars.
UPSC CSE / State PSC (Similar PYQ): “Digital India” campaign of the Government of India has been formulated to promote which of the following?
1. Formation of nation-wide knowledge network
2. Digital delivery of services to the citizens
3. Universal access to mobile connectivity
Select the correct answer using the codes given below:
Exam Connection: This reinforces the exact logic behind NITI Aayog’s digital connectivity framework. Whether it is Digital India or NITI’s specific Action Agenda, the strategy is always a holistic combination of Infrastructure (Networks), Services (Delivery), and Access (Connectivity).
Which of the following is not an indicator of economically underdeveloped countries?
Correct Answer is (C) Low proportion of labour force in the primary sector:
In economics, this is a classic indicator of a developed economy, not an underdeveloped one. In underdeveloped (or developing) economies, a very high proportion of the labour force is typically engaged in the primary sector (agriculture, fishing, mining) because the industrial and service sectors are not yet advanced enough to absorb the workforce. As a country develops, labour shifts from the primary sector to the secondary (manufacturing) and tertiary (services) sectors.
International institutions like the World Bank and IMF use specific metrics to classify economies. They rarely use the term “underdeveloped” anymore, preferring “Developing” or “Low-to-Middle Income.”
| Institution | Approach / Metric |
|---|---|
| World Bank | Income-Based: Classifies countries by GNI per capita using the Atlas Method (Low, Lower-middle, Upper-middle, and High-income groups). |
| IMF | Market & Stability-Based: Focuses on financial integration, stability, and market maturity rather than social development. They use terms like “Advanced Economies” vs. “Emerging Market and Developing Economies.” |
| United Nations | LDC Criteria: Designates “Least Developed Countries” (LDCs) based on three strict criteria: GNI per capita, Human Assets Index (health/education), and Economic Vulnerability. |
Examiners use these key features as “distractors” or “correct options” in matching questions. Memorize these markers:
- Low Per Capita Income: The most universal benchmark of an underdeveloped economy.
- Dominance of Primary Sector: High reliance on subsistence agriculture and primary commodity exports.
- Capital Deficiency: Low rates of savings and investment (low capital formation).
- Demographic Pressure: High birth rates, high dependency ratios, and rapid population growth.
- Human Resource Weakness: Low literacy, high infant mortality, and poor healthcare access.
- Technological Backwardness: Use of obsolete production methods, leading to low labour productivity.
- Inequitable Distribution: High Gini coefficient (wealth concentrated in a small elite).
This is the theoretical heart of underdevelopment. It states: Low Income → Low Savings → Low Investment → Low Productivity → Low Income. This cycle is why underdeveloped countries struggle to break out of their status without significant policy interventions.
UPSC CSE / State PSC (Similar PYQ): Which of the following best describes the transition from an underdeveloped to a developed economy?
(A) Shift from services to manufacturing
(B) Shift from agriculture to manufacturing and services
(C) Increase in population growth rate
(D) Decrease in foreign trade volume
Exam Connection: This is the exact inverse of the logic in your question. If a country is underdeveloped, it is stuck in the agriculture phase (Primary Sector). Development is defined by the migration of labour into the secondary and tertiary sectors.
What is/are the objectives of the Competition Commission of India (CCI)?
I. To ensure freedom of trade carried on by other participants in markets in India.
II. To protect the interests of consumers.
III. To promote and sustain competition in markets.
IV. To prevent practices having an adverse effect on competition
Select the correct answer using the codes given below:
Correct Answer is (D) I, II, III and IV all:
The Competition Commission of India (CCI) is the chief national competition regulator in India. It is a statutory body established under the Competition Act, 2002 and became fully functional in 2009. Its mandate is to ensure that the free market in India remains truly competitive and is not distorted by powerful players.
If you see a question about the CCI, know that it exists specifically to prevent “Market Failures.” Here is what that means in practice:
| Objective | How CCI Executes It |
|---|---|
| 1. Promote/Sustain Competition | Ensures that new companies can easily enter the market and compete with established incumbents, preventing “monopoly capture.” |
| 2. Protect Consumer Interests | Competition keeps prices low and quality high. CCI stops companies from artificially inflating prices or forming “cartels.” |
| 3. Prevent Adverse Effects | Monitors M&A (Mergers and Acquisitions). If two giants merge and create a monopoly that kills competition, the CCI can block that merger. |
| 4. Ensure Freedom of Trade | Ensures no large player uses “predatory pricing” (selling below cost to bankrupt rivals) or “abuse of dominance” to kick others out of the market. |
Before 2002, India had the MRTP Act (Monopolies and Restrictive Trade Practices Act, 1969). The MRTP Act was designed to control monopolies, whereas the modern Competition Act is designed to promote competition. This is a subtle but critical shift in economic philosophy.
- Investigation: It can launch an inquiry into anti-competitive agreements or abuse of dominant position either on its own (suo moto) or based on complaints.
- Advocacy: It acts as an advisor to the Central Government on competition policy and conducts workshops to create awareness among market participants.
- Mandatory M&A Approval: Companies exceeding a certain asset/turnover threshold must notify the CCI before merging. The CCI then evaluates if the merger will harm competition.
- Imposing Penalties: It has the power to impose hefty fines (up to 10% of global turnover) on companies that violate competition norms.
UPSC CSE / State PSC (Similar PYQ): Consider the following statements regarding the Competition Commission of India (CCI):
1. It is a quasi-judicial body.
2. Its members are appointed by the President of India.
3. It has the power to regulate mergers and acquisitions.
Which of the statements given above are correct?
Exam Connection: This tests the *statutory* nature of the CCI. It is quasi-judicial (because it makes legal rulings) and is appointed by the Central Government (which technically means the executive/President). Knowing these functional details is as important as knowing the objectives.
Which year is known as the year of demographic divide?
Correct Answer is (C) 1921:
In the demographic history of India, the year 1921 is universally referred to as the “Year of the Great Demographic Divide.” This specific year marks the absolute turning point in India’s population growth trajectory.
To understand why this year is so heavily tested, you need to look at what was happening to India’s population before and after this exact date.
- Before 1921 (Fluctuating/Stagnant): India’s population was highly erratic. It would grow slightly in one decade and then drop in the next. Why? Because the Birth Rate was very high, but the Death Rate was equally high. Famines, cholera, plague, and the devastating 1918 Spanish Flu pandemic wiped out millions.
- The Decade of 1911–1921: This is the only decade in India’s recorded census history where the population actually shrank (a negative growth rate of -0.31%).
- After 1921 (Continuous Growth): After 1921, the population never shrank again. Better transport (railways) solved localized famines, and basic public health improvements caused the Death Rate to drop. However, the Birth Rate remained extremely high. The result? A permanent, continuous upward explosion in population that continues to this day.
| Demographic Phase | Time Period | Defining Characteristic |
|---|---|---|
| Phase I | 1891 – 1921 | Stagnant Population: High birth rate + High death rate. Population remained almost flat. |
| Phase II | 1921 – 1951 | Steady Growth: Death rates begin to slowly fall. Birth rates stay high. |
| Phase III | 1951 – 1981 | Population Explosion: Post-independence medical advancements crash the death rate entirely, leading to massive, rapid population growth. |
| Phase IV | 1981 – Present | Slowing Growth Rate: Total population is still rising massively, but the rate of growth has finally started to trend downwards. |
- If they ask for the Year of the Demographic Divide ➔ Answer is 1921.
- If they ask for the Decade of Negative Population Growth ➔ Answer is 1911-1921.
- If they ask for the Period of Population Explosion ➔ Answer is 1951-1981.
UPSC CSE / State PSC (Similar PYQ): Which decade in the demographic history of India is known for having a negative growth rate of population?
(A) 1901 – 1911
(B) 1911 – 1921
(C) 1921 – 1931
(D) 1931 – 1941
Exam Connection: This is the other side of the exact same coin. The divide happened in 1921 because the decade immediately preceding it was an era of mass death and negative growth.
The total fertility rate is:
Correct Answer is (C) The number of children a women will likely bear in her lifetime:
The Total Fertility Rate (TFR) is a synthetic measure. It calculates the average number of children a woman would give birth to if she lived through her entire reproductive lifespan (ages 15 to 49) and experienced the exact current age-specific fertility rates of her population. It is the most direct metric used by economists and demographers to gauge if a country’s population is growing or shrinking.
A TFR of 2.1 is known as Replacement Level Fertility. This means a woman is having enough children to replace herself and her partner (2), plus a tiny 0.1 buffer to account for children who tragically do not survive to adulthood. If a country’s TFR drops below 2.1, its population will eventually start to shrink.
State PSCs love to test the exact denominators of these rates. Note carefully what the rate is measured against (Total Population vs. Live Births vs. 1 Lakh Live Births).
| Rate / Ratio | Exact Technical Definition | Denominator (Key Trick!) |
|---|---|---|
| Infant Mortality Rate (IMR) | Number of infants dying before reaching exactly 1 year of age. | Per 1,000 Live Births |
| Neonatal Mortality Rate (NMR) | Number of infants dying within the first 28 days of life. (The most vulnerable period). | Per 1,000 Live Births |
| Under-5 Mortality Rate (U5MR) | Number of children dying before their 5th birthday. (Also called Child Mortality Rate). | Per 1,000 Live Births |
| Maternal Mortality Ratio (MMR) | Number of maternal deaths occurring during pregnancy or within 42 days of termination of pregnancy, from any cause related to the pregnancy. | Per 100,000 (1 Lakh) Live Births (Examiners ALWAYS try to trick you by saying per 1,000!) |
| Crude Birth Rate (CBR) | The total number of live births occurring in a given year. (This relates to Option B in the question). | Per 1,000 Total Population |
| Age-Specific Fertility Rate (ASFR) | The number of births occurring to women of a specific age group (e.g., 20-24 years). (This relates to Option D in the question). | Per 1,000 Women in that specific age group |
Notice that IMR, NMR, and MMR are all calculated against “Live Births”, not “Total Births.” Stillbirths (babies born dead) are strictly excluded from the denominator in these calculations. If an option says “per 1,000 total births,” it is instantly incorrect.
UPSC CSE / State PSC (Similar PYQ): Which of the following is the correct denominator used to calculate the Maternal Mortality Ratio (MMR) in India?
(A) Per 1,000 women of reproductive age
(B) Per 1,000 live births
(C) Per 10,000 live births
(D) Per 1,00,000 live births
Exam Connection: This is a classic factual trap. Because maternal deaths are thankfully much rarer than infant deaths, demographers must multiply by 1 Lakh (100,000) to get a readable whole number, rather than a tiny decimal.
The national food security mission (NFSM) aims to enhance the production of:
I. Pulses
II. Vegetables
III. Rice
IV. Wheat
V. Fruits
VI. Coarse cereals
Select the correct answer using the codes given below:
Correct Answer is (B) I, III, IV and VI only:
The National Food Security Mission (NFSM) is a massive Centrally Sponsored Scheme launched in October 2007 (during the 11th Five-Year Plan). Its primary mandate is to increase the production and productivity of India’s staple food crops to ensure national food security.
To get this question right, you must understand the difference between “Staple/Food Security” crops and “Horticulture” crops.
- The Original Trio (2007): The mission was originally launched with just three target crops: Rice (III), Wheat (IV), and Pulses (I).
- Later Additions: As the focus shifted towards nutritional security and climate resilience, Coarse Cereals (VI) (like Jowar, Bajra, Ragi) and Nutri-Cereals (Millets) were added. Commercial crops like Cotton, Jute, and Sugarcane were also integrated later under a sub-scheme.
Why are Options II (Vegetables) and V (Fruits) incorrect?
- Fruits and vegetables are not considered “staple cereals” for basic calorie-driven food security.
- They fall under a completely different flagship umbrella scheme: the Mission for Integrated Development of Horticulture (MIDH).
- Whenever you see an option mixing staples (wheat/rice) with horticulture (fruits/flowers/spices), you can almost always confidently eliminate the horticulture options if the question is about “Food Security.”
| Scheme Umbrella | Targeted Crops |
|---|---|
| NFSM (Food Security) | Rice, Wheat, Pulses, Coarse Cereals, Nutri-Cereals (Millets). |
| MIDH (Horticulture) | Fruits, Vegetables, Root & Tuber crops, Mushrooms, Spices, Flowers, Aromatic plants, Coconut, Cashew, Cocoa. |
UPSC CSE / State PSC (Similar PYQ): The National Food Security Mission (NFSM) aims to increase the production of which of the following crops?
1. Rice
2. Wheat
3. Pulses
4. Oilseeds
Select the correct answer using the code given below:
Exam Connection: A classic elimination trap! Oilseeds are heavily promoted by the government, but they fall under a separate scheme called the National Mission on Oilseeds and Oil Palm (NMOOP), which was later merged into NFSM but initially kept distinct in earlier questions. Fruits and vegetables are the easiest to eliminate.
Which of the following schemes aims at creating 300 rural clusters across India to strengthen financial, job and lifestyle facilities in rural areas?
Correct Answer is (C) Shyama Prasad Mukherji Rurban Mission:
The Shyama Prasad Mukherji Rurban Mission (SPMRM) was launched by the Ministry of Rural Development in 2016. The core vision of this scheme is to create 300 “Rurban” clusters—which are clusters of geographically contiguous villages. The goal is to provide these rural clusters with urban-like amenities (such as 24/7 piped water, solid waste management, digital literacy, and skill centers) to stimulate local economic development and halt mass migration from rural to urban slums.
Before SPMRM, there was PURA (Provision of Urban Amenities to Rural Areas), a concept championed by former President Dr. A.P.J. Abdul Kalam in 2003. SPMRM is essentially the modern, upgraded, and more structured incarnation of the PURA vision. State PSCs frequently ask about the connection between PURA and Rurban!
To eliminate the other options logically:
- (A) Stand-Up India: Focuses purely on bank loans (₹10 Lakh to ₹1 Crore) for SC/ST and Women entrepreneurs. It is a credit scheme, not a rural cluster scheme.
- (B) DDU-GKY: This is a specific placement-linked skill training program for rural youth.
- (D) Skill India: The umbrella branding for all skill initiatives, not infrastructure clustering.
As requested, here is the ultimate, high-yield list of 40 essential government schemes categorized by sector. These represent 90% of all scheme-based questions in state PSCs. (Note: Formatted as lists rather than a table to ensure perfect readability and scanning).
I. Rural Infrastructure & Governance
- 1. PMGSY (Pradhan Mantri Gram Sadak Yojana): All-weather road connectivity to unconnected rural habitations.
- 2. PMAY-G (Pradhan Mantri Awas Yojana – Gramin): “Housing for All” in rural areas with basic amenities.
- 3. SVAMITVA Scheme: Drones map village properties to provide legal “Property Cards” to rural homeowners, ending land disputes.
- 4. BharatNet: The world’s largest rural broadband project connecting 2.5 lakh Gram Panchayats with optical fiber.
- 5. SAGY (Saansad Adarsh Gram Yojana): Members of Parliament adopt villages to holistically develop them into model villages.
- 6. Jal Jeevan Mission (JJM): Aims to provide Functional Household Tap Connection (FHTC) to every rural household (Har Ghar Jal) by 2024.
- 7. SBM-G (Swachh Bharat Mission – Gramin): Eradication of open defecation (ODF) and implementation of solid/liquid waste management.
- 8. SPMRM (Rurban Mission): Developing 300 smart village clusters with urban facilities (The answer to this question).
II. Employment, Skills & Poverty Alleviation
- 9. MGNREGA: Legal guarantee of 100 days of wage employment in a financial year for rural households doing unskilled manual work.
- 10. DAY-NRLM (Ajeevika): Organizing rural poor women into Self Help Groups (SHGs) to increase household income.
- 11. DDU-GKY (Deen Dayal Upadhyaya Grameen Kaushalya Yojana): A sub-scheme of NRLM focused specifically on placing rural youth in formal jobs.
- 12. PMKVY (Pradhan Mantri Kaushal Vikas Yojana): Flagship scheme offering short-term skill training and certification to youth.
- 13. PM Vishwakarma: End-to-end support (toolkit, credit, training) for traditional artisans and craftspeople (carpenters, blacksmiths, etc.).
- 14. SANKALP: World Bank-aided scheme empowering District Skill Committees to decentralize skill planning.
- 15. STRIVE: Upgrading the infrastructure and teaching quality of Industrial Training Institutes (ITIs).
- 16. PMEGP (Prime Minister’s Employment Generation Programme): Credit-linked subsidy scheme to generate self-employment micro-enterprises.
III. Financial Inclusion & Entrepreneurship
- 17. PMJDY (Jan Dhan Yojana): Universal access to banking facilities with a basic savings account and RuPay debit card.
- 18. MUDRA Yojana: Loans up to ₹10 Lakh for non-corporate, non-farm small/micro enterprises (Shishu, Kishore, Tarun categories).
- 19. Stand-Up India: Facilitates bank loans between ₹10 lakh and ₹1 Crore to at least one SC/ST borrower and one woman per bank branch.
- 20. Start-Up India: Tax holidays, compliance simplification, and funding support to build a robust startup ecosystem.
- 21. PM SVANidhi: Micro-credit facility specifically providing working capital loans to street vendors.
- 22. PMJJBY (Jeevan Jyoti Bima Yojana): Life insurance cover of ₹2 Lakh for death due to any reason (Age 18-50).
- 23. PMSBY (Suraksha Bima Yojana): Accidental death and disability insurance cover of ₹2 Lakh (Age 18-70).
- 24. APY (Atal Pension Yojana): Guaranteed minimum monthly pension (₹1000 to ₹5000) for unorganized sector workers after age 60.
IV. Agriculture & Allied Sectors
- 25. PM-KISAN: Direct income support of ₹6,000 per year transferred directly into the bank accounts of farmer families.
- 26. PMFBY (Fasal Bima Yojana): Comprehensive crop insurance scheme with low uniform premiums (1.5% Rabi, 2% Kharif).
- 27. PM-AASHA: Umbrella scheme to ensure farmers get Minimum Support Price (MSP) through direct procurement and price deficiency payments.
- 28. e-NAM: Pan-India electronic trading portal networking existing APMC mandis to create a unified national market.
- 29. PKVY (Paramparagat Krishi Vikas Yojana): Promotes cluster-based organic farming with PGS (Participatory Guarantee System) certification.
- 30. PM-KUSUM: Subsidies for farmers to install standalone solar pumps and grid-connected solar power plants to earn extra income.
- 31. PMFME: Financial, technical, and business support for micro food processing enterprises (e.g., local pickle or papad makers).
- 32. RKVY (Rashtriya Krishi Vikas Yojana): Remunerative approaches for agriculture and allied sector rejuvenation.
V. Health, Social Justice & Vulnerable Groups
- 33. Ayushman Bharat (PM-JAY): World’s largest health insurance scheme providing ₹5 Lakh cover per family per year for secondary/tertiary care.
- 34. PM Ujjwala Yojana: Deposit-free LPG connections provided to women belonging to BPL families to combat indoor air pollution.
- 35. Poshan Abhiyaan (National Nutrition Mission): Reducing stunting, under-nutrition, and anemia among children, women, and adolescent girls.
- 36. PMMVY (Matru Vandana Yojana): Maternity benefit of ₹5,000 provided directly to the bank account of pregnant women for their first living child.
- 37. Beti Bachao Beti Padhao: Addressing the declining Child Sex Ratio (CSR) and empowering the girl child through education.
- 38. PM-JANMAN: Massive ₹24,000 Crore mission specifically targeted at the upliftment of Particularly Vulnerable Tribal Groups (PVTGs).
- 39. NAMASTE Scheme: Ensuring 100% mechanization of sewer and septic tank cleaning to eliminate manual scavenging deaths.
- 40. SMILE: Comprehensive rehabilitation and welfare measures for marginalized individuals (Transgender persons and persons engaged in begging).
UPSC CSE / State PSC (Similar PYQ): The ‘Shyama Prasad Mukherji Rurban Mission’ aims at:
(A) Smart city development in 100 selected cities.
(B) Creating smart village clusters with economic/lifestyle urban amenities.
(C) Providing broadband connectivity to all Gram Panchayats.
(D) Linking major rivers to mitigate rural droughts.
Exam Connection: This validates the core definition. Option (C) is BharatNet, and Option (A) is the Smart Cities Mission. The “Rurban” concept is uniquely defined by clustering villages for urban-level amenity provision.