CA-30/12/2025
Contents
1. Central Administrative Tribunals
2. INSV Kaundinya
3. India's Index of Industrial Production (IIP)
4. Digital Yuan (e-CNY)
5. Gross NPA of banks
6. Passenger Assistance Control Room (PACR)
7. Scheme for Promotion of International Cooperation for AYUSH
8. Industrial Hemp
9. Parvati-Arga Bird Sanctuary
10. RCEP minus China
11. Parasynnemellisia khasiana
12. Narsapuram lace craft
Central Administrative Tribunals
Why in news?
In December 2025, the Hyderabad Bench of CAT quashed the appointment of Dr. Jaiteerth R. Joshi as Director General of BrahMos Aerospace, directing authorities to reconsider the selection. This highlights CAT’s role in ensuring fairness in government appointments.
About Central Administrative Tribunals
- Purpose: To adjudicate disputes and complaints relating to the recruitment and service conditions of persons appointed to public services and posts under the Union and certain PSUs.
- Establishment: Created in 1985 under the Administrative Tribunals Act, 1985.
- Nature: Quasi-judicial body, meaning it functions like a court but with specialized jurisdiction.
- Jurisdiction: Covers service matters of Central Government employees, members of All India Services, and employees of certain organizations notified by the government.
Constitutional and legal basis
- Established under Article 323A of the Constitution, inserted by the 42nd Constitutional Amendment.β
- Operates under the Administrative Tribunals Act, 1985, which lays down its jurisdiction, powers, composition, and procedure.β
- Intended to reduce the burden on High Courts and provide costβeffective, timely service justice to public servants.β
Jurisdiction and scope
- Original jurisdiction over recruitment and service matters of: members of All India Services, persons in civil services/posts under the Union, and certain notified PSUs/authorities.β
- Civilians in defence services or posts connected with defence are included, subject to notification; members of the armed forces, Supreme Court staff, and staff of Parliament/High Courts are excluded.β
- Deals with issues like recruitment, promotions, seniority, pay, pension, disciplinary action, and other conditions of service.β
- Headed by a Chairperson, who is from a judicial background, typically a former Chief Justice or Judge of a High Court.β
Powers and procedure
- Exercises powers similar to a High Court with respect to contempt of itself under Section 17 of the Act.β
- Not bound by the Civil Procedure Code; guided by principles of natural justice and can frame its own procedural rules (CAT Procedure Rules, 1987, and Rules of Practice, 1993).β
- Can grant interim relief and review its own orders; appeals from CAT decisions lie to the concerned High Court as per the Supreme Court’s ruling in Chandra Kumar (1997).β
Significance and issues
- Provides specialized adjudication in service matters, improving speed and consistency of decisions and easing pressure on constitutional courts.β
- Often faces challenges like vacancy of members, infrastructural constraints, and case backlog, which can dilute its purpose of expeditious justice.β
- Remains an important component of India’s administrative justice framework for UPSCβrelevant topics like tribunalization, separation of powers, and judicial review.
Why in news?
INSV Kaundinya is an engine-less, traditional stitched-sail ship built by the Indian Navy using 5th-century techniques to revive ancient Indian maritime heritage. It embarked on its maiden overseas voyage on December 29, 2025, from Porbandar, Gujarat, to Muscat, Oman, retracing historic trade routes across the Indian Ocean.ββ
Key Facts About INSV Kaundinya
- Type: Indian Naval Sailing Vessel (INSV), engine-less, propelled only by sails and oars
- Construction: Built using the stitched ship technique — wooden planks sewn together with coconut coir rope and sealed with natural resins
- Dimensions: Length 19.6 m, Beam 6.5 m, Draught 3.33 m
- Crew: 15 sailors
- Builder: Hodi Innovations (OPC) Pvt. Ltd.
- Commissioned: 21 May 2025
- Design Inspiration: Based on a 5th-century CE merchant ship depicted in Ajanta Cave murals
- Namesake: Kaundinya I, a legendary Indian mariner who sailed to Southeast Asia and became king of Funan (present-day Cambodia)
Historical & Cultural Significance
- Reviving Maritime Heritage: The stitched ship technique was once common across India’s coasts and enabled long-distance voyages to West Asia, Africa, and Southeast Asia centuries before modern metallurgy.
- Symbolic Voyage: Its maiden journey retraced ancient trade routes between India and Oman, showcasing India’s maritime legacy.
- Tripartite Project: Undertaken by the Ministry of Culture, Indian Navy, and Hodi Innovations to rediscover indigenous knowledge systems.
- Engine-less Design: Highlights sustainability and authenticity — no modern propulsion, only traditional craftsmanship.
Challenges & Limitations
- Navigation Risks: Without engines, voyages depend entirely on wind and manual rowing.
- Durability: Wooden stitched ships are less resilient than steel vessels in rough seas.
- Symbolic, not Tactical: INSV Kaundinya is a heritage vessel, not designed for combat or modern naval operations.
India's Index of Industrial Production (IIP)
Why in news?
India's Index of Industrial Production (IIP) surged to 6.7% year-on-year growth in November 2025, marking the highest rate in 25 months and a sharp rebound from October's revised 0.5%. This data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on December 28, reflects robust factory output amid easing monsoons and post-festive restocking.
Sector Breakdown
- Infrastructure/construction goods: 12.1%
- Consumer durables: 10.3%
- Capital goods: 10.4%
- Intermediate goods: 7.3%β
Key Facts
- Growth Rate: IIP rose 6.7% YoY in Nov 2025, compared to 5% in Nov 2024 and just 0.4% in Oct 2025.
- Sectoral Drivers:
- Manufacturing: Strong growth in basic metals, pharmaceuticals, and motor vehicles.
- Mining: Expanded 5.4%, aided by post-monsoon recovery and iron ore output.
- Electricity: Slight contraction, showing uneven sectoral performance.
- Policy Impact: Reduction in GST rates (Sept 2025) on consumer products boosted demand and manufacturing.
- Previous Context: Previous peak was 11.9% in Nov 2023; Nov 2025 marks a two-year high.
- Cumulative Growth (Apr–Nov 2025): Industrial output grew 3.3%, slower than 4.1% in the same period last year.
Why in news?
China’s digital yuan (e-CNY) is the country’s official central bank digital currency (CBDC). Starting January 1, 2026, it will become interest-bearing “digital deposit money”, aligning it with traditional bank deposits and expanding its role in domestic and global finance.
What is the Digital Yuan (e-CNY)?
- Launched by the People’s Bank of China (PBoC) in 2014 as one of the world’s first CBDC projects.
- Initially designed as a cash-like instrument for retail payments, point-of-sale transactions, and peer-to-peer transfers.
- Now evolving into a deposit-like instrument with interest, making it comparable to conventional savings accounts.
Key Developments (2025–2026)
- Interest Payments: From Jan 1, 2026, commercial banks will pay interest on e-CNY balances.
- Legal Status: e-CNY will have the same legal standing as traditional bank deposits, strengthening trust and adoption.
- Expanded Use Cases: Beyond retail, it will be used in tourism, healthcare, education, public services, and cross-border trade.
- Global Positioning: China aims to reinforce its leadership in CBDCs, positioning the yuan as a stronger player in international trade.
Risks & Challenges
- Financial Stability: Transitioning from cash-like to deposit-like money may affect liquidity and banking models.
- Privacy Concerns: As a state-backed digital currency, e-CNY raises questions about transaction monitoring.
- Global Competition: Other countries (e.g., EU, US) are exploring CBDCs, so China’s leadership may face challenges.
- Adoption Hurdles: Despite trials, public uptake has been slower than expected; interest payments are meant to boost usage.
Why in news?
India's banking sector has seen a significant decline in gross non-performing assets (GNPAs), reaching multi-decade lows as per the latest RBI data. This improvement reflects better recoveries, upgrades, and overall asset quality enhancement across public, private, and foreign banks.β
Key Reasons for Decline
- Recoveries & Upgradations: Nearly 42.8% of the reduction in NPAs during FY25 came from successful recoveries and loan upgrades.
- Write-offs: Banks wrote off βΉ1.58 lakh crore worth of bad loans, the largest contributor to NPA reduction.
- Provisioning: Higher provisioning ensured net NPAs remained low at 0.5%.
- Improved Credit Discipline: Stronger monitoring and regulatory oversight reduced fresh slippages.
Implications for the Banking Sector
- Resilience: RBI notes that banks’ balance sheets are stronger, with double-digit growth in deposits and credit.
- Profitability: Lower NPAs mean reduced provisioning costs, boosting profitability.
- Investor Confidence: A healthier banking sector attracts more investment and supports credit expansion.
- Policy Impact: The trend reflects the success of reforms like the Insolvency and Bankruptcy Code (IBC) and stricter NPA recognition norms.
Risks & Challenges Ahead
- Fresh Slippages: Despite improvements, banks added βΉ2.26 lakh crore of fresh NPAs in FY25.
- Sectoral Stress: MSMEs and certain NBFC-linked exposures remain vulnerable.
- Global Uncertainty: External shocks (oil prices, geopolitical risks) could affect borrower repayment capacity.
Passenger Assistance Control Room (PACR)
Why in news?
The Ministry of Civil Aviation (MoCA) has launched a 24x7 Passenger Assistance Control Room (PACR) to handle air passenger grievances more effectively. Operationalized on December 10, 2025, at Udaan Bhawan in New Delhi, it responds to recent disruptions like IndiGo issues and fog-related delays.β
About Passenger Assistance Control Room (PACR)
Passenger Assistance Control Room (PACR) is a 24×7 integrated hub set up by India’s Ministry of Civil Aviation to fast-track passenger grievance redressal, monitor aviation operations, and provide real-time assistance during disruptions. It was launched in December 2025 at Udaan Bhawan, New Delhi, and has already resolved thousands of passenger complaints.
Key Functions
- Real-time monitoring of aviation operations across India.
- Passenger grievance redressal: Handles complaints related to flight delays, cancellations, refunds, baggage issues, congestion, and inadequate facilities.
- Crisis response: Coordinates immediate interventions during disruptions (e.g., fog delays, airline operational breakdowns).
- Direct passenger support: Attends to phone calls and provides urgent assistance.
- Data-driven oversight: Tracks complaints and ensures accountability across airlines and airports.
Impact So Far
- 13,000+ grievances resolved since December 3, 2025.
- 500+ urgent interventions handled via phone support.
- Positive feedback from passengers and stakeholders, with noticeable improvement in grievance resolution speed.
Importance
- Rapid growth in aviation: India’s passenger traffic has surged over the past decade, leading to frequent issues like delays, cancellations, and overcrowding.
- Unified mechanism: PACR consolidates multiple agencies into one coordinated response system.
- Passenger-centric approach: Ensures that travellers’ concerns are addressed promptly, reducing frustration and improving trust in the aviation ecosystem.
Scheme for Promotion of International Cooperation for AYUSH
Why in news?
On December 28, 2025, the Minister of State (IC) for AYUSH informed Parliament about the scheme's progress, emphasizing support for drug manufacturers and service providers at international events like trade fairs. The Ministry also advanced ties with WHO, including a May 2025 agreement for Traditional Medicine modules in the International Classification of Health Interventions (ICHI) and the GTMC in Jamnagar, Gujarat.β
About
The Scheme for Promotion of International Cooperation (IC) for AYUSH is a Central Sector Scheme by the Ministry of AYUSH that aims to promote Ayurveda, Yoga, Naturopathy, Unani, Siddha, Sowa-Rigpa, and Homeopathy globally. It supports exports, academic collaborations, research, and awareness-building activities to strengthen AYUSH systems internationally.
Objectives of the Scheme
- Global Awareness: Promote and strengthen interest in AYUSH systems worldwide.
- International Recognition: Facilitate recognition of AYUSH medicine and practices at global platforms.
- Trade Boost: Support Indian AYUSH drug manufacturers and service providers to expand exports.
- Academic Collaboration: Establish AYUSH Academic Chairs in foreign universities.
- Research Promotion: Encourage joint research projects and knowledge exchange.
- Capacity Building: Organize training workshops, symposiums, and expert exchanges.
Significance
- Soft Power Diplomacy: AYUSH acts as a cultural and health diplomacy tool for India.
- Market Development: Expands global market for AYUSH products, creating economic opportunities.
- Knowledge Exchange: Builds bridges between traditional Indian medicine and global health systems.
- Youth & Research Opportunities: Opens pathways for Indian scholars and practitioners to engage internationally.
Challenges & Considerations
- Regulatory Barriers: Different countries have varying rules for herbal medicines and traditional therapies.
- Scientific Validation: Need for more evidence-based research to gain wider acceptance.
- Quality Standards: Ensuring global compliance with safety and efficacy standards.
- Cultural Integration: Balancing traditional practices with modern healthcare expectations.
Why in news?
Himachal Pradesh has launched a major policy to legalize and regulate industrial hemp cultivation under the 'Green to Gold' initiative, aiming to boost the state's bio-economy and rural livelihoods. This development positions the crop as a sustainable alternative to traditional farming, with pilot projects set to begin soon.β
About Industrial Hemp
- Botanical identity: Belongs to the Cannabis sativa L. species, related to marijuana but with very different properties.
- THC content: Less than 0.3%, meaning it has no psychoactive effect.
- Plant traits: Herbaceous, dioecious (male and female plants separate), high in fibre and seed yield.
Key Characteristics
- Fast-growing: Harvest cycle of 70–140 days.
- Climate-resilient: Requires ~50% less water than cotton, grows in marginal soils.
- Soil-friendly: Suppresses weeds, improves soil health.
- Multipurpose: Provides fibre, seed, oil, and biomass.
Global & Indian Context
- Global cultivation: Legal in parts of Europe, North America, and Asia under regulated THC thresholds.
- India: Himachal Pradesh recently legalized regulated cultivation under the Green to Gold initiative, aiming to promote bio-economy-led growth.
- Policy trend: States are exploring hemp as a sustainable crop for rural development and industrial innovation.
Challenges & Risks
- Regulatory hurdles: Strict THC monitoring required to prevent misuse.
- Market awareness: Hemp often confused with marijuana, slowing adoption.
- Infrastructure needs: Processing facilities and supply chains must be developed.
- Global competition: Established hemp industries in Europe and North America may dominate exports.
Parvati-Arga Bird Sanctuary
Why in news?
The Indian government recently declared the Parvati-Arga Bird Sanctuary in Uttar Pradesh an Eco-Sensitive Zone (ESZ) to enhance biodiversity conservation and promote responsible ecotourism. This development, announced on December 27, 2025, regulates activities like construction and industrial expansion around the sanctuary.β
About
- Location: Gonda district, Uttar Pradesh, ~45 km from Gonda city, near Mankapur-Nawabganj Road and Mankapur-Faizabad Railway Line
- Area: 10.84 km² (1,084 hectares)
- Established: Declared a sanctuary in 1990; officially notified in 1997
- Designation: Recognized as a Ramsar Wetland of International Importance on 2 December 2019
Geography & Ecology
- Formed from two interconnected lakes: Parvati and Arga, about 1.5 km apart.
- Originally part of the Saryu River system; the lakes remained when the river changed course.
- Rain-fed depressions in the Gangetic plains of the Terai region, sustaining water year-round.
Birdlife
- Resident Birds: Purple Moorhen, Swamp Hen, and other waterfowl nest here.
- Migratory Birds: Over 40,000 wintering waterfowl visit annually.
- Key Species:
- Sarus Crane (state bird of Uttar Pradesh) finds ideal habitat here.
- More than 23 species of waterfowl recorded.
Other Wildlife
- Mammals such as Jackal and Nilgai are found in the sanctuary.
- The wetlands also support diverse aquatic flora and fauna, crucial for ecological balance.
Challenges & Conservation
- Threats: Encroachment, pollution, and unsustainable agriculture around wetlands.
- Conservation Importance: As a Ramsar site, it plays a vital role in migratory bird conservation and wetland ecosystem services.
- Action Needed: Community-based eco-tourism and stricter protection measures to preserve biodiversity.
Why in news?
India's "RCEP minus China" strategy has gained prominence following the recent conclusion of the India-New Zealand Free Trade Agreement (FTA) in December 2025, allowing India to secure market access with all 15 RCEP members except China. This approach builds on India's 2019 decision to exit the Regional Comprehensive Economic Partnership (RCEP) due to concerns over cheap Chinese imports flooding markets and widening trade deficits.
About RCEP?
- RCEP (Regional Comprehensive Economic Partnership) is the world’s largest trade bloc, comprising:
- 10 ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam)
- Plus Australia, China, Japan, South Korea, and New Zealand.
- It was signed in November 2020, but India withdrew in 2019, citing concerns about cheap imports from China hurting domestic industries.
India’s “RCEP Minus China” Strategy
- India opted out of RCEP in 2019 to avoid the “China risk” — fears of trade imbalances and flooding of Indian markets with Chinese goods.
- Instead, India pursued bilateral Free Trade Agreements (FTAs) with individual RCEP members:
- Already has FTAs with ASEAN, Japan, South Korea, Australia.
- Recently concluded an FTA with New Zealand (Dec 2025).
- With this, India now has trade deals with every RCEP member except China, effectively creating an “RCEP minus China” framework.
Importance
- Economic Gains: India secures most benefits of RCEP (market access, integration) without formally joining.
- Strategic Autonomy: Maintains independence in trade policy, avoiding overdependence on China.
- Geopolitical Balance: Strengthens ties with ASEAN, Japan, Australia, and others, while countering China’s influence in the Indo-Pacific.
- Domestic Safeguards: Protects Indian MSMEs and agriculture from being overwhelmed by Chinese imports.
Parasynnemellisia khasiana
Why in news?
Parasynnemellisia khasiana is a newly discovered fungus species and genus from the Phaeosphaeriaceae family in the Pleosporales order. It grows on dead bamboo stems in Meghalaya's forests.β
Taxonomy:
- Kingdom: Fungi
- Phylum: Ascomycota
- Order: Pleosporales
- Family: Phaeosphaeriaceae
- Genus: Parasynemellisia (newly established)
- Species: Parasynemellisia khasiana
Discovery:
- Found on bamboo litter in Meghalaya, India.
- Published in Phytotaxa (Vol. 732, Dec 2025).
- Authors include J. Pratibha, D. Jayarama Bhat, Turki M. Dawoud, and Ashish Prabhugaonkar.
Significance:
- Represents a new genus and species in fungal taxonomy.
- Adds to the growing list of bambusicolous fungi (fungi associated with bamboo).
- Contributes to understanding fungal diversity in Northeast India, a biodiversity hotspot.
Narsapuram lace craft
Why in news?
PM Modi highlighted Narsapuram lace craft in the 129th episode of Mann Ki Baat on December 28, 2025, praising it as a model of women's empowerment and economic progress through traditional arts.
About Narsapuram lace craft
Origins and Heritage
- Location: Narsapuram, West Godavari district, Andhra Pradesh.
- Craft type: Crochet lace-making, introduced during colonial times and nurtured by local communities.
- Generational legacy: Families, especially women, have preserved and passed down this skill for over a century.
Women’s Empowerment
- Women-led industry: The craft is largely practiced by rural women, often organized into self-help groups.
- Economic independence: Lace-making provides livelihood opportunities, enabling women to contribute to household income and community development.
- Recognition: PM Narendra Modi highlighted Narsapuram lace in his Mann Ki Baat program, calling it a model of women’s empowerment.
Global Impact
- Exports: More than 500 varieties of lace products are produced and exported worldwide.
- Employment: Around 100,000 women artisans are engaged in this craft.
- GI Tag: Narsapuram lace has received a Geographical Indication (GI) certification, boosting its authenticity and market value.
Current Developments
- Government support: NABARD and Andhra Pradesh government are training artisans in new designs, improving skills, and connecting them to modern markets.
- Cultural pride: Leaders like CM Chandrababu Naidu have emphasized the importance of preserving this heritage craft and supporting artisans.
Challenges & Risks
- Market fluctuations: Dependence on exports makes artisans vulnerable to global demand shifts.
- Middlemen exploitation: Artisans often face low returns compared to retail prices.
- Need for modernization: Without design innovation and digital marketing, younger generations may lose interest.
Question & Answer
Question 1. The efforts under the Scheme for Promotion of International Cooperation for AYUSH focus on leveraging traditional Indian medicine as a tool for:
Select your answer:
A) Replacing the core structure of the National Health Mission (NHM) in rural areas.
B) Achieving scientific validation by excluding Unani and Siddha systems from international focus.
C) Enhancing India's cultural soft power and expanding export markets for indigenous health practices.
D) Standardizing global drug testing protocols based solely on the principles of Homeopathy.
Explanation: (C)
The scheme aims to promote AYUSH globally, support manufacturers for exports, and build international recognition, functioning significantly as a form of cultural soft power diplomacy.
Question 2. Parvati-Arga Bird Sanctuary, recently designated an Eco-Sensitive Zone (ESZ), is geographically significant because it is formed by two interconnected lakes that were originally part of which major river system?
Select your answer:
A) Yamuna River system in the Upper Gangetic Plain.
B) Godavari River in the Deccan Plateau.
C) Saryu River system in the Terai region.
D) Mahanadi River basin in the Eastern Coastal Plains.
Explanation: (C)
The Parvati-Arga wetlands are rain-fed depressions in the Terai region, which historically remained after the Saryu River changed its course.
Question 3. The recent voyage of INSV Kaundinya is significant for reviving which specific aspect of ancient Indian maritime technology?
Select your answer:
A) The use of iron hull plating and steam propulsion adapted from Roman designs.
B) The construction technique involving sewing wooden planks together using coir ropes and natural sealants.
C) The development of advanced navigational instruments based on stellar mapping prevalent in the Gupta period.
D) The exclusive use of complex gearing mechanisms derived from early cartography traditions.
Explanation: (B)
INSV Kaundinya was built using the stitched ship technique, where wooden planks are sewn together with coconut coir rope and sealed with natural resins, reflecting 5th-century construction methods.
Question 4. In the context of the Central Administrative Tribunal (CAT), which of the following statements is/are correct regarding its constitutional and appellate framework?
Select your answer:
A) CAT derives its power directly from Article 226 of the Constitution, acting as an alternative to the High Courts.
B) Appeals against the decisions of the CAT lie exclusively with the Supreme Court of India under its writ jurisdiction.
C) It was established via the 42nd Constitutional Amendment which inserted Article 323A, empowering the Parliament to legislate for its creation.
D) The jurisdiction of CAT covers service matters of the staff of the Supreme Court and High Courts but excludes members of All India Services.
Explanation: (C)
CAT was established under Article 323A, inserted by the 42nd Constitutional Amendment. Appeals from CAT decisions lie with the concerned High Court (as per the Chandra Kumar case ruling), not exclusively the Supreme Court. Its jurisdiction excludes Supreme Court staff and High Court staff.
Question 5. The establishment of the Passenger Assistance Control Room (PACR) by the Ministry of Civil Aviation aims to address gaps primarily related to:
Select your answer:
A) Air traffic control modernization and runway capacity planning at major hubs.
B) Grievance redressal, real-time operational monitoring, and crisis coordination for passengers.
C) Safety standards enforcement related to aircraft maintenance and pilot certification.
D) Fuel efficiency standards and the integration of Sustainable Aviation Fuel (SAF) mandates.
Explanation: (B)
PACR is specifically designed as an integrated hub for fast-tracking passenger grievance redressal (delays, refunds, baggage) and coordinating immediate assistance during operational disruptions.
Question 6. The evolution of China's Digital Yuan (e-CNY) into an interest-bearing instrument akin to traditional bank deposits primarily impacts which of the following aspects of its financial system?
Select your answer:
A) It necessitates the immediate repeal of the existing foreign exchange management laws.
B) It could alter commercial bank deposit bases and influence domestic monetary liquidity management.
C) It guarantees the exclusion of the Digital Yuan from the scope of international trade settlements.
D) It implies a shift away from the People's Bank of China (PBoC) for issuing fiat currency.
Explanation: (B)
When a CBDC starts bearing interest and functions like a deposit, it competes directly with commercial bank savings deposits. This necessitates adjustments in how commercial banks manage their liabilities and how the PBoC manages overall system liquidity.
Question 7. The discovery of Parasynnemellisia khasiana in Meghalaya contributes primarily to which field of scientific study in India?
Select your answer:
A) Molecular taxonomy of endemic flowering plants in the Western Ghats.
B) Understanding fungal diversity, particularly bambusicolous fungi in Northeast India.
C) Phylogenetic analysis of marine algae found along the Gujarat coast.
D) Mapping the distribution of mammalian species using satellite telemetry.
Explanation: (B)
Parasynnemellisia khasiana is a newly established genus and species of fungus found growing on dead bamboo stems, directly contributing to the study of fungal diversity and specialized bamboo-associated fungi (bambusicolous fungi) in the Northeast biodiversity hotspot.
Question 8. The Narsapuram lace craft is recognized both for its historical preservation through traditional methods and its contemporary role in:
Select your answer:
A) Solely supplying raw materials for textile printing industries in northern India.
B) Acting as a primary export driver for specialized industrial machinery from Andhra Pradesh.
C) Empowering rural women artisans through localized production and international sales channels.
D) Replacing synthetic fiber use in technical textiles manufacturing.
Explanation: (C)
Narsapuram lace craft is predominantly a women-led industry in rural Andhra Pradesh, providing significant livelihood opportunities and empowerment, which was highlighted in recent governmental addresses.
Question 9. The legalization of regulated cultivation of industrial hemp, such as in Himachal Pradesh, is strategically important because the crop is characterized by which environmental advantage over traditional cash crops like cotton?
Select your answer:
A) It requires significantly higher levels of chemical fertilizers for adequate yield.
B) It produces high-THC varieties essential for the pharmaceutical sector.
C) It is highly climate-resilient, requiring substantially less water and thriving in marginal soils.
D) It mandates mechanized harvesting, immediately increasing the mechanization index of agriculture.
Explanation: (C)
Industrial hemp is noted for being climate-resilient, requiring about 50% less water than cotton and growing well in marginal soils, making it a sustainable alternative for bio-economy growth.
Question 10. The recent reduction in Gross Non-Performing Assets (GNPAs) to multi-decade lows in the Indian banking sector is primarily attributed to which of the following mechanisms?
Select your answer:
A) A sharp decrease in fresh credit disbursement, leading to lower overall lending books.
B) Significant write-offs by banks coupled with efficient asset recovery and upgradation.
C) Mandatory rescheduling of loan tenures by the Reserve Bank of India (RBI) for all stressed accounts.
D) Substantial recapitalization of Public Sector Banks using the Consolidated Fund of India.
Explanation: (B)
The text explicitly states that the largest contributor to NPA reduction was the writing off of bad loans by banks, along with recoveries and upgradations, indicating successful clean-up of existing NPAs rather than just reduced lending.
Question 11. India's strategic approach of pursuing FTAs with individual RCEP members, excluding China, is aimed at achieving which dual objective?
Select your answer:
A) Securing market access within the broader Asian trade framework while maintaining domestic safeguards against Chinese imports.
B) Forcing China to rejoin the RCEP by completely isolating its trade partners.
C) Prioritizing agricultural trade over manufacturing sector access across all partner nations.
D) Establishing a new independent trade bloc modeled after the BRICS framework.
Explanation: (A)
The 'RCEP minus China' strategy allows India to benefit from market access agreements with the 14 other members (ASEAN, Japan, Australia, New Zealand) while avoiding the feared adverse impact of cheap Chinese imports on domestic MSMEs and agriculture.
Question 12. If the Index of Industrial Production (IIP) shows a sharp increase driven primarily by Infrastructure/Construction Goods and Capital Goods in a given month, what does this primarily indicate about the economy?
Select your answer:
A) A strong revival in the services sector and increased retail consumption.
B) Increased investment activity and future capacity expansion in the economy.
C) High inflationary pressure due to rising input costs in the primary sector.
D) A deceleration in export demand, forcing domestic restocking.
Explanation: (B)
Capital Goods (machinery, equipment) and Infrastructure Goods represent long-term investment and fixed asset formation. Their strong growth within the IIP signals rising business confidence and expansion of productive capacity in the economy.
Download Pdf