Sate whether the following statements are true of false.

1) Infrastructure refers to the services and facilities that are necessary for an economy to function.

2) Energy can be obtained from crop-residue.

3) Biogas is very expensive.

4) Inland water transport takes place through rivers.

5) India is self-sufficient in the production of petroleum.

6) National highways connect important cities and big industrial centres.

7) The Indian civil aviation sector is not yet open to private sector.

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Solution

1. This statement is true.
Explanation-
Infrastructure is defined as the underlying tangible and organisational structures essential for the smooth and prosperous functioning of an economy. For example, education, transport, communication, banking, health, etc. constitute infrastructure. The presence of sound infrastructure is essential for a smooth and efficient production in all the sectors of an economy

2. This statement is true.
Explanation-
Energy can be obtained from crop-residue and other waste material, such as cow dung by using biogas technology. This technology helps in converting waste material into fuel and acts as the most useful and economical source of energy. It also helps in reducing the pressure on firewood.

3. This statement is false.
Explanation-
Biogas technology helps in obtaining energy by converting crop-residue and other waste material, such as cow dung, into fuel. It is the most useful and economical source of energy. It is inexpensive and feasible in nature, as it uses waste material as inputs, which are cheaply and easily available. Thus, biogas is an inexpensive source of energy.

4. This statement is true.
Explanation-
Inland water transport involves movement of people and goods from one place to another through canals and rivers. It is the cheapest mode of transport and is generally used in Assam, Bihar and Kerala.

5. This statement is false.
Explanation-
No, India is not self-sufficient in the production of petroleum. A large portion of the country’s demand for petroleum is fulfilled by imports from other countries.

6. This statement is true.
Explanation-
National highways are an important means of traditional transport that are managed by the central government. These highways act as the lifeline of the country by connecting important cities and big industrial centres.

7. This statement is false.
Explanation-
The Indian civil aviation sector was opened up to private operators in 1991. This was done to promote efficiency in the sector. As a part of this move, the central government also considered disinvesting the shares of Air India and Indian Airlines.

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Q. State whether the following statements are True of False.
Indian civil aviation sector is not yet opened for private sector.

Q. Read the following passage carefully and answer the given questions.

On attending a conference which focused on the role of the service sector in the Indian economy, I was amazed. The conference gave a very interesting perspective on the role of the service sector in the rate in agriculture and industry. The current situation in India is that the growth rate of services has overtaken both agriculture and industry and is now contributing to more than fifty percent of GDP. The services sector has the highest growth rate and is the least volatile sector. Growth is particularly marked in public services, IT and financial services. In some areas the growth rate of services sector is forty to fifty percent due to increased use of mobile technologies. India, therefore, has a services oriented economy. It hasn’t followed traditional growth models as in China. However, in the process of doing so it has skipped the manufacturing stage and has jumped straight from the agricultural stage to service stage, which is also the main reason for the expansion of the service sector. In fact, the situation now is such that the growth in the service sector can and will support the growth in the service sector can and will support the growth in the agricultural and industrial sectors. However, the only setback for Indian economy is the lack of growth in the manufacturing sector, which causes dependence on other countries, which is not so desirable in terms of job creation and increase in prosperity. Population is also a major concern of the Indian economy. As the population of India grows so also does the number of dependents in the population both in the lower and higher age groups. In such a scenario of increasing population, from crisis, growth becomes difficult. For such an economy to grow it has to invest. Currently, the public sector invests more than it saves. The household sector saves in surplus but it is not increasing, so it cannot continue to support private and public sectors. There is a massive need to spend on agriculture and infrastructure development of the country. A part from health, education should also be the priority of the government, particularly the education of women, in order to reduce the birth rate.
However, all said and done, we cannot deny the fact that growing population of the country can also benefit the economy if considered as a resource and used efficiently. In fact, it is said that in the next two decades a ‘growth window’ for India will open, which may not come again because the working population to total population ratio will rise up to mid 2030s only. It is important for India of maximize its economic growth in this period. For doing so, it will be important of Indian to absorb the growing labour force. This would mean that most people in the country would be employed (with a steady income), the number of dependents in the population would reduce and with effect the economy would prosper. Absorbing the labour force is also very important if the service sector is to play a key role in the growing Indian economy. Today to address the issue of poverty in India, there is a need to change the bad sectors into good sectors and in turn to move people from unemployment to employment. Only the service sector can help in doing so and thus can have major impact on poverty. Although service – intensive sectors such as hotels, restaurant and IT are booming with growth in human skills, there are geographical, labour unions and human skills restrictions on labour movement. The key question here, I suppose, is that – can service sector lead the economy? For example, can service such as IT be taken to rural areas? Experts in the conference have suggested that it seems that services could lead the economy. However, there are certain prerequisites for the same. In order words, there needs to he great equality between the different states and better gender balance. There is also the need for additional fiscal equality, tax reforms to fund education, reeducation in government debt, and the revenue account must be kept in balance. Progress is good but still the initial conditions for growth have not yet been achieved.

What does the author mean by the statement, “ ___ a ‘growth window’ for India will open”?

Q. Consider the following statements about Public Private Partnership:

Which of the above given statements is/are correct?

2 only
Both 1 and 2
1 only
Neither 1 nor 2

On attending a conference, which focused on the role of the services sector in the Indian economy I was amazed. The conference gave a very interesting perspective on the role of the service sector in the growth of the Indian economy in relation to growth rates in agriculture and industry. The current situation in India is that the growth rate of services has overtaken both agriculture and industry and is now contributing to more than 50% of GDP. The service sector has the highest growth rate and is the least volatile sector. Growth is particularly marked in public services, IT and financial services.

In some areas, the growth rate of the service sector is 40-50% due to increased use of mobile technologies. India, therefore, has a service-oriented economy. It hasn't followed traditional growth models as in China. However, in the process of doing so it has skipped the manufacturing stage and has jumped straight from the agriculture stage to service stage, which is also the main reason for the expansion of the service sector. In fact, the situation now is such that the growth in the service sector can and will support the agriculture and industrial sectors. However, the only setback for the Indian economy is the lack of growth in the manufacturing sector which causes dependence on other countries, which is not so desirable in terms of job creation and increased prosperity.

Population is also a major concern of the Indian economy. As the population of India grows so also does the number of dependents in the population in both the lower and higher age groups. In such a scenario of increasing population, especially in an economy which is still recovering from the crisis, growth becomes difficult. For such an economy to grow it has to invest. Currently, the public sector invests more than it saves. The household sector saves in surplus, but it is not increasing so it cannot continue to support private and public sectors. There is a massive need to spend on agriculture and infrastructure development in the country. Apart from that, health and education should also be the priority of the government particularly the education of women in order to reduce the birth rate.

Q. According to the passage, which of the following is/ are true about the impact of increasing population on the Indian economy?

Q. Q. Consider the following statements about Public Private Partnership:Which of the above given statements is/are correct?

1 and 2 only
1 and 3only
3 only
2 and 3 only

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