February 2025 Current Affairs Quiz PDF with Answers

Answer: B) 4.4% of GDP

The Union Budget 2025 has set a fiscal deficit target of 4.4% of GDP, aiming for fiscal consolidation while continuing investments in infrastructure and social welfare. This is lower than the previous year’s target.

Answer: B) 6.4%

The Economic Survey 2024-25 projects India’s GDP growth at 6.4% for FY25, with an expected range of 6.3-6.8% in FY26. Various global agencies, including the IMF and World Bank, predict growth between 6.5-7%.

Answer: B) Artificial Intelligence, Quantum Computing & Semiconductors

The government has allocated ₹1 lakh crore for AI, quantum computing, and semiconductor development, promoting technological self-reliance and digital transformation in India.

Answer: A) Achieving 100 GW nuclear power capacity by 2047

The Union Budget 2025 has set an ambitious target of 100 GW nuclear power capacity by 2047, as part of India’s transition towards clean and sustainable energy sources.

Answer: C) 3.2%

The unemployment rate in India has declined to 3.2%, showing improvement in job creation and economic recovery post-pandemic. This is a significant drop from 6% in previous years.

Answer: B) ₹2 lakh billion

UPI transactions have reached nearly ₹2 lakh billion in FY24, highlighting the growing adoption of digital payments and financial inclusion in India.

Answer: A) Fisheries

Fisheries recorded the highest CAGR of 8.7%, followed by Meat & Eggs (7.5%) and Livestock & Milk (5.8%), showing strong growth in non-cereal agriculture.

Answer: A) AI-driven job losses

The survey warns of potential job losses due to AI adoption, urging the need for worker protection measures, upskilling programs, and AI regulation to manage economic risks.

Answer: B) ₹19,000 crore

The government has allocated ₹19,000 crore for the Green Hydrogen Mission, promoting clean energy and reducing fossil fuel dependence.

Answer: B) 30%

The services sector contributes 55% to India's GVA but employs only 30% of the workforce, indicating the need for higher employment generation in this sector.

Answer: B) 25% </br>

The 2025 Budget proposes a presumptive tax regime where only 25% of the total remuneration received by foreign nationals working in electronics manufacturing will be taxable, leading to a significantly lower effective tax rate.

Answer: C) Electronics Manufacturing </br>

India's electronics manufacturing sector is expected to grow significantly, doubling to over $200 billion in the next three to four years due to the reforms introduced in the 2025 Budget.

Answer: B) To simplify tax procedures for warehousing </br>

The Safe Harbour provision allows non-residents to store components intended for electronics manufacturing in India, reducing tax disputes and simplifying procedures.

Answer: B) 14.4% </br>

The government has targeted a 14.4% growth in income tax collection for the coming financial year as per the 2025 Budget.

Answer: B) Insurance </br>

The 2025 Budget proposes increasing the Foreign Direct Investment (FDI) cap in insurance to 100% to boost financial inclusion and attract investments.

Answer: C) 100 low-productivity districts </br>

The PM Dhan-Dhanya Krishi Yojana targets 100 low-productivity districts to improve crop productivity, diversification, and credit access for farmers.

Answer: C) ₹5 lakh </br>

The loan limit for Kisan Credit Cards (KCC) has been increased from ₹3 lakh to ₹5 lakh, benefiting 77 million farmers by providing easier access to credit.

Answer: C) Liability and asset issues </br>

The privatization of PSUs is hindered due to issues related to liabilities and assets, especially when companies hold large tracts of land.

Answer: A) Fisheries sustainability and export opportunities </br>

The new framework for the fisheries sector focuses on promoting sustainability and creating export opportunities, thereby boosting the sector's growth.

Answer: B) Food inflation and weather-related risks </br>

Food inflation and weather-related risks are among the key challenges for the agriculture sector, which are addressed through reforms and support in the 2025 Budget.

Answer: C) To enhance transparency and safety in retail algo trading

SEBI’s new regulations aim to ensure transparency, risk management, and compliance in algorithmic trading by strengthening brokers’ responsibilities and introducing authentication measures.

Answer: C) ₹5 lakh

The government has increased the KCC loan limit from ₹3 lakh to ₹5 lakh to provide better financial support to farmers.

Answer: A) To assist MSMEs in managing compliance costs

TAP is designed to support MSMEs by providing assistance in handling non-tariff barriers such as the EU carbon tax and the US turtle exclusion device rules.

Answer: C) By helping low-rated companies improve bond ratings

PCE allows low-rated firms to enhance their bond ratings, making them more attractive to institutional investors.

Answer: B) Rising gold prices and RBI’s stricter unsecured loan rules

The demand for gold-backed loans increased due to higher gold prices and RBI’s tightening of unsecured lending rules, making gold an attractive collateral option.

Answer: C) Illegal Immigration Crackdown

The deportation was part of the U.S. administration’s crackdown on illegal immigration, which has increased under stricter enforcement measures.

Answer: C) Gujarat

The Gujarat government has formed a committee to draft a UCC bill, which aims to create uniform personal laws across religions in India.

Answer: B) Supporting manufacturing and high-tech startups

The new Fund of Funds aims to boost domestic production and innovation by providing financial support to manufacturing and high-tech startups.

Answer: B) In retaliation against U.S. trade restrictions

China imposed new tariffs on U.S. goods in response to American trade restrictions, escalating the ongoing trade war between the two nations.

Answer: C) Allocating 3.1% of GDP for infrastructure investments

The government’s strategy to reduce the fiscal deficit includes significant capital expenditure on infrastructure, aiming for long-term economic growth.

Answer: C) Reduce crude oil imports

The ethanol blending program aims to reduce India's dependence on crude oil imports by mixing ethanol with petrol. The government targets 25% blending (E25) by 2026-27, leading to foreign exchange savings and a decrease in crude oil consumption.

Answer: C) Defence Research and Development Organisation (DRDO)

The Pinaka MRLS was developed by DRDO and is a key artillery system of the Indian Armed Forces. It has a range of 45 km and was effectively used during the Kargil War.

Answer: B) It provides India a direct trade route to Afghanistan and Central Asia

Chabahar Port in Iran helps India bypass Pakistan and access Afghanistan and Central Asia. It also counters China’s influence in the region and reduces cargo transportation costs.

Answer: C) 4.4%

The Indian government has set a fiscal deficit target of 4.4% for FY 2025-26, improving from the previous estimate of 4.5%. This aims to control government borrowing and maintain financial stability.

Answer: D) Marginal Cost of Funds-based Lending Rate (MCLR)

MCLR is the minimum lending rate set by banks, factoring in their cost of funds and statutory requirements. Banks adjust MCLR-linked loans to manage profitability amid changing interest rates.

Answer: C) Modest returns compared to traditional financing

Although green bonds help finance eco-friendly projects, their returns are often lower than traditional financial instruments, prompting India to reconsider its issuance strategy.

Answer: B) To reduce case backlog

The Supreme Court allowed the appointment of retired judges as ad-hoc judges under Article 224(A) to address the backlog of over 62 lakh pending cases in High Courts.

Answer: B) Inefficiencies and ideological opposition in US-AID

Trump’s administration cited inefficiencies and ideological issues in US-AID as reasons for halting foreign aid. This move disrupted global health, education, and humanitarian projects.

Answer: C) Increase in inflation risks

A lower repo rate reduces borrowing costs, boosting economic activity. However, it may also lead to inflationary pressures if excess liquidity drives up demand.

Answer: C) If it is outside municipal limits and meets population criteria

Rural agricultural land is tax-exempt if it is beyond a certain distance from municipal limits and located in an area with a low population density. Urban agricultural land, however, is subject to capital gains tax.

Answer: A) 0.25% – To boost investment and credit flow

The RBI reduced the repo rate by 0.25% to enhance liquidity in the banking system, encourage lending, and support economic growth. Lower repo rates make loans cheaper for businesses and individuals, thus boosting investment.

Answer: B) To ensure banks maintain adequate liquid assets during financial stress

The LCR rule requires banks to maintain a buffer of highly liquid assets to survive short-term financial stress situations. It ensures that banks can handle sudden cash outflows without affecting stability.

Answer: C) It encourages borrowing and investment

A lower repo rate reduces the cost of borrowing for businesses and individuals, leading to increased credit flow, higher investments, and economic growth.

Answer: B) (High-Quality Liquid Assets / Total Net Cash Outflows) × 100

The LCR ensures banks have sufficient high-quality liquid assets to meet their short-term financial obligations. It is calculated by dividing liquid assets by net cash outflows over 30 days.

Answer: B) Probability of Default, Loss Given Default, Exposure at Default

The Expected Credit Loss (ECL) is calculated based on three factors: Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). It helps banks estimate potential losses on loans.

Answer: B) Allowed retail investors to participate in government securities

The RBI has opened the NDS-OM platform to retail investors, allowing them to directly trade government securities, making bond investments more accessible to individuals.

Answer: B) Simplify tax laws and reduce litigation

The new Income Tax Bill aims to make tax compliance easier, reduce ambiguities, and minimize disputes by simplifying tax laws.

Answer: B) Production of biotech-based sustainable products

The BioE3 policy promotes biomanufacturing in various sectors such as healthcare, agriculture, and industrial products to enhance sustainability and innovation.

Answer: B) By getting priority access to central government funds

States that adopt biomanufacturing early under the BioE3 initiative can benefit from central government incentives, funding, and support for infrastructure development.

Answer: A) To increase the annual financial support to farmers

The Department-Related Parliamentary Standing Committee (DRPSC) recommended increasing the financial assistance under PM-Kisan to provide better support to farmers.

Answer: B) Preserve and digitize India's manuscript heritage

The National Mission for Manuscripts (NMM), established in 2003 under the Ministry of Culture, focuses on preserving and digitizing India’s vast manuscript heritage. The government plans to make it an autonomous body with ₹500 crore funding.

Answer: B) It makes bacterial infections harder to treat

Antibiotic resistance occurs when bacteria adapt and transfer resistance genes, making infections more difficult to cure. In 2021, antibiotic-resistant bacteria caused 1.2 million deaths globally.

Answer: D) AI innovation, governance, and public welfare

India will co-chair the AI Action Summit 2025 in Paris, emphasizing AI democratization, solutions for healthcare, education, agriculture, and managing AI risks in developing nations.

Answer: C) Monetization of brownfield infrastructure while retaining ownership

NMP involves leasing public assets (e.g., roads, railways, power lines) to private players while the government retains ownership. The aim is to raise ₹6 trillion between FY22 and FY25.

Answer: A) Increased funding for nuclear research and innovation

The Budget 2025-26 allocated ₹20,000 crore for small modular nuclear reactors and ₹28,000 crore for innovation under the Department of Science & Technology (DST), aiming to boost R&D.

Answer: B) Revenue shortfalls due to reduced direct transfers and GST

Urban Local Bodies (ULBs) struggle with reduced financial support due to GST implementation and lower direct transfers, affecting their ability to fund urban development.

Answer: C) Enhancing efficiency, reducing input costs, and improving yields

Drones help in pesticide spraying, soil analysis, and real-time data collection, improving productivity and addressing climate challenges in Indian agriculture.

Answer: C) It imposes stricter regulations, potentially pushing borrowers to illegal lenders

Stricter rules on MFIs could drive borrowers towards unregulated moneylenders, increasing financial distress. Similar regulations in Andhra Pradesh and Assam led to MFI failures.

Answer: B) Simplification and streamlining of tax laws

The upcoming Income Tax Bill aims to simplify tax laws, reduce litigation, and ensure a more transparent tax structure following previous reforms like faceless assessment and the ‘Vivad se Vishwas’ scheme.

Answer: C) They improve nutrient uptake and reduce environmental losses

Nano-coated fertilizers release nutrients slowly, reducing wastage and improving soil health, making them more efficient than traditional fertilizers.

Answer: B) Rising number of lawmakers with criminal cases

The Supreme Court is concerned about the increasing number of Indian MPs with criminal records. Data presented showed that 46% of Lok Sabha MPs have pending criminal cases, with 170 facing serious charges (5+ years imprisonment). This threatens democratic integrity and calls for stricter electoral reforms.

Answer: C) A $100 billion investment over 15 years

The India-EFTA trade deal promises $100 billion investment from EFTA nations (Iceland, Liechtenstein, Norway, and Switzerland) over 15 years, creating millions of jobs and facilitating industrial growth in India.

Answer: B) It insists on a two-state solution before normalizing ties with Israel

Saudi Arabia’s Crown Prince MbS opposed Trump’s proposal to relocate Gaza’s population, demanding a two-state solution before establishing diplomatic ties with Israel. This stance significantly impacts West Asian geopolitics.

Answer: C) To stabilize prices of perishable crops like onions and tomatoes

MIS is designed to prevent drastic price drops of perishable crops (e.g., tomatoes, onions, and potatoes). It is activated when market prices fall by at least 10% compared to the previous season.

Answer: B) Borrowers have the right to participate in auctions

RBI’s new guidelines mandate that borrowers must be allowed to participate in gold auctions. The reserve price is set at a minimum of 85% of the 30-day average price of 22-carat gold.

Answer: C) A financial contract that settles currency fluctuations in cash without exchanging actual currency

NDFs are financial contracts used to hedge against currency fluctuations in restricted markets. They are settled in cash, usually in USD, without an actual exchange of currencies.

Answer: B) Renaming disinvestment under "miscellaneous capital receipts"

Instead of explicitly mentioning disinvestment, the government grouped it under "miscellaneous capital receipts" in Budget 2025-26. This change reflects a policy shift, as privatization targets have been consistently missed.

Answer: C) To ease trade tensions and negotiate better market access

India reduced tariffs on U.S. goods, including pecan nuts, to improve trade relations. Negotiations include restoring India’s GSP benefits and discussing a potential Free Trade Agreement.

Answer: C) By balancing ties with developed nations and the Global South

India is positioning itself as a leader in the Global South by maintaining strong diplomatic relations with developed nations while countering China’s influence in emerging economies.

Answer: C) Enhanced cooperation in missile systems and naval propulsion

The DPI aims to strengthen UK-India defense ties through agreements on missile systems, joint manufacturing, and naval propulsion technology, boosting India’s defense capabilities.

Answer: C) Expansion of only technical education

NITI Aayog recommends a multidisciplinary education approach rather than focusing solely on technical education. Other recommendations include fee autonomy, a National Research Policy, an infrastructure finance agency, and CSR funding.

Answer: C) 500 GW

India has set a target of 500 GW of renewable energy capacity by 2030, including solar, wind, and hydro power, as part of its commitment to reducing carbon emissions.

Answer: D) SEBI allowed companies to artificially inflate stock prices.

SEBI's actions were aimed at preventing artificial stock inflation, ensuring fair trading, and protecting retail investors from market manipulation.

Answer: C) 20%

India aims to achieve 20% ethanol blending in fuel by 2025 as part of its strategy to reduce dependence on fossil fuels and lower carbon emissions.

Answer: C) Russia

Russia has offered local production of Su-57 fifth-generation fighter jets to India, which aligns with the "Make in India" initiative for defense technology.

Answer: C) Global carbon credit trading under Article 6.2

COP29 is focusing on negotiations around carbon credit trading under Article 6.2 of the Paris Agreement, which allows countries to trade carbon reductions to meet their emission targets.

Answer: C) ₹15.48 trillion

India allocated ₹15.48 trillion for capital expenditure in Budget 2025-26, focusing on infrastructure, manufacturing, and investment-driven growth.

Answer: A) Train FPOs for global agricultural trade

NABARD’s Export Pathshala is designed to train Farmer Producer Organizations (FPOs) in export documentation, quality standards, and international trade practices to enhance their global market presence.

Answer: B) 4.4% of GDP

The government has set a fiscal deficit target of 4.4% of GDP for 2025-26, indicating efforts to maintain financial discipline while boosting economic growth.

Answer: A) Strengthen agricultural productivity in 100 lagging districts

The Dhan Dhanya Krishi Yojana focuses on improving agricultural productivity in 100 districts with lower farming output, ensuring food security and economic growth.

Answer: B) Enhancing trade and transport connectivity

IMEC is a collaborative effort between India, the Middle East, and Europe to improve connectivity and trade infrastructure, as discussed during PM Modi’s visit to France.

Answer: B) To track bird population trends for conservation and urban planning

The project is designed to map bird distribution in Hyderabad, helping policymakers and conservationists plan land use and wildlife protection efforts.

Answer: A) By implementing AI-based spam detection

TRAI has introduced AI-based spam detection systems and stricter penalties to curb fraudulent calls and messages, enhancing consumer protection.

Answer: B) Due to IT system-related compliance issues

RBI had earlier imposed restrictions on Kotak Mahindra Bank due to deficiencies in IT management. After compliance verification, the restrictions were lifted, allowing the bank to resume digital customer onboarding and credit card issuance.

Answer: B) Stagnant incomes and job insecurity

While inflation has declined, the survey reveals that people remain concerned about their job security and income stability, affecting consumer confidence.

Answer: A) Introduction of a ‘Tax Year’ concept

The new tax bill aims to modernize tax laws by simplifying them, including introducing a ‘Tax Year’ for better financial planning.

Answer: B) Higher food and essential goods price inflation in rural areas

Despite overall declining inflation, rural inflation remains high due to rising food prices and essential goods costs, whereas urban inflation is below the RBI’s 4% target.

Answer: B) To promote fiscal transparency and better financial governance

The NCAER report suggests that fiscal councils can enhance institutional capacity, evaluate government budgets, and ensure financial discipline at the state level.

Answer: A) It does not measure public service provision quality

While the FHI assesses states' financial health, it does not reflect their ability to deliver essential public services like healthcare and education.

Answer: A) Inconsistent GSDP estimates across states

Different states use different methodologies for estimating GSDP, leading to data inconsistencies, which complicates fiscal assessments.

Answer: C) China

China is building the largest hydroelectric dam on the Yarlung Zangbo River in Tibet, raising concerns for India and Bangladesh over water security and environmental impacts. The project lacks a water-sharing treaty, which could disrupt downstream water flow.

Answer: C) Legitimization of Russia’s annexation of Crimea

Trump’s discussion with Putin suggested a possible shift in U.S. policy, potentially recognizing Russia’s control over Crimea and limiting Ukraine’s NATO aspirations, which could weaken Ukraine’s position.

Answer: C) 12 months

The U.S. has reinstated pre-COVID visa renewal rules, reducing the eligibility period for interview waivers from 48 months to 12 months, leading to increased wait times.

Answer: C) Article 356

President’s Rule was imposed in Manipur after CM N. Biren Singh resigned due to ethnic violence. Article 356 allows central government intervention when a state government cannot function properly.

Answer: D) 6th

India improved its short-term ranking from 7th to 49th but remains the 6th most affected country in the long-term Climate Risk Index (1993-2022) due to climate disasters.

Answer: B) Increase in External Commercial Borrowing (ECB) limits

NBFCs requested the RBI to increase the automatic ECB limit to $750 million to ease foreign funding access amid declining bank loans.

Answer: B) Elimination of ‘previous year’ and ‘assessment year’

The new bill aims to simplify tax laws by removing the concepts of 'previous year' and 'assessment year' to improve clarity and compliance.

Answer: C) $12-14 billion

The RBI intervened in the Forex market by selling $12-14 billion to stabilize the rupee amid liquidity shortages.

Answer: A) The ability to block misleading financial messages

SEBI wants more authority to remove misleading financial content from platforms like WhatsApp and Telegram, but faces resistance from messaging apps due to privacy laws.

Answer: C) Shifting towards domestic-led growth

Due to rising protectionism and trade restrictions, India is focusing on domestic economic growth, increasing tariffs, and promoting manufacturing under PLI schemes.

Answer: C) $500 billion by 2030

The "Mission 500" initiative aims to expand India-U.S. bilateral trade to $500 billion by 2030. This includes increasing energy imports from the U.S. and resolving tariff disputes.

Answer: C) High cost and technology transfer issues

While the F-35 would enhance India’s defense capabilities, concerns include high costs, limited technology transfer, and potential impacts on India's defense relationship with Russia.

Answer: B) Glacial lake outburst flood (GLOF)

A GLOF caused by rapid melting of a glacial lake led to the destruction of the Teesta-3 dam in Sikkim, resulting in over 100 deaths and large-scale displacement.

Answer: B) Earth's axial tilt

The axial tilt (approximately 23.5°) causes seasonal variations as different parts of Earth receive varying amounts of sunlight throughout the year.

Answer: B) Financial mismanagement concerns

RBI took control of the New India Cooperative Bank due to concerns over financial mismanagement and potential misuse of funds. A new administrator was appointed to oversee operations.

Answer: C) Quashing of showcause notices by Delhi HC

The NFRA filed a petition after the Delhi High Court quashed 11 showcause notices due to procedural lapses. The government is considering restructuring NFRA to enhance audit oversight.

Answer: B) Protectionism and deficit spending

MAGAnomics, associated with Donald Trump’s economic policies, includes protectionist trade measures, deficit spending, deregulation, and an emphasis on industrial policy.

Answer: B) RBI's forex market interventions

India’s forex reserves rose by $7.6 billion due to an increase in foreign currency assets, gold reserves, and strategic interventions by the RBI in the forex market.

Answer: A) Enhance biosecurity in aquaculture

The symposium focused on improving biosecurity measures, strengthening disease surveillance, and promoting sustainability in India’s aquaculture sector.

Answer: B) 4.3%

India’s consumer price inflation fell to 4.3% in January, close to the RBI’s target of 4%. This was aided by lower food inflation and potential government policy interventions.

Answer: A) TRUST initiative for AI and quantum computing </br>Explanation: The TRUST initiative was launched to strengthen Indo-U.S. cooperation in emerging technologies such as AI, semiconductors, and quantum computing.

Answer: C) Deforestation and loss of sacred groves </br>Explanation: Activists have opposed the project due to the felling of 22,000 trees, potential ecological damage, and the loss of sacred groves, which hold cultural and environmental significance.

Answer: B) COMPACT framework </br>Explanation: The COMPACT framework was introduced to enhance military cooperation between India and the U.S., focusing on defense technology, intelligence sharing, and Indo-Pacific security.

Answer: C) Political interference and coal mafias </br>Explanation: Despite a 2014 NGT ban and a 2019 Supreme Court ruling, rat hole mining continues due to illegal operations supported by coal mafias and political involvement.

Answer: A) Reduced poaching through AI-powered surveillance </br>Explanation: The TrailGuard AI system uses AI-powered cameras to detect poachers, leading to 96 arrests and 86 gun confiscations in 10 months, improving wildlife protection.

Answer: B) Pandemic-induced preference for stability </br>Explanation: Many workers have chosen stability over migration post-pandemic, as urban costs rise and rural welfare schemes improve, reducing the need for migration.

Answer: B) Difficulty in competing with UPI’s real-time transactions </br>Explanation: Since UPI already offers seamless real-time transactions, CBDC adoption faces challenges in providing a competitive advantage to fintech companies.

Answer: B) High NPAs and operational inefficiencies </br>Explanation: The government aims to merge RRBs to improve efficiency, reduce high NPAs, and make them financially viable under the “One State, One RRB” policy.

Answer: A) The need for more relaxed compliance for acquisitions </br>Explanation: SEBI’s rejection of Danny Gaekwad’s bid due to procedural issues sparked debates on whether regulations should be more flexible to encourage competitive acquisitions.

Answer: B) ₹122 crore fraud case </br>Explanation: RBI froze withdrawals for six months due to fraud-related financial mismanagement, affecting over 130,000 depositors and highlighting governance failures in co-operative banks.

Answer: C) Punjab

In 2025, Punjab led with 38% of deported Indians, followed by Haryana (33%) and Gujarat (22%). The high numbers are linked to illegal migration trends and human trafficking networks.

Answer: B) The Chief Justice of India (CJI) is excluded from the selection process

The new law replaces the SC-mandated selection panel and removes the CJI, raising concerns about potential executive influence over the appointment of the Chief Election Commissioner (CEC).

Answer: C) Overwhelming land record systems with fake requests

The cyberattack generated 6.2 lakh requests in 2 hours, crashing the Encumbrance Certificate (EC) system, potentially for financial or political gains.

Answer: B) It threatens the Aravali ecosystem and violates conservation laws

The project spans 3,858 hectares and could lead to groundwater depletion and destruction of fragile ecosystems. Conservationists suggest declaring Aravalis a national park instead.

Answer: B) Public consultation is required before regulatory amendments

SEBI now mandates public participation in the amendment process to enhance transparency, investor confidence, and compliance.

Answer: B) It lowers borrowing costs for floating-rate loans

A repo rate cut makes borrowing cheaper for floating-rate loan customers, reducing EMIs, especially for homebuyers.

Answer: B) Depreciation of the rupee and liquidity tightening

RBI sold dollars to control rupee depreciation, leading to a ₹1.2 trillion liquidity deficit, affecting banks’ lending capacity.

Answer: C) Employment in manufacturing has stagnated

Despite government schemes, manufacturing employment saw only a marginal rise from 10.4% (1980-81) to 10.6% (2022-23), lagging behind services.

Answer: B) To ensure remunerative prices for farmers and stabilize essential goods prices

The scheme helps farmers get fair prices for their produce by ensuring effective procurement operations and market stability.

Answer: B) Their cognitive abilities decline over time, similar to human aging

AI models like ChatGPT and Gemini scored below 26 on MoCA tests, showing impairments in memory, attention, and reasoning, raising concerns about their long-term reliability.

Answer: B) Fiscal policies and rural demand

India's economic growth in the second half of FY25 was primarily driven by strong fiscal policies and increasing rural demand, as highlighted in the RBI Bulletin.

Answer: B) To help investors assess risk-adjusted returns

SEBI introduced daily disclosure of the Information Ratio (IR) to provide transparency and assist DIY investors in evaluating the risk-adjusted returns of mutual funds.

Answer: B) Global economic instability and energy price fluctuations

Despite the easing of food prices, factors like global economic instability, fluctuating energy prices, and weather-related disruptions pose risks to inflation.

Answer: C) Higher-than-expected mortality rates (40-50%)

The African Cheetah Translocation Project has faced ethical concerns due to an unexpectedly high mortality rate among the introduced cheetahs, leading experts to recommend participatory conservation instead of forced relocation.

Answer: B) Ethnic violence and governance failure

Due to prolonged ethnic violence and governance failure, Manipur has been placed under President’s Rule, as trust in state institutions has significantly declined.

Answer: B) Integration with GIS and QR code tracking

The SHC scheme was enhanced with GIS integration, geo-tagging, QR code tracking, and mobile app-based graphical data visualization to improve soil health monitoring.

Answer: B) Iron Age settlements in Tamil Nadu date back 5300 years

Recent discoveries suggest that Tamil Nadu's Iron Age dates back 5300 years, challenging previous theories and emphasizing its role in early metallurgy.

Answer: B) Rapid glacial melting due to climate change

The snow line in the Everest region has risen by 490 feet in under two months, indicating a significant impact of climate change, which could affect glaciers and water resources.

Answer: A) To promote domestic industries and reduce dependency on imports

Trump announced new tariffs as part of a trade policy to boost domestic industries and reduce reliance on foreign imports, impacting sectors like pharmaceuticals and semiconductors.

Answer: B) Increased global investor confidence in Indian bonds

India's inclusion in the Bloomberg Emerging Markets Index has attracted global investors, leading to increased foreign portfolio investments (FPI) in India’s debt market.

Answer: B) To inject durable liquidity into the banking system

RBI conducted OMO auctions due to a prolonged liquidity deficit in the banking system for nine consecutive weeks. The central bank aims to provide long-term liquidity through bond purchases.

Answer: D) ₹5 lakh

RBI has permitted depositors of the troubled New India Co-op Bank to withdraw up to ₹5 lakh for medical or personal emergencies, aligning with the deposit insurance limit.

Answer: C) To simplify and speed up the fundraising process

SEBI's proposal aims to provide easier and quicker access to capital markets for existing listed REITs and InvITs, improving liquidity and investor participation.

Answer: A) FPO is issued by a company already listed on the stock exchange, whereas IPO is for new listings

FPO allows an already listed company to issue additional shares to raise capital, while an IPO is the first time a company offers its shares to the public.

Answer: B) India relies on consumption, whereas China focuses on investment

India’s GDP growth is primarily consumption-driven (~60.3%), whereas China has historically prioritized high investment (~41.3% of GDP), leading to faster per capita income growth.

Answer: D) Fiscal policy changes

Fiscal policy changes are managed by the government, not RBI. RBI primarily uses OMOs, CRR adjustments, VRR auctions, and forex swaps to control liquidity in the banking system.

Answer: C) To reduce errors in quantum computing

Microsoft introduced the Majorana 1 chip to enhance quantum computing by reducing computational errors, potentially impacting AI, cryptography, and medical research.

Answer: C) To provide internship opportunities for youth across various sectors

PMIS Phase-2 expands to offer 115,000 internships across 25 sectors, collaborating with companies like ONGC, HDFC, and Reliance to upskill young professionals.

Answer: B) Judges have separate accountability mechanisms under the judiciary

The Supreme Court stayed the order, arguing that the Lokpal Act was meant for public officials, while judicial accountability falls under the judiciary’s internal oversight.

Answer: C) Higher tariff barriers compared to competitors

India’s average tariff on electronics is 9%, whereas the U.S. imposes only 1%, making it difficult for Indian electronics manufacturers to compete globally.

Answer: B) Chakkan Da Bagh, Poonch

The flag meeting took place at Chakkan Da Bagh in Poonch amid tensions along the Line of Control (LoC), but no joint statement was issued due to ongoing ceasefire violations.

Answer: C) BIMSTEC

India favors BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) over SAARC due to Pakistan’s role in blocking progress within SAARC.

Answer: C) National Critical Mineral Mission (NCMM)

The Indian government has launched the ₹16,300 crore National Critical Mineral Mission (NCMM) to boost domestic mining and reduce dependency on imports of key minerals like lithium, cobalt, and rare earth elements.

Answer: C) $500 billion

During PM Modi’s U.S. visit, both countries emphasized increasing trade partnerships and set a target of achieving $500 billion in bilateral trade by 2030.

Answer: B) Set-top box interoperability

The government introduced interoperability for set-top boxes (STBs) to allow consumers to switch providers without changing hardware, reducing costs and increasing competition in the DTH sector.

Answer: C) 5%

RBI’s new guidelines mandate a 5% provisioning requirement for project financing during the construction phase, reducing after completion. Industry concerns include rigid moratorium periods and Net Present Value (NPV) conditions.

Answer: C) May 2, 2025

The RBI has introduced guidelines on bond forwards, effective from May 2, 2025, to help long-term investors manage interest rate risks and improve the interest rate derivative market.

Answer: D) Bihar

The Periodic Labour Force Survey (PLFS) report highlighted rising unemployment in states like J&K, Assam, Bihar, MP, Haryana, and Delhi, while states like Kerala, Chhattisgarh, UP, Maharashtra, and Gujarat showed improvement.

Answer: C) Food prices, irrigation, and fertilizer availability

While monsoon rainfall was traditionally considered the key factor, foodgrain production is now influenced more by food prices, electricity, fertilizer supply, and irrigation infrastructure.

Answer: C) Job creation and reduced food transportation costs

Urban farming, through hydroponics, vertical farming, and aquaponics, helps in job creation, lowers food transportation costs, and promotes environmental sustainability.

Answer: B) To stabilize the rupee and inject liquidity into banks

The RBI’s dollar-rupee swap auction aims to provide long-term liquidity to banks, counter rupee depreciation, and manage inflation by controlling excess money supply.

Answer: D) Bima Raksha

The Bima Trinity includes Bima Sugam (digital insurance platform), Bima Vistaar (rural insurance), and Bima Vahak (women-led insurance distribution). "Bima Raksha" is not part of this initiative.

Answer: A) Increased risk of fraud and non-compliance

Expanding the QIB definition and removing investor caps could lead to verification issues, onboarding financially weak individuals, and compliance concerns under the Companies Act, 2013.

Answer: B) Gujarat

Gujarat has the lowest debt-to-GSDP ratio (15%), indicating better fiscal management. States like Rajasthan and West Bengal have significantly higher debt burdens.

Answer: C) Quantum Computing

Majorana 1 is expected to enable fault-tolerant quantum computing, revolutionizing fields such as AI, cryptography, and scientific research. However, scientists urge further validation of its capabilities.

Answer: C) High inflation and central banks increasing gold reserves

Gold prices surged due to inflation fears, economic uncertainty, and massive gold purchases by central banks (especially China and India).

Answer: B) Fear of Hindi imposition affecting regional language prominence

Tamil Nadu has historically opposed Hindi imposition and favors a two-language policy (Tamil and English) rather than adopting NEP 2020’s three-language model.

Answer: C) Declining CASA deposits and margin pressure

Banks are experiencing a decline in low-cost CASA (Current Account Savings Account) deposits, which affects profitability. Additionally, RBI’s potential rate cuts may further reduce banks’ net interest margins.

Answer: B) To counter China’s growing naval presence

India is developing diesel-electric and nuclear-powered submarines under Projects 75 and 76 to strengthen naval defense against China’s expanding influence in the Indo-Pacific region.

Answer: B) The use of an unvalidated AI tool (DeepCXR) over globally recognized models

Despite having AI-based TB detection tools like qXR & Genki, India’s government has chosen an unvalidated AI tool (DeepCXR), raising concerns over transparency and efficiency in TB eradication efforts.

Answer: C) U.S. gaining access to Ukraine’s natural resources

The agreement allows the U.S. access to Ukraine’s natural resources in exchange for security guarantees and wartime support. Former President Trump has insisted on mineral access for any U.S. aid.

Answer: B) Friedrich Merz

Friedrich Merz, a leader of the CDU, is expected to shift Germany’s policies towards conservative governance, focusing on tax cuts, stricter fiscal discipline, and tougher immigration policies.

Answer: B) Overreliance on technology giants

The U.S. stock market exhibits bubble-like trends due to high valuations and dependence on tech giants. While AI investments are growing, their long-term sustainability is uncertain.

Answer: D) Social Security Agreement (SSA)

India prioritizes the SSA, which deals with social security benefits for Indian professionals in the U.K., while the U.K. is focusing more on the Bilateral Investment Treaty (BIT).

Answer: C) Bureaucratic resistance and slow information commissions

The RTI Act has weakened due to bureaucratic resistance, delayed responses by information commissions, weak penalties, and new digital laws restricting access to public data.

Answer: B) They disrupt essential services and democratic rights

India imposed 84 internet shutdowns in 2024, mainly during protests, communal violence, and exams. Critics argue they excessively restrict communication and fundamental rights.

Answer: C) 2026

India’s carbon trading market will launch in phases, with emission intensity targets set by February 2025 and trading in carbon credits beginning by October 2026.

Answer: C) NBFCs may shift to high-yield loans or raise interest rates

The RBI’s proposal to ban prepayment penalties on small business and retail loans will increase competition, forcing NBFCs to adapt by shifting loan strategies or raising interest rates.

Answer: B) The e-Rupee wallet is launched by CRED & MobiKwik

Fintech companies CRED and MobiKwik, in partnership with Yes Bank, have introduced e-Rupee wallets to boost digital rupee adoption, with 5 million users and 420,000 merchants onboard.

Answer: B) India, South Korea, and Thailand

The S&P Global report highlights India, South Korea, and Thailand as high-risk countries for U.S. trade retaliation under Trump, mainly through tariff increases.

Answer: B) Tariff reductions on cars, wines, and spiritsExplanation: The EU seeks tariff reductions from India on high-value exports like cars, wines, and spirits, while India is negotiating better access for its pharmaceutical, IT services, and agricultural products.

Answer: B) Government-imposed restrictions during protests and communal violenceExplanation: India has frequently used internet shutdowns to control law and order, particularly during protests and communal tensions. However, the Supreme Court has emphasized that such shutdowns must meet necessity and proportionality tests.

Answer: B) High energy consumption from data centersExplanation: AI requires massive computational power, leading to high energy consumption in data centers, contributing to environmental concerns. Sustainable solutions include switching to renewable energy and optimizing hardware efficiency.

Answer: A) They regulate protein production and impact evolutionary stabilityExplanation: UCEs are DNA segments that remain unchanged for millions of years. They act as "poison exons," playing a critical role in regulating protein production and maintaining genetic stability.

Answer: B) To comply with SEBI’s 25% minimum public shareholding (MPS) normExplanation: The government aims to disinvest up to 20% in certain PSBs to meet SEBI's requirement that at least 25% of a listed company’s shares be held by the public by August 2026.

Answer: B) Declining credit growth and slower bank lending to NBFCsExplanation: RBI initially increased risk weights on NBFC loans to reduce financial risks, but it later reversed the decision as it negatively impacted credit growth and funding to NBFCs.

Answer: B) Political interference and weak internal controlsExplanation: Many UCBs suffer from governance issues, including financial frauds and weak internal controls, despite RBI’s regulatory efforts. Political interference and outdated technology also contribute to these problems.

Answer: C) To reduce volatility and improve risk managementExplanation: SEBI introduced new restrictions, including position limits and stricter eligibility criteria, to curb excessive speculation and align derivatives trading with stock fundamentals.

Answer: B) To comply with RBI’s listing requirement for NBFCsExplanation: RBI has mandated large NBFCs to list on the stock exchange to improve transparency and governance. Tata Capital's IPO will strengthen its capital base and market position.

Answer: C) Increased dollar demand from importers and RBI’s offshore settlementsExplanation: The Indian Rupee has depreciated due to increased dollar demand from importers and limited RBI intervention in offshore forward contract settlements.

Answer: B) Ukraine to supply rare earth minerals to the U.S.

One of the critical aspects of the economic deal between the U.S. and Ukraine is granting the U.S. access to Ukraine’s rare earth minerals, essential for defense, electric vehicles, and semiconductors. This strengthens economic and defense ties between the two nations.

Answer: A) It marks the EU’s largest trade delegation to India

The EU, led by Ursula von der Leyen, has sent its largest-ever delegation to India, signaling a strategic diplomatic engagement on trade, technology, and global political matters, while also addressing India’s stance on Ukraine.

Answer: A) A tax on carbon-intensive imports

CBAM is a policy by the EU that imposes carbon pricing on imports of emissions-intensive goods, aiming to prevent carbon leakage while ensuring environmental accountability from trade partners.

Answer: C) It could benefit Russian oligarchs

Trump’s high-value ‘Gold Card’ visa targets wealthy individuals, potentially benefiting Russian oligarchs and other affluent foreign nationals, raising concerns about national security and ethics in immigration policy.

Answer: A) Benefits are outdated and not inflation-adjusted

Maternity benefits under PMMVY remain at outdated levels, failing to account for inflation, with many women receiving lower-than-expected financial support due to administrative inefficiencies.

Answer: C) Reduced crop yields due to nitrogen dioxide emissions

Coal-fired power plants release nitrogen dioxide (NO₂), which damages crops and reduces agricultural yields, particularly in states like West Bengal and Madhya Pradesh.

Answer: C) To increase liquidity and ease credit flow

RBI reversed its earlier decision to increase risk weights on bank loans to NBFCs, allowing for more credit availability, particularly benefiting microfinance and small-ticket lending sectors.

Answer: B) Strengthening technology and life sciences investments

UK-India trade agreements focus on sectors like technology, life sciences, and insurance, with India increasing FDI limits in certain areas and UK firms expanding their investments in India.

Answer: C) It depletes water resources and causes pollution

While ethanol blending is promoted for sustainability, environmental concerns include excessive water consumption, pollution from ethanol production, and protests over regulatory inaction.

Answer: C) Improved crop yield by 40% while reducing water and fertilizer use

Microsoft’s AI-driven farming tools have improved productivity while optimizing fertilizer and water usage, demonstrating significant potential for sustainable agricultural practices in India.

Answer: A) Due to increasing asset stress in NBFCs and MFIs

Banks are limiting their exposure to only high-rated NBFCs due to mounting asset stress in the sector, especially in microfinance institutions, leading to high-risk aversion.

Answer: B) To generate ₹350 billion for central government use

The Union Government aims to reduce the tax revenue allocated to states, which could generate approximately ₹350 billion for central expenditure, though it may face political opposition.

Answer: A) Reduction in Lok Sabha seats due to lower population growth

Southern states fear they will lose Lok Sabha seats in the 2026 delimitation as the process is based on population, which has grown at a slower rate in these states compared to the north.

Answer: E) All of the above

The IMF believes a lower fiscal deficit will improve financial stability, attract investment, and align India with global fiscal discipline norms while reducing debt-related risks.

Answer: A) To lower debt-to-GDP ratio to 50% by FY31

The government aims to reduce the debt-to-GDP ratio from 57.1% in FY25 to 50% by FY31 through stable, long-term domestic borrowing.

Answer: B) Concerns over human rights and freedom of speech in India

The EU acknowledges India as a strategic partner but has raised concerns over human rights, freedom of speech, and minority rights, leading to diplomatic challenges.

Answer: C) The EU is likely to impose retaliatory tariffs

In response to Trump’s proposed tariffs on EU imports, the European Union has warned of retaliatory measures, potentially escalating trade tensions.

Answer: A) Offers green card privileges for $5 million

Trump’s ‘Gold Card’ plan allows wealthy investors and elite graduates to gain green card benefits in exchange for a $5 million investment, replacing the EB-5 visa program.

Answer: A) Due to rising inflation affecting savings returns

Workers are demanding a higher interest rate on their PF accounts (currently 8.25%) as inflation erodes the real value of savings.

Answer: A) Russia considers them permanently part of its territory

Russia refuses to negotiate on Crimea (2014) and the regions annexed in 2022, declaring them an inseparable part of its territory, leading to continued tensions with Ukraine and the West.