APPSC Group-1 2019 Economy Previous Year Questions

Ans: (1) Brundtland Report (1987) by World Commission (as per APPSC official final key)

The most widely used definition of sustainable development comes from the Brundtland Report, titled Our Common Future (1987), of the World Commission on Environment and Development chaired by Norwegian PM Gro Harlem Brundtland: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Note:

• Earth Summit (Rio, 1992) adopted Agenda 21.
• UN Sustainable Development Goals: 17 goals for 2015–2030.

Ans: (2) Equality, inclusive growth (as per APPSC official final key)

Sustainable development rests on three pillars: economic growth, social equity and environmental protection. Its basic social goal, per the key, is equality and inclusive growth: development that reaches all sections, reduces poverty and inequality, and is shared fairly between present and future generations.

Note:

• SDG 10: reduced inequalities; SDG 1: no poverty.
• India’s 11th Plan theme was ‘faster and more inclusive growth’.

Ans: (3) Kuznets Curve (as per APPSC official final key)

The Environmental Kuznets Curve shows an inverted-U relationship: in early stages of growth, environmental degradation rises with income; after a certain income level it falls as societies demand and can pay for cleaner environments. It is adapted from Simon Kuznets’ original curve on income inequality (1955).

Note:

• Laffer curve: tax rate vs tax revenue.
• Lorenz curve: income distribution (Gini coefficient); Phillips curve: inflation vs unemployment.

Ans: (2) 119 (as per APPSC official final key)

The UNDP’s Human Development Report 2010 (20th anniversary edition) introduced a new method (geometric mean, new indicators) and ranked 169 countries. India was ranked 119.

The HDI measures three dimensions: a long and healthy life (life expectancy), knowledge (years of schooling) and a decent standard of living (GNI per capita).

Note:

• The HDI was devised by Mahbub ul Haq and Amartya Sen (first report 1990).
• India ranked 130 of 193 in the HDR 2025 (2023 data).

Ans: (4) Co-operative Federalism (as per APPSC official final key)

NITI Aayog (National Institution for Transforming India) replaced the Planning Commission on 1 January 2015. Unlike the old top-down model, it follows cooperative federalism, with states as equal partners through its Governing Council of all Chief Ministers. It also promotes competitive federalism through state rankings.

Note:

• Chairperson: Prime Minister.
• It is an executive body set up by a Cabinet resolution, not a statutory body.

Ans: (3) Fifth Five Year Plan (as per APPSC official final key)

Early plans assumed that rapid growth would automatically create jobs. When unemployment kept rising, the Fifth Five Year Plan (1974–79), with its aim of “Garibi Hatao” (removal of poverty), showed serious concern for employment and poverty, and launched the Minimum Needs Programme. The Sixth Plan then started IRDP and NREP.

Note:

• Fifth Plan was prepared by D.P. Dhar; ended a year early in 1978 by the Janata government.
• Food for Work Programme: 1977.

Ans: (1) About 60% of agricultural lands have irrigational facilities. (as per APPSC official final key)

India’s irrigation coverage is less than half of its agricultural land: only about half of the net sown area is irrigated, and the rest is rain-fed. So the statement that about 60% of land is irrigated is incorrect.

The High Yielding Varieties Programme (1966) of the Green Revolution focused on a few crops – mainly wheat and rice, along with maize, jowar and bajra – and led to intensive cultivation with fertilisers, irrigation and multiple cropping.

Note:

• M.S. Swaminathan is called the father of India’s Green Revolution; Norman Borlaug developed HYV wheat.
• Punjab has the highest share of irrigated area.

Ans: (3) National Mission for Sustainable Agriculture (as per APPSC official final key)

The National Mission for Sustainable Agriculture (NMSA) is one of the eight missions under the National Action Plan on Climate Change (2008). It aims to make Indian agriculture more productive, sustainable and climate-resilient through soil health, water use efficiency and integrated farming. Per the key, it was started in 2011–12 (it became operational in 2014–15).

Note:

• NFSM (2007) targets higher rice, wheat and pulses output.
• RKVY started in 2007.

Ans: (2) Secondary Sector (as per APPSC official final key)

The economy is divided into three sectors. The secondary sector includes manufacturing, construction, and electricity, gas and water supply, since these are industrial activities that process or supply resources. The primary sector covers agriculture and mining; the tertiary sector covers services.

Note:

• In India’s national accounts these are ‘industry’ activities.
• Public sector is an ownership category, not a production sector.

Ans: (2) Faster sustainable inclusive growth (as per APPSC official final key)

The 12th Five Year Plan (2012–17) had the theme “Faster, More Inclusive and Sustainable Growth” and a growth target of 8%. The 11th Plan’s theme was “Towards Faster and More Inclusive Growth”.

It was the last Five Year Plan; from 2017 NITI Aayog replaced plans with a 15-year vision, 7-year strategy and 3-year action agenda.

Note:

• First Plan (1951–56) was based on the Harrod-Domar model.
• Second Plan (1956–61): Mahalanobis model, heavy industry.

Ans: (2) Gross Domestic Product at Market Price = Gross National Product at Market Price – Net Income from Abroad (as per APPSC official final key)

The key national income identities are:

• GNP = GDP + Net Factor Income from Abroad (NFIA), so GDP_MP = GNP_MP − NFIA.
• NNP = GNP − Depreciation.
• Factor cost = Market price − Net indirect taxes (indirect taxes − subsidies).

So option (2) is correct.

Note:

• National income = NNP at factor cost.
• Since 2015 India uses GVA at basic prices for sector growth.

Ans: (1) Usual status unemployment (as per APPSC official final key)

The NSSO measured unemployment in three ways:

• Usual (principal) status – based on a reference period of 365 days; it shows chronic (long-term) unemployment.
• Current weekly status – reference period of one week; shows seasonal unemployment.
• Current daily status – each day of the week; the most comprehensive measure.

Note:

• The Periodic Labour Force Survey (PLFS) replaced the NSSO employment rounds in 2017–18.
• Disguised unemployment is common in agriculture.

Ans: Question deleted by APPSC (official final key; no option is treated as correct)

This question was deleted by APPSC in the official final key, so no option is scored as correct.

The NSSO 68th round (2011–12) was the last of the five-yearly employment-unemployment surveys. Under the usual status approach, it put unemployment at only about 2–3%, far below the options given; under current daily status it was about 5.6%. Because none of the figures fitted the usual-status method, the question was withdrawn.

Note:

• Usual status gives the lowest rate; daily status the highest.
• PLFS now gives quarterly urban and annual figures.

Ans: (1) 2006 and (2) 2000 (as per APPSC official final key; both options are treated as correct)

India announced its Special Economic Zone (SEZ) policy in April 2000 in the Export-Import policy, to attract investment and boost exports. It was given legal backing by the SEZ Act, 2005, which came into force with the SEZ Rules in February 2006.

So the official key accepts both 2000 and 2006.

Note:

• Asia’s first Export Processing Zone: Kandla (1965).
• Baba Kalyani Committee (2018) reviewed SEZ policy.

Ans: (1) 21·9% (as per APPSC official final key)

By the Tendulkar method, the Planning Commission estimated India’s poverty in 2011–12 at 21.9% (25.7% rural, 13.7% urban), about 27 crore people. This figure was used in India’s Millennium Development Goals report for Goal 1 (eradicate extreme poverty).

Note:

• Rangarajan Committee (2014) estimated 29.5% for 2011–12.
• NITI Aayog’s multidimensional poverty: 11.28% in 2022–23.

Ans: (4) Aajeevika (as per APPSC official final key)

Swarnajayanti Gram Swarozgar Yojana (SGSY, 1999) was a self-employment programme for rural poor through Self-Help Groups. In June 2011 it was restructured as the National Rural Livelihoods Mission (NRLM), renamed “Aajeevika”, now called DAY-NRLM (Deendayal Antyodaya Yojana).

The key gives Aajeevika as the current name.

Note:

• SGSY replaced IRDP, TRYSEM, DWCRA and others.
• DAY-NULM is the urban counterpart.

Ans: (1) Immunization (as per APPSC official final key)

Mission Indradhanush was launched on 25 December 2014 by the Ministry of Health to achieve full immunisation of children under two years and pregnant women against vaccine-preventable diseases. The seven colours of the rainbow (indradhanush) stood for seven vaccines initially. Intensified Mission Indradhanush rounds followed.

Note:

• Universal Immunisation Programme began in 1985.
• U-WIN portal records vaccinations.

Ans: (2) D-Krishi (as per APPSC official final key)

Andhra Pradesh’s D-Krishi application received the CSI-Nihilent e-Governance Award for 2017–18. It is a digital agriculture platform of the AP Agriculture Department to manage farmer data, input subsidies and advisories.

Note:

• CSI = Computer Society of India.
• AP’s e-Crop booking records crops sown on each plot.

Ans: (2) NPCI (as per APPSC official final key)

RuPay is India’s own card payment network, launched by the National Payments Corporation of India (NPCI) in 2012 (dedicated to the nation in 2014). The name combines “Rupee” and “Payment”. It reduces dependence on foreign networks like Visa and Mastercard.

Note:

• NPCI (2008) also runs UPI, IMPS, NACH, FASTag and BHIM.
• RuPay cards are issued under Jan Dhan accounts.

Ans: (4) Pradhan Mantri Fasal Bima Yojana (as per APPSC official final key)

Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, replaced earlier crop insurance schemes with the theme “One Nation – One Scheme”. Farmers pay a low premium: 2% for kharif, 1.5% for rabi and 5% for commercial/horticultural crops; the rest is shared by the Centre and states.

Note:

• It replaced NAIS and Modified NAIS.
• Weather-Based Crop Insurance Scheme runs alongside it.

Ans: Question deleted by APPSC (official final key; no option is treated as correct)

This question was deleted by APPSC in the official final key, so no option is scored as correct.

India normally runs a current account deficit because merchandise imports exceed exports. It had a current account surplus for three consecutive years, 2001–02 to 2003–04, helped by software exports and remittances. The options’ period labels (e.g. “2001-04”) were likely ambiguous, which may be why it was deleted.

Note:

• India also had a surplus in 2020–21 (about 0.9% of GDP) during COVID-19.
• Balance of payments crisis: 1991.

Ans: (3) 91, 182 and 364 days (as per APPSC official final key)

Treasury Bills are short-term money market instruments issued by the RBI on behalf of the Government of India. They are issued at a discount in three maturities: 91 days, 182 days and 364 days. The 14-day intermediate T-bills are only for state governments, and the 182-day bill was reintroduced in 2005.

Note:

• T-bills are zero-coupon securities.
• Cash Management Bills are issued for less than 91 days.

Ans: (1) Minimum Tier 1 capital ratio should be 8% (as per APPSC official final key)

Basel III norms (after the 2008 crisis) were implemented by the RBI from 2013, with stricter requirements than the global minimum. In India:

• Minimum Common Equity Tier 1 – 5.5%; minimum Tier 1 capital – 7%, not 8%.
• Minimum total capital ratio – 9% (global 8%).
• Capital conservation buffer – 2.5%, so total capital with buffer – 11.5%.

So statement (1) is incorrect.

Note:

• Basel Committee is housed at the Bank for International Settlements, Basel.
• Tier 2 capital can make up at most 2% under Indian Basel III rules.

Ans: (2) Women self-help groups (as per APPSC official final key)

The National Rural Livelihoods Mission (2011) works through women’s Self-Help Groups (SHGs). It brings at least one woman from each poor rural household into an SHG and federations, and provides revolving funds, community investment funds and bank linkage. So the borrower is the women SHG.

Note:

• Interest subvention lets SHGs borrow at 7% (3% extra for prompt repayment).
• Lakhpati Didi initiative aims for SHG women earning ₹1 lakh a year.

Ans: (4) To meet the asset needs of poor and assetless women in the informal sector (as per APPSC official final key)

The Rashtriya Mahila Kosh (RMK), the National Credit Fund for Women, was set up in 1993 under the Ministry of Women and Child Development. Its objective is to provide micro-credit to poor women in the informal sector for income generation and asset creation, through NGOs and intermediaries.

Note:

• RMK was registered under the Societies Registration Act, 1860.
• Its activities were later wound up (2023).

Ans: (3) 50 (as per APPSC official final key)

After bifurcation in 2014, Andhra Pradesh had 13 districts. According to the key, there were 50 revenue divisions in the residual state at that time. In April 2022 the state was reorganised into 26 districts, and the number of revenue divisions also increased.

Note:

• A revenue division is headed by an RDO (Revenue Divisional Officer).
• Mandals are the units below revenue divisions (about 670 in AP).

Ans: (2) State Government (as per APPSC official final key)

The Polavaram project was declared a National Project under Section 90 of the AP Reorganisation Act, 2014. In 2016, on NITI Aayog’s suggestion, the Centre allowed the State Government to execute (construct) the project, while the Centre funds 100% of the irrigation component through the Polavaram Project Authority.

Note:

• Polavaram is on the Godavari, in Eluru district.
• Right canal links Godavari water to the Krishna.

Ans: (1) Guntakal, Guntur and Vijayawada divisions (as per APPSC official final key)

The South Coast Railway zone was announced in February 2019 with headquarters at Visakhapatnam. It comprises the Guntakal, Guntur and Vijayawada divisions. The Waltair division was split: part merged into Vijayawada, and the rest formed the new Rayagada division under the East Coast Railway.

Note:

• It was a promise in the Thirteenth Schedule of the AP Reorganisation Act.
• Indian Railways has 18 zones (including SCoR).

Ans: (2) E-suvidha (as per APPSC official final key)

e-Suvidha was the project of the Andhra Pradesh government for computerisation of urban local bodies (municipalities), providing citizen services like property tax, water charges and birth/death certificates online.

e-Seva centres offered single-window government services, and APSWAN/SAPNET was the state’s satellite network.

Note:

• e-Pragati is AP’s state-wide e-governance architecture (2016).
• Mee Seva is the current citizen service platform.

Ans: (2) West Godavari (as per APPSC official final key)

West Godavari, in the Godavari delta, is known as the “rice bowl” of Andhra Pradesh. Per the key, it had the largest area under food crops (mainly paddy) in the state, thanks to canal irrigation from the Godavari (Sir Arthur Cotton barrage at Dowleswaram).

Note:

• Krishna and East Godavari are other major paddy districts.
• Rice is the main food crop of AP.