UP Trained Graduate Teachers Test 2009

Commerce MCQ Solved Paper Previous Paper  UP Trained Graduate Teachers Test 2009 , Held in Sept 2009

1. The assets which are purchased to improve profitability in the business not for the purpose of resale, are called?
(A) Intangible assets
(B) Current assets
(C) Fixed assets
(D) Wasting assets
2. As per the rule of Garner versus Murray, any loss that arises due to being insolvent of any partner should be divided among other partners in their?
(A) Profit and loss sharing ratio
(B) Capital ratio
(C) Average of both ratios
(D) None of these
3. Securities premium cannot be applied?
(A) For paying dividend to members
(B) For issuing bonus shares to members
(C) For writing off preliminary expenses of company
(D) For writing off discount on issue of debentures
4. Which method is legally accepted for redemption of preference shares?
(A) Issue of equity shares
(B) Issue of debentures
(C) Sale of fixed assets of the company
(D) Public deposits
5. A and B are partners in a firm. They admit C into partnership by giving him fourth share in future profits. The new profit sharing ratio of all the partners will be?
(A)3:2:1
(B)3:1:2
(C)3:3:2
(D) 3:3:3
6. Which of the following statements is not correct?
(A) The amount received from the sale of goods and services are called revenue
(B) Amount invested by the proprietor in the business is called capital
(C) Recording is the process of grouping transactions of one nature at one place
(D) Assets — Outside liabilities = Capital
7. The balance of which of the following items may have credit balance too?
(A) Cash
(B) Bank
(C) Investment
(D) Stock
8. Which of the following is not an intangible asset?
(A) Goodwill
(B) Debtors
(C) Copyright
(D) Patent
9. Which of the following statements indicates the essence of Robbins definition?
(A) “Economics is a subject concerned with an enquiry into the nature and causes of Wealth of Nations.”
(B) “Economics is the study of mankind in the ordinary busi ness of life.”
(C) “Economics is the science of scarcity.”
(D) “Economics is the study of allocation of scarce resources and of the determinants of employment, income and economic growth.”
10. A demand curve, parallel to X axis, shows the elasticity
(A) Infinite
(B) Less than l
(C) Zero
(D) Inelastic demand
11. According to the Malthusian theory of population which one of the following statements is not correct?
(A) Population tends to outrun the resources of subsistence
(B)There is a direct relationship between standard of living and population
(C) Increasing population can be checked through only positive checks
(D) Positive checks are those checks which are applied by the nature to stop population growth
12. When total utility is maximum, then marginal utility is
(A) Zero
(B) Less than average utility
(C) Equal to average utility
(D) More than average utility
13. Which of the following statements is correct?
(A) Perfectly elastic demand curve is parallel to X-axis
(B) Perfectly elastic demand curve is downward falling
(C) Perfectly inelastic demand curve is parallel to X-axis
(D) Generally highly elastic demand curve is a horizontal line
14. If 50% increase in the price of a commodity leads to only 10% reduction in demand, then such demand wilt be?
(A) Inelastic demand
(B) Perfectly elastic demand
(C) Perfectly inelastic demand
(D) Highly elastic demand
15. The equilibrium firm concept has been given by?
(A) Pigou
(B) Marshall
(C) Robinson
(D) J. K. Mehta
16. For ordinary business the maximum number of partners in a
Firm is?
(A)7
(B) 10
(C)20
(D) 50
17. By limited partnership is meant?
(A) Limited number of partners
(B) Unlimited liability of all partners
(C) Limited scope of partnership
(D) Limited liability of some partners

18. The voting right of the members of cooperative organization is?
(A) In the proportion of the shares purchased by them
(B) In the proportion of capital employed by them
(C) Equal voting right
(D) In the proportion of the total amount supplied by them
19. Line and staff organization is most suitable for?
(A) Small enterprises
(B) Medium sized enterprises
(C) Large sized enterprises
(D) Cottage enterprises
20. In sampling investigation, to arrive at valid conclusions, we may study?
(A) Only a very small unit of a population
(B) All the units of the population
(C) Representative units of the population
(D) None of these
21. ‘Law of Inertia of Large Numbers’ concludes?
(A) Smaller numbers are more stable than large ones
(B) Large numbers are more stable than small ones
(C) All of these
(D) None of these
22. Problem:
5 students secure less than 3 marks
12 students secure less than 6 marks
25 students secure less than 9 marks
33 students secure less than 12 marks
In the above problem, the number of students secure between 6 to 12 marks will be?
(A)12
(B)21
(C)25
(D)13
23.Statistical errors mean
(A)Errors committed while collecting data
(B) Errors committed while calculating
(C) Difference between the observed value and the true value
(D) Difference between old data and current data
24. A shopkeeper wants to stock shoes. The best suitable average for him will be?
(A) Arithmetic mean
(B) Median
(C) Mode
(D) Geometric mean
25. The mean marks of 100 students were found to be 40. Later on it was discovered that a score of 53 was misread as 83. The correct mean will be?
(A)39.5
(B)39.7
(C)39.8
(D)39.9
26. In which sequence are the following steps of communication taken?
(a) Getting participation in developing a solution to the problem
(b) Transmitting ideas or decisions
(c) Clarify the idea or problem
(d) Measuring the effectiveness of communication
Select your answer from the following codes—
(A) (a), (b), (c) and (d)
(B) (d), (c), (a) and (b)
(C) (d), (b), (a) and (c)
(D) (c), (a), (b) and (d)
27. Deficiency of capital, excessive dependency on agriculture and inequalities of income and wealth are some of the important features of a—
(A) Capitalistic economy
(B) Socialistic economy
(C) Developing economy
(D) Developed economy
28. Population census is made in India in every
(A) 7 years
(B) 10 years
(C) 15 years
(D) 20years
29. Which of the following banks stimulates the agricultural and rural development?
(A) EXIM Bank
(B) Exchange Bank
(C) HDFC Bank
(D) NABARD
30. Which bank’s old name was ‘Imperial Bank’?
(A) Reserve Bank of India
(B) Punjab National Bank
(C) State Bank of India
(D) Union Bank of India
31. Repo rate is the rate at which?
(A) The RBI takes money from banks
(B) Banks take money from the RBI
(C) One bank takes money from another bank
(D) The Government takes money from RBI
32. SIDBI is an apex financial insti tution for?
(A) Agricultural sector
(B) Collage industries
(C) Small and medium enterprises
(D) Large scale enterprises
33.The face value of a company’s share is Es. 100 Rs .The company
issued it at. 150 Rs The present market price of that share is Rs. 200. The company declares a dividend of 20% on these shares. The amount of dividend on per
share will be?
(A)Rs. 40
(B) Rs. 30
(C)Rs. 20
(D) Rs. 10
34.If own debenture of Rs. 1,000 is purchased for Rs. 975 from the
market by the company, the difference of Rs. 25 will be assumed?
(A) Profit on redemption of debenture
(B)Loss on redemption of debenture
(C)Goodwill
(D)None of these
35.Advance payment of tax is in the nature of?
(A) Asset
(B) Liability
(C) Prepaid Expenses
(D) Revenue expenses
36. Which of the following statements are true?
(a)Unclaimed dividend is an asset of a company.
(b)Dividend declared between two annual general meetings is called final dividend.
(c) A company can distribute interim dividend and final dividend in the same financial year.
Select your answer from the following codes?
(A) (b) and (c)
(B) (a), (b) and (c)
(C) (a) and (c)
(D) (a) and (b)
37. If debentures of Rs. 3,25,000 are issued for the consideration of
net assets of Rs. 3,50,000, balance of Rs. 25,000 will be credited to?
(A) Capital Reserve A / c
(B) General ReserveA/c
(C) Profit & Loss A/c
(D) Goodwill A / c
38. (Capital employed x Normal rate of return)/100=
(A)Average Profit
(B)Super Profit
(C)Normal Profit
(D) Adjusted Average Profit
39. Decrease in current liabilities is?
(A) Source of cash
(B)Use of cash
(C) None of (A) and (B)
(D) Both of (A) and (B)
40.Current liabilities are equal to?
(A) Working Capital ÷ Current Assets
(B) Working Capital — Current Assets
(C) Current Assets ÷ Working Capital
(D) Current Assets — Working Capital
41. In internal reconstruction?
(A) No company goes into liquidation
(B) Only one company goes into liquidation
(C) One or more companies go into liquidation
(D) Two or more companies go into liquidation
42. Intrinsic value of share can be determined by?
(A) Yield method
(B) Fair value method
(C) Net assets method
(D) Stock exchange quotation
43. In perfect competition the demand curve of a firm is?
(A)Horizontal
(B)Vertical
(C) Negative slope
(D) Positive slope
44.In a place the average rainfall was 4 centimeter during Monday
to Saturday. Due to heavy rainfall on Sunday the average of the
week was increased to 6 cm. The rainfall on Sunday will be?
(A) 17 cm
(B) 18 cm
(C)19cm
(D) 20cm
45. If Median 27 and Mean = 30,Mode will be?
(A) 20
(B) 21
(C) 22
(D) 23
46. If the coefficient of correlation is+ 0 it indicates?
(A) perfect correlation
(B) Absence of correlation
(C) Limited degree of correlation
(D) High degree of correlation

47. The original cost of an asset is Rs. 4,15,000. The useful life of the asset is 20 years and net scrap value is estimated to be Rs. 65,000. The amount of depreciation to be charged every year will be?
(A) Rs. 17,000
(B) Rs. 17,500
(C) Rs. 18,000
(D) Rs. 18,500
48. Which of the following is not undistributed profit?
(A) General Reserve A/c
(B) Workmen Compensation Fund A / c
(C) Securities Premium A/c
(D) Dividend Equalisation Reserve A/c
49. Who is the Chairman of the Planning Commission?
(A) Prime Minister
(B) President
(C) Governor of Reserve Bank of India
(D) Finance Secretary
50. The debit balance in nominal account shows?
(A) Expenses
(B) Gains
(C) Assets
(D) Liabilities
51. The cost of goods sold on hire purchase system is transferred to?
(A)Sales Account
(B)Purchase Account
(C)Hire-Purchase Trading Account
(D) Profit and Loss Account
52.Short working is equal to?
(A) Minimum rent-Royalty
(B) Royalty-Minimum Rent
(C) Royalty-Amount paid to landlord
(D) Shortworking-Surplus
53. Which of the following errors will not affect the Trial Balance?
(A) Goods for Rs. 5,000 purchased on cash, expenses account was debited instead of purchases account
(B) Purchase Returns Book for December was overcast by Rs. 500
(C) Sales Book carried forward Rs 2,200 instead of Rs. 2,000
(D) None of these
54.X and Y are partners sharing profits in the firm in the ratio of
2: 3. Goodwill appears in the books of the firm at Rs. 10,000. Z
joins the firm as new partner for share of profits. His share of
Goodwill is estimated to be Rs. 15,000. The old partners’ account will be credited with Goodwill by—
(A) Rs 50,000
(B) Rs. 40,000
(C) Rs. 75,000
(D) Rs, 65,000
55. In case of opening stock Rs. 5,000, purchases Rs. 15,000, direct expenses Its. 2,000 and closing stock Rs. 2,500, the cost of goods sold had been?
(A) Rs. 20,000
(B) Rs. 19,500
(C) Rs. 21,500
(D) Rs. 22,000
56. Which of the following statements is ‘True’ ?
(A) Building Account is a nominal account
(B) Outstanding rent account is a non-personal account
(C) Every debit has a corresponding credit
(D) Income is debited
57. Which one of the following is not a kind of statistical series ?
(A) Individual
(B) Discrete
(C) Classified
(D) Signed

58. The formula for coefficient of variation is?
(A) Standard Deviation/ Mean
(B)Mean/ Standard Deviation
(C) (Mean—Mode)/ Standard Deviation
(D)Standard Deviation/ (Mean—Mode)
59. The value of mean, median and mode coincides in case of?
(A) Positively skewed distribution
(B) Negative]y skewed distribution
(C) Symmetrical distribution
(D) All of these
60. Classification of the students of a college in two categories ‘rural’ and ‘urban’ is?
(A) Qualitative
(B) Quantitative
(C) Geographical
( D)None of these
61. Which of the following statements is ‘True’ ?
(A) Henry Fayol was the resident of America
(B) Elton Mayo is the father of scientific management
(C) Henry Fayol was the founder of human relation approach
(D) The credit of behavioural approach in management goes to Ford Foundation

62. X and Y Motivation Theory has been propounded by?
(A) Maslow
(B) Ouchi
(C) Herzberg
(D) McGregor

63. Study the following statements and mark your answer according to the answer code given below—
I. Planning is the first function of management.
II. Planning provides a basis for organisation.
Ill. Planning does not involve decision-making.
IV. Planning is a static function.
Codes:
(A) I and III are correct
(B) I and I are correct
(C) I and IV are correct
(D) II and IV are correct
64. Motivational process is basically?
(A) Emotional process
(B) Psychological process
(C) Physiological process
(D) Intellectual process
65. The main objective of controlling is to—
(A) Punish the guilty person
(B) Ensure that performance is as per planning
(C) Maintain discipline
(D) Fix responsibility of subordinates
66. Indian Banking Regulation Act was passed in the yea?
(A)1971
(B) 1969
(C)1949
(D) 1947
67. Which one of the following will not act as an incentive for exports?
(A) Raising the internal value of money
(B) Lowering the prices of goods within the country
(C) internal devaluation of money
(D) Granting low interest loans for exports.
68. Received Rs. 5,000 from Ram but credited his account by Rs. 50,000 is?
(A)Error of Omission
(B)Error of Principles
(C)Compensation Error
(D) None of these
69. The subsidiary voucher produced in the absence of primary voucher is called?
(A) General voucher
(B) Note-book voucher
(C) Counterfoil
(D) Collateral voucher
70. In how many days from the registration, the first Auditor of the company be appointed?
(A)10
(B) 20
(C)30
(D) 60
71. The main objective of Auditing is?
(A) To detect errors and fraud
(B) To prevent errors and fraud
(C) To find out accuracy, completeness and validity of accounts and documents
( D)All of these
72. Internal Auditor can be removed by the?
(A) Management
(B) Shareholders
(C) Statutory Auditor
(D) Government
73. In his report the Auditor gives his?
(A) Judgment
(B) Opinion
(C) Guarantee to correctness of accounts
(D) All of these
74. According to Section 227(1) of the Companies Act, 1956, the Auditor does not have the right
(A) To sign the Audit Report
(B) To see the books, accounts and vouchers of the company
(C) To obtain information and explanation
(D) To correct any wrong statement
75. Consider the following documents?
(a) Audit Report
(b) Audit Note-book
(c) Audit Programme
(d) Audit Files
The correct sequence in which the Auditor prepares these documents is?
(A) (c) (b) (d) (a)
(B) (d) (c) (a) (b)
(C) (c) (a) (d) (b)
(D) (a) (b) (c) (d)
76. Consider the following Statements
I Scope of audit
II Validity of appointment
III Knowledge about business
IV Instruction to client
V. Division of work among audit clerks.
The correct sequence of these elements for the commencement of a new audit will be?
(A) II, I ,III, IV and V
(B) I,II, III, IV and V
(C) V, I IV, III and II
(D)IV, I, III, II and V
77. Working papers which contain a record of the audit work done, are the property of?
(A) The company
(B) The auditor
(C) The company and the auditor both
(D) The Company Law Board
78. Under which Section of Companies Act, has the remuneration of the Auditor been discussed?
(A) Section 224(2)
(B) Section 224(8)
(C) Section 225
(D) Section 231
79. Marginal cost curve cuts the average cost curve
(A) At the left of its lowest point
(B) At the lowest point
(C) At the right of its lowest point
(D) At its highest point
80. In short term production function which of the following changes in factors?
(A) Ratio
(B) Scale
(C)Both of these
(D)None of these
81. Which one of the following is not a method of depreciation?
(A) Insurance Policy Method
(B) Diminishing Return Method
(C) The Sum of the Year Digits Method
(D)Replacement Cost Method
82. Which one of the following is not an accounting convention?
(A) Consistency
(B) Full disclosure
(C) Materiality
(D) Secrecy

83. Domestic use of office telephone is
(A) Embezzlement of Labour
(B) Embezzlement of Property
(C) Embezzlement of Facility
(D) None of these
84. The Geometric Mean of two numbers 8 and 18 shall be?
(A)12
(C)15
(B)13
(D)11.09
85. For open-end classes, the most appropriate measure of dispersion ?
(A) Range
(B) Quartile deviation
(C) Mean deviation
(D) Standard deviation
86. When the Cross Price Elasticity of demand between two goods is zero then those goods are called?
(A) Independent goods
(B) Luxury goods
(C) Substitute goods
(D) Complementary goods

87. The feature of monopolistic competition that drives a firm’s profit to zero in the long run is?
(A) Product differentiation
(B) Price leadership
(C) Market power
(D) Free entry
88. As a result of increase in the price of tea from Rs. 40 to Rs. 50 per pound, the demand for coffee increases from 500 pounds to 600 pounds. The cross elasticity of demand is?
(A)1/2
(B)2/3
(C)3/4
(D)4/5

89. Which of the following prevents National Income from falling to zero when Gross Investment falls to zero?
(A) Consumption
(B) Multiplier
(C) Accelerator
(D) None of these
90. In an Economy, where capital output ratio is 5.2 what should be the saving income ratio to bring about a growth rate of 6.2% in the National Income?
(A)1.00%
(B) 32.24%
(C)11.4%
(D)1.19%
91. Which of the following will happen when statutory liquidity ratio of banks is reduced by the central banks?
(A) Government can borrow more funds from the banks than before
(B) Government can sell more securities to the banks than before
(C) Private sector will be able to get less credit from banks than before
(D) Government will be able to sell less securities to banks than before
92. Which of the following growth models includes the population growth function?
(a) Classical Model
(b) Harrod-Domar Model
(c) New classical Model
(d) Schumpeter Model
Codes:
(A) (a) and (c)
(B) (a), (b) and (c)
(C) (a)and(d)
(D)(b) and (d)
93. Longer the period of time, elasticity of supply will be?
(A) Perfectly elastic
(B) Inelastic
(C) More elastic
(D) Constant
94. The production function expresses the relationship between?
(A) Cost and benefit
(B) Stock and flow variables
(C) Demand and supply
(D) Input and output

95.Which among the following is not the liability of a Commercial Bank?
(A) Share capital
(B) Reserve fund
(C) Bills, which are to be paid
(D) Balance with central bank and other banks

96. Which one of the following is not a method of credit control?
(A) Bank rate policy
(B) Open market operations
(C) Credit deposit ratio
(D) Cash reserve ratio
97. Economic development can be best measured by?
(A)D increase in Gross National Income
(B) Poverty ratios
(C) Growth in real per capita in GNP
(D) Faster capital formation

98. In calculating a country’s GNP at market prices, which one of the following is not included?
(A) Indirect taxes
(B) Subsidies
(C) Wages and salaries before tax
(D) Retirement pension
99. As against revenue deficit, gross fiscal deficit will always be?
(A). Lower
(B) Higher
(C) Similar
(D) Some times higher and sometimes lower
100. Consider the following statements
(a) Money is a stock whereas spending is a flow
(b) Wealth is a stock while income is a flow.
(c) The government debt is a stock but interest payment is a flow.
(d) The lending by bank is a flow and its outstanding loan is a stock.
Which of the statements given above are correct?
(A) Only (a) and (b)
(B) (a), (b) and (c)
(C) (a), (c) and (d)
(D) All of these
101. Unclaimed dividends should be shown in the Balance Sheet of a company under the heading
(A) Reserve and Surplus
(B) Provisions
(C) Current liabilities
(D) Miscellaneous items
102. The term, ‘imprest system’ is used in relation to?
(A) Purchases Book
(B) Sales Book
(C) Cash Book
(D) Petty Cash Book
103. On 31st December, 2007 the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paise per rupee was paid to the creditors. Loss on realization was?
(A) Rs. 10,000
(B ) Rs, 12,000
(C) Rs. 18,000
(D) Rs. 22,000
104. The rate of commission payable on the issue of shares should not be more than?
(A) 2%
(C) 4%
(B) 3%
(D) 5%
105. If sales are Rs. 18,000, Gross Profit Rs. 5,000, Net Loss Rs. 1,000, the operating expenses will be?
(A) Rs. 4,000
(B) Rs. 6,000
(C) Rs. 13,000
(D) Rs. 17,000
106. At what price is the stock valued under conventional method?
(A) At cost price
(B) At market price
(C) At cost price or market price whichever is lower
(D) At cost price or market price whichever is higher
107. Cumulative Preference share holders can claim unpaid dividend of earlier years as a matter of right only when?
(A) There are sufficient profits
(B) Company goes into winding up
(C) There are sufficient liquid funds
(D) Directors propose to distribute dividend to equity share holders before giving dividends to them
108. A firm had a capital balance of Rs. 1,00,000 at the beginning of a year. At the end of the year, the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals during the period were Rs. 30,000, what was the amount of Net Profit/Net Loss for the year?
(A) Rs. 10,000 profit
(B) Rs. 20,000 loss
(C) Rs. 50,000 loss
(D) Rs10,000 loss
109. You are given the following item
(a) Bills Receivables
(b) Short-term Investments
(c) Debtors
(d) Accrued but not received Interest.
Which of the following arrangements in the order of liquidity is
correct?
(A) (a), (b), (c) and (d)
(B) (b), (a), (d) and (c)
(C) (b), (c), (a) and (d)
(D) (c), (a), (d) and (b)
110. A private company does not?
(A) Restrict the right to transfer the shares
(B) Limit the number of its members
(C) Appoint auditor
(D) Publicity invite subscription to shares
111. Opening Stock : Rs. 15,000
Purchases : Rs. 95,000
Closing Stock :Rs. 29,000
Gross Profit 10% of sales
The amount of sales will be?
(A) Rs. 60,000
(B) Rs. 72,000
(C) Rs. 80,000
(D) Rs. 90,000

112. In case of retirement of a partner, the total amount of good will is credited to the account
of—
(A) The retiring partner only
(B) The remaining partners only
(C) All the partners
(D) None of these
113. If the rate of Gross Profit is 25% of sales and the -total cost of goods sold is RS. 1,00,000, the amount of gross profit will be?
(A) Rs. 25,000
(B) Rs. 20,000
(C) Rs. 30,000
(D) Rs. 33,333

114. The installation expenses for a new machine will be debited to?
(A) Installation Expense account
(B) Cash account
(C) Profit and Loss account
(D) Machinery account
115. A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance Method, the rate of depreciation would be?
(A) 25%
(B) 15%
(C) 20%
(D) 10%
116. Changing of capital expenditure to revenue expenditure results in
(A) Secret reserve
(B) Revenue reserve
(C) Capital reserve
(D) None of these
117. X Ltd. has current ratio of 2 1 and quick ratio of 1: 1. If the current liabilities are Rs. 80,000 then the value of stock would be?
(A) Rs. 1,60,000
(B) Rs. 1,20,000
(C) Rs. 40,000
(D) Rs. 80,000
118. Profit prior to incorporation of a company?
(A) Can be paid as dividend
(B) Cannot be paid as dividend
(C) Can be used for revenue expenses
(D) None of these

ISRO SCIENTISTS/ENGINEERS

ISRO SCIENTISTS/ENGINEERS (SC) ELECTRONICS ECE SYLLABUS

(1) Physical Electronics, Electron Devices and ICs:

Electrons and holes in semi-conductors, Carner Statistics, Mechanism of current flow in a semi-conductor, Hall effect; Junction theory; Different types of diodes and their characteristics; Bipolar Junction transistor; Field effect transistors; Power switching devices like SCRs, GTOs, power MOSFETs; Basics of ICs-bipolar, MOS and CMOS types; basic and Opto Electronics.

(2) Signals and Systems:
Classification of signals and systems; System modeling in terms of differential and difference equations; State variable representation; Fourier series; Fourier transforms and their application to system analysis; Laplace transforms and their application to system analysis; Convolution and superposition integrals and their applications; Z-transforms and their applications to the analysis and characterization of discrete time systems; Random signals and probability; Correlation functions; Spectral density; Response of linear system to random inputs.
(3) Network Theory:
Network analysis techniques; Network theorems, transient response, steady state sinusoidal response; Network graphs and their applications in network analysis; Tellegen’s theorem. Two port networks; Z, Y, h and transmission parameters. Combination of two ports, analysis of common two ports. Network functions: parts of network functions, obtaining a network function from a given part. Transmission criteria: delay and rise time, Elmore’s and other definitions effect of cascading. Elements of network synthesis.
(4) Electromagnetic Theory:

Analysis of electrostatic and magneto-static fields; Laplace’s and Poisson’s equations; Boundary value problems and their solutions; Maxwell’s equations; application to wave propagation in bounded and unbounded media; Transmission lines: basic theory, standing waves, matching applications, microstrip lines; Basics of wave guides and resonators; Elements of antenna theory.
(5) Analog Electronic Circuits:
Transistor biasing and stabilization. Small signal analysis. Power amplifiers. Frequency. response. Wide banding techniques. Feedback amplifiers. Tuned amplifiers. Oscillators, Rectifiers and power supplies. Op Amp, PLL, other linear integrated circuits and applications. Pulse shaping circuits and waveform generators.
(6) Digital Electronic Circuits:
Transistor as a switching element; Boolean algebra, simplification of Boolean function Karnaugh map and applications; IC Logic gates and their characteristics; IC logic families: DTL, TTL, ECL, NMOS, PMOS and CMOS gates and their comparison; Combinational logic circuits; Half adder, Full adder; Digital comparator; Multiplexer De-multiplexer; ROM and their applications. Flip-flops. R-S, J-K, D and T flip-tops; Different types of counters and registers. Waveform generators. A/D and D/A converters. Semi-conductor memories.
(7) Control Systems:
Transient and steady state response of control systems; Effect of feedback on stability and sensitivity; Root locus techniques; Frequency response analysis. Concepts of gain and phase margins; Constant-M and Constant-N Nichol’s Chart; Approximation of transient response from Constant-N Nichol’s Chart; Approximation of transient response from closed loop frequency response; Design of Control Systems; Compensators; Industrial controllers.
(8) Communication Systems:
Basic information theory; Modulation and detection in analogue and digital systems; Sampling and data reconstructions; Quantization and coding; Time division and frequency division multiplexing; Equalization; Optical Communication: in free space and fiber optic; Propagation of signals at HF, VHF, UHF and microwave frequency; Satellite Communication.
(9) Microwave Engineering:
Microwave Tubes and solid state devices, Microwave generation and amplifiers, Wave guides and other Microwave Components and Circuits, Microstrip circuits, Microwave Antennas, Microwave Measurements, Masers, Lasers; Micro-wave propagation. Microwave Communication Systems-terrestrial and satellite based.
(10) Computer Engineering:
Number Systems. Data representation; Programming; Elements of a high level programming language PASCAL/C; Use of basic data structures; Fundamentals of computer architecture; Processor design; Control unit design; Memory organization, I/o System Organization. Microprocessors: Architecture and instruction set of Microprocessor’s 8085 and 8086, Assembly language Programming. Microprocessor Based system design: typical examples. Personal computers and their typical uses.

ISRO SCIENTISTS/ENGINEERS (SC) COMPUTER SCIENCE CSE SYLLABUS

Theory of Computation: Regular languages and finite automata, Context free languages and Push-down automata, Recursively enumerable sets and Turing machines, Undecidability; NP-completeness.

Digital Logic: Logic functions, Minimization, Design and synthesis of combinational and sequential circuits; Number representation and computer arithmetic (fixed and floating point).

Computer Organization and Architecture: Machine instructions and addressing modes, ALU and data-path, CPU control design, Memory interface, I/O interface (Interrupt and DMA mode), Instruction pipelining, Cache and main memory, Secondary storage.

Programming and Data Structures: Programming in C; Functions, Recursion, Parameter passing, Scope, Binding; Abstract data types, Arrays, Stacks, Queues, Linked Lists, Trees, Binary search trees, Binary heaps.

Algorithms: Analysis, Asymptotic notation, Notions of space and time complexity, Worst and average case analysis; Design: Greedy approach, Dynamic programming, Divide-and-conquer; Tree and graph traversals, Connected components, Spanning trees, Shortest paths; Hashing, Sorting, Searching.

Compiler Design: Lexical analysis, Parsing, Syntax directed translation, Runtime environments, Intermediate and target code generation, Basics of code optimization.

Operating System: Processes, Threads, Inter-process communication, Concurrency, Synchronization, Deadlock, CPU scheduling, Memory management and virtual memory, File systems, I/O systems, Protection and security.

Databases: ER-model, Relational model (relational algebra, tuple calculus), Database design (integrity constraints, normal forms), Query languages (SQL), File structures (sequential files, indexing, B and B+ trees), Transactions and concurrency control.

Computer Networks: ISO/OSI stack, LAN technologies (Ethernet, Token ring), Flow and error control techniques, Routing algorithms, Congestion control, TCP/UDP and sockets, IP(v4), Application layer protocols (icmp, dns, smtp, pop, ftp, http); Basic concepts of hubs, switches, gateways, and routers.

ISRO SCIENTISTS/ENGINEERS (SC) MECHANICAL ME SYLLABUS

1. ENGINEERING MATHEMATICS
Linear Algebra: Algebra of matrices, system of linear equations, eigenvalues and eigenvectors.
Calculus: Taylor Series, Fourier Series, partial derivatives, total derivatives, definite and improper integrals, multiple integrals.
Vector Calculus: Gradient, divergence and curl, line and surface integrals, Green, Gauss and Stokes’ theorems.
Differential Equations: Linear ODE’s, first order non-linear ODE’s, initial and boundary value problems, Laplace transform, PDE’s-Laplace, wave and diffusion equations.
Numerical Methods: Solution of system of linear equations, interpolation, numerical integration, Newton-Raphson method, Runge-Kutta method.
Probability & Statistics: Gaussian, Weibul distribution and their properties, method of least squares, regression analysis, analysis of variance.
2. APPLIED MECHANICS AND DESIGN
Engineering Mechanics: Equivalent force systems, free-body concepts, equations of equilibrium, trusses and frames, virtual work and minimum potential energy. Kinematics and dynamics of particles and rigid bodies, impulse and momentum (linear and angular), energy methods, central force motion.
Strength of Materials: Stress and strain, stress-strain relationship and elastic constants, Mohr’s circle for plane stress and plane strain, shear force and bending moment diagrams, bending and shear stresses, deflection of beams torsion of circular shafts, thin and thick cylinders, Euler’s theory of columns, strain energy methods, thermal stresses.
Theory of Machines: Displacement, velocity and acceleration, analysis of plane mechanisms, dynamic analysis of slider-crank mechanism, planar cams and followers, gear tooth profiles, kinematics and design of gears, governors and flywheels, balancing of reciprocating and rotating masses.Vibrations: Free and forced vibration of single degree freedom systems, effect of damping, vibration isolation, resonance, critical speed of rotors.
Design of Machine Elements: Design for static and dynamic loading, failure theories, fatigue strength; design of bolted, riveted and welded joints; design of shafts and keys; design of spur gears, rolling and sliding contact bearings; brakes and clutches; belt, ropes and chain drives.
3. FLUID MECHANICS AND THERMAL SCIENCES
Fluid Mechanics: Fluid properties, fluid statics, manometry, buoyancy; Control-volume analysis of mass, momentum and energy, fluid acceleration; Differential equation of continuity and momentum; Bernoulli’s equation; Viscous flow of incompressible fluids; Boundary layer, Elementary turbulent flow; Flow through pipes, head losses in pipes, bends etc.
Heat-Transfer: Modes of heat transfer; One dimensional heat conduction, resistance concept, electrical analogy, unsteady heat conduction, fins; Dimensionless parameters in free and forced convective heat transfer, Various correlations for heat transfer in flow over flat plates and through pipes; Thermal boundary layer; effect of turbulence; Radiative heat transfer, black and grey surfaces, shape factors, network analysis; Heat exchanger performance, LMTD and NTU methods.
Thermodynamics: Zeroth, First and Second laws of thermodynamics; Thermodynamic system and processes; Irreversibility and availability; Behaviour of ideal and real gases, Properties of pure substances, calculation of work and heat in ideal processes; Analysis of thermodynamic cycles related to energy conversion; Carnot, Rankine, Otto, Diesel, Brayton and Vapour compression cycles.
Power Plant Engineering: Steam generators; Steam power cycles; Steam turbines; impulse and reaction principles, velocity diagrams, pressure and velocity compounding; Reheating and reheat factor; Condensers and feed heaters.I.C. Engines: Requirements and suitability of fuels in IC engines, fuel ratings, fuel-air mixture requirements; Normal combustion in SI and CI engines; Engine performance calculations.
Refrigeration and air-conditioning: Refrigerant compressors, expansion devices, condensers and evaporators; Properties of moist air, psychrometric chart, basic psychometric processes.
Turbomachinery: Components of gas turbines; Compression processes, Centrifugal and Axial flow compressors; Axial flow turbines, elementary theory; Hydraulic turbines; Euler-Turbine equation; Specific speed, Pelton-wheel, Francis and Kaplan turbines; Centrifugal pumps.
4. MANUFACTURING AND INDUSTRIAL ENGINEERING
Engineering Materials: Structure and properties of engineering materials and their applications, heat treatment.
Metal Casting: Casting processes (expendable and non-expendable) -pattern, moulds and cores, Heating and pouring, Solidification and cooling, Gating Design, Design considerations, defects.
Forming Processes: Stress-strain diagrams for ductile and brittle material, Plastic deformation and yield criteria, Fundamentals of hot and cold working processes, Bulk metal forming processes (forging, rolling extrusion, drawing), Sheet metal working processes (punching, blanking, bending, deep drawing, coining, spinning, Load estimation using homogeneous deformation methods, Defects). Processing of Powder metals- Atomization, compaction, sintering, secondary and finishing operations. Forming and shaping of Plastics- Extrusion, Injection Molding.
Joining Processes: Physics of welding, Fusion and non-fusion welding processes, brazing and soldering, Adhesive bonding, Design considerations in welding, Weld quality defects.Machining and Machine Tool
Operations: Mechanics of machining, Single and multi-point cutting tools, Tool geometry and materials, Tool life and wear, cutting fluids, Machinability, Economics of machining, non-traditional machining processes.
Metrology and Inspection: Limits, fits and tolerances, linear and angular measurements, comparators, gauge design, interferometry, Form and finish measurement, measurement of screw threads, Alignment and testing methods.
Tool Engineering: Principles of work holding, Design of jigs and fixtures. Computer Integrated Manufacturing: Basic concepts of CAD, CAM and their integration tools.
Manufacturing Analysis: Part-print analysis, tolerance analysis in manufacturing and assembly, time and cost analysis.
Work-Study: Method study, work measurement time study, work sampling, job evaluation, merit rating.
Production Planning and Control: Forecasting models, aggregate production planning, master scheduling, materials requirements planning.
Inventory Control: Deterministic and probabilistic models, safety stock inventory control systems.
Operations Research: Linear programming, simplex and duplex method, transportation, assignment, network flow models, simple queuing models, PERT and CPM.

ISRO SCIENTISTS/ENGINEERS

ISRO SCIENTISTS/ENGINEERS (SC) COMPUTER SCIENCE CSE SYLLABUS

Theory of Computation: Regular languages and finite automata, Context free languages and Push-down automata, Recursively enumerable sets and Turing machines, Undecidability; NP-completeness.

Digital Logic: Logic functions, Minimization, Design and synthesis of combinational and sequential circuits; Number representation and computer arithmetic (fixed and floating point).

Computer Organization and Architecture: Machine instructions and addressing modes, ALU and data-path, CPU control design, Memory interface, I/O interface (Interrupt and DMA mode), Instruction pipelining, Cache and main memory, Secondary storage.

Programming and Data Structures: Programming in C; Functions, Recursion, Parameter passing, Scope, Binding; Abstract data types, Arrays, Stacks, Queues, Linked Lists, Trees, Binary search trees, Binary heaps.

Algorithms: Analysis, Asymptotic notation, Notions of space and time complexity, Worst and average case analysis; Design: Greedy approach, Dynamic programming, Divide-and-conquer; Tree and graph traversals, Connected components, Spanning trees, Shortest paths; Hashing, Sorting, Searching.

Compiler Design: Lexical analysis, Parsing, Syntax directed translation, Runtime environments, Intermediate and target code generation, Basics of code optimization.

Operating System: Processes, Threads, Inter-process communication, Concurrency, Synchronization, Deadlock, CPU scheduling, Memory management and virtual memory, File systems, I/O systems, Protection and security.

Databases: ER-model, Relational model (relational algebra, tuple calculus), Database design (integrity constraints, normal forms), Query languages (SQL), File structures (sequential files, indexing, B and B+ trees), Transactions and concurrency control.

Computer Networks: ISO/OSI stack, LAN technologies (Ethernet, Token ring), Flow and error control techniques, Routing algorithms, Congestion control, TCP/UDP and sockets, IP(v4), Application layer protocols (icmp, dns, smtp, pop, ftp, http); Basic concepts of hubs, switches, gateways, and routers.

APGENCO Previous Papers Questions (Electronics)

** Kirchoff’s nodal equations based on the principle of
** If the Supply voltage is increased by n times, the cross section of conducter will [increase/decrease] by ________ times ?
** Memory word size of 8085 microprocessor?
** Flip flop used in shift register
** And gate
** Static electricity is formed for?
** Cc has current gain and input impedance ?
** If geta=1, the roots of cequ are
** For a 6db attenuator , if input power is 100MW ,o/p power will be =?
** For a perfectly matched tx line , reflection coefficient=?
** Radiation pattern of isotropic radiator is
** Amplitude limiter essentially a
** Waveguide acts as
** The Frequency is measured by _________ bridge ?
** x-band rangeis
** reflection coefficient is zero , then the line is
** Dynamic memory cells are constructed using
** Which of the following is most efficient
** Which of the following has higher bandwidth
** Essential channel capacity is a measure of
** Lossless line condition is?
** The Source internal resitanse Rs , When equal to Load resistance RL, the maximum transfered is of _____ % of input power?
** Typical bit rate of keyboard devices ?
** 16 in octal s/m is?
** No of bits represents 16 is
** F(t)=t e at, F(S)=?
** F(S)=1/(s+a)2, f(t)   =?
** 16 bit width ,8085 mapps    ans 64kilobytes
** Which of the following  flipflop doesn’t have race problem?
** Dominant mode TE10
** Wave length in waveguide equal to ,greater than , lessthan ,independent of free space wave length
** Half adder has how many ips and ops
** Magnetron is
** Bethe-hole coupler uses
** Power gain=40 : Voltage gain=200 : Current gain=?
** Tfunction=k(s+1)/s(s-2+j3)(s-2-j3), no of poles=?
** Tfuncion 1-s/1+s , it is known as
** G=k/s2(1+sT)then order and type=?
** Which of the following component is passive and reciprocal
** Broad side array interelement phase shift is
** R=100ohms,C=100pf, TIME CONST=?
** Isotropic antenna gain is
** In one timeconstant  the final value increases by _____________value
** ABCD PARAMETERS of ELECTRICAL SYMMETRY: Ad-bc=1
** s-equation of L DI/DT
** In a CE amplifier ,if a C.E voltage increase
** Transfer function has 2poles on L.HS PLANE and 2zeros on r h s plane this results
** The gain at corner frequency is?
** t.v s/m am- picture,fm-sound
** code used in teleprinter
** Bandwidth =resonant frequency/qualityfactor
** Differentiation of u(t)?
** Freespace impedance?
** Resonant frequency of rlc ckt is ?
** bandwidth of telephoneis
** bit is a unit of
** when 2 n/w are connected in parallel
a. z-parameter add
b. h-paramete
c. y-parameter
d. abcd parameter
** beamwidth of antenna is
** Convolution of two u(t)?
** T function H(s)=1/(s+1),h(f)=?
** F(s)=1/s2, then f(t)?
** Fourier series expansion of a even periodic function contains ?
** If ip of ckt is sine , the steady state op willbe exponentially decay with time const,sin , damped sinusoidal
** Power gain of emitter follower?
** Highest voltage gain can be obtained from
** Differentiation of time domain is equal to
** Standard rect waveguide width to  height ratio
** Which is micro wave oscillator
** If transmission line open ckt then vswr?
** Is Pn junction reversebiased ?
** Typical q factor of crystal oscillator
** In pnp transistor saturation current is due to
** When both junction of a transistor is forward biased then it is said to be in
** 50ohms line matched to 200 ohms load through quarter wavelength transmission , the characteristic impedance of matched line should be
** Hall effect used to measure?
** P type semiconductor properties?

National Fertilizers Limited (NFL) Exam

  National Fertilizers Limited (NFL) Exam Pattern is here for the candidates who are preparing for NFL Examination. Checkout the following NFL Placement papers and National Fertilizers Limited (NFL) Exam Pattern here.

NFL Exam Pattern & NFL Placement papers:

1. Aptitude
2. Technical

Aptitude:

• Vocabulary english+verbal
• Nonverbal reasoning+quantative

Technical:
c,oops,operating system,compiler,dbms,network,computer graphics
Computer organisation in this exam 170 questions
Time allotted for this exam only 2:00hrs/ 120min

Negative marking in this exam:

• On 1 wrong ans 0.5 mark will be deducted
• Right ans contain 1 mark

Some confirm question on this exam:

[1] the process of transforming 1 bit pattern into another is called a masking b bitting c prunning d chopping
[2] lint is a compiler b a interactive debugger c a cinterpreter d a tool for analysing c++ program
[3] header files used in c programs usually found in a /bin/include b /usr/bin/include c /dev/include d /usr/include
[4] dijstra banking algorithm used in the problem a dead lock avoidance b deadlock recovery c mutual exclusion d none
[5] which is following service is not supported by operating system a compilation b accounting protection d i/o operation
[6]which is the following sheduling policy is suited in time sharing o/s a sjf b fcfs c round robin d none
[7] a top down parser genrates a left most derivation b right most derivation c right most derivation in reverse
[8] a bottom up parser genrates a left most derivation b right most derivation c right most derivation in reverse
[9] which is the following symbol table implementation is based on principal of locality of referencea linear list b searchtree c hash table d self organisation list
[10] let * be a boolean operation defined by a a*b =a*b+a’b’ then a*a a A b B c 0 d 1
[11]the number column in a state table for a sequential circuit with m flip flops and n inputs a m+n b m+2n c 2m+n d 2m+2n
[12] the minimum time delay between the initiation of two memory operations a access time b cycle time c transfer rate d latency time
[13] the way a card player game arranges his cards as he picks them up one by onea bubble sort b insertion c selection d merge sort
[14] phenomenon of having a continuous glow of a beam on the screen even aftera removed a called a a flouresence b persistence c phospherence d incadence
[15] which display device is suited for cad system a a crt with vector referesh monitor b crt with raster scan monitor
c plasma panel display d led display
[16] the basic elements of a picture in volume graphics a pixel b voxel c volsel d none
[17] which of the following system resides in memory always a text editor b assembler c linker d loader
[18] for a weak entity set to be meaningful it must be a part of a one to many relationship b one to one c many to many d none
[19] c front is a a is front end of a c compiler b is preprocessor of a ccompiler c translates a c++ code to its equivalent code d none
[20] files in a structure of ac++ are by default a public b private c protected d none
[21] end to end connectivity is provided from host to host in a the network layer b the transport layer c the session layer d data
link layer
[22] how many characters persec (7bit+1) can be transmitted per over a 2400 bps line in the transfer is synchronous]
a 300 b 240 c 275 d 250
[23] which is the following is more closely related to the physical communication facilities
a application b session networkn d datalink
Aptitude Quantative:

• 1partnership
• 2time and work
• 3average
• 4 arithmatic
• 5 boat
• 6profit & loss
• 7 ratio
• 8 si & ci

1. verbal
2. analogy
3. sequence arrangement
4. puzzle
5. direction sence
6. calender
7. ven diagram

LIC ADO Sample Question papers

Directions—(Q. 1–10) Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you to locate them while answering some of the questions.
Politicians and generals talk of military strategies and manoeuvers but something completely different is needed. Stability will come only when economic opportunities exist, when youth can find jobs and support families rather than seeking their livelihood in violence. Peace can only be achieved with a withdrawal of foreign troops, sanctions and peace-keepers and the arrival of jobs, productive farms and factories, healthcare and schools. Repeatedly the fragile peace in impoverished countries has broken down because of the lack of economic follow-up. Despite promises of aid, the actual record of international aid to post war reconstruction is deficient.
Once the war ends agencies involved in post war relief efforts fail to understand how to start or restart economic development in a low income setting. They squander time, surplus aid funds and opportunities because they are not familiar with local conditions and do not under-stand their point of view. There are distinct phases of outside help to end a conflict. In the first phase focus is on providing food, water, shelter and medicine to refugees i.e., humani-tarian. In the second, emphasis is on the refugees returning home while in the last phase long term investments and strengthening of courts is the main focus.
However once a conflict is over aid agencies sanctioned by the World Bank send study groups instead of requisite personnel. There is a gap of several years before moving from humanitarian relief to economic deve-lopment. By the time such help arrives the war has restarted. It is possible to restart economic develop-ment through targeted ‘quick impact’ initiatives. Most economies in post conflict countries are based on agri-culture. Providing free packages of seeds, fertilizers and low cost equip-ment quickly will ensure that former soldiers will return to their farms and establish their livelihood. But the window of opportunity closes quickly and one has to implement these measures almost immediately.
1. Which of the following is a reason, post conflict reconstruc-tion efforts have failed ?
(A) Aid organizations do not understand issues from the pers-pective of the poor
(B) Rapid economic develop-ment in low income countries
(C) World Bank studies are not valid
(D) International aid organiza-tions become too involved in reconstruction efforts
(E) None of these
2. Where does the problem lie in implementing post war relief measures ?
(A) Aid agencies fail to study the situation
(B) Economic development measures are too rapid
(C) Focus on economic deve-lopment not humanitarian aid
(D) Lack of funds to implement programmes
(E) Lack of essential and quali-fied personnel
3. According to the author how can political stability be achieved ?
(A) Increasing the number of foreign troops in areas of conflict
(B) Depending more on foreign aid
(C) Following recommendations given by the World Bank
(D) Providing economic oppor-tunities
(E) None of these
4. Which of the following is not true in the context of the pas-sage ?
(A) Focus in the first phase of a war is on providing humani-tarian aid
(B) Sanctions are not a means to ensure peace
(C) Adequate time must be taken to plan and implement quick impact strategies
(D) Providing employment to the younger generation will prevent wars
(E) Focus on delivering justice through courts should be in the last phase of conflict aid
5. How can economic development be restarted in an impoverished country ?
(A) Long term studies should be commissioned
(B) Retaining soldiers in the army to ensure law and order
(C) Restrict number of aid agencies to avoid waste
(D) Focusing on agricultural ini-tiatives
(E) Deploying peace keepers in the country
6. What is the benefit of ‘quick impact’ aid ?
(A) Soldiers earn income from the army and their farms
(B) Providing alternate liveli-hood to soldiers before war can restart
(C) Free land is given to soldiers
(D) Price of equipment is low
(E) None of these
Directions—(Q. 7 and Choose the word that is most nearly the same in meaning as the word printed in bold as used in the passage.
7. exist
(A) live (B) fit
(C) create (D) occur
(E) survive
8. squander
(A) lavish (B) spend
(C) displace (D) lose
(E) misuse
Directions—(Q. 9 and 10) Choose the word which is most opposite in meaning of the word printed in bold as used in the passage.
9. fragile
(A) weak (B) lasting
(C) long (D) strong
(E) unstable
10. deficient
(A) surplus (B) valued
(C) short (D) secure
(E) repaired
Directions—(Q. 11–15) Rearrange the following sentences (A), (B), (C), (D), (E) and (F) in the proper sequence to form a meaningful paragraph and then answer the questions given below it—
A. Strict obedience to these rules is called discipline.
B. In the same way, a society where rules are not followed cannot survive for long.
C. Only then a society can be run in an orderly fashion.
D. A society can exist properly only when men living in it agree upon certain rules of conduct.
E. For example, if the people on the road do not obey traffic rules there will be complete disorder and con-fusion.
F. Students must obey their teachers, children their parents, citizens the laws and so on and so forth.
11. Which of the following is the fifth sentence ?
(A) A (B) B
(C) C (D) E
(E) F
12. Which of the following is the sixth (Last) sentence ?
(A) A (B) B
(C) C (D) D
(E) E
13. Which of the following is the second sentence ?
(A) A (B) B
(C) C (D) D
(E) E
14. Which of the following is the first sentence ?
(A) A (B) B
(C) C (D) D
(E) E
15. Which of the following is the third sentence ?
(A) A (B) B
(C) C (D) E
(E) F
Directions—(Q. 16–20) Pick out the most effective word from among the given words to fill in the blank to make the sentence meaningfully com-plete.
16. She did not like to…………her decision like a dictator on her subordinates.
(A) divulge (B) prompt
(C) enforce (D) deploy
(E) make
17. People unfortunately………that money brings happiness.
(A) assume (B) deny
(C) object (D) rely
(E) conscious
18. The public have………a protest against the new rules of the budget.
(A) organize
(B) demonstrated
(C) compiled
(D) pursued
(E) launched
19. Sarojini Naidu will always be remembered for her……… to the national cause.
(A) blessing
(B) involvement
(C) pursuit
(D) dedication
(E) command
20. Poverty has to be………and the basic necessities of life should be made available to everyone.
(A) destroyed (B) eliminated
(C) finished (D) magnified
(E) considered
Directions—(Q. 21–25) In each of these questions, two of the words are related in some way i.e., they are similar or opposites. Pick out the option which represents that pair.
21. 1. moderate  2. easy 3. significant  4. strenuous
(A) 2–4 (B) 1–2
(C) 1–3 (D) 2–3
(E) 3–4
22. 1. focus  2. trivial  3. vital  4. site
(A) 1–2 (B) 2–4
(C) 1–3 (D) 3–4
(E) 2–3
23. 1. defer 2. dispute  3. prefer 4. challenge
(A) 2–3 (B) 1–3
(C) 2–1 (D) 2–4
(E) 3–4
24. 1. consequence 2. potential 3. influence 4. ability
(A) 4–3 (B) 2–4
(C) 2–3 (D) 1–3
(E) 4–1
25. 1. rebuke 2. oppose 3. praise 4. distrust
(A) 1–2 (B) 2–3
(C) 1–3 (D) 3–4
(E) 2–4
Directions—(Q. 26–35) In the following passage there are blanks each of which has been numbered. These numbers are printed below the passage and against each five words are suggested, one of which fills the blank appropriately. Find out the appropriate word in each case.
Delinking of jobs from degrees is one of the …(26)… features of our education …(27)…. There has been a …(28)… fall in …(29)… in the acade-mic field in recent years. There is a …(30)… of degree holders in the country, as a result, university degrees have …(31)… their value and charm while the number of students in colleges and universities of the country has been …(32)… rising. Consequently thousands of graduates and post graduates come out of these institutions and stand in queues waiting to get some …(33)… jobs …(34)… in the country. Moreover, these degree holders do not have any technical or vocational knowledge needed for a particular job. As a result, the number of educated unemployed has been rising …(35)…. It has created a very serious problem.
26. (A) minor
(B) trivial
(C) unachievable
(D) irrelevant
(E) salient
27. (A) process
(B) policy
(C) development
(D) guideline
(E) procedures
28. (A) expected (B) sheer
(C) rough (D) steep
(E) gentle
29. (A) assessment
(B) evaluation
(C) competence
(D) fees
(E) value
30. (A) flood (B) class
(C) party (D) mob
(E) rabble
31. (A) mislaid (B) lost
(C) increase (D) found
(E) establish
32. (A) slowly (B) hastily
(C) deeply (D) waiting
(E) out
33. (A) suitable (B) remain
(C) study (D) live
(E) place
34. (A) frequency
(B) occurrence
(C) event
(D) chance
(E) blocking
35. (A) fever (B) outshine
(C) lean (D) dwarfed
(E) horribly
Answers With Explanations:
1. (A) 2. (A) 3. (D) 4. (E) 5. (D) 6. (E) 07. (D) 8. (B) 9. (D) 10. (A) 11. (D) 12. (A) 13. (A) 14. (E) 15. (E) 16. (C) 17. (A) 18. (E) 19. (D) 20. (B) 21. (A) 22. (E) 23. (B) 24. (B) 25. (C) 26. (E) 27. (B) 28. (D) 29. (C) 30. (A) 31. (B) 32. (B) 33. (A) 34. (D) 35. (E)

Bail Out Package and Indian Economy

The economic problems of the global slowdown began to surface in India during the mid-2008 when a few major investment banks in the USA collapsed and the US economy began to feel the heat of the meltdown. After a phase of bullish euphoria in the financial markets in 2007, the Indian stock markets began to suffer heavy setbacks after January 2008. While the markets were hoping to recover to some extent at the time of Diwali, in October 2008, it turned out to be the other way around as the markets suffered major reverses. To add to the woos of the common man, the inflation rate was hitting the roof.

 

In addition to the exorbitant price level, there was liquidity crunch in the market and the interest rates were very high, discouraging the investors from making any investment. The grim market scenario forced the investors to put on hold even the most viable projects. The banks were also shying away from funding the projects on one pretext or the other.

 

By October 2008, many companies, particularly in the IT and Aviation sectors, began to hand over pink slips to quite a few of their employees. New recruitments were stopped and in many cases the salaries of the existing staff were slashed. This was for the first time after the onset of the process of reforms that such a situation was encountered in the country. Despite the brave face put up by the government, the feeing of recession in the economy began to sink in.

 

As the crisis loomed large over the world economy, the US government took the lead to save its investment banks through a bail-out package. The US government also considered the bailout package for its three major automobile manufacturers. On the national front also, many corporate entities began to announce salary cuts and reduction in the employee strength, forcing the government to announce a package of unemployment doles for such employees. This was the time when the Indian government also tightened its belt and came out with an economic package which was multi-faceted and encompassed areas like indirect taxation, interest rate cuts, monetary policy measures and duty cuts.

 

Focus of the package announced on December 6, 2008, was primarily on reducing the prime lending rates of the commercial banks. The aim was to revive the economic activity by reviving the housing, infrastructure and automobile sectors. The government tried to increase the availability of liquidity in the market by adopting various monetary policy measures to trigger the downward trends in lending rates of various banks, including the house building advances and car loans. The first bailout package was estimated to have pumped in additional funds to the tune of Rs 40,000 crores into the Indian economy. The second bail out package, announced in the beginning of January, 2009, provided the system with additional liquidity to the extent of Rs 20,000 crore, taking the total additional fund availability to Rs 60,000 crores.

 

As an automatic corollary to the above mentioned measures was the resultant easier credit at reduced rates. With the RBI announcing reduction in the Repo Rate and the Bank Rates, most of the commercial banks reacted positively and announced reduction in their prime lending rates, making it easier for the borrowers to borrow at reduced rates. Hence, not only the availability of credit was enhanced, its cost was also reduced considerably.

 

Among the most important sectors is the automobile sector. During the last about one decade, this sector has been the backbone of India’s industrial growth rate. Reduction in the excise duties for most of the vehicles has helped this sector to cut the prices of the vehicles significantly, protecting it from further slide. Reduction in the petrol and diesel also helped the auto sector to tide over the difficult situation. The growth rate of the auto sector may not have improved greatly after these
measures, but the measures have certainly helped this crucial sector to survive the global scare.

 

Civil aviation is yet another important sector that had been fuelling the growth rate of the country in the recent years.  But after the rise in fuel prices and global slowdown, this sector came under immense stress. The government cut the prices of the aviation fuel three times during the months of December and January, bringing down the costs in the aviation sector drastically.

 

Effectiveness and Future
The measures taken by the government in India were timely and apt. Any other government under such a situation would have reacted in the similar manner.

 

Certain visible improvements have been observed in the Indian economy after the measures were initiated. The capital markets have stabilized even though at a lower level. The inflation rate, which had touched the figure of 12 per cent, has come down to a comfortable level of less than 6 per cent. Despite the projection of 1 to 2 per cent growth rate of the global economy, the Indian economy hopes to post 7 per cent growth during 2008-09, which would be among the highest in the world. It is expected that after the first quarter 2009-10 things would begin to improve and the economy would again be back on the path of rapid development. 

 

One of the classical criticisms of the fiscal and monetary policy measures can be summed up in a proverbial expression that one can take the horse to water but cannot force it to drink. Government may provide a good environment for the investors but the investors may wait for the recession to be over before taking major investment decisions. In other words, the government may provide the framework of revival but the revival may actually take longer than expected. Further, the improvements in the global situation, particularly in the USA, would certainly play a major role to bring the situation back to normal.

 

Many people feel that the attempts to add liquidity in the economy were too tentative and too less. Rs 40,000 crore is just about one per cent of the GDP of the country. In a large and diverse economy like ours, this sum may have no significant meaning. It is also believed by many that the liquidity added by various measures was sucked in by the oil bond operations of the government and the net impact on the liquidity was virtually negligible.

 

The government has made clear its intention to encourage the private investment and step up the public expenditure to keep the eco-nomy buoyant. Mere statement of the intention to invest is not sufficient and higher investment must happen quickly and effectively and the routine delays in the government expenditure must be curbed. Infrastructure and social sector are two such areas in which the government agencies can push up the investment rate significantly. Programmes like the National Rural Employment Guarantee Scheme, Bharat Nirman, and Sarv Siksha Abhiyan are some of the programmes having a lot of funds for investment in the rural areas and, if implemented properly, these would keep the economy vibrant despite the global economic blues.

 

Housing is another important activity in India. There are many countries in the world that had grown rapidly by supporting their housing activities. With about 4 per cent increase in population in the cities, half of which is due to large scale migration from the villages to the cities, housing is going to be a basic need of the people in India. Affordable housing must be encouraged by the government to counter the situation of economic slowdown.

 

With a huge rural population base, the policy makers must ensure that the real incomes in the rural areas of the country continue to rise. With the economy offering a lot of scope for development and growth in the rural areas, increased income levels in the rural areas would generate demand on sustainable basis. Besides, a large chunk of the Indian population is still not adversely affected by negative growth of the Indian stock markets. In this way, India is different from rest of the world.

State of India’s Economy

In the second half of 2008-09 there was a significant slowdown in the growth rate, following the financial crisis that hit the world in 2007. The fiscal year 2009-10, thus, began on a difficult note. There was apprehension that the slow-down will continue to affect the economy thus making 2009-10 a difficult year.

However, 2009-10 turned out to be a year of reckoning for the policy makers, who took a calculated risk by providing substantial fiscal expansion to counter the negative fallout of the global slowdown.

The downside of the fiscal stimulus was that India’s fiscal deficit increased, reaching 6.8 per cent of GDP in 2009-10. A sub-normal monsoon added to the overall uncertainty.

Despite all odds the economy, at the end of the financial year, posted a remarkable recovery, not only in terms of overall growth figures but, more importantly, in terms of certain fundamentals, which justify optimism for the Indian economy in the medium to long term.

The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9 per cent. As per the advance estimates of GDP for 2009-10, released by the Central Statistical Organisation (CSO), the economy is expected to grow at 7.2 per cent in 2009-10, with the industrial and the service sectors growing at 8.2 and 8.7 per cent respectively.

This recovery is impressive for at least three reasons. First, it has come about despite a decline of 0.2 per cent in agricultural output, which was the consequence of sub-normal monsoons. Second, it fore-shadows renewed momentum in the manufacturing sector, which had seen continuous decline in the growth rate for almost eight quarters since 2007-08. Indeed, manufacturing growth has more than doubled from 3.2 per cent in 2008-09 to 8.9 per cent in 2009-10. Third, there has been a recovery in the growth rate of gross fixed capital formation, which had declined significantly in 2008-09 as per the revised National Accounts Statistics (NAS). While the growth rates of private and government final consumption expenditure have dipped in private consumption demand, there has been a pick-up in the growth of private investment demand.

There has also been a turnaround in merchandise export growth in November 2009, which has been sustained in December 2009, after a decline nearly twelve continuous months.

The broad- based nature of the recovery created scope for a gradual rollback, in due course, of some of the measures undertaken to overcome global slowdown effects on Indian economy, so as to put the economy back on to the growth path of 9 per cent per annum.

The emergence of high double-digit food inflation during the second half of the financial year 2009-10 was a major cause of concern. On a year-on-year basis, wholesale price index (WPI) headline inflation in December 2009 was 7.3 per cent, but for food items (primary and manufactured), with a combined weight of 25.4 per cent in the WPI basket, it was 19.8 per cent. A significant part of this inflation was due to supply-side bottle-necks in some of the essential commodities, precipitated by the delayed and sub-normal southwest monsoons.

Overall GDP growth
The CSO has effected a revision in the base year from 1999-2000 to 2004-05. It includes changes on account of certain refinements in definitions of some aggregates, widening of coverage, inclusion of long-term survey results and the normal revision in certain data in respect of 2008-09. While there are no major changes in the overall growth rate of GDP at constant 2004-05 prices, except for 2007-08 where it has been revised upward from 9.0 to 9.2 per cent, there are some changes in growth rates at sectoral level and in the level estimates of GDP.

The contribution of the agriculture sector to the GDP at factor cost in 2004-05 has declined from 17.4 per cent in the old series to 15.9 per cent in the new series. Similarly, while the contribution of registered manufacturing has declined from 10.9 per cent in the old series to 9.9 per cent in the new series, that of unregistered manufacturing has increased from 4.9 to 5.4 per cent.

There is also an increase in the contribution of real estate, ownership of dwellings and business services from 8.2 per cent to 8.9 per cent.

In the case of level estimates of GDP at current prices, the difference ranges from 3.1 per cent in 2004-05 to 6 per cent in 2008-09. As a result, there are also changes in the expenditure estimates of the GDP.

The advance estimate of GDP growth at 7.2 per cent for 2009-10, falls within the range of 7 +/- 0.75 projected nearly a year ago in the Economic Survey 2008-09. With the downside risk to growth due to the delayed and sub-normal monsoons having been contained to a large extent, through the likelihood of a better-than-average rabi agricultural season, the economy responded well to the policy measures undertaken in the wake of the global financial crisis. While the GDP at factor costs at constant 2004-05 prices, is placed at Rs 44,53,064 crore, the GDP at market prices, at constant prices, is estimated at Rs 47, 67,142 crore. The corresponding figures at current prices are Rs 57,91,268 crore and Rs 61, 64,178 crore, respectively.

The recovery in GDP growth for 2009-10 is broad based. Seven out of eight sectors/sub-sectors show a growth rate of 6.5 per cent or higher. The exception is agriculture and allied sectors where the growth rate is estimated to be minus 0.2 per cent over 2008-09. Sectors, including mining and quarrying, manufacturing; and electricity, gas and water supply have significantly improved their growth rates at over 8 per cent in comparison with 2008-09.

The construction sector and trade, hotels, transport and communication have also improved their growth rates over the preceding year, though to a lesser extent. However, the growth rate of community, social and personal services has declined significantly, though it continues to be around its pre-global crisis medium-term trend growth rate.

Financing, insurance, real estate and business services have retained their growth momentum at around 10 per cent in 2009-10.

In terms of sectoral shares, the share of agriculture and allied sectors in GDP at factor cost has declined gradually from 18.9 per cent in 2004-05 to 14.6 per cent in 2009-10. During the same period, the share of industry has remained the same at about 28 per cent, while that of services has gone up from 53.2 per cent in 2004-05 to 57.2 per cent in 2009-10.

Per capita growth
The growth rates in per capita income and consumption, which are gross measures of welfare in general, have declined since 2008. This is a reflection of the slowdown in the overall GDP growth. While the growth in per capita income, measured in terms of GDP at constant market prices, has declined from a high of 8.1 per cent in 2007-08 to 3.7 per cent in 2008-09 and then recovered to 5.3 per cent in 2009-10, per capita consumption growth as captured in the private final consumption expenditure (PFCE) shows a declining trend since 2007-08 with its growth rate in 2009-10 falling to one-third of that in 2007-08. The average growth in per capita consumption over the period 2005-06 to 2009-10 was slower at 6.08 per cent than that in per capita income at 6.52 per cent. These year to year differences in growth rates can be explained by the rising savings rate and also the rise in tax collections that have been observed in some of these years.

Aggregate demand and its composition
The change in the base year, from 1999-2000 to the new base of 2004-05, has brought about significant revision in the expenditure estimates of the GDP for 2008-09. While growth of the PFCE in 2008-09 was revised upward from 2.9 per cent to 6.8 per cent, growth in government final consumption expenditure was revised downwards from over 20 per cent in 2008-09 on the old base to 16.7 per cent on the new base. In 2009-10 a growth of 4.1 per cent is expected in private final expenditure and 8.2 per cent in government final expenditure.

There is a significant decline in the growth of consumption expenditure in 2009-10. However, the overall share of consumption expenditure, both private as well as government in GDP at market prices, at constant 2004-05 prices, has declined only marginally from 70.9 per cent in 2008-09 to 69.6 per cent in 2009-10.

At the same time, the growth rate of gross fixed capital formation in 2008-09 has also undergone a revision. It was revised downward from 8.2 per cent in the earlier base to 4 per cent in the revised base for 2008-09. It is, however, estimated to grow by 5.2 per cent in 2009-10.

With growth in private expenditure on food, beverages and tobacco falling behind the overall growth in private consumption expenditure, the share of expenditure on food items has gradually been declining over the years. As per the CSO data, it was 35.3 per cent in 2008-09 as against 39.6 per cent in 2004-05. At the same time, the growth in expenditure on transport and communication and miscellaneous goods and services has been increasing, though with occasional aberrations, with the result that together they account for nearly the same share in total private consumption as the expenditure on food items.

Agriculture
Total foodgrains production in 2008-09 was estimated at 233.88 million tonnes as against 230.78 million tonnes in 2007-08 and 217.28 million tonnes in 2006-07. In the agricultural season 2009-10, the impact of the delayed and sub-normal monsoon is reflected in the production and acreage data for kharif crops. As per the first advance estimates, covering only the kharif crop, production of foodgrains is estimated at 98.83 million tonnes in 2009-10, as against the fourth advance estimates of 117.70 million tonnes for the kharif crop in 2008-09 and a target of 125.15 million tonnes for 2009-10.

Overall production of kharif cereals in 2009-10 has shown a decline of 18.51 million tonnes over 2008-09.

In terms of acreage, the kharif 2009-10 season saw a decline of nearly 6.5 per cent or 46.18 lakh ha in the area covered under foodgrains. Almost the entire decline in this acreage was confined to the kharif rice crop. Some of this decline in acreage may have been made up by the increased acreage in the rabi season.

Industry and Infrastructure
The cyclical slowdown in the industrial sector, which began in 2007-08 and got compounded by the global commodity price shock and the impact of the global slowdown during the course of 2008, was arrested at the beginning of 2009-10. After the first two months of 2009-10, there were clear signs of recovery. While the CSO’s advance estimates place industrial-sector growth at 8.2 per cent, as against 3.9 per cent in 2008-09, the IIP industrial growth is estimated at 7.7 per cent for the period April-November 2009-10, significantly up from 0.6 per cent during the second half of 2008-09. The manufacturing sector, in particular, has grown at the rate of 8.9 per cent in 2009-10.

Core industries and infrastructure services, led by the robust growth momentum of telecom services and spread across power, coal and other infrastructure like ports, civil aviation and roads, have also shown signs of recovery in 2009-10. In the current fiscal, electricity generation emerged from the lacklustre growth witnessed in the previous year and equalled its performance in 2007-08. That this was achieved despite constraints imposed by the inadequate availability of coal and the dismal hydel generation scenario due to the sub-normal monsoon, attests well to its potential.

The domestic supply of crude oil remained around 34 million metric tonnes (mmt) and natural gas at about 32 billion cubic metric tonnes during the past five years. With 15 new oil and gas discoveries during 2009-10, the domestic availability is expected to improve. During 2009-10, the projected production for crude oil is 36.7 mmt, which is about 11 per cent higher than the actual crude oil production of 33.5 mmt in 2008-09.

In 2009-10, as against the stipulated target of developing about a 3,165 km of national highways under various phases of the National Highway Development Project (NHDP), the achievement up to end November 2009 has been about 1,490 km. Similarly, as against the 2009-10 target of about 9,800 km for awarding projects under various phases of the NHDP, projects totalling a length of about 1,285 km have been awarded up to end November 2009.

The service sector which has been India’s workhorse for well over a decade has continued to grow rapidly. Following the NAS classification, it comprises the sub-sectors trade, hotels, transport and communications; financing, insurance, real estate and business services; and community, social and personal services. As against a growth of 9.8 per cent in 2008-09 it grew at 8.7 per cent in 2009-10.

Savings and investments
Gross domestic savings (GDS) at current prices in 2008-09 were estimated at Rs 18,11,585 crore, amounting to 32.5 per cent of GDP at market prices as against 36.4 per cent in the previous year. The fall in the rate of GDS has mainly been due to the fall in the rates of savings of the public sector (from 5.0 per cent in 2007-08 to 1.4 per cent in 2008-09) and private corporate sector (from 8.7 per cent in 2007-08 to 8.4 per cent in 2008-09).

In respect of the household sector, the rate of saving has remained at the same level of 22.6 per cent in 2007-08 and 2008-09. The rate of GDS on the new series increased from 32.2 per cent in 2004-05 to 36.4 per cent in 2007-08 before declining to 32.5 per cent in 2009-10, as against the old series where it rose from 31.7 per cent in 2004-05 to 37.7 per cent in 2007-08.

Gross domestic capital formation (GDCF) at current prices (adjusted for errors and omissions) increased from Rs18,65,899 crore in 2007-08 to Rs19,44,328 crore in 2008-09 and at constant (2004-05) prices, it decreased from Rs16,22,226 crore in 2007- 08 to Rs15,57,757 crore in 2008-09. The rate of gross capital formation at current prices rose from 32.7 per cent in 2004-05 to 37.7 per cent in 2007-08 before declining to 34.9 per cent in 2008-09.

The sectoral investment rate is a useful indicator of the direction of new investments. While the overall growth of investment in India was in the range of 15 to 16 per cent per annum during the last few years, it plunged to -2.4 per cent in 2008-09 as a result of the external shock-led slowdown. At sectoral level, there has been a welcome rebound in the growth rate of investment in the agricultural sector, which grew at 16.5 per cent and 26.0 per cent in 2007-08 and 2008-09 respectively. This is in contrast to the growth rate of 1.4 per cent recorded in
2006-07.

Prices and Inflation
The year-on-year WPI inflation rate was fairly volatile in 2009-10. It was 1.2 per cent in March 2009 and then declined continuously to become negative during June-August 2009, assisted in part by the large statistical base effect from the previous year. It turned positive in September 2009 and accelerated to 4.8 per cent in November 2009 and further to 7.3 per cent in December 2009. For March to December 2009 period WPI inflation was estimated at 8 per cent.

Year-on-year inflation in the composite food index (with a weight of 25.4 per cent) at 19.8 per cent in December 2009 was significantly higher than 8.6 per cent in previous year. In respect of food articles, inflation on year-on-year basis in December was 19.2 per cent and on fiscal-year basis (i.e. over March 2009) it was 18.3 per cent. At the same time, the composite non-food inflation within the manufactured group of the WPI (with a weight of 53.7 per cent) at 2.4 per cent in December 2009, was lower than the 6.7 per cent recorded in previous year.

A significant part of this inflation can be explained by supply-side bottlenecks in some of the essential commodities, precipitated by the delayed and sub-normal south-west monsoons as well as drought-like conditions in some parts of the country. The delayed and erratic monsoons may also have prevented the seasonal decline in prices, normally seen during the period from October to March for most food articles other than wheat, from setting in. At the same time, it could be argued that excessive hype about kharif crop failure, not taking into account the comfortable situation in respect of food stocks and the possibility of an improved rabi crop, may have exacerbated inflationary expectations encouraging hoarding and resulting in a higher inflation in food items. This is supported by the estimates on shortfall in production/availability of major food items in 2009-10 for rice and wheat, as also for some other items, except pulses. In the case of sugar, delay in the market release of imported raw sugar may have contributed to the overall uncertainty, thereby allowing prices to rise to unacceptably high levels in recent months.

The implicit deflator for GDP at market prices defined as the ratio of GDP at current prices to GDP at constant prices is the most comprehensive measure of inflation on annual basis, Unlike the WPI, the GDP deflator also covers prices in the services sector which now accounts for well over 55 per cent of the GDP. Overall inflation, as measured by the aggregate deflator for GDPMP, increased from 4.7 per cent in 2005-06 to 5.6 per cent in 2006-07 and then declined to 5.3 per cent in 2007-08, before rising again to 7.2 per cent in 2008-09. It has been estimated at 3.6 per cent in 2009-10 as per the advance estimates.

External-sector Developments
The global economy, led by the Asian economies especially China and India, has shown signs of recovery in fiscal 2009-10. While global trade is gradually picking up, the other indicators of economic activity such as capital flows, assets and commodity prices are more buoyant.

As per the latest data for fiscal 2009-10, exports and imports showed substantial decline during April-September (H1) of 2009-10 vis-à-vis the corresponding period in 2008-09. However, there has been improvement in the balance of payments (BoP) situation during H1 of 2009-10 over H1 of 2008-09, reflected in higher net capital inflows and lower trade deficit. The trade deficit was lower at US$ 58.2 billion during H1 (April-September) of 2009 as compared to US$ 64.4 billion in April-September 2008 mainly on account of decline in oil import.

The net invisibles surplus (invisibles receipts minus invisibles payments) stood lower at US$ 39.6 billion during April-September of 2009 as compared to US$ 48.5 billion during April-September 2008. The current account deficit increased to US $ 18.6 billion in April-September 2009, despite a lower trade deficit, as compared to US $ 15.8 billion in April-September 2008, mainly due to the lower net invisibles surplus.

Net capital flows to India at US $ 29.6 billion in April-September 2009 remained higher as compared to US $ 12.0 billion in April-September 2008. All the components, except loans and banking capital that comprise net capital flows, showed improvement during April-September 2009 from the level in the corresponding period of the previous year.

Net inward FDI into India remained buoyant at US$ 21.0 billion during April-September 2009 (US $ 20.7 billion in April-September 2008) reflecting better growth performance of the Indian economy. Due to large inward FDI, the net FDI (inward FDI minus outward FDI) was marginally higher at US$ 14.1 billion in April-September 2009, reflecting better growth performance of the Indian economy.

Portfolio investment mainly comprising foreign institutional investors’ (FIIs) investments and American depository receipts (ADRs)/global depository receipts (GDRs) witnessed large net inflows (US $ 17.9 billion) in April-September 2009 (net outflows of US $ 5.5 billion in April-September 2008) due to large purchases by FIIs in the Indian capital market reflecting revival in growth prospects of the economy and improvement in global investors’ sentiment.

Given the uncertain global context, the government did not fix an export target for 2009-10. Instead, the Foreign Trade Policy (FTP) 2009-14 set the objective of an annual export growth of 15 per cent with an export target of US$ 200 billion by March 2011. With the deepening of the global recession, the beginning of 2009-10 saw acceleration in the fall of export growth rate. The upwardly revised export figures for the first half of 2008-09 also contributed to the faster decline in the growth rate. While the export growth rate was a negative 22.3 per cent in April-November 2008-09, in November 2009, it became a positive 18.2 per cent after a 13-month period of negative growth. This significant turnaround is due to the low base figures in November 2008 (at $11.2 billion compared to $14.1 billion in October 2008 and $13.4 billion in December 2008). The export growth rate in November 2009 over October 2009 was marginally positive at 0.04 per cent. In December 2009 the recovery in export growth has continued with a positive year-on-year growth of 9.3 per cent and a growth of 10.7 per cent over the previous month.

During 2009-10 (April-December) import growth was a negative 23.6 per cent accompanied by a decline in both POL and non-POL imports of 29.8 per cent and 20.7 per cent respectively. Gold and silver imports registered negative growth of 7.3 per cent primarily on account of the volatility in gold prices. The continuous rise in prices of gold also dampened the demand. Non-POL non-bullion imports declined by 22.4 per cent reflecting slowdown in industrial activity and lower demand for exports. Import growth was at a positive 27.2 per cent in December 2009 due partly to the base effect and partly the 42.8 per cent increase in the growth of POL products with the pick-up in oil prices and industrial demand. Non-POL items also registered a significant growth in imports at 22.4 per cent, despite a high negative growth of gold and silver imports.

Trade deficit fell by 28.2 per cent to US$ 76.2 billion (as per customs data) in 2009-10 (April– December) from US$ 106 billion in the corresponding period of the previous year. There have been significant changes in the composition and direction of both exports and imports in this period.

During fiscal 2009-10, foreign exchange reserves increased by US$ 31.5 billion from US$ 252.0 billion in end March 2009 to US$ 283.5 billion in end December 2009. Out of the total accretion of US$ 31.5 billion, US$ 11.2 billion (35.6 per cent) was on BoP basis (i.e excluding valuation effect), because of higher inflows under FDI and portfolio investments, while accretion of US$ 20.3 billion (64.4 per cent) was on account of valuation gain due to weakness of the US dollar against major currencies.

Besides, the Reserve Bank of India (RBI) concluded the purchase of 200 metric tonnes of gold from the IMF, under the IMF’s limited gold sales programme at the cost of US$ 6.7 billion in the month of November 2009. Further, a general allocation of SDR 3,082 million (equivalent to US$ 4,821 million) and a special allocation of SDR 214.6 million (equivalent to US$ 340 million) were made to India by the IMF on August 28, 2009 and September 9, 2009, respectively.

Monetary Policy
Since the outbreak of the global financial crisis in September 2008, the RBI followed an accommodative monetary policy. In the course of 2009-10, this stance was principally geared towards supporting early recovery of the growth momentum, while facilitating the unprecedented borrowing requirement of the government to fund its fiscal deficit. The fact that the latter was managed well with nearly two-thirds of the borrowing being completed in the first half of the fiscal year not only helped in checking undue pressure on interest rates, but also created the space for the revival of private investment demand in the second half of the year.

The transmission of monetary policy measures continues to be sluggish and differential in its impact across various segments of the financial markets. The downward revisions in policy rates announced by the RBI post-September 2008 got transmitted into the money and G-Sec markets; however, the transmission was slow and lagged the in the case of the credit market. Though lending rates of all categories of banks (public, private and foreign) declined marginally from March 2009 (with benchmark prime lending rates [BPLR] of scheduled commercial banks [SCBs] having declined by 25 to 100 basis points), the decline was not sufficient to accelerate the demand for bank credit. Consequently, while borrowers turned to alternate sources of possibly cheaper finance to meet their funding needs, banks flush with liquidity parked their surplus funds under the reverse repo window.

Demand for bank credit/non-food credit remained muted during 2009-10. It was only from November 2009 that some signs of pick-up became evident. On financial-year basis (over end March), growth in non-food credit remained negative till June 2009. It picked up thereafter, only to hover between 0.0 to 1.8 per cent till mid-September 2009. Consistent growth in non-food credit was recorded only after November 2009.

Growth in sectoral deployment of gross bank credit on a year-on-year basis (as on November 20, 2010) shows that retail credit has not picked up during 2009-10. While growth in credit to agriculture remained more or less the same as on the corresponding date of the preceding year, for the other broad sectors–industry, personal loans and services—growth in credit decelerated as compared to the corresponding period of the preceding year.

Fiscal Policy Developments
The fiscal expansion undertaken by the Central government as a part of the policy response to counter the impact of the global economic slowdown in 2008-09 was continued in fiscal 2009-10. The expansion took the form of tax relief to boost demand and increased expenditure on public projects to create employment and public assets. The net result was an increase in fiscal deficit from 2.6 per cent in 2007-08 to 5.9 per cent of the revised GDP (new series) in 2008-09 (provisional) and 6.5 per cent in the budget estimates for 2009-10 (as against 6.8 per cent of the GDP on the old series, reported earlier). Thus the fiscal stimulus amounted to 3.3 per cent of the GDP in 2008-09 and 3.9 per cent in 2009-10 from the level of the fiscal deficit in 2007-08.

As part of the fiscal stimulus, the government also enhanced the borrowing limits of the State governments by relaxing the targets by 100 basis points. As a result, the gross fiscal deficit of the States combined rose from 1.4 per cent of the GDP in 2007-08 to 2.6 per cent in 2008-09 (revised estimates [RE]) and was estimated at 3.2 per cent of the GDP in 2009-10 (BE).

The relative success of the fiscal stimulus in supporting effective demand, particularly the consumption demand, in 2008-09 and 2009-10 could be traced to its composition. The approach of the government was to increase the disposable income in the hands of the people, for instance by effecting reductions in indirect taxes (excise and service tax) and by expanding public expenditure on programmes like the National Rural Employment Guarantee Act (NREGA) and on rural infrastructure.

The implementation of the Sixth Pay Commission recommendations and the debt relief to farmers also contributed to this end. The fact that the approach worked is attested to by the GDP growth rate and more specifically by the growth in private consumption demand in 2008-09 and also in 2009-10 as reflected in the relevant data on the NAS new series. Consumption expenditure, by its very nature, has short lags, and affects demand quickly, with little or no effect on productivity, while productive infrastructure expenditure takes much longer to translate into effective demand. The recovery having taken root now necessitates a review of public spending. It has to be geared towards building medium-term productivity of the economy and making up for the decline in investment growth in certain sectors of the economy.

Social-sector Development
Fiscal 2009-10 saw the strengthening of several public initiatives and programmes with a view to cushioning the impact of the global slowdown on the more vulnerable segments of the population in the country. While some of these programmes were a part of the ongoing interventions to give effect to a more inclusive development strategy, there were some measures that were undertaken as a direct response to the slowdown of growth, especially in the tradable sectors of the economy. Thus emphasis in favour of higher allocation to social-sector development given in recent years continued to be reflected in the allocations under the Union Budget 2009-10. The share of Central government expenditure on social services, including rural development in total expenditure (Plan and non-Plan), increased to 19.46 per cent in 2009-10 (BE) from about 10.46 per cent in 2003-04. Similarly, expenditure on social services by general government (Centre and States combined) as a proportion of total expenditure increased from 19.9 per cent in 2004-05 to 23.8 per cent in 2009-10 (BE).

A major concern was regarding the possibility of a rise in unemployment due to the slowdown of the economy. While comprehensive employment data for the current financial year are not available, some sample surveys conducted by the Labour Bureau, Ministry of Labour and Employment, government of India, indicated job losses in the wake of the global financial crisis, which seemed to reverse in later part of 2009-10. Employment is estimated to have declined by 4.91 lakh during the third quarter (October-December) of 2008; it increased by 2.76 lakh during January-March 2009, followed by a decline of 1.31 lakh during April-June 2009, and then an increase of 4.97 lakh during the second quarter (July-September) 2009.

Under the NREGA, which is a major rural employment initiative, during the year 2009-10, 4.34 crore households were provided employment till December 2009.

Road Ahead
There are some deep changes that have taken place in India, which suggest that the economy’s fundamentals are strong. First, the rates of savings and investment have reached levels that even ten years ago would have been dismissed as a pipedream for India. On this important dimension, India is now completely a part of the world’s fast growing economies.

In 2008-09 gross domestic savings as a percentage of GDP were 32.5 per cent and gross domestic capital formation 34.9 per cent. These figures, which are a little lower than what had been achieved before the fiscal stimulus was put into place, fall comfortably within the range of figures one traditionally associated with the East Asian economies. Since these indicators are some of the strongest correlates of growth and do not fluctuate wildly, they speak very well for India’s medium-term growth prospects. It also has to be kept in mind that as the demographic dividend begins to pay off in India, with the working age-group population rising disproportionately over the next two decades, the savings rate is likely to rise further.

Second, the arrival of India’s corporations in the global market place, and informal indicators of the sophisticated corporate culture that many of these companies exhibit, lends to the optimistic prognosis for the economy in the medium to long run.

In the medium term it is reasonable to expect that the economy will go back to the robust growth path of around 9 per cent that it was on before the global crisis slowed it down in 2008. To begin with, there has been a revival in investment and private consumption demand, though the recovery is yet to attain the pre-2008 momentum. Second, Indian exports have recorded impressive growth in November and December 2009 and early indications of the January 2010 data on exports are also encouraging. Further, infrastructure services, including railway transport, power, telecommunications and, more recently but to a lesser extent, civil aviation, have shown a remarkable turnaround since the second quarter of 2009-10. The favourable capital market conditions with improvement in capital flows and business sentiments, as per the RBI’s business expectations survey, are also encouraging. Finally, the manufacturing sector has been showing a buoyancy in recent months that was rarely seen before. The growth rate of the index of industrial production for December 2009 was a remarkable 16.8 per cent. There is also a substantial pick-up in corporate earnings and profit margins.

Hence, going by simple calculations based on the above-mentioned variables, coupled with the fact that agriculture did have a set-back in 2009 and is only gradually getting back to the projected path, a reasonable forecast for the year 2010-11 is that the economy will improve its GDP growth by around 1 percentage point from that witnessed in 2009-10. Thus, allowing for factors beyond the reach of domestic policy-makers, such as the performance of the monsoon and rate of recovery of the global economy, the Indian GDP can be expected to grow around 8.5, with a full recovery breaching the 9 per cent mark in 2011-12.

Geographical Epithets

Britain of the South : : : New Zealand
China’s Sorrow : : : River Hwang Ho
City of Dreaming Spires : : : Oxford (England)
City of Eternal Springs : : : Quito (S.America)
City of Flowers : : : Cape Town (S.Africa)
City of Golden Gate : : : San Francisco (USA)
City of Magnificient Buildings : : : Washington (USA)
City of Quiet thoroughfares : : : Venice
City of Seven Hills : : : Rome (Italy)
City of Skyscrapers : : : New York (USA)
Cockpit of Europe : : : Belgium
Dark Continent : : : Africa
Emerald Isle : : : Ireland
Empire City : : : New York
Eternal City of Hopes : : : Rome, Italy
Forbidden City : : : Lhasa (Tibet)
Garden City : : : Chicago
Garden in the desert : : : Ethiopia
Garden of England : : : Kent (England)
Gate of tears : : : Strait of bab-el-Mandeb
Golden City : : : Johannesburg
Gibraltar of Indian : : : Ocean Aden
Gift of Nile : : : Egypt
Granite City : : : Aberdeen
Hanging Valleys : : : Valley of Switzerland
Hermit Kingdom : : : Korea
Herring Pond : : : Atlantic Ocean
Holy Land : : : Palestine
Human Equator of the Earth : : : Himalayas
Island Continent : : : Australia
Island of Cloves : : : Zanzibar
Island of Pearls : : : Bahrain (Persian Gulf)
Islands of Sunshine : : : West Indies
Kashmir of Europe : : : Switzerland
Key to Mediterranean : : : Gibraltar
Land of Five Seas : : : South West Asia
Land of Lakes : : : Scotland
Land of Golden Pagoda : : : Myanmar
Land of Kangaroo : : : Australia
Land of Golden Fleece : : : Australia
Land of Lilies : : : Canada
Land of Maple : : : Canada
Land of Midnight Sun : : : Norway
Land of Morning Calm : : : Korea
Land of Rising Sun : : : Japan
Land of Setting Sun : : : United Kingdom
Land of Thousand Elephants : : : Laos
Land of Thousand Lakes : : : Finland
Land of Thunderbolt : : : Bhutan
Land of White Elephant : : : Thailand
Loneliest Island : : : Tristan De Gumha
Manchester of Japan : : : Osaka (Japan)
Pillars of Hercules : : : Straits of Gibraltar
Play Ground of Europe : : : Switzerland
Quaker City : : : Philadelphia
Queen of the Adriatic : : : Venice
Roof of the World : : : The pamirs (Tibet)
River in the Sea : : : Gulf Stream
Sickman of Europe : : : Turkey
Sugar Bowl of the world : : : Cuba
Venice of the East : : : Bangkok
Venice of the North : : : Stockholm
White City : : : Belgrade
Windy City : : : Chicago
Workshop of Europe : : : Belgium
World’s Loneliest Island : : : Tristan Da Cunha
Yellow River : : : River Hwang Ho, China

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