Banking and Economics GK - September 2012

Special Drawing Rights (SDRs) are international reserve assets created by the IMF to supplement member countries' official reserves. They were established in 1969 and are based on a basket of major currencies (USD, EUR, CNY, JPY, GBP). The World Bank and IBRD are focused on development lending, WTO on trade rules, and OECD on economic policy - none maintain SDRs.

The Cabinet Committee on Economic Affairs approved the disinvestment of 10.82% government stake in Steel Authority of India Limited (SAIL) on July 20, 2012. This was part of the government's disinvestment program to raise revenue while retaining majority control. ONGC, NTPC, and IOC also saw disinvestment approvals in different years.

India conducted its Sixth Economic Census in 2012. The Economic Census is a complete count of all entrepreneurial units located within the geographical boundaries of the country. The first was conducted in 1977, second in 1980, third in 1990, fourth in 1998, fifth in 2005, and sixth in 2012.

ICRA (formerly Investment Information and Credit Rating Agency), S&P (Standard & Poor's), and CARE (Credit Analysis and Research Ltd) are all well-known credit rating agencies operating in India. IRSIL appears to be the odd one out as it is not a recognized credit rating agency - it could be a garbled or incorrect option.

The Index of Industrial Production (IIP) is an indicator that measures the changes in the volume of production in Indian industrial sector. It includes three broad sectors - Manufacturing, Mining, and Electricity. Manufacturing has the highest weight in the index followed by Mining and Electricity.

Raghuram Rajan was appointed as the Chief Economic Advisor to the Government of India in the Finance Ministry on August 29, 2012. He later went on to become the Governor of the Reserve Bank of India. Kaushik Basu was the previous CEA.

The Central Statistical Organisation (CSO), now part of the National Statistical Office (NSO), is responsible for estimating National Income in India. It calculates GDP, GNP, and other national income aggregates using the income, production, and expenditure approaches. The Planning Commission was abolished in 2014.

All three statements are correct. Maharatna PSUs are indeed the largest public sector companies in India with greater operational and financial autonomy. As of September 2012, there were five Maharatna companies: ONGC, NTPC, SAIL, Coal India, and BHEL. They could invest up to Rs. 5000 crores in projects without government approval.

The Planning Commission (now NITI Aayog) lowered the annual average economic growth target to 8.2% for the 12th Five Year Plan (2012-2017) from the original 9% target. This revision was due to lower economic growth, global slowdown, and domestic policy bottlenecks that affected the economy.

The Government of India decided on September 14, 2012 to allow foreign airlines to invest up to 49% in Indian carriers. This was a significant policy change that opened up the aviation sector to foreign direct investment, allowing global airlines to pick up stakes in Indian domestic carriers.

RBI classifies real estate and commodities as sensitive sectors due to their price volatility and higher risk profiles. These sectors require greater regulatory scrutiny and higher capital provisions from banks. Money market and capital market are financial systems, not sensitive sectors in this regulatory context.

Mauritius has historically been the largest source of FDI into India due to its tax treaty advantages and routing of international investments. The India-Mauritius Double Taxation Avoidance Agreement provided significant benefits to investors. USA, China, Japan, and UAE are important investors but not the largest during this period.

Chahbahar Port is located in southeastern Iran on the Gulf of Oman. India has been developing this port to bypass Pakistan and gain access to Afghanistan and Central Asia. It represents a strategic investment in India's connectivity and trade routes to the region.

India and Qatar signed six agreements in April 2012 covering energy cooperation, oil and gas exploration, and economic partnership. Qatar is a major supplier of LNG to India, making this relationship strategically important for India's energy security. The agreements aimed to strengthen bilateral trade and investment.

ADB approved a $300 million loan in September 2012 specifically for upgrading 254 km of state highways in Bihar, focusing on improving connectivity and road quality in one of India's poorest states. This project was part of ADB's broader infrastructure development support to India, with particular focus on underserved regions needing road network improvements.

Schroder Singapore Holdings acquired a 25% stake in Axis Bank's subsidiary in September 2012 as part of Axis Bank's strategy to bring in foreign institutional investors and strengthen its capital base. This transaction represented significant foreign investment in India's growing private banking sector and Axis Bank's expansion efforts.

India's Look East Policy is primarily focused on developing economic and strategic relations with Southeast Asian countries (Indo-China region). It aims to increase trade, investment, and connectivity with ASEAN nations like Myanmar, Thailand, Vietnam, and Singapore. The policy is not about cultural values, uranium imports, or defense collaborations specifically.

In September 2012, RBI raised ECB limits to increase foreign capital inflow (statement 1 is true). The new regulation allowed companies to borrow up to 75% of average forex earnings over three years OR 50% of the highest year's earnings, whichever is higher (statement 2 is true). Statement 3 about USD 5 billion limit is incorrect - the $5 billion limit applied to a different category and wasn't automatically applicable here.