UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on Economy to check your progress. 🚨 Click Here to read the UPSC Essentials magazine for May 2025. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨 QUESTION 1 With reference to the FASTag, consider the following statements: 1. It is managed by the National Payments Corporation of India (NPCI) and the National Highways Authority of India (NHAI). 2. It was launched in 2014 as a pilot project and made mandatory at every toll plaza in the country in 2021. 3. In its new annual pass scheme, there is no limitation on the number of trips. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — The Minister of Road Transport and Highways introduced an annual FASTag-based permit of Rs 3,000 for "hassle-free highway travel." — FASTag is an electronic toll collecting system operated by the National Payments Corporation of India (NPCI) by the National Highways Authority of India (NHAI). A FASTag sticker is typically placed on the windscreen of a vehicle. Hence, statement 1 is correct. — It was established as a trial initiative in 2014 and will become required at all toll plazas in the country by 2021. Hence, statement 2 is correct. — The new annual pass plan, enabled on the FASTag, will let private cars, jeeps and vans to pass via National Highway (NH) and National Motorway (NE) pay plazas for the specified term without incurring per-trip user fees. — Once the Annual Pass has completed 200 travels or one year from the date of activation, it will automatically return to a regular FASTag. However, after the 200-trip limit is reached, the user may repurchase the Annual Pass, even if the one-year validity period has not yet expired. Hence, statement 3 is not correct. — The pass is not transferable and is only valid for the vehicle to which the FASTag is affixed and registered. Therefore, option (b) is the correct answer. QUESTION 2 With reference to the Strait of Hormuz, consider the following statements: 1. Around one-fifth of global liquid petroleum fuel consumption and global liquefied natural gas (LNG) trade transits through the strait. 2. It is a critical narrow waterway between Iran and Kuwait. 3. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. 4. India’s LNG imports from Qatar do not come through the Strait of Hormuz. How many of the statements given above are correct? (a) Only one (b) Only two (c) Only three (d) All four Explanation — The Strait of Hormuz is a narrow waterway between Iran and Oman that connects the Persian Gulf, the Gulf of Oman, and the Arabian Sea. Hence, statement 2 is not correct and statement 3 is correct. — The US Energy Information Administration (EIA) refers to it as the "world's most important oil transit chokepoint," with the strait handling around one-fifth of worldwide liquid petroleum fuel usage and liquefied natural gas (LNG) traffic. Hence, statement 1 is correct. — Much of India's oil comes from significant West Asian sources such as Iraq, Saudi Arabia, and the UAE and is transported to Indian ports via the Strait of Hormuz. The majority of India's LNG imports, which are primarily from Qatar, also pass through this critical choke point. Hence, statement 4 is not correct. Therefore, option (b) is the correct answer. QUESTION 3 With reference to the automobile loading terminals of the Indian Railways and region associated, consider the following pairs: 1. Chitpur - Eastern Railway 2. Hirakud - East Coast Railway 3. New Tinsukia - Northeast Frontier Railway How many of the pairs given above are correctly marked? (a) Only one (b) Only two (c) All three (d) None Explanation — Amid a campaign to reduce carbon emissions in the automobile sector, the Indian Railways' share of passenger vehicles shipped has climbed to more than 20% of total car production in the country in 2024-25, up from 1.7% in 2014-15. This has created a fresh opportunity for the railways to increase revenue while also fulfilling India's net zero emission objective by 2070. — The Ministry of Railways has also added many automobile loading terminals in recent years namely Chitpur (Eastern Railway), Penukonda (South Western Railway), Nasrala (Northern Railway), Nautanwa and Bakshi ka Talab (North Eastern Railway), Mesra (East Central Railway), Hirakud (East Coast Railway), Champaner and Chharodi (Western Railway), Baihata, Salchapra, Furkating, New Tinsukia, Jirania, Agthori (Northeast Frontier Railway), Loni, Khadki, AJNI, Vilad (Central Railway) etc. Therefore, option (c) is the correct answer. QUESTION 4 The French military aircraft and business jet maker Dassault Aviation will manufacture its best-selling business executive jet—the Falcon 2000—at Nagpur in partnership with: (a) Tata Advanced Systems Limited (b) Mahindra Aerospace (c) Hindustan Aeronautics Limited (d) Reliance Aerostructure Limited Explanation — Dassault Aviation, a French military aircraft and business jet manufacturer, will produce its best-selling business executive jet, the Falcon 2000, in Nagpur in collaboration with Reliance Group company Reliance Aerostructure Ltd (RAL). — At the Paris Air Show, the two firms announced a strategic cooperation for this goal, stating that the first Falcon 2000 plane built in India will be ready in 2028. — Dassault Aviation will construct Falcon 2000 jets outside of France for the first time in the company's long history. This pioneering endeavour will position India as a strategic hub for high-end business jet manufacture. — It is a momentous time for the Indian aerospace and manufacturing industries, as the landmark agreement allows India to join the elite club of countries building next-generation business jets, which includes the United States, France, Canada, and Brazil. Therefore, option (d) is the correct answer. QUESTION 5 As of May 2025, what is the correct chronological order of these countries in terms of economy from top to bottom? 1. United States 2. Germany 3. China 4. India 5. Japan Select the correct answer using the codes given below: (a) 1—2—3—4—5 (b) 1—3—5—2—4 (c) 1—5—4—3—2 (d) 1—3—2—4—5 Explanation — BVR Subrahmanyam, CEO of Aayog, announced that India had surpassed Japan to become the world's fourth largest economy. — Subrahmanyam, citing International Monetary Fund (IMF) figures, stated that India is now larger than Japan. Until 2024, India was the world's fifth largest economy. "It is only the US, China and Germany which are larger than India, and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy," Subrahmanyam told the crowd. — In its April World Economic Outlook (WEO) report, the IMF predicted that India would be the world's fourth largest economy by 2025, with a GDP of USD 4.19 trillion, ahead of Japan. — The IMF forecasts India's nominal GDP for 2025 (FY26) to be USD 4.187 billion, slightly higher than Japan's probable GDP of USD 4.187 billion. According to IMF figures, India's per capita income has doubled, from USD 1,438 in 2013-14 to USD 2,880 in 2025. Therefore, option (d) is the correct answer. 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