Time Allowed : 3 hours   Maximum Marks : 300

Candidates should attempt ALL questions strictly in accordance with the instructions given under each question.

Q. 1 Write about any two of the following (in about 150 words each) :    15 x 2 = 30

(a) US policy on Iran’s nuclear programme

Important Points for Answer:

• Issue         

• US attitude

• Policy

Answer: Iran claims its right to peaceful research in nuclear power, but US alleges that in the guise of peaceful energy research Iran wants to prepare nuclear weapons.

US is at hard-core opposition to Iran. US wants to drag Iran to the Security Council from the IAEA.

It scolds Iran for its alleged violation of NPT and some UN principles.

It took tough stand when Iran expelled IAEA inspectors from its territory. Means, it is totally anti-Iran. Some interest of US in Iran, regarding energy resources is there behind such attitude.

But China and Russia do not favour the policy and want IAEA to handle the problem of Iran. Even Russia proposed a dialogue with Iran on the issue.

They do not want US to interfere in Iran’s domestic matters particularly and generally Middle East.

(b) Terrorism : Sources in Pakistan and Afghanistan Points :

Important Points for Answer:

• Terrorism – spread 

•Sources in Pakistan

• Sources in Afghanistan

Answer: Terrorism has widely affected almost all parts of the world. Though it may be of local, regional or world origin, nowadays, some parts are being regarded as its main sources. Pakistan and Afghanistan have been pointed out as such areas by USA.

In Pakistan, Quetta is considered as a strong support-base for Taliban. Taliban’s activities are being organised and planned from here, according to some sources of information. In Afghanistan, main areas are Kabul, Khost, Jalalabad, Gardez, etc. in southern part. In the areas, making borders of Pakistan and Afghanistan, we can mention Waziristan mountain region. This area mainly comprises tribal parts in Pakistan. It is known as FATA i.e., Federally Administered Tribal Area. Terrorist activities have grown here.

To curtail such terrorism sources, US-NATO has taken some actions in identified areas of Pakistan and Afghanistan.

Suicide bombers, soldiers, civil terrorists and group of armies are being trained in these areas.

(c) Crippling the King in Nepal

Important Points for Answer:

• Incidents    

• Provisions 

• Effects

Answer: At the end, the King has to transfer power to democratically elected government in Nepal, pending election and Constitution formation. Agreement between Government and Maoist is also a step in this direction.

   –         Now the King in Nepal will be merely a nominal head. Title of His Majesty’s Government has been replaced by Nepal Government,

   –         Nepal’s forces were known as Royal Nepali Army (RNA). Now it will be called Nepali Army. Cabinet will appoint the chief of Army. King will be no longer the head of Army.

   –         Even King will come under perview of laws made by Parliament.

   –         King will have to pay taxes as an ordinary citizen.

   –         As now there is no requirement, The Raj Parishad (King’s advisory council) will be dissolved.

All these will make Nepal a fully Democratic State with all powers in the hands of, ultimately, citizens. Nepal has made agreement with Maoists also to include them in the main stream of politics.

Q. 2 Write about the following (in about 20 words each) :   2 × 5 = 10

(a) Simla Agreement

Answer: This agreement was entered into by India and Pakistan to end the war of 1971, in December, 1971. Indira Gandhi signed it.

(b) India-Israel cooperation in the field of agriculture

Answer: Indian – Israely companies enter into agreements for such cooperation. Biotechnology and drip-irrigation technology are main areas.

(c) Pakistan’s role in Sri Lanka

Answer: As Sri Lanka is emerging as a growing economy, and there is a political unrest due to LTTE, Pakistan is taking chances to get Sri Lanka’s favour as it can influence India in the subcontinent.

(d) Indo-US military cooperation

Answer: India consented to the Kick lighter proposals of USA. Both had some joint military and naval exercises to increase cooperation.

(e) Nuclear Non-proliferation Treaty

Answer: The NPT aims to prevent spread of Nuclear Weapons and related technology. It was entered into in 1968. India and Pakistan have not signed it.

Q. 3 Write about the following (in about 20 words each) :   2 × 5 = 10

(a) Contribution of the NRIs to GCC countries

Answer: Indians employed there gave their support and services to the development of Gulf countries. Indian labour, technicians, doctors and software engineers are at great demand there.

(b) Future of Indians in Fiji

Answer: After the removal of Mahendra Chaudhari’s Government, the recent development show a trend for possibilities of peaceful existence of Indians in Fiji.

(c) Indians in the House of Lords, UK

Answer: Recently Lord Paul Swaraj gained a seat in the House of Lords, UK. This will help boost interest of Indian Community residing in UK.

(d) Contribution of Indians in Silicon Valley

Answer: Indian software and technology experts have help Silicon Valley’s growth. Vinod Khosla is one of such Indians.

(e) Exodus of persons of Indian origin from Uganda

Answer: Dictator Idi Amin had expelled many Indian from Uganda. It had caused problems for Indians. Yet there are about fifteen thousand Indians in Uganda.

Q. 4 Answer any one of the following (in about 250 words) : 30

(a) Discuss the importance of World Trade Organisation (WTO) to Indian economy in the light of various opportunities and challenges at the global level.

Important Points for Answer:

• Opportunities : World Market, Clothes and Textiles, Investment,

• Agriculture, Trade-share

• Challenges : Competitiveness, Agriculture, Patent

• Conclusion



   –         World Market : WTO aims at boundaryless trade-market. Its provision when effectuated in letter and spirit will open for Indian products and services markets of all member countries. This will help utilise India’s wide labour potentials.

   –         Clothes and Textiles : In textile industries, India can expect much growth after Multi Fibre Agreement. India’s export is being increased in this sector. This sector earns India a big amount of foreign currencies.

   –         Investment : While accepting the WTO norms, free competition is allowed in India for foreign investors. Due to liberalization of laws and regulations, due to WTO, huge inflow of foreign investment is coming in the country.

   –         Agriculture : Though India is technologically yet unable to squeeze all potential it possesses in this sector, but when the research and development in Biotechnology, irrigation and modern techniques will start to give fruits in near future, it will help India to unexpected high extent.

   –         Trade Share : Having the benefits of WTO membership, Indian foreign trade has grown year by year. India’s share in total world trade has increased from 0 5% to about 1 percent.


   –         Competitiveness : The country needs to remove all protective measures. It will require Indian industries to be very much competitive to the world level.

   –         Agriculture : Our agricultural production have to face unnecessary troubles from the developed countries. They provide subsidies to agriculture and we are required to phase out agricultural subsidies. Terms are being discussed.

   –         Patent : Our industries, especially pharmaceuticals will have to face some challenges due to patent regimes of WTO.

Conclusion :

             WTO – World Trade Organisation can help Indian economy grow to its peak by providing enough opportunities to utilize its potentials. Even challenges, in long term will improve condition of our economy.

(b) Describe the main sources of Industrial finance in India. How could India be benefitted from recent developments in International finance ?

Important Points for Answer:

• Sources : IDBI, SIDBI, SFCs, IRBI

• Benefits from international finance


Sources :

   –         IDBI : Industrial Development Bank of India was established in 1964. Its main objective is to provide financial credit for development of big and small industries.

   –         SIDBI : Small Industrial Development Bank of India was established to help SSIs. It helps them by promoting and financing.

             SIDBI also provides assistance to modernise small scale industries in/technological field, to make them competitive.

   –         SFCs : State Financial Corporations working in states provide loans to needy industries. They also promote shares and debentures, If required’, they would provide guarantee for loans of third parties.

   –         IRBI :Industrial Reconstruction Bank of India has main aim to revive sick industries and make them able to exist and compete in market, by assistance.

Some other sources may also help industrial finance. But these are main sources.

On the International front, recent developments have make the horizons of such financial assistance very wide. They helped in easying rules and regulations for such assistance. Foreign technological assistance can help Indian industrial modernization.

Emense opportunities of investment have been created by foreign Direct and Institutional investments.

When domestic capital cannot suffice the demand of industrial requirements, capital flow from international flora is now possible in India to supplement domestic savings and capital sources.

Such liberalization has lead to develop infrastructural and technological base for Indian economy. Development of financing facilities in international area is obviously large and that makes India’s world trade grow.

Q. 5 Answer any two of the following (in about 150 words each) : 15 x 2 = 30

(a) Discuss the role of public sector during the post-reform period of Indian economy.

Important Points for Answer:

• Changes in post-reform period        

•PSUs role

Answer: Post-reform period shows much development in Public Sector Units. Liberalization, Privatisation and Globalisation has changed attitude and structure of PSUs.

Government policies have been directed to make them much more autonomous and this autonomy is utilised by them for growth.

PSUs grow in open market. Post-reform period removed their monopoly. They make themselves more competitive to survive, in the market led economy.

Even in this period, when abundant in India, they have fulfilled the requirement of people. They do not only concentrate on profit but have efficiently serve the goal of socialism.

Removing corruptions, improving efficiency and overcoming deficiency, they won trust of people in stock market also.

Profitability and foreign partnership of PSUs have provided Indian economy good amount of capital and service.

Their public issues, profitable contract, areas of focus, commercial attitude and competitive ability are praiseworthy in post-reform period.

(b) Examine the effects of globalisation on poverty removal in India.

Important Points for Answer:

• Focus of Globalisation       


• Release of public money

Answer: We can discuss various aspects of Globalisation on poverty removal in India.

The areas of focus for investment have been almost those which do not help create job opportunities for poor-illiterate labour forces. Yet, technologically advanced industries have attracted educated youth to employment. Capital is mostly directed to production of those goods and services which are not labour intensive and so less chances for employment, ruling out possibilities of poverty removal.

Investment has even created disparities among classes of people and among regions of India. For example, Maharashtra, Delhi, etc. receive great part of FDI while BIMARU states have less on their part. These disparities also widen gap and create poverty.

On the other hand, Globalisation has made government free to invest on many fields and so that fund, now, can be utilise for poverty alleviation programmes and schemes. Government could privatise PSUs and the released funds were allocated to social programmes.

(c) What are the implications of gender disparities in India ?

Important Points for Answer:

• Gender inequality   

• Implications

Answer: Gender inequality is seen, in India, as less number of female than male.

Average sex-ratio is 933 female per 1000 male. Less education rate among female as compared to male.

Apart from these, and due to these, the following implications are resulted :

   –         Women do not participate in the main stream economic activities. This make India’s almost half population directly dependent, apart from children and old persons.

   –         In social field, female are domestically supressed and they do not enjoy respectable position. They are not regarded as intelligent and powerful as male.

   –         Politically they do not participate and even where they participate as a voter or representative, mostly they are used as rubber-stamps in the hands of their male relatives.

   –         They are generally devoted to household work in India’s patrimonial society. They are not properly educated and so cannot deliver proper training to children.

   –         Such under-privileged condition of female lead them to face domestic violence, sexual abuse at working place and improper opportunities for progress in every areas of life.

Q. 6 Answer the following (in about 20 words each) :         2 × 15 = 30

(a) What is Phillips curve ?

Answer: It is proposed by prof. A. W. H. Phillips. It shows relationship between the percentage of money wages versus the level of unemployment. It shows that the lower unemployment, the high the rate of change of wages.

(b) What is Hundi ?

Answer: It is a bill of exchange. Person A gives an order to pay to another person C; the amount written in the Hundi, to the bearer, i.e. person who holds the Hundi.

(c) What is twin deficit ?

Answer: Twin deficit is fiscal deficit and current account deficits. For India, it is about 11% of GDP. When both deficits occur together, that is called twin deficit.

(d) What is the main difference between free trade area and common market ?

Answer: Free Trade Area is a policy among a group of countries, limited to the members, e.g., SAARC.

Common market implies uniform tariff policy by members with outsiders. Among members; free trade is practised e.g., EU.

(d) What is forward currency market ?

Answer: It is a mechanism in the city of London. It can help enhance profit and reduce risk of fluctuations in international trade.

(f) What is offshore currency market ?

Answer: It is a situation where currency is sold when external demand for a currency exceeds liberation of that currency. It depends on the growth of an economy.

(g) What is Laffer curve ?

Answer: This curve shows that there is one optional tax rate. This rate can give maximum tax revenue and boost production. Change from this rate may have negative impact.

(h) What are Eurobonds ?

Answer: The bonds that can be issued in one country but can also be traded in other countries in Euro currency are called Eurobonds.

(i) What is disguised unemployment ?

Answer: When people seem to be employed but they are infact not have added any production on their part, e.g. Indian agriculture where more persons than requirement are employed.

(j) What are nifty and the nifty junior ?

Answer: Both are Stock Market Indexes. Nifty has 50 companies on its list. Nifty Junior also has 50 but smaller companies.

(k) What is Agri-Trade ?

Answer: Trade of agriculture and related products to promote export of fruits, vegetables, flowers, etc. This helps growth and commercialisation of Agriculture.

(l) What is CEMA bloc ?

Answer: The Council for Mutual Economic Assitance (CEMA) – 1949 was formed by the Soviet Union against NATO. Balkan states joined it.

(m) What is rolling settlement ?

Answer: In rolling settlement system, trade is allowed to set off next day or after a period of days.

“Straight through” process is used. This practice is followed in stock markets also.

(n) What is the difference between Green Box subsidies and Blue Box subsidies ?

Answer: Both are under the WTO. Green box do not related to any particular product, while Blue Box requires the farmers to accept some conditions and limitations.

(o) What are non-factor services in India’s balance of payments ?

Answer: Non-factor services have been emerged as a key factor in India’s invisible trade, in the period of 1991 to 2001. They have proved a base for India’s economic growth.

Q. 7 Write about any two of the following (in about 150 words each) :   15 × 2 = 30

(a) G-8 Summit in Russia

Important Points for Answer:

• Summit      

•Points discussed

• Result

Answer: The G-8 Summit , representing world’s most industrialised eight countries was held in

Russia recently. This proves the rising influence of Russia in the world.

   –         Summit voiced in favour of Indo – US nuclear deal, supporting it in principle.

   –         Leaders condemned vehemently activities of terrorism. They affirmed their joint cooperation to fight against it.

   –         They proposed to increase cooperation in overcoming threat of AIDS and other diseases.

   –         Iran issue towerred the agenda of meeting. Iran rejected offers of western powers to suspend its enrichment programme. They discussed the issue in detail.

   –         To create knowledge-based economy, they expressed their concern for educational development by modern systems.

   –         They discussed modalities to help poor countries of Africa and other parts of the world.

(b) Expanding role of Amnesty International

Important Points for Answer:

•       Amnesty           

•       Objectives        

•       Role

Answer: Amnesty International is an organisation that fights for the protection of human rights, improving conditions of prisoners and war criminals. Fair procedure of justice and no abuse of soldiers and freedom of all prisoners of conscience are also goals of Amnesty. It does not only concentrate on publication of information and materials but also concentrates campaigning for public opinion by individual, regional or thematic campaigns. Due to its significant role played in these fields it was awarded the Nobel Prize.

In times of natural or other crisis Amnesty has played praiseworthy role in recent years. International Legal aspects and their proper implementation for improving conditions of refugees, non-citizen labourers and workers, it works against governments and nongovernmental organisations.

It publishes annual report regarding condition of human rights in every countries of the world. This report is given great concern all over the world.

(c) Role of European Parliament

Important Points for Answer:

•       Parliament structure     

•       Functions & Powers

Answer: European Parliament consists of all member countries of European Union. Therefore, it has total 732 members. This Parliament represents about 450 million European Citizens. So, it is a large democratic body of Europe.

Then too, it has to play a limited role. It has no power to legislate for the member countries.

Council has also significant role to play in the EU.

European Parliament approves the budget of the Union. It also legislates on the matters of common policy decision matters, not falling within purely domestic jurisdiction.

Parliament approves the appointment of the President of EU. It also approves the remaining members of the Commission.

Parliament has power to supervise the EU’s activities.

Parliament, being a democratic body can be entrusted with making policy of common benefit to all members, like trade, agriculture, technology, etc.

However, the European Parliament has not unfettered powers in entrusted matters, but by discussion members can bring to surface their concerns to the notice of others.

This makes possible the coordination among member countries.

Q. 8 Write about the following (in about 20 words each) :   2 × 5 = 10

(a) Trade through Nathu La Pass

Answer: This is a new route opened for trade after a long period between India and China. To promote trade some exemptions have been allowed.

(b) Outer Space Treaty

Answer: It contains main legal aspects of outer space in International field. The Treaty of 1967 makes provision for free and peaceful use of Outer Space.

(c) Withdrawal of Japanese Troops from Iraq

Answer: Due to home pressure and its international policy, Japan withdrew its troops from Iraq. It had sent its troops along with the USA and UK.

(d) Maastricht Treaty

Answer: The Treaty of 1992 created the European Union and the currency of euro. This is the treaty which bring together all countries to form a common market.

(d) Cuba and Castro

Answer: Cuba, is a small country. Castro is its President. He opposes American policies and Cuba is banned on many issues by USA for many years.

Q. 9 Write about the following, by expanding and explaining the objectives (in about 20 words each) :          2 × 5 = 10

(a) ICJ

Answer: International Court of Justice : It aims to solve legal problems arising among states in their interaction. It helps interpretation of International law and settles legal disputes between states and gives advisory opinion to UN and its specialised agencies.


Answer: International Telecommunications Satellite Organisation : Its objective is to provide telecommunication facilities to states and to solve problems related to it.

(c) IBRD

Answer: International Bank for Reconstruction and Development (set up in July, 1944) : It helps developing and under developed countries to reconstruct economy by providing them with financial support.

(d) WMO

Answer: World Meteorological Organisation (entered into force in 1950) : It provides services related to meteorology to member states. Its main purpose is to facilitate exchange of weather data to establish a world-wide network of meteorological stations.

(e) WHO

Answer: World Health Organisation : This organisation was set up in 1948 with the aim to provide services to maintain health of poor and under nourished people of the world. Its chief organs are the World Health Assembly, the Executive Board and a Secretariat.

Q. 10 Answer any one of the following (in about 250 words) : 30

(a) Justify with necessary logic “Biological clean-up methods can be cheaper than the conventional physical and chemical pollution treatments”.

Important Points for Answer:

• What are Biological clean-up methods

• What are physical and chemical methods

• Advantage

Answer: Pollution causes many hazardous compounds in air, water and soil. To convert these hazardous compounds into non-hazardous chemicals, various clean-up methods are employed.

Such conventional methods use physical and chemical treatments of these compounds.

Biological clean-up methods have proved effective in converting toxic compounds into biodegradable substances and in phases, into water and carbon dioxide.

Bioil-FC is one of such Biological agent. Bioremediation is also employed as a secondary treatment.

Bioremediaton is a technique for environmental detoxification. Micro organisms are used to break down toxic organic compounds. They convert them into less toxic ones.

Such biological treatment systems are permanent in nature and require little maintenance. Physical and chemical methods use various techniques of boiling, pressure, reactions, etc. Various chemicals and systems used are expensive and requires technical know-how. In comparison to these, biological clean up are less expensive and simple. Though research requires deep study for such methods, but they are less complex in their application.

Moreover, Biological methods have .shown effective results in many countries. But some limitations are there. They can be most effective between a range of temperature.

Yet, these methods are ecofriendly in themselves. They use natural mechanisms like use of anoxic drains, limestone rock channels, alkaline recharge of ground water, etc.

So, it can be said that in a long term calculation, these can be cheaper than conventional physical and chemical methods.

(b) Explain how Nanoscience and Nanotechnology have revolutionized modern technology.

Important Points for Answer:

• Nano-science or Nanotechnology    


• Their application

Answer: Nanoscience is a branch of science related to small particles and their actions. Size of particles are in range of nano metre—i.e. 10–9 m.

Nanotechnology develops various technological uses of such smaller particles.

Nowadays, these have gained wide applications in various fields ranging from electronics to medicines.

Such small particles can offer multiple functions in smaller sizes. Due to this technology, now we are able to have a match box size Television sets and smaller cellular phone sets. On military front, this technology has helped to create small but more powerful weapons and tools of surveillance.

Even quality and efficiency of instruments will increase at much lower price.

On medical field, Nanotube Injection can be used to heal bones.

Carbon nano tubes are also useful in medical field.

Now a capsule-size computer robot is able to perform operation inside the body of patient, monitored by doctor through computer.

Small size CDs and floppies can be availed using this technology.

Nano-medicines, nano-chemicals are emerging fields.

Application of Nano technology in agriculture field would boost production and quality of crops.

Q. 11 Answer any two of the following (in about 150 words each) :        15 × 2 = 30

(a) What do you understand by optical computing ? Why is optical computing envisaged to have much better performance than that of electronic computing?

Important Points for Answer:

• Optical Computing

• Advantages of Optical Computing

• Electronic Computing

Answer: Optical computer uses isolating crystals with bound electrons. It does not use either modulator or demodulator.

While electronic computer uses transistors with free electrons.

It provides smaller equipments with more speed and efficiency.

In place of integrated electronics circuit chip, optical fibres are much thinner and efficient.

Photons are used to perform computing functions. Electron based computation is conventional system approach.

Optical principles are used in this technology. Data interference and waste of energy through electrons is not present in optical computers.

By small equipments, more functions with more efficiency can be performed.

Polymers of optical computers have 1000 times faster function ability than silicon transistors.

Optical pathways in them can carry many different frequencies of light over each pathway.

(b) Write a note on ‘Bio-refinery versus Fossil fuels’.

Important Points for Answer:

• Bio-refinery


Answer: Bio-refinery refers to system which converts biomass into valuable chemicals and emits energy. This can be useful to minimise waste, produce useful chemicals and energy.

Fossil fuels or mineral fuels include coal, petroleum, other hydrocarbons etc. They are formed of decayed plants and animal fossils. Such fossils when subjected to heavy pressure under the earth and heat of the sun, they get converted into coal, crude oil and natural gas.

Biorefinery have the following advantages :

production of pure chemicals.

no use of polluting agents.

there takes place controlled decomposition and other processes.

Bio-refineries are largely eco friendly while fossil fuels produce a large amount of carbon dioxide, carbon monoxide and other hazardous gases, causing pollution and global warming.

(c) What are normal osmosis and reverse osmosis ? Why has reverse osmosis become popular in India today ?

Important Points for Answer:

• Normal Osmosis     

•Reverse Osmosis

• Advantages of RO

Answer: In Osmosis, the movement of particles are directed from high concentration to low concentration through a membrane.

While in Reverse Osmosis, the reverse process takes place. Here water leaves salty side of membrane under pressure created mechanically or electronically. Required pressure, for disalination of sea water through RO, is about 50-60 bars.

Water of sea is generally very saline and contain many chemicals dissolved in it. River water is also of same condition after flowing its path. To make this water potable, desalination through osmosis process is necessary.

When such water is subjected to normal osmosis, it is not so cleaned to make it hygienic. Arsenic, Iron, etc. are chemicals that are dissolved in water. They can be removed only by heavy pressurised conditions of Reverse Osmosis process.

So, due to the quality of water that can be achieved by RO, that process has been more popular than normal osmosis process.

Q. 12 Answer all the five (in about 20 words each) :           2 × 5 = 10

(a) What do you understand by a ‘search engine’ in computing ?

Answer: It helps to find out required information by providirig matching indexes of datas or sites.

(b) Expand the following:

(i) CAD 

          (ii) CAM   

          (iii) CIM

Answer: (i) CAD : Computer Aided Design

   (ii)       CAM : Computer Aided Manufacturing

   (iii)      CIM : Computer Integrated Manufacturing

(c) Explain what is Thin Film Memory in computers.

Answer: Sperry Rand in his research project developed this high-speed memory. It is a type of memory which adds to efficiency of a computer.

(d) Write a short note on ‘Artificial Intelligence’.

Answer: Computers are being developed to response on their logic. Robots are examplesof it. Centre for Artificial Intelligence and Robotics (CAIR), Bangalore, researches on the point.

(e) Who are called ‘Hackers’ in computer world ?

Answer: They are invadors of computer datas, programmes, etc. They are criminals under Cyber laws. Their action is unauthorised interference.