The bone of contention in the recent debate has been the drastic fall in household net financial savings to GDP ratio during 2022-23 on account of a higher borrowing to GDP ratio. In response to our previous article ‘On the Fall in Household Savings’ (The Hindu, April 21, 2024), the Chief Economic Advisor (CEA) to the Government of India has interpreted this trend as a mere shift in the composition of household savings, where households are argued to incur greater borrowing (or reduce net financial savings) solely to finance higher physical savings (investment). In this article, we argue that this interpretation is inconsistent with broad trends and highlight some signs of structural shifts in the Indian economy.

Source – https://www.thehindu.com/business/Economy/rising-d

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Passage 2

Violent street protests in Pakistan Occupied Kashmir (PoK) have left a police officer dead and more than 90 people injured since Friday (May 10), Pakistani media reported.

The violence erupted after about 70 members of the Joint Awami Action Committee, an organisation led by traders in the region, were arrested during a strike to protest the rising costs of food, fuel, and utilities. Pakistan’s economic crisis and high inflation have resulted in hardships for its people, and a section of traders have been additionally hit by the stopping of trade with India.

The traders took to the streets on Friday to protest against high electricity and food prices. There were similar protests against high electricity bills in August 2023 as well.

Source- https://indianexpress.com/article/explained/explained-g

29th MAY 2024 CLAT

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Passage 1

1. Chief Economic Advisor advises the government on economic matters and is responsible for the preparation of which of this, which is tabled in Parliament before the Union budget of India is presented?

A. Economic survey of India

B. Budget Draft

C. Economic Analysis Review

D. Financial Draft

2. Which of this is not included in the household savings to GDP ratio?

A. Net financial savings to GDP ratio

B. Physical savings to GDP ratio

C. Gold and ornaments

D. None

3. As per the NSSO 70th Round “Situation Assessment Survey of Agricultural Households”, consider the following statements: 1. Rajasthan has the highest percentage share of agricultural households among its rural households. 2. Out of the total agricultural households in the country, a little over 60 percent belong to OBCs. 3. In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities. Which of the statements given above is/are correct?

A. 2 and 3 only

B. 2 only

C. 1 and 3 only

D. 1, 2 and 3

4. In a given year in India, official poverty lines are higher in some States than in others because

A. poverty rates vary from State to State

B. price levels vary from State to State

C. Gross State Product varies from State to State

D. quality of public distribution varies from State to State

5. Which of this is incorrect?

A. Household Net Financial Savings: It refers to the portion of household income that is saved and invested in financial assets, such as bank deposits, stocks, bonds, and other financial instruments, after accounting for financial liabilities like loans and mortgages.

B. It represents the net change in financial assets held by households over a period.

C. Higher Net financial Savings indicates higher economic stability.

D. None

Passage 2

6. Trade in PoK suffered after India hiked customs duties on Pakistani goods post the Pulwama attack in which of this year, exacerbating the financial strain?

A. 2018

B. 2019

C. 2020

D. 2021

7. After the Pulwama attack, India accused Pakistan and revoked its ___ status, imposing a 200% import duty on Pakistani products such as dry dates, rock salt, cement, and gypsum.

A. MFN

B. MFF

C. NCFN

D. NCFF

8. Which of this is correct about Geographical Extent of PoK?

A. PoK covers an area of 23,197 sq km

B. It has a population of over 80 lakh people.

C. It is divided into 10 districts, with the capital being Muzaffarabad

D. None

9. For India, PoK and GB are part of the state of Jammu and Kashmir, which is an integral part of the country as per the ____ Parliamentary resolution.

A. 1994

B. 1995

C. 1997

D. 1999

10. Which of this is incorrect?

A. The Siachen Glacier is located in the Eastern Karakoram range in the Himalayas, just northeast of Point NJ9842 where the Line of Control between India and Pakistan ends.

B. It has the distinction of being the largest glacier outside the polar and subpolar regions

C. It lies to the west of Aksai Chin, south of Nubra valley and almost west of Gilgit

D. None