Comprehension
Prime Minister Narendra Modi on Saturday said major global firms are looking at India as a major investment destination, which is reflected by a robust inflow of Foreign Direct Investment (FDI) last financial year, and through ‘Atmanirbhar Bharat Abhiyan‘ (Self Reliant India initiative) the country is shifting its focus from ’Make in India‘ to ‗Make for world‘. He said Independent India should be "vocal for local" and asked citizens to glorify Indian products to promote 'Atmanirbhar Bharat‘. Unveiling his vision of a Self-Reliant India, the Prime Minister said that the government has unveiled over Rs 110 lakh crore National Infrastructure Pipeline (NIP) to boost the economy and create jobs. “In order to rapidly modernise India, there is a need to give a new direction to overall infrastructure development,” he said, adding that over 7,000 projects under NIP have been already identified. “This will be, in a way, a new revolution in the field of infrastructure. This is the time to end silos in infrastructure. There is a plan to connect the entire country with multi model connectivity infrastructure,” he said. NIP will play a crucial role in overcoming the adverse impact of Covid-19 on the economy and catapult the economy in a higher growth trajectory, he said. The government on December 31 last year unveiled the NIP with an aim to make India a $5 trillion economy by 2024-25. The focus of the infrastructure pipeline is to accelerate growth and create employment in both urban and rural areas.
Question: 1
The Government announced a stimulus package under the Self Reliant India Scheme for the amount of ________.
The Government announced a stimulus package under the Self Reliant India Scheme for the amount of ________.
Updated On: Jul 15, 2026
- 2 trillion
- 20 trillion
- 5 trillion
- 100 trillion
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The Correct Option is B
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The correct option is (B) :20 trillion.
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This question asks for a specific figure, the size of the stimulus package announced under the Atmanirbhar Bharat, or Self Reliant India, scheme. Let's check the options against what was actually announced:
- 2 trillion: This figure is far smaller than the package that was actually unveiled, it does not match the scale of the announcement.
- 20 trillion: The Atmanirbhar Bharat stimulus package was announced at a value of about Rs 20 lakh crore, which converts to roughly 20 trillion. This matches the figure widely reported at the time of the announcement.
- 5 trillion: This number is associated with a separate goal mentioned around the same period, making India a 5 trillion dollar economy by 2024-25, not with the size of the stimulus package itself, so it should not be confused with the correct figure here.
- 100 trillion: This figure is far larger than the actual package, well outside the real scale of the announcement.
Matching the figure to what was actually announced under the scheme points to one specific value.
So the correct answer is 20 trillion.
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Question: 2
Which of the following is not a goal of the stimulus package announced under the “Atmanirbhar” India ?
Which of the following is not a goal of the stimulus package announced under the “Atmanirbhar” India ?
Updated On: Jul 15, 2026
- It will help in alleviating the distress of migrants when they return to their villages.
- It will help in achieving the goal of a self-sustainable rural economy.
- It would boost the One Nation One Market objective and help India to become the food factory of the world.
- It will help in elevating quality of life in urban areas.
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The Correct Option is D
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The correct option is (D) :It will help in elevating quality of life in urban areas.
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This question asks us to spot the one option that was not a stated goal of the stimulus package under Atmanirbhar Bharat. The other three options describe the package's actual focus areas, which centred on rural India, migrant workers and agricultural markets. Let's check each:
- It will help in alleviating the distress of migrants when they return to their villages: Supporting migrant workers who returned to their home states during the lockdown was one of the central goals of the package, so this is an actual stated aim.
- It will help in achieving the goal of a self-sustainable rural economy: Strengthening the rural economy so that it could stand on its own was another core aim behind Atmanirbhar Bharat, so this is also a genuine goal.
- It would boost the One Nation One Market objective and help India to become the food factory of the world: Reforms to agricultural marketing and boosting India's role as a major food producer were explicitly part of the package's stated direction, making this a real goal too.
- It will help in elevating quality of life in urban areas: The package's stated focus was rural and agricultural, on migrants, farmers and village-level economic activity, not specifically on urban quality of life. This is the one option that does not belong with the package's actual stated goals.
Since three of the four options describe the package's real, rural-focused aims, the one about urban quality of life stands apart as the exception.
So the correct answer is It will help in elevating quality of life in urban areas.
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Question: 3
Which of the following events can be seen as the stepping stone for the growth of the Foreign Direct Investment (FDI) in India ?
Which of the following events can be seen as the stepping stone for the growth of the Foreign Direct Investment (FDI) in India ?
Updated On: Jul 15, 2026
- The launch of 'Make in India‘ initiative in 2014.
- The Economic liberalisation in the year 1991.
- The Amendment in the FDI policy to increase the upper cap from 26% to 49%.
- All of the above.
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The Correct Option is B
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The correct option is (B) :The Economic liberalisation in the year 1991.
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This question asks for the event that acted as the foundational stepping stone for FDI growth in India, not simply one of several contributing events. Let's weigh the options:
- The launch of 'Make in India' initiative in 2014: This initiative helped attract more investment into manufacturing, but it built upon a system that already allowed foreign investment, it did not itself open India's economy to FDI for the first time.
- The Economic liberalisation in the year 1991: Before 1991, India's economy was largely closed and tightly regulated. The 1991 reforms opened up the economy, reduced trade barriers and allowed foreign investment to enter India in a meaningful way for the first time. This is the true starting point, the stepping stone, from which all later FDI growth became possible.
- The Amendment in the FDI policy to increase the upper cap from 26% to 49%: Raising an existing investment cap is a later fine-tuning step, it assumes FDI is already allowed at some level, so it builds on liberalisation rather than being the original stepping stone.
- All of the above: Since the other two events are later developments that depend on the economy already being opened up, grouping them as equally foundational as 1991 is not accurate.
Only the 1991 liberalisation represents the actual opening of India's economy that made FDI possible in the first place, with the other events following as later steps built on that foundation.
So the correct answer is The Economic liberalisation in the year 1991.
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Question: 4
Which of the following is not related to the “Vocal for Local” initiative of the Indian Government ?
Which of the following is not related to the “Vocal for Local” initiative of the Indian Government ?
Updated On: Jul 15, 2026
- Rebooting the MSMEs especially the Khadi and village industries.
- Generating new opportunities of employment at the local level.
- Creating new economic hubs through disinvestment and FDIs.
- Promoting the indigenous manufacture and support through financial aid.
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The Correct Option is C
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The correct option is (C) :Creating new economic hubs through disinvestment and FDIs.
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The "Vocal for Local" call, part of the Atmanirbhar Bharat (self-reliant India) push, is about strengthening domestic production and consumption, not about privatisation or foreign investment. Let's check each option against that core idea.
- Rebooting the MSMEs especially the Khadi and village industries: This sits right at the centre of Vocal for Local. Reviving small manufacturers, artisans and Khadi units so their goods are bought and used within the country is exactly what the campaign is built around.
- Generating new opportunities of employment at the local level: When local units get more orders and more support, they hire more people nearby. Local job creation is a direct, intended outcome of the campaign, so this is related.
- Creating new economic hubs through disinvestment and FDIs: Disinvestment means the government selling its stake in public sector units, and FDI means foreign companies bringing in capital. Both concern who owns capital and where investment comes from, not whether Indian made goods are being bought and promoted. This is a separate economic policy track, unconnected to the Vocal for Local push.
- Promoting the indigenous manufacture and support through financial aid: Backing Indian made products with credit guarantees and financial support is one of the direct tools used to push Vocal for Local, so this option is related.
Three of the four options describe actions that build up domestic production, local jobs, and support for Indian manufacturers, which is the entire point of Vocal for Local. Disinvestment and FDI driven economic hubs concern ownership and foreign capital, a different area of policy altogether.
So, the correct answer is Creating new economic hubs through disinvestment and FDIs.
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Question: 5
Under the National Infrastructure Pipeline, the Government plans to invest more than Rs. 102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure. What is the ratio of such expenditure by each of the stake holders ?
Under the National Infrastructure Pipeline, the Government plans to invest more than Rs. 102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure. What is the ratio of such expenditure by each of the stake holders ?
Updated On: Jul 15, 2026
- 50:25:25
- 40:40:20
- 39:39:22
- 34:33:33
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The Correct Option is D
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The correct option is (D) :34:33:33.
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This question asks for the funding split of the Rs. 102 lakh crore National Infrastructure Pipeline (NIP) among the Centre, the States and the private sector for 2020-25. Let's check each ratio against the figures published by the NIP task force report.
- 50:25:25: This would mean the Centre alone funds half the pipeline while the States and private sector split the rest equally. The NIP report does not give the Centre a majority share on its own; the Centre and States were placed on an equal footing instead, so this ratio does not match the published split.
- 40:40:20: This is close to the real numbers but not exact. The task force report gives the Centre and States a slightly lower share each, with the private sector share a little higher than 20 percent.
- 39:39:22: The NIP task force report states that the Centre and the States are each expected to contribute about 39 percent of the capital expenditure, with the private sector funding the remaining 22 percent. This matches the reported split precisely.
- 34:33:33: This would spread the burden almost equally across all three sources, with the private sector carrying nearly a third of the cost. The private sector's actual projected share for this period was far lower, around a fifth, so this ratio does not reflect the report's figures.
The Centre and the States were each expected to carry about 39 percent of the capital expenditure, with the private sector funding the remaining 22 percent, matching the option 39:39:22 exactly.
So, the correct answer is 39:39:22.
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Top CLAT Questions
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