📈 EconomyUPSC 1996Fundamentals of Economy

Consider the following statements : Most intern- ational agencies which fund Development Progr-amme in India on intergovernmental bilateral agreements, mainly provide:1. Technical assistance2. Soft loans which are required to be paid back with interest3. Grants, not required to be paid back4. Food assistance to be paid back Of these statements

a2 and 4 are correct
b1, 2 and 3 are correct
c1, 2 and 4 are correct
d3 and 4 are correct UPSC GS Paper-I PYQs 330
✓ Correct answer: b) 1, 2 and 3 are correct
ExplanationMost international agencies that fund development pro- grams in India through intergovernmental bilateral agreements primarily provide:Technical Assistance: Many agencies offer expertise, knowledge sharing, and capacity-building support to help implement development projects effectively.Soft Loans: A significant portion of funding comes in the form of soft loans, which are required to be paid back but with low interest rates and long repayment periods.These loans are often concessional and designed to support development without imposing a heavy financial burden.Grants: Some agencies provide grants, which do not need to be repaid.These are typically used for social sector projects like health, education, and poverty alleviation.Only few agencies provide food assistance in some cases (e.g., during emergencies or specific programs), it is not the primary form of support from most international agencies.13. IMPORTANT INDEX AND REPORTS 347

Practice more Economy PYQs

Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.

📈 Economy PYQs →