Comprehension UGC NET Paper 2 Commerce 3rd Sept 2024 Shift 1

The correct answer is A, B & C Only.

Key Points

• Repacking and labelling of products
  • This relates to the additional services provided by export hubs which are aimed at making products ready for international markets.
  • Such facilities help exporters to streamline their processes, thus reducing time and logistical challenges.
  • Supported by passage: The passage mentions that export hubs will offer “repacking, labelling, product testing, and processing returns services.”
• Substantial decrease in upfront cost incurred in export
  • By providing shared infrastructure and services like warehousing and logistics, export hubs can help reduce the initial costs for exporters.
  • Reduced costs make it easier for small businesses and new exporters to enter and compete in international markets.
  • Supported by passage: Although not explicitly stated, the reduction in upfront costs can be inferred from the “favorable business infrastructure and facilities” provided by the hubs.
• Interconnection of Logistics Custom clearance exemption
  • Efficient logistics management and faster customs clearance are critical for timely delivery of goods and improving the overall export process efficiency.
  • Providing dedicated logistics infrastructure helps connect exporters to services aimed at sped-up customs processes.
  • Supported by passage: The passage specifies that the hubs will facilitate “faster customs clearance of cargo,” indicating the role of interconnected logistics.
• Custom clearance exemption
  • Exemption from customs clearance requirements would significantly simplify the export process.
  • However, the passage discusses facilitating faster customs clearance rather than an outright exemption.
  • Not supported by passage: The text does not mention customs clearance exemptions, only faster processing.
• Assured export orders
  • This implies guaranteed orders for exporters, which would provide stability and predictability.
  • While beneficial, there is no mention in the passage of export hubs guaranteeing or assuring export orders to businesses.
  • Not supported by passage: The passage focuses on infrastructure and facilities, not on guaranteeing export orders.

Based on the passage, the correct option is A, B & C Only. These benefits are closely supported by the text, emphasizing infrastructure, reduced costs, and enhanced logistics for exporters.

 The correct answer is B & E Only.

Key Points

• Reimport issues are being addressed by existing export policies
  • This statement is incorrect because, while the passage mentions reimportation issues and the role of export hubs in addressing them, it does not suggest that existing export policies are sufficient in dealing with these issues. Instead, the need for a separate e-commerce export policy indicates current policies are inadequate.
• Cross-border e-commerce has gained significantly in the last few years
  • This statement is correct. The passage states that India’s cross-border e-commerce exports are likely to increase significantly over the next six to seven years, indicating substantial recent and projected growth. This underlines the need for a dedicated e-commerce export policy.
• Existing export centers have favorable business infrastructure
  • This statement is incorrect. The passage does highlight that export hubs are expected to provide favorable business infrastructure. However, it does not say that existing export centers already offer all necessary facilities for e-commerce. Thus, a dedicated e-commerce export policy is still needed.
• E-commerce export can be managed with existing logistic hubs
  • This statement is incorrect. The passage implies that existing logistics hubs might not be sufficient alone as it emphasizes the establishment of dedicated logistics infrastructure in the new export hubs for managing e-commerce exports effectively.
• E-commerce exports need a combination of facilities including warehousing, processing returns, repacking
  • This statement is correct. The passage explicitly states that export hubs will offer various facilities such as warehousing, processing returns, repacking, and more. This diverse combination of facilities underscores the necessity of a specialized policy to streamline and support these functions.

Based on the evaluation above, the correct answer is option 3: B & E Only, as these statements accurately reflect the reasons why there is an urgent need for a separate e-commerce export policy. Statements A, C, and D do not correctly capture the need as described in the passage.

 The correct answer is Amazon.

Key Points

• DGFT
  • This statement is incorrect. While the Directorate General of Foreign Trade (DGFT) is involved in signing the memorandum of understanding to support e-commerce exports, it is not the enterprise identified for mentoring MSMEs.
• Walmart
  • This statement is incorrect. The passage does not mention Walmart playing any role in mentoring MSMEs for boosting e-commerce exports.
• Amazon
  • This statement is correct. The passage specifically states that DGFT signed a memorandum of understanding with Amazon to offer capacity-building sessions, training, and workshops for MSMEs. Therefore, Amazon is the enterprise identified to mentor MSMEs for boosting e-commerce exports.
• DGCA
  • This statement is incorrect. The Directorate General of Civil Aviation (DGCA) is unrelated to the context of e-commerce export mentoring as described in the passage.

Based on the evaluation above, the correct answer is option 3: Amazon, as it is the enterprise identified in the passage to mentor MSMEs for boosting e-commerce exports. Statements involving DGFT, Walmart, and DGCA do not align with the passage’s details regarding mentoring enterprises.

 The correct answer is B, C & D only.

Key Points

• India’s services export declined in 2023-24 over 2022-23
  • This statement is incorrect. The passage states that India’s services export increased by $15.8 billion in 2023-24 over 2022-23. Therefore, it is not correct to say that services export declined during that period.
• India’s export through online platform is less than China in 2022-23
  • This statement is correct. The passage clearly mentions that India’s exports through online platforms stood at $8-10 billion in 2022-23, compared to China’s figure of more than $300 billion. This significant difference supports the statement that India’s online export is less than China’s in that period.
• Amazon targets to double or more than double its exports from India in 2024-25
  • This statement is correct. The passage mentions that Amazon aims to achieve its ambitious target of $20 billion in exports by next year (2024-25), with its cumulative exports from India already surpassing $8 billion in 2023. This indicates a goal to more than double its export figures.
• More than 20% of goods in e-commerce are reimported
  • This statement is correct. The passage specifically states that about 25% of goods in e-commerce are reimported. Thus, it is accurate to say that more than 20% of goods are reimported.
• India’s merchandise exports increased in 2023-24 over 2022-23
  • This statement is incorrect. The passage indicates that India’s merchandise export actually declined by $14 billion in the period from 2022-23 to 2023-24.

Based on the evaluation above, the correct answer is option 2: B, C & D only, as these statements correctly reflect the details regarding export mentioned in the passage, while statements A and E are not accurate based on the given information.

 The correct answer is 3%.

Key PointsLet’s analyze the given data:

• India’s exports through online platforms in 2022-23:
  • The passage states that India’s exports through online platforms were $8-10 billion in 2022-23.
• China’s exports through online platforms in 2022-23:
  • The passage indicates that China’s exports through online platforms were more than $300 billion in 2022-23.

To find India’s export through online platforms in comparison to China:

• Let’s take the midpoint for India’s exports figures: (8 + 10) / 2 = $9 billion.
• China’s exports are $300 billion.
• Now, we calculate the percentage: (India’s $9 billion / China’s $300 billion) * 100.
• Percentage calculation: (9 / 300) * 100 = 3%.

Based on this calculation, India’s export through online platforms in comparison to China’s in 2022-23 is indeed 3%. Therefore, the correct answer is option 4: 3%.

 The correct answer is 146 GW.

Key PointsGiven the national power demand in India, let’s analyze the information provided to determine the demand in 2022: 

• From the passage:
  • The current power demand in India is 250 Gw, which is 25 per cent more than last year’s demand.
  • It is also mentioned that the demand is 71 per cent more than the demand in 2022.
• Determining the demand in 2022:
  • Let’s denote the power demand in 2022 as D (in Gw).
  • According to the passage, the current demand is 71 per cent more than the demand in 2022.
  • Hence, we can write the relationship as: 250 Gw = D + 0.71D
  • This simplifies to: 250 Gw = 1.71D
  • Solving for D gives: D = 250 Gw / 1.71 ≈ 146 Gw

Therefore, based on the calculations above, the national power demand in 2022 was approximately 146 Gw. This makes option 4 the correct choice.

The correct answer is A, B & E Only.

Key PointsLet’s analyze each power source concerning its storage limitations:

• Wind Power (A):
  • The passage mentions that the absence of viable storage technologies has limited grid offtake from renewable sources.
  • This includes wind power, as it is an intermittent energy source and the generated power needs to be stored effectively for balanced supply.
• Solar Power (B):
  • Similar to wind power, solar power is also affected by the lack of viable storage technologies.
  • Energy generated from solar panels needs to be stored during the daytime to be used when there is no sunlight.
• Thermal Power (C):
  • Thermal power does not suffer from storage limitations as it can provide continuous power generation.
  • The power generated from thermal plants can be controlled and adjusted according to demand.
• Nuclear Power (D):
  • Nuclear power plants are capable of continuous and steady power generation without the need for storage.
  • The power generated from nuclear plants can be fed directly into the grid as per demand.
• Hydroelectric Power (E):
  • While hydroelectric power is a renewable source, its power generation can be dependent on water availability, which fluctuates seasonally.
  • Effective storage solutions are required to harness the energy generated during high water flow periods for use during dry seasons.

Based on the above analysis, wind (A), solar (B), and hydroelectric (E) power sources have limitations related to storage capacity. Thus, the correct answer is option 2: A, B & E Only.

 The correct answer is 54.7%.

Key PointsLet’s analyze the information provided in the passage to determine the installed capacity of fossil power:

• Installed capacity of non-fossil power:
  • The passage states that the installed capacity of non-fossil power in India is now 45.3% of the total capacity.
• Calculating the installed capacity of fossil power:
  • The total installed capacity of power can be divided into fossil and non-fossil power sources.
  • If non-fossil power accounts for 45.3% of the total capacity, then the remaining percentage will account for fossil power.
  • This means fossil power accounts for: 100% – 45.3% = 54.7%

Therefore, based on the information provided in the passage, the installed capacity of fossil power is 54.7% of the total installed capacity. This makes option 3 the correct choice.

 The correct answer is Coal Reforms 3.0 will bring down coal imports to zero in the coming two years.

Key PointsLet’s analyze each statement based on the information provided in the passage:

• Industrial sector pollute more than coal based thermal power plants:
  • This statement is incorrect. The passage explicitly states that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector.
• The chronic problem of coal shortage is likely to continue:
  • This statement is incorrect. The passage mentions that this year, coal stocks have reached plants well on time and highlights the improvement in stock levels at thermal power plants.
• Coal Reforms 3.0 is in synergy with green hydrogen pilot project:
  • This statement is incorrect. The passage suggests that Coal Reforms 3.0 appears to be at odds with the green hydrogen pilot project, as it encourages continued dependence on coal.
• Coal Reforms 3.0 will bring down coal imports to zero in the coming two years:
  • This statement is correct. The passage states that a programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

Therefore, based on the evaluation above, the correct answer is option 4: Coal Reforms 3.0 will bring down coal imports to zero in the coming two years.

 The correct answer is 70%.

Key PointsLet’s analyze the information given in the passage to determine the percentage increase in coal stock with power plants:

• Coal stock on June 23, 2024:
  • The passage mentions that as of June 23, 2024, thermal power plants had 16 days of stocks.
• Coal stock on June 23, 2022:
  • The passage states that on June 23, 2022, thermal power plants had 9.4 days of stocks.
• Calculating the percentage increase:
  • The increase in coal stock from June 23, 2022, to June 23, 2024, is (16 days – 9.4 days) = 6.6 days.
  • The percentage increase is calculated as: (Increase / Initial value) * 100
  • Using the initial stock value of 9.4 days: Percentage increase = (6.6 / 9.4) * 100 ≈ 70.21%
  • Therefore, the approximate increase is 70%.

Based on the analysis, the availability of coal stock with power plants this year is approximately 70% more than it was 2 years ago. Hence, option 3 is the correct choice.