Acme Ai
A
अ
Question No. 133Interactive Test Mode
00:00
+2-0.66

Q133. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which of the statements given above is/are correct?

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

  1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
  2. The Government no longer intends to retain the management control of the CPSEs. Which of the statements given above is/are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2011 • Indian Economy

Correct Answer: Option (D) — Neither 1 nor 2

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: Disinvestment proceeds are primarily intended to finance developmental and social infrastructure investments, not specifically to repay external debt. Statement 2 is incorrect: In minority disinvestment, the government retains majority shareholding (at least 51%) and operational management control.

Reviewed by Avinash Sir & Acme AI Research Team

Practice Full-Length & Sectional Prelims Mocks on this Interface

50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.

Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2011 (Q133)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — Neither 1 nor 2

Related & Repeated Prelims PYQs (9)

Questions from other UPSC Prelims years testing the same or closely linked concept.

View Cluster in 3D Graph
2019 • Q25784% Match

Consider the following statements: 1. Most of India’s external debt is owed by governmental entities. 2. All of India’s external debt is denominated in US dolla

Indian Economy • Indian Economic Planning & GrowthSolve
2010 • Q13582% Match

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National

Indian Economy • Fiscal Policy & Public FinanceSolve
2002 • Q31982% Match

Consider the following statements: The objectives of the National Renewal Fund set up in February 1992 were: (2002) 1. To give training and counselling for work

General Knowledge (1995-2010) • MiscellaneousSolve
2010 • Q24282% Match

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Do

Indian Economy • Fiscal Policy & Public FinanceSolve
2018 • Q17081% Match

With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by the Gover

Indian Economy • Banking & Financial SystemSolve
2004 • Q37681% Match

Consider the following statements: 1. Reserve Bank of India was nationalized on 26 January, 1950 2. The borrowing programme of the Government of India is handle

Indian Economy • Banking & Financial SystemSolve
2003 • Q44081% Match

With reference to Government of India’s decision regarding Foreign Direct Investment (FDI) during the year 2001-02 consider the following statements: 1. Out of

General Knowledge (1995-2010) • MiscellaneousSolve
2010 • Q581% Match

With reference to Indian economy, consider the following statements: 1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years. 2. Th

Indian Economy • Indian Economic Planning & GrowthSolve
2022 • Q22880% Match

With reference to Indian economy, consider the following statements: 1. A share of the household financial savings goes towards government borrowings. 2. Dated

Indian Economy • Indian Economic Planning & GrowthSolve

More PYQs from Indian Economy (Indian Economic Planning & Growth)

Master the Indian Economy syllabus cluster by practicing these related previous year questions.

View All Indian Economy PYQs
2024 • Q123Indian Economic Planning & Growth

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

Indian EconomyPractice
2024 • Q124Indian Economic Planning & Growth

Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignmen

Indian EconomyPractice
2021 • Q125Indian Economic Planning & Growth

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2

Indian EconomyPractice
2020 • Q126Indian Economic Planning & Growth

“Gold Tranche” (Reserve Tranche) refers to:

Indian EconomyPractice
2020 • Q127Indian Economic Planning & Growth

With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certific

Indian EconomyPractice
2016 • Q128Indian Economic Planning & Growth

With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct? 1. Bitcoins are tracked by the Central Ban

Indian EconomyPractice
2016 • Q129Indian Economic Planning & Growth

What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? 1. To bring the idle gold lying with

Indian EconomyPractice
2014 • Q130Indian Economic Planning & Growth

What does venture capital mean?

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 2011 Q133

What is the official answer for UPSC Prelims 2011 GS Paper I Question 133 (Indian Economy)?

The official UPSC answer key for this 2011 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "Neither 1 nor 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2011 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

Beyond Previous Year Questions

Structured Prelims Practice & Mentorship

Pair previous year question analysis with full-length simulated mock tests and 1-on-1 faculty guidance.

APT 2027 • 50 Prelims Tests17% OFF

Acme Prelims Test Series (APT)

Built to eliminate 1/3rd negative marking losses and 50–50 option traps through structured simulation and NCERT-backed keys.

  • 50 High-Yield Tests: Subject Sectionals, Current Affairs, CSAT Paper II & Full-Length Simulators
  • 1/3rd Penalty & Trap Analytics: Identify whether marks are lost to over-attempting or conceptual gaps
  • Option-by-Option NCERT Keys: Detailed distractor analysis and elimination logic for every question
  • Custom PDF-to-Mock Generator: Convert your revision notes or current affairs PDFs into practice tests
Complete 50-Test Package
₹1,493₹1,799• Valid till Prelims 2027
1-on-1 Personal MentorshipCapped at 10 Seats

1-on-1 UPSC Mentorship with Avinash Sir

Weekly 1-on-1 strategy reviews, daily study accountability, and personalized MCQ attempt audits with an experienced UPSC mentor.

  • Weekly 1-on-1 Sessions: Direct mentorship with Avinash Sir (Former Plutus IAS Mentor, UPSC & UPPCS Mains Written)
  • APT 50-Test Series Included: Full Prelims GS1 & CSAT test series bundled at no additional cost
  • Mock Attempt & Elimination Audit: Question-by-question review to calibrate your risk and attempt accuracy
  • Prelims & Integrated Tracks: Available as dedicated Prelims mentorship or end-to-end Prelims + Mains guidance
Prelims & Integrated Tracks
17% OFF• Includes APT 50-Test Series