Economy

Q1. Consider the following statements with reference to India’s Current Account Deficit (CAD):

A current account deficit can persist even when a country receives substantial remittances and earns significant foreign exchange from services exports.
India’s CAD widened to $4.2 billion (0.5% of GDP) in Q1 2026-27, primarily due to the higher merchandise trade deficit.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(d) Neither 1 nor 2

Answer: (c)

Explanation:

India’s current account deficit widened to $4.2 billion (0.5% of GDP) in Q1 2026-27, mainly due to a higher merchandise trade deficit, partly offset by stronger services exports and remittances.
Services exports and remittances add to current-account receipts, but may not fully offset a large merchandise trade deficit. Hence, Statement 1 is correct.
India’s CAD increased to $4.2 billion in Q1 2026-27, mainly as the merchandise trade deficit rose to $86.1 billion. Hence, Statement 2 is correct.
Stronger services receipts and remittances partly cushioned the widening CAD.

Hence, option (c) is correct.

Science & Tech

Q2. Consider the following statements with reference to Artificial Intelligence (AI) and copyright:

Statement I: An AI-generated work may qualify for copyright protection even when the AI system itself is not recognised as its legal author.

Statement II: The Copyright Office, in the recent DABUS case, found the AI-generated artwork to be sufficiently original for copyright protection but held that DABUS could not be recognised as its author under Indian law.

Which one of the following is correct in respect of the above statements?

(a) Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I

(b) Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I

(d) Statement I is not correct but Statement II is correct

Answer: (a)

Explanation:

A recent Indian Copyright Office decision on the DABUS AI system has highlighted the distinction between an AI-generated work being original and the AI itself being legally recognised as its author.
Copyright law distinguishes between the originality of a work and the legal status of its author. Therefore, recognition of an AI-generated work as sufficiently original does not necessarily mean that the AI system itself can be recognised as its legal author. Hence, Statement I is correct.
In the DABUS case, the Copyright Office found the artwork “A Recent Entrance to Paradise” sufficiently original for copyright protection, but did not recognise DABUS as its author. It treated the human who legally caused the work to be created as the relevant author under the Copyright Act. Hence, Statement II is correct.
Statement II directly illustrates and explains the distinction stated in Statement I: AI may generate an original work, while legal authorship may still vest in a legally recognised person. Hence, Statement II is the correct explanation for Statement I.

Hence, option (a) is correct.

Polity

Q3. Consider the following statements with reference to the constitutional understanding of untouchability:

I. Article 17 is not confined to physical exclusion of a person from public places.

II. The Supreme Court has linked untouchability with caste-based notions of “purity and pollution” and held that no stigma can be attached to the touch or presence of any person.

III. The legal determination of whether a purification ritual amounts to untouchability depends solely on the fact that the ritual occurred after a Scheduled Caste person used the place.

Which of the following relationships among the above statements is/are correct?

Statement I is empirically supported by Statement II.
Statement III contradicts the approach implicit in Statement I.
Statement II and Statement III together establish the constitutional basis of Article 17.

Select the answer using the code given below:

(a) 1 only

(b) 1 and 2

(d) 3 only

Answer: (b)

Explanation:

Article 17 is not limited to physical exclusion from public places. In Sukanya Shantha v. Union of India (2024), the Supreme Court interpreted untouchability in the broader context of caste-based notions of “purity and pollution”. Hence, Statement I is correct.
The Supreme Court recognised the connection between untouchability and caste-based notions of “purity and pollution” and emphasised that no stigma can be attached to the existence, touch or presence of any person. Hence, Statement II is correct.
The mere fact that a purification ritual was conducted after a Scheduled Caste person used a venue does not automatically establish untouchability. The crucial issue is whether the ritual was connected with caste-based notions of pollution. Hence, Statement III is not correct.
Statement II provides the legal and conceptual basis for Statement I. Hence, Relationship 1 is correct.
Statement III is contrary to the approach implicit in Statement I, as the legal determination depends on the connection between the ritual and caste-based notions of pollution. Hence, Relationship 2 is correct.
Since Statement III is not correct, Statements II and III cannot together establish the stated premise. Hence, Relationship 3 is not correct.

Hence, option (b) is correct.

Environment

Q4. With reference to e-waste management, consider the following statements:

Urban mining refers to the recovery of valuable materials from discarded products and waste streams rather than extracting them from natural mineral deposits.
Advanced recycling of e-waste can help reduce dependence on virgin mining and imports by recovering materials such as copper, gold, silver and critical minerals.
The economic benefits of e-waste recycling are fully captured by conventional lowest-cost procurement decisions because recovered materials and environmental benefits are directly reflected in the transaction price.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

Answer: (a)

Explanation:

The growing volume of discarded computers, servers, networking equipment and other electronics has created an opportunity for urban mining, while improper handling can turn e-waste into a hazardous waste problem.
the need to move beyond lowest-cost procurement towards life-cycle costing that accounts for resource security, environmental sustainability, data security and long-term economic resilience.
Urban mining involves recovering valuable materials from products that have already served their purpose, instead of extracting them through conventional mining. Hence, Statement 1 is correct.
Advanced recycling can recover materials such as copper, aluminium, gold, silver, palladium and critical minerals, thereby reducing virgin mining, import dependence and supply-chain vulnerabilities. Hence, Statement 2 is correct.
The conventional procurement often focuses on the lowest visible cost, while strategic benefits such as critical-mineral recovery, environmental safeguards and data security are not adequately reflected in the immediate transaction price. Hence, Statement 3 is not correct.

Hence, option (a) is correct.

Art & Cul

Q5. With reference to products identified under the Districts as Export Hubs (DEH) Initiative, consider the following pairs:

	Product / Products	District	State
I.	Ceramic & Tiles, Potato	Sabarkantha	Gujarat
II.	Orange	Jalgaon	Maharashtra
III.	Jalgaon Banana, Jalgaon Bharit Brinjal	Agar Malwa	Madhya Pradesh
IV.	Bamboo Craft, Cashew	Jamtara	Jharkhand

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(d) All four

Answer: (b)

Explanation:

The Districts as Export Hubs (DEH) Initiative identifies district-specific products and services with export potential and seeks to connect local producers with international markets.
It builds on ODOP through a convergence-based approach, using existing Central and State schemes to strengthen district-level export ecosystems.
Ceramic & Tiles and Potato are identified with Sabarkantha, Gujarat. Hence, Pair I is correctly matched.
Orange is identified with Agar Malwa, Madhya Pradesh, not Jalgaon, Maharashtra. Hence, Pair II is incorrectly matched.
Jalgaon Banana and Jalgaon Bharit Brinjal are identified with Jalgaon, Maharashtra, not Agar Malwa, Madhya Pradesh. Hence, Pair III is incorrectly matched.
Bamboo Craft and Cashew are identified with Jamtara, Jharkhand. Hence, Pair IV is correctly matched.

Hence, option (b) is correct.