UPSC Prelims 2009 Q11: Indian Economy – Infrastructure & Industry

UPSC Prelims 2009, General Studies Paper I · Indian Economy

Among other things, which one of the following was the purpose for which the Deepak Parekh Committee was constituted?

(a) To study the current socio - economic conditions of certain minority communities
(b) To suggest measures for financing the development of infrastructure
(c) To frame a policy on the production of genetically modified organisms
(d) To suggest measures to reduce the fiscal deficit in the Union Budget

Answer: (b) To suggest measures for financing the development of infrastructure

Explanation

The purpose of the Deepak Parekh Committee

This committee, chaired by a prominent banker, was tasked with a specific economic-policy question.

Option	Verdict	Reason
(a) Study socio-economic conditions of minority communities	Incorrect	This describes a different kind of committee (like the Sachar Committee), not Deepak Parekh's
(b) Suggest measures for financing infrastructure development	Correct	The Deepak Parekh Committee was constituted to recommend ways to finance India's infrastructure needs
(c) Frame a policy on genetically modified organisms	Incorrect	This is unrelated to Deepak Parekh's committee mandate
(d) Suggest measures to reduce the fiscal deficit	Incorrect	While related to broader finance, this specific fiscal-deficit-reduction mandate isn't the Deepak Parekh Committee's focus

Deepak Parekh Committee facts:

Point	Detail
Chair	Deepak Parekh (prominent banker/HDFC)
Mandate	Financing infrastructure development

Answer: (b) To suggest measures for financing the development of infrastructure.

(a) Incorrect. Minority community conditions is a different committee's mandate (like the Sachar Committee).
(b) CORRECT. The Deepak Parekh Committee's mandate was to suggest infrastructure financing measures.
(c) Incorrect. GMO policy is unrelated to this committee's mandate.
(d) Incorrect. Fiscal deficit reduction is not the specific focus of this particular committee.

The Deepak Parekh Committee was constituted to suggest measures for FINANCING INFRASTRUCTURE DEVELOPMENT in India.

Deepak Parekh Committee: constituted to suggest measures for financing infrastructure development.

Confusing the Deepak Parekh Committee's infrastructure-financing mandate with unrelated committees (minority studies, GMO policy).
Mixing up fiscal-deficit-focused committees with this specific infrastructure-financing one.
Not knowing Deepak Parekh's banking background relevant to this infrastructure-finance mandate.

Deepak Parekh Committee = infrastructure financing. A specific committee-mandate pairing to remember.

Ministry of Finance, Government of India — Report of the Committee on Infrastructure Financing (Chairman: Deepak Parekh), 2007
Planning Commission, Government of India — Eleventh Five Year Plan (2007–12), Volume I: Inclusive Growth (infrastructure)