January 2025 Flashcards
Consider the following statements with reference to Direct Benefit Transfer (DBT) in India:
- The use of the Public Financial Management System portal is mandatory for payments under DBT.
- Only the beneficiaries, whose bank accounts are linked with their Aadhaar, are eligible to get benefits under DBT.
- DBT Mission and all matters related to it have been placed under the Union Ministry of Finance.
Which of the statements given above is/are correct?
1 only
Explanation :
Transferring subsidies directly to the people through their bank/Post office account is Direct Benefit Transfer. It aims to timely transfer of benefit to the citizen by bringing efficiency, effectiveness, transparency and accountability in the Government system. Through the DBT, the Government intends to achieve electronic transfer of benefits, reduce delays in payments and most importantly, accurate targeting of beneficiaries, thereby curbing leakages and duplication. With the aim of reforming Government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud Direct Benefit Transfer (DBT) was started on 1st January, 2013.
The use of the Public Financial Management System (PFMS) has been made mandatory for payment, accounting and reporting under Direct Benefit Transfer, with effect from 1st April 2015. So, statement 1 is correct.
The Public Financial Management System (PFMS) is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India. PFMS started during 2009 with the objective of tracking funds released under all Plan schemes of Government of India, and real time reporting of expenditure at all levels of Programme implementation.
The primary function of PFMS today is to facilitate sound Public Financial Management System for Government of India by establishing an efficient fund flow system as well as a payment cum accounting network. PFMS provides various stakeholders with a real time, reliable and meaningful management information system and an effective decision support system, as part of the Digital India initiative of Government of India.
No payments under the Direct Benefit Transfer schemes (except PAHAL) are to be processed, unless the electronic payment files for such payments are received through the PFMS system developed by the CGA from 1st April, 2015.
According to the Reserve Bank of India guidelines, use of Aadhaar cards and seeding of bank accounts with those numbers are purely voluntary and not mandatory. Aadhaar is not mandatory in DBT schemes. Since Aadhaar provides unique identity and is useful in targeting the intended beneficiaries, Aadhaar is preferred and beneficiaries are encouraged to have Aadhaar. So, statement 2 is not correct.
DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes. The Mission was transferred to the Department of Expenditure in July, 2013 and continue to function till 14.9.2015. To give more impetus, DBT Mission and matters related thereto has been placed in Cabinet Secretariat under Secretary (Co-ordination & PG) w.e.f. 14.9.2015. So, statement 3 is not correct.
Consider the following statements with reference to the Index of Industrial Production (IIP):
- The base year for IIP calculation in India is 2011-12.
- It assigns equal weightage to all industrial sectors.
- Electricity is treated as infrastructure good under use-based classification.
Which of the statements given above is/are correct?
1 only
Explanation :
The Index of Industrial Production (IIP) is an index for India that details the growth of various sectors in an economy such as mineral mining, electricity and manufacturing, in a stipulated period of time. It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
The current base year is 2011-2012. The base year was changed to 2011-12 from 2004-05 in the year 2017. The previous base years were 1937, 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94 and 2004-05. So, statement 1 is correct.
It chooses a basket of industrial products — ranging from the manufacturing sector to mining to energy, creates an index by giving different weights to each sector and then tracks the production every month. So, statement 2 is not correct.
Basket of products: There are 6 sub-categories:
Primary Goods (consisting of mining, electricity, fuels and fertilizers). So, statement 3 is not correct.
Capital Goods (e.g. machinery items). Intermediate Goods (e.g. yarns, chemicals, semi-finished steel items, etc).
Infrastructure Goods (e.g. paints, cement, cables, bricks and tiles, rail materials, etc).
Consumer Durables (e.g. garments, telephones, passenger vehicles, etc).
Consumer Non-durables (e.g. food items, medicines, toiletries, etc).
Consider the following statements with reference to the Periodic Labour Force Survey (PLFS) and Quarterly Employment Survey (QES):
- The Central Statistics Office publishes PLFS whereas the Labour bureau releases QES.
- The PLFS collects labour force data from the households whereas the QES collects employment data from the non-farm establishments.
Which of the statements given above is/are correct?
2 only
Explanation :
Periodic Labour force survey is published by the National Statistical office. The survey gives estimates of Key employment and unemployment Indicators like the labour force participation rates, worker population ratio, unemployment rate etc.
The Quarterly Employment Survey is one of the two components of the “All-India Quarterly Establishment-based Employment Survey”. The Labour bureau under the aegis of the Ministry of Labour and Employments conducts the Quarterly Employment Survey. So, statement 1 is not correct.
The Periodic Labour force survey collects household labour force data from multiple dimensions like the place of residence, self-employment in house enterprises, principle activity of household members etc. PLFS collects data from the supply side of the labour force. The Quarterly Employment Survey collects the employment data from the non-farm establishments which is the demand side of the labour force. So, statement 2 is correct.
Consider the following statements with reference to Gini Coefficient:
- It is used to measure the degree of income inequality in a given population.
- A range above the scale of 0 represents a movement towards perfect equality.
- Its value for low and high-income countries can never be the same.
Select the correct answer using the code given below.
1 only
Explanation :
The Gini coefficient is a statistical measure of distribution. It is used as a gauge to measure the economic inequality among the population i.e Gini coefficient measures the degree of income inequality in a population. So, statement 1 is correct.
The Gini coefficient is usually defined mathematically based on the Lorenz curve. The Lorenz curve plots the distribution of the income in the population. The Gini coefficient ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality. So, statement 2 is not correct.
In 2016 both Turkey and the U.S. had the same income Gini coefficients around 0.39-0.40. High-income nations and low-income nations can have the same Gini coefficient, as long as incomes are distributed similarly within each country. So, statement 3 is not correct.
Which one of the following best describes the term ‘Employment Elasticity’?
The ratio of employment growth rate to the economic growth rate.
Explanation :
Employment elasticity is a measure of the percentage change in employment associated with a 1 percentage point change in economic growth. It is the ratio of employment growth to the growth of National Income.
The employment elasticity indicates the ability of an economy to generate employment opportunities for its population as a percentage of its growth process.
The Supply Chain Resilience Initiative (SCRI), recently seen in the news is launched by:
India, Japan and Australia
Explanation :
The Supply Chain Resilience Initiative (SCRI) is a trilateral agreement between trade ministers of India, Japan and Australia, launched in April 2021.
The SCRI aims to create a virtuous cycle of enhancing supply chain resilience infrastructure with a view to eventually attaining strong, sustainable, balanced and inclusive growth in the region.
It seeks to build upon the bilateral frameworks like the ASEAN-Japan Economic Resilience Action Plan and India-Japan Industrial Competitiveness Partnership and attract foreign direct investment in the region.
Consider the following statements with reference to Toll-Operate-Transfer (TOT) model:
- It is a mechanism by which contracts for constructing new national highways are given to private entities on a long-term concession basis.
- The toll revenue collected by the private player should be shared with the government.
Which of the statements given above is/are correct?
Neither 1 nor 2
Explanation :
The Toll-Operate-Transfer (TOT) model is an Asset Recycle program wherein already operational National Highways are being provided to private entities on a long-term concession basis. Public funded National Highway (NH) projects which are operational and have a toll revenue generation history of one year after the Commercial Operations Date (COD) shall be monetized through the TOT Model. So, statement 1 is not correct.
The TOT operator has a right to collect user fee (toll) for the lease period (generally for 30 years) and has an obligation to operate and maintain the road, during the lease period. The collected toll revenue need not be shared with the Government. So, statement 2 is not correct.
The TOT model has been developed to encourage private participation in Highway sector and generate more resources for the construction of future highways. It is expected to bring in efficiency in operation and maintenance in the road sector.
Consider the following statements with reference to Negotiable Warehouse Receipts (NWRs):
- It enables the transfer of ownership of a warehoused commodity without the need to deliver the physical commodity.
- It is regulated by the Securities and Exchange Board of India.
- It can be used as collateral for loans from banks.
Which of the statements given above is/are correct?
1 and 3 only
Explanation :
Negotiable Warehouse Receipts (NWRs), which was launched in 2011, allow the transfer of ownership of a commodity stored in a warehouse without having to deliver the physical commodity. So, statement 1 is correct.
Warehouse receipts are made negotiable under the Warehouse (Development and Regulation) Act, 2007, and regulated by the Warehousing Development and Regulatory Authority (WDRA). So, statement 2 is not correct.
NWRs are issued in negotiable form, making them eligible as collateral for loans. Both farmers and businesses can store their produce in WDRA-registered warehouses and seek loans from banks against them. In 2021, the RBI had increased the loan limits for bank lending against NWRs and e-NWRs from ₹50 lakh to ₹70 lakh per borrower. So, statement 3 is correct.
‘Liquidity trap’ refers to a situation where:
Expansionary monetary policy does not stimulate economic growth.
Explanation :
A liquidity trap is a situation when expansionary monetary policy (increase in money supply) does not increase the interest rate, income and hence does not stimulate economic growth.
Liquidity trap is the extreme effect of monetary policy. It is a situation in which the general public is prepared to hold on to whatever amount of money is supplied, at a given rate of interest. They do so because of the fear of adverse events like deflation, war.
In that case, a monetary policy carried out through open market operations has no effect on either the interest rate, or the level of income. In a liquidity trap, the monetary policy is powerless to affect the interest rate.
The term ‘Renewable Purchase Obligation’ sometimes found in news refers to:
Mandating certain entities to meet a part of their electricity consumption from renewable resources.
Explanation :
To provide a fillip to the ambitious renewable energy targets, obligations have been imposed on certain entitles to purchase energy from renewable sources by various state electricity regulatory commissions (SERCs) based on each state’s varying renewable energy potentials.
Known as renewable purchase obligations (RPOs), power distribution companies, captive power plants and other large electricity consumers are bound to meet them by purchasing a certain percentage of their requirements from renewable energy sources. Applicable regulations also provide for the purchase of renewable energy certificates (RECs) in lieu of purchasing renewable power by obligated entities from the National Load Dispatch Centre.
Which one of the following statements is not correct with reference to ‘Green Bonds’?
In India, they are issued only by the government and not private parties.
Explanation :
Green bonds are issued by companies, countries and multilateral organisations to exclusively fund projects that have positive environmental or climate benefits and provide investors with fixed income payments. The projects can include renewable energy, clean transportation and green buildings, among others.
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects. The World Bank is a major issuer of green bonds. It has issued 164 such bonds since 2008, worth a combined $14.4 billion.
These bonds can be marketed toward Environmental, Social and Governance (ESG) focused funds. The green bond market has seen cumulative issuance worth more than $1 trillion since market inception in 2007. If the bond carries a lower yield, it could be more attractive for foreign investors given their enhanced appetite for this category of bonds, compared to local money managers.
In India, green bonds are issued by private parties since 2015. Green Bonds constituted only 0.7 percent of all the bonds issued in India since 2018. As a part of the government of India’s overall market borrowings in 2022-23, sovereign Green Bonds will also be issued for mobilizing resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.
Consider the following statements with reference to the ‘Nice Agreement’:
- It is only open to countries that are members of the World Trade Organization.
- India is a signatory to this agreement.
Which of the statements given above is/are correct?
2 only
Explanation :
The ‘Nice Agreement’ on the international classification of goods and services for the purposes of registering trademarks and service mark, was concluded in Nice in 1957.
The Agreement is open to States parties to the Paris Convention for the Protection of Industrial Property (1883). So, statement 1 is not correct.
In 2019, India had acceded to
The Nice Agreement concerning the International classification of Goods and Services for the purposes of registration of marks.
The Vienna Agreement establishing an International Classification of the figurative elements of marks
The Locarno Agreement establishing an International classification for industrial designs.
Consider the following statements:
- The expression ‘Union of India’ includes only the states and not the Union Territories.
- India is a quasi-federal state, with the Centre having more powers.
- Indian Federation comprises of states joined together as a result of their agreements with the Centre.
Which of the statements given above is/are correct?
1 and 2 only
Explanation :
Notably, the ‘Territory of India’ is a wider expression than the ‘Union of India’ because the latter includes only states while the former includes not only the states, but also union territories and territories that may be acquired by the Government of India at any future time. So, statement 1 is correct.
Though it is true that India is not a strictly federal nation, rather it is a quasi-federal state with asymmetric federalism, where more power is concentrated in the hands of the Centre. So, statement 2 is correct.
While submitting the draft Constitution in 1948, Dr B R Ambedkar, chairman of the drafting committee, had said that the committee had used the world ‘Union’ because (a) the Indian federation was not the result of an agreement by the units, and (b) the component units had no freedom to secede from the federation. So, statement 3 is not correct.
Which of the following provisions of the Constitution were added by the 44th Constitutional Amendment Act, 1978?
Restored the jurisdiction of the Supreme Court and the High Courts in respect of judicial review and issue of writs.
Deprived the Parliament of its special powers to make laws to deal with anti-national activities.
Removed the provisions which took away the power of the Court to decide the election disputes.
Restricted the time period of preventive detention to two months.
Select the correct answer using the code given below:
3 and 4 only
Explanation :
The 43rd Amendment Act, 1977 Restored the jurisdiction of the Supreme Court and the high courts in respect of judicial review and issue of writs; and Deprived the Parliament of its special powers to make laws to deal with anti-national activities. So, statements 1 and 2 are not correct.
The 44th Constitutional Amendment Act, 1978 removed the provisions which took away the power of the court to decide the election disputes; and restricted the time period of preventive detention to two months. So, statements 3 and 4 are correct.
Consider the following statements with reference to service voters:
- Only the wife of a male service voter, not the husband of a female service voter, can be considered a service voter.
- A service voter belonging to Armed Forces can vote only through a postal ballot.
- A service voter is issued an Elector Photo Identity Card (EPIC) like ordinary electors.
Which of the statements given above is/are correct?
1 only
Explanation :
A service voter is a voter having service qualification. Service Voters include those serving in the Armed Forces of the Union, those serving in a Force to which the Army Act 1950 applies (Assam Rifles, CRPF, BSF, ITBP, SSB, NSG, GREF in BRO, CISF etc.); those employed under the Government of India, in a post outside India or a member of an Armed Police Force of a State, serving outside that state.
The wife of a service voter shall, if she is ordinarily residing with him, be also deemed to be a service voter in the constituency. This facility is available only to the wife of a male service voter and is not available to the husband of a female service voter. His children of 18 years of age and above or his other relations or his domestic servants staying with him are also not entitled to be registered as service voters. So, statement 1 is correct.
Service voter belonging to Armed Forces or forces to which provisions of Army Act, 1950 are applicable, has the option of either voting through postal ballot or through a proxy voter duly appointed by him. A service voter who opts for voting through a proxy is called a Classified Service Voter (CSV). So, statement 2 is not correct.
A service voter is not issued Elector Photo Identity Card (EPIC). Elector Photo Identity Card (EPIC) is a document of identity which an elector has to show at the polling station at the time of casting his vote. As service voters are issued postal ballots or votes through his ‘proxy’, they are not required to visit the polling stations personally and therefore Elector Photo Identity Cards (EPICs) is not issued to them. So, statement 3 is not correct.
Consider the following statements:
- The right to vote is a fundamental right in India.
- Individuals under preventive detention are not eligible to cast their votes in an election.
Which of the statements given above is/are not correct?
Both 1 and 2
Explanation :
The right to vote has been recognised under the Article-326 of the Indian Constitution and is a Legal right, not a Fundamental Right. It is also not mentioned under the Part-III of the Constitution. Legal rights are the one’s endowed to people from any statute enacted by the legislature. So, statement 1 is not correct.
As per Rule 18 of the Conduct of Elections Rules, 1961, the electors under preventive detention are entitled to cast their votes by post. So, statement 2 is not correct.
Consider the following statements with reference to Electoral Trusts in India:
- It cannot accept donations from any other electoral trust in India.
- It can make donations to political parties through electoral bonds.
Which of the statements given above is/are correct?
Both 1 and 2
Explanation :
An Electoral Trust is a non-profit company established for orderly receipt of the voluntary contributions from any person (or company) for distributing the same to the respective political parties, registered under Section 29A of the Representation of People Act, 1951. the Electoral Trusts Scheme, 2013 the rules provide that the electoral trust shall be a company registered for the purposes of section 25 of the Companies Act, 1956.
According to the rules for Electoral trusts, an electoral trust shall not accept contributions—
from an individual who is not a citizen of India
from any other electoral trust which has been registered as a company and approved as an electoral trust under the Electoral Trusts Scheme, 2013
from a Government company
from a foreign source
So, statement 1 is correct.
Recently, for the first time, an electoral trust has declared donation through electoral bonds and hasn’t revealed the names of the political parties that received the money, citing anonymity guaranteed under the electoral bond scheme. So, statement 2 is correct.
With reference to Electoral bonds, which one of the following statements is correct?
A. The beneficiary political party is required to reveal the identity of the entity that has given it the bonds. B. It can only be purchased by companies. C. Only political parties registered under the Representation of the Peoples Act, 1951 are eligible to receive electoral bonds. D. All of the above
Only political parties registered under the Representation of the Peoples Act, 1951 are eligible to receive electoral bonds.
Explanation :
“Electoral bonds” are interest-free bearer instruments (like Promissory Notes) that are available for purchase from the State Bank of India within a designated window of 10 days in every quarter of the financial year. Buyers of the bonds have to submit full KYC details at the time of buying. However, the beneficiary political party is not required to reveal the identity of the entity that has given it the bonds. So, option (a) is not correct.
Electoral Bonds can be purchased by a person, who is a citizen of India or a company incorporated or established in India. So, option (b) is not correct.
Only the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one percent of the votes polled in the last general election to the House of the People or a Legislative Assembly are eligible to receive electoral bonds. So, option (c) is correct.
With reference to Alternate Dispute Resolution Techniques, consider the following statements:
- The process of dispute resolution through arbitration is confidential.
- Mediation is a dispute resolution approach based on the parties’ mutual consent.
Which of the statements given above are correct?
Both 1 and 2
Explanation :
Arbitration is a private arrangement of taking disputes to a less adversarial, less formal and more flexible forum and abiding by judgment of a selected person instead of carrying it to the established courts of justice. Arbitration can be chosen by the parties either by way of an agreement (Arbitration Agreement) or through the reference of the Court. The parties in an arbitration have the freedom to select a qualified expert known as an arbitrator. The process of dispute resolution through arbitration is confidential. So, statement 1 is correct.
Mediation is a method of Alternate Dispute Resolution (ADR) in which parties appoint a neutral third party who facilitates the mediation process in-order to assist the parties in achieving an acceptable, voluntary agreement. Mediation is premised on the voluntary will of the parties and is a flexible and informal technique of dispute resolution. The outcome of mediation does not have similar binding like an arbitral award. However, though non-binding- these resolution agreements may be incorporated into a legally binding contract, which is binding on the parties who execute the contract. So, statement 2 is correct.
Consider the following statements:
- The Directorate of Enforcement (ED) works under the control of the Ministry of Home Affairs.
- The National Investigation Agency (NIA) can investigate offences committed outside India.
Which of the statements given above are correct?
2 only
Explanation :
Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India, which enforces the following laws: -
Foreign Exchange Management Act, 1999 (FEMA)
Prevention of Money Laundering Act, 2002 (PMLA). So, statement 1 is not correct.
National Investigation Agency (NIA) is functioning as the Central Counter-Terrorism Law Enforcement Agency in the country. The NIA has been constituted after the Mumbai terror attack in November 2008 mainly for the investigation of incidents of terrorist attacks, funding of terrorism and other terror-related crime. The National Investigation Agency (Amendment) Act, 2019, empowered the agency to investigate offences committed outside India, subject to international treaties and domestic laws of other countries. The 2019 amendment also allowed the central government to designate Sessions Courts as Special Courts for the trial of scheduled offences under the Act. So, statement 2 is correct.
With reference to the Memorandum of Procedure (MoP) of judicial appointments, consider the following statements:
- It prescribes that a candidate must be appointed within four months after the collegium has recommended her/his name.
- The Government of India cannot refuse to appoint a candidate reiterated for appointment by the collegium.
Which of the statements given above is/are correct?
2 only
Explanation :
The Memorandum of Procedure is a document framed by the government in consultation with the Chief Justice of India, which lays down the procedure for the appointment of judges to the Supreme Court and various High Courts. It was first issued in November 1947 and has been updated since.
Whenever a vacancy is expected to arise in the office of a Judge of the Supreme Court, the Chief Justice of India will initiate a proposal and forward his recommendation to the Union Minister of Law, Justice and Company Affairs to fill up the vacancy. There is no such timeline for this procedure and also, the MoP does not prescribe a timeline for the Centre to forward the recommendations. So, statement 1 is not correct.
The government at the first instance can refuse to appoint a judge recommended by the collegium. One way of resolving this is for judges to bend or simply not recommend a contentious candidate. Another strategy is for the collegium to reiterate certain names, even if they have been sent back by the government. In such cases, the executive must accept it as a “healthy convention”. The Supreme Court in order has said that “if the Supreme Court collegium after consideration of the aforesaid inputs still reiterates the recommendation(s) unanimously…such appointment should be processed and appointment should be made within three to four weeks.’’ So, statement 2 is correct.
With reference to the Chief Justice of India (CJI), consider the following statements:
- No woman has been appointed to the post of CJI since Independence.
- The Second Judges Case of 1993 devised a specific procedure called ‘Collegium System’ for the appointment and transfer of judges in the higher judiciary.
Which of the statements given above is/are correct?
Both 1 and 2
Explanation :
Article 124 of the Indian Constitution provides for the appointment of the Chief Justice of India and other judges of the Supreme Court.
Till now no woman has been appointed as the Chief Justice of India. Recently, 3 female judges have been elevated to the Supreme Court. Justice B. V. Nagarathna’s elevation, in particular, is being seen as the proverbial breaking of the glass ceiling, since she is likely to be the first woman Chief Justice of India in 2027, albeit for a short tenure of 40 days. She had also made history in 2008 when she became the first woman lawyer from the Bar to join the Karnataka High Court. Fathima Beevi was the first woman judge of the Supreme Court. So, statement 1 is correct.
In The Supreme Court Advocates-on-Record Association Vs Union of India, 1993 (2ND Judges Case), a nine-judge Constitution Bench overruled the decision in S P Gupta, and devised a specific procedure called ‘Collegium System’ for the appointment and transfer of judges in the higher judiciary. Ushering in the collegium system, the court said that the recommendation should be made by the CJI in consultation with his two senior-most colleagues, and that such recommendation should normally be given effect to by the executive. So, statement 2 is correct.
THIRD JUDGES CASE: In 1998, President K R Narayanan issued a Presidential Reference to the Supreme Court over the meaning of the term “consultation” under Article 143 of the Constitution (advisory jurisdiction). The question was whether “consultation” required consultation with a number of judges in forming the CJI’s opinion, or whether the sole opinion of CJI could by itself constitute a “consultation”. In response, the Supreme Court laid down nine guidelines for the functioning of the coram for appointments and transfers – this has come to be the present form of the collegium, and has been prevalent ever since. This opinion laid down that the recommendation should be made by the CJI and his four senior-most colleagues, instead of two. It also held that Supreme Court judges who hailed from the High Court for which the proposed name came, should also be consulted. It was also held that even if two judges gave an adverse opinion, the CJI should not send the recommendation to the government.
Consider the following statements:
- The Indian Constitution provides for the minimum age for a person to be appointed as a judge of the Supreme Court and High Court.
- The age of retirement for the judges of the Supreme Court and High Court is sixty-five.
Which of the statements given above is/are correct?
Neither 1 nor 2
Explanation :
Qualifications of the judge of Supreme Court are mentioned in Article 124 (3) and the Constitution has not prescribed a minimum age for appointment as a judge of the Supreme Court. Similarly, Article 217 of the Constitution does not mention any minimum age for the judges of the High Court. So, statement 1 is not correct.
The Constitution has not fixed the tenure of a judge of the Supreme Court. However, he holds office until he attains the age of 65 years. While a judge of High holds office until he attains the age of 62 years. So, statement 2 is not correct.
What was the exact status of India between 15th August 1947 and 26th January 1950?
A British Dominion
Explanation :
On 15th August 1947, India and Pakistan acquired dominion status. While India remained a dominion till 1950, Pakistan retained the status till 1956.
In simpler words, dominions were autonomous communities within the British Empire which were “equal in status” but had an “allegiance to the Crown”. What it meant was that King George VI continued to reign as the Emperor of India and Lord Mountbatten was the first Governor-General of the country. Jawahar Lal Nehru was sworn in as the premier but served on the command of the British Governor-General, and unelected Indian nationalist leaders were administered oaths in the name of the British King-Emperor. What it also meant was that a British field marshall led the Indian army and judges appointed by the British continued to be part of the high courts and the federal court.
Till the passage of the Indian Independence Act, 1947, India was a dependency (colony) of the British Empire. From August 15, 1947 to January 26, 1950, India’s political status was that of a dominion in the British Commonwealth of Nations. India ceased to be a British dominion on January 26, 1950, by declaring herself a sovereign republic.