Committees — Set 1

Correct Answer: D. Challiah Committee

• **Challiah Committee** = The Challiah Committee (1991) was established to recommend reforms for the Indian tax structure, advocating for lower tax rates and a broader tax base. • **1991** — It played a crucial role during the early liberalization era by setting the direction for tax simplification. • 💡 Wrong-option analysis: Rangarajan Committee: focused on poverty measurement; Narasimham Committee: focused on banking reforms; Kelkar Committee: focused on direct and indirect tax reforms in 2002.

Correct Answer: C. Narasimham Committee

• **Narasimham Committee** = The Narasimham Committee is primarily associated with the first phase of financial sector reforms, recommending reductions in SLR and CRR. • **1991 and 1998** — Its two reports in 1991 and 1998 together shaped the modern Indian banking landscape. • 💡 Wrong-option analysis: Malhotra Committee: recommended insurance sector reforms; Abid Hussain Committee: focused on small-scale industries; Verma Committee: dealt with weak public sector banks.

Correct Answer: D. Insurance Sector

• **Insurance Sector** = The Malhotra Committee (1993) was tasked with suggesting improvements in the insurance sector, recommending private competition and foreign investment. • **IRDA** — Its recommendations led to the establishment of the Insurance Regulatory and Development Authority (IRDA) to regulate the sector. • 💡 Wrong-option analysis: Banking Sector: covered by Narasimham Committee; Small Scale Industries: covered by Abid Hussain Committee; Capital Market: covered by Dave Committee.

Correct Answer: B. Tendulkar Committee

• **Tendulkar Committee** = The Tendulkar Committee (2005) was established to move beyond calorie-based poverty estimation toward a broader consumption expenditure methodology. • **Multi-dimensional basket** — It suggested including expenditure on health and education in the poverty line calculation, widening the definition significantly. • 💡 Wrong-option analysis: Gadgil Committee: related to formula for plan fund allocation; Alagh Committee: defined calorie-based poverty line in 1979; Lakdawala Committee: used CPI-based approach in 1993.

Correct Answer: C. Poverty Measurement

• **Poverty Measurement** = The Rangarajan Committee (2012) was constituted to provide an alternative perspective on poverty measurement after the Tendulkar report. • **Higher thresholds** — It proposed higher consumption thresholds for both rural and urban areas, estimating a larger percentage of the population below the poverty line. • 💡 Wrong-option analysis: Petroleum Pricing: studied by Kirit Parikh Committee; Direct Taxes: covered by Kelkar Committee; Railway Budget: reviewed by Bibek Debroy Committee.

Correct Answer: B. Bibek Debroy Committee

• **Bibek Debroy Committee** = The Bibek Debroy Committee recommended merging the Railway Budget with the General Budget, implemented from 2017-18. • **92-year tradition** — This merger ended a 92-year-old tradition of presenting a separate Railway Budget that began under British rule. • 💡 Wrong-option analysis: Khusro Committee: focused on agricultural credit; Sarkaria Commission: focused on centre-state relations; Sivaraman Committee: led to creation of NABARD.

Correct Answer: B. Small Scale Industries

• **Small Scale Industries** = The Abid Hussain Committee (1997) focused on promoting Small Scale Industries (SSIs) and recommended de-reservation of items exclusively reserved for the sector. • **Global competitiveness** — The de-reservation was aimed at making Indian small businesses more competitive in a globalized economy. • 💡 Wrong-option analysis: Monetary Policy: domain of RBI committees; Agriculture Credit: covered by Khusro and Sivaraman committees; External Debt: covered by specialized economic committees.

Correct Answer: B. Tarapore Committee

• **Tarapore Committee** = The Tarapore Committee was appointed by the RBI to study the feasibility of Full Capital Account Convertibility. • **1997 and 2006** — It laid down specific preconditions like low fiscal deficit and inflation control, submitting influential reports in 1997 and again in 2006. • 💡 Wrong-option analysis: Vimal Jalan Committee: dealt with RBI's economic capital framework; Nayakk Committee: not directly linked to capital account convertibility; Urjit Patel Committee: recommended inflation targeting framework.

Correct Answer: B. Direct and Indirect Tax Reforms

• **Direct and Indirect Tax Reforms** = The Kelkar Committee (2002) provided a comprehensive roadmap for reforming India's tax administration, emphasizing simplification and technology. • **GST blueprint** — Its recommendations eventually paved the way for the implementation of the Goods and Services Tax (GST). • 💡 Wrong-option analysis: Indirect Taxes only: the committee covered both direct and indirect taxes; Banking Consolidation: covered by Narasimham Committee; Public Private Partnership: not the focus of this committee.

Correct Answer: C. Sivaraman Committee

• **Sivaraman Committee** = The Sivaraman Committee recommended the creation of a specialized institution for agricultural and rural development, leading to NABARD's establishment in July 1982. • **July 1982** — NABARD now acts as the apex regulatory body for regional rural banks and cooperative banks. • 💡 Wrong-option analysis: Bhagwati Committee: focused on unemployment; Khosla Committee: related to water resources; Gadgil Committee: focused on banking area approach and plan fund formula.