UPSC CSE Prelims 1996

Correct Option (b):

International agencies funding development programmes in India under intergovernmental bilateral agreements primarily provide three forms of assistance:

• Technical assistance: This involves the provision of expertise, training, capacity building, and transfer of technology to support various development projects and institutional strengthening.
• Soft loans: These are concessional loans offered at below-market interest rates, often with long repayment periods and grace periods, making them more affordable for developing nations.
• Grants: These are non-repayable financial contributions provided for specific development initiatives, humanitarian aid, or general budgetary support, without an obligation for repayment.

Therefore, statements 1, 2, and 3 accurately describe the main types of aid provided by most international agencies under intergovernmental bilateral agreements.

Incorrect Options:

Statement 4, "Food assistance to be paid back," is generally incorrect in the context of intergovernmental bilateral development agreements. Food assistance is typically provided as humanitarian aid or a grant, meaning it is not required to be paid back. Its inclusion as a repayable component makes options (a), (c), and (d) incorrect. Option (d) is further incorrect as it omits the significant contributions of technical assistance and soft loans, which are major components of international development funding.