Indian Economy – UPSC Prelims PYQs

618 questions · 1995–2026 · answers as per the UPSC key · page 8 of 13

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Topics: Infrastructure & Industry (79)Human Development, Poverty & Employment Schemes (64)Agriculture & Rural Development (60)Banking & Financial Sector (55)External Sector & Balance Of Payments (49)Fiscal Policy & Budget (46)Financial Markets & Capital Markets (41)International Trade & WTO (41)International Institutions & Reports (39)National Income & Economic Growth (37)Monetary Policy & Money Supply (30)Digital Payments & Financial Inclusion (23)Economic Planning & Five-Year Plans (19)Taxation (19)Inflation & Price Indices (14)IT & Services Sector (2)

With reference to Indian economy, consider the following statements :

  1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.
  2. The percentage share of Public Sector in GDP has declined in the last 10 years.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (b) 2 only

The International Development Association, a lending agency, is administered by the

(a) International Bank for Reconstruction and Development
(b) International Fund for Agricultural Development
(c) United Nations Development Programme
(d) United Nations Industrial Development Organization
Show answer
Answer: (a) International Bank for Reconstruction and Development

Match List I with List II and select the correct answer using the code given below the lists:

  1. Gujarat Heavy Chemicals Ltd.
  2. Raymond Ltd.
  3. Vedanta Resources
  4. Videocon Group

List I (Person) A. Anil Agarwal B. Gautam H. Singhania C. Sanjay Dalmia D. Venugopal Dhoot

List II (Organization)

(a) A-3 B-1 C-2 D-4
(b) A-4 B-1 C-2 D-3
(c) A-3 B-2 C-1 D-4
(d) A-4 B-2 C-1 D-3
Show answer
Answer: (c) A-3 B-2 C-1 D-4

Consider the following statements:

  1. MMTC Limited is India's largest international trading organisation.
  2. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Orissa.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2

In which one of the following States has India's largest private sector sea port been commissioned recently?

(a) Andhra Pradesh
(b) Karnataka
(c) Kerala
(d) Tamil Nadu
Show answer
Answer: (a) Andhra Pradesh

Which one of the following pairs is not correctly matched?

(a) Japan : Nikkei
(b) Singapore : Shcomp
(c) UK : FTSE
(d) USA : Nasdaq
Show answer
Answer: (b) Singapore : Shcomp

Consider the following statements:

  1. The Commission for Agricultural Costs and Prices recommends the Minimum Support Prices for 32 crops.
  2. The Union Ministry of Consumer Affairs, Food and Public Distribution has launched the National Food Security Mission.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (d) Neither 1 nor 2

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

With

which one of the following has the B. K. Chaturvedi Committee dealt?

(a) Review of Centre-State relations
(b) Review of Delimitation Act
(c) Tax reforms and measures to increase revenues
(d) Price reforms in the oil sector
Show answer
Answer: (d) Price reforms in the oil sector

With reference to the schemes launched by the Union Government, consider the following statements:

  1. Ministry of Health and Family Welfare launched the Rashtriya Swasthya Bima Yojana.
  2. Ministry of Textiles launched the Rajiv Gandhi Shilpi Swasthya Bima Yojana.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (b) 2 only

Consider the following pairs : Large Bank

  1. ABN Amro Bank : USA
  2. Barclays Bank : UK
  3. Kookmin Bank : Japan

Country of origin

Which of the above pairs is/are correctly matched ?

(a) 1 only
(b) 2 only
(c) 1 and 2
(d) 2 and 3
Show answer
Answer: (b) 2 only

Which one of the following brings out the publication called "Energy Statistics" from time to time ?

(a) Central Power Research Institute
(b) Planning Commission
(c) Power Finance Corporation Ltd.
(d) Central Statistical Organization
Show answer
Answer: (d) Central Statistical Organization
UPSC 2009 · Q49 · Indian Economy › Taxation · Save

Consider the following :

  1. Fringe Benefit Tax
  2. Interest Tax
  3. Securities Transaction Tax

Which of the above is/are Direct Tax/Taxes ?

(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (d) 1, 2 and 3

During which Five Year Plan was the Emergency clamped, new elections took place and the Janata Party was elected ?

(a) Third
(b) Fourth
(c) Fifth
(d) Sixth
Show answer
Answer: (c) Fifth

Consider the following statements :

  1. Infant mortality rate takes into account the death of infants within a month after birth.
  2. Infant mortality rate is the number of infant deaths in a particular year, per 100 live births during that year.

Which of the above statements is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (d) Neither 1 nor 2

Consider the following statements :

  1. The first telegraph line in India was laid between Kolkata (formerly Calcutta) and Diamond Harbour.
  2. The first Export Processing Zone in India was set up in Kandla.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2

Consider the following statements regarding Indian Planning :

  1. The Second Five-Year Plan emphasised on the establishment of heavy industries.
  2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialisation.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (a) 1 only

Consider the following pairs :

  1. Ashok Leyland : Hinduja Group
  2. Hindalco Industries : A.V. Birla Group
  3. Suzlon Energy : Punj Lloyd Group

Which of the pairs given above is/are correctly matched ?

(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (a) 1 and 2 only

In the context of global economy,

which one of the following pairs is not correctly matched ?

(a) JP Morgan Chase : Financial Services
(b) Roche Holding AG : Financial Services
(c) WL Ross & Co. : Private Equity Firm
(d) Warburg Pincus : Private Equity Firm
Show answer
Answer: (b) Roche Holding AG : Financial Services

In the context of independent India's economy, which one of the following was the earliest event to take place ?

(a) Nationalisation of Insurance companies
(b) Nationalisation of State Bank of India
(c) Enactment of Banking Regulation Act
(d) Introduction of First Five-Year Plan
Show answer
Answer: (c) Enactment of Banking Regulation Act

In the context of Indian news in recent times, what is MCX-SX ?

(a) A kind of supercomputer
(b) Title of Moon Impact Probe
(c) Stock exchange
(d) Nuclear-powered submarine
Show answer
Answer: (c) Stock exchange

Which of the following pairs about India's economic indicator and agricultural production (all in rounded figures) are correctly matched?

  1. GDP per capita (current prices) : Rs 37,000
  2. Rice : 180 million tons
  3. Wheat : 75 million tons

Select the correct answer using the code given below :

(a) 1, 2 and 3
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1 and 3 only
Show answer
Answer: (d) 1 and 3 only

In August 2006, the Government of India notified the Rural Electrification Policy. This policy aims at provision of access to all households by which year?

(a) 2008
(b) 2009
(c) 2010
(d) 2012
Show answer
Answer: (b) 2009

As per India's National Population Policy, 2000,

by which one of the following years is it our long-term objective to achieve population stabilization?

(a) 2025
(b) 2035
(c) 2045
(d) 2055
Show answer
Answer: (c) 2045

Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS):

  1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible.
  2. The Central Assistance under this Scheme is at the rate of Rs 300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (d) Neither 1 nor 2

What is the name of the scheme which provides training and skills to women in traditional and non-traditional trades?

(a) Kishori Shakti Yojna
(b) Rashtriya Mahila Kosh
(c) Swayamsiddha
(d) Swalamban
Show answer
Answer: (d) Swalamban

Which one amongst the following has the largest livestock population in the world?

(a) Brazil
(b) China
(c) India
(d) USA
Show answer
Answer: (c) India

Which of the following pairs in respect of current power generation in India is/are correctly matched? (Rounded Figure)

  1. Installed electricity generation capacity : 100000 MW
  2. Electricity generation : 660 billion kWh

Select the correct answer using the code given below:

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (b) 2 only
This question uses a table or figure from the original paper that is not reproduced here.

The term “Prisoner’s Dilemma” is associated with which one of the following?

(a) A technique in glass manufacture
(b) A term used in shipping industry
(c) A situation under the Game Theory
(d) Name of a supercomputer
Show answer
Answer: (c) A situation under the Game Theory

India is a member of which of the following?

  1. Asian Development Bank
  2. Asia-Pacific Economic Cooperation
  3. Colombo Plan
  4. Organization for Economic Cooperation and Development (OECD)

Select the correct answer using the code given below:

(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 2 and 3 only
(d) 1, 2, 3 and 4
Show answer
Answer: (a) 1 and 3 only

Which of the following are the public sector undertakings of the Government of India?

  1. Balmer Lawrie and Company Ltd.
  2. Dredging Corporation of India
  3. Educational Consultants of India Ltd.

Select the correct answer using the code given below:

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (d) 1, 2 and 3

How is the United Nations Monetary and Financial Conference wherein the agreements were signed to set up IBRD, GATT and IMF, commonly known?

(a) Bandung Conference
(b) Bretton Woods Conference
(c) Versailles Conference
(d) Yalta Conference
Show answer
Answer: (b) Bretton Woods Conference

How much is one barrel of oil approximately equal to?

(a) 131 litres
(b) 159 litres
(c) 257 litres
(d) 321 litres
Show answer
Answer: (b) 159 litres

What does S & P 500 relate to?

(a) Supercomputer
(b) A new technique in e-business
(c) A new technique in bridge building
(d) An index of stocks of large companies
Show answer
Answer: (d) An index of stocks of large companies

Match List-I with List-II and select the correct answer using the code given below the Lists:

  1. Bengaluru
  2. Guntur
  3. Kottayam
  4. Kolkata

List-I (Board) A. Coffee Board B. Rubber Board C. Tea Board D. Tobacco Board

List-II (Headquarters)

Code:

(a) A-2 B-4 C-3 D-1
(b) A-1 B-3 C-4 D-2
(c) A-2 B-3 C-4 D-1
(d) A-1 B-4 C-3 D-2
Show answer
Answer: (b) A-1 B-3 C-4 D-2

Match List-I with List-II and select the correct answer using the code given below the lists:

  1. Essar Group
  2. Info Edge India (which runs naukri.com)
  3. Indian Airlines
  4. Suzlon Energy

List-I (Person) A. Vishwapati Trivedi B. Tulsi R. Tanti C. Shashi Ruia D. S. Bikachandani

List-II (Company)

Codes:

(a) A-2 B-4 C-1 D-3
(b) A-3 B-1 C-4 D-2
(c) A-2 B-3 C-4 D-1
(d) A-3 B-4 C-1 D-2
Show answer
Answer: (d) A-3 B-4 C-1 D-2

With reference to the steel industry in India in recent times, consider the following statements:

  1. Vizag Steel Plant (RINL) has been declared a Mini-Ratna.
  2. Merger of IISCO with SAIL has been completed.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2

Match List-I with List-II and select the correct answer using the code given below the Lists :

  1. Hirakud
  2. Korba
  3. Koraput
  4. Renukoot

List-I (Aluminium Company) A. BALCO B. HINDALCO C. Indian Aluminium Company D. NALCO

List-II (Location)

(a) A-3 B-1 C-4 D-2
(b) A-2 B-4 C-1 D-3
(c) A-3 B-4 C-1 D-2
(d) A-2 B-1 C-4 D-3
Show answer
Answer: (b) A-2 B-4 C-1 D-3

Basel II relates

to which one of the following?

(a) International standard for safety in civil aviation
(b) Measure against cyber crimes
(c) Measure against drug abuse by sportspersons
(d) International standards for measuring the adequacy of a bank’s capital
Show answer
Answer: (d) International standards for measuring the adequacy of a bank’s capital

Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?

(a) Service – Industry – Agriculture
(b) Service – Agriculture – Industry
(c) Industry – Service – Agriculture
(d) Industry – Agriculture – Service
Show answer
Answer: (a) Service – Industry – Agriculture

Consider the following statements:

  1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
  2. A value of 1 for the Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (a) 1 only

The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?

(a) State Bank of India
(b) Reserve Bank of India
(c) ICICI Bank
(d) Life Insurance Corporation of India
Show answer
Answer: (b) Reserve Bank of India

Tarapur Committee was associated with which one of the following?

(a) Special Economic Zones
(b) Fuller capital account convertibility
(c) Foreign exchange reserves
(d) Effect of oil prices on the Indian economy
Show answer
Answer: (b) Fuller capital account convertibility

Who among the following served as the Chief Economist of the International Monetary Fund?

(a) Ashok Lahiri
(b) Sumantra Ghosal
(c) Saumitra Chaudhuri
(d) Raghuram Rajan
Show answer
Answer: (d) Raghuram Rajan

Participatory Notes (PNs) are associated with which one of the following?

(a) Consolidated Fund of India
(b) Foreign Institutional Investors
(c) United Nations Development Programme
(d) Kyoto Protocol
Show answer
Answer: (b) Foreign Institutional Investors

Assertion (A): ‘Balance of Payments’ represents a better picture of a country’s economic transactions with the rest of the world than the ‘Balance of Trade’.

Reason (R): ‘Balance of Payments’ takes into account the exchanges of both visible and invisible items whereas ‘Balance of Trade’ does not.

(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Show answer
Answer: (a) Both A and R are true and R is the correct explanation of A

Consider the following statements in respect of welfare schemes launched by the Ministry of Rural Development, Government of India:

  1. Drinking water for rural areas is one of the components of the Bharat Nirman Plan.
  2. In the National Rural Employment Guarantee Act, 2005 there is a provision that the statutory minimum wage applicable to agriculture workers in the State has to be paid to the workers under the Act.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (c) Both 1 and 2

Which one of the following statements is correct? Fiscal Responsibility and Budget Management Act (FRBMA) concerns

(a) fiscal deficit only
(b) revenue deficit only
(c) both fiscal and revenue deficit
(d) neither fiscal deficit nor revenue deficit
Show answer
Answer: (c) both fiscal and revenue deficit

What is IndoNext which was launched in January, 2005?

(a) A new scheme to promote Indian tourism
(b) A new scheme to promote export of Indian handicrafts
(c) An association of the Non-Resident Indians to organize Pravasi Bharatiya Divas every year in India
(d) An alternative trading platform being promoted by the Bombay Stock Exchange and Regional Stock Exchanges
Show answer
Answer: (d) An alternative trading platform being promoted by the Bombay Stock Exchange and Regional Stock Exchanges

Which one of the following Indian banks is not a nationalized bank?

(a) Corporation Bank
(b) Dena Bank
(c) Federal Bank
(d) Vijaya Bank
Show answer
Answer: (c) Federal Bank