UPSC Economy PYQ with Answers

Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth? (Answer in 150 words)

What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met? (Answer in 150 words)

Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies? (Answer in 250 words)

Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved? (Answer in 250 words)

Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities. (Answer in 250 words)

Inequality in the ownership pattern of resources is one of the major causes of poverty. Discuss in the context of ‘paradox of poverty’. (Answer in 250 words)

With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital. How many of the above are treated as Alternative Investment Funds?

1. AOnly one
2. BOnly two✓
3. COnly three
4. DAll the four

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling of Government bonds II. Buying and selling of foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes. Select the correct answer using the code given below.

1. AI and II only
2. BII, III and IV
3. CI, III, IV and V
4. DI, II and V✓

Consider the following statements: I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature. Which of the statements given above is/are correct?

1. AI only
2. BII only✓
3. CBoth I and II
4. DNeither I nor II

Consider the following statements: Statement I: In India, income from allied agricultural activities like poultry-farming and wool rearing in rural areas is exempted from any tax. Statement II: In India, under the provisions of the Income-tax Act, 1961, rural agricultural land is not considered a capital asset. Which one of the following is correct in respect of the above statements?

1. ABoth Statement I and Statement II are correct and Statement II explains Statement I
2. BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
3. CStatement I is correct but Statement II is not correct
4. DStatement I is not correct but Statement II is correct✓

Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India has itself identified all 30 critical minerals as resource-rich. III. Parliament in 2023 amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite (prospecting-cum-mining) licence for certain critical minerals. Which of the statements given above are correct?

1. AI and II only
2. BII and III only
3. CI and III only✓
4. DI, II and III

Consider the following statements: Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II: Bondholders are lenders to a company whereas stockholders are its owners. Statement III: For repayment purpose, bond-holders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?

1. ABoth Statement II and Statement III are correct and both of them explain Statement I✓
2. BBoth Statement I and Statement II are correct and Statement I explains Statement II
3. COnly one of the Statements II and III is correct and that explains Statement I
4. DNeither Statement II nor Statement III is correct

Consider the following statements: I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

1. AI and II only✓
2. BII and III only
3. CI and III only
4. DI, II and III

Consider the following statements: I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

1. AI and II only✓
2. BII and III only
3. CI and III only
4. DI, II and III

Consider the following statements about turmeric during the year 2022-23: I. India is the largest producer and exporter of turmeric in the world. II. More than 30 varieties of turmeric are grown in India. III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric-producing States in India. Which of the statements given above are correct?

1. AI and III only
2. BII only
3. CII and III only
4. DI, II and III✓

Consider the following statements about the Rashtriya Gokul Mission: I. It is important for the upliftment of the rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers. II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner. Which of the statements given above is/are correct?

1. AI only
2. BII only
3. CBoth I and II✓
4. DNeither I nor II

Which one of the following launched the 'Nature Solutions Finance Hub for Asia and the Pacific'?

1. AAsian Development Bank (ADB)✓
2. BAsian Infrastructure Investment Bank (AIIB)
3. CNew Development Bank (NDB)
4. DInternational Bank for Reconstruction and Development (IBRD)

Consider the following activities: I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Production of natural gas. How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

1. AOnly one
2. BOnly two✓
3. COnly three
4. DAll the four

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores. Which of the following statements are correct? I. Revenue deficit is ₹20,000 crores. II. Fiscal deficit is ₹10,000 crores. III. Primary deficit is ₹4,000 crores. Select the correct answer using the code given below.

1. AI and II only
2. BII and III only
3. CI and III only
4. DI, II and III✓

Consider the following statements: Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?

1. ABoth Statement I and Statement II are correct and Statement II explains Statement I
2. BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
3. CStatement I is correct but Statement II is not correct
4. DStatement I is not correct but Statement II is correct✓