Economy MCQs for UPSC Prelims
Q1. In discussions on the Ethanol Blended Petrol Programme, the expression 'flex fuel vehicle' denotes which one of the following?
- A. A vehicle whose engine is designed to run on petrol-ethanol blends of widely varying proportions rather than on one fixed blend
- B. A vehicle fitted with two separate fuel systems, allowing the driver to switch between compressed natural gas and petrol as required
- C. A vehicle combining an internal combustion engine with an electric motor, in which the battery is charged by regenerative braking
- D. A heavy-duty vehicle running on ethanol-based diesel substitute fuel with an ignition improver added to the ethanol
Q2. Bharatmala Pariyojana is best described as which one of the following?
- A. An umbrella road development programme approved in 2017 covering about 34,800 km, most of it built by the National Highways Authority of India
- B. A port-led development programme approved in 2015 covering modernisation of major ports and their hinterland rail and road connectivity
- C. A programme approved in 2016 for replacing level crossings on national highways with railway over-bridges and under-bridges
- D. A multi-modal connectivity master plan approved in 2021 that digitally integrates infrastructure projects of sixteen union ministries
Q3. Consider the following statements regarding India's foreign direct investment policy in the pharmaceutical and medical devices sectors:
1. FDI up to 100 per cent is permitted under the automatic route in greenfield pharmaceuticals.
2. In brownfield pharmaceuticals, FDI up to 74 per cent is permitted under the automatic route, and beyond that up to 100 per cent under the Government approval route.
3. FDI up to 100 per cent is permitted under the automatic route for manufacturing of medical devices, without any distinction between greenfield and brownfield.
4. Proposals for brownfield pharmaceutical FDI requiring approval are appraised and cleared by the Securities and Exchange Board of India.
Which of the statements given above is/are correct?
- FDI up to 100 per cent is permitted under the automatic route in greenfield pharmaceuticals.
- In brownfield pharmaceuticals, FDI up to 74 per cent is permitted under the automatic route, and beyond that up to 100 per cent under the Government approval route.
- FDI up to 100 per cent is permitted under the automatic route for manufacturing of medical devices, without any distinction between greenfield and brownfield.
- Proposals for brownfield pharmaceutical FDI requiring approval are appraised and cleared by the Securities and Exchange Board of India.
- A. 1 and 2 only
- B. 2, 3 and 4
- C. 1, 2 and 3
- D. 1 and 4
Q4. Consider the following statements about AstraZeneca:
1. It was formed in 1999 by the merger of Sweden's Astra AB with the United Kingdom-based Zeneca Group.
2. Astra AB, which dated back to 1913, had as its first blockbuster product an anti-ulcer drug called Xylocaine.
3. Zeneca Group, founded in Britain in 1993, was demerged from Imperial Chemical Industries and held a major share of the oncology market.
4. AstraZeneca's Global Innovation and Technology Centre in India is located at Amaravati, Andhra Pradesh.
Which of the statements given above is/are NOT correct?
- It was formed in 1999 by the merger of Sweden's Astra AB with the United Kingdom-based Zeneca Group.
- Astra AB, which dated back to 1913, had as its first blockbuster product an anti-ulcer drug called Xylocaine.
- Zeneca Group, founded in Britain in 1993, was demerged from Imperial Chemical Industries and held a major share of the oncology market.
- AstraZeneca's Global Innovation and Technology Centre in India is located at Amaravati, Andhra Pradesh.
- A. 2 and 4
- B. 1 and 3
- C. 4 only
- D. 1, 2 and 3
Q5. With reference to mechanisms used to separate infrastructure ownership from the provision of services on that infrastructure, consider the following:
Which of the above is/are NOT correct?
- Under the landlord port model adopted through the Major Port Authorities Act, 2021, terminals are run by private concessionaires selected through competitive bidding while the asset reverts to the port authority when the concession expires.
- That Act provides for an Adjudicatory Board to discharge the residual functions of the erstwhile Tariff Authority for Major Ports and to hear disputes between ports and PPP concessionaires.
- In the United States, federal revenue-diversion rules restrict airport income from being channelled by local governments into airline ventures.
- In the European Union, common ownership of an airport and an airline is expressly prohibited by law, which is why no such structure exists anywhere in the bloc.
- A. 1 and 2
- B. 3 only
- C. 4 only
- D. 2 and 4
Q6. Consider the following statements comparing India's domestic air traffic in 2026 with earlier reference periods:
Which of the statements given above is/are correct?
- Domestic passengers carried during January–June 2026 were fewer than those carried in the corresponding period of the previous year.
- Domestic traffic in June 2026 fell to about 13.5 million passengers from about 15.3 million in May 2026.
- IndiGo and the Air India group together account for close to 90 per cent of domestic capacity, a concentration the proposed cross-ownership relaxation is intended to dilute by enabling new entrants.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. With reference to the structure of India's domestic airline market as reflected in the latest available monthly data, consider the following:
Which of the statements given above is/are correct?
- IndiGo's domestic market share in June 2026 stood at about 66 per cent, higher than its share in the preceding month.
- The Air India group's domestic market share declined in June 2026 to below 24 per cent.
- Akasa Air's domestic market share in June 2026 exceeded that of SpiceJet.
- India is the world's second-largest domestic aviation market, ranking ahead of China and behind only the United States.
- A. 1 and 4 only
- B. 2 and 4 only
- C. 1 and 3 only
- D. 1, 2 and 3 only
Q8. Which one of the following pairs of airports was the first to be transferred to private consortia under Operation, Management and Development Agreements in India?
- A. Cochin and Kannur
- B. Bengaluru and Hyderabad
- C. Delhi and Mumbai
- D. Ahmedabad and Lucknow
Q9. Following the Union Cabinet's 2019 approval, the six Airports Authority of India airports awarded to Adani Enterprises Limited were leased out for a period of how many years?
- A. 30 years
- B. 40 years
- C. 50 years
- D. 60 years
Q10. The final assembly line for the E175 jet proposed under the Adani Defence and Aerospace–Embraer memorandum of understanding is intended to serve which one of the following?
- A. India's Regional Transport Aircraft programme
- B. The Regional Connectivity Scheme operated by the civil aviation ministry
- C. The Regional Air Cargo Development initiative of the aviation ministry
- D. The Regional Maintenance, Repair and Overhaul policy for civil aircraft
Q11. As stated by the Ministry of Civil Aviation, how many airports in India are operating under the Public-Private Partnership model?
Q12. Consider the following statements comparing the older Delhi/Mumbai concessions with the newer Jewar and Navi Mumbai concessions:
Which of the statements given above is/are correct?
- The Delhi and Mumbai caps were embedded in Operation, Management and Development Agreements executed when those two airports were handed over to private consortia in 2006, whereas the 26 per cent ceiling appears in the later Noida and Navi Mumbai concessions.
- Altering the Delhi and Mumbai ceiling would require a supplemental agreement negotiated with the Airports Authority of India in its capacity as grantor of those concessions.
- The 10 per cent ceiling at Delhi and Mumbai limits the airport operator's stake in an airline, while the 26 per cent ceiling at Jewar limits the stake airlines may hold in the airport operator.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q13. With reference to the cross-ownership restrictions between airport operators and airlines currently under examination by the Government of India, consider the following:
Which of the above is/are correctly identified?
- Under the Delhi and Mumbai concession agreements, the aggregate shareholding of scheduled airlines in the airport operator is capped at 10 per cent.
- The Noida International (Jewar) and Navi Mumbai concessions permit the airport operator to hold up to 26 per cent in an airline.
- The restriction applies uniformly to every airport in the country irrespective of its ownership pattern, because it is contained in the parent civil aviation statute.
- Any relaxation of the cap can be given effect by the Ministry of Civil Aviation alone, since concession terms lie entirely within its administrative discretion.
- A. 1 and 2
- B. 2 and 3
- C. 1, 2 and 4
- D. 1, 3 and 4
Q14. Consider the following industries:
1. Crude Oil
2. Aluminium
3. Fertilizers
4. Refinery Products
Which of the above is/are correctly identified as constituents of the Index of Eight Core Industries?
- Crude Oil
- Aluminium
- Fertilizers
- Refinery Products
- A. 1 and 3
- B. 2 and 4
- C. 1, 3 and 4
- D. 1, 2 and 3
Q15. The Quick Estimate had placed May 2026 industrial growth at 5.1 per cent. Under the revision policy currently in force, what happened to this figure, and at which stage?
- A. It was revised to 4.9 per cent as the final estimate, released along with the June 2026 Quick Estimate
- B. It was revised to 5.0 per cent as the final estimate, released along with the June 2026 Quick Estimate
- C. It was revised to 5.0 per cent as a first revised estimate, to be finalised along with the July 2026 Quick Estimate
- D. It was revised to 5.5 per cent as a first revised estimate, released along with the June 2026 Quick Estimate
Q16. With reference to the Output Producer Price Index (Output PPI) introduced with base year 2022-23, which one of the following statements is correct?
- A. It captures the average change in prices paid by domestic producers for the inputs they purchase, and has replaced the Wholesale Price Index with immediate effect on introduction
- B. It captures the average change in retail-level prices faced by final consumers, and is the reference measure for the Reserve Bank of India's flexible inflation targeting framework
- C. It captures the average change in prices received by domestic producers for their output, and is being published alongside the Wholesale Price Index, which is to be discontinued after five years
- D. It captures the average change in prices of goods at the point of first bulk sale in wholesale markets, and its coverage is confined to manufactured products alone
Q17. Consider the following index and compiling-agency pairs as they stand in July 2026:
1. Index of Industrial Production — National Statistics Office, Ministry of Statistics and Programme Implementation
2. Wholesale Price Index — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
3. Index of Eight Core Industries — Ministry of Statistics and Programme Implementation
4. Consumer Price Index (Combined) — Reserve Bank of India
Which of the above is/are correctly identified?
- Index of Industrial Production — National Statistics Office, Ministry of Statistics and Programme Implementation
- Wholesale Price Index — Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
- Index of Eight Core Industries — Ministry of Statistics and Programme Implementation
- Consumer Price Index (Combined) — Reserve Bank of India
- A. 1 and 2
- B. 2 and 3
- C. 1, 3 and 4
- D. 1, 2 and 4
Q18. In the Quick Estimate of the Index of Industrial Production for June 2026, which one of the following use-based categories recorded the highest year-on-year growth?
- A. Intermediate goods
- B. Infrastructure and construction goods
- C. Consumer durables
- D. Capital goods
Q19. With reference to the Quick Estimate of the Index of Industrial Production for June 2026 (Base 2022-23=100), consider the following sector and year-on-year growth rate pairs:
1. Mining & Quarrying — 1.0 per cent
2. Manufacturing — 7.8 per cent
3. Electricity & Gas Supply — 6.1 per cent
4. Water Supply, Sewerage and Waste Management — 10.6 per cent
Which of the above is/are correctly identified?
- Mining & Quarrying — 1.0 per cent
- Manufacturing — 7.8 per cent
- Electricity & Gas Supply — 6.1 per cent
- Water Supply, Sewerage and Waste Management — 10.6 per cent
- A. 1 and 2
- B. 3 and 4
- C. 1, 2 and 4
- D. 2 and 3
Q20. The shift of the All-India Index of Industrial Production to the 2022-23 series was undertaken under the aegis of which one of the following committees, whose report was released in May 2026?
- A. The Standing Committee on Economic Statistics, under the Ministry of Statistics and Programme Implementation
- B. The Technical Advisory Committee on Base Year Revision of the Index of Industrial Production
- C. The Working Group on Industrial Statistics, under the Department for Promotion of Industry and Internal Trade
- D. The Advisory Committee on Base Year Revision of National Accounts Statistics, under MoSPI
Q21. The monthly Quick Estimates of the Index of Industrial Production are compiled and released by which one of the following?
- A. The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
- B. The Central Statistics Office, under the Ministry of Commerce and Industry
- C. The National Statistics Office, Ministry of Statistics and Programme Implementation
- D. The Development Monitoring and Evaluation Office, under NITI Aayog
Q22. Under the revised release and revision policy now followed for the monthly Index of Industrial Production, how many estimates are published for any given reference month, and how many days after the reference month is the first of them released?
- A. Three estimates, with the first released within 42 days of the reference month
- B. Two estimates, with the first released within 28 days of the reference month
- C. Three estimates, with the first released within 28 days of the reference month
- D. Two estimates, with the first released within 42 days of the reference month
Q23. Consider the following statements comparing the Index of Industrial Production series with base year 2011-12 and the series with base year 2022-23:
1. The number of item groups in the IIP basket rose from 407 in the earlier series to 463 in the current series.
2. Water Supply, Sewerage and Waste Management was one of the three broad sectors of the earlier series and has since been merged with Electricity to form a single sector.
3. The six use-based categories, namely primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durables and consumer non-durables, have been carried over unchanged into the current series.
Which of the statements given above is/are correct?
- The number of item groups in the IIP basket rose from 407 in the earlier series to 463 in the current series.
- Water Supply, Sewerage and Waste Management was one of the three broad sectors of the earlier series and has since been merged with Electricity to form a single sector.
- The six use-based categories, namely primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durables and consumer non-durables, have been carried over unchanged into the current series.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q24. The new All-India Index of Industrial Production series with base year 2022-23 has a basket of 463 item groups. The largest number of these item groups belongs to which sector, and how many item groups does that sector account for?
- A. Manufacturing, which accounts for 405 of the item groups
- B. Mining & Quarrying, which accounts for 44 of the item groups
- C. Manufacturing, which accounts for 455 of the item groups
- D. Electricity & Gas Supply, which accounts for 29 of the item groups
Q25. Consider the following:
1. Port modernisation and new port development
2. Enhancement of port connectivity, including multi-modal logistics linkages
3. Coastal community development through skill development and livelihood support
4. Exploration of deep-sea polymetallic nodules and deep-ocean mineral mining
Which of the above are correctly identified as components (pillars) of the Sagarmala Programme?
- Port modernisation and new port development
- Enhancement of port connectivity, including multi-modal logistics linkages
- Coastal community development through skill development and livelihood support
- Exploration of deep-sea polymetallic nodules and deep-ocean mineral mining
- A. 1 and 2 only
- B. 1, 2 and 3
- C. 2, 3 and 4
- D. 1, 3 and 4
Q26. Consider the following statements about India's long-term maritime planning frameworks:
1. Development of five green hydrogen/ammonia hubs and over 1,000 green vessels in the country by 2029 is among the initiatives pursued under them.
2. The Cruise Bharat Mission, which aims to double cruise passenger traffic by 2029, is among the initiatives pursued under them.
3. The Maritime Amrit Kaal Vision 2047 was formulated through over 150 stakeholder consultations and an analysis of 50 global benchmarks, and outlines over 300 strategic initiatives.
4. Maritime India Vision 2030 stood repealed on the adoption of the Maritime Amrit Kaal Vision 2047, whose 10 themes replaced its initiatives.
Which of the statements given above are correct?
- Development of five green hydrogen/ammonia hubs and over 1,000 green vessels in the country by 2029 is among the initiatives pursued under them.
- The Cruise Bharat Mission, which aims to double cruise passenger traffic by 2029, is among the initiatives pursued under them.
- The Maritime Amrit Kaal Vision 2047 was formulated through over 150 stakeholder consultations and an analysis of 50 global benchmarks, and outlines over 300 strategic initiatives.
- Maritime India Vision 2030 stood repealed on the adoption of the Maritime Amrit Kaal Vision 2047, whose 10 themes replaced its initiatives.
- A. 1 and 2 only
- B. 2, 3 and 4
- C. 1, 2 and 3
- D. 1, 3 and 4
Q27. Consider the following targets attributed to the Maritime Amrit Kaal Vision 2047:
1. Attaining about 4 million GRT of shipbuilding capacity.
2. Attaining about 10 billion metric tonnes of annual port handling capacity.
3. Placing India among the world's top five shipbuilding nations by 2047.
4. Making India the world's single largest supplier of seafarers by 2030, displacing the Philippines.
Which of the above is/are NOT correct?
- Attaining about 4 million GRT of shipbuilding capacity.
- Attaining about 10 billion metric tonnes of annual port handling capacity.
- Placing India among the world's top five shipbuilding nations by 2047.
- Making India the world's single largest supplier of seafarers by 2030, displacing the Philippines.
- A. 1 only
- B. 2 and 3
- C. 3 and 4
- D. 4 only
Q28. 'Mission 20%', announced in 2026 in the context of India's maritime workforce, sets which one of the following as its headline goal?
- A. Raising the share of women in India's seafaring workforce to one-fifth of the total
- B. Sustaining a 20% year-on-year growth in shipboard employment of Indian seafarers
- C. Making one in every five of the world's seafarers an Indian national
- D. Bringing one-fifth of global merchant fleet tonnage under the Indian flag
Q29. The comparative country-wise seafarer supply and demand estimates on the basis of which India's rank moved from fifth in 2015 to second in 2026 are published under the authority of:
- A. The International Labour Organization, the single body with which every seafarer is registered under the Maritime Labour Convention
- B. The International Maritime Organization alone, which directly certifies all of the world's serving seafarers
- C. BIMCO jointly with the International Chamber of Shipping, in their periodic Seafarer Workforce Report
- D. UNCTAD, whose Review of Maritime Transport enumerates all crew serving on every flagged vessel
Q30. In the country-wise seafarer supply statistics used to track India's rise from a 5.2% share in 2015 to a 12.16% share in 2026, the term 'ratings' denotes:
- A. Exclusively the engine-room personnel of a merchant vessel, all of whom are graded separately from the deck complement
- B. Members of a ship's crew other than those holding a certificate of competency as an officer, forming the supporting shipboard workforce
- C. Grades assigned to a vessel's hull and machinery by a classification society, which every flag State is bound to accept
- D. Scores awarded to candidate officers at each certificate-of-competency examination, on which all promotions are based