UPSC Prelims Practice Questions — Unexpected surge

Q1. The Index of Industrial Production (IIP) is compiled and released by which one of the following bodies?

  • A. National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
  • B. Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Reserve Bank of India, Department of Statistics and Information Management

Q2. In the expression 'base year 2011-12 = 100' used for the IIP, what does the base year precisely denote?

  • A. The reference year whose production level is set equal to 100, against which output of later periods is measured
  • B. The only year for which actual physical production data are ever collected
  • C. The first year in which the IIP achieved an index value above 100
  • D. The financial year in which the IIP must compulsorily be re-based by statute

Q3. The Eight Core Industries together account for approximately what share of the weight of items included in the IIP?

  • A. 40.27%
  • B. 24.27%
  • C. 50.27%
  • D. 30.27%

Q4. In the use-based classification of the February 2026 IIP, which single category recorded the highest year-on-year growth, driving the divergence from the core sector?

  • A. Capital goods
  • B. Infrastructure/Construction goods
  • C. Consumer durables
  • D. Intermediate goods

Q5. The Index of Eight Core Industries, whose 2.3% February 2026 reading diverged from the IIP, is released by which body?

  • A. Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
  • B. National Statistical Office, Ministry of Statistics and Programme Implementation
  • C. NITI Aayog, Economics and Statistics Division
  • D. Reserve Bank of India, Monetary Policy Department

Q6. Within the use-based classification of the IIP, the term 'capital goods' is best defined as which one of the following?

  • A. Durable produced goods such as machinery and equipment used as inputs for further production, read as a proxy for investment demand
  • B. Goods purchased by households for final consumption that last more than a year
  • C. Raw materials and semi-finished inputs wholly consumed within the production process
  • D. Goods specifically used in roads, bridges and building construction

Q7. The 'capital goods' sub-index is reported under which classification framework of the IIP?

  • A. Use-Based Classification (UBC)
  • B. Sectoral classification (Mining, Manufacturing, Electricity)
  • C. National Industrial Classification (NIC-2008)
  • D. Broad Economic Categories (BEC)

Q8. With reference to the new IIP series compared with the earlier series, consider the following statements: 1. The new series shifts the base year from 2011-12 to 2022-23. 2. The new series widens coverage by adding minor minerals and rare earth minerals in Mining and including Gas Supply and Water Supply, Sewerage & Waste Management activities. 3. The 2022-23 revision is the first-ever revision of the IIP base year. Which of the statements given above is/are correct?

  1. The new series shifts the base year from 2011-12 to 2022-23.
  2. The new series widens coverage by adding minor minerals and rare earth minerals in Mining and including Gas Supply and Water Supply, Sewerage & Waste Management activities.
  3. The 2022-23 revision is the first-ever revision of the IIP base year.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. In the context of monthly IIP releases, what are the 'Quick Estimates'?

  • A. Provisional IIP figures released with a lag of about six weeks by the NSO/MoSPI, subject to later revision
  • B. Final, audited industrial output figures certified by the Comptroller and Auditor General
  • C. Advance projections of industrial output issued by DPIIT ahead of the reference month
  • D. The Reserve Bank of India's quarterly industrial outlook survey results

Q10. Consider the following statistical products: 1. Index of Industrial Production (IIP) 2. Consumer Price Index (CPI) 3. Wholesale Price Index (WPI) 4. National Accounts Statistics (GDP estimates) Which of the above is/are correctly identified as compiled and released by MoSPI/NSO?

  1. Index of Industrial Production (IIP)
  2. Consumer Price Index (CPI)
  3. Wholesale Price Index (WPI)
  4. National Accounts Statistics (GDP estimates)
  • A. 1, 2 and 4
  • B. 1 and 3
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q11. Non-core manufacturing such as pharmaceuticals and electronics, absent from the ICI, is captured within the IIP — which is released under which Union Ministry?

  • A. Ministry of Statistics and Programme Implementation
  • B. Ministry of Commerce and Industry
  • C. Ministry of Finance
  • D. Ministry of Corporate Affairs