UPSC Prelims Practice Questions — Govt. pegs real GDP growth at 7.4% amid concerns over tariffs

Q1. In the context of India's national accounts, which one of the following best describes the 'First Advance Estimate' (FAE) of Gross Domestic Product released by the National Statistical Office?

  • A. An indicator-based estimate compiled using the benchmark-indicator extrapolation method, released around 7 January each year, that serves as the statistical base for the ensuing Union Budget
  • B. A final revised estimate of GDP released two years after the reference financial year, after assimilation of all detailed annual data sources
  • C. A provisional estimate of full-year GDP released on 31 May, immediately after the close of the financial year
  • D. A quarterly estimate of GDP released roughly eight weeks after the end of every quarter, used by the Reserve Bank for monetary policy review

Q2. With reference to the estimates of GDP for the financial year 2025-26, consider the following statements: 1. The First Advance Estimate released under the old base-year (2011-12) series pegged real GDP growth at 7.4%, while the new series with base year 2022-23 subsequently revised it upward to 7.6%. 2. The new series of GDP estimates released in February 2026 changed the base year of the national accounts from 2011-12 to 2022-23. 3. Under the new series with base year 2022-23, nominal GDP growth for FY 2025-26 was estimated at 8.0%. Which of the statements given above is/are correct?

  1. The First Advance Estimate released under the old base-year (2011-12) series pegged real GDP growth at 7.4%, while the new series with base year 2022-23 subsequently revised it upward to 7.6%.
  2. The new series of GDP estimates released in February 2026 changed the base year of the national accounts from 2011-12 to 2022-23.
  3. Under the new series with base year 2022-23, nominal GDP growth for FY 2025-26 was estimated at 8.0%.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. The First Advance Estimates of Gross Domestic Product, which form the statistical base for the Union Budget, are released by which one of the following?

  • A. National Statistical Office (NSO), Ministry of Statistics and Programme Implementation
  • B. Central Statistics Institute under NITI Aayog
  • C. Economic Division, Department of Economic Affairs, Ministry of Finance
  • D. Department of Statistics and Information Management, Reserve Bank of India

Q4. With reference to the First Advance Estimates of GDP for FY 2025-26 released by the National Statistical Office, consider the following sector and estimated real growth-rate pairings: 1. Agriculture & allied sector — 3.1% 2. Manufacturing & construction (secondary sector) — 7.0% 3. Financial, real estate & professional services together with public administration, defence & other services — 9.9% 4. Overall Real Gross Value Added (GVA) — 8.0% Which of the above is/are correctly identified?

  1. Agriculture & allied sector — 3.1%
  2. Manufacturing & construction (secondary sector) — 7.0%
  3. Financial, real estate & professional services together with public administration, defence & other services — 9.9%
  4. Overall Real Gross Value Added (GVA) — 8.0%
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 3 only

Q5. By how many percentage points did the First Advance Estimate of real GDP growth for FY 2025-26 (under the 2011-12 base-year series) differ from the corresponding estimate under the new GDP series with base year 2022-23 released in February 2026?

  • A. 0.1 percentage point
  • B. 0.2 percentage point
  • C. 0.6 percentage point
  • D. 1.1 percentage point
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