UPSC Prelims Practice Questions — Alarm bells

Q1. The Index of Eight Core Industries (ICI) is best described as which one of the following?

  • A. A monthly volume index measuring the combined and individual production of eight core infrastructure sectors, with base year 2011-12=100, released by the Office of the Economic Adviser, DPIIT
  • B. A monthly wholesale price index of eight core commodities, released by the Reserve Bank of India
  • C. A quarterly retail inflation index of eight essential goods, compiled by the National Statistical Office under MoSPI
  • D. An annual capacity-utilisation index of eight priority industries, released by NITI Aayog

Q2. With reference to the weighting of sectors in the Index of Eight Core Industries, consider the following statements: 1. Within the ICI, Petroleum Refinery Products carries a higher weight than Electricity. 2. The eight core industries together account for a little over 40% of the weight of the Index of Industrial Production. 3. Within the ICI, Fertilizers carries a higher weight than Cement. Which of the statements given above is/are correct?

  1. Within the ICI, Petroleum Refinery Products carries a higher weight than Electricity.
  2. The eight core industries together account for a little over 40% of the weight of the Index of Industrial Production.
  3. Within the ICI, Fertilizers carries a higher weight than Cement.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. Consider the following index–compiling-agency pairs: 1. Index of Eight Core Industries — Office of the Economic Adviser, DPIIT 2. Wholesale Price Index — Office of the Economic Adviser, DPIIT 3. Consumer Price Index (Combined) — National Statistical Office, MoSPI 4. Index of Industrial Production — released solely by the Reserve Bank of India Which of the pairs given above is/are correctly matched?

  1. Index of Eight Core Industries — Office of the Economic Adviser, DPIIT
  2. Wholesale Price Index — Office of the Economic Adviser, DPIIT
  3. Consumer Price Index (Combined) — National Statistical Office, MoSPI
  4. Index of Industrial Production — released solely by the Reserve Bank of India
  • A. 1 and 3 only
  • B. 1, 2 and 3 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. The Index of Eight Core Industries is compiled and released by which one of the following as the lead/nodal agency?

  • A. Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry
  • B. National Statistical Office, Ministry of Statistics and Programme Implementation
  • C. Economic Division, Department of Economic Affairs, Ministry of Finance
  • D. Monetary Policy Department, Reserve Bank of India

Q5. With reference to the relationship between the Index of Eight Core Industries (ICI) and the Index of Industrial Production (IIP), which one of the following statements is correct?

  • A. The eight core industries account for about 40.27% of the weight of the IIP, making the ICI a lead indicator of industrial output
  • B. The ICI accounts for the entire weight of the IIP
  • C. The ICI is a sub-index computed within the Consumer Price Index
  • D. The IIP is one of the eight constituent sectors of the ICI

Q6. Consider the following statements comparing the Index of Eight Core Industries (ICI) with the Index of Industrial Production (IIP): 1. The ICI covers only core/infrastructure sectors, whereas the IIP additionally covers a broader set of manufacturing and mining items. 2. Both the ICI and the IIP currently use 2011-12 as their base year. 3. The ICI is released quarterly, whereas the IIP is released monthly. Which of the statements given above is/are correct?

  1. The ICI covers only core/infrastructure sectors, whereas the IIP additionally covers a broader set of manufacturing and mining items.
  2. Both the ICI and the IIP currently use 2011-12 as their base year.
  3. The ICI is released quarterly, whereas the IIP is released monthly.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. The provisional 1.7% combined growth reported for the Index of Eight Core Industries for April 2026 is measured against which base year?

  • A. 2011-12 = 100
  • B. 2022-23 = 100
  • C. 2012-13 = 100
  • D. 2004-05 = 100

Q8. With reference to the sector-wise performance of the Index of Eight Core Industries in April 2026, consider the following pairings: 1. Cement — recorded positive year-on-year growth 2. Steel — recorded positive year-on-year growth 3. Coal — recorded positive year-on-year growth 4. Electricity — recorded positive year-on-year growth Which of the pairings given above is/are NOT correct?

  1. Cement — recorded positive year-on-year growth
  2. Steel — recorded positive year-on-year growth
  3. Coal — recorded positive year-on-year growth
  4. Electricity — recorded positive year-on-year growth
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 only
  • D. 1, 2 and 4

Q9. Consider the following statements regarding India's natural gas position in April 2026 as compared with a year earlier: 1. India's LNG imports fell by nearly 30% year-on-year. 2. India's overall natural gas consumption rose year-on-year. 3. The fall in LNG imports has been linked to high spot LNG prices and West Asia/Strait of Hormuz supply disruptions. Which of the statements given above is/are correct?

  1. India's LNG imports fell by nearly 30% year-on-year.
  2. India's overall natural gas consumption rose year-on-year.
  3. The fall in LNG imports has been linked to high spot LNG prices and West Asia/Strait of Hormuz supply disruptions.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. With reference to India's energy situation in April 2026, consider the following statements: 1. India's LNG imports were about 29.6% lower year-on-year. 2. The rupee had weakened to around ₹95 per US dollar by end-April 2026, from about ₹85 a year earlier. 3. The Strait of Hormuz disruption was cited as a factor affecting LNG supply. 4. India stepped up LNG imports to build strategic reserves during the West Asia crisis. Which of the statements given above are correctly stated?

  1. India's LNG imports were about 29.6% lower year-on-year.
  2. The rupee had weakened to around ₹95 per US dollar by end-April 2026, from about ₹85 a year earlier.
  3. The Strait of Hormuz disruption was cited as a factor affecting LNG supply.
  4. India stepped up LNG imports to build strategic reserves during the West Asia crisis.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q11. Among the following economic indicators, which one is compiled by the same office (Office of the Economic Adviser, DPIIT) that releases the Index of Eight Core Industries?

  • A. Wholesale Price Index (WPI)
  • B. Consumer Price Index (CPI)
  • C. Index of Industrial Production (IIP)
  • D. Consumer Food Price Index (CFPI)

Q12. With reference to core-sector output in April 2026, consider the following statements: 1. Crude oil output recorded a year-on-year contraction. 2. Natural gas output recorded a year-on-year contraction. 3. Refinery Products recorded the strongest positive growth among all eight core sectors. 4. Fertilizers output recorded a year-on-year contraction. Which of the statements given above are correctly stated?

  1. Crude oil output recorded a year-on-year contraction.
  2. Natural gas output recorded a year-on-year contraction.
  3. Refinery Products recorded the strongest positive growth among all eight core sectors.
  4. Fertilizers output recorded a year-on-year contraction.
  • A. 1, 2 and 4 only
  • B. 1, 3 and 4 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4