UPSC Prelims Practice Questions — ‘W. Asia crisis, weak monsoon risks to growth’

Q1. The FY27 real GDP growth projection of 6.6% and the raised CPI inflation forecast of 5.1%, cited in mid-2026 as being clouded by the West Asia crisis and a weak monsoon, were released as part of the bi-monthly review of which of the following bodies?

  • A. The Monetary Policy Committee of the Reserve Bank of India
  • B. The National Statistical Office under the Ministry of Statistics and Programme Implementation
  • C. NITI Aayog's Economic Advisory arm
  • D. The Department of Economic Affairs, Ministry of Finance

Q2. The Reserve Bank's downward revision of its FY27 real GDP growth projection to 6.6% (from an earlier 6.9%), alongside an upward inflation revision to 5.1%, was announced in which policy review?

  • A. The June 2026 monetary policy review
  • B. The October 2025 monetary policy review
  • C. The February 2026 monetary policy review
  • D. The April 2026 monetary policy review

Q3. With reference to the composition of India's Monetary Policy Committee (MPC), consider the following: 1. The Governor of the Reserve Bank of India is its ex officio Chairperson. 2. It is a six-member committee. 3. All three external members of the MPC are nominated by the Central Board of the Reserve Bank of India. 4. The Deputy Governor of the RBI in charge of monetary policy is an ex officio member. Which of the above is/are correctly identified?

  1. The Governor of the Reserve Bank of India is its ex officio Chairperson.
  2. It is a six-member committee.
  3. All three external members of the MPC are nominated by the Central Board of the Reserve Bank of India.
  4. The Deputy Governor of the RBI in charge of monetary policy is an ex officio member.
  • A. 1, 2 and 4
  • B. 1, 3 and 4
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q4. Under which provision of the Reserve Bank of India Act, 1934 is the Monetary Policy Committee constituted?

  • A. Section 45ZB
  • B. Section 45ZA
  • C. Section 45ZL
  • D. Section 45IB

Q5. With reference to India's Strategic Petroleum Reserve (SPR) facilities, consider the following facility–location pairings: 1. Visakhapatnam SPR — Andhra Pradesh 2. Mangaluru SPR — Karnataka 3. Padur SPR — Karnataka 4. Chandikhol (proposed SPR) — Tamil Nadu Which of the above is/are correctly identified?

  1. Visakhapatnam SPR — Andhra Pradesh
  2. Mangaluru SPR — Karnataka
  3. Padur SPR — Karnataka
  4. Chandikhol (proposed SPR) — Tamil Nadu
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q6. The building and management of India's Strategic Petroleum Reserves is entrusted to Indian Strategic Petroleum Reserves Limited (ISPRL), which functions under which of the following?

  • A. Ministry of Petroleum and Natural Gas
  • B. Ministry of Commerce and Industry
  • C. Ministry of Earth Sciences
  • D. Ministry of Power

Q7. The operational Long Range Forecast (LRF) for the southwest monsoon seasonal rainfall over India, issued in stages before and during the season, is put out by which of the following?

  • A. India Meteorological Department, under the Ministry of Earth Sciences
  • B. National Centre for Medium Range Weather Forecasting, under the Ministry of Agriculture
  • C. Indian National Centre for Ocean Information Services, under the Ministry of Jal Shakti
  • D. Central Water Commission, under the Ministry of Earth Sciences

Q8. With reference to the IMD's 2026 southwest monsoon forecast compared with recent years, consider the following statements: 1. The 2026 seasonal rainfall is forecast at 90% of the Long Period Average, categorised as 'below normal'. 2. It marks India's first below-normal monsoon in three years. 3. The below-normal 2026 rains are attributed to a positive Indian Ocean Dipole, with El Nino conditions expected to stay neutral. Which of the statements given above is/are correct?

  1. The 2026 seasonal rainfall is forecast at 90% of the Long Period Average, categorised as 'below normal'.
  2. It marks India's first below-normal monsoon in three years.
  3. The below-normal 2026 rains are attributed to a positive Indian Ocean Dipole, with El Nino conditions expected to stay neutral.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. Before pausing through its 2026 reviews, how many basis points of cumulative repo-rate easing had the RBI delivered between February and December 2025?

  • A. 125 basis points
  • B. 75 basis points
  • C. 150 basis points
  • D. 100 basis points

Q10. With reference to the RBI Monetary Policy Committee's June 2026 decision relative to its earlier actions, consider the following statements: 1. It kept the policy repo rate unchanged at 5.25%, the third consecutive hold. 2. It retained a 'neutral' monetary policy stance. 3. The repo-rate decision was taken by a split (majority) vote of the committee. Which of the statements given above is/are correct?

  1. It kept the policy repo rate unchanged at 5.25%, the third consecutive hold.
  2. It retained a 'neutral' monetary policy stance.
  3. The repo-rate decision was taken by a split (majority) vote of the committee.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q11. With inflows of about USD 135 billion in FY25 — a key buffer for India's external sector against oil-price and geopolitical shocks — India ranked as the world's largest recipient of which of the following?

  • A. Remittances
  • B. Foreign direct investment
  • C. Foreign portfolio investment
  • D. Official development assistance

Q12. With reference to RBI Governor Sanjay Malhotra's July 2026 Doordarshan interview, consider the following statements: 1. He identified the West Asia crisis and a weak monsoon as key risks to India's growth. 2. He reaffirmed that the economy is expected to grow about 6.6% in the current financial year. 3. He asserted that recent price pressures were driven entirely by demand-side factors. Which of the statements given above is/are correct?

  1. He identified the West Asia crisis and a weak monsoon as key risks to India's growth.
  2. He reaffirmed that the economy is expected to grow about 6.6% in the current financial year.
  3. He asserted that recent price pressures were driven entirely by demand-side factors.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3