UPSC Prelims Practice Questions — GJC calls for balancing economic patriotism with cultural heritage
Q1. Consider the following statements regarding recent developments in India's balance of payments:
1. The merchandise trade deficit in Q4 of 2025-26 was lower than that recorded in Q4 of 2024-25.
2. The current account deficit narrowed to 0.2 per cent of GDP in Q1 of 2025-26 from 0.9 per cent of GDP a year earlier.
3. India recorded a current account surplus of 0.7 per cent of GDP in Q4 of 2025-26, as against a surplus of 1.4 per cent of GDP in Q4 of 2024-25.
Which of the statements given above is/are correct?
- The merchandise trade deficit in Q4 of 2025-26 was lower than that recorded in Q4 of 2024-25.
- The current account deficit narrowed to 0.2 per cent of GDP in Q1 of 2025-26 from 0.9 per cent of GDP a year earlier.
- India recorded a current account surplus of 0.7 per cent of GDP in Q4 of 2025-26, as against a surplus of 1.4 per cent of GDP in Q4 of 2024-25.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q2. Direct import of gold into India through the India International Bullion Exchange at GIFT City is open to 'Qualified Jewellers', who are notified for this purpose by which one of the following authorities?
- A. The Directorate General of Foreign Trade under the Ministry of Commerce and Industry, which designates nominated agencies for bullion import
- B. The Securities and Exchange Board of India, acting in consultation with the recognised commodity derivatives exchanges
- C. The International Financial Services Centres Authority
- D. The Reserve Bank of India, through its standing list of nominated banks authorised to import gold
Q3. The Ad-hoc National Committee formed for the constitution of the Domestic Council for the gems and jewellery sector drew representatives from several industry associations. Consider the following association-headquarters pairs:
1. Uttar Pradesh Sarafa Association, Lucknow
2. India Bullion and Jewellers Association, Mumbai
3. Bangiya Swarna Shilpi Samiti, Cuttack
4. Association of Gold Refineries & Mints, Kochi
Which of the above is/are correctly identified?
- Uttar Pradesh Sarafa Association, Lucknow
- India Bullion and Jewellers Association, Mumbai
- Bangiya Swarna Shilpi Samiti, Cuttack
- Association of Gold Refineries & Mints, Kochi
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 3 only
Q4. Which one of the following best describes the character of the All India Gem & Jewellery Domestic Council (GJC)?
- A. A statutory body constituted under the Bureau of Indian Standards Act to certify the purity of gold jewellery sold in the domestic market
- B. A national trade federation of the domestic gems and jewellery trade, drawing its membership from retailers, manufacturers and wholesalers
- C. An export promotion council under the Ministry of Commerce and Industry issuing registration-cum-membership certificates to domestic exporters
- D. A self-regulatory organisation notified by the IFSCA to admit domestic jewellers as trading members of the bullion exchange at GIFT City
Q5. Under the Sovereign Gold Bond Scheme, which one of the following investor categories is permitted the largest subscription in a fiscal year?
- A. Individual investors, subject to a ceiling of 4 kg of gold in a fiscal year
- B. Hindu Undivided Families, subject to a ceiling of 4 kg of gold in a fiscal year
- C. Non-resident Indians, who are subscribers without any ceiling on quantity
- D. Trusts and similar entities, subject to a ceiling of 20 kg of gold in a fiscal year
Q6. Consider the following statements about the Gold Monetisation Scheme and Sovereign Gold Bonds:
1. Sovereign Gold Bonds have a tenor of eight years, with an option of premature redemption after the fifth year exercisable on coupon payment dates.
2. On the discontinuation of the medium term and long term components of the Gold Monetisation Scheme, deposits already made under them were compulsorily redeemed on the date of discontinuation.
3. The medium term and long term government deposit components of the Gold Monetisation Scheme stand discontinued with effect from 26 March 2025, while short term bank deposits may continue at the discretion of individual banks.
Which of the statements given above is/are correct?
- Sovereign Gold Bonds have a tenor of eight years, with an option of premature redemption after the fifth year exercisable on coupon payment dates.
- On the discontinuation of the medium term and long term components of the Gold Monetisation Scheme, deposits already made under them were compulsorily redeemed on the date of discontinuation.
- The medium term and long term government deposit components of the Gold Monetisation Scheme stand discontinued with effect from 26 March 2025, while short term bank deposits may continue at the discretion of individual banks.
- A. 1 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q7. The phased orders making hallmarking of gold jewellery and gold artefacts compulsory in notified districts are operationalised by which one of the following?
- A. The Gem and Jewellery Export Promotion Council, which alone certifies the purity of all gold sold in India
- B. The Directorate of Legal Metrology, the sole authority for every form of quality certification of precious metals
- C. The Bureau of Indian Standards
- D. The Security Printing and Minting Corporation of India Limited under the Ministry of Finance
Q8. Consider the following statements about the phased roll-out of hallmarking in India:
1. With the coming into force of the fourth phase of mandatory hallmarking on 5 November 2024, the number of districts covered rose to 361.
2. The sixth phase, in force from 2 March 2026, added seven districts and took the total coverage to 380 districts.
3. Hallmarking of silver jewellery and silver artefacts was made mandatory along with gold from 1 September 2025.
Which of the statements given above is/are correct?
- With the coming into force of the fourth phase of mandatory hallmarking on 5 November 2024, the number of districts covered rose to 361.
- The sixth phase, in force from 2 March 2026, added seven districts and took the total coverage to 380 districts.
- Hallmarking of silver jewellery and silver artefacts was made mandatory along with gold from 1 September 2025.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q9. Which one of the following was enunciated as the first of the five pillars of the Atmanirbhar Bharat Abhiyan announced in May 2020?
- A. Infrastructure
- B. Economy
- C. Vibrant Demography
- D. Demand
Q10. Consider the following statements about the self-reliance and buy-local appeals in India:
1. The Atmanirbhar Bharat package announced in May 2020 was stated to be of the order of Rs 20 lakh crore, equivalent to about 10 per cent of India's gross domestic product.
2. The five pillars on which Atmanirbhar Bharat was said to stand are Economy, Infrastructure, System, Vibrant Demography and Domestic Manufacturing.
3. The economic patriotism appeal of 2026 extended the buy-local message from products to household consumption choices, urging citizens to curtail foreign trips and foreign-style weddings and to buy gold only where necessary.
Which of the statements given above is/are correct?
- The Atmanirbhar Bharat package announced in May 2020 was stated to be of the order of Rs 20 lakh crore, equivalent to about 10 per cent of India's gross domestic product.
- The five pillars on which Atmanirbhar Bharat was said to stand are Economy, Infrastructure, System, Vibrant Demography and Domestic Manufacturing.
- The economic patriotism appeal of 2026 extended the buy-local message from products to household consumption choices, urging citizens to curtail foreign trips and foreign-style weddings and to buy gold only where necessary.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q11. With reference to India's gems and jewellery sector, consider the following:
1. Surat in Gujarat, which hosts more than 450 organised jewellery manufacturers, importers and exporters
2. Mumbai, which accounts for about 72 per cent of the sector's annual exports
3. A contribution of about 7 per cent to India's gross domestic product
4. Status as the only sector declared by the Government as a focus area for export promotion, all other sectors having been excluded from such focus
Which of the above is/are correctly identified?
- Surat in Gujarat, which hosts more than 450 organised jewellery manufacturers, importers and exporters
- Mumbai, which accounts for about 72 per cent of the sector's annual exports
- A contribution of about 7 per cent to India's gross domestic product
- Status as the only sector declared by the Government as a focus area for export promotion, all other sectors having been excluded from such focus
- A. 1 and 3 only
- B. 2 and 4
- C. 1, 2 and 3
- D. 1, 2, 3 and 4
Q12. Gold jewellery received by a Hindu woman as stridhana at the time of her marriage is declared to be held by her as full owner and not as a limited owner under which one of the following provisions?
- A. Section 14 of the Hindu Succession Act, 1956
- B. Section 27 of the Hindu Marriage Act, 1955, which empowers courts to make orders regarding property presented jointly to the spouses
- C. Section 6 of the Dowry Prohibition Act, 1961, which requires dowry received to be transferred for the benefit of the wife
- D. Section 6 of the Hindu Succession Act, 1956, which governs devolution of interest in coparcenary property