UPSC Prelims Practice Questions — What India’s growth really means

Q1. With reference to the reconciliation of Gross Value Added (GVA) and Gross Domestic Product (GDP) in India's national accounts, consider the following statements: 1. GDP at market prices is obtained by adding product taxes to, and subtracting product subsidies from, GVA at basic prices. 2. Goods and Services Tax and import duties are treated as product taxes in the national accounts. 3. Every subsidy disbursed by the government, including all subsidies on production, is deducted from GVA to arrive at GDP. 4. Food, petroleum and fertiliser subsidies are examples of product subsidies. Which of the statements given above is/are correct?

  1. GDP at market prices is obtained by adding product taxes to, and subtracting product subsidies from, GVA at basic prices.
  2. Goods and Services Tax and import duties are treated as product taxes in the national accounts.
  3. Every subsidy disbursed by the government, including all subsidies on production, is deducted from GVA to arrive at GDP.
  4. Food, petroleum and fertiliser subsidies are examples of product subsidies.
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 1, 3 and 4
  • D. 1, 2 and 4

Q2. Consider the following statements regarding GVA and GDP in India: 1. GVA at basic prices excludes taxes on products but includes taxes on production such as land revenue and stamp duties. 2. Real GVA is measured at basic prices while real GDP is measured at market prices. 3. In the first quarter of 2026-27, real GVA grew faster than real GDP — 8.2 per cent against 7.8 per cent. 4. Real GVA growing faster than real GDP in a quarter implies that net product taxes grew faster than GVA in that quarter. Which of the statements given above is/are NOT correct?

  1. GVA at basic prices excludes taxes on products but includes taxes on production such as land revenue and stamp duties.
  2. Real GVA is measured at basic prices while real GDP is measured at market prices.
  3. In the first quarter of 2026-27, real GVA grew faster than real GDP — 8.2 per cent against 7.8 per cent.
  4. Real GVA growing faster than real GDP in a quarter implies that net product taxes grew faster than GVA in that quarter.
  • A. 4 only
  • B. 1 and 2
  • C. 3 only
  • D. 2 and 4

Q3. Consider the following statements about national accounts releases in India during 2026: 1. The First Advance Estimates of GDP for 2025-26 were released in January 2026. 2. The new series of national accounts with base year 2022-23 was released in February 2026. 3. The Provisional Estimates of annual GDP for 2025-26 were released together with the quarterly estimates for January–March 2026. 4. Quarterly GDP estimates for India are compiled and released by the Department of Statistics and Information Management of the Reserve Bank of India. Which of the above is/are correctly identified?

  1. The First Advance Estimates of GDP for 2025-26 were released in January 2026.
  2. The new series of national accounts with base year 2022-23 was released in February 2026.
  3. The Provisional Estimates of annual GDP for 2025-26 were released together with the quarterly estimates for January–March 2026.
  4. Quarterly GDP estimates for India are compiled and released by the Department of Statistics and Information Management of the Reserve Bank of India.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2 and 3

Q4. In India's national accounts calendar, the 'Provisional Estimates of annual Gross Domestic Product' denote which one of the following?

  • A. The earliest estimate of a financial year's GDP, put out about nine months into that year alongside the third-quarter estimates
  • B. A revised estimate prepared after detailed annual accounts become available, put out roughly a year after the earlier estimate
  • C. The estimate of a full financial year's GDP put out soon after its close, alongside the fourth-quarter estimates
  • D. A forward projection of the coming financial year's GDP prepared at base-year constant prices for the Union Budget

Q5. The quarterly national accounts estimates for April–June 2026, showing 7.8 per cent real growth, were compiled and put out by which one of the following?

  • A. Economic Division of the Department of Economic Affairs, Ministry of Finance
  • B. National Sample Survey Office of the Ministry of Statistics and Programme Implementation
  • C. National Statistical Office of the Ministry of Statistics and Programme Implementation
  • D. Department of Statistics and Information Management of the Reserve Bank of India

Q6. The estimate of 7.8 per cent real growth for April–June 2026 was computed on the national accounts series whose base year MoSPI adopted in February 2026. That base year is:

  • A. 2022-23
  • B. 2011-12
  • C. 2012-13
  • D. 2023-24

Q7. Consider the following statements comparing recent Indian growth outturns: 1. Real GDP growth in 2025-26, at 7.7 per cent, was higher than the 7.1 per cent recorded in 2024-25. 2. Real GDP growth of 7.8 per cent in the first quarter of 2026-27 was higher than the 6.9 per cent recorded in the corresponding quarter of 2025-26. 3. Gross Fixed Capital Formation grew 11.9 per cent in the first quarter of 2026-27, down from 5.8 per cent in the corresponding quarter of 2025-26. Which of the statements given above is/are correct?

  1. Real GDP growth in 2025-26, at 7.7 per cent, was higher than the 7.1 per cent recorded in 2024-25.
  2. Real GDP growth of 7.8 per cent in the first quarter of 2026-27 was higher than the 6.9 per cent recorded in the corresponding quarter of 2025-26.
  3. Gross Fixed Capital Formation grew 11.9 per cent in the first quarter of 2026-27, down from 5.8 per cent in the corresponding quarter of 2025-26.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. What was the level of India's real (constant-price) Gross Domestic Product in the quarter April–June 2026?

  • A. ₹75.46 lakh crore
  • B. ₹73.82 lakh crore
  • C. ₹81.36 lakh crore
  • D. ₹88.27 lakh crore

Q9. In the broad sectoral classification used in India's national accounts, the 'secondary sector' is made up of which one of the following groups?

  • A. Manufacturing; mining and quarrying; and construction activity
  • B. Mining and quarrying; electricity, gas, water supply and other utility services; and construction
  • C. Manufacturing; construction; and trade, hotels, transport and communication
  • D. Manufacturing; electricity, gas, water supply and other utility services; and construction

Q10. On the expenditure side of national accounts, Gross Fixed Capital Formation — which rose 11.9 per cent in April–June 2026 — measures which one of the following?

  • A. Producers' additions to fixed assets together with the change in inventories and net acquisition of valuables
  • B. Producers' additions to fixed assets, net of disposals, leaving out inventories and valuables
  • C. Total capital expenditure budgeted by the Centre, the States and public sector enterprises in a year
  • D. Household financial savings plus corporate retained earnings available for investment in a year

Q11. With reference to the Economic Advisory Council to the Prime Minister (EAC-PM), consider the following persons: 1. Sanjeev Sanyal 2. Shamika Ravi 3. Sanjay Kumar Mishra 4. Gourav Vallabh Which of the above is/are correctly identified as FULL-TIME members of the Council?

  1. Sanjeev Sanyal
  2. Shamika Ravi
  3. Sanjay Kumar Mishra
  4. Gourav Vallabh
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q12. The advance and provisional estimates of annual GDP — the vintages through which the 2025-26 growth figure moved from 7.4 per cent to 7.7 per cent — are compiled by which one of the following wings?

  • A. Economic Division of the Department of Economic Affairs, Ministry of Finance
  • B. Development Monitoring and Evaluation Office of NITI Aayog
  • C. National Accounts Division of the National Statistical Office, MoSPI
  • D. Field Operations Division of the National Sample Survey Office, MoSPI