UPSC Prelims Practice Questions — INDIA’S REAL GDP ESTIMATED TO GROW BY 7.4% IN FY 2025–26, WITH NOMINAL GDP GROWTH AT 8%

Q1. The First Advance Estimates of GDP for 2025-26, which placed India's real GDP growth at 7.4%, were released by the National Statistical Office. This office functions under which one of the following Ministries?

  • A. Ministry of Finance
  • B. Ministry of Statistics and Programme Implementation
  • C. Ministry of Commerce and Industry
  • D. Ministry of Corporate Affairs

Q2. As per the First Advance Estimates for FY 2025-26, which one of the following recorded the highest growth rate?

  • A. Real GDP (7.4%)
  • B. Nominal GDP (8.0%)
  • C. Real GVA (7.3%)
  • D. Real Private Final Consumption Expenditure (7.0%)

Q3. The compilation and release of the First Advance Estimates of sectoral Gross Value Added is operationalised by which one of the following bodies?

  • A. National Statistical Office (NSO)
  • B. National Sample Survey Office as an independent organisation
  • C. Central Statistics Office as an independent organisation
  • D. Central Statistical Commission

Q4. In the First Advance Estimates the sectoral growth rates are measured through Gross Value Added (GVA). GVA at basic prices is related to GDP at market prices in which one of the following ways?

  • A. GDP = GVA + product taxes − product subsidies
  • B. GDP = GVA − product taxes + product subsidies
  • C. GDP = GVA + net factor income from abroad
  • D. GDP = GVA + consumption of fixed capital

Q5. With reference to the demand-side indicators in the First Advance Estimates for FY 2025-26, consider the following statements: 1. Real Private Final Consumption Expenditure (PFCE) grew by 7.0%, and its share in GDP rose to 61.5%, the highest since FY 2011-12. 2. Real Gross Fixed Capital Formation (GFCF) grew by 7.8%. 3. The share of PFCE in GDP at 61.5% is lower than the share it had in FY 2011-12. Which of the statements given above is/are correct?

  1. Real Private Final Consumption Expenditure (PFCE) grew by 7.0%, and its share in GDP rose to 61.5%, the highest since FY 2011-12.
  2. Real Gross Fixed Capital Formation (GFCF) grew by 7.8%.
  3. The share of PFCE in GDP at 61.5% is lower than the share it had in FY 2011-12.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. With reference to the estimation of GDP by the expenditure method as used in the First Advance Estimates, which of the following are correctly identified as expenditure-side components of GDP? 1. Private Final Consumption Expenditure (PFCE) 2. Gross Fixed Capital Formation (GFCF) 3. Government Final Consumption Expenditure (GFCE) 4. Gross Value Added (GVA) Which of the above is/are correctly identified?

  1. Private Final Consumption Expenditure (PFCE)
  2. Gross Fixed Capital Formation (GFCF)
  3. Government Final Consumption Expenditure (GFCE)
  4. Gross Value Added (GVA)
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q7. Which one of the following best describes the 'First Advance Estimates' of GDP released by the NSO?

  • A. The first estimates of national income for the current financial year, released in early January using limited data, mainly to aid Union Budget preparation
  • B. The final revised estimates of GDP released three years after the reference year
  • C. The provisional estimates of GDP released at the end of May after the financial year closes
  • D. The estimates of GDP for only the October–December quarter of the current year

Q8. With reference to the National Statistical Office (NSO) and India's GDP estimates, consider the following statements: 1. The NSO was constituted by merging the Central Statistics Office and the National Sample Survey Office. 2. The GDP series used for the First Advance Estimates 2025-26 has 2011-12 as its base year. 3. The First Advance Estimates are released annually in early January. 4. The 2011-12 base year was adopted in 2020, replacing the earlier 2004-05 base year. Which of the statements given above is/are NOT correct?

  1. The NSO was constituted by merging the Central Statistics Office and the National Sample Survey Office.
  2. The GDP series used for the First Advance Estimates 2025-26 has 2011-12 as its base year.
  3. The First Advance Estimates are released annually in early January.
  4. The 2011-12 base year was adopted in 2020, replacing the earlier 2004-05 base year.
  • A. 1 and 4 only
  • B. 4 only
  • C. 2 and 3 only
  • D. 1, 2 and 4

Q9. In the First Advance Estimates for FY 2025-26, nominal GDP grows 8.0% while real GDP grows 7.4%. The wedge between the nominal and real growth rates is captured by which one of the following?

  • A. The GDP deflator, an economy-wide measure of price change
  • B. The Wholesale Price Index inflation rate
  • C. The Consumer Price Index (Combined) inflation rate
  • D. The terms-of-trade adjustment

Q10. The fiscal policy statements mandated under the FRBM Act, 2003 and the fiscal consolidation glide path presented with the Union Budget are prepared by which one of the following?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Department of Expenditure, Ministry of Finance
  • C. Department of Revenue, Ministry of Finance
  • D. Comptroller and Auditor General of India

Q11. The fiscal consolidation roadmap for 2026-27 to 2030-31 presented with the Union Budget outlines its debt-to-GDP trajectory under how many alternative annual nominal GDP growth scenarios?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q12. Consider the following statements regarding India's growth standing around the First Advance Estimates for FY 2025-26: 1. The First Advance Estimates reaffirmed India as the fastest-growing major economy for the fourth consecutive year. 2. As per the IMF, India is projected to grow faster than China in 2026. 3. The IMF's growth projection for India exceeds the First Advance Estimates' real GDP growth estimate of 7.4%. Which of the statements given above is/are correct?

  1. The First Advance Estimates reaffirmed India as the fastest-growing major economy for the fourth consecutive year.
  2. As per the IMF, India is projected to grow faster than China in 2026.
  3. The IMF's growth projection for India exceeds the First Advance Estimates' real GDP growth estimate of 7.4%.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3