UPSC Prelims Practice Questions — India’s GDP Performance

Question 1

India's official estimates of national income and product are compiled principally in accordance with the guidelines of which one of the following international frameworks?

Accepted Answer

The System of National Accounts brought out under United Nations auspices

Answer

The Balance of Payments and International Investment Position Manual of the IMF

Answer

The Frascati Manual on research and development statistics of the OECD

Answer

The International Comparison Programme framework coordinated by the World Bank

Question 2

With reference to the sequence in which the National Statistics Office releases estimates of India's Gross Domestic Product, consider the following:
1. The First Advance Estimates of GDP for FY 2025-26 were released in January 2026.
2. The Second Advance Estimates of annual GDP for a financial year are released in February, together with the quarterly estimates for the third quarter (October-December) of that year.
3. The Provisional Estimates of annual GDP for FY 2025-26 were released in June 2026 along with the quarterly estimates for January-March 2026.
4. Advance Estimates are compiled by the Benchmark-Indicator method, whereas Provisional Estimates are compiled entirely from the final audited accounts of enterprises and government bodies.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 4 only

Answer

2, 3 and 4

Answer

3 and 4 only

Question 3

In India's national accounts, Gross Domestic Product at market prices is arrived at from Gross Value Added at basic prices by which one of the following operations?

Accepted Answer

Adding all taxes on products and deducting all subsidies on products

Answer

Adding all taxes on production and deducting all subsidies on production

Answer

Deducting consumption of fixed capital and adding net factor income from abroad

Answer

Adding all indirect taxes and deducting consumption of fixed capital

Question 4

Consider the following items used in India's national accounts:
1. Goods and Services Tax, classified as a tax on products.
2. Land revenue, classified as a tax on production.
3. Subsidies to Railways, classified as a subsidy on products.
4. Import and export duties, classified as taxes on products.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 4

Answer

2 and 3 only

Answer

1, 3 and 4

Answer

1 and 2 only

Question 5

Consider the following statements about base year revisions in India's National Accounts Statistics:
1. The shift of the base year from 2004-05 to 2011-12 was released on 30 January 2015, after sources and methods were aligned with SNA 2008.
2. In the 2011-12 series, GVA and related aggregates came to be valued at basic prices, and GDP at market prices replaced GDP at factor cost as the headline aggregate.
3. A base year revision is confined exclusively to shifting the reference year for measuring real growth, and never involves any change in the conceptual framework or the introduction of a new data source.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 6

The adoption of new data sources and methodological changes for a base year revision of India's National Accounts is deliberated and cleared in the meetings of which one of the following bodies?

Accepted Answer

The Advisory Committee on National Accounts Statistics

Answer

The Technical Advisory Committee on Statistics of Prices and Cost of Living

Answer

The Standing Committee on Economic Statistics

Answer

The National Statistical Commission

Question 7

Consider the following statements regarding the Provisional Estimates of GDP for FY 2025-26 released by the National Statistics Office:
1. Real GDP growth for FY 2025-26 is placed at 7.7 per cent, against 7.1 per cent for FY 2024-25.
2. Real GVA growth for FY 2025-26, at 7.9 per cent, exceeded real GDP growth for the same year.
3. Because GVA is valued at basic prices while GDP is valued at market prices, real GVA growth necessarily exceeds real GDP growth in every year of the series.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 8

In which one of the following quarters of FY 2025-26 did India's real GDP register its highest year-on-year growth rate?

Accepted Answer

July-September

Answer

April-June

Answer

October-December

Answer

January-March

Question 9

The Monetary Policy Committee, whose bi-monthly resolutions carry the Reserve Bank of India's projections of real GDP growth, is constituted under which one of the following provisions of the Reserve Bank of India Act, 1934?

Accepted Answer

Section 45ZB

Answer

Section 45ZI

Answer

Section 45ZL

Answer

Section 45ZN

Question 10

Of the total membership of the Monetary Policy Committee, how many members are appointed by the Central Government on the recommendations of a Search-cum-Selection Committee?

Accepted Answer

Three

Answer

Two

Answer

Four

Answer

Five

Question 11

The National Industrial Classification (NIC)-2025, adopted for classifying economic activities in the new GDP series with base year 2022-23, is brought out by which one of the following?

Accepted Answer

The Ministry of Statistics and Programme Implementation

Answer

The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

Answer

The Office of the Economic Adviser, Ministry of Commerce and Industry

Answer

The Ministry of Corporate Affairs

Question 12

Consider the following statements about international assessments of India's growth published in 2026:
1. The International Monetary Fund's July 2026 World Economic Outlook Update projected India's real GDP growth for 2026 at 6.4 per cent.
2. The World Bank's April 2026 update projected India's growth for FY27 at 6.6 per cent while holding that India remains among the fastest-growing major economies in the world.
3. The same World Bank update projected that South Asia as a region would grow more slowly in 2026 than other emerging markets and developing economies.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 and 3 only

Answer

2 and 3 only

Answer

1, 2 and 3

UPSC Prelims Practice Questions — India’s GDP Performance

Q1. India's official estimates of national income and product are compiled principally in accordance with the guidelines of which one of the following international frameworks?

Q3. In India's national accounts, Gross Domestic Product at market prices is arrived at from Gross Value Added at basic prices by which one of the following operations?

Q6. The adoption of new data sources and methodological changes for a base year revision of India's National Accounts is deliberated and cleared in the meetings of which one of the following bodies?

Q8. In which one of the following quarters of FY 2025-26 did India's real GDP register its highest year-on-year growth rate?

Q9. The Monetary Policy Committee, whose bi-monthly resolutions carry the Reserve Bank of India's projections of real GDP growth, is constituted under which one of the following provisions of the Reserve Bank of India Act, 1934?

Q10. Of the total membership of the Monetary Policy Committee, how many members are appointed by the Central Government on the recommendations of a Search-cum-Selection Committee?

Q11. The National Industrial Classification (NIC)-2025, adopted for classifying economic activities in the new GDP series with base year 2022-23, is brought out by which one of the following?