UPSC Prelims Practice Questions — Understanding Q1 2026-27 GDP Estimates

Q1. Consider the following statements regarding the first-quarter (April-June) growth outturn of 2026-27 and the Monetary Policy Committee's projections for that year: 1. Real GDP growth in the quarter, at 7.8%, exceeded the Monetary Policy Committee's projection of 7.0% for the same quarter. 2. In its August 2026 resolution the Monetary Policy Committee placed real GDP growth for the full year 2026-27 at 6.7%. 3. Real GDP growth of 7.8% in the quarter was unchanged from the rate recorded in the corresponding quarter of 2025-26. 4. The Monetary Policy Committee projected every quarter of 2026-27 to grow at above 7 per cent. Which of the statements given above is/are NOT correct?

  1. Real GDP growth in the quarter, at 7.8%, exceeded the Monetary Policy Committee's projection of 7.0% for the same quarter.
  2. In its August 2026 resolution the Monetary Policy Committee placed real GDP growth for the full year 2026-27 at 6.7%.
  3. Real GDP growth of 7.8% in the quarter was unchanged from the rate recorded in the corresponding quarter of 2025-26.
  4. The Monetary Policy Committee projected every quarter of 2026-27 to grow at above 7 per cent.
  • A. 1 and 2
  • B. 3 only
  • C. 3 and 4
  • D. 1, 2 and 4

Q2. The 7.0 per cent quarterly real GDP growth projection that the April-June 2026 outturn overshot was issued by the Monetary Policy Committee, a body constituted under which one of the following?

  • A. The Reserve Bank of India Act, 1934, as amended by the Finance Act, 2016
  • B. The Banking Regulation Act, 1949, as amended by the Finance Act, 2017
  • C. The Fiscal Responsibility and Budget Management Act, 2003, read with its 2018 amendment
  • D. The Collection of Statistics Act, 2008, read with the Rules framed thereunder

Q3. Which one of the following statements about the authority that compiles India's quarterly national accounts, including the April-June 2026 estimates released on 31 August 2026, is correct?

  • A. They are compiled by the National Accounts Division of the Ministry of Statistics and Programme Implementation, and released at both constant and current prices
  • B. They are compiled by the Department of Economic Affairs of the Ministry of Finance, and released only along with the annual Union Budget documents
  • C. They are compiled by the Department of Economic and Policy Research of the Reserve Bank of India, which is the sole official source of national income data
  • D. They are compiled by NITI Aayog, which is entirely responsible for every official statistical release of the Union Government

Q4. Consider the following statements regarding the sequence of national accounts releases preceding the April-June 2026 quarterly estimates: 1. The First Advance Estimates of GDP for 2025-26 were released in January 2026 and placed real GDP growth for that year at 7.4% against 6.5% in 2024-25. 2. The Provisional Estimates of annual GDP for 2025-26 were released together with the quarterly estimates for the third quarter (October-December) of 2025-26. 3. The quarterly estimates for the first quarter of 2026-27 were released at constant prices only, current-price estimates being reserved for annual releases. 4. The First Advance Estimates for 2025-26 were presented at constant (2011-12) prices, whereas the first-quarter 2026-27 estimates use constant (2022-23) prices. Which of the statements given above is/are NOT correct?

  1. The First Advance Estimates of GDP for 2025-26 were released in January 2026 and placed real GDP growth for that year at 7.4% against 6.5% in 2024-25.
  2. The Provisional Estimates of annual GDP for 2025-26 were released together with the quarterly estimates for the third quarter (October-December) of 2025-26.
  3. The quarterly estimates for the first quarter of 2026-27 were released at constant prices only, current-price estimates being reserved for annual releases.
  4. The First Advance Estimates for 2025-26 were presented at constant (2011-12) prices, whereas the first-quarter 2026-27 estimates use constant (2022-23) prices.
  • A. 1 and 4
  • B. 2 only
  • C. 1, 3 and 4
  • D. 2 and 3

Q5. Consider the following as features of the New Series of National Accounts estimates with base year 2022-23: 1. Use of the Annual Survey of Unincorporated Sector Enterprises and the Periodic Labour Force Survey for annual level estimates. 2. Adoption of a single broad economy-wide deflator in place of sub-sector-specific price indices. 3. Introduction of a Producer Price Index and a Banking Services Price Index. 4. Compilation of quarterly estimates in line with the IMF Quarterly National Accounts Manual, 2017. Which of the above is/are correctly identified?

  1. Use of the Annual Survey of Unincorporated Sector Enterprises and the Periodic Labour Force Survey for annual level estimates.
  2. Adoption of a single broad economy-wide deflator in place of sub-sector-specific price indices.
  3. Introduction of a Producer Price Index and a Banking Services Price Index.
  4. Compilation of quarterly estimates in line with the IMF Quarterly National Accounts Manual, 2017.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 2 and 4 only
  • D. 3 and 4 only

Q6. The permanent standing committee whose recommendation led to the adoption of 2022-23 as the base year of India's national accounts was headed by which one of the following?

  • A. Prof. Biswanath Goldar
  • B. Prof. Sudipto Mundle
  • C. Dr. Pronab Sen
  • D. Dr. C. Rangarajan

Q7. In the April-June quarter of 2026-27, real GDP grew 7.8% while real GVA grew 8.2%. Which one of the following is the principal reason for GDP growth trailing GVA growth?

  • A. Net product taxes, which are added to GVA to arrive at GDP, grew only 3.9% as a sharp rise in subsidies held them down
  • B. Product subsidies, which are added to GVA to arrive at GDP, fell sharply during the quarter and dragged the aggregate down
  • C. GVA in the quarter was measured at current prices whereas GDP was measured at constant prices, producing the divergence
  • D. GDP excludes the primary sector, whose output grew faster than the other two sectors during the quarter

Q8. Consider the following statements on the relationship between Gross Value Added and Gross Domestic Product in the April-June quarter of 2026-27: 1. GVA at basic prices plus product taxes minus product subsidies yields GDP at market prices. 2. Real GVA, at Rs 73.82 lakh crore, was lower in level than real GDP, at Rs 81.36 lakh crore. 3. Nominal GVA growth, at 11.5%, exceeded nominal GDP growth, at 10.3%. 4. Real GVA grew 7.8% in the quarter while real GDP grew 8.2%. Which of the statements given above is/are NOT correct?

  1. GVA at basic prices plus product taxes minus product subsidies yields GDP at market prices.
  2. Real GVA, at Rs 73.82 lakh crore, was lower in level than real GDP, at Rs 81.36 lakh crore.
  3. Nominal GVA growth, at 11.5%, exceeded nominal GDP growth, at 10.3%.
  4. Real GVA grew 7.8% in the quarter while real GDP grew 8.2%.
  • A. 2 only
  • B. 4 only
  • C. 1 and 3
  • D. 2 and 4

Q9. Consider the following statements comparing sectoral performance in the April-June quarter of 2026-27 with the corresponding quarter of 2025-26: 1. Agriculture and allied sectors grew 3.6%, slower than the 4.4% recorded a year earlier. 2. Mining contracted by 2.4% against a growth of 12.4% in the corresponding quarter of the previous year. 3. Manufacturing gross value added grew 8.3%, down from 9.2% a year earlier. Which of the statements given above is/are correct?

  1. Agriculture and allied sectors grew 3.6%, slower than the 4.4% recorded a year earlier.
  2. Mining contracted by 2.4% against a growth of 12.4% in the corresponding quarter of the previous year.
  3. Manufacturing gross value added grew 8.3%, down from 9.2% a year earlier.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. At constant (2022-23) prices, which one of the following recorded the highest growth of 12.1% in the April-June quarter of 2026-27, making it the standout sub-sector of the tertiary sector?

  • A. Financial, real estate, IT and professional services
  • B. Electricity, gas, water supply and other utility services
  • C. Trade, hotels, transport, communication and broadcasting-related services
  • D. Construction, including public and private building activity

Q11. Consider the following as characteristics of the First Advance Estimates of GDP for 2025-26: 1. They were released by the National Statistics Office in January 2026. 2. They estimated real GDP growth for 2025-26 at 7.4% against 6.5% in 2024-25. 3. They were compiled at constant (2022-23) prices, the base year of the new series. 4. They placed nominal GDP growth at 8.0% and real gross value added growth at 7.3% for the year. Which of the above is/are correctly identified?

  1. They were released by the National Statistics Office in January 2026.
  2. They estimated real GDP growth for 2025-26 at 7.4% against 6.5% in 2024-25.
  3. They were compiled at constant (2022-23) prices, the base year of the new series.
  4. They placed nominal GDP growth at 8.0% and real gross value added growth at 7.3% for the year.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2 and 4

Q12. Consider the following statements on the levels and growth of national income aggregates in the April-June quarter of 2026-27: 1. Real GDP stood at Rs 81.36 lakh crore against Rs 75.46 lakh crore in the corresponding quarter a year earlier. 2. Nominal GDP stood at Rs 88.27 lakh crore against Rs 80.00 lakh crore in the corresponding quarter a year earlier. 3. Nominal GDP grew 11.5% in the quarter, faster than the 10.3% growth recorded by nominal gross value added. 4. Real GDP for the January-March quarter of 2025-26, at Rs 87.77 lakh crore, exceeded the real GDP of the April-June quarter of 2026-27. Which of the statements given above is/are NOT correct?

  1. Real GDP stood at Rs 81.36 lakh crore against Rs 75.46 lakh crore in the corresponding quarter a year earlier.
  2. Nominal GDP stood at Rs 88.27 lakh crore against Rs 80.00 lakh crore in the corresponding quarter a year earlier.
  3. Nominal GDP grew 11.5% in the quarter, faster than the 10.3% growth recorded by nominal gross value added.
  4. Real GDP for the January-March quarter of 2025-26, at Rs 87.77 lakh crore, exceeded the real GDP of the April-June quarter of 2026-27.
  • A. 3 only
  • B. 1 and 2
  • C. 3 and 4
  • D. 2 and 4