Economy MCQs for UPSC Prelims
Q1. As per meso-scale assessment of India's offshore wind resource, the largest identified offshore wind energy potential lies off the coast of which one of the following States?
- A. Tamil Nadu, with a potential of about 35 GW
- B. Maharashtra, with a potential of about 30 GW
- C. Andhra Pradesh, with a potential of about 33 GW
- D. Gujarat, with a potential of about 36 GW
Q2. Under the first offshore wind tender floated for the Tamil Nadu coast through international competitive bidding, what exactly was the successful bidder to obtain?
- A. A twenty-five year power purchase agreement with the bid-issuing agency at a tariff discovered through reverse competitive bidding
- B. A generation-based incentive payable on every unit of electricity exported to the inter-State transmission system
- C. Lease rights over a demarcated seabed block of 1 GW, with the electricity generated to be sold directly to consumers under the open access regime
- D. A viability gap funding grant released in tranches against commissioning milestones achieved on the allotted block
Q3. Consider the following statements regarding the recent course correction in India's offshore wind tendering:
1. In August 2025, the Solar Energy Corporation of India cancelled offshore wind tenders totalling 4.5 GW, comprising a seabed lease auction off the Tamil Nadu coast and an ISTS-connected project off the Gujarat coast.
2. For the next round of offshore wind projects, the Ministry of New and Renewable Energy has indicated that support will take the form of capital expenditure assistance rather than a production-linked incentive.
3. Feasibility studies off the Tamil Nadu coast have established a capacity utilisation factor above 50 per cent, a level uniformly attained across every one of the identified offshore zones off both Tamil Nadu and Gujarat.
Which of the statements given above is/are correct?
- In August 2025, the Solar Energy Corporation of India cancelled offshore wind tenders totalling 4.5 GW, comprising a seabed lease auction off the Tamil Nadu coast and an ISTS-connected project off the Gujarat coast.
- For the next round of offshore wind projects, the Ministry of New and Renewable Energy has indicated that support will take the form of capital expenditure assistance rather than a production-linked incentive.
- Feasibility studies off the Tamil Nadu coast have established a capacity utilisation factor above 50 per cent, a level uniformly attained across every one of the identified offshore zones off both Tamil Nadu and Gujarat.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q4. In the context of the offshore wind energy projects scheme, 'viability gap funding' is best described as:
- A. Government support meeting part of the project's capital cost, so that the cost of power falls to a level at which DISCOMs find it viable to purchase
- B. An incentive disbursed to the developer for every unit of electricity generated over the life of the power purchase agreement
- C. An interest subvention borne by the Government on the debt raised by the developer from scheduled commercial banks
- D. A guarantee under which the Government pays the developer the difference whenever the market clearing price falls below a floor tariff
Q5. The Union Cabinet approved the Viability Gap Funding scheme for the implementation of offshore wind energy projects with a total outlay of:
- A. Rs 6,853 crore
- B. Rs 7,453 crore
- C. Rs 4,50,000 crore
- D. Rs 600 crore
Q6. Consider the following statements regarding India's offshore wind energy targets and enabling infrastructure:
1. The medium-term target declared by the Government for offshore wind capacity addition was 5 GW by 2022, against a long-term target of 30 GW by 2030.
2. The Viability Gap Funding scheme for offshore wind covers 1 GW of capacity, split equally between the Gujarat and Tamil Nadu coasts.
3. Planning for the initial phase of offshore transmission capacity covers 10 GW in all, comprising 5 GW each off the Gujarat and Tamil Nadu coasts, with the evacuation infrastructure to be built by Power Grid Corporation of India Limited.
Which of the statements given above is/are correct?
- The medium-term target declared by the Government for offshore wind capacity addition was 5 GW by 2022, against a long-term target of 30 GW by 2030.
- The Viability Gap Funding scheme for offshore wind covers 1 GW of capacity, split equally between the Gujarat and Tamil Nadu coasts.
- Planning for the initial phase of offshore transmission capacity covers 10 GW in all, comprising 5 GW each off the Gujarat and Tamil Nadu coasts, with the evacuation infrastructure to be built by Power Grid Corporation of India Limited.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q7. The basic framework for the development of India's offshore wind energy sector was first laid down by which one of the following?
- A. The Offshore Wind Energy Lease Rules, 2023
- B. The National Offshore Wind Energy Policy, 2015
- C. The National Wind-Solar Hybrid Policy, 2018
- D. The Viability Gap Funding Scheme for Offshore Wind Energy Projects
Q8. LiDAR-based measurement campaigns for offshore wind resource assessment at the identified zones off the Gujarat and Tamil Nadu coasts have been carried out by which one of the following bodies?
- A. National Institute of Ocean Technology, Chennai
- B. Indian National Centre for Ocean Information Services, Hyderabad
- C. National Centre for Coastal Research, Chennai
- D. National Institute of Wind Energy, Chennai
Q9. The Offshore Wind Energy Lease Rules, which govern the leasing of offshore areas within India's Exclusive Economic Zone for wind energy development, were notified in:
- A. June 2015, alongside the framework policy for the sector
- B. December 2023, ahead of the first seabed lease auction
- C. February 2024, along with the bid invitation off Tamil Nadu
- D. September 2024, along with the bid invitation off Gujarat
Q10. The administration of the Offshore Wind Energy Lease Rules, which regulate the grant of leases of offshore areas for wind energy projects, is vested in which one of the following?
- A. The Ministry of External Affairs, Government of India
- B. The Ministry of Ports, Shipping and Waterways, Government of India
- C. The Ministry of New and Renewable Energy, Government of India
- D. The Ministry of Earth Sciences, Government of India
Q11. Non-resident deposit accounts such as NRE, NRO and FCNR(B) are governed by a framework laid down by which authority, and are maintained with which entities?
- A. The Reserve Bank of India under the Foreign Exchange Management Act, 1999, with authorised dealer banks in India
- B. The Reserve Bank of India under the Banking Regulation Act, 1949, with scheduled commercial banks and deposit-taking NBFCs
- C. The Department of Economic Affairs under the Foreign Exchange Management Act, 1999, with authorised dealer banks in India
- D. The Securities and Exchange Board of India under the Foreign Contribution (Regulation) Act, 2010, with custodian banks in India
Q12. Consider the following statements regarding the Reserve Bank of India's outstanding net short dollar position in the forward market during 2026:
1. It rose to a record level of about $136.77 billion at end-July 2026 from about $103.33 billion at end-June 2026.
2. Short positions of tenor over one year rose from about $64.21 billion to about $91.54 billion between end-June and end-July 2026.
3. Short positions of tenor less than one year rose from about $47.66 billion to about $91.54 billion over the same period.
Which of the statements given above is/are correct?
- It rose to a record level of about $136.77 billion at end-July 2026 from about $103.33 billion at end-June 2026.
- Short positions of tenor over one year rose from about $64.21 billion to about $91.54 billion between end-June and end-July 2026.
- Short positions of tenor less than one year rose from about $47.66 billion to about $91.54 billion over the same period.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1, 2 and 3
Q13. In the Reserve Bank of India's 2013 FCNR(B) swap window, the figure of 3.5 per cent, compounded semi-annually for the tenor of the swap, denoted which one of the following?
- A. The fixed cost at which banks could swap the FCNR(B) dollars they mobilised into rupees with the RBI
- B. The ceiling interest rate that banks were permitted to offer non-resident depositors on such FCNR(B) deposits
- C. The concessional rate at which the RBI lent rupees to banks against the security of these dollar deposits
- D. The premium payable by the RBI to banks for delivering the dollars back to it at the maturity of the swap
Q14. Consider the following statements comparing the Reserve Bank of India's 2013 FCNR(B) swap window with its 2026 special USD-INR swap facility:
1. The 2013 window allowed banks to swap their FCNR(B) dollars with the RBI at a fixed cost of 3.5 per cent per annum, whereas under the 2026 facility the RBI itself bore the hedging cost on eligible deposits.
2. Both windows required the eligible FCNR(B) deposits to have a minimum original tenor of three years.
3. The 2013 window mobilised a larger volume of FCNR(B) funds than the 2026 facility.
Which of the statements given above is/are correct?
- The 2013 window allowed banks to swap their FCNR(B) dollars with the RBI at a fixed cost of 3.5 per cent per annum, whereas under the 2026 facility the RBI itself bore the hedging cost on eligible deposits.
- Both windows required the eligible FCNR(B) deposits to have a minimum original tenor of three years.
- The 2013 window mobilised a larger volume of FCNR(B) funds than the 2026 facility.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q15. The regulatory relaxations that accompanied the 2026 FCNR(B) swap window were granted by which authority, and included which of the following measures?
- A. The Reserve Bank of India — exclusion of positions arising from the swap facility from banks' net overnight open position (NOP-INR) limits
- B. The Department of Financial Services, Ministry of Finance — exemption of these deposits from cash reserve ratio and statutory liquidity ratio requirements
- C. The International Financial Services Centres Authority — permission to mobilise these deposits through IFSC banking units at GIFT City
- D. The Reserve Bank of India — a sovereign guarantee to depositors against exchange-rate loss on maturity of the deposits
Q16. Which one of the following correctly describes the change made in 2026 to the closing dates of the windows under RBI's special forex swap facility?
- A. The FCNR(B) window's closure was advanced from 30 September to 31 August 2026, while the OFCB/ECB window continued up to 31 December 2026
- B. The FCNR(B) window's closure was advanced from 31 December to 30 September 2026, while the OFCB/ECB window was advanced to 31 August 2026
- C. The FCNR(B) window's closure was advanced from 30 September to 31 July 2026, and the OFCB/ECB window was closed on the same date
- D. The FCNR(B) window's closure was extended from 31 August to 30 September 2026, while the OFCB/ECB window was extended to 31 March 2027
Q17. Under the Reserve Bank of India's 2026 swap facility for FCNR(B) deposits, the swap transaction is contracted between which parties, and what does it cover?
- A. Between authorised dealer banks and the RBI, covering only the principal amount of the deposits
- B. Between authorised dealer banks and the RBI, covering the principal as well as the interest component
- C. Between the non-resident depositor and the RBI, covering only the principal amount of the deposit
- D. Between authorised dealer banks and the Government of India, covering the principal and exchange-rate losses
Q18. With reference to the special USD-INR swap facility opened by the Reserve Bank of India in 2026 for FCNR(B) deposits, which one of the following is correct?
- A. It was announced on 5 June 2026 and applied to eligible deposits mobilised from 8 June 2026
- B. It was announced on 8 June 2026 and applied to eligible deposits mobilised from 17 June 2026
- C. It was announced on 23 June 2026 and applied to eligible deposits mobilised from 1 July 2026
- D. It was announced on 5 June 2026 and applied to eligible deposits mobilised from 21 August 2026
Q19. In the Periodic Labour Force Survey, the indicator termed 'Worker Population Ratio' is defined as which one of the following?
- A. The percentage of employed persons in the population
- B. The percentage of persons in the labour force in the population
- C. The percentage of employed persons among the persons in the labour force
- D. The percentage of persons seeking or available for work in the population
Q20. Data used to assess the asymmetry between India's crude oil imports and its refined petroleum product exports, including forecasting and evaluation of petroleum import and export trends, is maintained by which one of the following bodies?
- A. The Directorate General of Commercial Intelligence and Statistics under the Ministry of Commerce and Industry
- B. The National Statistical Office under the Ministry of Statistics and Programme Implementation
- C. The Directorate General of Hydrocarbons under the Ministry of Petroleum and Natural Gas
- D. The Petroleum Planning and Analysis Cell under the Ministry of Petroleum and Natural Gas
Q21. Which one of the following statements regarding India's Strategic Petroleum Reserve (SPR) programme is correct?
- A. The Phase-II reserves approved in July 2021 at Chandikhol and Padur are to be developed on a public-private partnership basis
- B. All strategic petroleum reserve caverns are owned and operated directly by the Ministry of Petroleum and Natural Gas itself
- C. The existing strategic reserves alone meet the entire national requirement of 74 days of crude oil and petroleum product storage
- D. Strategic petroleum reserve facilities have been located exclusively along India's eastern coastline for reasons of import logistics
Q22. With reference to India's petroleum refining sector, consider the following statements:
1. India is the world's fourth largest refiner, with installed capacity of about 258 million tonnes per annum.
2. India's refineries comprise nineteen public-sector, three private-sector and one joint-venture refinery.
3. India's petroleum product exports in FY 2025-26 exceeded its domestic petroleum consumption in that year.
4. India's petroleum product exports in FY 2025-26 were of the order of 61.5 million tonnes.
Which of the statements given above is/are NOT correct?
- India is the world's fourth largest refiner, with installed capacity of about 258 million tonnes per annum.
- India's refineries comprise nineteen public-sector, three private-sector and one joint-venture refinery.
- India's petroleum product exports in FY 2025-26 exceeded its domestic petroleum consumption in that year.
- India's petroleum product exports in FY 2025-26 were of the order of 61.5 million tonnes.
- A. 1 and 3
- B. 2 only
- C. 3 and 4
- D. 3 only
Q23. The Government of India has set a target of raising the country's crude oil refining capacity to about 450 million metric tonnes per annum by which year?
- A. 2028
- B. 2030
- C. 2035
- D. 2040
Q24. Which Indian private refining company, in which Russia's Rosneft holds a major stake, emerged in 2026 as the source of gasoline cargoes shipped to Russia?
- A. Reliance Industries Limited, operator of the Jamnagar refinery complex in Gujarat
- B. HPCL-Mittal Energy Limited, operator of the Guru Gobind Singh refinery at Bathinda, Punjab
- C. Nayara Energy Limited, operator of a 400,000 barrels-per-day refinery in Gujarat
- D. Chennai Petroleum Corporation Limited, operator of the Manali refinery in Tamil Nadu
Q25. In August 2026, Russia's seaborne gasoline imports surged to a record level of approximately how many barrels per day?
- A. 60,000 barrels per day
- B. 125,000 barrels per day
- C. 250,000 barrels per day
- D. 400,000 barrels per day
Q26. Reports on the 2026 Russian fuel crunch noted that Russian 'refinery runs' fell to about 3.9 million barrels per day. In petroleum statistics, refinery runs refer to which one of the following?
- A. The volume of crude oil actually processed by refineries in a given period
- B. The installed nameplate capacity of refineries available for processing crude
- C. The volume of refined petroleum products shipped out of refineries by sea
- D. The number of continuous operating cycles between two scheduled refinery shutdowns
Q27. Following the imposition of Western sanctions on Russia, by approximately what percentage did India's crude oil imports from Russia increase between 2021-22 and 2022-23?
- A. About 62 per cent
- B. About 112 per cent
- C. About 162 per cent
- D. About 212 per cent
Q28. Consider the following statements about the regulatory regime for fishing beyond the territorial waters of the coastal States:
1. The Sustainable Harnessing of Fisheries in the Exclusive Economic Zone Rules, 2025 were notified under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976.
2. These Rules give priority to Fishermen Cooperative Societies and Fish Farmer Producer Organizations for undertaking deep-sea fishing operations.
3. These Rules permit LED light fishing and pair trawling in the exclusive economic zone subject to vessel-tracking conditions.
4. An enabling framework for sustainable harnessing of fisheries in the exclusive economic zone and the high seas, with special focus on the Andaman and Nicobar Islands and Lakshadweep, was announced in the Union Budget 2025-26.
Which of the statements given above is/are correct?
- The Sustainable Harnessing of Fisheries in the Exclusive Economic Zone Rules, 2025 were notified under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976.
- These Rules give priority to Fishermen Cooperative Societies and Fish Farmer Producer Organizations for undertaking deep-sea fishing operations.
- These Rules permit LED light fishing and pair trawling in the exclusive economic zone subject to vessel-tracking conditions.
- An enabling framework for sustainable harnessing of fisheries in the exclusive economic zone and the high seas, with special focus on the Andaman and Nicobar Islands and Lakshadweep, was announced in the Union Budget 2025-26.
- A. 1, 2 and 4
- B. 2 and 3 only
- C. 1 and 3 only
- D. 3 and 4 only
Q29. Shortly before the United States' forced-labour duty on Indian goods took effect in late July 2026, India prohibited the import of goods produced wholly or partly through forced labour. This prohibition was operationalised through a gazette notification issued by which one of the following?
- A. The Central Board of Indirect Taxes and Customs, by amending the First Schedule to the Customs Tariff Act
- B. The Ministry of Labour and Employment, by framing rules under the Bonded Labour System (Abolition) Act
- C. The Directorate General of Trade Remedies, by issuing a safeguard measure notification
- D. The Directorate General of Foreign Trade, by amending the Foreign Trade Policy, 2023
Q30. India's merchandise trade surplus with the United States in the financial year 2025-26 was closest to which one of the following figures?
- A. $24.4 billion
- B. $34.4 billion
- C. $40.9 billion
- D. $52.9 billion