Economy MCQs for UPSC Prelims — January 2026

Q1. The Economic Survey, presented to Parliament a day before the Union Budget, is prepared by which one of the following?

  • A. Department of Expenditure, Ministry of Finance
  • B. Department of Economic Affairs, Ministry of Finance
  • C. Department of Revenue, Ministry of Finance
  • D. NITI Aayog, in association with the Ministry of Finance

Q2. The Economic Survey 2025-26, tabled in Parliament on 29 January 2026, was authored under the authority of which one of the following Chief Economic Advisers?

  • A. Krishnamurthy V. Subramanian
  • B. Arvind Subramanian
  • C. V. Anantha Nageswaran
  • D. Raghuram G. Rajan

Q3. Which one of the following is the central conceptual pillar around which the Economic Survey 2025-26 is organised?

  • A. Universal Basic Income
  • B. Blue Economy
  • C. Entrepreneurial State
  • D. Hockey-Stick Growth Trajectory

Q4. With reference to the 'Entrepreneurial State' as articulated in the Economic Survey 2025-26, consider the following statements: 1. It calls for the state to act before certainty emerges rather than wait for it. 2. It seeks to structure risk rather than avoid it. 3. It emphasises systematic learning from experimentation. 4. It proposes replacing private markets with state-led production in strategic sectors. Which of the above is/are correctly identified?

  1. It calls for the state to act before certainty emerges rather than wait for it.
  2. It seeks to structure risk rather than avoid it.
  3. It emphasises systematic learning from experimentation.
  4. It proposes replacing private markets with state-led production in strategic sectors.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q5. With reference to the Economic Survey 2025-26, which one of the following best describes the concept of an 'Entrepreneurial State'?

  • A. A state that withdraws from economic activity and confines itself to regulation of private enterprise
  • B. A state that acts before certainty emerges, structures risk rather than avoids it, and learns systematically from experimentation
  • C. A state that owns and operates the commanding heights of the economy through public sector undertakings
  • D. A state that guarantees a universal basic income to all citizens irrespective of employment status

Q6. With reference to the relative offers made by India and the European Union under the India–EU FTA (2026), consider the following statements: 1. The EU's tariff concessions to India cover a larger share of bilateral trade value than India's reciprocal tariff concessions to the EU. 2. India alone has excluded dairy products from tariff liberalisation, whereas the EU has made no such exclusion of dairy under the Agreement. 3. The Agreement was concluded exclusively between India and the European Commission, with no participation of any EU member state's head of government or state. Which of the statements given above is/are correct?

  1. The EU's tariff concessions to India cover a larger share of bilateral trade value than India's reciprocal tariff concessions to the EU.
  2. India alone has excluded dairy products from tariff liberalisation, whereas the EU has made no such exclusion of dairy under the Agreement.
  3. The Agreement was concluded exclusively between India and the European Commission, with no participation of any EU member state's head of government or state.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Under the India–EU Free Trade Agreement, India has placed a significant share of its tariff lines under phased tariff elimination. What is the longest phase-in period (in years) over which India's tariff elimination is staggered under the Agreement?

  • A. 5 years
  • B. 7 years
  • C. 10 years
  • D. 15 years

Q8. Which one of the following is the nodal ministry of the Government of India that negotiated and operationalises the India–European Union Free Trade Agreement concluded in 2026?

  • A. Ministry of External Affairs
  • B. Ministry of Commerce and Industry
  • C. Ministry of Finance
  • D. Ministry of Agriculture and Farmers' Welfare

Q9. Under India's Green Steel Taxonomy, the highest (Five-Star) green rating is awarded to steel plants whose CO2-equivalent emission intensity is below which one of the following thresholds (tonnes of CO2e per tonne of finished steel)?

  • A. 1.0
  • B. 1.6
  • C. 2.0
  • D. 2.2

Q10. With reference to the emission-accounting boundary defined in India's Green Steel Taxonomy (2024), consider the following: 1. Scope-1 direct emissions of the steel plant 2. Scope-2 emissions from purchased electricity 3. Embodied emissions in purchased raw materials and intermediary products 4. Upstream emissions from iron-ore mining Which of the above are correctly identified as items included within the taxonomy's emission scope?

  1. Scope-1 direct emissions of the steel plant
  2. Scope-2 emissions from purchased electricity
  3. Embodied emissions in purchased raw materials and intermediary products
  4. Upstream emissions from iron-ore mining
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q11. How many Task Forces did the Ministry of Steel constitute in February 2025 to recommend measures across the steel-industry decarbonisation chain (covering levers such as energy efficiency, green hydrogen, CCUS and biochar)?

  • A. 9
  • B. 11
  • C. 14
  • D. 17

Q12. With reference to India's Green Steel Taxonomy, which one of the following has been designated as the nodal agency for Measurement, Reporting and Verification (MRV) and for issuing greenness certificates and star ratings to steel producers?

  • A. Bureau of Energy Efficiency (BEE)
  • B. Joint Plant Committee (JPC)
  • C. National Institute of Secondary Steel Technology (NISST)
  • D. Steel Research and Technology Mission of India (SRTMI)

Q13. With reference to India's crude oil import profile in April–December FY26 as compared to April–December FY25, as reported in the Economic Survey 2025-26, consider the following statements: 1. The share of crude oil imports from the United States rose from 4.6% to 8.1%. 2. The share of crude oil imports from Egypt declined between the two periods. 3. Crude oil imports from Russia, Saudi Arabia, Iraq and Venezuela registered a decline. Which of the statements given above is/are correct?

  1. The share of crude oil imports from the United States rose from 4.6% to 8.1%.
  2. The share of crude oil imports from Egypt declined between the two periods.
  3. Crude oil imports from Russia, Saudi Arabia, Iraq and Venezuela registered a decline.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q14. As per Economic Survey 2025-26, which country registered the largest absolute percentage-point increase in its share of India's crude oil imports between April–December FY25 and April–December FY26?

  • A. United Arab Emirates
  • B. United States of America
  • C. Egypt
  • D. Libya

Q15. In the context of India's crude oil imports highlighted in the Economic Survey 2025-26, what does the term 'Indian Crude Basket' refer to?

  • A. The list of countries from which India is permitted to import crude oil under bilateral hydrocarbon agreements
  • B. The weighted average of Dubai-Oman (sour) and Brent Dated (sweet) crude oil prices used as the benchmark for pricing India's crude oil imports
  • C. The volume-weighted physical blend of crude oils stored in India's Strategic Petroleum Reserves
  • D. The composite import duty structure applied by the Government of India on different grades of imported crude oil

Q16. Consider the following statements comparing the fiscal-anchor recommendations of the N.K. Singh Committee (2016-17) with those of the Economic Survey 2025-26: 1. While the N.K. Singh Committee recommended a Centre-specific debt ceiling of 40% of GDP, the Economic Survey 2025-26 proposes a general government debt-to-GDP target of 50±1% by FY 2030-31. 2. Unlike the N.K. Singh Committee, which sought to retain a fiscal-deficit numeric target (2.5% of GDP by FY 2022-23), the Economic Survey 2025-26 argues for relaxing the rigid annual fiscal deficit target in favour of a debt-based anchor. 3. Both the N.K. Singh Committee and the Economic Survey 2025-26 propose eliminating the escape clause from the FRBM framework. Which of the statements given above is/are correct?

  1. While the N.K. Singh Committee recommended a Centre-specific debt ceiling of 40% of GDP, the Economic Survey 2025-26 proposes a general government debt-to-GDP target of 50±1% by FY 2030-31.
  2. Unlike the N.K. Singh Committee, which sought to retain a fiscal-deficit numeric target (2.5% of GDP by FY 2022-23), the Economic Survey 2025-26 argues for relaxing the rigid annual fiscal deficit target in favour of a debt-based anchor.
  3. Both the N.K. Singh Committee and the Economic Survey 2025-26 propose eliminating the escape clause from the FRBM framework.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q17. With reference to the Economic Survey 2025-26's observations on India's fiscal position, consider the following statements: 1. The Centre's fiscal deficit for FY 2025-26 is estimated at 4.4% of GDP. 2. The general government debt-to-GDP ratio stood at 55.7% in FY 2024-25. 3. The Survey recommends an immediate reinstatement of the FRBM Act's 3% fiscal deficit target for the Centre. 4. The Centre's revenue deficit for FY 2025-26 is projected to be the lowest since FY 2008-09. Which of the above is/are NOT correct?

  1. The Centre's fiscal deficit for FY 2025-26 is estimated at 4.4% of GDP.
  2. The general government debt-to-GDP ratio stood at 55.7% in FY 2024-25.
  3. The Survey recommends an immediate reinstatement of the FRBM Act's 3% fiscal deficit target for the Centre.
  4. The Centre's revenue deficit for FY 2025-26 is projected to be the lowest since FY 2008-09.
  • A. 3 only
  • B. 1 and 2 only
  • C. 3 and 4 only
  • D. 2 and 3 only

Q18. As per the Economic Survey 2025-26, the combined fiscal deficit of the State Governments stood at approximately what percentage of GDP in FY 2024-25?

  • A. 2.5% of GDP
  • B. 2.8% of GDP
  • C. 3.2% of GDP
  • D. 4.4% of GDP

Q19. With reference to the Fiscal Responsibility and Budget Management (FRBM) framework in India, consider the following statements: 1. The FRBM Act, 2003 originally envisaged bringing the Centre's fiscal deficit down to 3% of GDP. 2. The N.K. Singh Committee (2016) recommended a Centre's debt ceiling of 40% of GDP and a States' debt ceiling of 20% of GDP. 3. The escape clause introduced through the 2018 FRBM amendment permits deviation from the fiscal deficit target by up to 0.5 percentage points of GDP under specified conditions. 4. The Economic Survey 2025-26 recommends an immediate scrapping of the FRBM Act, 2003 in favour of a States-only fiscal rule. Which of the statements given above is/are correctly identified?

  1. The FRBM Act, 2003 originally envisaged bringing the Centre's fiscal deficit down to 3% of GDP.
  2. The N.K. Singh Committee (2016) recommended a Centre's debt ceiling of 40% of GDP and a States' debt ceiling of 20% of GDP.
  3. The escape clause introduced through the 2018 FRBM amendment permits deviation from the fiscal deficit target by up to 0.5 percentage points of GDP under specified conditions.
  4. The Economic Survey 2025-26 recommends an immediate scrapping of the FRBM Act, 2003 in favour of a States-only fiscal rule.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q20. According to the Economic Survey 2025-26, which one of the following has been proposed as the primary medium-term fiscal anchor for the Central Government until FY 2030-31?

  • A. Annual fiscal deficit target of 3% of GDP under the FRBM Act, 2003
  • B. General government debt-to-GDP ratio of 50±1%
  • C. Revenue deficit target of zero per cent of GDP
  • D. Primary deficit target of 1.5% of GDP

Q21. In the context of MSME financing referenced by the Economic Survey 2025-26, the Self-Reliant India (SRI) Fund is best described as:

  • A. A ₹50,000 crore equity infusion fund that channels growth capital into MSMEs through a fund-of-funds structure
  • B. A central interest-subvention scheme that caps lending rates for MSME term loans at 4 per cent per annum
  • C. A credit guarantee corpus that fully underwrites collateral-free loans up to ₹2 crore for first-time MSME borrowers
  • D. A sovereign-backed export credit insurance pool administered by ECGC for MSME exporters

Q22. According to the Economic Survey 2025-26, which one of the following is the second-largest employer in India after agriculture?

  • A. Construction sector
  • B. MSME sector
  • C. Information Technology and IT-enabled services
  • D. Organised manufacturing under the Factories Act

Q23. With reference to the National Manufacturing Mission (NMM) announced in Union Budget 2025-26 vis-à-vis the earlier National Manufacturing Policy (NMP) of 2011, consider the following statements: 1. While NMP 2011 had targeted manufacturing's share in GDP to reach 25% by 2022, NMM has reset this 25% target to the year 2035. 2. The employment-creation target under NMM (143 million jobs) is higher than the 100 million jobs envisaged under NMP 2011. 3. Unlike NMP 2011, NMM explicitly identifies Clean Tech manufacturing — including solar PV cells, EV batteries, electrolysers and wind turbines — as an area of support. Which of the statements given above is/are correct?

  1. While NMP 2011 had targeted manufacturing's share in GDP to reach 25% by 2022, NMM has reset this 25% target to the year 2035.
  2. The employment-creation target under NMM (143 million jobs) is higher than the 100 million jobs envisaged under NMP 2011.
  3. Unlike NMP 2011, NMM explicitly identifies Clean Tech manufacturing — including solar PV cells, EV batteries, electrolysers and wind turbines — as an area of support.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q24. The National Manufacturing Mission (NMM) announced in Union Budget 2025-26 is operationalised under which one of the following?

  • A. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • B. Ministry of Micro, Small and Medium Enterprises
  • C. Department of Heavy Industry, Ministry of Heavy Industries
  • D. NITI Aayog under the Prime Minister's Office

Q25. As announced in the Union Budget 2025-26, the National Manufacturing Mission (NMM) lays emphasis on how many focal areas?

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

Q26. The ICAR-Indian Grassland and Fodder Research Institute (IGFRI), Jhansi, whose estimates on feed and fodder demand-supply gaps were cited in the Economic Survey 2025-26, functions under the administrative control of which one of the following?

  • A. Department of Animal Husbandry and Dairying
  • B. Indian Council of Agricultural Research
  • C. National Dairy Development Board
  • D. Department of Agriculture and Farmers' Welfare

Q27. In the context of livestock nutrition in India, the term 'concentrate feed', as distinguished from fodder, most accurately refers to:

  • A. Freshly cut green plant material such as grasses and legumes fed directly to animals
  • B. Dry crop residues such as paddy and wheat straw stored for off-season use
  • C. Grain-based, protein-rich supplementary feed distinct from bulky roughages
  • D. Fermented fodder preserved under anaerobic conditions, commonly known as silage

Q28. As per the Economic Survey 2025-26, which one of the following sub-sectors recorded the HIGHEST average annual growth rate during the decade 2015-16 to 2024-25 within agriculture and allied activities?

  • A. Crop sector
  • B. Livestock
  • C. Fisheries and aquaculture
  • D. Forestry and logging

Q29. As per the Third Advance Estimates released by the Ministry of Agriculture and Farmers' Welfare for the agricultural year 2024-25, the total foodgrain production of India was estimated at approximately how many lakh metric tonnes (LMT)?

  • A. 3322.98 LMT
  • B. 3422.50 LMT
  • C. 3539.59 LMT
  • D. 3647.05 LMT

Q30. In the context of the Economic Survey 2025-26, the Advance Estimates of production of major agricultural crops (Kharif and Rabi) that feed into the Survey's assessment of agricultural growth are released by which one of the following?

  • A. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • B. Department of Agriculture and Farmers' Welfare under the Ministry of Agriculture and Farmers' Welfare
  • C. NITI Aayog
  • D. Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution
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