Economy MCQs for UPSC Prelims — February 2026

Q1. Consider the following definitions used in the Union Budget: 1. Fiscal Deficit = Total Expenditure − Total Receipts (excluding borrowings) 2. Revenue Deficit = Revenue Expenditure − Revenue Receipts 3. Primary Deficit = Fiscal Deficit − Interest Payments 4. Effective Revenue Deficit = Revenue Deficit + Grants for creation of capital assets Which of the above is/are correctly identified?

1. Fiscal Deficit = Total Expenditure − Total Receipts (excluding borrowings)
2. Revenue Deficit = Revenue Expenditure − Revenue Receipts
3. Primary Deficit = Fiscal Deficit − Interest Payments
4. Effective Revenue Deficit = Revenue Deficit + Grants for creation of capital assets

• A. 1 and 2 only
• B. 1, 2 and 3 only
• C. 2, 3 and 4 only
• D. 1, 2, 3 and 4

Q2. The Controller General of Accounts (CGA), which releases the monthly Union Government accounts used to track the fiscal deficit, functions under 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. Ministry of Statistics and Programme Implementation

Q3. With reference to the Union Government's fiscal position as released by the CGA for April–January 2025-26 vis-à-vis the corresponding period of the previous year, consider the following statements: 1. The fiscal deficit at January-end 2025-26 stood at 63% of the Budget Estimate, lower than 74.5% recorded in the same period of FY 2024-25. 2. The fiscal deficit target as a percentage of GDP in BE 2025-26 (4.4%) is lower than that estimated for BE 2026-27 (4.3%). 3. Total receipts up to January 2026 stood at 79.5% of the corresponding Revised Estimate for 2025-26. Which of the statements given above is/are correct?

1. The fiscal deficit at January-end 2025-26 stood at 63% of the Budget Estimate, lower than 74.5% recorded in the same period of FY 2024-25.
2. The fiscal deficit target as a percentage of GDP in BE 2025-26 (4.4%) is lower than that estimated for BE 2026-27 (4.3%).
3. Total receipts up to January 2026 stood at 79.5% of the corresponding Revised Estimate for 2025-26.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q4. According to the Controller General of Accounts (CGA) monthly accounts for April–January 2025-26, which one of the following constituted the LARGEST single component of the Union Government's total receipts during the period?

• A. Net tax revenue to the Centre
• B. Non-tax revenue
• C. Non-debt capital receipts
• D. Disinvestment proceeds

Q5. The PLI Scheme for Automobile and Auto Components — under which the C-DEP (2026) flagged a 13–16% cost advantage being directed at domestic market capture rather than exports — is administered as the nodal scheme by which one of the following Union Ministries?

• A. Ministry of Road Transport and Highways
• B. Ministry of Commerce and Industry
• C. Ministry of Heavy Industries
• D. Ministry of Micro, Small and Medium Enterprises

Q6. As per the Ministry of Heavy Industries (status as of 30 November 2025), how many applicants stand approved under the PLI Scheme for Automobile and Auto Components?

• A. 63
• B. 82
• C. 95
• D. 115

Q7. With reference to the new GDP series (base year 2022-23) released in February 2026 in comparison with the previous series (base year 2011-12), consider the following statements: 1. The new series shifts the base year forward by eleven years, replacing a benchmark that had been in use for over a decade. 2. Under the new series, real GDP growth for FY 2024-25 has been revised upward relative to the estimate under the old series. 3. Unlike the old series, the new series has discarded the System of National Accounts (SNA) 2008 framework altogether. Which of the statements given above is/are correct?

1. The new series shifts the base year forward by eleven years, replacing a benchmark that had been in use for over a decade.
2. Under the new series, real GDP growth for FY 2024-25 has been revised upward relative to the estimate under the old series.
3. Unlike the old series, the new series has discarded the System of National Accounts (SNA) 2008 framework altogether.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q8. With reference to the new series of GDP estimates released by the National Statistical Office in February 2026, consider the following statements regarding its methodological changes: 1. The base year has been shifted from 2011-12 to 2022-23. 2. Single deflation has been completely done away with. 3. Quarterly GDP is now benchmarked using the Pro-Rata method, replacing the earlier Proportional Denton method. 4. Double deflation is being applied in the manufacturing and agriculture industries. Which of the above is/are NOT correct?

1. The base year has been shifted from 2011-12 to 2022-23.
2. Single deflation has been completely done away with.
3. Quarterly GDP is now benchmarked using the Pro-Rata method, replacing the earlier Proportional Denton method.
4. Double deflation is being applied in the manufacturing and agriculture industries.

• A. 1 only
• B. 3 only
• C. 2 and 4 only
• D. 1 and 3 only

Q9. In the context of the new GDP series with base year 2022-23, the 'Proportional Denton method' is best described as:

• A. A double-deflation procedure used to estimate real value added in the manufacturing sector
• B. A benchmarking technique used to derive quarterly GDP estimates so that they remain consistent with annual totals while avoiding artificial discontinuities
• C. A statistical method to impute the output of the informal household sector using ASUSE and PLFS
• D. A chain-weighting technique for combining sectoral GVA into headline GDP at constant prices

Q10. With reference to the new series of GDP estimates with base year 2022-23, consider the following data sources/surveys: 1. MCA-21 corporate filings database 2. Annual Survey of Unincorporated Sector Enterprises (ASUSE) 3. Periodic Labour Force Survey (PLFS) 4. National Family Health Survey (NFHS-6) Which of the above are correctly identified as data sources explicitly utilised in compiling the new series?

1. MCA-21 corporate filings database
2. Annual Survey of Unincorporated Sector Enterprises (ASUSE)
3. Periodic Labour Force Survey (PLFS)
4. National Family Health Survey (NFHS-6)

• A. 1, 2 and 3 only
• B. 2 and 4 only
• C. 1 and 3 only
• D. 1, 2, 3 and 4

Q11. According to the new series of GDP estimates with base year 2022-23 released by MoSPI in February 2026, which one of the following sectors recorded the highest (double-digit) real growth in FY 2025-26 and was identified as the major driver of overall growth?

• A. Agriculture, livestock, forestry and fishing
• B. Manufacturing
• C. Construction
• D. Financial, real estate and professional services

Q12. The Central Electricity Authority (CEA), which has flagged the rising risk of grid oscillations from variable renewable energy integration, derives its present statutory status from which one of the following enactments?

• A. Electricity (Supply) Act, 1948
• B. Electricity Regulatory Commissions Act, 1998
• C. Energy Conservation Act, 2001
• D. Electricity Act, 2003

Q13. As referenced by the Central Electricity Authority in 2025, approximately what quantum of energy storage capacity (in GWh) has been estimated as required by 2029-30 to facilitate reliable integration of renewable energy into the Indian electricity grid?

• A. 211 GWh
• B. 336 GWh
• C. 411 GWh
• D. 500 GWh

Q14. With reference to institutional and regulatory measures adopted in India to manage the inflexibility of the electricity grid arising from variable renewable energy integration, consider the following: 1. Flexibilisation of operations of coal-based thermal generating stations 2. CERC Connectivity and GNA (Third Amendment) Regulations, 2025 introducing solar-hour access 3. Renewable Energy Management Centres co-located with Load Despatch Centres 4. Establishment of State Electricity Boards (SEBs) under the Electricity (Supply) Act, 1948 to enable real-time forecasting of solar and wind generation Which of the above is/are NOT correctly identified as a measure for managing grid inflexibility from variable renewable energy?

1. Flexibilisation of operations of coal-based thermal generating stations
2. CERC Connectivity and GNA (Third Amendment) Regulations, 2025 introducing solar-hour access
3. Renewable Energy Management Centres co-located with Load Despatch Centres
4. Establishment of State Electricity Boards (SEBs) under the Electricity (Supply) Act, 1948 to enable real-time forecasting of solar and wind generation

• A. 1 only
• B. 2 and 3 only
• C. 4 only
• D. 1 and 4 only

Q15. With reference to the Central Electricity Regulatory Commission (Connectivity and General Network Access to the Inter-State Transmission System) (Third Amendment) Regulations, 2025, consider the following statements: 1. The Third Amendment introduced distinct 'solar-hour' and 'non-solar-hour' connectivity access, a categorisation absent in the parent Connectivity Regulations. 2. Solar hours under the amended regime are declared on a weekly basis by the National Load Despatch Centre (NLDC) based on anticipated solar insolation. 3. The amendment restricts 'non-solar-hour access' exclusively to thermal generators, expressly excluding wind projects and standalone battery energy storage systems. Which of the statements given above is/are correct?

1. The Third Amendment introduced distinct 'solar-hour' and 'non-solar-hour' connectivity access, a categorisation absent in the parent Connectivity Regulations.
2. Solar hours under the amended regime are declared on a weekly basis by the National Load Despatch Centre (NLDC) based on anticipated solar insolation.
3. The amendment restricts 'non-solar-hour access' exclusively to thermal generators, expressly excluding wind projects and standalone battery energy storage systems.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q16. Under the SHANTI Act, 2025, what is the overall ceiling of liability per nuclear incident expressed in Special Drawing Rights (SDR)?

• A. 150 million SDR
• B. 200 million SDR
• C. 300 million SDR
• D. 500 million SDR

Q17. With reference to the India Semiconductor Mission 2.0 (ISM 2.0) announced under the Union Budget 2026-27 vis-à-vis the original India Semiconductor Mission, consider the following statements: 1. ISM 2.0 marks a decisive shift in focus from ecosystem creation to ecosystem consolidation and global integration. 2. Unlike the original Mission, ISM 2.0 explicitly brings manufacturing of semiconductor equipment and materials within its scope. 3. ISM 2.0 has entirely replaced the Rs.76,000 crore incentive framework of the original Semicon India Programme with a new outlay of Rs.1,000 crore. Which of the statements given above is/are correct?

1. ISM 2.0 marks a decisive shift in focus from ecosystem creation to ecosystem consolidation and global integration.
2. Unlike the original Mission, ISM 2.0 explicitly brings manufacturing of semiconductor equipment and materials within its scope.
3. ISM 2.0 has entirely replaced the Rs.76,000 crore incentive framework of the original Semicon India Programme with a new outlay of Rs.1,000 crore.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q18. One of India's first end-to-end Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facilities, set up by CG Power, was inaugurated in August 2025 at:

• A. Dholera, Gujarat
• B. Sanand, Gujarat
• C. Jagiroad, Assam
• D. Mohali, Punjab

Q19. As of December 2025, under the India Semiconductor Mission, semiconductor manufacturing/packaging projects have been approved across how many States in India?

• A. 4
• B. 5
• C. 6
• D. 8

Q20. The India Semiconductor Mission (ISM), which functions as the nodal agency for implementing the Semicon India Programme, is an independent business division under which one of the following Union Ministries / Departments?

• A. Ministry of Heavy Industries
• B. Department for Promotion of Industry and Internal Trade
• C. Ministry of Electronics and Information Technology
• D. Ministry of Commerce and Industry

Q21. In the context of the RBI's quarterly corporate performance study, the term 'listed private non-financial companies' most accurately refers to:

• A. All companies registered under the Companies Act, 2013, irrespective of stock-exchange listing, excluding those engaged in financial intermediation
• B. Companies whose equity is listed on a recognised stock exchange and which are non-government and not engaged in banking, non-banking finance or insurance activities
• C. Private limited companies (unlisted) in the manufacturing and services sectors that file quarterly results with the Ministry of Corporate Affairs
• D. All non-government companies, listed or unlisted, whose principal business is outside agriculture and the financial services sector

Q22. Within the Reserve Bank of India, which department is responsible for compiling and releasing the quarterly study on the performance of the listed private corporate sector?

• A. Department of Economic and Policy Research (DEPR)
• B. Department of Statistics and Information Management (DSIM)
• C. Monetary Policy Department (MPD)
• D. Department of Supervision (DoS)

Q23. With reference to the Reserve Bank of India's quarterly study on the performance of the private corporate sector for Q3:2025-26, consider the following statements: 1. The aggregate analysis is drawn from 3,188 listed non-government non-financial companies. 2. Manufacturing sector sales were analysed on the basis of 1,794 listed private companies. 3. The Q3:2025-26 aggregate sales growth ended a run of eleven consecutive quarters of single-digit growth. 4. The study explicitly includes public sector undertakings and scheduled commercial banks within its universe. Which of the statements given above is/are correct?

1. The aggregate analysis is drawn from 3,188 listed non-government non-financial companies.
2. Manufacturing sector sales were analysed on the basis of 1,794 listed private companies.
3. The Q3:2025-26 aggregate sales growth ended a run of eleven consecutive quarters of single-digit growth.
4. The study explicitly includes public sector undertakings and scheduled commercial banks within its universe.

• A. 1 and 2 only
• B. 1, 2 and 3 only
• C. 2, 3 and 4 only
• D. 1, 3 and 4 only

Q24. Among the broad segments of listed private non-financial companies covered in the RBI's quarterly corporate performance study for Q3:2025-26, which one recorded the highest year-on-year sales growth?

• A. Information Technology (IT) services companies
• B. Manufacturing companies
• C. Non-IT services companies
• D. Aggregate listed private non-financial companies (all segments combined)

Q25. Consider the following countries with respect to the U.S. Department of Commerce's February 2026 'Solar IV' preliminary countervailing duty action on crystalline silicon photovoltaic cells: 1. India 2. Indonesia 3. Laos 4. Vietnam Which of the above is/are NOT correctly identified as a country subjected to the said preliminary CVD action?

1. India
2. Indonesia
3. Laos
4. Vietnam

• A. 1 and 4 only
• B. 4 only
• C. 3 and 4 only
• D. 2 only

Q26. The February 2026 U.S. countervailing duty petition against Indian solar imports was filed by which lead industry coalition representing American solar manufacturers?

• A. Solar Energy Industries Association (SEIA)
• B. Alliance for American Solar Manufacturing and Trade (AASMT)
• C. American Clean Power Association
• D. Coalition for a Prosperous America

Q27. Which U.S. authority made the preliminary affirmative determination of a ~126% countervailing duty on Indian solar cell imports in February 2026?

• A. Office of the United States Trade Representative (USTR)
• B. U.S. International Trade Commission (ITC)
• C. U.S. Customs and Border Protection (CBP)
• D. U.S. Department of Commerce

Q28. In the preliminary countervailing duty determinations announced in February 2026 over alleged solar-sector subsidies, how many countries were simultaneously targeted by the U.S. Department of Commerce?

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

Q29. With reference to the U.S. Department of Commerce's February 2026 preliminary countervailing duty (CVD) action on Indian solar imports, consider the following Indian government programmes alleged by the petitioners to confer countervailable subsidies on solar exporters: 1. Advance Authorisation Programme 2. Duty Drawback Programme 3. Export Promotion of Capital Goods (EPCG) Scheme 4. PM-KUSUM Scheme Which of the above is/are correctly identified?

1. Advance Authorisation Programme
2. Duty Drawback Programme
3. Export Promotion of Capital Goods (EPCG) Scheme
4. PM-KUSUM Scheme

• A. 1 and 3 only
• B. 2 and 4 only
• C. 1, 2 and 3 only
• D. 1, 2, 3 and 4

Q30. Under Section 122 of the U.S. Trade Act of 1974, as invoked through Proclamation 11012 in February 2026, what is the maximum number of days for which the President may keep a temporary import surcharge in force without Congressional action?

• A. 90 days
• B. 120 days
• C. 150 days
• D. 180 days