Economy MCQs for UPSC Prelims — February 2026

Q1. With reference to the investment and employment targets envisaged under the PM MITRA scheme, consider the following statements. Which of the above is/are NOT correct?

  1. Aggregate investment envisaged under the scheme is about ₹70,000 crore.
  2. Aggregate employment (direct and indirect) envisaged is about 20 lakh.
  3. Each park is expected to attract investment of about ₹10,000 crore.
  4. These targets are to be realised within the scheme window ending in 2024-25.
  • A. 4 only
  • B. 1 only
  • C. 3 and 4
  • D. 2 and 4

Q2. The Scheme for Integrated Textile Parks (SITP) and its larger-scale successor, the PM MITRA scheme, are both operationalised by which one of the following Union Ministries?

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

Q3. As of 2026, how many of the seven PM MITRA parks has the Prime Minister inaugurated as the country's first fully functional PM MITRA Park?

  • A. One
  • B. Two
  • C. Three
  • D. All seven

Q4. In the Special Purpose Vehicle (SPV) incorporated for each Greenfield PM MITRA Park, what stake is held by the State Government concerned?

  • A. 51%
  • B. 49%
  • C. 26%
  • D. 74%

Q5. With reference to the implementation architecture of the PM MITRA parks, consider the following statements. Which of the statements given above is/are correct?

  1. The Tamil Nadu and Madhya Pradesh parks are being implemented on a Government SPV-led model.
  2. The Karnataka, Uttar Pradesh and Gujarat parks are proposed on a PPP Master-Developer-led model.
  3. In every PM MITRA park, without exception, only bare developed land is offered and no plug-and-play facilities are provided.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. Among the seven sanctioned PM MITRA parks, which one recorded the first large-scale commercial allotment of industrial land to private investors — about 190 acres to 23 investors?

  • A. Warangal (Telangana)
  • B. Virudhunagar (Tamil Nadu)
  • C. Dhar (Madhya Pradesh)
  • D. Amravati (Maharashtra)

Q7. The PM MITRA Park at Kalaburagi is being set up in which one of the following States?

  • A. Karnataka
  • B. Maharashtra
  • C. Telangana
  • D. Andhra Pradesh

Q8. Consider the following attribute–value pairings relating to the PM MITRA scheme. Which of the above pairings is/are NOT correctly matched?

  1. Total scheme outlay — ₹4,445 crore
  2. Scheme period — up to 2027-28
  3. Number of parks sanctioned — seven
  4. Development Capital Support for a Greenfield park — up to ₹200 crore
  • A. 1 only
  • B. 4 only
  • C. 2 and 3
  • D. 3 and 4

Q9. With reference to the origin and financing of the PM MITRA scheme, consider the following statements. Which of the statements given above is/are correct?

  1. PM MITRA was announced in the Union Budget for 2021-22.
  2. The scheme carries a total outlay of ₹4,445 crore for the period 2021-22 to 2027-28.
  3. The entire scheme outlay is to be spent within a five-year window ending in 2025-26.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. The flagship textile-parks scheme 'PM MITRA' of the Government of India derives its name from an expression that expands fully to which one of the following?

  • A. Pradhan Mantri Mega Integrated Textile Region and Apparel Parks
  • B. Pradhan Mantri Modern Integrated Textile and Readymade Apparel Parks
  • C. Pradhan Mantri Mega Industrial Textile Resource and Apparel Parks
  • D. Pradhan Mantri Mega Integrated Textile Research and Apparel Parks

Q11. 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

Q12. 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

Q13. 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

Q14. 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

Q15. 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

Q16. 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

Q17. 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

Q18. 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

Q19. 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

Q20. 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

Q21. 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

Q22. 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

Q23. 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

Q24. 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

Q25. 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

Q26. 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

Q27. The monthly review of accounts up to January 2026 measures cumulative receipts and expenditure against the 'Revised Estimates (RE)'. In Union Budget documents, Revised Estimates refer to—

  • A. the revised assessment of receipts and expenditure for the current ongoing financial year
  • B. the original projections presented for the coming financial year
  • C. the final audited actuals for the previous financial year
  • D. provisional actuals compiled by the CAG after the year closes

Q28. Under the FRBM Act, 2003, the Central Government lays several fiscal policy statements before Parliament with the Budget. Which one of these sets out the three-year rolling targets for the prescribed fiscal indicators?

  • A. Medium-Term Fiscal Policy Statement
  • B. Fiscal Policy Strategy Statement
  • C. Macro-Economic Framework Statement
  • D. Medium-Term Expenditure Framework Statement

Q29. The Controller General of Accounts (CGA), which compiles the Union Government's accounts and the monthly review, was set up in which year and functions under which Department/Ministry?

  • A. 1976; Department of Expenditure, Ministry of Finance
  • B. 1971; Department of Economic Affairs, Ministry of Finance
  • C. 1950; Ministry of Home Affairs
  • D. 1976; Department of Revenue, Ministry of Finance

Q30. In the classification of Government expenditure used in the monthly accounts, expenditure on the 'Capital Account' is best described as expenditure which—

  • A. leads to the creation of assets or the reduction of liabilities
  • B. is incurred on the day-to-day running of government and creates no assets
  • C. consists mainly of interest payments, subsidies and salaries
  • D. is, by definition, financed entirely through market borrowings