Economy MCQs for UPSC Prelims — April 2026

Q1. Which one of the following is the first PM MITRA Park to be inaugurated by the Prime Minister?

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

Q2. With reference to the PM MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) Parks Scheme, consider the following States:

1. Odisha
2. Madhya Pradesh
3. Andhra Pradesh
4. Karnataka

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

Q3. With reference to the Production Linked Incentive (PLI) Scheme for Textiles, which one of the following is the nodal Ministry for its implementation?

• A. Ministry of Commerce and Industry
• B. Ministry of Textiles
• C. Department for Promotion of Industry and Internal Trade (DPIIT)
• D. Ministry of Micro, Small and Medium Enterprises

Q4. Under the India–New Zealand Free Trade Agreement signed in April 2026, New Zealand's commitment to facilitate USD 20 billion of investment into India over fifteen years has been explicitly aligned by the Government of India with which one of the following flagship initiatives?

• A. Digital India
• B. Skill India Mission
• C. Make in India
• D. Startup India

Q5. With reference to the investment and services architecture of the India–New Zealand Free Trade Agreement (2026), consider the following statements:

1. New Zealand has committed to facilitate USD 20 billion of investments into India over a fifteen-year period.
2. The Agreement contains a Rebalancing Clause that provides a framework to address any shortfall in the delivery of the investment commitment.
3. Under the Agreement, India has obtained a Temporary Employment Entry Visa pathway for Indian professionals with a quota of 10,000 visas at any given time.
4. New Zealand has offered services market access in 139 sectors and MFN treatment in 118 sectors.

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

Q6. With reference to the India–New Zealand Free Trade Agreement signed in April 2026, match List I with List II and select the correct answer using the code given below.

• A. A-4, B-1, C-3, D-2
• B. A-4, B-3, C-1, D-2
• C. A-2, B-1, C-3, D-4
• D. A-4, B-1, C-2, D-3

Q7. With reference to India's recent Free Trade Agreements concluded in the run-up to the India-New Zealand FTA (2026), consider the following statements: 1. Both the India-UAE CEPA and the India-Australia ECTA entered into force in the calendar year 2022. 2. The India-EFTA Trade and Economic Partnership Agreement was signed in 2024 but came into force only in 2025. 3. The India-UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2024, prior to the conclusion of India-New Zealand FTA negotiations. Which of the statements given above is/are correct?

1. Both the India-UAE CEPA and the India-Australia ECTA entered into force in the calendar year 2022.
2. The India-EFTA Trade and Economic Partnership Agreement was signed in 2024 but came into force only in 2025.
3. The India-UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2024, prior to the conclusion of India-New Zealand FTA negotiations.

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

Q8. Consider the following European countries: 1. Switzerland 2. Norway 3. Sweden 4. Liechtenstein Which of the above are NOT signatories of the India-EFTA Trade and Economic Partnership Agreement (TEPA), 2024?

1. Switzerland
2. Norway
3. Sweden
4. Liechtenstein

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

Q9. Which one of the following is the nodal Indian department/ministry that negotiates and operationalises India's recent Free Trade Agreements such as the India-UAE CEPA, India-Australia ECTA and India-New Zealand FTA?

• A. Department of Economic Affairs, Ministry of Finance
• B. Department of Commerce, Ministry of Commerce & Industry
• C. Department of Revenue (CBIC), Ministry of Finance
• D. Economic Diplomacy and States Division, Ministry of External Affairs

Q10. Which Union Ministry, as the sectoral implementation ministry, issued the official note describing the India–New Zealand Free Trade Agreement (2026) as a 'major boost' to the apparel, home textiles and handloom segments?

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

Q11. With reference to the India–New Zealand Free Trade Agreement (2026), which of the following product categories was NOT among those on which New Zealand levied Most-Favoured-Nation (MFN) duties (in the 5–10% range) prior to the Agreement?

1. Wool
2. Man-made fibres (MMF)
3. Carpets
4. Almonds

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

Q12. Among New Zealand's global imports in the textile value chain that India seeks to tap under the India–New Zealand FTA (2026), which one of the following categories represents the LARGEST import market by value?

• A. Apparel
• B. Textiles (yarns and fabrics)
• C. Made-ups
• D. Carpets

Q13. In the context of the India–New Zealand FTA (2026), the figure of '70.03% of tariff lines' refers to which one of the following?

• A. The share of India's tariff lines on which India has agreed to liberalise duties for imports from New Zealand
• B. The share of New Zealand's tariff lines opened duty-free for Indian exports from day one
• C. The share of bilateral merchandise trade value covered by the agreement
• D. The share of India's textile and apparel tariff lines liberalised under the FTA

Q14. Under the India–New Zealand Free Trade Agreement (2026), which of the following items are NOT placed in India's exclusion list of tariff lines? 1. Cheese 2. Sheep meat 3. Almonds 4. Wool

1. Cheese
2. Sheep meat
3. Almonds
4. Wool

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

Q15. Which one of the following is the nodal Union Ministry of the Government of India for negotiating and signing the India–New Zealand Free Trade Agreement (2026)?

• A. Ministry of External Affairs
• B. Ministry of Commerce and Industry
• C. Ministry of Textiles
• D. Ministry of Finance

Q16. With reference to the India–New Zealand Free Trade Agreement signed in 2026, which of the following statements are NOT correct?

1. The Agreement was signed by Commerce Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay.
2. Negotiations on the Agreement were formally launched in March 2024.
3. The signing ceremony was held at Bharat Mandapam in New Delhi.
4. Negotiations on the Agreement were concluded in December 2024.

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

Q17. With reference to the timeline of the India–New Zealand Free Trade Agreement (FTA), consider the following statements:

1. The negotiations for the FTA were launched on 16 March 2025 during the visit of New Zealand Prime Minister Christopher Luxon to India.
2. The negotiations were concluded on 22 December 2025 after five formal rounds of talks and several inter-sessions.
3. The FTA was signed on 27 April 2026 at Hyderabad House, New Delhi.

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

Q18. The Expert Group on Green National Accounts in India (2011), whose framework underpins the EnviStats India series, was constituted by which one of the following Union Ministries?

• A. Ministry of Environment, Forest and Climate Change
• B. Ministry of Finance (Department of Economic Affairs)
• C. Ministry of Statistics and Programme Implementation
• D. Ministry of Earth Sciences

Q19. The High-Level Expert Group set up to develop a framework for Green National Accounting in India was constituted in 2011 under the chairmanship of:

• A. Prof. Sir Partha Dasgupta
• B. Dr. Vijay Kelkar
• C. Dr. C. Rangarajan
• D. Prof. Suresh Tendulkar

Q20. In the context of the Expert Group Report on 'Green National Accounts in India - A Framework', the term 'Green National Accounts' is best described as accounting that:

• A. Measures the annual flow of national income after deducting the monetary cost of pollution abatement undertaken by industries
• B. Measures the wealth of the nation by tracking the accretion or depletion of its stock of capital, including natural capital
• C. Measures the share of renewable energy and forest produce in the Gross Value Added of the primary sector
• D. Measures household consumption expenditure on environmentally certified goods and ecosystem-friendly services

Q21. Match List I (Event in India's LPG / natural-gas policy) with List II (Date) and select the correct chronological pairing using the code given below:

• A. A-1, B-2, C-3, D-4
• B. A-2, B-1, C-4, D-3
• C. A-1, B-2, C-4, D-3
• D. A-2, B-1, C-3, D-4

Q22. With reference to the Government of India's measures (March–April 2026) to safeguard LPG supplies amid the West Asia situation, consider the following: 1. Diversion of propane, butane, propylene and butene streams from refineries and petrochemical units to the LPG pool. 2. Issuance of a Natural Gas Control Order under the Essential Commodities Act, 1955. 3. Sale of 5-kg Free Trade LPG (FTL) cylinders through OMC outlets. 4. Imposition of an export duty on domestically produced LPG to deter outflow. Which of the above is/are NOT among the measures actually taken?

1. Diversion of propane, butane, propylene and butene streams from refineries and petrochemical units to the LPG pool.
2. Issuance of a Natural Gas Control Order under the Essential Commodities Act, 1955.
3. Sale of 5-kg Free Trade LPG (FTL) cylinders through OMC outlets.
4. Imposition of an export duty on domestically produced LPG to deter outflow.

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

Q23. With reference to Liquefied Petroleum Gas (LPG) supplied for domestic cooking in India, which one of the following best describes its principal chemical composition?

• A. A mixture of methane and ethane
• B. A mixture mainly of propane and butane
• C. Predominantly methane with traces of carbon dioxide
• D. A mixture of butane and pentane in equal proportion

Q24. Consider the following sectors with reference to the Natural Gas (Supply Regulation) Order, 2026. Which of them are NOT included in the notified 'Priority Sectors' for natural gas allocation?

1. Domestic Piped Natural Gas (PNG) supply
2. Compressed Natural Gas (CNG) for transport
3. Thermal power generation plants
4. Sponge iron and steel manufacturing units

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

Q25. Match List I (Category of energy flow through the Strait of Hormuz) with List II (Approximate share, as cited in PIB/IMF/World Bank briefings of 2026) and select the correct answer using the code given below:

• A. A-1, B-2, C-3, D-4
• B. A-2, B-1, C-4, D-3
• C. A-1, B-3, C-2, D-4
• D. A-2, B-1, C-3, D-4

Q26. In the context of global energy trade, the term 'maritime chokepoint' — as applied to the Strait of Hormuz — most precisely refers to which one of the following?

• A. A narrow, strategically located shipping passage whose closure or disruption can constrict a disproportionate share of global energy or commodity flows
• B. The territorial sea belt of 12 nautical miles within which the coastal state exercises full sovereignty over foreign vessels
• C. An Exclusive Economic Zone where the coastal state holds exclusive rights to living and non-living resources up to 200 nautical miles
• D. A designated naval exclusion zone declared by a coastal state from which all foreign warships and merchant vessels are barred

Q27. Which one of the following is the flagship Government of India framework specifically aimed at proliferating public Wi-Fi hotspots through unlicensed Public Data Offices, and forms the principal focus of TRAI's April 2026 consultation paper?

• A. BharatNet
• B. Digital India Mission
• C. PM-WANI (Prime Minister's Wi-Fi Access Network Interface)
• D. Bharat 6G Vision

Q28. As per the data cited in the context of TRAI's April 2026 consultation paper on public Wi-Fi, approximately how many Public Data Offices (PDOs)/public Wi-Fi hotspots were operational under the PM-WANI framework as on 28 February 2026?

• A. About 1.05 lakh
• B. About 2.18 lakh
• C. About 4.09 lakh
• D. About 10 lakh

Q29. With reference to the India–New Zealand Free Trade Agreement signed on 27 April 2026, match List I with List II and select the correct answer using the code given below:

• A. A-2, B-1, C-3, D-4
• B. A-1, B-2, C-4, D-3
• C. A-2, B-1, C-4, D-3
• D. A-1, B-2, C-3, D-4

Q30. Which one of the following is the nodal department on the Indian side that has negotiated and operationalises the India–New Zealand Free Trade Agreement, 2026?

• A. Department of Economic Affairs, Ministry of Finance
• B. Directorate General of Foreign Trade under the Ministry of External Affairs
• C. Department of Commerce, Ministry of Commerce and Industry
• D. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry