Economy MCQs for UPSC Prelims — May 2026

Q1. Under the Pradhan Mantri MUDRA Yojana (PMMY), the loan category 'Tarun Plus' refers to which one of the following?

  • A. Collateral-free loans up to ₹50,000 for nano enterprises
  • B. Loans above ₹50,000 and up to ₹5 lakh for micro units expanding operations
  • C. Loans above ₹5 lakh and up to ₹10 lakh for established small businesses
  • D. Loans above ₹10 lakh and up to ₹20 lakh extended to entrepreneurs who have availed and successfully repaid earlier Tarun loans

Q2. With reference to the e-Shram portal, consider the following statements:

  1. It is administered by the Ministry of Labour and Employment, Government of India.
  2. Unorganised workers aged 16 to 59 years are eligible to register on it.
  3. Members of the Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC) are eligible to register on it.
  4. An Aadhaar-linked mobile number is required for self-registration on the portal.
  • A. 1, 2 and 4 only
  • B. 1 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q3. The first comprehensive survey of unincorporated non-agricultural enterprises in India after the Sixth Economic Census (2013) was conducted as a follow-up under which one of the following rounds of the National Sample Survey?

  • A. 67th Round (2010-11)
  • B. 73rd Round (2015-16)
  • C. 75th Round (2017-18)
  • D. 77th Round (2018-19)

Q4. With reference to the Annual Survey of Unincorporated Sector Enterprises (ASUSE), which of the following are NOT covered under its survey frame?

  1. Own Account Enterprises engaged in trade
  2. Unincorporated manufacturing establishments (excluding those registered as companies)
  3. Construction sector establishments
  4. Enterprises registered as companies under the Companies Act, 2013
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 3 and 4 only
  • D. 1, 3 and 4

Q5. With reference to the sectoral coverage of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 as compared to ASUSE 2022-23, consider the following statements: 1. Among the three broad activity categories covered by ASUSE, the 'Other Services' sector recorded the highest growth in the number of establishments in 2023-24. 2. ASUSE covers unincorporated non-agricultural establishments engaged in Manufacturing, Trade, Other Services as well as Construction. 3. In ASUSE 2023-24, retail trade accounted for the single largest share of establishments among the detailed activity categories. Which of the statements given above is/are correct?

  1. Among the three broad activity categories covered by ASUSE, the 'Other Services' sector recorded the highest growth in the number of establishments in 2023-24.
  2. ASUSE covers unincorporated non-agricultural establishments engaged in Manufacturing, Trade, Other Services as well as Construction.
  3. In ASUSE 2023-24, retail trade accounted for the single largest share of establishments among the detailed activity categories.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. With reference to the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Quarterly Bulletin of Unincorporated Sector Enterprises (QBUSE) that provide estimates for Manufacturing, Trade and Other Services, which one of the following is the implementing agency?

  • A. Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry
  • B. Labour Bureau, Ministry of Labour and Employment
  • C. National Statistics Office, Ministry of Statistics and Programme Implementation
  • D. Office of the Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises

Q7. According to the National Commission for Enterprises in the Unorganised Sector (NCEUS), the term 'informal sector' in India is defined as comprising which one of the following?

  • A. All unincorporated private enterprises owned by individuals or households, operated on a proprietary or partnership basis, with less than ten total workers
  • B. All enterprises that are not registered under the Factories Act, 1948, irrespective of the number of workers employed
  • C. All enterprises whose annual turnover is below the threshold prescribed for 'micro' enterprises under the MSMED Act, 2006
  • D. All proprietary and partnership enterprises engaged in agriculture and allied activities and employing only family labour

Q8. With reference to the concepts of 'informal sector', 'unorganised sector' and 'unincorporated sector' as used in official Indian statistics, consider the following statements:

  1. The National Commission for Enterprises in the Unorganised Sector (NCEUS) defined the informal sector to comprise all unincorporated private enterprises owned by individuals or households engaged in production or sale of goods and services on a proprietary or partnership basis with less than ten total workers.
  2. Every establishment covered under the Ministry of Statistics and Programme Implementation's Annual Survey of Unincorporated Sector Enterprises (ASUSE) is, by definition, also registered as a Micro, Small or Medium Enterprise on the Udyam portal.
  3. The unincorporated sector as defined by MoSPI excludes enterprises registered under the Companies Act, 1956/2013 as well as the Limited Liability Partnership Act, 2008.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. In the context of the Annual Survey of Unincorporated Sector Enterprises (ASUSE), the term 'proprietary establishment' is best described as:

  • A. An enterprise owned and operated by an individual or jointly by members of the same household, and not registered as a company under the Companies Act
  • B. A private limited company having fewer than fifty shareholders, incorporated under the Companies Act, 2013
  • C. An enterprise jointly owned by two or more partners and compulsorily registered under the Indian Partnership Act, 1932
  • D. A producer enterprise registered as a cooperative society under the relevant State Cooperative Societies Act

Q10. As per the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025, approximately what share of proprietary establishments in India's unincorporated non-agricultural sector were female-owned?

  • A. About 22.9%
  • B. About 26.2%
  • C. About 27.0%
  • D. About 33.3%

Q11. The Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE), released by the Ministry of Statistics and Programme Implementation, is best described as which one of the following?

  • A. The quarterly edition of the Annual Survey of Unincorporated Sector Enterprises (ASUSE), giving high-frequency estimates of non-agricultural informal establishments
  • B. A quarterly enterprise-level census of all MSMEs registered on the Udyam portal
  • C. A quarterly extension of the Periodic Labour Force Survey (PLFS) covering only the rural unorganised workforce
  • D. A quarterly index of industrial production restricted to unincorporated manufacturing units

Q12. With reference to the Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE) for January–March 2026, consider the following statements:

  1. The estimated number of unincorporated non-agricultural establishments crossed the 9 crore mark for the first time.
  2. The year-on-year growth rate of establishments in the rural sector exceeded that in the urban sector.
  3. Total employment in the unincorporated non-agricultural sector crossed the 15 crore mark for the first time.
  4. More than 90% of unincorporated establishments reported acceptance of cashless modes of transactions.
  • A. 1, 2 and 3 only
  • B. 2, 3 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q13. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE) are conducted and released by which one of the following authorities?

  • A. Central Statistics Office under NITI Aayog
  • B. National Statistical Office under the Ministry of Statistics and Programme Implementation
  • C. Office of the Development Commissioner (MSME) under the Ministry of Micro, Small and Medium Enterprises
  • D. Directorate General of Commercial Intelligence and Statistics under the Ministry of Commerce and Industry

Q14. With reference to the Annual Survey of Unincorporated Sector Enterprises (ASUSE), which of the following establishments are covered under its scope?

  1. A proprietorship engaged in manufacturing of handloom products
  2. A Limited Liability Partnership (LLP) operating a wholesale trading firm
  3. A Self-Help Group running a tailoring and repair service
  4. An unincorporated firm engaged in building construction
  • A. 1 and 3 only
  • B. 1, 2 and 3
  • C. 1, 3 and 4
  • D. 2 and 4 only

Q15. The Annual Survey of Unincorporated Sector Enterprises (ASUSE) and its quarterly bulletin (QBUSE) are conducted by which one of the following?

  • A. National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation
  • B. Office of the Development Commissioner under the Ministry of Micro, Small and Medium Enterprises
  • C. Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
  • D. Labour Bureau under the Ministry of Labour and Employment

Q16. Which one of the following is the first ever quarterly high-frequency official dataset released by India on unincorporated non-agricultural establishments?

  • A. Quarterly Bulletin of Unincorporated Sector Enterprises (QBUSE)
  • B. Quarterly Employment Survey (QES) of the Labour Bureau
  • C. Index of Industrial Production (IIP) — Use-based quarterly series
  • D. Quarterly Estimates of Gross Value Added (QGVA) of MSMEs

Q17. Under Section 53 of the Insolvency and Bankruptcy Code, 2016, which one of the following has the highest priority in the distribution of proceeds from the sale of liquidation assets of a corporate debtor?

  • A. Workmen's dues for the twenty-four months preceding the liquidation commencement date
  • B. Debts owed to a secured creditor who has relinquished its security interest
  • C. The insolvency resolution process costs and the liquidation costs
  • D. Financial debts owed to unsecured creditors

Q18. With reference to the order of priority for distribution of liquidation proceeds under Section 53 of the Insolvency and Bankruptcy Code, 2016, consider the following statements: 1. Workmen's dues for the period of twenty-four months preceding the liquidation commencement date rank equally with debts owed to a secured creditor who has relinquished security. 2. Dues owed to the Central Government and State Governments rank above financial debts owed to unsecured creditors. 3. The insolvency resolution process costs and the liquidation costs are to be paid in full ahead of all other claims. 4. Equity shareholders rank above preference shareholders in the distribution waterfall. Which of the statements given above are correct?

  1. Workmen's dues for the period of twenty-four months preceding the liquidation commencement date rank equally with debts owed to a secured creditor who has relinquished security.
  2. Dues owed to the Central Government and State Governments rank above financial debts owed to unsecured creditors.
  3. The insolvency resolution process costs and the liquidation costs are to be paid in full ahead of all other claims.
  4. Equity shareholders rank above preference shareholders in the distribution waterfall.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 3 and 4 only

Q19. With reference to the adjudicating and appellate framework under the Insolvency and Bankruptcy Code, 2016, consider the following statements: 1. The National Company Law Tribunal is the adjudicating authority for insolvency and liquidation of companies and limited liability partnerships, whereas the Debt Recovery Tribunal is the adjudicating authority for insolvency and bankruptcy of individuals and partnership firms. 2. Appeals from orders of the National Company Law Tribunal under the Code lie to the National Company Law Appellate Tribunal, whereas appeals from orders of the Debt Recovery Tribunal under the Code lie to the Debt Recovery Appellate Tribunal. 3. An appeal from an order of the National Company Law Appellate Tribunal under the Code lies to the High Court of the State in which the registered office of the corporate debtor is situated. Which of the statements given above is/are correct?

  1. The National Company Law Tribunal is the adjudicating authority for insolvency and liquidation of companies and limited liability partnerships, whereas the Debt Recovery Tribunal is the adjudicating authority for insolvency and bankruptcy of individuals and partnership firms.
  2. Appeals from orders of the National Company Law Tribunal under the Code lie to the National Company Law Appellate Tribunal, whereas appeals from orders of the Debt Recovery Tribunal under the Code lie to the Debt Recovery Appellate Tribunal.
  3. An appeal from an order of the National Company Law Appellate Tribunal under the Code lies to the High Court of the State in which the registered office of the corporate debtor is situated.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q20. According to the Reserve Bank of India's Report on Trends and Progress of Banking in India 2024-25, which one of the following was the largest channel of recovery of stressed assets by Scheduled Commercial Banks in 2024-25?

  • A. Lok Adalats
  • B. Debt Recovery Tribunals (DRTs)
  • C. SARFAESI Act, 2002
  • D. Insolvency and Bankruptcy Code, 2016

Q21. As per the data released by the Insolvency and Bankruptcy Board of India (IBBI), approximately how many Corporate Insolvency Resolution Processes (CIRPs) had been admitted under the Insolvency and Bankruptcy Code, 2016 as of end-October 2025?

  • A. About 4,500
  • B. About 6,200
  • C. About 8,700
  • D. About 12,500

Q22. Which one of the following is the nodal ministry of the Government of India for administering the Insolvency and Bankruptcy Code, including the cross-border and group insolvency provisions introduced by the 2026 Amendment Act?

  • A. Ministry of Finance, Department of Financial Services
  • B. Ministry of Corporate Affairs
  • C. Ministry of Law and Justice, Department of Legal Affairs
  • D. Ministry of External Affairs

Q23. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduces an enabling provision for cross-border insolvency that is principally modelled on which one of the following international instruments?

  • A. UNCITRAL Model Law on Cross-Border Insolvency, 1997
  • B. UNCITRAL Legislative Guide on Insolvency Law, 2004
  • C. EU Insolvency Regulation (Recast), 2015
  • D. Hague Convention on Choice of Court Agreements, 2005

Q24. Which one of the following is the principal adjudicating authority before which an application for initiating the Pre-packaged Insolvency Resolution Process in respect of a corporate MSME debtor is to be filed?

  • A. Debt Recovery Tribunal
  • B. National Company Law Tribunal
  • C. National Company Law Appellate Tribunal
  • D. Insolvency and Bankruptcy Board of India

Q25. The Pre-packaged Insolvency Resolution Process (PPIRP), available exclusively to corporate debtors classified as Micro, Small and Medium Enterprises, was introduced into the Insolvency and Bankruptcy Code, 2016 through which one of the following enactments?

  • A. The Insolvency and Bankruptcy Code (Amendment) Act, 2018
  • B. The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020
  • C. The Insolvency and Bankruptcy Code (Amendment) Act, 2021
  • D. The Insolvency and Bankruptcy Code (Amendment) Act, 2026

Q26. With reference to the origin of the Insolvency and Bankruptcy Code, 2016, consider the following statements: Which of the statements given above is/are correct?

  1. The Bankruptcy Law Reforms Committee (BLRC) that drafted the Code was constituted by the Ministry of Corporate Affairs in 2014.
  2. The BLRC was chaired by Dr. T. K. Viswanathan.
  3. The BLRC submitted its final report along with a draft Insolvency and Bankruptcy Bill in November 2015.
  4. Section 243 of the Code expressly repealed the Sick Industrial Companies (Special Provisions) Act, 1985.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 3 and 4 only
  • D. 1, 2 and 4

Q27. Under the Insolvency and Bankruptcy Code, 2016, which one of the following is the appellate authority that hears appeals against orders passed by the Insolvency and Bankruptcy Board of India?

  • A. National Company Law Tribunal (NCLT)
  • B. Debt Recovery Appellate Tribunal (DRAT)
  • C. National Company Law Appellate Tribunal (NCLAT)
  • D. Supreme Court of India

Q28. Under the Insolvency and Bankruptcy Code, 2016, which one of the following entities is statutorily tasked with collecting, authenticating, storing and providing access to financial information of debtors to facilitate insolvency resolution?

  • A. Insolvency Professional Agency
  • B. Information Utility
  • C. Insolvency and Bankruptcy Board of India
  • D. Resolution Professional

Q29. The Creditor-Initiated Insolvency Resolution Process (CIIRP), recently in the news, was introduced into the Indian insolvency framework by which one of the following enactments?

  • A. The Insolvency and Bankruptcy Code (Amendment) Act, 2021
  • B. The Companies (Amendment) Act, 2026
  • C. The Insolvency and Bankruptcy Code (Amendment) Act, 2026
  • D. The SARFAESI (Amendment) Act, 2026

Q30. Which one of the following bodies has been entrusted with framing the regulations operationalising the Creditor-Initiated Insolvency Resolution Process (CIIRP) introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2026?

  • A. Reserve Bank of India
  • B. Securities and Exchange Board of India
  • C. Insolvency and Bankruptcy Board of India
  • D. National Company Law Tribunal
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