Economy MCQs for UPSC Prelims — July 2026

Q1. With reference to Coal India Limited's production performance in FY26 compared with FY25, consider the following statements: 1. CIL's output during April-November FY26 fell about 3.7% to 453.5 MT, from 471 MT in the same period of FY25. 2. This was the first decline for a comparable period in at least six years. 3. For the full fiscal year, CIL's FY26 production of 768.1 MT was higher than its FY25 production of 781.1 MT. Which of the statements given above is/are correct?

1. CIL's output during April-November FY26 fell about 3.7% to 453.5 MT, from 471 MT in the same period of FY25.
2. This was the first decline for a comparable period in at least six years.
3. For the full fiscal year, CIL's FY26 production of 768.1 MT was higher than its FY25 production of 781.1 MT.

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

Q2. In India, the statutory classification and grading of coal (including the Gross Calorific Value-based grades of non-coking coal) is regulated by which one of the following?

• A. The Coal Controller's Organisation, under the Ministry of Coal
• B. The Geological Survey of India, under the Ministry of Mines
• C. The Central Electricity Authority, under the Ministry of Power
• D. The Bureau of Indian Standards, under the Ministry of Consumer Affairs

Q3. In the context of the government's push to reduce thermal coal imports for power plants, the term 'blending' refers to which one of the following?

• A. Mixing domestic coal with imported coal to be fired together in power-plant boilers
• B. The exclusive firing of washed coal in every thermal power station
• C. Combining coal produced by different CIL subsidiaries before dispatch
• D. Gasifying coal completely before its combustion in a boiler

Q4. With reference to the Government of India's 2026 strategy to reduce coal imports, consider the following statements: 1. The target is to cut thermal coal imports for power plants by at least 30% during 2026. 2. Power plants have been asked to increase blending, replacing at least 20% of imported coal with domestic coal. 3. The strategy chiefly targets coking coal used by steel plants, which is to be fully substituted by domestic coal. 4. India's power plants used nearly 50 million tonnes of imported coal in 2025. Which of the above is/are NOT correct?

1. The target is to cut thermal coal imports for power plants by at least 30% during 2026.
2. Power plants have been asked to increase blending, replacing at least 20% of imported coal with domestic coal.
3. The strategy chiefly targets coking coal used by steel plants, which is to be fully substituted by domestic coal.
4. India's power plants used nearly 50 million tonnes of imported coal in 2025.

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

Q5. Coal India Limited (CIL), the country's principal domestic coal producer, functions as a Maharatna public sector undertaking under which one of the following Union ministries?

• A. Ministry of Coal
• B. Ministry of Mines
• C. Ministry of Power
• D. Ministry of Heavy Industries

Q6. Which one of the following countries is the single largest source of India's coking (metallurgical) coal imports?

• A. Australia
• B. Indonesia
• C. South Africa
• D. Russia

Q7. With reference to India's position in global coal trade, which one of the following statements is correct?

• A. India is the world's second-largest coal importer, after China
• B. India is the world's largest coal importer, ahead of China
• C. India imports coal only for its power sector and never for the steel sector
• D. India meets its entire coking coal requirement from domestic production

Q8. The monthly coal import statistics that showed total imports declining to 21.13 million tonnes in April 2026 are compiled and released by which one of the following?

• A. Ministry of Coal
• B. Ministry of Power
• C. Ministry of Mines
• D. Ministry of Commerce and Industry

Q9. In the reporting of India's April 2026 coal import figures, the term 'Imported Coal-Based (ICB) plants' is best described as which one of the following?

• A. Thermal power plants specifically designed to run on higher-calorific-value imported coal, which cannot easily switch to domestic coal
• B. Domestic plants mandated to blend exactly 30% imported coal with indigenous coal
• C. Integrated steel plants that use imported coking coal for metallurgical processes
• D. Coastal ports designated exclusively for handling imported coal cargoes

Q10. In the first budget of the BJP government in West Bengal (June 2026), the government announced a drive to fill how many vacant State government posts?

• A. 50,000
• B. 75,000
• C. 1,00,000
• D. 1,50,000

Q11. The official annual assessment that expenditure on social services (Centre and States combined) has been on a rising trend as a proportion of GDP is contained in which one of the following documents?

• A. The Economic Survey
• B. The Medium Term Fiscal Policy Statement
• C. The Finance Commission Report
• D. The RBI Annual Report

Q12. In the Union Budget documents, the 'Revised Estimate' (for example, the 2025-26 Revised Estimate fiscal deficit of 4.4% of GDP) is best defined as:

• A. a revised assessment of receipts and expenditure for the ongoing financial year, made partway through the year
• B. the estimate of receipts and expenditure presented at the beginning of the financial year
• C. the audited final accounts of a completed financial year
• D. the projection of fiscal indicators for the two subsequent financial years

Q13. In the horizontal devolution formula recommended by the Sixteenth Finance Commission (2026-31), which one of the following criteria carries the highest weight?

• A. Population (2011)
• B. Income Distance
• C. Contribution to GDP
• D. Demographic Performance

Q14. Under the FRBM (Amendment) Act, 2018, the Central Government is required to present rolling projections for the two years following the current financial year in respect of how many fiscal indicators?

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

Q15. With reference to the trend in gross GST collections over recent years, which of the following statements is/are NOT correct?

1. The average monthly gross GST collection in FY2020-21 was about ₹95,000 crore.
2. Total gross GST collection in FY2024-25 was about ₹22.08 lakh crore.
3. The average monthly collection in FY2024-25 was about ₹1.84 lakh crore.
4. Gross GST collections in FY2024-25 declined relative to FY2023-24.

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

Q16. In the GST Council constituted under Article 279A, the vote of the Central Government carries a weightage of:

• A. One-half of the total votes cast
• B. One-third of the total votes cast
• C. One-fourth of the total votes cast
• D. Two-thirds of the total votes cast

Q17. Which one of the following is the nodal agency that administers and collects Central GST and Integrated GST (including IGST on imports at ports of entry)?

• A. Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, Ministry of Finance
• B. Central Board of Direct Taxes (CBDT)
• C. The GST Council Secretariat
• D. NITI Aayog

Q18. The Goods and Services Tax in India has a four-tier rate structure. How many principal ad valorem rate slabs (excluding the compensation cess) does it comprise?

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

Q19. Which one of the following best describes the concept of 'imported inflation'?

• A. A rise in the domestic price level caused by higher prices of imported goods and inputs (such as crude oil), often aggravated by currency depreciation
• B. Inflation arising when aggregate domestic demand outstrips domestic productive capacity
• C. A rise in prices caused primarily by an increase in domestic indirect tax rates such as GST
• D. Inflation resulting from domestic wage growth exceeding productivity growth

Q20. In June 2026, which single component of GST recorded the sharpest year-on-year growth, making it the principal driver of the headline surge?

• A. Central GST (CGST) from domestic transactions
• B. State GST (SGST) from domestic transactions
• C. Integrated GST on imports (import IGST)
• D. Domestic Integrated GST (IGST)

Q21. What was India's gross GST collection (in ₹ lakh crore) for June 2026, as released by the Ministry of Finance?

• A. ₹1.74 lakh crore
• B. ₹1.85 lakh crore
• C. ₹1.95 lakh crore
• D. ₹2.10 lakh crore

Q22. With reference to the institutional pillars of the Insolvency and Bankruptcy Code, 2016, consider the following: 1. Insolvency Professionals 2. Information Utilities 3. Insolvency and Bankruptcy Board of India (IBBI) 4. Securities and Exchange Board of India (SEBI) Which of the above is/are correctly identified as pillars of the IBC's institutional infrastructure?

1. Insolvency Professionals
2. Information Utilities
3. Insolvency and Bankruptcy Board of India (IBBI)
4. Securities and Exchange Board of India (SEBI)

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

Q23. In the context of the National Green Hydrogen Mission, the acronym 'SIGHT' stands for which one of the following?

• A. Strategic Interventions for Green Hydrogen Transition
• B. Sustainable Incentives for Green Hydrogen Technology
• C. Scheme for Indigenous Green Hydrogen Trade
• D. Strategic Investment in Green Hydrogen and Thermal energy

Q24. Among the components of the National Green Hydrogen Mission, which one has been allocated the largest single share of the ₹19,744 crore total outlay?

• A. SIGHT programme (Strategic Interventions for Green Hydrogen Transition)
• B. Pilot projects
• C. Research & Development
• D. Other Mission components

Q25. The rounds of commercial coal mine auctions, conducted under liberalised ease-of-doing-business terms such as revenue-sharing based on the National Coal Index, are carried out by which of the following ministries?

• A. Ministry of Mines
• B. Ministry of Coal
• C. Ministry of Power
• D. Ministry of Commerce and Industry

Q26. With reference to the adoption of Insurance Surety Bonds for NHAI contracts as reported around the 2025 milestone, consider the following: 1. The cumulative value of insurance surety bonds issued for NHAI contracts crossed Rs 10,000 crore. 2. NHAI has accepted insurance surety bonds both as bid security and as performance security. 3. Around twelve insurance companies had issued surety bonds for NHAI contracts. 4. NHAI accepted its very first insurance surety bond only in the financial year 2025-26. Which of the above is/are NOT correct?

1. The cumulative value of insurance surety bonds issued for NHAI contracts crossed Rs 10,000 crore.
2. NHAI has accepted insurance surety bonds both as bid security and as performance security.
3. Around twelve insurance companies had issued surety bonds for NHAI contracts.
4. NHAI accepted its very first insurance surety bond only in the financial year 2025-26.

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

Q27. Which one of the following government authorities is regarded as the leading/first major adopter of Insurance Surety Bonds in lieu of bank guarantees for its infrastructure contracts in India?

• A. Airports Authority of India
• B. National Highways Authority of India (NHAI)
• C. Power Grid Corporation of India Limited
• D. National High Speed Rail Corporation Limited

Q28. With reference to the IRDAI (Surety Insurance Contracts) Guidelines, 2022, consider the following statements: 1. Only general insurers registered with the IRDAI may issue surety insurance contracts. 2. Surety insurance contracts may be issued even where the underlying assets or commitments are located outside India. 3. The premium a general insurer underwrites from surety business in a financial year is capped, subject to a monetary ceiling. 4. Financial guarantees such as loan-repayment guarantees fall squarely within the scope of these surety insurance contracts. Which of the statements given above are correctly identified?

1. Only general insurers registered with the IRDAI may issue surety insurance contracts.
2. Surety insurance contracts may be issued even where the underlying assets or commitments are located outside India.
3. The premium a general insurer underwrites from surety business in a financial year is capped, subject to a monetary ceiling.
4. Financial guarantees such as loan-repayment guarantees fall squarely within the scope of these surety insurance contracts.

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

Q29. Which one of the following is the primary regulatory authority that licenses and governs the issuance of Insurance Surety Bonds in India?

• A. Reserve Bank of India (RBI)
• B. Insurance Regulatory and Development Authority of India (IRDAI)
• C. Securities and Exchange Board of India (SEBI)
• D. Pension Fund Regulatory and Development Authority (PFRDA)

Q30. Following the notification of the Coal Blocks Allocation (Amendment) Rules, 2026, how many distinct instruments can an allottee of a coal block under the MMDR Act, 1957 now use to satisfy the performance security requirement?

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