Economy MCQs for UPSC Prelims — August 2026

Question 1

Following the widening of PM-KISAN's coverage, the primary criterion determining a farmer family's entitlement to benefits under the scheme is:

Accepted Answer

Cultivable landholding recorded in the name of the beneficiary family

Answer

Cultivation of a notified crop during the current kharif or rabi season

Answer

Membership of a registered farmer producer organisation in the district

Answer

Possession of a valid Kisan Credit Card issued by a scheduled commercial bank

Question 2

Consider the following statements regarding schemes for farmers other than PM-KISAN:
1. Under the Pradhan Mantri Fasal Bima Yojana, the premium payable by the farmer does not exceed 2 per cent of the sum insured for kharif crops and 1.5 per cent for rabi crops.
2. Under the Pradhan Mantri Kisan Maan-Dhan Yojana, the pension fund is managed by the National Bank for Agriculture and Rural Development, and the farmer's contribution is not matched by the Government of India.
3. The Pradhan Mantri Kisan Maan-Dhan Yojana admits farmers in the entry age group of 18 to 40 years and assures a minimum pension of ₹3,000 per month on attaining 60 years of age.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 3

Under the Pradhan Mantri Kisan Maan-Dhan Yojana, the 'enrolment-cum-auto-debit mandate' signed by a small or marginal farmer authorises which one of the following?

Accepted Answer

Debit of the farmer's monthly pension contribution from the account in which PM-KISAN benefits are credited

Answer

Debit of the crop insurance premium payable by the farmer from the account linked to the Kisan Credit Card

Answer

Debit of interest due on the short-term crop loan from the account maintained with the financing bank

Answer

Debit of amounts wrongly credited to the farmer from the account maintained for scheme benefits

Question 4

Where an instalment of PM-KISAN has been credited to persons later found to be ineligible, recovery of the amount so transferred is the responsibility of which one of the following?

Accepted Answer

The State Government or Union Territory administration concerned

Answer

The Comptroller and Auditor General of India, acting on its audit findings

Answer

The National Bank for Agriculture and Rural Development, exclusively

Answer

The Unique Identification Authority of India, through Aadhaar authentication records

Question 5

In official PM-KISAN releases such as that of the 23rd instalment, the expression 'instalment' denotes which one of the following?

Accepted Answer

The ₹2,000 payment released for one of the three four-monthly cycles in a year

Answer

The ₹6,000 annual entitlement credited at one time to an eligible farmer family

Answer

The ₹2,000 paid every month for the three months of a cropping season

Answer

The tranche of funds transferred to a State Government for onward payment to its farmers

Question 6

The 2026-31 continuation of PM-KISAN has been approved as a Central Sector Scheme. In the Union Government's scheme classification, this category is best described as one in which:

Accepted Answer

the entire expenditure is met by the Union Government and implementation is through central ministries or entities under their supervision

Answer

the expenditure is shared with the States in a predefined ratio, usually 60:40, with 90:10 for the North Eastern and Himalayan States

Answer

the Union Government fixes the norms while the entire expenditure is charged to the Consolidated Funds of the implementing States

Answer

the Union Government funds the recurring cost while the States meet the capital cost of assets created under the scheme

Question 7

The continuation of PM-KISAN approved by the Union Cabinet for the period 2026-27 to 2030-31 is to be operationalised by which one of the following?

Accepted Answer

Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare

Answer

Department of Rural Development, Ministry of Rural Development

Answer

Department of Fertilizers, Ministry of Chemicals and Fertilizers

Answer

Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution

Question 8

In PM-KISAN administration, the requirement of 'land seeding' refers to which one of the following?

Accepted Answer

Recording of the beneficiary's land records against the registration on the PM-KISAN portal

Answer

Certification of soil health parameters of the holding before input assistance is released

Answer

Demarcation of cultivable plots by revenue officials for settling crop insurance claims

Answer

Linking of the beneficiary's bank account with the Aadhaar number for payment

Question 9

Payment through Aadhaar-based transfer was made compulsory for the release of PM-KISAN benefits for the first time with which one of the following instalments?

Accepted Answer

The 13th instalment, released for the period December 2022-March 2023

Answer

The 12th instalment, released for the period August-November 2022

Answer

The 15th instalment, released for the period August-November 2023

Answer

The 19th instalment, released for the period December 2024-March 2025

Question 10

PM-KISAN was formally launched by the Prime Minister on 24 February 2019 at a public function held at which one of the following places?

Accepted Answer

Gorakhpur, Uttar Pradesh

Answer

Guwahati, Assam

Answer

Tarakeswar, Hooghly, West Bengal

Answer

Gandhinagar, Gujarat

Question 11

Consider the following statements comparing the funding arrangements of PM-KISAN and the Pradhan Mantri Fasal Bima Yojana (PMFBY):
1. The expenditure on PM-KISAN is borne entirely by the Union Government, whereas under PMFBY the premium liability remaining after the farmer's share is met jointly by the Centre and the State Governments.
2. Under PMFBY, the Centre-State sharing of the premium subsidy is 90:10 for North Eastern States, as against 50:50 for States outside the North Eastern and Himalayan categories.
3. Under PM-KISAN, general-category States meet 40 per cent of the income-support amount credited to farmers in their territory, the Centre meeting the balance.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 12

Consider the following statements about the reserve-accretion target of the Samudra Manthan scheme relative to India's assessed hydrocarbon reserves:
1. The targeted accretion of over 600 MMTOE is larger than India's total assessed recoverable crude oil reserves, placed at about 651.8 million metric tonnes.
2. MMTOE expresses oil and gas volumes on a common energy-equivalent basis, so the target covers accretion of natural gas as well as crude oil.
3. The target is to be realised over the scheme period running up to FY 2030-31.
Which of the statements given above is/are correct?

Accepted Answer

2 and 3 only

Answer

1 and 2 only

Answer

3 only

Answer

1, 2 and 3

Question 13

The bid rounds of the Open Acreage Licensing Programme under the HELP regime are launched and administered by which one of the following?

Accepted Answer

Directorate General of Hydrocarbons, the sector's upstream regulator

Answer

Petroleum and Natural Gas Regulatory Board, the sector's downstream regulator

Answer

Petroleum Planning and Analysis Cell, the ministry's data and analysis wing

Answer

Oil Industry Development Board, the sector's development-financing arm

Question 14

As reported by the Ministry of Petroleum and Natural Gas, how many exploration and production blocks have been awarded across the nine concluded bid rounds of the Open Acreage Licensing Programme?

Accepted Answer

172

Answer

134

Answer

210

Answer

191

Question 15

Consider the following statements comparing the offshore energy initiative announced from the Red Fort in 2025 with the scheme subsequently approved by the Union Cabinet:
1. The Red Fort announcement was styled the National Deep Water Exploration Mission, whereas the scheme cleared by the Cabinet is titled the National Offshore Exploration Scheme.
2. The Red Fort announcement placed the deepwater mission alongside expansions in solar, hydrogen, hydro and nuclear power as part of an energy-independence push.
3. Unlike the Red Fort announcement, which spoke of oil and gas reserves beneath the sea, the Cabinet-approved scheme confines its drilling support to shallow-water acreage.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

2 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 16

Consider the following statements comparing the funding components of the Samudra Manthan scheme:
1. The outlay for accelerated deepwater exploratory drilling is larger than the outlay for offshore data acquisition.
2. The outlay for common offshore infrastructure hubs is larger than the outlay for the oil and gas manufacturing and services zones.
3. Under the drilling component, government support is limited to 50% of the eligible drilling cost or ₹675 crore per well, whichever is higher.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 17

The ₹84,084-crore outlay cleared by the Union Cabinet in July 2026 for offshore hydrocarbon exploration up to FY 2030-31 is to be implemented by which one of the following?

Accepted Answer

Ministry of Petroleum and Natural Gas

Answer

Ministry of Earth Sciences

Answer

Ministry of Mines

Answer

Ministry of Ports, Shipping and Waterways

Question 18

The Samudra Manthan scheme approved by the Union Cabinet in July 2026 is structured around how many distinct ring-fenced funding components, each with a separately earmarked outlay?

Accepted Answer

Four

Answer

Two

Answer

Six

Answer

Eight

Question 19

Consider the following pairings relating to salmon aquaculture and the first tariff-free Scottish salmon consignment to India:
1. Bakkafrost Scotland — producer of the freshly farmed salmon in the consignment received at Bengaluru
2. Western Isles, Orkney and Shetland — locations of Scotland's marine salmon farms, along with the west coast of the mainland
3. Salmon — Scotland's largest food export, with overseas sales of about GBP 528 million in the first half of 2025
4. Norway — the world's third largest producer of farmed salmon, ranking just ahead of Scotland
Which of the above is/are NOT correctly matched?

Accepted Answer

4 only

Answer

1 and 3

Answer

2 only

Answer

3 and 4

Question 20

With reference to India–UK economic ties, consider the following:
1. Bilateral trade is of the order of USD 56–60 billion and both sides aim to double it by 2030.
2. The UK is India's fourth largest export market, with India's exports to it growing about 25 per cent in 2024-25 over the previous year.
3. The UK is India's sixth largest market for engineering exports, which grew about 11.7 per cent in 2024-25.
4. Under CETA the UK removes tariffs on all Indian exports without exception, covering the entire UK tariff schedule.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 2 only

Answer

2, 3 and 4

Answer

1 and 4 only

Question 21

Which one of India's trade agreements carries the largest headline investment commitment from its partner side, pegged at USD 100 billion?

Accepted Answer

The Trade and Economic Partnership Agreement with the European Free Trade Association

Answer

The Comprehensive Economic Partnership Agreement with the United Arab Emirates

Answer

The Comprehensive Economic and Trade Agreement with the United Kingdom

Answer

The Economic Cooperation and Trade Agreement with Australia

Question 22

Consider the following statements about India's trade agreements other than the CETA:
1. India's Trade and Economic Partnership Agreement with the EFTA bloc, signed in 2024, covers Switzerland, Norway, Iceland and Liechtenstein and is backed by an investment commitment of USD 100 billion.
2. The agreement concluded with Oman in December 2025 is styled a Comprehensive Economic and Trade Agreement, while the agreement announced with New Zealand in the same month is a Comprehensive Economic Partnership Agreement.
3. India's agreement with Australia concluded in 2022 is an Economic Cooperation and Trade Agreement, whereas its agreement with the UAE of the same year is a Comprehensive Economic Partnership Agreement.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only

Answer

1 only

Answer

1 and 2 only

Answer

1, 2 and 3

Question 23

Consider the following statements comparing the CETA entry-into-force consignments flagged off at different Indian locations:
1. The Chennai consignments comprised gold jewellery, automotive components and leather footwear, whereas the Surat consignments included studded gold jewellery, cotton embroidered fabrics and a 50-metric-tonne consignment of agricultural and processed food products.
2. India's first seafood consignments to the United Kingdom were flagged off at Thiruvananthapuram by the Marine Products Export Development Authority, a day ahead of the agreement's entry into force.
3. The Surat event was organised by the Gem & Jewellery Export Promotion Council along with DGFT Vadodara and EEPC India, while the Bengaluru event was organised by the office of the Additional Director General of Foreign Trade.
Which of the statements given above is/are correct?

Accepted Answer

2 and 3 only

Answer

1 and 2 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 24

Regarding the export flag-off events held on 15 July 2026, the day the India–UK CETA entered into force, consider the following:
1. The first commercial consignments flagged off from Chennai were valued at USD 4,46,046.
2. The Bengaluru flag-off was held at the Inland Container Depot, Whitefield, and was organised by the Office of the Additional Director General of Foreign Trade, Bengaluru.
3. In the Mumbai Metropolitan Region, consignments were flagged off at three locations, including the Bharat Diamond Bourse, Nhava Sheva and SEEPZ-SEZ.
4. Every consignment flagged off across the country that day consisted exclusively of marine products.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

2 and 4

Answer

1 and 3 only

Answer

1, 2, 3 and 4

Question 25

With reference to the India–UK Agreement on Social Security Contributions, consider the following:
1. It extends the exemption period from dual social security contributions from three years to five years.
2. It was signed on 10 February 2026 and takes effect alongside CETA on 15 July 2026.
3. Over 75,000 Indian professionals and more than 900 companies are expected to benefit from it.
4. On the Indian side it is administered by the Ministry of Commerce and Industry, which also issues Certificates of Coverage to deputed workers.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 3

Answer

1 and 4

Answer

2, 3 and 4

Answer

1 and 3 only

Question 26

Certificates of Coverage, which operationalise India's social security agreements for workers deputed abroad, are issued by which one of the following?

Accepted Answer

The Employees' Provident Fund Organisation under the Ministry of Labour and Employment

Answer

The Employees' State Insurance Corporation under the Ministry of Labour and Employment

Answer

The Protector General of Emigrants under the Ministry of External Affairs

Answer

The Directorate General of Foreign Trade under the Ministry of Commerce and Industry

Question 27

Under the India–UK CETA, India shielded a defined set of sensitive products by withholding tariff concessions on them. Which of the following is/are NOT part of that protected set?
1. Millets
2. Apples
3. Marine products
4. Vegetables
Which of the above is/are NOT correctly identified as protected by India?

Accepted Answer

3 only

Answer

1 and 2

Answer

2 and 4

Answer

1, 3 and 4

Question 28

The flag-off of India's first marine-product export consignments to the United Kingdom under the CETA was organised by which one of the following bodies?

Accepted Answer

The Marine Products Export Development Authority under the Ministry of Commerce and Industry

Answer

The National Fisheries Development Board under the Ministry of Fisheries, Animal Husbandry and Dairying

Answer

The Export Inspection Council of India under the Ministry of Commerce and Industry

Answer

The Agricultural and Processed Food Products Export Development Authority under the Ministry of Commerce and Industry

Question 29

Consider the following statements comparing the two sides' commitments under the India–UK CETA:
1. The UK grants duty-free access on nearly 99 per cent of India's export tariff lines covering almost the entire trade value, whereas India's reciprocal offer covers 89.5 per cent of its tariff lines.
2. The services package under the agreement spans 12 major service sectors and 137 sub-sectors.
3. India kept dairy products, cereals, millets and edible oils out of its tariff concessions to the UK, but granted duty-free access on apples.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 30

With reference to the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), consider the following:
1. Negotiations were concluded on 6 May 2025 after fourteen rounds of talks.
2. The agreement was signed in New Delhi on 24 July 2025 by the Union Minister of Commerce and Industry and the UK Secretary of State for Business and Trade.
3. The agreement entered into force on 15 July 2026.
4. India extended tariff concessions on about 99 per cent of its own tariff lines, covering nearly 100 per cent of UK exports to India.
Which of the above is/are correctly identified?

Accepted Answer

1 and 3

Answer

2 and 4

Answer

1, 3 and 4

Answer

2, 3 and 4

Economy MCQs for UPSC Prelims — August 2026

Q1. Following the widening of PM-KISAN's coverage, the primary criterion determining a farmer family's entitlement to benefits under the scheme is:

Q3. Under the Pradhan Mantri Kisan Maan-Dhan Yojana, the 'enrolment-cum-auto-debit mandate' signed by a small or marginal farmer authorises which one of the following?

Q4. Where an instalment of PM-KISAN has been credited to persons later found to be ineligible, recovery of the amount so transferred is the responsibility of which one of the following?

Q5. In official PM-KISAN releases such as that of the 23rd instalment, the expression 'instalment' denotes which one of the following?

Q6. The 2026-31 continuation of PM-KISAN has been approved as a Central Sector Scheme. In the Union Government's scheme classification, this category is best described as one in which:

Q7. The continuation of PM-KISAN approved by the Union Cabinet for the period 2026-27 to 2030-31 is to be operationalised by which one of the following?

Q8. In PM-KISAN administration, the requirement of 'land seeding' refers to which one of the following?

Q9. Payment through Aadhaar-based transfer was made compulsory for the release of PM-KISAN benefits for the first time with which one of the following instalments?

Q10. PM-KISAN was formally launched by the Prime Minister on 24 February 2019 at a public function held at which one of the following places?

Q13. The bid rounds of the Open Acreage Licensing Programme under the HELP regime are launched and administered by which one of the following?

Q14. As reported by the Ministry of Petroleum and Natural Gas, how many exploration and production blocks have been awarded across the nine concluded bid rounds of the Open Acreage Licensing Programme?

Q17. The ₹84,084-crore outlay cleared by the Union Cabinet in July 2026 for offshore hydrocarbon exploration up to FY 2030-31 is to be implemented by which one of the following?

Q18. The Samudra Manthan scheme approved by the Union Cabinet in July 2026 is structured around how many distinct ring-fenced funding components, each with a separately earmarked outlay?

Q21. Which one of India's trade agreements carries the largest headline investment commitment from its partner side, pegged at USD 100 billion?

Q26. Certificates of Coverage, which operationalise India's social security agreements for workers deputed abroad, are issued by which one of the following?

Q28. The flag-off of India's first marine-product export consignments to the United Kingdom under the CETA was organised by which one of the following bodies?