Economy MCQs for UPSC Prelims — August 2026
Q1. With reference to India's standing among major economies in 2026 as assessed by international financial institutions, which one of the following statements is correct?
- A. India remains among the fastest-growing major economies, while China's growth for 2026 is projected to slow to about 4.6 per cent
- B. India is the only major economy anywhere in the world projected to record growth above 4 per cent during the calendar year 2026
- C. India's growth outlook for 2026 is assessed as entirely insulated from the effects of the Middle East conflict and higher global oil prices
- D. India's position as the fastest-growing major economy is now permanent, since every other large economy is projected to contract in 2026
Q2. Among the following sectors, which one recorded the highest year-on-year real growth in the April-June quarter of 2026-27?
- A. Manufacturing
- B. Financial, real estate and professional services
- C. Agriculture, livestock, forestry and fishing
- D. Trade, hotels, transport, communication and services related to broadcasting
Q3. In India's quarterly national accounts, GDP at market prices is arrived at from Gross Value Added at basic prices by making which one of the following adjustments?
- A. Adding taxes on products and deducting subsidies on products
- B. Adding net factor income from abroad, as compiled by the Reserve Bank of India
- C. Adding all taxes on production and on products and deducting consumption of fixed capital
- D. Adding customs and excise collections reported by the Central Board of Indirect Taxes and Customs and deducting the food subsidy
Q4. India adopted the present framework in which Gross Value Added at basic prices and GDP at market prices are presented as distinct headline aggregates when its sources and methods were aligned with which one of the following international standards?
- A. The System of National Accounts, 2008
- B. The System of National Accounts, 1993
- C. The IMF's Government Finance Statistics Manual, 2014
- D. The IMF's Balance of Payments and International Investment Position Manual, sixth edition
Q5. In India's national accounts calendar, the term 'First Revised Estimates' refers precisely to which one of the following?
- A. The first revision of the previous financial year's annual accounts, released at the end of February on a fuller set of annual data
- B. The first revision of the current financial year's quarterly accounts, released about two months after each quarter closes
- C. The first revision carried out whenever the base year is changed, applied to the accounts of the newly adopted base year
- D. The first revision of state-level accounts, released after the states' own budget actuals are received by the Centre
Q6. In the annual sequence of national accounts releases, the quarterly estimates for the fourth quarter (January-March) of a financial year first appear in which one of the following releases?
- A. The Provisional Estimates of annual GDP released at the end of May
- B. The Second Advance Estimates released at the end of February
- C. The First Revised Estimates released at the end of February
- D. The First Advance Estimates released in the first week of January
Q7. By approximately how many percentage points did the reported real GDP growth for the April-June quarter of 2026-27 exceed the real GDP growth rate that the Reserve Bank of India had projected for the financial year 2026-27 in its August 2026 monetary policy statement?
- A. About 0.6 percentage points
- B. About 0.9 percentage points
- C. About 1.1 percentage points
- D. About 1.4 percentage points
Q8. The estimate of 7.8 per cent real GDP growth for the April-June quarter of 2026-27, released on 31 August 2026, was compiled and put out by which one of the following?
- A. The National Statistics Office under the Ministry of Statistics and Programme Implementation
- B. The Economic Division of the Department of Economic Affairs, Ministry of Finance
- C. The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
- D. The Department of Economic and Policy Research of the Reserve Bank of India
Q9. Consider the following statements regarding the new series of national accounts estimates with base year 2022-23:
1. It replaced the series that had 2011-12 as its base year.
2. The 2011-12 base year series that it replaced had itself been released in January 2015, superseding the 2004-05 series.
3. GDP for the base year 2022-23 has been estimated at about Rs 261 lakh crore.
4. The back series consistent with the new base year was released together with the new series in February 2026.
Which of the above is/are NOT correct?
- It replaced the series that had 2011-12 as its base year.
- The 2011-12 base year series that it replaced had itself been released in January 2015, superseding the 2004-05 series.
- GDP for the base year 2022-23 has been estimated at about Rs 261 lakh crore.
- The back series consistent with the new base year was released together with the new series in February 2026.
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 4 only
Q10. Which one of the following was the principal consideration cited by the Ministry of Statistics and Programme Implementation for selecting 2022-23 as the base year of the new national accounts series?
- A. It was a recent normal year after the pandemic, with robust and comprehensive data available across sectors of the economy
- B. It was the first year in which every sector of the economy was entirely covered by GST-based administrative records, eliminating all survey-based estimation
- C. It was the year in which the System of National Accounts, 2008 was universally implemented by all United Nations member states without exception
- D. It was the only year in the preceding decade in which nominal and real growth rates converged exactly, making deflators unnecessary
Q11. The methodology used for compiling India's national accounts macro-aggregates is deliberated in detail by which one of the following, whose membership is drawn from academia, the Indian Statistical Institute, the Reserve Bank of India and central ministries?
- A. The Advisory Committee on National Accounts Statistics
- B. The Standing Committee on Economic Statistics
- C. The Technical Advisory Committee on Statistics of Prices and Cost of Living
- D. The National Sample Survey Steering Committee on Economic Surveys
Q12. Under the release practice followed by the National Statistics Office for national accounts, how many quarterly GDP press notes pertaining to a given financial year are issued before that financial year's Provisional Estimates of annual GDP are put out?
- A. Two
- B. Three
- C. Four
- D. Five
Q13. The United Nations Statistical Commission recommends that countries re-base their national accounts series at least once in how many years?
- A. Three years
- B. Ten years
- C. Five years
- D. Fifteen years
Q14. Consider the following statements about the documents brought out by MoSPI in connection with the new National Accounts series:
1. The document titled 'Understanding the New Series of GDP' is an FAQ addressed to general users, whereas the technical proposals on methodology were placed before users through discussion papers.
2. A separate discussion paper dealt with changes in the methodology of the quarterly GDP series and sub-national accounts, and was placed in the public domain only after the new series estimates were published.
3. Besides the discussion papers, the report of the Sub-Committee on Methodological Improvements in the 2022-23 series of National Accounts was also released.
Which of the statements given above is/are correct?
- The document titled 'Understanding the New Series of GDP' is an FAQ addressed to general users, whereas the technical proposals on methodology were placed before users through discussion papers.
- A separate discussion paper dealt with changes in the methodology of the quarterly GDP series and sub-national accounts, and was placed in the public domain only after the new series estimates were published.
- Besides the discussion papers, the report of the Sub-Committee on Methodological Improvements in the 2022-23 series of National Accounts was also released.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 3 only
Q15. In compiling the quarterly estimates of the new series, the earlier pro-rata approach has been replaced by the Proportional Denton method. This method is used to:
- A. convert current price estimates into constant price estimates by applying sector-specific price deflators
- B. distribute annual totals over the four quarters while preserving the movement of the quarterly indicator, avoiding step-jumps at year ends
- C. link the estimates of a new base year series to the preceding series at a disaggregated level to build a continuous long series
- D. remove seasonal and calendar-day effects from the quarterly series before the estimates are published
Q16. Consider the following statements relating to Gross Value Added and Gross Domestic Product in India's national accounts:
1. GVA at basic prices includes production taxes net of production subsidies, such as land revenue and stamps and registration fees on the one hand and subsidies to the Railways on the other.
2. GDP at market prices is obtained by adding subsidies on products to, and deducting taxes on products from, GVA at basic prices.
3. Compensation of employees and consumption of fixed capital are components of GVA when it is compiled through the income approach.
Which of the statements given above is/are correct?
- GVA at basic prices includes production taxes net of production subsidies, such as land revenue and stamps and registration fees on the one hand and subsidies to the Railways on the other.
- GDP at market prices is obtained by adding subsidies on products to, and deducting taxes on products from, GVA at basic prices.
- Compensation of employees and consumption of fixed capital are components of GVA when it is compiled through the income approach.
- A. 1 and 3 only
- B. 2 only
- C. 1 and 2 only
- D. 1, 2 and 3
Q17. Consider the following statements regarding the sequence of documents and releases connected with the 2022-23 base year revision:
1. The first discussion paper, released in November 2025, dealt with the expenditure approach, while the second discussion paper dealt with the production/income approach.
2. The comprehensive 'Source and Methods' publication is scheduled for release by August 2026, whereas the back series data is expected by December 2026.
3. The methodology for the back series is to be finalised in consultation with an advisory committee constituted to advise the Ministry on methodological improvements and incorporation of new data sources.
Which of the statements given above is/are correct?
- The first discussion paper, released in November 2025, dealt with the expenditure approach, while the second discussion paper dealt with the production/income approach.
- The comprehensive 'Source and Methods' publication is scheduled for release by August 2026, whereas the back series data is expected by December 2026.
- The methodology for the back series is to be finalised in consultation with an advisory committee constituted to advise the Ministry on methodological improvements and incorporation of new data sources.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q18. In the roadmap announced for the new National Accounts series, the 'back series' expected by December 2026 will consist of:
- A. provisional annual figures for the four years already covered, to be firmed up in each subsequent annual revision cycle
- B. the complete set of quarterly figures for every quarter since 1950-51, compiled exclusively at constant prices
- C. figures for the years preceding the new base year, recompiled on the revised methodology and linked to the earlier series at a disaggregated level
- D. figures for all past years compiled entirely afresh from primary surveys, without any linking to the superseded series
Q19. The National Statistical Office, which constitutes the Statistics Wing of the Ministry of Statistics and Programme Implementation, is organised into how many divisions?
- A. Five
- B. Four
- C. Six
- D. Three
Q20. Which one of the following was the base year of the very first series of National Accounts Statistics compiled in India?
- A. 1950-51
- B. 1948-49
- C. 1960-61
- D. 1970-71
Q21. Taking the first series of National Accounts Statistics of India as the starting point, how many times has the base year of the national accounts been revised, up to and including the series with base year 2022-23?
- A. Eight times
- B. Six times
- C. Nine times
- D. Seven times
Q22. Consider the following statements comparing the new National Accounts series with the series it has replaced:
1. The series with base year 2011-12 was introduced in January 2015, whereas the series with base year 2022-23 was introduced in February 2026.
2. Whereas the revision immediately preceding the present one shifted the base from 2004-05, the present revision has shifted the base from 1999-2000.
3. For household consumption expenditure, the new series adopts the COICOP 2018 classification standard, which was not used in the series it replaced.
Which of the statements given above is/are correct?
- The series with base year 2011-12 was introduced in January 2015, whereas the series with base year 2022-23 was introduced in February 2026.
- Whereas the revision immediately preceding the present one shifted the base from 2004-05, the present revision has shifted the base from 1999-2000.
- For household consumption expenditure, the new series adopts the COICOP 2018 classification standard, which was not used in the series it replaced.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q23. India's crude oil imports from Russia touched an all-time monthly high in June 2026. That record level was of the order of:
- A. 1.5 million barrels per day, amounting to roughly a fifth of India's crude imports that month
- B. 2.0 million barrels per day, amounting to roughly a third of India's crude imports that month
- C. 2.7 million barrels per day, amounting to close to half of India's crude imports that month
- D. 3.4 million barrels per day, amounting to roughly two-thirds of India's crude imports that month
Q24. Consider the following countries:
1. Russia
2. Saudi Arabia
3. Venezuela
4. Nigeria
Which of the above is/are correctly identified as being among India's top five sources of crude oil imports in April 2026?
- Russia
- Saudi Arabia
- Venezuela
- Nigeria
- A. 1 and 2 only
- B. 1, 2 and 3
- C. 2, 3 and 4
- D. 1 and 4 only
Q25. India's agreements of the CECA/CEPA type, such as those with Singapore, the UAE and Oman, are distinguished from a conventional Free Trade Agreement principally in that they —
- A. confine liberalisation to trade in goods, leaving services and investment to be taken up in separately negotiated instruments later
- B. combine goods, services and investment in a single package, together with disciplines in areas such as intellectual property, competition and government procurement
- C. grant a margin of preference on a limited list of tariff lines instead of eliminating duties on substantially all trade between the parties
- D. establish a common external tariff towards non-members along with free movement of capital and labour among the parties
Q26. Consider the following statements:
1. Khanij Bidesh India Limited (KABIL) is a joint venture of NALCO, Hindustan Copper Limited and Mineral Exploration Corporation Limited, mandated to identify, explore and acquire critical mineral assets overseas.
2. The proposed India–Chile CEPA envisages a dedicated chapter on critical and strategic minerals, whereas the existing India–Chile Preferential Trade Agreement operates only through preferences on a selected list of tariff lines.
3. The National Critical Mineral Mission is confined to domestic exploration and processing, and excludes acquisition of critical mineral assets abroad, which is left entirely to bilateral agreements.
Which of the statements given above is/are correct?
- Khanij Bidesh India Limited (KABIL) is a joint venture of NALCO, Hindustan Copper Limited and Mineral Exploration Corporation Limited, mandated to identify, explore and acquire critical mineral assets overseas.
- The proposed India–Chile CEPA envisages a dedicated chapter on critical and strategic minerals, whereas the existing India–Chile Preferential Trade Agreement operates only through preferences on a selected list of tariff lines.
- The National Critical Mineral Mission is confined to domestic exploration and processing, and excludes acquisition of critical mineral assets abroad, which is left entirely to bilateral agreements.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q27. Which one of the following correctly describes the sanction of India's National Critical Mineral Mission?
- A. Approved by the Cabinet Committee on Economic Affairs in 2023, with an outlay of ₹16,300 crore over five years, and administered by the Ministry of Mines
- B. Approved by the Union Cabinet in January 2025, with an outlay of ₹16,300 crore over seven years, and administered by the Ministry of Coal
- C. Approved by the Union Cabinet in January 2025, with an outlay of ₹16,300 crore over seven years, and administered by the Ministry of Mines
- D. Approved by NITI Aayog in January 2025, with an outlay of ₹18,000 crore over seven years, and administered by the Ministry of Heavy Industries
Q28. According to the Department of Commerce's 2026 review of India's trade partnerships, India's network of free trade agreements extends to how many partner countries?
Q29. Among the following trade agreements concluded by India, which one entered into force the earliest?
- A. India–Oman Comprehensive Economic Partnership Agreement
- B. India–EFTA Trade and Economic Partnership Agreement
- C. India–Australia Economic Cooperation and Trade Agreement
- D. India–United Arab Emirates Comprehensive Economic Partnership Agreement
Q30. In the context of the India–Chile trade talks, the signing of the 'Terms of Reference' by the two sides denotes which one of the following?
- A. A binding schedule of tariff concessions and rules of origin that the two sides have already settled and will notify on entry into force
- B. An interim arrangement extending preferences on a limited basket of goods until the wider agreement is concluded and ratified
- C. A mutually agreed document fixing the scope, structure and chapters that the negotiations will cover, whose signature formally launches the rounds
- D. The instrument by which the two governments complete domestic ratification and bring the negotiated agreement into legal effect