Indian Economy: UPSC Previous Year Questions (Prelims)
392 previous year UPSC Prelims Indian Economy questions are on this page, from 1996 to 2025, in 14 chapters. Banking Sector in India is the largest, followed by External Sector, Industry, Agriculture and Human Development. Recent papers favour statement-based questions on institutions, schemes and money and banking concepts. Filter by chapter to revise one area, or by year to see how a single paper tested the economy.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 391–392 of 392 questions
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UPSC 1996Indian Economy · Important Concepts in Economy
Q391. Hawala transactions relate to payments:
Explanation
Hawala transactions refer to an informal and unof-ficial system of transferring money across borders without using formal banking channels or regulatory oversight. It involves a network of brokers (hawaladars) who facilitate the transfer of money between individuals or entities in different countries. For example, if Person A in Country X wants to send money to Person B in Country Y, they give the money to a hawaladar in Country X. The hawaladar then instructs their coun-terpart in Country Y to deliver the equivalent amount to Person B. No physical movement of money occurs across borders, and the transaction is based on trust and informal records. Options (b), (c) and (d) are incorrect:
Unauthorized stock transfers without using stock exchanges fall under insider trading or securities fraud and not Hawala. Received as commission for services rendered to overseas investors/buyers/sellers in assisting them to get over the red tape and/or in getting preferential treatment" refers to bribery or facilitation payments to bypass bureaucratic hurdles, which is a corruption issue. While Hawala channels can be used for illegal election funding, the term itself does not directly refer to political payments.
UPSC 1996Indian Economy · Important Concepts in Economy
Q392. As per the 1991 Census, the average size of households in terms of number of persons per household in respect of the given states follows the sequence (highest first, lowest last)
Explanation
The average household size refers to the average number of people living in a household. It is calculated using the following formula:
Average Household Size=Total Population/Total Number of Households. For example, if a country has a population of 100 million and 20 million households, the average household size would be: 100,000,000/20,000,000=5 persons per household. Based on the 1991 Census data, the average household sizes (number of persons per household) for the given states are as follows:
1. Uttar Pradesh: 6.2 persons per household
2. West Bengal: 5.4 persons per household
3. Gujarat: 5.5 persons per household
4. Kerala: 5.3 persons per household The average household size in India has been decreasing over the decades due to declining birth rates, urbanization, and changes in family structures. States like Uttar Pradesh and Bihar have larger household sizes due to higher fertility rates and joint families. Kerala and Tamil Nadu have smaller household sizes due to better education, family planning, and higher migration. v v v
Answer key for these questions
Q
UPSC year
Correct answer
391
1996
(a) received in rupees against overseas currencies and vice versa without going through the official channels
392
1996
(b) Uttar Pradesh, West Bengal, Gujarat, Kerala
What UPSC has tested in Indian Economy
Money and banking questions test how RBI tools work: repo, CRR, open market operations, lender of last resort and the Monetary Policy Committee.
Public finance questions often use small calculations, such as revenue deficit and fiscal deficit in the 2025 paper.
Institutions and publications are tested by who issues what, such as the World Bank’s Ease of Doing Business or the IMF’s World Economic Outlook.
Agriculture and industry questions focus on schemes and prices: MSP, FRP, e-NAM, UDAY and the Rashtriya Gokul Mission.
Frequently asked questions
How many previous year UPSC questions are there on Indian Economy?
This page covers 392 previous year UPSC Prelims GS Paper-I questions on Indian Economy, asked from 1996 to 2025. Each has the correct answer and an explanation.
Which Indian Economy chapters have the most questions?
Banking Sector in India has the most with 74 questions, then External Sector of India with 49, Industry with 44, Agriculture with 35 and Important Concepts in Economy and Human Development with 29 and 28.
How can I use these questions to prepare for the Economy section?
Take one chapter at a time using the Chapter filter, attempt the questions, and read the facts UPSC has tested at the end of the page. Repeat the banking and public finance chapters, since they are asked every year.
Are the 2025 Economy questions included?
Yes. The 2025 paper’s 19 Indian Economy questions, on revenue deficit, fiscal deficit, RBI income, RTGS and NEFT, bonds and stocks and the 15th Finance Commission, are included with explanations.
