17 previous year UPSC Prelims questions on Indian Economy in the UPSC 2012 Prelims. Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 11–17 of 17 questions
Browse Indian Economy chapters
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q11. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? 1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas. 2. By strengthening ‘self-help groups’ and providing skill development. 3. By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipment free of cost to farmers. Select the correct answer using the codes given below:
Explanation
Statement 1 is incorrect: The National Rural Livelihood Mission (NRLM) does not focus on setting up new manufacturing industries or agribusiness centers directly. Its primary focus is on promoting self-employment and organization of the rural poor through self-help groups (SHGs).
Statement 2 is correct: NRLM aims to strengthen self-help groups (SHGs) and provide skill development to enhance the livelihood options of the rural poor.
Statement 3 is incorrect: NRLM does not involve the free distribution of agricultural inputs like seeds, fertilizers, or irrigation equipment. These activities are covered under different agricultural schemes.
Additional insight:
The Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (NRLM), launched by the Ministry of Rural Development in June 2011, is a restructured version of the Swarna Jayanti Gram Swarozgar Yojna (SGSY). It aims to strengthen institutional frameworks for the rural poor, enhancing access to financial services and sustainable livelihoods. The mission targets 7 crore rural poor families across 600 districts, 2.5 lakh Gram Panchayats, and 6 lakh villages, promoting Self Help Groups (SHGs) and livelihood collec-tives over an 8-10 year period.
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q12. With reference to the National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained community health worker? 1. Accompanying women to the health facility for antenatal care checkup. 2. Using pregnancy test kits for early detection of pregnancy. 3. Providing information on nutrition and immunisation. 4. Conducting the delivery of a baby. Select the correct answer using the codes given below:
Explanation
Accredited Social Health Activists (ASHAs) are community health workers under the National Rural Health Mission (NRHM), trained to promote maternal and child health, facilitate access to healthcare services, and provide basic health education on nutrition, immunisation, and hygiene.
Statement 1 is correct: ASHAs assist women in accessing healthcare facilities for antenatal check-ups, delivery, and post-natal care.
Statement 2 is correct: ASHAs are trained to use pregnancy test kits for early detection and guiding women accordingly.
Statement 3 is correct: One of the core responsibilities of ASHAs is to educate the community about nutrition, immunisation, family planning, and hygiene.
Statement 4 is incorrect: ASHAs are not trained to conduct deliveries. They are responsible for facilitating access to skilled birth attendants and institutional deliveries but do not perform the deliveries themselves.
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q13. The endeavour of ‘Janani Suraksha Yojana’ Programme is: 1. To promote institutional deliveries. 2. To provide monetary assistance to the mother to meet the cost of delivery. 3. To provide for wage loss due to pregnancy and confinement. Which of the statements given above is/are correct?
Explanation
Janani Suraksha Yojana (JSY) is a safe motherhood intervention under the National Rural Health Mission (NRHM).
Statement 1 is correct: The primary goal of Janani Suraksha Yojana (JSY) is to reduce maternal and infant mortality by encouraging pregnant women to opt for institutional deliveries in healthcare facilities, ensuring safe childbirth under professional supervision.
Statement 2 is correct: JSY is a centrally sponsored scheme, which integrates cash assistance with delivery and post-de-livery care to help cover expenses related to childbirth, making institutional deliveries more accessible.
Statement 3 is incorrect: JSY does not compensate for wage loss during pregnancy or confinement. Its focus is on promoting safe deliveries through financial support for delivery costs, not income replacement.
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q14. Consider the following: 1. Hotels and restaurants 2. Motor transport undertakings 3. Newspaper establishments 4. Private medical institutions The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?
Explanation
The Employees’ State Insurance (ESI) Scheme is a social security and health insurance program for Indian workers, managed by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. Launched in 1952 under the ESI Act, 1948, it provides financial protection to employees against sickness, maternity, disability, and work-related injuries. This Act applies, in the first instance, to non-seasonal factories employing 10 or more persons. Statements 1, 2, 3 and 4 are correct: The ESI Scheme initially covered factories but has expanded to include hotels and restaurants, motor transport undertakings, newspaper establishments, private medical institutions, shops, cinemas, educational institutions, and more. It applies to establishments with 10 or more employees (20 in some states) and covers employees earning up to 21,000/month (25,000 for persons with disabilities).
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q15. If the National Water Mission is properly and completely implemented, how will it impact the country? 1. Part of the water needs of urban areas will be met through recycling of waste-water. 2. The water requirements of coastal cities with inadequate alternative sources of water will be met by adopting appropriate technologies that allow for the use of ocean water. 3. All the rivers of Himalayan origin will be linked to the rivers of peninsular India. 4. The expenses incurred by farmers for digging bore-wells and for installing motors and pump-sets to draw ground-water will be completely reimbursed by the Government. Select the correct answer using the codes given below:
Explanation
National Water Mission is one of the eight missions launched under the National Action Plan on Climate Change (NAPCC) for combating the threats of global warming. The main objective of NWM is "conservation of water, minimising wastage and ensuring its more equitable distribution both across and within States through integrated water resources devel-opment and management". Statements 1 and 2 are correct: It seeks to ensure that a considerable share of the water needs of urban areas are met through recycling of waste water and ensuring that the water requirements of coastal cities with inadequate alternative sources of water are met through adoption of new and appropriate technologies such as low temperature desalination technologies that allow for the use of ocean water.
Statement 3 is incorrect: All the rivers of Himalayan origin will be linked to the rivers of peninsular India is part of the Interlinking of Rivers Project, not the National Water Mission.
Statement 4 is incorrect: The NWM focuses on water conservation and efficiency but does not provide reimbursements for bore-wells or pump-sets.
UPSC 2012Indian Economy · Human Development and Sustainable Development
Q16. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India? 1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country. 2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures. 3. DRDAs secure inter-sectoral and interdepartmental coordination and cooperation for effective implementation of anti-poverty programmes. 4. DRDAs watch over and ensure effective utilisation of the funds intended for anti-poverty programmes. Which of the statements given above is/are correct?
Explanation
Statement 1 is incorrect: DRDAs does not act as Panchayati Raj Institutions. They are autonomous bodies that coordinate rural development programs, while Panchayati Raj Institutions are separate local self-governance bodies.
Statement 2 is incorrect: No such provisions are there for DRDAs to undertake an area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
Statement 3 is correct: One of the key roles of DRDAs is to coordinate efforts across sectors and departments to ensure the effective implementation of various rural development schemes.
Statement 4 is correct: DRDAs are responsible for monitoring and ensuring the proper utilization of funds allocated to anti-poverty and rural development programs.
UPSC 2012Indian Economy · Important Index and Reports
Q17. The Multi-dimensional Poverty Index developed by ‘Oxford Poverty and Human Development initiative with UNDP support covers which of the following? 1. Deprivation of education, health, assets and services at household level. 2. Purchasing power parity at national level. 3. Extent of budget deficit and GDP growth rate at national level. Select the correct answer using the codes given below:
Explanation
The Multidimensional Poverty Index (MPI), developed by the Oxford Poverty and Human Development Initiative (OPHI) in collaboration with the United Nations Development Programme (UNDP), is designed to measure acute poverty by evaluating multiple deprivations that individuals face across three key dimensions: health, education, and living standards.
Statement 1 is correct: The index assesses deprivations in education (such as years of schooling and school attendance), health (including child mortality and nutrition), and living standards (evaluated through indicators like access to electricity, sanitation, drinking water, housing, cooking fuel, and asset ownership).
Statement 2 is incorrect: Purchasing power parity (PPP) is an economic metric used to compare the relative value of currencies and the cost of goods across countries. The MPI focuses on non-monetary deprivations at the household level and does not incorporate national-level economic indicators like PPP.
Statement 3 is incorrect: Budget deficits and GDP growth rates are macroeconomic indicators that reflect a country’s fiscal health and economic performance. The MPI does not include these national-level metrics, as it is centered on individual and household deprivations in specific areas such as health, education, and living standards.
Answer key for these questions
Q
UPSC year
Correct answer
11
2012
(b) 2 only
12
2012
(a) 1, 2 and 3 only
13
2012
(a) 1 and 2 only
14
2012
(d) 1, 2, 3 and 4
15
2012
(b) 1 and 2 only
16
2012
(b) 3 and 4 only
17
2012
(a) 1 only
Frequently asked questions
How many previous year UPSC questions are there on Indian Economy?
This page covers 17 previous year UPSC Prelims GS Paper-I questions on Indian Economy in the UPSC 2012 Prelims, asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Indian Economy?
Questions on Indian Economy in the UPSC 2012 Prelims are available for 30 years, from 1996 to 2025. Use the Year filter to practise a single paper.