848 RAS Prelims practice MCQs on the Indian economy are on this page, in 10 chapters. They cover economic growth and development, the Human Development Index, monetary and fiscal policy and the Union Budget, fiscal federalism, agricultural development, industrial reforms and LPG, the service sector, energy and transport, skill development and employment, and social justice. Each question has an answer and an explanation.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Q481. Match the Agricultural Challenges in List I with their Impacts/Consequences in List II and select the correct answer using the options given below:
Agricultural Challenges
Impacts
A. Severe Land Fragmentation
i. High post-harvest losses, especially in horticulture
B. Over-exploitation of Groundwater
ii. Unviability of using large farm machinery
C. Climate Change and Heat Waves
iii. Increase in soil salinity and dark zones
D. Inadequate Cold Storage Logistics
iv. Altered phenology and reduced crop duration
Explanation
Various agricultural challenges have distinct impacts. Severe land fragmentation makes the use of large farm machinery unviable. The over-exploitation of groundwater leads to increased soil salinity and the creation of ‘dark zones.’ Climate change and heat waves alter crop phenology and reduce duration. Inadequate cold storage logistics result in high post-harvest losses, particularly in the horticulture sector.
Q482. To combat the severe water stress challenge in regions like Rajasthan, the concept of ‘Per Drop More Crop’ is promoted. This is a primary component of which scheme?
Explanation
The concept of ‘Per Drop More Crop’ is a central pillar of the Pradhan Mantri Krishi Sinchayee Yojana. This component focuses on improving water use efficiency at the farm level through modern irrigation technologies like drip and sprinkler systems. By reducing water wastage, the scheme helps farmers in water-stressed regions like Rajasthan maintain productivity while conserving precious resources.
Q483. Consider the following strategies recommended by the Ashok Dalwai Committee to double farmers’ income: I. Improvement in crop productivity. II. Resource use efficiency or saving in cost of production. III. Increase in cropping intensity. IV. Diversification towards high value crops. V. Shift of cultivators to non-farm jobs. Which of the above statements representing these recommended strategies is/are correct?
Explanation
The Ashok Dalwai Committee recommended a multi-pronged approach to double farmers’ income. This includes improving crop productivity and resource use efficiency to save costs. The committee also emphasized increasing cropping intensity and diversifying toward high-value crops. Furthermore, it recognized that shifting some cultivators to non-farm jobs is necessary to reduce the population pressure on limited agricultural land.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q484. Which of the following Industrial Policy Resolutions first introduced the concept of a mixed economy in India, delineating the roles of the public and private sectors?
Explanation
The Industrial Policy Resolution of 1948 was the first official declaration regarding the industrial development strategy in independent India. It formally adopted the concept of a mixed economy, where both public and private sectors coexist. This policy assigned a specific role to the state in industrial activities while allowing the private sector to operate under regulation and government supervision.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q485. Under the Industrial Policy Resolution of 1956, industries were classified into three categories. Which schedule exclusively contained industries whose future development would be the exclusive responsibility of the State?
Explanation
The Industrial Policy Resolution of 1956 categorized industries into three schedules to delineate state and private roles. Schedule A consisted of seventeen industries whose future development was made the exclusive responsibility of the State. These included core sectors like arms and ammunition, atomic energy, iron and steel, and heavy machinery, ensuring strategic government control over essential national industrial resources.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q486. What was the primary focus of the Industrial Policy Statement of 1977 introduced by the Janata government?
Explanation
The Industrial Policy Statement of 1977, introduced by the Janata government, shifted the emphasis from heavy industries toward decentralization. Its primary focus was the promotion of cottage and small-scale industries to generate large-scale employment and rural development. This policy introduced the concept of District Industries Centres to provide all necessary support services to small entrepreneurs under one single roof.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q487. Which of the following statements incorrectly describes a feature of the Industrial Policy Resolution of 1956?
Explanation
The Industrial Policy Resolution of 1956 served as the economic constitution of India, heavily influenced by the Mahalanobis model. While it emphasized the public sector’s commanding height and balanced regional development, it did not advocate for the wholesale nationalization of all existing private industrial units. Instead, it provided a framework for public and private sectors to coexist harmoniously.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q488. Read the following statements regarding the Industrial Policy of 1980: I. It sought to promote the concept of economic federalism. II. It introduced the concept of nucleus plants in industrially backward districts. III. It completely abolished the MRTP Act limit for large business houses. Which of the combinations given above is correct?
Explanation
The Industrial Policy Statement of 1980 aimed to revive the industrial sector by promoting economic federalism. It introduced the concept of nucleus plants in industrially backward districts to generate ancillarization and create employment opportunities. While it relaxed certain constraints, it did not completely abolish the MRTP Act limits for large business houses, which remained a feature of the regulatory framework.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q489. The system of industrial licensing in India, often referred to as the Licence Raj, was primarily governed by the provisions of which legislation?
Explanation
The system of industrial licensing in India was established and governed by the Industries Development and Regulation Act of 1951. This legislation empowered the government to regulate industrial growth, capacity expansion, and the manufacture of new products. It became the legal basis for the Licence Raj, requiring entrepreneurs to obtain government permission for various stages of industrial operation.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q490. Which committee was appointed in 1967 to inquire into the working of the industrial licensing system and concluded that the system had failed to prevent the concentration of economic power?
Explanation
The Industrial Licensing Policy Inquiry Committee, popularly known as the Dutt Committee, was appointed in 1967 to evaluate the licensing system. It found that the system had failed to prevent the concentration of economic power and often benefited large industrial houses. Its recommendations led to more stringent regulations under the Monopolies and Restrictive Trade Practices Act to curb dominance.
(c) Promotion of small-scale, cottage, and village industries
487
(d) Nationalization of all existing private sector industrial units.
488
(c) I and II only
489
(b) Industries (Development and Regulation) Act, 1951
490
(d) Dutt Committee
Key facts from Indian Economy
The RPSC syllabus lists economic concepts and the Indian economy as the first part of the Economy paper, followed by the economy of Rajasthan.
Concept questions test definitions: nominal and real GDP, GNP and NDP, per capita income and the value-added method.
Policy questions pair a tool with its effect, for example a rise in CRR reduces the lendable resources of banks.
Scheme questions ask for the target group, ministry or year of schemes such as PMKVY, NAPS, PM SVANidhi and PM-SYM.
Questions on Finance Commission and GST link the body to its Article, such as Article 280.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Indian Economy?
This page has 848 practice MCQs on Indian Economy. Each has the correct answer, and most have an explanation.
Which chapters does the Indian economy set cover?
Ten chapters: economic growth, development and sustainable development; measurement of development (HDI); monetary and fiscal policy and the Union Budget; fiscal federalism and the Finance Commission; agricultural development; industrial growth and LPG reforms; the service sector; energy, transport and communication; skill development and employment; and social justice and empowerment.
Is the Indian economy in the RAS Prelims syllabus?
Yes. RPSC lists Economic Concepts and the Indian Economy as the first part of the Economy paper. The second part covers the economy of Rajasthan, which is on its own page.
How should I revise economy for RAS Prelims?
Learn the definitions and the cause-and-effect chains first, then the schemes with their year, ministry and target group. Attempt each chapter, read every explanation and keep a one-line note for each scheme and body.
