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.
Showing 531–540 of 848 questions
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RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q531. Match List I with List II and select the correct answer.
PSU Status
Financial Autonomy Limit for Investment without Govt Approval
A. Maharatna
i. Up to 500 crore
B. Navratna
ii. Up to 1000 crore or 15% of net worth
C. Miniratna Category-I
iii. Up to 300 crore or 50% of net worth
D. Miniratna Category-II
iv. Up to 5,000 crore or 15% of net worth
Explanation
The financial autonomy granted to public sector enterprises depends on their specific status. Maharatna companies can invest up to 5,000 crore or 15% of their net worth in a single project without prior government approval. Navratna companies have a limit of 1,000 crore. Miniratna Category-I enterprises are allowed up to 500 crore, while Miniratna Category-II firms have an investment autonomy limit of 300 crore.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q532. The Delhi-Mumbai Industrial Corridor (DMIC) is a mega infrastructure project being developed with the financial and technical assistance of which country?
Explanation
The Delhi-Mumbai Industrial Corridor is one of the world’s largest infrastructure projects, aimed at developing a high-tech industrial zone along the Western Dedicated Freight Corridor. This project is being implemented with significant financial and technical assistance from the Government of Japan. The collaboration involves developing smart cities and industrial hubs that leverage Japanese expertise in sustainable urban planning and advanced manufacturing technologies.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q533. Which of the following states is NOT covered under the geographical influence area of the Delhi-Mumbai Industrial Corridor (DMIC)?
Explanation
The Delhi-Mumbai Industrial Corridor passes through a specific alignment covering six major states: Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra. These states fall within the geographical influence area of the Western Dedicated Freight Corridor. Bihar is not part of the DMIC’s influence zone as it is located in the eastern part of India, along the alignment of the Eastern Corridor.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q534. The PM Gati Shakti National Master Plan primarily aims to achieve which of the following objectives?
Explanation
PM Gati Shakti is a National Master Plan for multi-modal connectivity aimed at transforming India’s infrastructure landscape. Its primary objective is to ensure synchronized planning and integrated implementation of infrastructure projects across different ministries and departments. By breaking down silos in governance, the plan seeks to reduce logistics costs, improve supply chain efficiency, and provide seamless movement of people and goods.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q535. Read the following statements regarding the institutional framework of Industrial Corridors in India: I. The National Industrial Corridor Development and Implementation Trust (NICDIT) is the apex body. II. NICDIT operates under the Department for Promotion of Industry and Internal Trade (DPIIT). III. Only greenfield industrial nodes are developed under this framework. IV. State governments provide land as their equity contribution in the Special Purpose Vehicles (SPVs). Which of the combinations given above is correct?
Explanation
The National Industrial Corridor Development and Implementation Trust is the apex body overseeing industrial corridors under the Department for Promotion of Industry and Internal Trade. The framework involves a partnership where state governments provide land as their equity contribution in Special Purpose Vehicles. While greenfield nodes are a major focus, the framework is not strictly limited to them, as it aims for development.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q536. What is the primary purpose of developing ‘Investment Regions’ and ‘Industrial Areas’ along the industrial corridors?
Explanation
The development of Investment Regions and Industrial Areas along industrial corridors is designed to create self-sustained industrial townships. These areas are equipped with world-class infrastructure, high-speed connectivity, and modern utilities to attract both domestic and foreign investment. The goal is to provide a comprehensive ecosystem where manufacturing units can operate efficiently, supported by nearby residential, commercial, and social amenities, fostering holistic development.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q537. Which two major nodes in Rajasthan are being developed in the first phase of the Delhi- Mumbai Industrial Corridor (DMIC) project?
Explanation
In the first phase of the Delhi-Mumbai Industrial Corridor project in Rajasthan, two major nodes have been prioritized for development. These are the Khushkhera-Bhiwadi-Neemrana Investment Region and the Jodhpur-Pali-Marwar Industrial Area. These nodes are strategically located to leverage the freight corridor’s connectivity, aiming to become major manufacturing and logistics hubs that attract significant private investment and drive industrial growth within the state.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q538. Identify the correct pair regarding the Startup India initiative.
Explanation
The Startup India initiative includes several financial and support mechanisms. The Fund of Funds for Startups is a key component, which is managed by the Small Industries Development Bank of India to provide capital to venture capital funds. Other schemes like the Startup India Seed Fund provide early-stage funding. The MAARG portal is a mentorship platform, highlighting the initiative’s focus on innovation.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q539. Match List I with List II and select the correct answer.
Startup Terminology
Meaning
A. Incubator
i. Funding a business using personal finances or revenue
B. Angel Investor
ii. Institutional financing for early-stage, high-potential companies
C. Bootstrapping
iii. High net-worth individual providing capital for a business start-up
D. Venture Capital
iv. Organization helping startups develop by providing services and space
Explanation
The startup ecosystem is supported by various funding and development models. Incubators are organizations that help startups grow by providing essential services and workspace. Angel investors are high net-worth individuals who provide initial capital. Bootstrapping refers to building a business using only personal savings or initial revenue. Venture capital involves institutional funding provided to early-stage companies that demonstrate high potential for growth.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q540. According to the DPIIT definition, an entity shall be considered a ‘Startup’ in India up to how many years from the date of its incorporation/ registration?
Explanation
According to the guidelines set by the Department for Promotion of Industry and Internal Trade, an entity is considered a Startup for up to ten years from its date of incorporation or registration. This extended period allows young companies to benefit from various government incentives, tax exemptions, and simplified regulatory compliances during their most critical stages of growth, innovation, and scaling up.
Answer key for these questions
Q
Correct answer
531
(a) A-iv, B-ii, C-i, D-iii
532
(c) Japan
533
(c) Bihar
534
(b) Synchronized planning of multimodal connectivity infrastructure.
535
(d) I, II and IV
536
(a) Creating self-sustained industrial townships with world-class infrastructure to attract investment.
537
(c) Khushkhera-Bhiwadi-Neemrana and Jodhpur-Pali-Marwar
538
(a) Fund of Funds for Startups (FFS) - Managed by SIDBI.
539
(a) A-iv, B-iii, C-i, D-ii
540
(c) 10 years
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.
