Q541. Which of the following represents the correct order of the top three sectors attracting the highest cumulative FDI equity inflows in India between April 2000 and recent years?
Indian Economy: RAS Prelims MCQs
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 541–550 of 848 questions
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Q542. The Ease of Doing Business (EoDB) index, which evaluated business regulations across countries, was published annually by which international organization before its discontinuation?
Explanation
The Ease of Doing Business index was a prominent annual ranking published by the World Bank Group. It evaluated the regulatory environment for businesses across different countries based on several standardized parameters. The index played a significant role in influencing national policy reforms as countries competed to improve their rankings. However, the World Bank discontinued the report in 2021 following internal audits regarding data.
Q543. Which of the following was NOT a parameter used to calculate the Ease of Doing Business score?
Explanation
The Ease of Doing Business index utilized ten specific parameters to measure the regulatory burden on small and medium-sized domestic firms. These included starting a business, getting electricity, and dealing with construction permits, along with other factors like paying taxes and enforcing contracts. While political corruption is a significant economic concern, it was not one of the direct metrics used to calculate the score.
Q544. Read the following statements regarding the Business Reforms Action Plan (BRAP):
I. It is an exercise to rank States and UTs in India based on the implementation of business reforms.
II. It is coordinated by the Department for Promotion of Industry and Internal Trade (DPIIT).
III. The objective is to foster cooperative and competitive federalism.
Which of the combinations given above is correct?
I. It is an exercise to rank States and UTs in India based on the implementation of business reforms.
II. It is coordinated by the Department for Promotion of Industry and Internal Trade (DPIIT).
III. The objective is to foster cooperative and competitive federalism.
Which of the combinations given above is correct?
Explanation
The Business Reforms Action Plan is an annual exercise coordinated by the Department for Promotion of Industry and Internal Trade. Its primary purpose is to rank Indian States and Union Territories based on their effectiveness in implementing various business-friendly reforms. By highlighting best practices and encouraging healthy competition among states, the plan aims to foster both cooperative and competitive federalism across the country.
Q545. Over the past decade, which country has consistently been among the top two sources of Foreign Direct Investment (FDI) inflows into India, often favored due to tax treaty benefits?
Explanation
Singapore has consistently emerged as one of the top two sources of Foreign Direct Investment inflows into India over the last decade. Its prominence is largely attributed to favorable tax treaties and its status as a global financial hub.
Q546. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): The share of the manufacturing sector in India’s GDP has remained relatively stagnant at around 16-17% for several decades despite reforms.
Reason (R): The rapid growth of the services sector and structural bottlenecks in infrastructure and labor markets hindered the proportional expansion of manufacturing.
Which of the following is correct?
Reason (R).
Assertion (A): The share of the manufacturing sector in India’s GDP has remained relatively stagnant at around 16-17% for several decades despite reforms.
Reason (R): The rapid growth of the services sector and structural bottlenecks in infrastructure and labor markets hindered the proportional expansion of manufacturing.
Which of the following is correct?
Explanation
Despite economic reforms, the manufacturing sector’s share in India’s GDP has remained relatively constant at about 16-17%. This stagnation is primarily explained by the exceptional growth of the services sector, which bypassed traditional industrial expansion. Furthermore, persistent structural bottlenecks, including inadequate infrastructure and rigid labor regulations, have hindered the manufacturing sector from achieving proportional growth seen in other developing industrializing economies.
Q547. Which exception accurately reflects current industrial policy regarding environmental regulations?
Explanation
Current industrial policy in India emphasizes environmental sustainability alongside economic growth. While the government has delicensed most sectors to promote ease of doing business, it maintains strict mandatory environmental clearances for highly polluting industries. This ensures that industrial expansion does not come at the cost of ecological degradation. All enterprises, regardless of location, must comply with national environmental standards and obtain regulatory approvals.
Q548. Match List I with List II and select the correct answer.
| Reform Initiative | Associated Ministry/Department |
|---|---|
| A. Disinvestment | i. Ministry of Electronics and IT |
| B. PLI Scheme (Mobile manufacturing) | ii. Ministry of MSME |
| C. MSME Udyam Registration | iii. Department for Promotion of Industry and Internal Trade (DPIIT) |
| D. Startup India | iv. Department of Investment and Public Asset Management (DIPAM) |
Explanation
Responsibility for various industrial and reform initiatives is distributed among specific government departments. Disinvestment is managed by the Department of Investment and Public Asset Management. The PLI scheme for mobile manufacturing falls under the Ministry of Electronics and Information Technology. The Ministry of MSME oversees the Udyam registration process, while the Startup India initiative is managed by the Department for Promotion of Industry.
Q549. The "Make in India" initiative shifted the focus from merely ‘import substitution’ to which of the following?
Explanation
The Make in India initiative represents a strategic shift in economic policy from the traditional focus on import substitution toward proactive export promotion. It aims to integrate Indian manufacturing into global value chains by improving domestic competitiveness and attracting international capital. By encouraging production for both domestic and global stages, the policy seeks to transform India into a major exporter of high-quality goods.
Q550. Read the following statements regarding the impact of Globalisation on the Indian economy:
I. It led to an increase in the variety and quality of consumer goods available in the market.
II. It resulted in the contraction of the Information Technology and ITES sectors.
III. It exposed domestic small-scale industries to intense international competition.
IV. It necessitated the establishment of the Competition Commission of India to prevent anti-competitive practices.
V. It completely eliminated poverty and income inequality in the country.
Which of the statements given above are correct?
I. It led to an increase in the variety and quality of consumer goods available in the market.
II. It resulted in the contraction of the Information Technology and ITES sectors.
III. It exposed domestic small-scale industries to intense international competition.
IV. It necessitated the establishment of the Competition Commission of India to prevent anti-competitive practices.
V. It completely eliminated poverty and income inequality in the country.
Which of the statements given above are correct?
Explanation
Globalisation has profoundly impacted the Indian economy by increasing the variety and quality of consumer goods through international trade. However, it also exposed domestic small-scale industries to intense competition from global players. To address market imbalances, the government established the Competition Commission of India to prevent anti-competitive practices. While sectors like IT flourished, globalisation did not completely eliminate complex social issues.Answer key for these questions
| Q | Correct answer |
|---|---|
| 541 | (d) Services Sector, Computer Software & Hardware, Telecommunications |
| 542 | (a) World Bank Group |
| 543 | (b) Controlling Political Corruption |
| 544 | (b) I, II and III |
| 545 | (a) Singapore |
| 546 | (a) Both A and R are true and R is the correct explanation of A. |
| 547 | (c) Strict clearances for highly polluting industries despite delicensing. |
| 548 | (a) A-iv, B-i, C-ii, D-iii |
| 549 | (d) Export promotion and integration into global value chains. |
| 550 | (a) I, III and IV |
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.