Q561. The Stand-Up India scheme, closely associated with the startup ecosystem, specifically aims to promote entrepreneurship among:
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 561–570 of 848 questions
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Q562. In 1991, to tide over the Balance of Payments crisis, India had to airlift its physical gold reserves to pledge with banks in which countries?
Explanation
During the peak of the 1991 Balance of Payments crisis, India’s foreign exchange reserves had depleted to a level barely enough to cover two weeks of essential imports. To avoid a sovereign default and secure emergency financial assistance, the government was forced to airlift its physical gold reserves. These reserves were pledged with the Bank of England and the Union Bank of Switzerland.
Q563. Find the odd one out among the following initiatives/schemes based on their primary target sector.
Explanation
Among the listed initiatives, Make in India, the Production Linked Incentive scheme, and the National Industrial Corridor Development Programme are all primarily focused on the industrial and manufacturing sectors. They aim to boost manufacturing output and attract investment. In contrast, PM-KISAN is a central sector scheme that provides income support to landholding farmer families. Thus, it belongs to the agricultural sector.
Q564. Match List I with List II and select the correct answer.
| Pre-reform Committee | Subject of Enquiry |
|---|---|
| A. Mahalanobis Committee | i. Industrial Licensing Policy Inquiry |
| B. Dutt Committee | ii. Distribution of Income and Levels of Living |
| C. Abid Hussain Committee | iii. Small Scale Industries |
| D. Hazari Committee | iv. Working of Industrial Licensing System |
Explanation
Several committees were appointed in the pre-reform era to study different aspects of the Indian economy. The Mahalanobis Committee focused on the distribution of income and levels of living. The Dutt Committee conducted an industrial licensing policy inquiry. The Abid Hussain Committee examined small-scale industries. Additionally, the Hazari Committee investigated the practical working of the industrial licensing system and its impact.
Q565. Following the 1991 reforms, which sector of the Indian economy showed the most rapid growth and became the largest contributor to the GDP?
Explanation
Following the structural reforms initiated in 1991, the services sector emerged as the fastest-growing part of the Indian economy. It rapidly expanded to become the largest contributor to the country’s Gross Domestic Product, surpassing both agriculture and manufacturing. This growth was driven by several sub-sectors, including Information Technology, telecommunications, and financial services. The success allowed India to establish a strong presence.
Q566. Read the following statements regarding the trend of FDI inflows in India post-2000:
I. There has been a steady, long-term increase in cumulative FDI inflows.
II. The services sector (including financial, banking, and insurance) has been a top recipient.
III. Equity inflows constitute the largest component of total FDI.
IV. 100% of the FDI inflow is exclusively directed to the agricultural sector.
V. Repatriation of profits by foreign investors is heavily restricted, deterring FDI.
Which of the statements given above are incorrect?
I. There has been a steady, long-term increase in cumulative FDI inflows.
II. The services sector (including financial, banking, and insurance) has been a top recipient.
III. Equity inflows constitute the largest component of total FDI.
IV. 100% of the FDI inflow is exclusively directed to the agricultural sector.
V. Repatriation of profits by foreign investors is heavily restricted, deterring FDI.
Which of the statements given above are incorrect?
Explanation
Since 2000, India has seen a steady increase in cumulative FDI inflows, with equity being a major component and the services sector as a top recipient. However, it is incorrect to state that 100% of FDI is directed to agriculture, as the sector receives a very small share. Additionally, India generally allows the repatriation of profits by foreign investors, attracting sustained investment.
Q567. What is the threshold turnover limit for a company to be classified as a ‘Startup’ under the current DPIIT guidelines in India?
Explanation
Under the current guidelines issued by the Department for Promotion of Industry and Internal Trade, a company can be classified as a Startup only if its annual turnover does not exceed one hundred crore rupees for any financial year since its incorporation. This turnover threshold, combined with the ten-year age limit, defines eligibility for various benefits, including tax holidays and innovation support.
Q568. Read the following statements regarding the MRTP Act, 1969:
I. It aimed to restrict monopolistic trade practices.
II. It was replaced by the Competition Act, 2002.
Which of the statements given above is/are correct?
I. It aimed to restrict monopolistic trade practices.
II. It was replaced by the Competition Act, 2002.
Which of the statements given above is/are correct?
Explanation
The Monopolies and Restrictive Trade Practices Act of 1969 was the primary legislation intended to prevent the concentration of economic power and curb anti-competitive trade practices. As the Indian economy moved toward liberalisation, this act was deemed outdated. Consequently, it was replaced by the Competition Act of 2002. The new law shifted the focus from restricting monopolies to promoting healthy competition.
Q569. Under the new composite criteria for MSMEs, if an enterprise has an investment of 8 crore in plant and machinery and an annual turnover of 40 crore, it will be classified as a:
Explanation
According to the 2020 revised MSME classification, an enterprise is categorized as a Small enterprise if its investment in plant and machinery does not exceed ten crore rupees and its annual turnover does not exceed fifty crore rupees. Therefore, an enterprise with eight crore investment and forty crore turnover falls within these specific limits. This ensure businesses are classified based on performance.
Q570. Which of the following was NOT an explicit objective of the New Economic Policy of 1991?
Explanation
The New Economic Policy of 1991 was designed to stabilize the economy and implement structural reforms to improve efficiency. Its explicit objectives included reducing the fiscal deficit, increasing foreign exchange reserves, and improving public sector efficiency. The policy aimed to open the Indian economy to global markets through liberalisation. Therefore, plunging the economy into a closed autarky was the exact opposite.Answer key for these questions
| Q | Correct answer |
|---|---|
| 561 | (b) Scheduled Castes, Scheduled Tribes, and Women |
| 562 | (d) England and Switzerland |
| 563 | (c) PM-KISAN |
| 564 | (a) A-ii, B-i, C-iii, D-iv |
| 565 | (d) Services |
| 566 | (b) IV and V only |
| 567 | (c) 100 crore |
| 568 | (c) Both I and II |
| 569 | (b) Small Enterprise |
| 570 | (b) To plunge the Indian economy into a closed autarky |
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.