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 571–580 of 848 questions
Browse Indian Economy chapters
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q571. Consider the following events regarding India’s progression in Ease of Doing Business and arrange them in correct chronological order: I. India ranks in the top 100 for the first time. II. Introduction of the Business Reform Action Plan (BRAP) for states. III. World Bank discontinues the Doing Business report. Select the correct order:
Explanation
The progression of India’s engagement with the Ease of Doing Business framework began with domestic initiatives like the Business Reform Action Plan. Following systematic reforms, India significantly improved its international standing, ranking in the top 100 of the World Bank index for the first time in 2017. Finally, the World Bank discontinued the Doing Business report globally in 2021 following data irregularities.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q572. The concept of "plug and play" infrastructure, frequently mentioned in recent industrial policies and industrial corridors, refers to:
Explanation
In recent industrial policy discussions, plug and play infrastructure refers to the provision of ready-to-use industrial facilities. These are pre-built factory sheds equipped with all necessary utilities like electricity, water, and high-speed internet connectivity. This model allows entrepreneurs to start their manufacturing operations immediately without spending time on land acquisition. It is a key strategy used in industrial corridors.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q573. Match List I with List II and select the correct answer.
Industrial Term/Policy
Associated Sector/Scope
A. White Goods
i. Logistics and Multimodal Connectivity
B. PM Gati Shakti
ii. PLI scheme target sector (ACs and LEDs)
C. Make in India
iii. Innovation and early-stage enterprise support
D. Startup India
iv. 27 broadly identified sectors for manufacturing push
Explanation
Various government schemes target specific industrial goals. The Production Linked Incentive scheme for White Goods focuses on air conditioners and LED lights. PM Gati Shakti is a master plan dedicated to improving logistics and multimodal connectivity. The Make in India initiative identifies twenty-seven broad sectors for a manufacturing push. Meanwhile, the Startup India program is designed to support innovation.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q574. The service sector is often referred to as the tertiary sector of the economy. Which of the following best defines the primary characteristic of activities classified under this sector?
Explanation
The tertiary sector is defined by the provision of intangible value, professional expertise, and experiential goods rather than physical manufacturing or resource extraction. Activities include banking, tourism, education, and healthcare, which facilitate economic exchange without producing physical commodities. This sector acts as a bridge between producers and consumers, adding significant value through specialized human skills and technological solutions.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q575. Read the following statements regarding the classification of the service sector: I. Tertiary services involve basic commercial services like retail and transport. II. Quaternary services involve knowledge-based activities like research and development. III. Quinary services involve routine administrative tasks and clerical work. Which of the above statements is/are correct?
Explanation
Economic activities are categorized into hierarchy-based levels of services. Tertiary services encompass essential commercial activities such as retail, transportation, and finance. Quaternary services represent the knowledge-based economy, focusing on research, development, and high-level information processing. Quinary services involve the highest level of decision-making by top executives and government officials, rather than routine administrative or clerical tasks performed by workers.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q576. Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): The service sector makes the highest contribution to India’s Gross Domestic Product (GDP). Reason (R): The service sector is the largest employer in the Indian economy, employing more than half of the total workforce. Select the correct answer using the codes given below:
Explanation
The service sector dominates the Indian economy in terms of value, contributing significantly more than half of the national Gross Domestic Product. However, this high economic contribution does not translate into proportionate job creation. The agricultural sector remains the largest employer in the country, highlighting a structural mismatch between output generation and workforce distribution within various segments of the economy.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q577. Match the service sub-sectors in List I with their core activities in List II and select the correct answer:
Service Sub-sector
Core Activity
A. Trade and Repair
i. Capital market intermediation
B. Financial Services
ii. Governance and statutory services
C. Real Estate
iii. Retail distribution
D. Public Administration
iv. Asset development and management
Explanation
Economic classification groups specific activities into distinct sub-sectors within the broader service industry. Trade and repair focus on retail and wholesale distribution of goods. Financial services specialize in capital market intermediation and banking functions. Real estate involves asset development and management. Public administration encompasses essential governance and statutory services provided by state institutions for the welfare of citizens across the nation.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q578. In the context of India’s economic structure, approximately what percentage does the service sector contribute to the total Gross Value Added (GVA)?
Explanation
The service sector represents the most dynamic component of the Indian economy, typically contributing between fifty and sixty percent of the total Gross Value Added. This dominant share reflects the transition toward a knowledge-led and service-oriented developmental model. Major sub-segments like trade, hospitality, transportation, and financial services collectively drive this significant contribution to the overall national economic value today.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q579. Read the following entities and technologies associated with the digital payments ecosystem in India: I. National Payments Corporation of India (NPCI) II. Bharat Bill Payment System (BBPS) III. Aadhaar Enabled Payment System (AePS) IV. Central Bank Digital Currency (e) V. Society for Worldwide Interbank Financial Telecommunication (SWIFT) Which of the above components are developed or operated primarily within India’s domestic digital infrastructure framework?
Explanation
India has developed a robust domestic digital payment infrastructure through various innovative components. Key elements include the National Payments Corporation of India, which operates systems like the Bharat Bill Payment System and the Aadhaar Enabled Payment System. The introduction of the Central Bank Digital Currency further strengthens this local framework. While SWIFT is used for global transfers, it is not a domestic development.
RAS PrelimsIndian Economy · Service Sector: Role, Challenges and Opportunities
Q580. Read the following statements regarding the relationship between the service sector and employment: Statement I: India’s economic growth over the past two decades has been criticized as ‘jobless growth’ because employment elasticity in the service sector is low. Statement II: The majority of the workforce transitioning out of agriculture is successfully absorbed by the high-skill IT sector. Select the correct response:
Explanation
India’s growth is often described as ‘jobless’ because the employment elasticity in the high-value service sector is relatively low. This means that significant increases in economic output do not result in a corresponding increase in jobs. Furthermore, the high-skill IT sector cannot easily absorb the large number of workers leaving agriculture, as these individuals often lack the specialized technical training.
Answer key for these questions
Q
Correct answer
571
(b) II, I, III
572
(c) Pre-built factory sheds with utilities ready for manufacturing.
573
(a) A-ii, B-i, C-iv, D-iii
574
(b) Provision of intangible value, professional expertise, and experiential goods
575
(a) I and II only
576
(c) A is true but R is false.
577
(a) A-iii, B-i, C-iv, D-ii
578
(c) Between 50 percent and 60 percent
579
(b) I, II, III and IV
580
(c) Statement I is correct, but Statement II is incorrect.
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.
