Q621. The implementation of strict localization rules for financial data (data localization) by regulatory authorities has what primary effect on foreign financial service providers?
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 621–630 of 848 questions
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Q622. In the context of India’s services exports, which geographical region is the largest destination for Indian IT-BPO exports?
Explanation
North America remains the primary destination for Indian IT and BPO exports, accounting for the largest share of the sector’s international revenue. The long-standing partnership with companies in this region is driven by high demand for digital transformation, software development, and specialized back-office services. This strong export link has been a major contributor to India’s position as a global hub.
Q623. All of the following are examples of knowledge-based Future Opportunities in the service sector, except:
Explanation
Future opportunities in the service sector are increasingly focused on high-value, knowledge-based activities. Fields such as big data analytics, blockchain-based smart contracts, and cybersecurity consulting represent these advanced areas. In contrast, manual data entry is a routine, low-value task that is increasingly being automated. Therefore, it does not fit the category of sophisticated future opportunities that drive next-phase service sector growth.
Q624. Read the following statements regarding transport services:
Statement I: The Dedicated Freight Corridor (DFC) is designed to exclusively carry passenger trains at high speeds.
Statement II: DFC aims to decongest existing railway networks and increase the average speed of goods trains.
Select the correct response:
Statement I: The Dedicated Freight Corridor (DFC) is designed to exclusively carry passenger trains at high speeds.
Statement II: DFC aims to decongest existing railway networks and increase the average speed of goods trains.
Select the correct response:
Explanation
The Dedicated Freight Corridor is a strategic infrastructure project specifically designed for the movement of goods, not passenger trains. Its primary objective is to decongest the existing rail network by providing dedicated high-speed tracks for freight. This improvement allows for heavier and faster cargo trains, which significantly increases the efficiency of logistics and reduces the overall cost of transporting goods.
Q625. The ‘Kavach’ system, recently in the news, is associated with the safety infrastructure of which service sector?
Explanation
Kavach is an indigenously developed automatic train protection system designed to enhance safety in the Indian railways. It acts as an anti-collision system that prevents trains from passing signals at danger and helps avoid accidents in adverse weather conditions. The implementation of this technology is a critical part of the modernization efforts to make rail travel safer through advanced electronic safety protocols.
Q626. What defines a ‘unicorn’ in the context of the digital economy and startup ecosystem?
Explanation
In the startup ecosystem, a ‘unicorn’ is a privately held company that has reached a valuation of over one billion US dollars. This status signifies significant growth, investor confidence, and market potential. India has seen a rapid rise in the number of unicorns, particularly in the fintech, e-commerce, and edtech sectors. This trend reflects the vibrant nature of the domestic digital economy.
Q627. An individual in Rajasthan uses a mobile application to instantly transfer funds to a merchant’s bank account using a QR code. This process relies on which underlying core technology?
Explanation
Real-time fund transfers using mobile applications and QR codes are made possible by the Unified Payments Interface.
Q628. Which of the following best defines the difference between conventional and non-conventional sources of energy in the Indian context?
Explanation
Conventional energy sources refer to traditional fuels like coal, petroleum, and natural gas that have been used for decades and are generally exhaustible. In contrast, non-conventional energy sources are newer alternatives, including solar, wind, and tidal energy. These are mostly renewable and environmentally friendly compared to the established fossil-fuel-based infrastructure that has historically dominated the national energy sector.
Q629. Identify the incorrect pair regarding the classification of energy sources in India:
Explanation
In the Indian context, solar and wind energy are classified as non-conventional sources because they are renewable alternatives to traditional fossil fuels. Conventional sources include traditional commercial fuels like coal and petroleum, as well as non-commercial fuels such as firewood and cow dung. Labeling wind and solar as conventional is incorrect because they belong to the modern, sustainable category.
Q630. Consider the following statements regarding coal reserves in India:
I. Gondwana coal accounts for more than 98 percent of the total coal reserves in India.
II. Tertiary coal is mainly found in the peninsular plateau region of India.
III. Anthracite is the most abundantly available type of coal in India.
Which of the above statement(s) is/are incorrect?
I. Gondwana coal accounts for more than 98 percent of the total coal reserves in India.
II. Tertiary coal is mainly found in the peninsular plateau region of India.
III. Anthracite is the most abundantly available type of coal in India.
Which of the above statement(s) is/are incorrect?
Explanation
India’s coal reserves are predominantly found in the Gondwana formations, representing over ninety-eight percent of total resources. Tertiary coal is actually found in younger rock formations in the northeastern states rather than the peninsular plateau. Anthracite is a high-quality coal but is extremely rare in India, whereas Bituminous coal is the most abundantly available type across major mines.Answer key for these questions
| Q | Correct answer |
|---|---|
| 621 | (b) Increased operational and infrastructure costs to maintain local data servers |
| 622 | (c) North America |
| 623 | (d) Manual data entry operations |
| 624 | (d) Statement I is incorrect, but Statement II is correct. |
| 625 | (b) Railways sector |
| 626 | (a) A privately held startup company valued at over $1 billion |
| 627 | (c) UPI (Unified Payments Interface) |
| 628 | (b) Conventional sources are traditional long- used fuels, while non-conventional sources are newer alternatives. |
| 629 | (a) Conventional Energy - Wind and Solar |
| 630 | (b) II and III |
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.