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 631–640 of 848 questions
Browse Indian Economy chapters
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q631. Read the following statements regarding coal resources in India and select the correct option: Statement I: India imports a significant amount of coking coal despite having large domestic coal reserves. Statement II: The majority of Indian coal reserves have high ash content and are non-coking in nature.
Explanation
India imports coking coal primarily because its domestic reserves consist largely of non-coking coal with high ash content. This high mineral matter reduces the quality and efficiency for steel manufacturing, making imports necessary despite large quantities of thermal coal. Thus, the physical characteristics of Indian coal, specifically its non-coking nature and impurities, directly necessitate the reliance on international markets.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q632. Match List I with List II:
Coal/Lignite Mining Area
State
A. Jharia
i. Odisha
B. Neyveli
ii. Rajasthan
C. Palana
iii. Tamil Nadu
D. Talcher
iv. Jharkhand
Select the correct code:
Explanation
Coal and lignite mining areas are geographically distributed across several Indian states. Jharia is the most famous coalfield located in Jharkhand, while Neyveli in Tamil Nadu is known for significant lignite deposits. Palana is a lignite mining site situated in Rajasthan, and Talcher represents one of the largest coal reserves in Odisha. Matching these correctly requires knowledge of regional geology.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q633. Match List I with List II:
Nuclear Power Plant
State
A. Rawatbhata
i. Gujarat
B. Kakrapar
ii. Rajasthan
C. Kaiga
iii. Tamil Nadu
D. Kudankulam
iv. Karnataka
Select the correct code:
Explanation
Nuclear power plants are strategically located across different states to support regional electricity grids. Rawatbhata is located in Rajasthan, while Kakrapar serves the state of Gujarat. Kaiga is a significant facility in Karnataka, and Kudankulam is the largest nuclear plant in India, situated in Tamil Nadu. Correctly identifying these locations is essential for understanding India’s nuclear energy infrastructure and distribution.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q634. Who among the following is credited with conceptualizing India’s three-stage nuclear power programme?
Explanation
Homi J. Bhabha was the visionary physicist who conceptualized India’s unique three-stage nuclear power programme. This strategy was designed to achieve energy independence by utilizing India’s modest uranium reserves in the first stages and eventually tapping into its vast thorium resources. His foundational work established the Department of Atomic Energy and set the long-term trajectory for nuclear research and development.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q635. Read the following statements regarding nuclear energy in India and select the correct option: Statement I: Nuclear energy currently contributes less than 5 percent to India’s total installed power capacity. Statement II: The Department of Atomic Energy (DAE) operates directly under the Prime Minister of India.
Explanation
Nuclear energy contributes less than 5 per cent of India’s installed power capacity, and the Department of Atomic Energy works directly under the Prime Minister. Both are correct, but the second does not explain the first.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q636. Consider the following statements regarding India’s nuclear energy programme: I. The first stage utilizes Pressurized Heavy Water Reactors (PHWRs). II. Fast Breeder Reactors form the second stage and use Plutonium. III. Thorium utilization is the primary focus of the first stage. IV. India possesses vast reserves of Thorium in the monazite sands of Kerala. Which of the above statement(s) is/are correct?
Explanation
The first stage of India’s nuclear programme uses Pressurized Heavy Water Reactors, while the second stage utilizes Fast Breeder Reactors fueled by plutonium. Thorium utilization is the primary focus of the third stage, not the first. India possesses massive thorium reserves within the monazite sands along the Kerala coast, which is a key component for long-term sustainable nuclear power generation.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q637. Identify the incorrect statement regarding India’s energy security and Strategic Petroleum Reserves (SPR):
Explanation
Strategic Petroleum Reserves are designed as a critical buffer against short-term global supply disruptions rather than long-term independence. Currently, India’s storage capacity, including sites like Mangalore and Visakhapatnam, covers roughly nine to ten days of demand, far less than two years. These facilities are managed by the government-owned Indian Strategic Petroleum Reserves Limited to ensure national energy security during emergencies.
RAS PrelimsIndian Economy · Industrial Growth, Policy Reforms and LPG
Q638. What are the dual criteria used in the new definition?
Explanation
The revised MSME definition of 2020 uses two criteria together: investment in plant and machinery or equipment, and annual turnover.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q639. An energy company wants to extract a natural gas resource that is trapped within coal seams. Which of the following specific terms describes this resource?
Explanation
Coal Bed Methane is a form of natural gas extracted directly from coal seams where it is trapped during the coalification process. It is considered an unconventional source of energy and is increasingly being explored in India to supplement traditional gas supplies. This resource is distinct from shale gas or liquefied natural gas due to its specific geological occurrence within coal.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q640. Which solar park holds the distinction of being one of the largest solar parks in the world by capacity, located in Rajasthan?
Explanation
Bhadla Solar Park, located in the Jodhpur district of Rajasthan, is recognized as one of the largest solar parks in the world by total capacity. Its vast expanse and high solar insolation make it a cornerstone of India’s renewable energy goals. While other parks like Pavagada and Kurnool are significant, Bhadla stands out for its massive scale and contribution to solar power.
Answer key for these questions
Q
Correct answer
631
(a) Both Statement I and Statement II are correct, and Statement II explains Statement I.
632
(a) A-iv, B-iii, C-ii, D-i
633
(a) A-ii, B-i, C-iv, D-iii
634
(b) Homi J. Bhabha
635
(b) Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
636
(b) I, II and IV
637
(c) SPR facilities holding enough crude to meet total demand for two years.
638
(d) Investment in plant/machinery and annual turnover.
639
(d) Coal Bed Methane
640
(c) Bhadla Solar Park
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.