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 681–690 of 848 questions
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Assertion (A) and the other as Reason (R):
Assertion (A): Despite being a highly fuel-efficient and environmentally friendly mode of transport, the share of inland waterways in India’s freight transport is very low.
Reason (R): Most Indian rivers lack perennial sufficient depth for large vessels and require continuous, costly dredging.
Explanation
Despite being fuel-efficient, the share of inland waterways in India’s total freight is very low because many rivers lack sufficient depth year-round. Continuous and expensive dredging is required to maintain navigable channels for large vessels, particularly during the dry season. Therefore, the physical limitations of the river systems and the high cost of maintenance directly explain the limited commercial utilization of waterways.Explanation
The Krishi UDAN scheme helps farmers to transport agricultural products by air so that they get better prices for their produce, especially from the North-East and hilly areas.Explanation
The Jal Marg Vikas Project is a major initiative aimed at enhancing the navigation capacity of National Waterway 1 on the Ganga River. It involves the construction of multi-modal terminals, fairways, and navigation locks to allow larger vessels to traverse the river between Varanasi and Haldia. This project is critical for boosting inland water transport and economic activity along the Ganga basin.I. Jawaharlal Nehru Port (JNPT) is the largest container port in India.
II. Kandla (Deendayal Port) is a tidal port located in the Gulf of Kutch.
III. Kamarajar Port (Ennore) is the first major port in India registered as a company.
IV. Mundra is the largest private port in India.
V. Kolkata Port is a major coastal sea port located directly on the Bay of Bengal.
Which of the above statement(s) is/are correct?
Explanation
Jawaharlal Nehru Port is India’s largest container port, while Kandla is a major tidal port in Gujarat. Kamarajar Port is unique for being the first major port registered as a company, and Mundra is the largest private port. However, Kolkata Port is actually a riverine port located on the Hooghly River, rather than being situated directly on the coastal sea front.Explanation
Paradip is a major port located on the East Coast of India in the state of Odisha. In contrast, Kandla, Mormugao, and New Mangalore are all major ports situated along the West Coast. This geographical distinction is fundamental for understanding trade routes, as west coast ports primarily serve trade with Europe and the Middle East, while east coast ports focus on Southeast Asia.Explanation
The Syama Prasad Mookerjee Port in Kolkata is a riverine port located on the Hooghly River, which naturally carries a heavy load of sediment. This leads to continuous siltation in the shipping channels, necessitating constant and expensive dredging to maintain the depth required for large vessels. Its inland location makes it unique but also highly dependent on active river management for sustained operations.| Major Port | Distinctive Feature/State |
|---|---|
| A. Mormugao | i. Deepest landlocked and protected port |
| B. Visakhapatnam | ii. Located at the entrance of the Zuari estuary (Goa) |
| C. Kochi | iii. Riverine port acting as a subsidiary to Kolkata |
| D. Haldia | iv. Located at the head of Vembanad Kayal |
Explanation
Major ports have distinctive geographical and functional features. Mormugao is located at the Zuari estuary in Goa, and Visakhapatnam is known for being a deep, landlocked, and protected harbor. Kochi is situated at the head of the Vembanad Kayal, and Haldia serves as a vital riverine subsidiary port to Kolkata. These features determine the types of cargo handled and the operational efficiency of each port.Explanation
The Sagarmala Project is a comprehensive programme that includes modernizing existing ports as well as developing new ones. Its primary goals are port-led industrialization, reducing logistics costs, and enhancing connectivity between ports and the hinterland. It also places a strong emphasis on coastal community development and promoting coastal shipping. Therefore, focusing exclusively on new ports is not a correct description of this multi-faceted initiative.Statement I: Sagarmala envisions the creation of Coastal Economic Zones (CEZs) near major ports.
Statement II: Coastal Economic Zones reduce logistics costs by bringing manufacturing closer to the point of export and import.
Explanation
Sagarmala aims to establish Coastal Economic Zones near major ports to create industrial hubs close to maritime gateways. By situating manufacturing and processing units near ports, the cost and time required for transporting goods for export or import are significantly reduced. This strategic integration of industrial zones with port infrastructure is designed to enhance India’s trade competitiveness and drive regional economic development through efficient logistics.Answer key for these questions
| Q | Correct answer |
|---|---|
| 681 | (c) Extremely high fuel costs compared to road transport |
| 682 | (a) Both A and R are true and R is the correct explanation of A. |
| 683 | (c) Assisting farmers in transporting products to improve value realization. |
| 684 | (b) NW-1 (Ganga) |
| 685 | (a) I, II, III and IV |
| 686 | (c) Paradip |
| 687 | (a) Riverine location on the Hooghly river prone to heavy siltation. |
| 688 | (a) A-ii, B-i, C-iv, D-iii |
| 689 | (b) Its sole focus is the construction of new major ports without upgrading existing ones. |
| 690 | (a) Both Statement I and Statement II are correct, and Statement II explains Statement I. |
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.