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 711–720 of 848 questions
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RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q711. Consider the following statements regarding the logistics sector in India: I. The LEADS (Logistics Ease Across Different States) index is released by the Ministry of Commerce and Industry. II. High logistics costs negatively impact the global competitiveness of Indian exports. III. Multimodal Logistics Parks (MMLPs) aim to reduce freight costs and vehicular pollution. IV. Indian logistics are currently heavily skewed towards rail transport, which carries 70 percent of total freight. Which of the above statement(s) is/are correct?
Explanation
The LEADS index helps monitor logistics efficiency across states, while high costs are known to hurt export competitiveness. Multimodal Logistics Parks are being developed to reduce freight costs and pollution. Currently, Indian logistics are heavily skewed towards road transport, which carries the majority of freight, rather than rail. Transitioning more freight to rail is a key objective for improving overall national efficiency.
RAS PrelimsIndian Economy · Energy, Transportation and Communication
Q712. Consider the following steps in the evolution of space communication in India: I. Launch of SITE (Satellite Instructional Television Experiment) II. Launch of INSAT-1B III. Launch of GSAT-14 with indigenous cryogenic engine IV. Launch of GSAT-24 for direct-to-home services Arrange them in correct chronological sequence:
Explanation
India’s space communication has evolved from the early SITE experiment in the 1970s to the launch of the INSAT-1B satellite for operational services. Later milestones include the development of the indigenous cryogenic engine for GSAT-14 and the recent launch of GSAT-24 for high-demand DTH services. This progression reflects India’s growing technological self-reliance and its expanding capacity to meet diverse national communication needs.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q713. Which of the following best defines the "skill gap" in the context of the Indian labor market?
Explanation
The concept of a skill gap identifies a significant mismatch between the specific competencies possessed by the labor force and the actual requirements of the industry. This phenomenon often leads to high unemployment rates among educated youth while industries struggle to find qualified personnel. Addressing this misalignment is critical for enhancing national productivity and economic growth.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q714. Match the sub-missions under the National Skill Development Mission in List I with their core objectives in List II:
Sub-missions
Core Objectives
A. Institutional Training
i. Coordinating skill efforts across various Central and State ministries
B. Convergence
ii. Upgrading ITIs and improving training delivery
C. Trainers
iii. Ensuring global mobility of skilled Indian workers
D. Overseas Employment
iv. Improving the quality and availability of vocational teachers
Explanation
The National Skill Development Mission utilizes specialized sub-missions to streamline vocational training. Institutional training focuses on upgrading Industrial Training Institutes for better delivery. Convergence ensures unified efforts across various ministries. The trainers sub-mission improves teacher quality, while overseas employment initiatives facilitate global mobility for the Indian workforce. These components collectively aim to create a highly skilled and employable labor pool.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q715. Which of the following statements regarding the National Skill Development Corporation (NSDC) is incorrect?
Explanation
The National Skill Development Corporation is a unique public-private partnership where the private sector holds a majority stake of fifty-one percent. The Government of India, through the Ministry of Skill Development and Entrepreneurship, maintains the remaining forty-nine percent of the equity. This structure allows for industry-led initiatives in the skilling landscape while receiving strategic government support.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q716. Consider the following statements regarding the Pradhan Mantri Kaushal Vikas Yojana (PMKVY): I. It is the flagship scheme of the Ministry of Skill Development & Entrepreneurship. II. Recognition of Prior Learning (RPL) is a key component to certify individuals with informally acquired skills. III. The scheme places the entire financial burden of training on the enrolled candidates. Which of the above statement(s) is/are correct?
Explanation
The Pradhan Mantri Kaushal Vikas Yojana serves as the premier scheme for skill certification under the Ministry of Skill Development and Entrepreneurship. It incorporates Recognition of Prior Learning to validate competencies acquired through informal experience. Unlike many vocational programs, the scheme provides free training and monetary rewards, ensuring that the financial burden does not fall on candidates.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q717. The Skill India Mission, launched in 2015, originally set a quantitative target to train a specific number of individuals by the year 2022. What was this target?
Explanation
When the Skill India Mission was officially inaugurated in July 2015, the government established an ambitious quantitative objective. The primary goal was to provide vocational training and certification to over forty crore individuals by the year 2022. This target encompassed several flagship schemes designed to improve employability and standardise training protocols across diverse industrial sectors nationwide.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q718. Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): Industrial Training Institutes (ITIs) in India have increasingly adopted the Dual System of Training (DST). Reason (R): The Dual System of Training bridges the gap between theoretical learning and practical industry requirements by integrating on-the-job training. In the context of the above statements, which one of the following is correct?
Explanation
Industrial Training Institutes are adopting the Dual System of Training to better prepare students for the modern job market. This model combines theoretical classroom education with practical on-the-job training within industrial units. By allowing students to gain real-world experience during their course, the system effectively bridges the historical gap between vocational education and actual industrial requirements.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q719. Under the National Apprenticeship Promotion Scheme (NAPS), what is the maximum percentage of the prescribed stipend that the Government of India reimburses to the employer?
Explanation
The National Apprenticeship Promotion Scheme provides financial incentives to encourage establishments to engage more apprentices. Under this initiative, the Government of India reimburses twenty-five percent of the prescribed monthly stipend paid to each apprentice, capped at fifteen hundred rupees. This financial support reduces the burden on employers, particularly small enterprises, while promoting essential hands-on learning opportunities.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q720. Match the types of unemployment in List I with their defining characteristics in List II:
Types of Unemployment
Defining Characteristics
A. Structural Unemployment
i. Temporary unemployment when workers are transitioning between jobs
B. Frictional Unemployment
ii. More workers are engaged in a job than actually required
C. Cyclical Unemployment
iii. Job losses due to an economic recession or downturn
D. Disguised Unemployment
iv. Mismatch between the skills workers possess and the skills demanded by industry
Explanation
Different types of unemployment reflect various economic conditions. Structural issues arise from a mismatch between worker skills and industry needs. Frictional unemployment occurs during brief transitions between jobs. Cyclical trends are linked to economic downturns and recessions.
Answer key for these questions
Q
Correct answer
711
(b) I, II and III
712
(a) I, II, III, IV
713
(b) Disparity between workforce skills and those demanded by employers
714
(b) A-ii, B-i, C-iv, D-iii
715
(c) The Government of India holds 100 percent of the equity base of NSDC.
716
(a) I and II only
717
(c) 40 crore individuals
718
(a) Both A and R are true and R is the correct explanation of A.
719
(d) 25 percent
720
(a) A-iv, B-i, C-iii, D-ii
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.
