Indian Economy PYQs

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1. Prelims 2026Q39International Trade & WTO

   Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry ?

   1.It allows Indian exporters to compete in high-end markets that prioritise chemical-free products.

   2.It confirms that Eri Silk meets international safety, environmental, and quality standards, enabling its entry into premium eco-conscious markets.

   Select the answer using the code given below :

   a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
2. Prelims 2026Q52Industry & Infrastructure

   An e-commerce revenue model where the seller has control over pricing but doesn’t keep products in stock and instead transfers customer orders and shipment details to a third-party supplier, who then ships the goods directly to the customer, is called :

   aDropshipping ModelbAffiliate Revenue ModelcTransaction Fee Revenue ModeldAgency Revenue Model
3. Prelims 2026Q53Money & Banking

   Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?

   aCredit access, Insurance depth, and Pension coveragebBanking access, GDP contribution, and Financial literacycAccess, Usage, and QualitydAccess, Affordability, and Transparency
4. Prelims 2026Q54Industry & Infrastructure

   Which one of the following best describes the key objective of India’s ‘Open Network for Digital Commerce’ (ONDC) initiative ?

   aTo allow government control over all digital commerce transactionsbTo replace private e-commerce playerscTo break the dominance of large e-commerce platforms by enabling interoperability across networksdTo mandate UPI-based payments for all online transactions
5. Prelims 2026Q55Money & Banking

   Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?

   aUPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency.bIn case of UPI, settlement for end users happens instantly as the money gets immediately debited or credited but in case of Digital Rupee, there is no settlement as the wallet balance gets transferred to another wallet.cUPI transactions are recorded by banks and reflected in bank statements but in case of Digital Rupee, no data is captured in bank statements as transactions are from one wallet to another.dIn both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks.
6. Prelims 2026Q56Financial Markets & Institutions

   Which of the following statements about Real-World Assets (RWA) Tokenization are correct ?

   1.Tokenization is the process of turning real world assets into digital tokens using blockchain technology.

   2.Tokenization of real world assets offers 24 × 7 access, promoting financial inclusion.

   3.Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

   Select the answer using the code given below :

   a1, 2 and 3b2 and 3 onlyc1 and 2 onlyd1 and 3 only
7. Prelims 2026Q57Financial Markets & Institutions

   A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :

   aGreen BondbSocial BondcSustainability BonddSovereign Bond
8. Prelims 2026Q58Financial Markets & Institutions

   Which of the following statements about M1xchange’s role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct ?

   1.M1xchange provides collateral based loans to MSMEs.

   2.M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.

   3.M1xchange functions as a credit rating agency for MSMEs.

   Select the answer using the code given below :

   a1, 2 and 3b2 onlyc2 and 3 onlyd1 only
9. Prelims 2026Q59Fiscal Policy & Budget

   Which one of the following best describes the ‘Crowding Out Effect’ in the context of fiscal policy ?

   aA situation where private investment increases due to increased Government spendingbA situation where Government borrowing leads to higher interest rates, which reduces private investmentcA situation where an increase in taxes leads to increased private sector investmentdA situation where Government spending has no impact on aggregate demand
10. Prelims 2026Q61Financial Markets & Institutions

    Which of the following statements about insurance in aviation sector is/are correct ?

    1.‘Aviation Hull Insurance’ covers the physical aircraft, including the body, engine, and on-board equipment.

    2.Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault.

    Select the answer using the code given below :

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
11. Prelims 2026Q62Financial Markets & Institutions

    Which of the following statements about Crowdfunding is/are correct ?

    1.Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project.

    2.Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures.

    Select the answer using the code given below :

    a1 onlyb2 onlycBoth 1 and 2dNeither 1 nor 2
12. Prelims 2026Q63Financial Markets & Institutions

    With reference to different Committees in India, consider the following details :

    Sl. No.	Committee	Objective	Organization under which it was formed
    1.	R.N. Malhotra Committee	Comprehensive reforms of Insurance sector in India	Insurance Regulatory and Development Authority of India
    2.	L.C. Gupta Committee	Preparing a roadmap for the introduction of derivatives trading in India	Securities and Exchange Board of India
    3.	Urjit R. Patel Committee	Preparing a roadmap for reforming bank lending to the Housing sector	Reserve Bank of India
    4.	Y.H. Malegam Committee	Preparing a roadmap for reforms in Microfinance sector in India	Reserve Bank of India

    In which of the above rows are all the details correctly matched ?

    a2 onlyb2 and 3c1, 3 and 4d2 and 4
13. Prelims 2026Q64Money & Banking

    Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India :

    1.NBFCs cannot accept demand deposits.

    2.All the NBFCs operating in India have to be registered with the RBI.

    3.NBFCs form part of the payment and settlement system and can issue cheque drawn on itself.

    4.Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs.

    Which of the statements given above is/are correct ?

    a1 and 4b1, 2 and 3c4 onlyd2, 3 and 4
14. Prelims 2026Q65Poverty, Unemployment & Social Sector

    Consider the following statements about Multidimensional Poverty Index (MPI) :

    1.MPI is calculated using Alkire-Foster methodology.

    2.MPI calculated by NITI Aayog has a total of twelve indicators.

    3.Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).

    Which of the statements given above is/are correct ?

    a1 and 2 onlyb1, 2 and 3c1 and 3 onlyd2 only
15. Prelims 2025Q1Financial Markets & Institutions

    With reference to investments, consider the following :

    I.Bonds

    II.Hedge Funds

    III.Stocks

    IV.Venture Capital

    How many of the above are treated as Alternative Investment Funds?

    aOnly onebOnly twocOnly threedAll the four
16. Prelims 2025Q2Money & Banking

    Which of the following are the sources of income for the Reserve Bank of India?

    I.Buying and selling Government bonds

    II.Buying and selling foreign currency

    III.Pension fund management

    IV.Lending to private companies

    V.Printing and distributing currency notes

    Select the correct answer using the code given below.

    aI and II onlybII, III and IVcI, III, IV and VdI, II and V
17. Prelims 2025Q3TaxationAnswer disputed

    With reference to the Government of India, consider the following information :

    Organization	Some of its functions	It works under
    I. Directorate of Enforcement	Enforcement of the Fugitive Economic Offenders Act, 2018	Internal Security Division–I, Ministry of Home Affairs
    II. Directorate of Revenue Intelligence	Enforces the Provisions of the Customs Act, 1962	Department of Revenue, Ministry of Finance
    III. Directorate General of Systems and Data Management	Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders	Department of Revenue, Ministry of Finance

    In how many of the above rows is the information correctly matched?

    aOnly onebOnly twocAll the threedNone
18. Prelims 2025Q4Financial Markets & Institutions

    Consider the following statements :

    I.The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).

    II.In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.

    Which of the statements given above is/are correct?

    aI onlybII onlycBoth I and IIdNeither I nor II
19. Prelims 2025Q5Taxation

    Consider the following statements :

    Statement I :

    In India, income from allied agricultural activities like poultry farming and wool rearing in rural areas is exempted from any tax.

    Statement II :

    In India, rural agricultural land is not considered a capital asset under the provisions of the Income-tax Act, 1961.

    Which one of the following is correct in respect of the above statements?

    aBoth Statement I and Statement II are correct and Statement II explains Statement IbBoth Statement I and Statement II are correct but Statement II does not explain Statement IcStatement I is correct but Statement II is not correctdStatement I is not correct but Statement II is correct
20. Prelims 2025Q7Financial Markets & Institutions

    Consider the following statements :

    Statement I :

    As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.

    Statement II :

    Bondholders are lenders to a company whereas stockholders are its owners.

    Statement III :

    For repayment purpose, bondholders are prioritized over stockholders by a company.

    Which one of the following is correct in respect of the above statements?

    aBoth Statement II and Statement III are correct and both of them explain Statement IbBoth Statement I and Statement II are correct and Statement I explains Statement IIcOnly one of the Statements II and III is correct and that explains Statement IdNeither Statement II nor Statement III is correct