MCQs on the Economic Survey 2024-25 UPSC

Looking for a comprehensive set of UPSC-focused MCQs based on the Economic Survey 2024-25? You’re in the right place! This article provides 50+ carefully crafted MCQs with detailed answers and explanations, covering key highlights like GDP growth, inflation, exports, FDI, agriculture, and infrastructure development. Whether you're preparing for Prelims or Mains, these questions are designed to test your factual knowledge and conceptual understanding of India’s economic outlook. Dive in to boost your UPSC preparation and stay ahead in the competition!

 

UPSC Civil Services Examination, Previous Year Questions (PYQs)  

UPSC Prelims  

Q. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if: (2018)

(a) Industrial output fails to keep pace with agricultural output.  

(b) Agricultural output fails to keep pace with industrial output.  

(c) Poverty and unemployment increase.  

(d) Imports grow faster than exports.  

Ans: (c)  

Q. In a given year in India, official poverty lines are higher in some States than in others because: (2019)

(a) Poverty rates vary from State to State  

(b) Price levels vary from State to State  

(c) Gross State Product varies from State to State  

(d) Quality of public distribution varies from State to State  

Ans: (b)  

Fact-Based Questions

1. What is India’s projected GDP growth for FY25?
a) 6.0%
b) 6.4%
c) 6.8%
d) 7.2%

Answer: b) 6.4%
Explanation: The Economic Survey 2024-25 estimates India’s real GDP growth at 6.4% for FY25.

 

2. What was the growth rate of India’s services exports during April-November FY25?
a) 5.7%
b) 8.0%
c) 12.8%
d) 15.0%

Answer: c) 12.8%
Explanation: Services export growth surged to 12.8% during April-November FY25.

 

3. What was India’s forex reserve as of December 2024?
a) USD 550 billion
b) USD 600 billion
c) USD 640.3 billion
d) USD 700 billion

Answer: c) USD 640.3 billion
Explanation: India’s forex reserves stood at USD 640.3 billion as of December 2024.

 

4. What is the corpus of the Self-Reliant India Fund launched for MSMEs?
a) ₹20,000 crore
b) ₹30,000 crore
c) ₹50,000 crore
d) ₹1,00,000 crore

Answer: c) ₹50,000 crore
Explanation: The Self-Reliant India Fund has a corpus of ₹50,000 crore.

 

5. What is the estimated Kharif foodgrain production for 2024-25?
a) 1500 LMT
b) 1647.05 LMT
c) 1700 LMT
d) 1800 LMT

Answer: b) 1647.05 LMT
Explanation: Kharif foodgrain production is estimated at 1647.05 lakh metric tonnes (LMT) in 2024-25.

 

6. What was India’s unemployment rate in 2023-24?
a) 3.2%
b) 4.0%
c) 5.0%
d) 6.0%

Answer: a) 3.2%
Explanation: The unemployment rate declined to 3.2% in 2023-24.

 

7. What is the current account deficit (CAD) as a percentage of GDP in Q2 FY25?
a) 1.2%
b) 2.0%
c) 3.0%
d) 4.0%

Answer: a) 1.2%
Explanation: India’s current account deficit (CAD) was 1.2% of GDP in Q2 FY25.

 

8. What is the capital-to-risk-weighted assets ratio (CRAR) for Scheduled Commercial Banks as of September 2024?
a) 14%
b) 16.7%
c) 18%
d) 20%

Answer: b) 16.7%
Explanation: The CRAR for Scheduled Commercial Banks stood at 16.7% as of September 2024.

 

9. What is the global economic growth projection by the IMF for the next five years?
a) 2.5%
b) 3.2%
c) 4.0%
d) 5.0%

Answer: b) 3.2%
Explanation: The IMF projects global growth to average around 3.2% over the next five years.

 

10. What is the Gini coefficient for rural areas in 2023-24?
a) 0.237
b) 0.266
c) 0.284
d) 0.314

Answer: a) 0.237
Explanation: The Gini coefficient for rural areas declined to 0.237 in 2023-24.

 

Concept-Based Questions

11. What does the Economic Survey 2024-25 advocate to accelerate economic growth?
a) Increased taxation
b) Deregulation
c) Higher import tariffs
d) Subsidy cuts

Answer: b) Deregulation
Explanation: The Survey advocates for systematic deregulation to boost economic growth.

 

12. Which sector is expected to drive India’s agricultural growth in FY25?
a) Horticulture
b) Livestock
c) Fisheries
d) All of the above

Answer: d) All of the above
Explanation: Key drivers of agricultural growth are horticulture, livestock, and fisheries.

 

13. What is the primary objective of the National Green Hydrogen Mission?
a) Promote renewable energy
b) Reduce carbon emissions
c) Boost green hydrogen production
d) All of the above

Answer: d) All of the above
Explanation: The mission aims to promote renewable energy, reduce carbon emissions, and boost green hydrogen production.

 

14. What is the significance of India’s forex reserves covering 10.9 months of imports?
a) It ensures currency stability.
b) It reduces external debt.
c) It safeguards against global shocks.
d) All of the above.

Answer: d) All of the above
Explanation: Forex reserves provide stability, reduce external vulnerabilities, and safeguard against global shocks.

 

15. What is the key focus of Ease of Doing Business (EoDB) 2.0?
a) Tax reforms
b) Deregulation
c) Export promotion
d) Infrastructure development

Answer: b) Deregulation
Explanation: EoDB 2.0 focuses on systematic deregulation to improve the business environment.

 

16. Why is the services sector performing better than manufacturing globally in 2024?
a) Weak external demand for goods
b) Supply chain disruptions
c) Higher demand for services
d) All of the above

Answer: d) All of the above
Explanation: The services sector outperformed manufacturing due to weak external demand, supply chain disruptions, and higher demand for services.

 

17. What is the role of the Self-Reliant India Fund in supporting MSMEs?
a) Providing loans
b) Offering equity funding
c) Reducing taxes
d) Subsidizing exports

Answer: b) Offering equity funding
Explanation: The fund provides equity funding to MSMEs with high growth potential.

 

18. What is the impact of declining out-of-pocket health expenditure in India?
a) Increased financial burden on households
b) Reduced financial burden on households
c) Higher government debt
d) Lower healthcare quality

Answer: b) Reduced financial burden on households
Explanation: Declining out-of-pocket expenses reduce the financial burden on households.

 

19. What is the significance of India’s BSE stock market capitalisation to GDP ratio being 136%?
a) It reflects a strong equity market.
b) It indicates overvaluation of stocks.
c) It shows low investor confidence.
d) It highlights a weak economy.

Answer: a) It reflects a strong equity market.
Explanation: A high ratio indicates a robust and growing equity market.

 

20. What is the primary reason for the decline in India’s unemployment rate to 3.2%?
a) Post-pandemic recovery
b) Increased formalisation of jobs
c) Higher rural employment
d) All of the above

Answer: d) All of the above
Explanation: The decline is attributed to post-pandemic recovery, increased formalisation, and higher rural employment.

 

Mixed Questions (Fact + Concept)

21. What is the expected growth rate of the industrial sector in FY25, and what factors support this growth?
a) 5.0% - Agriculture and services
b) 6.2% - Construction and utilities
c) 7.0% - Exports and manufacturing
d) 8.0% - Mining and energy

Answer: b) 6.2% - Construction and utilities
Explanation: The industrial sector is estimated to grow by 6.2%, supported by construction and utilities.

 

22. What is the share of government health expenditure in total health expenditure in FY22, and what does this indicate?
a) 29% - Low government spending
b) 48% - Increased public healthcare investment
c) 62% - High out-of-pocket expenses
d) 39% - Reduced private sector role

Answer: b) 48% - Increased public healthcare investment
Explanation: The share of government health expenditure increased to 48%, indicating higher public investment in healthcare.

 

23. What is the growth rate of social services expenditure between FY21 and FY25, and what does it reflect?
a) 10% - Stagnant social development
b) 15% - Focus on welfare and development
c) 20% - Overemphasis on subsidies
d) 25% - Excessive government spending

Answer: b) 15% - Focus on welfare and development
Explanation: A 15% growth rate reflects increased focus on social welfare and development.

 

24. What is the significance of India’s forex reserves covering 90% of external debt?
a) It ensures debt repayment capacity.
b) It reduces reliance on foreign aid.
c) It strengthens the rupee.
d) All of the above.

Answer: d) All of the above
Explanation: Forex reserves covering external debt ensure repayment capacity, reduce reliance on foreign aid, and strengthen the rupee.

 

25. What is the role of collaborative efforts between government, private sector, and academia in AI adoption?
a) To minimize adverse societal effects
b) To increase AI-related unemployment
c) To reduce AI research funding
d) To limit AI applications

Answer: a) To minimize adverse societal effects
Explanation: Collaboration is essential to minimize adverse effects of AI-driven transformation.

 

26. What is the impact of declining Gini coefficient in rural and urban areas?
a) Increased inequality
b) Reduced inequality
c) Stagnant income levels
d) Higher poverty rates

Answer: b) Reduced inequality
Explanation: A declining Gini coefficient indicates reduced income inequality.

 

27. What is the significance of India’s services exports securing the seventh-largest share globally?
a) It reflects India’s competitiveness.
b) It indicates a decline in manufacturing.
c) It highlights over-reliance on services.
d) It shows weak global demand.

Answer: a) It reflects India’s competitiveness.
Explanation: A high global share in services exports underscores India’s competitiveness.

 

28. What is the primary reason for the mixed effects of above-average monsoons on the industrial sector?
a) Boosted agriculture but disrupted mining and construction
b) Increased manufacturing exports
c) Reduced rural demand
d) Lowered energy consumption

Answer: a) Boosted agriculture but disrupted mining and construction
Explanation: Above-average monsoons supported agriculture but disrupted mining and construction activities.

 

29. What is the significance of India’s Manufacturing PMI remaining in the expansionary zone?
a) It indicates economic contraction.
b) It reflects robust industrial growth.
c) It shows declining demand.
d) It highlights reduced production.

Answer: b) It reflects robust industrial growth.
Explanation: A PMI above 50 indicates expansion and robust industrial growth.

 

30. What is the primary goal of the PM-Surya Ghar: Muft Bijli Yojana?
a) To provide free electricity to rural households
b) To promote solar energy adoption
c) To reduce coal consumption
d) To increase wind energy production

Answer: b) To promote solar energy adoption
Explanation: The scheme aims to boost solar energy adoption in households.

 

 

Fact-Based Questions

31. What was the growth rate of India’s merchandise exports during April-December 2024?
a) 1.6%
b) 5.2%
c) 6.0%
d) 12.8%

Answer: a) 1.6%
Explanation: India’s merchandise exports grew by 1.6% year-on-year during April-December 2024.

 

32. What was the growth rate of India’s merchandise imports during April-December 2024?
a) 1.6%
b) 5.2%
c) 6.0%
d) 12.8%

Answer: b) 5.2%
Explanation: Merchandise imports rose by 5.2% during the same period.

 

33. What is the share of out-of-pocket expenditure in total health expenditure in FY22?
a) 29%
b) 39.4%
c) 48%
d) 62.6%

Answer: b) 39.4%
Explanation: The share of out-of-pocket expenditure declined to 39.4% in FY22.

 

34. What is the target of the PM-KUSUM scheme?
a) Promote solar farming
b) Provide free electricity
c) Reduce coal consumption
d) Increase wind energy production

Answer: a) Promote solar farming
Explanation: PM-KUSUM aims to promote solar farming and reduce dependence on conventional energy sources.

 

35. What is the estimated growth rate of the services sector in FY25?
a) 5.0%
b) 6.2%
c) 7.2%
d) 8.0%

Answer: c) 7.2%
Explanation: The services sector is expected to grow at 7.2% in FY25.

 

Concept-Based Questions

36. What is the significance of India’s forex reserves covering approximately 90% of external debt?
a) It ensures debt repayment capacity.
b) It reduces reliance on foreign aid.
c) It strengthens the rupee.
d) All of the above.

Answer: d) All of the above
Explanation: Forex reserves covering external debt ensure repayment capacity, reduce reliance on foreign aid, and strengthen the rupee.

 

37. What is the primary reason for the decline in India’s unemployment rate to 3.2%?
a) Post-pandemic recovery
b) Increased formalisation of jobs
c) Higher rural employment
d) All of the above

Answer: d) All of the above
Explanation: The decline is attributed to post-pandemic recovery, increased formalisation, and higher rural employment.

 

38. What is the role of the Self-Reliant India Fund in supporting MSMEs?
a) Providing loans
b) Offering equity funding
c) Reducing taxes
d) Subsidizing exports

Answer: b) Offering equity funding
Explanation: The fund provides equity funding to MSMEs with high growth potential.

 

39. What is the impact of declining out-of-pocket health expenditure in India?
a) Increased financial burden on households
b) Reduced financial burden on households
c) Higher government debt
d) Lower healthcare quality

Answer: b) Reduced financial burden on households
Explanation: Declining out-of-pocket expenses reduce the financial burden on households.

 

40. What is the significance of India’s BSE stock market capitalisation to GDP ratio being 136%?
a) It reflects a strong equity market.
b) It indicates overvaluation of stocks.
c) It shows low investor confidence.
d) It highlights a weak economy.

Answer: a) It reflects a strong equity market.
Explanation: A high ratio indicates a robust and growing equity market.

 

 

Read More: Economics Survey 2024-25

Mixed Questions (Fact + Concept)

41. What is the expected growth rate of the industrial sector in FY25, and what factors support this growth?
a) 5.0% - Agriculture and services
b) 6.2% - Construction and utilities
c) 7.0% - Exports and manufacturing
d) 8.0% - Mining and energy

Answer: b) 6.2% - Construction and utilities
Explanation: The industrial sector is estimated to grow by 6.2%, supported by construction and utilities.

 

42. What is the share of government health expenditure in total health expenditure in FY22, and what does this indicate?
a) 29% - Low government spending
b) 48% - Increased public healthcare investment
c) 62% - High out-of-pocket expenses
d) 39% - Reduced private sector role

Answer: b) 48% - Increased public healthcare investment
Explanation: The share of government health expenditure increased to 48%, indicating higher public investment in healthcare.

 

43. What is the growth rate of social services expenditure between FY21 and FY25, and what does it reflect?
a) 10% - Stagnant social development
b) 15% - Focus on welfare and development
c) 20% - Overemphasis on subsidies
d) 25% - Excessive government spending

Answer: b) 15% - Focus on welfare and development
Explanation: A 15% growth rate reflects increased focus on social welfare and development.

 

44. What is the significance of India’s forex reserves covering 90% of external debt?
a) It ensures debt repayment capacity.
b) It reduces reliance on foreign aid.
c) It strengthens the rupee.
d) All of the above.

Answer: d) All of the above
Explanation: Forex reserves covering external debt ensure repayment capacity, reduce reliance on foreign aid, and strengthen the rupee.

 

45. What is the role of collaborative efforts between government, private sector, and academia in AI adoption?
a) To minimize adverse societal effects
b) To increase AI-related unemployment
c) To reduce AI research funding
d) To limit AI applications

Answer: a) To minimize adverse societal effects
Explanation: Collaboration is essential to minimize adverse effects of AI-driven transformation.

 

46. What is the impact of declining Gini coefficient in rural and urban areas?
a) Increased inequality
b) Reduced inequality
c) Stagnant income levels
d) Higher poverty rates

Answer: b) Reduced inequality
Explanation: A declining Gini coefficient indicates reduced income inequality.

 

47. What is the significance of India’s services exports securing the seventh-largest share globally?
a) It reflects India’s competitiveness.
b) It indicates a decline in manufacturing.
c) It highlights over-reliance on services.
d) It shows weak global demand.

Answer: a) It reflects India’s competitiveness.
Explanation: A high global share in services exports underscores India’s competitiveness.

 

48. What is the primary reason for the mixed effects of above-average monsoons on the industrial sector?
a) Boosted agriculture but disrupted mining and construction
b) Increased manufacturing exports
c) Reduced rural demand
d) Lowered energy consumption

Answer: a) Boosted agriculture but disrupted mining and construction
Explanation: Above-average monsoons supported agriculture but disrupted mining and construction activities.

 

49. What is the significance of India’s Manufacturing PMI remaining in the expansionary zone?
a) It indicates economic contraction.
b) It reflects robust industrial growth.
c) It shows declining demand.
d) It highlights reduced production.

Answer: b) It reflects robust industrial growth.
Explanation: A PMI above 50 indicates expansion and robust industrial growth.

 

50. What is the primary goal of the PM-Surya Ghar: Muft Bijli Yojana?
a) To provide free electricity to rural households
b) To promote solar energy adoption
c) To reduce coal consumption
d) To increase wind energy production

Answer: b) To promote solar energy adoption
Explanation: The scheme aims to boost solar energy adoption in households.

51. The Economic Survey of India is presented by:
a) The Prime Minister of India
b) The Chief Economic Adviser
c) The Union Finance Minister
d) The President of India

Answer: c) The Union Finance Minister

 

52. Which division of the Ministry of Finance prepares the Economic Survey?
a) Budget Division
b) Economic Division
c) Revenue Division
d) Expenditure Division

Answer: b) Economic Division

 

53. When was the Economic Survey first presented as a separate document from the Union Budget?
a) 1950-51
b) 1964
c) 1971
d) 1991

Answer: b) 1964

 

54. What is the primary purpose of the Economic Survey?
a) To announce new government schemes
b) To assess India's economic condition and provide an outlook for the coming year
c) To present the annual budget of the government
d) To review the performance of state governments

Answer: b) To assess India's economic condition and provide an outlook for the coming year

 

55. Who supervises the preparation of the Economic Survey?
a) The Prime Minister of India
b) The Union Finance Minister
c) The Chief Economic Adviser
d) The Governor of the Reserve Bank of India

Answer: c) The Chief Economic Adviser

 

 Source: PIB