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UPSC Economics PYQs 2025 | Vaidra | Vaidra
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Economics UPSC PYQ 2025

59 questions from the UPSC 2025 examination.

59 questions

1Mediummains10 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Explain the factors influencing the decision of the farmers on the selection of high value crops in India. <!--qid:MAINS_2025_GS-III_Q3-->

2Mediummains10 marks
Inclusive growth and issues arising from it

What is Carbon Capture, Utilization and Storage (CCUS)? What is the potential role of CCUS in tackling climate change? <!--qid:MAINS_2025_GS-III_Q7-->

3Medium1 mark

Which of the following are the sources of income for the Reserve Bank of India?[2025] 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 only
BII, III and IV
CI, III, IV and V
DI, II and V
4Easyprelims2 marks
Digital Payments & Financial Inclusion

Consider the following statements in respect of RTGS and NEFT : I. In RTGS, the settlement time is instantaneous while in case of NEFT, it takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?

AI only
BI and II
CI and III
DIII only
5Mediumprelims2 marks
Financial Markets & Capital Markets

Consider the following statements : Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil.

ABoth Statement I and Statement II are correct and Statement II explains Statement I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
6Mediummains15 marks
Inclusive growth and issues arising from it

Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities. <!--qid:MAINS_2025_GS-III_Q14-->

7Medium1 mark

Consider the following statements:[2025] I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
8Mediummains15 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved? <!--qid:MAINS_2025_GS-III_Q12-->

9Mediummains15 marks
Land reforms in India

Examine the factors responsible for depleting groundwater in India. What are the steps taken by the government to mitigate such depletion of groundwater? <!--qid:MAINS_2025_GS-III_Q13-->

10Medium1 mark

Suppose the revenue expenditure is Rs.80,000 crores and the revenue receipts of the Government are Rs.60,000 crores. The Government budget also shows borrowings of Rs.10,000 crores and interest payments of Rs.6,000 crores. Which of the following statements are correct?[2025] I. Revenue deficit is Rs.20,000 crores. II. Fiscal deficit is Rs.10,000 crores. III. Primary deficit is Rs.4,000 crores. Select the correct answer using the code given below.

AI and II only
BII and III only
CI and III only
DI, II and III
11Easyprelims2 marks
Financial Markets & Capital Markets

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 one
BOnly two
COnly three
DAll the four
12Mediummains15 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

What are the major challenges to internal security and peace process in the North-Eastern States? Map the various peace accords and agreements initiated by the government in the past decade. <!--qid:MAINS_2025_GS-III_Q19-->

13Mediumprelims2 marks
Infrastructure & Industry

Consider the following statements : Statement I : In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II : In India, the Central Government has the power to notify minor minerals under the relevant law. 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 I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
14Mediummains10 marks
Economics

Answer the following questions in about 150 words each: <!--qid:MAINS_2025_Economics-I_Q5-->

15Mediummains10 marks
Economics

Answer the following questions in about 150 words each: <!--qid:MAINS_2025_Economics-II_Q1-->

16Mediumprelims2 marks
Infrastructure & Industry

Consider the following activities: I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Production of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

AOnly one
BOnly two
COnly three
DAll the four
17Medium2 marks

Consider the following statements about turmeric during the year 2022&ndash;23: I. India is the largest producer and exporter of turmeric in the world. II. More than 30 varieties of turmeric are grown in India. III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric producing States in India. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
18Medium1 mark

Consider the following statements:[2025] 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 only
BII only
CBoth I and II
DNeither I nor II
19Medium10 marks

Discuss the nature of Jammu and Kashmir Legislative Assembly after the Jammu and Kashmir Reorganization Act, 2019. Briefly describe the powers and functions of the Assembly of the Union Territory of Jammu and Kashmir.

20Medium1 mark

Consider the following activities :[2025] I. Production of crude oil II. Refining, storage and distribution of petroleum III. Marketing and sale of petroleum products IV. Productions of natural gas How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

AOnly one
BOnly two
COnly three
DAll the four
21Mediummains10 marks
Economics

Answer the following questions in about 150 words each: <!--qid:MAINS_2025_Economics-II_Q5-->

22Medium2 marks

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 I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
23Mediumprelims2 marks
Fiscal Policy & Budget

Suppose the revenue expenditure is ₹80,000 crores and the revenue receipts of the Government are ₹60,000 crores. The Government budget also shows borrowings of ₹10,000 crores and interest payments of ₹6,000 crores. Which of the following statements are correct? I. Revenue deficit is ₹20,000 crores. II. Fiscal deficit is ₹10,000 crores. III. Primary deficit is ₹4,000 crores. Select the correct answer using the code given below.

AI and II only
BII and III only
CI and III only
DI, II and III
24Medium1 mark

Consider the following statements:[2025] 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 I
BBoth Statement I and Statement II are correct and Statement I explains Statement II
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
25Mediumprelims2 marks
Financial Markets & Capital Markets

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, bond-holders 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 I
BBoth Statement I and Statement II are correct and Statement I explains Statement II
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
26Mediummains15 marks
Government Budgeting

Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies? <!--qid:MAINS_2025_GS-III_Q11-->

27Mediummains10 marks
Economics

Answer the following questions in about 150 words each: <!--qid:MAINS_2025_Economics-I_Q1-->

28Mediumprelims2 marks
Fiscal Policy & Budget

Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct? I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes. II. 45% of the net proceeds of Union taxes are to be shared with States. III. ₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms. IV. It re-introduced tax-effort criteria to reward fiscal performance. Select the correct answer using the code given below.

AI, II and III
BI, II and IV
CI, III and IV
DII, III and IV
29Medium1 mark

Consider the following statements:[2025] I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
30Easyprelims2 marks
Infrastructure & Industry

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 only
BII only
CBoth I and II
DNeither I nor II
31Medium1 mark

With reference to investments, consider the following:[2025] I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds?

AOnly one
BOnly two
COnly three
DAll the four
32Medium2 marks

Plant Description Question 19. Consider the following pairs: Plant Description I. Cassava : Woody shrub II. Ginger : Herb with pseudostem III. Malabar spinach : Herbaceous climber IV. Mint : Annual shrub V. Papaya : Woody shrub How many of the above pairs are correctly matched?

AOnly two
BOnly three
COnly four
DAll the five
33Medium1 mark

Consider the following statements in respect of RTGS and NEFT :[2025] I. In RTGS, the settlement time is instantaneous while in case of NEFT, is takes some time to settle payments. II. In RTGS, the customer is charged for inward transactions while that is not the case for NEFT. III. Operating hours for RTGS are restricted on certain days while this is not true for NEFT. Which of the statements given above is/are correct?

AI only
BI and II
CI and III
DIII only
34Medium2 marks

Consider the following statements: I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India&rsquo;s stock market has grown rapidly in the recent past even overtaking Hong Kong&rsquo;s at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
35Mediummains15 marks
Major crops-cropping patterns in various parts of the country; different types of irrigation and irrigation systems

How does nanotechnology offer significant advancements in the field of agriculture? How can this technology help to uplift the socio-economic status of farmers? <!--qid:MAINS_2025_GS-III_Q15-->

36Mediummains10 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met? <!--qid:MAINS_2025_GS-III_Q2-->

37Mediumprelims2 marks
Financial Markets & Capital Markets

Consider the following statements : I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India's stock market has grown rapidly in the recent past even overtaking Hong Kong's at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
38Medium2 marks

A country's fiscal deficit stands at 50,000 crores. It is receiving 10,000 crores through non-debt creating capital receipts. The country's interest liabilities are1,500 crores. What is the gross primary deficit?

A48,500 crores
B51,500 crores
C58,500 crores
DNone of the above
39Mediumprelims2 marks
Agriculture & Rural Development

Consider the following statements about the Rashtriya Gokul Mission: I. It is important for the upliftment of rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers. II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner. Which of the statements given above is/are correct?

AI only
BII only
CBoth I and II
DNeither I nor II
40Mediumprelims2 marks
Agriculture & Rural Development

Consider the following statements about turmeric during the year 2022-23: I. India is the largest producer and exporter of turmeric in the world. II. More than 30 varieties of turmeric are grown in India. III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric-producing States in India. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
41Medium1 mark

Consider the following statements:[2025] 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 I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
42Medium2 marks

Consider the following statements: I. Capital receipts create a liability or cause a reduction in the assets of the Government. II. Borrowings and disinvestment are capital receipts. III. Interest received on loans creates a liability of the Government. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
43Medium1 mark

Consider the following statements :[2025] Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. 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 I
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DStatement I is not correct but Statement II is correct
44Medium2 marks

Consider the following statements : Statement I : Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II :Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?

AStatement I is not correct but Statement II is correct
BBoth Statement I and Statement II are correct but Statement II does not explain Statement I
CStatement I is correct but Statement II is not correct
DBoth Statement I and Statement II are correct and Statement II explains Statement I
45Medium1 mark

Consider the following statements:[2025] I. India accounts for a very large portion of all equity option contracts traded globally thus exhibiting a great boom. II. India’s stock market has grown rapidly in the recent past even overtaking Hong Kong’s at some point of time. III. There is no regulatory body either to warn the small investors about the risks of options trading or to act on unregistered financial advisors in this regard. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
46Mediummains15 marks
Inclusive growth and issues arising from it

Write a review on India’s climate commitments under the Paris Agreement (2015) and mention how these have been further strengthened in COP26 (2021). In this direction, how has the first Nationally Determined Contribution intended by India been updated in 2022? <!--qid:MAINS_2025_GS-III_Q18-->

47Mediumprelims2 marks
Banking & Financial Sector

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 only
BII, III and IV
CI, III, IV and V
DI, II and V
48Mediummains10 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Seawater intrusion in the coastal aquifers is a major concern in India. What are the causes of seawater intrusion and the remedial measures to combat this hazard? <!--qid:MAINS_2025_GS-III_Q8-->

49Mediumprelims2 marks
Fiscal Policy & Budget

A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500 crores. What is the gross primary deficit?

A₹ 48,500 crores
B₹ 51,500 crores
C₹ 58,500 crores
DNone of the above
50Mediummains15 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Mineral resources are fundamental to the country’s economy and these are exploited by mining. Why is mining considered an environmental hazard? Explain the remedial measures required to reduce the environmental hazard due to mining. <!--qid:MAINS_2025_GS-III_Q17-->

51Medium1 mark

Consider the following statements about turmeric during the year 2022–23:[2025] I. India is the largest producer and exporter of turmeric in the world. II. More than 30 varieties of turmeric are grown in India. III. Maharashtra, Telangana, Karnataka and Tamil Nadu are major turmeric producing States in India. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
52Medium1 mark

Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD):[2025] I. It provides loans and guarantees to middle income countries. II. It works single-handedly to help developing countries to reduce poverty. III. It was established to help Europe rebuild after the World War II. Which of the statements given above are correct?

AI and II only
BII and III only
CI and III only
DI, II and III
53Easyprelims2 marks
Financial Markets & Capital Markets

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 I
BBoth Statement II and Statement III are correct and only one of them explains Statement I
COnly one of the Statements II and III is correct and that explains Statement I
DNeither Statement II nor Statement III is correct
54Medium15 marks

Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

55Medium1 mark

With reference to the Government of India, consider the following information: Organization. Some of its functions It works under[2025] | Organization       | Some of its Functions      | It Works Under       | | --- | --- | --- | | Directorate of Enforcement     | Enforcement of the Fugitive Economic Offenders Act, 2018      | Internal Security Division-I, Ministry of Home Affairs | | Directorate of Revenue Intelligence   | Enforces the provisions of the Customs Act, 1962     | Department of Revenue, Ministry of Finance   | | 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 one
BOnly two
CAll the three
DNone
56Medium1 mark

A country's fiscal deficit stands at Rs.50,000 crores. It is receiving Rs.10,000 crores through non-debt creating capital receipts. The country's interest liabilities are Rs.1,500 crores. What is the gross primary deficit?[2025]

ARs.48,500 crores
BRs.51,500 crores
CRs.58,500 crores
DNone of the above
57Medium1 mark

Consider the following statements about the Rashtriya Gokul Mission:[2025] I. It is important for the upliftment of rural poor, as majority of low producing indigenous animals are with small and marginal farmers and landless labourers. II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner. Which of the statements given above is/are correct?

AI only
BII only
CBoth I and II
DNeither I nor II
58Mediummains10 marks
Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

Elaborate the scope and significance of supply chain management of agricultural commodities in India. <!--qid:MAINS_2025_GS-III_Q4-->

59Mediummains10 marks
Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Distinguish between the Human Development Index (HDI) and the Inequality-adjusted Human Development Index (IHDI) with special reference to India. Why is the IHDI considered a better indicator of inclusive growth? <!--qid:MAINS_2025_GS-III_Q1-->

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