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UPSC Economics PYQs 2026 | Vaidra | Vaidra
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Economics UPSC PYQ 2026

14 questions from the UPSC 2026 examination.

14 questions

1Medium2 marks

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 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
2Medium2 marks

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 Model
BAffiliate Revenue Model
CTransaction Fee Revenue Model
DAgency Revenue Model
3Medium2 marks

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 only
B1, 2 and 3
C1 and 3 only
D2 only
4Medium2 marks

With reference to different Committees in India, consider the following details : Sl. No.CommitteeObjectiveOrganization under which it was formed1.R.N. Malhotra CommitteeComprehensive reforms of Insurance sector in IndiaInsurance Regulatory and Development Authority of India2.L.C. Gupta CommitteePreparing a roadmap for the introduction of derivatives trading in IndiaSecurities and Exchange Board of India3.Urjit R. Patel CommitteePreparing a roadmap for reforming bank lending to the Housing sectorReserve Bank of India4.Y.H. Malegam CommitteePreparing a roadmap for reforms in Microfinance sector in IndiaReserve Bank of India In which of the above rows are all the details correctly matched ?

A2 only
B2 and 3
C1, 3 and 4
D2 and 4
5Medium2 marks

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 spending
BA situation where Government borrowing leads to higher interest rates, which reduces private investment
CA situation where an increase in taxes leads to increased private sector investment
DA situation where Government spending has no impact on aggregate demand
6Medium2 marks

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 coverage
BBanking access, GDP contribution, and Financial literacy
CAccess, Usage, and Quality
DAccess, Affordability, and Transparency
7Medium2 marks

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 3
B2 only
C2 and 3 only
D1 only
8Medium2 marks

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 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
9Medium2 marks

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 x 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 3
B2 and 3 only
C1 and 2 only
D1 and 3 only
10Medium2 marks

Which among the following is/are the objective(s) of the Rainfed Area Development (RAD) initiative under the National Mission for Sustainable Agriculture (NMSA) ? 1. Encouraging monoculture in rainfed areas 2. Increasing rice cultivation in irrigated regions 3. Enhancing productivity and minimising climatic risks through Integrated Farming Systems (IFS) Select the answer using the code given below :

A1 only
B1 and 2
C3 only
D2 and 3
11Medium1 mark

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.

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
12Medium2 marks

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.
13Medium2 marks

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

AGreen Bond
BSocial Bond
CSustainability Bond
DSovereign Bond
14Medium2 marks

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 4
B1, 2 and 3
C4 only
D2, 3 and 4
Economics — All Years|All Subjects