Industry, infrastructure, poverty, employment and social sector: previous-year questions
70 real UPSC Prelims questions (2011–2026) with the official answer and a clear explanation. 19 of them came in the last five papers.
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Questions per year, counted from the official papers.
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In what way(s) does the Vizhinjam International Seaport represent a structural shift in India's maritime trade and logistics policy ?
- 1. By functioning exclusively as a domestic cargo hub to reduce reliance on coastal shipping and eliminate the need for foreign collaborations.
- 2. By focusing primarily on passenger cruise tourism and heritage shipping to increase Kerala's profile as a maritime heritage destination.
- 3. By leveraging its natural deep draft and strategic location to reduce dependence on foreign trans-shipment ports, enhance revenue retention, and reposition India in regional maritime trade.
Select the answer using the code given below :
Answer (d) & explanation
Only statement 3 explains the shift (d). Statement 3 is right: Vizhinjam, in Kerala, is India's first deep-water container trans-shipment port, built on a PPP model and opened in 2025. It sits close to the main East-West shipping lane with a natural depth of about 18–20 m, so giant mother ships can call here instead of at Colombo, Singapore or Dubai. That keeps freight earnings at home. Statement 1 is wrong: it is an international cargo port. Statement 2 is wrong: it is not a cruise port.
Notice the problem it solves: earlier, about three-quarters of India's trans-shipped cargo was handled at foreign ports. The Adani group runs it. Galathea Bay in Great Nicobar is planned as another trans-shipment hub.
words like "exclusively" and "primarily" in statements 1 and 2. A trans-shipment port lives on foreign ships, so "eliminate foreign collaborations" cannot be right.
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Answer as per the official UPSC answer key.
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 :
Answer (a) & explanation
This is the dropshipping model (a). In dropshipping, the online store sets the price and takes the order but keeps no stock. It passes the order to a third-party supplier, who ships straight to the buyer. Option (b) is wrong: in the affiliate model a site earns a commission only for sending buyers to another seller. Option (c) is wrong: a transaction-fee model charges a cut on each sale made on a platform. Option (d) is wrong: an agency seller acts on behalf of the owner, who controls the price.
Notice the trade-off: dropshipping needs little capital, but the seller earns thinner margins and depends on the supplier's quality and speed. India allows 100% FDI only in the marketplace model of e-commerce, not the inventory model.
the affiliate model also holds no stock. The clue is "the seller has control over pricing": an affiliate does not set the price.
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Answer as per the official UPSC answer key.
Which one of the following best describes the key objective of India's 'Open Network for Digital Commerce' (ONDC) initiative ?
Answer (c) & explanation
ONDC aims to break the dominance of large platforms (c). The Open Network for Digital Commerce, a DPIIT initiative (2021-22), is an open set of rules, like UPI for shopping. A buyer on one app can buy from a seller listed on another app. This interoperability lets small sellers reach buyers without joining a giant platform. Option (a) is wrong: it does not give the government control of transactions. Option (b) is wrong: private players can join; they are not replaced. Option (d) is wrong: it does not force UPI payments.
Notice ONDC's design: it is a not-for-profit company and part of India's Digital Public Infrastructure, along with Aadhaar, UPI and DigiLocker. It now covers food, groceries and mobility too.
options (a), (b) and (d) use strong words: "all", "replace", "mandate". A public digital platform usually opens a market; it does not take it over.
Answer as per the official UPSC answer key.
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 ?
Answer (a) & explanation
Statements 1 and 2 are correct (a). Statement 1 is right: both the global MPI (UNDP and Oxford's OPHI) and NITI Aayog's national MPI use the Alkire-Foster method, across health, education and standard of living. Statement 2 is right: NITI Aayog's MPI has 12 indicators. Statement 3 is wrong: the global MPI has 10 indicators; NITI Aayog added two of its own, maternal health and bank account, so these are not common. So options (b), (c) and (d) fail.
Notice the headline: NITI Aayog estimated that about 24.8 crore people escaped multidimensional poverty between 2013-14 and 2022-23. A person is MPI-poor if deprived in at least one-third of the weighted indicators.
statement 3 names the exact two indicators that make NITI's index different. They are extras, not shared ones.
Answer as per the official UPSC answer key.
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?
Answer (b) & explanation
The PNGRB regulates two of these activities (b). The PNGRB Act, 2006 covers the downstream sector. Item II is right: it covers refining, storage, transport and distribution of petroleum products. Item III is right: it covers marketing and sale of petroleum products and natural gas. Items I and IV are wrong: the Act specifically excludes production of crude oil and natural gas. Upstream exploration and production come under the Petroleum Ministry and the Directorate General of Hydrocarbons.
Notice the PNGRB's other jobs: authorising city gas distribution networks and gas pipelines, and fixing pipeline tariffs. Upstream blocks are now offered under the HELP policy and Open Acreage Licensing rounds.
the Board's name has "natural gas" in it, so "production of natural gas" feels covered. Production is upstream, outside the Act.
Answer as per the official UPSC answer key.
Consider the following statements about 'PM Surya Ghar Muft Bijli Yojana' :
- I. It targets installation of one crore solar rooftop panels in the residential sector.
- II. The Ministry of New and Renewable Energy aims to impart training on installation, operation, maintenance and repairs of solar rooftop systems at grassroot levels.
- III. It aims to create more than three lakhs' skilled manpower through fresh skilling, and up-skilling, under scheme component of capacity building.
Which of the statements given above are correct?
Answer (d) & explanation
All three statements are correct (d). PM Surya Ghar Muft Bijli Yojana (February 2024, MNRE). Statement I is right: it aims at rooftop solar for one crore households, with up to 300 units of free power a month. Statement II is right: the MNRE trains people at the grassroots to install, operate, maintain and repair the systems. Statement III is right: its capacity-building component targets over three lakh skilled workers through fresh skilling and up-skilling. So options (a), (b) and (c) fail.
Notice the money: a central subsidy of up to ₹78,000 for a 3 kW system, and cheap bank loans. Households can sell spare power to the grid through net metering. India's target is 500 GW of non-fossil capacity by 2030.
Answer as per the official UPSC answer key.
Consider the following statements :
- I. Indian Railways have prepared a National Rail Plan (NRP) to create a 'future ready' railway system by 2028.
- II. 'Kavach' is an Automatic Train Protection system developed in collaboration with Germany.
- III. 'Kavach' system consists of RFID tags fitted on track in station section.
Which of the statements given above are not correct?
Answer (a) & explanation
Statements I and II are not correct (a). Statement I is wrong: the National Rail Plan aims at a "future ready" railway by 2030, not 2028. Statement II is wrong: Kavach was developed indigenously by the RDSO with Indian firms, not with Germany. Statement III is right: Kavach uses RFID tags on the track, with on-board and station equipment, to apply brakes when a driver misses a signal or overspeeds. So the incorrect ones are I and II.
Notice the trap: the question asks which are not correct. Kavach is being rolled out on high-density routes like Delhi–Mumbai and Delhi–Howrah, and Kavach 4.0 was approved in 2024. Its spread gained urgency after the Balasore crash (2023).
a "not correct" question with a year changed by two. Read the numbers in the statement slowly.
Answer as per the official UPSC answer key.
Consider the following statements :
- 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?
Answer (c) & explanation
Statements I and III are correct (c). Statement I is right: India joined the US-led Minerals Security Partnership in June 2023, to secure supply chains for critical minerals. Statement III is right: the MMDR Amendment Act, 2023, let the Centre alone auction mining leases and composite licences for 24 critical and strategic minerals. Statement II is wrong: India listed 30 critical minerals in 2023, but must import many of them, such as lithium, cobalt and nickel. So options (a), (b) and (d) fail.
Notice the National Critical Mineral Mission (2025) and KABIL, a state firm that buys mineral assets abroad, such as lithium blocks in Argentina. China dominates the processing of most of these minerals.
"all the 30". India drew up the list because it lacks many of them.
Answer as per the official UPSC answer key.
Consider the following statements :
Statement I :
Circular economy reduces the emissions of greenhouse gases.
Statement II :
Circular economy reduces the use of raw materials as inputs.
Statement III :
Circular economy reduces wastage in the production process.
Which one of the following is correct in respect of the above statements?
Answer (a) & explanation
Both II and III are correct and both explain Statement I (a). A circular economy replaces "take, make, throw" with reduce, reuse, repair and recycle. Statement II is right: it cuts fresh raw material use, saving the energy of mining and processing. Statement III is right: it cuts waste in production, avoiding the emissions of landfills and burning. Both explain Statement I, that it lowers greenhouse gases, so options (b), (c) and (d) fail.
Notice India's tools: Extended Producer Responsibility (EPR) rules for plastic, e-waste and batteries, and Mission LiFE (Lifestyle for Environment). Steel scrap recycling and vehicle scrapping policy also fit this idea, as does biogas from waste under GOBARdhan.
Answer as per the official UPSC answer key.
The total fertility rate in an economy is defined as :
Answer (d) & explanation
TFR is the average number of children a woman would bear (d). The Total Fertility Rate is the average number of live births a woman would have over her child-bearing years (15–49), if current age-wise birth rates held. Option (a) is wrong: that is the crude birth rate, births per 1,000 people a year. Option (b) is wrong: TFR is measured per woman, not per couple. Option (c) is wrong: birth rate minus death rate is the natural growth rate.
Notice the trend: India's TFR fell to 2.0 in NFHS-5 (2019–21), just below the replacement level of 2.1, the level at which a population just replaces itself. Later sample surveys show it slightly lower still. Bihar has the highest TFR and Sikkim the lowest, below 1.1.
option (b) says "a couple". TFR is always measured per woman.
Answer as per the official UPSC answer key.
With reference to the sectors of the Indian economy, consider the following pairs :
| | Economic activity | Sector
| 1. | Storage of agricultural produce | Secondary
| 2. | Dairy farm | Primary
| 3. | Mineral exploration | Tertiary
| 4. | Weaving cloth | Secondary
How many of the pairs given above are correctly matched ?
Answer (b) & explanation
Two pairs are correctly matched (b). The primary sector takes things directly from nature: farming, dairy, fishing, forestry, mining and mineral exploration. The secondary sector changes the form of goods: weaving, manufacturing, construction. The tertiary sector gives services: transport, trade, storage, banking. Pair 2 is right: a dairy farm is primary. Pair 4 is right: weaving cloth is secondary. Pair 1 is wrong: storage of farm produce is a tertiary service. Pair 3 is wrong: mineral exploration is primary.
Notice India's mix: services give over half of GDP, while farming still employs about 45% of workers. This gap, with low manufacturing, is why India pushes Make in India and PLI schemes.
storage happens in a warehouse building, so it feels industrial. It changes nothing in the goods; it is a service.
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Answer as per the official UPSC answer key.
With reference to physical capital in Indian economy, consider the following pairs :
| | Items | Category
| 1. | Farmer's plough | Working capital
| 2. | Computer | Fixed capital
| 3. | Yarn used by the weaver | Fixed capital
| 4. | Petrol | Working capital
How many of the above pairs are correctly matched ?
Answer (b) & explanation
Two pairs are correctly matched (b). Fixed capital is used again and again over many years: a plough, a computer, a machine, a building. Working capital is used up in one round of production: raw materials like yarn, and fuel like petrol, plus cash in hand. Pair 2 is right: a computer is fixed capital. Pair 4 is right: petrol is working capital. Pair 1 is wrong: a farmer's plough is fixed capital. Pair 3 is wrong: yarn used by a weaver is working capital.
Notice that this idea comes straight from the NCERT Class IX economics chapter "The Story of Village Palampur". It lists four factors of production: land, labour, physical capital and human capital.
Answer as per the official UPSC answer key.
With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements :
- 1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
- 2. CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct ?
Answer (a) & explanation
Only statement 1 is correct (a). Statement 1 is right: the CSR Rules, 2014 exclude spending that benefits only the company's own employees or is done in the normal course of business. Statement 2 is wrong: Section 135 of the Companies Act, 2013 requires a company above a set size, with net worth of ₹500 crore, turnover of ₹1,000 crore or net profit of ₹5 crore, to spend at least 2% of its average net profit of the last three years on CSR.
Notice that India was the first country to make CSR spending mandatory by law. Since 2019, unspent money must go to a special account or to funds like the PM CARES or PM's National Relief Fund. Education and health get the most CSR money.
Answer as per the official UPSC answer key.
With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements :
- 1. The entry age group for enrolment in the scheme is 21 to 40 years.
- 2. Age specific contribution shall be made by the beneficiary.
- 3. Each subscriber under the scheme shall receive a minimum pension of ₹3,000 per month after attaining the age of 60 years.
- 4. Family pension is applicable to the spouse and unmarried daughters.
Which of the statements given above is/are correct ?
Answer (b) & explanation
Statements 2 and 3 are correct (b). The PM Shram Yogi Maan-dhan (PM-SYM, 2019) is a voluntary pension scheme for unorganised workers earning up to ₹15,000 a month. Statement 2 is right: the worker pays an age-based monthly amount, and the Centre adds an equal sum. Statement 3 is right: from 60, the subscriber gets an assured ₹3,000 a month. Statement 1 is wrong: entry age is 18 to 40, not 21 to 40. Statement 4 is wrong: on death, only the spouse gets 50% as family pension, not unmarried daughters.
Notice a similar scheme for traders, the NPS-Traders scheme, and Atal Pension Yojana. Workers enrol through Common Service Centres and the e-Shram portal.
two numbers changed slightly: 21 instead of 18, and daughters added to the family pension.
Answer as per the official UPSC answer key.
With reference to India's projects on connectivity, consider the following statements :
- 1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.
- 2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.
- 3. Bangladesh-China-India-Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.
How many of the above statements are correct?
Answer (d) & explanation
None of the statements is correct (d). Statement 1 is wrong: the East-West Corridor links Silchar in Assam to Porbandar in Gujarat, and it was part of NHDP Phase II, not the Golden Quadrilateral, which links Delhi, Mumbai, Chennai and Kolkata. Statement 2 is wrong: the India–Myanmar–Thailand Trilateral Highway runs from Moreh in Manipur to Mae Sot in Thailand, not Chiang Mai. Statement 3 is wrong: the BCIM corridor was planned from Kolkata to Kunming, not from Varanasi.
Notice that each statement has one wrong end-point; UPSC tests exact names. India has gone cool on BCIM because it overlaps China's Belt and Road, preferring the Kaladan project and the Trilateral Highway.
each statement keeps one correct name. UPSC changed only one end of each route.
Answer as per the official UPSC answer key.
Consider the investments in the following assets :
- 1. Brand recognition
- 2. Inventory
- 3. Intellectual property
- 4. Mailing list of clients
How many of the above are considered intangible investments?
Answer (c) & explanation
Three of the four are intangible (c). An intangible asset has value but no physical form. Brand recognition (item 1) is intangible: people pay more for a trusted name. Intellectual property (item 3), such as patents, copyrights and trademarks, is intangible. A mailing list of clients (item 4) is intangible: it is information that brings in business. Item 2 is wrong: inventory means goods in stock, raw material, half-made goods or finished products, so it is a tangible asset you can touch and count.
Notice why this matters: in modern firms like tech companies, most value lies in intangibles such as software, data and brands, not machines. This makes them harder to value, tax and lend against.
Answer as per the official UPSC answer key.
In India, what is the role of the Coal Controller's Organization (CCO) ?
- 1. CCO is the major source of Coal Statistics in Government of India.
- 2. It monitors progress of development of Captive Coal/Lignite blocks.
- 3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas.
- 4. It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below :
Answer (a) & explanation
Statements 1, 2 and 3 are correct (a). The Coal Controller's Organisation, based in Kolkata under the Ministry of Coal, does three things named here. Statement 1 is right: it is the main source of coal statistics in the Government of India. Statement 2 is right: it monitors progress of captive coal and lignite blocks. Statement 3 is right: it hears objections to notifications for acquiring coal-bearing land under the Coal Bearing Areas (Acquisition and Development) Act, 1957. Statement 4 is wrong: timely delivery of coal to buyers is a commercial matter between companies and their customers.
Notice that Coal India produces about three-quarters of India's coal. Commercial coal mining by private firms was opened up in 2020.
Answer as per the official UPSC answer key.
Which of the following activities constitute real sector in the economy ?
- 1. Farmers harvesting their crops
- 2. Textile mills converting raw cotton into fabrics
- 3. A commercial bank lending money to a trading company
- 4. A corporate body issuing Rupee Denominated Bonds overseas
Select the correct answer using the code given below :
Answer (a) & explanation
Harvesting crops and making fabric are real sector activities (a). The real sector produces goods and services: farming, mining, manufacturing, construction and the like. Item 1 is right: farmers harvesting crops produce real goods. Item 2 is right: textile mills turning cotton into fabric create real output. Item 3 is wrong: a bank lending money is a financial sector activity; it moves money, not goods. Item 4 is wrong: a firm issuing Rupee Denominated Bonds overseas, called masala bonds, is also a financial activity.
Notice that GDP counts real output; the financial sector adds value through its services, but its transfers of money are not new goods. The Twin Balance Sheet problem linked stressed real-sector firms with stressed banks.
Answer as per the official UPSC answer key.
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers ?
Answer (c) & explanation
The Labour Bureau compiles this data (c). The Labour Bureau, under the Ministry of Labour and Employment, with offices at Shimla and Chandigarh, collects statistics on industrial disputes, closures, retrenchments and lay-offs. It also compiles the Consumer Price Index for Industrial Workers (CPI-IW), used to set dearness allowance. Option (a) is wrong: the Central Statistics Office, now part of the NSO, handles national accounts and GDP. Option (b) is wrong: DPIIT compiles the Wholesale Price Index and the index of eight core industries. Option (d) is wrong: NTMIS tracked technical manpower supply.
Notice that the Labour Bureau now also runs the Quarterly Employment Survey. The Periodic Labour Force Survey (PLFS), by contrast, comes from the NSO.
Answer as per the official UPSC answer key.
With reference to casual workers employed in India, consider the following statements :
- 1. All casual workers are entitled for Employees Provident Fund coverage.
- 2. All casual workers are entitled for regular working hours and overtime payment.
- 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
Answer (b) & explanation
Statements 2 and 3 are correct (b). Statement 1 is wrong: the EPF scheme covers only establishments with 20 or more workers, and members earning within the wage ceiling (₹15,000 a month), so not every casual worker is covered. Statement 2 is right: labour laws on working hours and overtime apply to all workers, including casual ones. Statement 3 is right: the Code on Wages, 2019 lets the government notify that an establishment or industry must pay wages only by cheque or into the worker's bank account.
Notice the four labour codes: Wages (2019), Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions (2020). They merged 29 central labour laws and came into force in November 2025. The e-Shram portal registers unorganised workers.
Answer as per the official UPSC answer key.