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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Consider the following statements :
- 1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
- 2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).
Which of the statements given above is/are correct ?
Answer (a) & explanation
Only statement 1 is correct (a). The BIS Standard Mark (ISI) is mandatory for certain products through Quality Control Orders, including automotive tyres and tubes, cement, LPG cylinders, electrical appliances and packaged water (1). Statement 2 is wrong because AGMARK is not issued by the FAO. It is India's own mark for farm products such as ghee, honey, spices and pulses. It is given by the Directorate of Marketing and Inspection under the Agricultural Produce (Grading and Marking) Act, 1937.
BIS got statutory status under the BIS Act, 1986, replaced by the 2016 Act. Notice the other quality marks: Hallmark (gold, mandatory since 2021), FPO (processed fruit), Ecomark and FSSAI licensing.
Answer as per the official UPSC answer key.
With reference to the 'National Intellectual Property Rights Policy', consider the following statements :
- 1. It reiterates India's commitment to the Doha Development Agenda and the TRIPS Agreement.
- 2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.
Which of the above statements is/are correct ?
Answer (c) & explanation
Both statements are correct (c). The National IPR Policy (May 2016), with the slogan "Creative India; Innovative India", reaffirms India's commitment to the Doha Development Agenda and the TRIPS Agreement (1). It keeps flexibilities such as compulsory licensing for public health. It made DIPP (now DPIIT) the nodal department for IPR (2), moving copyright and semiconductor layout designs there from other ministries. It has seven objectives, including awareness, IP commercialisation and enforcement.
CIPAM was set up to carry it out. Notice India's careful approach under Section 3(d) of the Patents Act, which blocks "evergreening" of drug patents, as upheld in the Novartis (Glivec) case of 2013.
Answer as per the official UPSC answer key.
Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?
- 1. Undernourishment
- 2. Child stunting
- 3. Child mortality
Select the correct answer using the code given below.
Answer (c) & explanation
All three are indicators (c). The Global Hunger Index uses four: undernourishment, child stunting, child wasting and child mortality (under five). So undernourishment, stunting and child mortality are all part of it, and options leaving any out are incomplete.
IFPRI helped compile the GHI until 2017; it is now published by Welthungerhilfe and Concern Worldwide. India often ranks low, mainly because of high child wasting, and the government has questioned the methodology. Notice how hunger links to nutrition schemes such as POSHAN Abhiyaan, the PDS and mid-day meals.
"Child" items look like health, not hunger. GHI deliberately mixes food supply with child nutrition outcomes.
Answer as per the official UPSC answer key.
Which one of the following is a purpose of 'UDAY', a scheme of the Government?
Answer (d) & explanation
UDAY (Ujwal DISCOM Assurance Yojana, November 2015) aimed at the financial turnaround and revival of power distribution companies (d). States took over 75% of their DISCOMs' debt and issued bonds for it, while the DISCOMs had to cut losses and revise tariffs. Option (b), electricity for every household, was the goal of Saubhagya (2017). Options (a) and (c), renewable start-ups and replacing coal plants, are not UDAY's purpose.
The later Revamped Distribution Sector Scheme (2021) continued this effort. Notice how weak DISCOMs remain the weakest link in India's power sector.
Answer as per the official UPSC answer key.
India's ranking in the 'Ease of Doing Business Index' is sometimes seen in the news. Which of the following has declared that ranking?
Answer (c) & explanation
The World Bank published the Ease of Doing Business ranking through its annual Doing Business report (c). The OECD (a) works on economic policy for rich countries, the World Economic Forum (b) publishes the Global Competitiveness Report, and the WTO (d) deals with trade rules; none ran this index.
India climbed from 142nd in the 2015 report to 63rd in the 2020 report, helped by reforms such as the IBC and GST. After data irregularities came to light, the World Bank discontinued the report in 2021. Its replacement is B-READY (Business Ready). Notice how rankings can shape both policy and investor perception.
Answer as per the official UPSC answer key.
Recently, India's first 'National Investment and Manufacturing Zone' was proposed to be set up in
Answer (a) & explanation
Andhra Pradesh is the answer (a). National Investment and Manufacturing Zones (NIMZs) come from the National Manufacturing Policy, 2011. The policy aimed to raise manufacturing to 25% of GDP and create 100 million jobs. NIMZs are large integrated industrial townships of at least 5,000 hectares, with world-class infrastructure and simpler rules. At the time of the question, a NIMZ in Prakasam district was in the news as India's first proposed one. Gujarat (b), Maharashtra (c) and Uttar Pradesh (d) had other zones, such as those on the DMIC corridor, but not this "first" one.
Notice the difference between NIMZs, SEZs (export-focused, with duty benefits) and the newer industrial smart cities being built under the National Industrial Corridor programme.
Answer as per the official UPSC answer key.
Which of the following brings out the 'Consumer Price Index Number for Industrial Workers'?
Answer (c) & explanation
The CPI for Industrial Workers is compiled by the Labour Bureau, Shimla, under the Ministry of Labour (c), as are the CPIs for Agricultural and Rural Labourers. It is used to fix dearness allowance for government employees and wages in industry. The RBI (a) uses inflation data but does not compile CPI-IW; the Department of Economic Affairs (b) and DoPT (d) do not compile it either.
The headline CPI (Rural, Urban, Combined) used for inflation targeting is compiled by the NSO under MoSPI. Notice how different price indices serve different purposes: wages, policy and contracts.
Answer as per the official UPSC answer key.
In India, the steel production industry requires the import of
Answer (c) & explanation
Indian coal has a high ash content, so steel plants import most of their coking (metallurgical) coal, mainly from Australia, and also from the USA, Russia and others (c). Saltpetre (a) is used for explosives and fertilisers, and rock phosphate (b) for phosphatic fertilisers; neither is needed for steel, so (d) also fails.
India is the world's second-largest steel producer and aims for 300 million tonnes of capacity by 2030 under the National Steel Policy 2017. Notice how this import dependence links steel, trade and energy security, which is why coal washeries and Mission Coking Coal matter.
Answer as per the official UPSC answer key.
With reference to Indian economy, consider the following statements :
- 1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
- 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
Answer (b) & explanation
Only statement 2 is correct (b). The real GDP growth rate rose and fell between 2005 and 2015, dipping in 2008-09 after the global financial crisis and again in 2012-13, so it did not rise steadily. Nominal GDP at market prices in rupees rose every year because of both real growth and inflation.
The key idea is that a level can rise steadily even when its growth rate does not. Real GDP removes the effect of price changes, while nominal GDP does not. Notice how the GDP deflator links the two, and how this distinction appears in many economics questions.
Answer as per the official UPSC answer key.
The substitution of steel for wooden ploughs in agricultural production is an example of
Answer (b) & explanation
The plough is a capital good. A steel plough lasts longer and does more work than a wooden one, so the same capital becomes more productive. Technical change that raises the efficiency of capital is called capital-augmenting (b). If it made each worker more effective, it would be labour-augmenting (a). It does not reduce capital (c), so (d) also fails.
Economists such as Robert Solow showed that technological progress explains much of long-term growth. Notice how this links to the Green Revolution, where better seeds and tools transformed farm output with the same land.
Answer as per the official UPSC answer key.
In the 'Index of Eight Core Industries', which one of the following is given the highest weight?
Answer (b) & explanation
The Index of Eight Core Industries, released by the Office of the Economic Adviser in DPIIT, covers coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. On the 2011-12 base, refinery products weigh about 28% and electricity about 20% (b). Steel (d) is about 18%, coal (a) about 10% and fertilisers (c) under 3%. Among the options, electricity is the highest.
Together these eight industries make up about 40% of the Index of Industrial Production. Notice how core-sector data is watched as an early signal of where the wider economy is heading.
refinery products are heavier still, but they are not among the options.
Answer as per the official UPSC answer key.
The main objective of the 12th Five-Year Plan is
Answer (d) & explanation
The 12th Five-Year Plan (2012–17) had the theme "Faster, More Inclusive and Sustainable Growth" (d). Options (b) and (c) use some of the same words but miss "faster", and (a) is closer in spirit to earlier plans. The 11th Plan (2007–12) was "Towards Faster and More Inclusive Growth", so the 12th simply added sustainability.
The 12th was India's last Five-Year Plan. NITI Aayog replaced the Planning Commission in January 2015 and moved to vision and strategy documents instead. Notice how plan themes trace India's changing priorities: from heavy industry in the 2nd Plan to inclusion and sustainability later.
options (b) and (c) use the same words. Only (d) has all three: faster, sustainable, inclusive.
Answer as per the official UPSC answer key.
Disguised unemployment generally means
Answer (c) & explanation
Marginal productivity of labour is zero is correct (c). In disguised unemployment, more people work on a job, often a family farm, than are actually needed. If some of them are removed, total output does not fall, so their marginal productivity is zero. They appear employed but are effectively surplus. (a) is wrong: it describes open unemployment. (b) is wrong: lack of alternatives may explain it but does not define it. (d) is wrong: low productivity is not the same as zero marginal product.
Notice the theory: Arthur Lewis's dual-sector model (1954) argued that surplus farm labour could move to industry without reducing farm output. India still has about 46% of its workforce in agriculture, a sign of hidden underemployment. Other types: seasonal, structural, frictional and cyclical. Trap: 'low' productivity is not 'zero'.
Answer as per the official UPSC answer key.
Which one among the following industries is the maximum consumer of water in India?
Answer (d) & explanation
Thermal power is correct (d). Thermal power plants use huge volumes of water for cooling condensers and making steam, and account for the largest share, close to 90%, of industrial water withdrawal in India. (a) is wrong: engineering industries use far less. (b) is wrong: paper and pulp is water-intensive per tonne, but its total use is much smaller. (c) is wrong: textiles, especially dyeing, use a lot of water, but still far less than power.
Notice the rules: since 2015 the environment ministry has capped water use at 3.5 m³ per MWh for new plants, and plants within 50 km of sewage plants must use treated sewage water. Water shortages have shut plants in drought years, as in Maharashtra. Dry cooling and air-cooled condensers cut use. Trap: per-tonne intensity differs from total consumption.
Answer as per the official UPSC answer key.
To obtain full benefits of demographic dividend, what should India do?
Answer (a) & explanation
Promoting skill development is correct (a). A demographic dividend is the growth boost from a large working-age population. It pays off only if those people are employable and productive, so skill development, along with education and jobs, is the key step. (b) is wrong: social security helps welfare but does not unlock the dividend directly. (c) is wrong: lowering infant mortality matters for health, but it does not raise the productivity of today's workers. (d) is wrong: privatising higher education is not a necessary condition.
Notice India's case: about two-thirds of Indians are of working age, and the window lasts until about the 2040s. Programmes include Skill India Mission (2015), PMKVY, the PM Internship Scheme (2024) and NEP 2020's vocational focus. Only a small share of the workforce has formal skill training. Trap: health and welfare are worthy but not the core lever.
Answer as per the official UPSC answer key.
Economic growth in country X will necessarily have to occur if
Answer (c) & explanation
Capital formation in X is correct (c). Capital formation, investment in machines, factories, infrastructure and human capital, raises a country's capacity to produce, so it leads to economic growth. (a) is wrong: technical progress in the world need not reach country X. (b) is wrong: population growth may add workers, but without capital and jobs it can even lower per-capita income. (d) is wrong: growth in world trade need not raise X's output.
Notice the theory: the Harrod–Domar model links growth to the savings and investment rate, and the Solow model adds technology. India's gross fixed capital formation is about 30% of GDP, and the government has raised public capex to over ₹11 lakh crore. Trap: global trends are outside X's control and so not 'necessary'.
Answer as per the official UPSC answer key.
The national income of a country for a given period is equal to the
Answer (d) & explanation
Money value of final goods and services is correct per UPSC's key (d), though it is a simplified definition. National income is measured as the money value of all final goods and services produced in a year; counting only final goods avoids double counting of intermediate goods. Strictly, national income is Net National Product at factor cost, which also adds net factor income from abroad and subtracts depreciation, so (d) is the best of the options, not a perfect definition. (a) is partly right but vague. (b) is wrong: it leaves out government spending and net exports. (c) is wrong: personal income excludes retained profits and taxes.
Notice the update: India's GDP series is being moved to a 2022–23 base year. Trap: (b) misses two parts of C + I + G + (X − M).
Answer as per the official UPSC answer key.
Consider the following specific stages of demographic transition associated with economic development :
- 1. Low birthrate with low death rate
- 2. High birthrate with high death rate
- 3. High birthrate with low death rate
Select the correct order of the above stages using the codes given below :
Answer (c) & explanation
The order 2, 3, 1 is correct (c). In the demographic transition model, poor agrarian societies start with high birth and high death rates, so population grows slowly (2). Better food, medicine and sanitation bring the death rate down while births stay high, causing a population boom (3). Finally education, urbanisation and women's empowerment bring births down too, giving low birth and low death rates (1). So (a), (b) and (d) give the wrong order.
Notice India's stage: India's TFR fell to 2.0 in NFHS-5, below replacement (2.1), so it is entering the late stage, with a demographic dividend until about the 2040s. Some models add a fifth stage where births fall below deaths, as in Japan. Trap: the list deliberately starts with the final stage.
Answer as per the official UPSC answer key.
In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries?
- 1. Cement
- 2. Fertilizers
- 3. Natural gas
- 4. Refinery products
- 5. Textiles
Select the correct answer using the codes given below :
Answer (c) & explanation
Items 1, 2, 3 and 4 are correct (c). The eight core industries are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, so cement (1), fertilisers (2), natural gas (3) and refinery products (4) are included. Item 5 is wrong: textiles is not a core industry. So (a), (b) and (d) fail.
Notice the weights: on the 2011–12 base, the eight cores make up about 40.27% of the IIP; refinery products carry the largest weight (about 28%), followed by electricity and steel, while fertilisers carry the least. The index is released monthly by the Office of the Economic Adviser, DPIIT. Trap: textiles is a big industry but not 'core' infrastructure.
Answer as per the official UPSC answer key.
The endeavour of ‘Janani Suraksha Yojana’ Programme is
- 1. to promote institutional deliveries
- 2. to provide monetary assistance to the mother to meet the cost of delivery
- 3. to provide for wage loss due to pregnancy and confinement
Which of the statements given above is/are correct?
Answer (a) & explanation
Statements 1 and 2 are correct (a). Janani Suraksha Yojana (2005, under the National Rural Health Mission) promotes institutional deliveries to cut maternal and infant deaths (1), and gives cash assistance to poor pregnant women for delivery in a health facility (2). The ASHA who escorts her also gets an incentive. Statement 3 is wrong: compensation for wage loss during pregnancy came under a different scheme, the Indira Gandhi Matritva Sahyog Yojana (2010), now the Pradhan Mantri Matru Vandana Yojana (2017), which pays ₹5,000 for the first child and ₹6,000 for a second girl child under Mission Shakti. So (b), (c) and (d) fail.
Notice the outcome: institutional births rose to about 89% (NFHS-5), and India's MMR fell to about 93 per lakh (2019–21). Trap: two maternity schemes are blended into one.
Answer as per the official UPSC answer key.