The UPSC Civil Services Examination (CSE) is one of the toughest competitive exams in India. The Prelims stage tests candidates across multiple subjects, including Economics, which plays a crucial role in the General Studies Paper I. Analyzing Economy PYQ UPSC Prelims is essential for understanding the pattern and weightage of economic topics.

Economy PYQ UPSC Prelims Pattern

Economy-related questions in the UPSC Prelims help assess a candidate’s grasp of economic concepts, current economic trends, and policy implications. By solving previous years’ questions, aspirants can:

• Identify frequently asked topics.
• Understand the difficulty level of questions.
• Recognize changing trends in question framing.
• Improve accuracy by eliminating incorrect options.

Also Read: UPSC Prelims Syllabus

Economy PYQ UPSC Prelims Trend

The number of economy-related questions varies each year. Over the past decade, the number has ranged between 15 to 25 questions out of 100. The table below provides an overview of Economy PYQ UPSC Prelims trends:

Year	Economy Questions
2023	18
2022	20
2021	22
2020	25
2019	19

The increasing focus on applied economics, fiscal policy, and international economic organizations highlights the importance of thorough preparation.

Also Read: UPSC Prelims PYQs

Economy PYQ UPSC Prelims: Major Topics

Aspirants should focus on key areas based on previous years’ questions. Common topics include:

1. Basic Economic Concepts

• GDP, GNP, NNP, and national income calculations.
• Inflation, deflation, and stagflation.
• Demand and supply dynamics.

2. Banking and Financial Sector

• Functions of the Reserve Bank of India (RBI).
• Monetary policy and instruments.
• Non-Banking Financial Companies (NBFCs).

3. Fiscal Policy and Budgeting

• Union Budget highlights.
• Tax structure (direct and indirect taxes).
• Public debt and fiscal deficit.

4. International Economics

• World Trade Organization (WTO) policies.
• Balance of payments (BoP).
• International financial institutions like IMF and World Bank.

5. Government Schemes and Economic Reforms

• Key economic schemes (e.g., PM Jan Dhan Yojana, MGNREGA).
• Liberalization, privatization, and globalization (LPG reforms).

Also Read: Books for UPSC

Economy PYQ UPSC Prelims Approach

1. Analyze PYQs Year-Wise

Studying UPSC CSE Prelims PYQ of Economy year by year helps in identifying repeated patterns.

2. Understand Concepts, Not Just Facts

Many economy questions are conceptual rather than factual. Strengthen your basics to answer tricky questions confidently.

3. Stay Updated with Current Affairs

Economic policies, budget announcements, and government schemes are frequently asked. Follow newspapers and official reports.

4. Solve Mock Tests and Revise Regularly

Taking economy-based mock tests improves retention and accuracy.

Economy PYQ UPSC Prelims Download

Aspirants can download Economy PYQ UPSC Prelims from:

• The official UPSC website.
• Standard reference books like Economic Survey and India Year Book.
• Coaching institute websites offering free compilations like IAS Hub.

Also Read: UPSC Prelims PYQs

Economy PYQ UPSC Prelims Questions 2024

Consider the following statements:

Statement-I: If the United States of America (USA) were to default on its debt, holders of US Treasury Bonds will not be able to exercise their claims to receive payment.

Statement-II: The USA Government debt is not backed by any hard assets, but only by the faith of the Government.

Which one of the following is correct in respect of the above statements?

(a)Both Statement-I and Statement-II are correct and Statement-II explains Statement-I.

(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I.

(c)Statement-I is correct, but Statement-II is incorrect.

(d)Statement-I is incorrect, but Statement-II is correct.

 

Consider the following statements:

Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.

Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.

Which one of the following is correct in respect of the above statements?

(a)   Both Statement-I and Statement-II are correct and Statement-II explains Statement-I.

(b)   Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I.

(c)   Statement-I is correct, but Statement-II is incorrect.

(d)   Statement-I is incorrect, but Statement-II is correct.

 

Question 3

Consider the following statements in respect of the digital rupee:

1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
2. It appears as a liability on the RBI’s balance sheet.
3. It is insured against inflation by its very design.
4. It is freely convertible against commercial bank money and cash.

Which of the statements given above are correct?

(a)   1 and 2 only

(b)   1 and 3 only

(c)   2 and 4 only

(d)   1, 2 and 4

 

With reference to the Digital India Land Records Modernisation Programme, consider the following statements:

1. To implement the scheme, the Central Government provides 100% funding.
2. Under the Scheme, Cadastral Maps are digitised.
3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.

Which of the statements given above are correct?

(a)   1 and 2 only

(b)   2 and 3 only

(c)   1 and 3 only

(d)   1, 2 and 3

 

Consider the following statements:

1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
3. In India, Stock Exchanges can offer Separate trading platforms for debts.

Which of the statements given above is/are correct?

(a)   1 and 2 only

(b)   3 only

(c)   1, 2 and 3

(d)   2 and 3 only

 

In India, which of the following can trade in Corporate Bonds and Government Securities?

1. Insurance Companies
2. Pension Funds
3. Retail Investors

Select the correct answer using the code given below:

(a)   1 and 2 only

(b)   2 and 3 only

(c)   1 and 3 only

(d)   1, 2 and 3

 

Consider the following:

1. Exchange-Traded Funds (ETF)
2. Motor vehicles

3 .Currency swap

Which of the above is/are considered financial instruments?

(a)   1 only

(b)   2 and 3 only

(c)   1, 2 and 3

(d)   1 and 3 only

 

With reference to the sectors of the Indian economy, consider the following pairs:

Economic activity	Sector
Storage of agricultural produce	Secondary
Dairy farm	Primary
Mineral exploration	Tertiary
Weaving cloth	Secondary

How many of the pairs given above are correctly matched?

(a)   Only one

(b)   Only two

(c)   Only three

(d)   All four

 

With reference to physical capital in Indian economy, consider the following pairs:

Items	Category
Farmer’s plough	Working capital
Computer	Fixed capital
Yarn used by the weaver	Fixed capital
Petrol	Working capital

How many of the above pairs are correctly matched?

(a)   Only one

(b)   Only two

(c)   Only three

(d)   All four

 

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:

1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

Which of the statements given above is/are correct?

(a)   1 only

(b)   2 only

(c)   Both 1 and 2

(d)   Neither 1 nor 2

 

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?

(a)   1 only

(b)   2 only

(c)   Both 1 and 2

(d)   Neither 1 nor 2

 

With reference to the Indian economy, “Collateral Borrowing and Lending Obligations” are the instruments of:

(a)   Bond market

(b)   Forex market

(c)   Money market

(d)   Stock market

Economy PYQ UPSC Prelims Questions 2023

Consider the following statements:

Statement-I: Interest income from the deposits in Infrastructure Investment Trusts (InvITs) distributed to their investors is exempted from tax, but the dividend is taxable.

Statement-II: InvITs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002”.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

 

Consider the following statements:

Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.

Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

 

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

(a) Conducting ‘Open Market Operations’

(b) Oversight of settlement and payment systems

(c) Debt and cash management for the Central and State Governments

(d) Regulating the functions of Non-banking Financial Institutions

Consider the following markets:

1. Government Bond Market
2. Call Money Market
3. Treasury Bill Market
4. Stock Market

How many of the above are included in capital markets?

(a) Only one

(b) Only two

(c) Only three

(d) All four

 

Which one of the following best describes the concept of ‘Small Farmer Large Field’?

1. Resettlement of a large number of people, uprooted from their countries due to war, by giving them a large cultivable land which they cultivate collectively and share the produce
2. Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
3. Many marginal farmers in an area together make a contract with a corporate body and surrender their land to the corporate body for a fixed term for which the corporate body makes a payment of agreed amount to the farmers
4. A company extends loans, technical knowledge and material inputs to a number of small farmers in an area so that they produce the agricultural commodity required by the company for its manufacturing process and commercial production

 

Consider the following statements:

1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

 

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?

(a) Only one

(b) Only two

(c) Only three

(d) All four

 

Consider the following statements:

Statement-I: India accounts for 3.2% of global export of goods.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

 

Consider the following statements with reference to India:

1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between 15 crore and 25 crore.
2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

With reference to Central Bank digital currencies, consider the following statements:

1. It is possible to make payments in a digital currency without using the US dollar or SWIFT system.
2. A digital currency can be distributed with a condition programmed into it such as a time- frame for spending it.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

In the context of finance, the term ‘beta’ refers to

(a) the process of simultaneous buying and selling of an asset from different platforms

(b) an investment strategy of a portfolio manager to balance risk versus reward

(c) a type of systemic risk that arises where perfect hedging is not possible

(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

 

In the context of finance, the term ‘beta’ refers to

(a) the process of simultaneous buying and selling of an asset from different platforms

(b) an investment strategy of a portfolio manager to balance risk versus reward

(c) a type of systemic risk that arises where perfect hedging is not possible

(d) a numeric value that measures the fluctuations of a stock to changes in the overall stock market

 

Question 13: Consider the following statements:

Statement-I: India’s public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care.

Statement-II: Under India’s decentralized approach to health care delivery, the States are primarily responsible for organizing health services.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

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Understanding Economy PYQ UPSC Prelims is crucial for scoring well in the General Studies Paper. By analyzing trends, focusing on core topics, and practicing previous years’ questions, aspirants can enhance their preparation. Make sure to download Economy PYQ UPSC Prelims and integrate them into your study plan for better results.

Economy PYQ UPSC Prelims FAQs