70th BPSC Prelims Re-exam 2025
Indian Economy Previous Year Questions (PYQs)
Explore 10 solved 70th BPSC Prelims Re-exam 2025 Indian Economy questions with detailed step-by-step bilingual solutions, option analysis, and answer keys.
The expanded form of UPI is
Detailed Explanation:
UPI stands for Unified Payment Interface.
It is a real-time payment system developed by the National Payments Corporation of India (NPCI) that enables instant fund transfers between bank accounts through mobile platforms using a Virtual Payment Address (VPA) or UPI ID.
Legally stipulated maximum size beyond which no individual farmer can hold any land is
Detailed Explanation:
Land ceiling refers to the legally stipulated maximum size of land that an individual farmer or family can hold.
Introduced through state land reform acts in the 1960s–70s, it aimed to prevent concentration of land ownership and redistribute surplus land to landless and marginal farmers.
NNP at factor cost is equal to
Detailed Explanation:
NNP at Factor Cost is calculated by removing depreciation and net indirect taxes from GNP at Market Price.
NNPFC = GNPMP - Depreciation - Net Indirect Taxes, which represents the actual income earned by factors of production (land, labour, capital, entrepreneurship) and is called National Income.
✅ Option 4 – Correct: NNP at Factor Cost = National Income by definition in national income accounting.
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Which of the following is a function of Central Bank?
Detailed Explanation:
The Central Bank (RBI in India) performs three core functions: it manages the repo rate to control inflation and liquidity in the economy, lends to commercial banks through repo, Marginal Standing Facility (MSF), and acts as lender of last resort, and provides banking facilities to the government including managing public debt, holding government accounts, issuing currency, and managing foreign exchange reserves.
All three options are correct functions of a central bank.
Choose the correct pair from the following options.
Detailed Explanation:
❌ Option 1 – Incorrect: The Fourth Five-Year Plan (1969–74) focused on growth with stability and strengthening agriculture (Green Revolution), not the service sector.
❌ Option 2 – Incorrect: The Fifth Five-Year Plan (1974–79) emphasized poverty alleviation (Garibi Hatao) and self-reliance, not solely industry.
❌ Option 3 – Incorrect: The Third Five-Year Plan (1961–66) prioritized self-reliance and heavy industry; globalisation came only after 1991 economic reforms.
✅ Option 4 – Correct: The First Five-Year Plan (1951–56) concentrated on agriculture and irrigation to address food shortages, with projects like Bhakra Nangal Dam.
Which Sector in India has benefitted the most from Globalization ?
Detailed Explanation:
Services sector emerged as the largest beneficiary of globalization in India, contributing over 50% to GDP.
IT exports surged with companies like TCS, Infosys, Wipro becoming global leaders; India became the world's top BPO destination due to English-speaking talent and cost advantages; FDI inflows concentrated in telecom, banking, insurance, and e-commerce; sectors like tourism, healthcare, and financial services expanded rapidly post-1991 reforms.
In contrast, manufacturing grew modestly while agriculture faced challenges from import competition and saw limited export growth despite globalization.
Grey revolution is related to
Detailed Explanation:
The Grey Revolution refers to the massive increase in the production and use of chemical fertilizers in Indian agriculture during the 1960s-70s.
It complemented the Green Revolution by improving soil fertility through fertilizers like urea and superphosphate, leading to higher crop yields and food self-sufficiency.
Which among the following is a tool of Fiscal Policy ?
Detailed Explanation:
Fiscal Policy uses government revenue (taxes) and public expenditure to influence the economy, directly controlled by the government.
Taxes are a core fiscal tool—government adjusts direct taxes (income tax) and indirect taxes (GST) to manage demand, inflation, and revenue collection.
Cash Reserve Ratio (CRR), Credit Ceiling, and Bank Rate are monetary policy tools used by the Reserve Bank of India (RBI) to regulate money supply and credit availability in the banking system.
Who is the Chairperson of GST Council?
Detailed Explanation:
The GST Council is a constitutional body established under Article 279A of the Indian Constitution.
The Union Finance Minister serves as the Chairperson of the GST Council, with members including the Union Minister of State for Finance and Finance Ministers of all states and UTs with legislatures.
The ratio of total deposits that a Commercial Banks must keep with Reserve Bank of India is called
Detailed Explanation:
Cash Reserve Ratio (CRR) is the percentage of total deposits that commercial banks must maintain as reserves with the Reserve Bank of India (RBI).
Statutory Liquidity Ratio (SLR) requires banks to maintain reserves in liquid assets (gold, government securities) with themselves, not with RBI, while Legal Reserve Ratio is a broader term encompassing both CRR and SLR.
70th BPSC Prelims Re-exam 2025 - Indian Economy Chapter-wise Distribution
Money, Banking & Financial System
3 Qs (30%)Public Finance & Fiscal Policy
2 Qs (20%)Agriculture
2 Qs (20%)Indian Economy: Historical Background & Economic Reforms
2 Qs (20%)National Income & Economic Development
1 Qs (10%)70th BPSC Prelims Re-exam 2025 - Indian Economy Questions FAQs
Q1 How many Indian Economy questions were asked in 70th BPSC Prelims Re-exam 2025 2024?
Q2 What is the chapter-wise question distribution for Indian Economy in 70th BPSC Prelims Re-exam 2025 2024?
- Money, Banking & Financial System: 3 questions (30%)
- Public Finance & Fiscal Policy: 2 questions (20%)
- Agriculture: 2 questions (20%)
- Indian Economy: Historical Background & Economic Reforms: 2 questions (20%)
- National Income & Economic Development: 1 questions (10%)