BPSC CCE Prelims
Indian Economy Previous Year Questions (PYQs)
Solved Previous Year Questions (PYQs) for Indian Economy in BPSC CCE Prelims in English & Hindi Medium.
Chapter Breakdown: Scroll →
What is the policy measure adopted by the Government of India to improve the system of agricultural marketing?
Detailed Explanation:
Public Distribution System (PDS) ensures food security through subsidized distribution of foodgrains to vulnerable sections.
Minimum Support Price (MSP) guarantees remunerative prices to farmers and protects them from price fluctuations during surplus production.
Buffer Stock is maintained by FCI (Food Corporation of India) to ensure availability during shortages and stabilize market prices.
All three measures — PDS, MSP, and Buffer Stock — are integral components of India's agricultural marketing and food security framework, making Option 4 (More than one of the above) correct.
Match List-I with List-II:
| List I | List II | ||
| a. | Grey Revolution | 1. | Onion production |
| b. | Pink Revolution | 2. | Tomato and meat production |
| c. | Silver Revolution | 3. | Production of eggs |
| d. | Red Revolution | 4. | Fertilizers |
Detailed Explanation:
Grey Revolution refers to increased production of fertilizers, crucial for agricultural productivity.
Pink Revolution relates to onion production and is associated with horticulture development in India.
Silver Revolution denotes the growth in egg production and poultry sector development.
Red Revolution signifies the increase in tomato and meat production, focusing on food processing and livestock.
Correct matching: a-4, b-1, c-3, d-2.
Which of the following Five-Year Plans was focussed on Human Resource Development?
Detailed Explanation:
The Eighth Five-Year Plan (1992-1997) was the first to focus on Human Resource Development as a central theme, emphasizing health, education, and employment.
The First Plan (1951-56) focused on agriculture and irrigation, the Third Plan (1961-66) emphasized self-reliance and heavy industries, and the Fifth Plan (1974-79) targeted poverty alleviation and employment (Garibi Hatao).
Since the Eighth Plan is not among the given options (First, Third, Fifth), the correct answer is Option 5: None of the above.
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In which budget did the Finance Minister announce the Liberalized Exchange Rate Management System?
Detailed Explanation:
The Liberalized Exchange Rate Management System (LERMS) was announced by Finance Minister Dr. Manmohan Singh in the Union Budget 1992-1993.
This dual exchange rate system was introduced as part of economic liberalization reforms and marked a significant step towards convertibility of the Indian Rupee on the current account.
Which of the following were goals of the Five-Year Plans?
1. Growth
2. Modernization
3. Self-reliance
4. Literature
Detailed Explanation:
✅ Statement 1 – Correct: Growth (increase in GDP and national income) was a fundamental objective of all Five-Year Plans in India.
✅ Statement 2 – Correct: Modernization (adoption of new technology and industrial advancement) was a key goal emphasized across the Plans.
✅ Statement 3 – Correct: Self-reliance (reducing dependence on foreign aid and imports) became particularly prominent from the Fourth Plan onwards.
❌ Statement 4 – Incorrect: Literature was never a direct goal of the Five-Year Plans, which focused on economic development.
Since statements 1, 2, and 3 are correct, the answer should be "1, 2 and 3 only" - but this option is not provided. Options 1, 2, and 3 each exclude at least one correct statement, while Option 4 ("More than one of the above") is ambiguous. Therefore, Option 5 ("None of the above") is correct as none of the first three options accurately captures all correct statements.
Which organization carries out the survey for determining the poverty line?
Detailed Explanation:
The National Sample Survey Office (NSSO), now part of the National Statistical Office (NSO), conducts the Household Consumer Expenditure Survey (HCES) which provides data for determining the poverty line.
The NSSO surveys collect detailed data on consumption patterns, income, and expenditure of households across India, which forms the basis for poverty estimation by expert committees and the Planning Commission/NITI Aayog.
Which statement is not true about the poverty estimates based on the 68th round of NSSO?
Detailed Explanation:
The 68th NSSO round (2011-12) used the Tendulkar methodology and established the poverty line at Rs. 33.33 per capita per day for urban areas (Statement 1 is true). The survey revealed that 21.9% of India's population was living below the poverty line (Statement 2 is true).
Statement 3 claims 33.35% of the population was below the poverty line, which contradicts the official figure of 21.9% and is therefore incorrect.
Therefore, Statement 3 is the false statement, making Option 3 the correct answer.
Which of the following partly defines the micro-enterprise in India?
Detailed Explanation:
Under the MSME Act (revised 2020), a micro-enterprise is defined by two criteria: investment in plant and machinery/equipment not exceeding Rs. 1 crore and annual turnover not exceeding Rs. 5 crore.
Option 3 correctly states the investment threshold of Rs. 1 crore. Option 1 incorrectly mentions turnover of Rs. 15 crore (actual: Rs. 5 crore), and Option 2 incorrectly states investment of Rs. 1.5 crore (actual: Rs. 1 crore).
Therefore, only Option 3 correctly defines a micro-enterprise, making it the correct answer.
In which year was the ‘National Extension Service’ launched?
Detailed Explanation:
The National Extension Service (NES) was launched on 2 October 1953 as India's first comprehensive rural development program, aiming to improve agriculture, health, education, and sanitation in villages through community participation.
It preceded the Community Development Programme (CDP) expansion and laid the foundation for subsequent rural development initiatives in independent India.
Therefore, 1953 is the correct year, making Option 1 the correct answer.
The best index of economic development is provided by
Detailed Explanation:
Per capita real income accounts for both population growth and inflation, reflecting the actual purchasing power and living standards of individuals year-on-year.
National income at current prices ignores inflation; savings ratio and balance of payments are partial indicators that do not capture overall welfare or equitable distribution of growth.
Therefore, growth in per capita real income from year to year is the best index of economic development, making Option 2 the correct answer.
Consider the following States:
- Punjab
- Uttar Pradesh
- Andhra Pradesh
- West Bengal
Choose the correct sequence of the above in ascending order as rice producing States in India.
Detailed Explanation:
West Bengal is India's largest rice producer, followed by Uttar Pradesh, Punjab, and Andhra Pradesh (in descending order of production).
The correct ascending order is: Andhra Pradesh < Punjab < Uttar Pradesh < West Bengal. This sequence does not match any of Options 1–4.
Therefore, none of the given options is correct, making Option 5 the correct answer.
At which of the following places the newsprint paper industry is located?
Detailed Explanation:
Nepanagar in Madhya Pradesh houses Nepa Mills Limited, India's first indigenous newsprint manufacturing unit, established in 1947.
Durgapur has steel plants, Kanpur has textile/leather industries, and Satana has no major newsprint facility.
Therefore, Nepanagar is the correct location for newsprint paper industry, making Option 2 the correct answer.
What is the objective of community development?
Detailed Explanation:
The Community Development Programme (CDP), launched in India in 1952, aimed at holistic rural development through participatory action, focusing on improving living standards, agricultural productivity, health, and education.
The core objective was to foster harmonious life by promoting social justice, self-determination, empowerment, and collective action—ensuring communities live peacefully with mutual cooperation and shared progress.
Therefore, harmonious life represents the fundamental goal of community development, making Option 3 the correct answer.
Bhandari Committee is related to
Detailed Explanation:
The Bhandari Committee (1994) was constituted to examine the functioning and recommend the restructuring of Regional Rural Banks (RRBs). It identified 49 weak RRBs requiring comprehensive restructuring and suggested granting greater autonomy to RRB boards in business and staffing decisions.
The committee had no mandate on taxation (direct/indirect) or general agricultural credit—its focus was exclusively on strengthening the RRB framework.
Therefore, regional rural banks' restructuring is the correct focus, making Option 3 the correct answer.
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