UPSC Previous Year Questions (Prelims): Government Schemes | Indian Economy for UPSC CSE PDF Download

Note: No questions has been asked from this topic in the year 2025, 2024.

Q.1. Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD): 
I. It provides loans and guarantees to middle income countries.   
II. It works single-handedly to help developing countries to reduce poverty.  
III. It was established to help Europe rebuild after World War II.    
Which of the statements given above are correct?  (2025)
(a) I and II only    
(b) II and III only    
(c) I and III only    
(d) I, II and III   

View Answer  

Correct answer is: (c)

• Statement I: Correct. The IBRD, part of the World Bank, provides loans and guarantees to middle-income and creditworthy low-income countries.
• Statement II: Incorrect. The IBRD works alongside other institutions, governments, and organizations to reduce poverty, not single-handedly.
• Statement III: Correct. The IBRD was established in 1944 to help rebuild Europe after World War II, though its focus later expanded to global development.
  Thus, I and III are correct.

Q.2. Which one of the following best describes the concept of 'Small Farmer Large Field'? (2023)
(a) 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
(b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations
(c) 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
(d) 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

View Answer  

Correct answer is: (b) Many marginal farmers in an area organize themselves into groups and synchronize and harmonize selected agricultural operations

The 'Small Farmer Large Field' concept is an innovative agricultural model designed to overcome the limitations faced by small and marginal farmers due to fragmented landholdings. Under this model:

• Farmers retain ownership of their individual lands.

• They collectively coordinate certain agricultural operations (like sowing, irrigation, harvesting, marketing, etc.) across their small plots to simulate the benefits of large-scale farming.

• This leads to better bargaining power, efficient input use, and higher productivity due to economies of scale.

This model does not involve land surrender, corporate control, or forced collectivization.

Q.3. Consider the following statements: (2023)
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

View Answer  

 Correct answer is: (c) All three

1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds –
   Correct. The Government announces the Minimum Support Price (MSP) for niger seeds every year through the Commission for Agricultural Costs and Prices (CACP).

2. Niger is cultivated as a Kharif crop –
   Correct. Niger is typically grown during the Kharif season, especially in rainfed areas of central and eastern India.

3. Some tribal people in India use niger seed oil for cooking –
   Correct. Niger seed oil is traditionally used for cooking by tribal communities in states like Odisha, Chhattisgarh, and Madhya Pradesh.

Q.4. Consider the following statements:(2023)
1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived.
2. In an SHG, all members of a group take responsibility for a loan that an individual member takes.
3. The Regional Rural Banks and Scheduled CommercialBanks support SHGs.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None

View Answer  

Correct answer is: (b) Only two

1. The Self-Help Group (SHG) programme was originally initiated by the State Bank of India by providing microcredit to the financially deprived –
   Incorrect. The SHG-Bank Linkage Programme was initiated by NABARD (National Bank for Agriculture and Rural Development) in 1992, not by the State Bank of India. SBI did participate in the programme later, but it was not the initiator.

2. In an SHG, all members of a group take responsibility for a loan that an individual member takes –
   Correct. One of the fundamental principles of SHGs is joint liability, where the group collectively takes responsibility for the repayment of loans taken by individual members. This promotes financial discipline and mutual support.

3. The Regional Rural Banks and Scheduled Commercial Banks support SHGs –
   Correct. Both RRBs and Scheduled Commercial Banks are key partners in the SHG-Bank Linkage Programme. They provide loans to SHGs and play an important role in promoting financial inclusion.

Q.5. Consider, the following statements: (2023)
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

View Answer  

Correct answer is: (d) Statement-I is incorrect but Statement-II is correct

Statement-I: India accounts for 3.2% of global export of goods (Incorrect)
As per the World Trade Organization (WTO) data for 2023, India’s share in global merchandise (goods) exports is approximately 1.8% to 2%, not 3.2%. A 3.2% share would be a significant overestimation.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's ‘Production-linked Incentive’ scheme
Correct.
The Production-linked Incentive (PLI) scheme, launched by the Government of India in multiple sectors, has been availed by both Indian and foreign companies. Sectors include electronics, pharmaceuticals, telecom, food processing, etc. Companies like Foxconn, Samsung, Tata Electronics, and others have participated in the scheme.

Q.6. Consider the following statements with reference to India : (2023)
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

View Answer  

Correct answer: (b) 2 only

• Statement 1 is incorrect: As per the revised MSME definition (June 2020), medium enterprises have investment up to ₹50 crore and turnover up to ₹250 crore. The ₹15–25 crore range is outdated.
• Statement 2 is correct: All bank loans to MSMEs qualify under Priority Sector Lending as per RBI guidelines.

Q.7. In India, which of the following can be considered as public investment agriculture? (2020)
1. Fixing Minimum Support Price for agricultural produce of all corps
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below :
(a) 1, 2 and 5 only
(b) 1, 3, 4 and 5 only
(c) 2, 3 and 6 only
(d) 1, 2, 3, 4, 5 and 6

View Answer  

Correct answer: (c) 2, 3 and 6 only

• 2. Computerization of PACS – Creates institutional infrastructure → Public investment
• 3. Social capital development – Strengthens farmer institutions → Public investment
• 6. Cold storage by government – Builds physical infrastructure → Public investment

Others (MSP, free electricity, loan waiver) are subsidies or support measures, not investments.

Q.8. Which of the following factors/policies were affecting the price of rice in India in the recent past? (2023)
1. Minimum Support Price
2. Government's trading
3. Government's stockpiling
4. Consumer subsidies
Select the correct answer using the code given below:
(a) 1, 2 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4 

View Answer  

Correct answer: (d) 1, 2, 3 and 4

• MSP supports farmers, raising price floor.
• Government trading affects supply and market prices.
• Stockpiling reduces open market supply, influencing prices.
• Consumer subsidies affect demand and market dynamics.

All four factors have impacted rice prices recently.

Note: No questions has been asked from this topic in the year 2022, 2021.

Q.9. Consider the following statements: (2020)
1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
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

View Answer  

Correct answer: (d) Neither 1 nor 2

• Statement 1 is incorrect: MSP procurement is not unlimited; it is subject to limits and conditions.
• Statement 2 is incorrect: MSP is centrally fixed, and market prices can rise above it.

Q.10. Under the Kisan credit card scheme, short-term credit support is given to farmers for which of the following purposes? (2020)
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below :
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5

View Answer  

Correct answer: (b) 1, 3 and 4 only

• 1. Working capital – Covered under KCC
• 3. Consumption needs – Included
• 4. Post-harvest expenses – Included
• 2 & 5 – Long-term or capital investments, not covered under short-term KCC loans

Q.11.  Consider the following statements:        (2019-I)

1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals of Electricity.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

View Answer  

Correct Answer is Option (b)
PNGRB was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006. SEBI was formed in 1988 by an executive order, given statutory status in 1992. Besides, IRDAI and many other regulatory bodies were setup before 2006. So, PNGRB is certainly not the first body to be setup by Govt of India. #1 is wrong, by elimination we are left with answer b.

Q.12. Atal innovation mission is set up under the        (2019-I)
(a) Department of science of technology
(b) Ministry of labour and employment
(c) NITI Ayog
(d) Ministry of skill development and entrepreneurship

View Answer  

Correct Answer is Option (c)
The Atal Innovation Mission (AIM) is a flagship initiative of the Prime Minister, set up by NITI Aayog to promote innovation and entrepreneurship across the length and breadth of the country

Q.13. With reference to India’s Five Year Plans, which of the following statements is/are correct?       (2019-I)

1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.

Select the correct answer using the code given below
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1,2 and 3

View Answer  

Correct Answer is Option (a)

• 2nd FYP: rapid industrialization with particular emphasis on the development of basic and heavy industries so Statement1 is correct. This eliminates B and C. The correct answer could be A or D. In both these options, second statement is common so we should accept statement #2 to be correct without checking its validity.
• 5th FYP: Fifth Plan (1974-79) was formulated against the backdrop of severe inflationary pressures. objectives of the plan were to achieve self-reliance and adopt measures for raising the consumption standard of people living below the poverty line. This Plan also gave high priority to bring inflation under control and to achieve stability in the economic situation. It targeted an annual growth rate of 5.5 percent in the national income. There is no mention of Financial Sector here, so #3 is wrong. We are left with Answer A: only 1 and 2.

Q.14. Who among the following can join the National Pension System (NPS)?       (2017-I)
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

View Answer  

Correct Answer is Option (c)
NPS was compulsory for new central govt recruits (except armed forces) WEF 1/1/2004. so "D" is wrong. Any Indian between 18 to 55 can join NPS. So "B" is wrong. NRIs are allowed to open NPS account as per PFRDA norms. So we are left with answer "C".

Q.15. With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements:         (2017-I)

1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 2 and 3 only

View Answer  

Correct Answer is Option (b)
Act provides is an appellate tribunal, and they're required to finish case within one year. So #3 is wrong, by elimination, we are left with A and B. So, B is most appropriate because IT dept. (=therefore Government) can seize the benami properties.

Q.16. What is the aim of the programme 'Unnat Bharat Abhiyan'?        (2017-I)
(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government's education system and local communities.
(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.
(c) Strengthening India's scientific research institutions in order to make India a scientific and technological power.
(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.  

View Answer  

Correct Answer is Option (b)
Answer is "b" as per the Press Information Bureau

Q.17. With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct?     (2017-I)

1. It is an organ of NITI Aayog.
2. It has a corpus of  Rs 4, 00,000 crore at present.

Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

View Answer  

Correct Answer is Option (d)
NIIF is under Department of Economic Affairs. So first statement is wrong. It was setup in Budget 2015, with Rs.40k crores, but even if counting the recent allotments till Budget 2017, the 4 lakh amount is unrealistic. So, second statement is also wrong.

Q.18. Which of the following are the objectives of 'National Nutrition Mission'?      (2017-I)

1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
2. To reduce the incidence of anemia among young children, adolescent girls and women.
3. To promote the consumption of millets, coarse cereals and unpolished rice.
4. To promote the consumption of poultry eggs.

Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1, 2 and 4 only
(d) 3 and 4 only

View Answer  

Correct Answer is Option (a)
While this mission will certainly increase consumption of millets, coarse cereals and eggs once people become aware of their nutritional benefits, but promoting their 'consumption' is not the explicit objective of this mission. Explicitly stated objectives are only 1 and 2. So, experts were divided between A and B and C- because in the 2016's UN-REDD+ question, UPSC official even kept 'indirect benefit' of poverty removal as one of the objective. But in official answer key of 2017, they have gone only by literal interpretation of explicitly mentioned 'direct benefits, and they chose 'A' as the official answer.

Q.19. What is the purpose of Vidyanjali Yojana'?       (2017-I)

1. To enable the famous foreign educational institutions to open their campuses in India.
2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:
(a) 2 only
(b) 3 only
(c) 1 and 2 only
(d) 2 and 3 only

View Answer  

Correct Answer is Option (a)

• Indian express June 2016: HRD Ministry has launched an initiative called 'Vidyanjali' to encourage youngsters to volunteer their services at any neighborhood government school. So accordingly "A" is the most appropriate choice. 
• What about statement "3"? While the mygov.in portal guidelines mention that Vidyanjali will cover initiatives under CSR, PPP, PSU. But mobilization of voluntary monetary contribution is not the primary and explicit 'purpose' of the scheme. 
• And the scheme is targeted at primary (Class 1 to 5) and upper primary classes (Class 6 to 8) so 'secondary schools' infrastructure facilities' are beyond its scope of work. HRD ministry's other schemes specifically count class 9 onwards as 'secondary education' Hence 3 is wrong. Therefore, Answer is "A".

Q.20.  ‘SWAYAM’, an initiative of the Government of India, aims at      (2016-I)
(a) promoting the Self Help Groups in rural areas
(b) providing financial and technical assistance to young start-up entrepreneurs
(c) promoting the education and health of adolescent girls
(d) providing affordable and quality education to the citizens for free

View Answer  

Correct Answer is Option (d)
SWAYAM or Study Webs of Active–Learning for Young Aspiring Minds programme of Ministry of Human Resource Development, Government of India. Professors of centrally funded institutions like IITs, IIMs, central universities will offer online courses to citizens of India. All courses would be offered free of cost under this.

Q.21. ‘Mission Indradhanush’ launched by the Government of India pertains to       (2016-I)
(a) immunization of children and pregnant women
(b) construction of smart cities across the country
(c) India’s own search for the Earth-like planets in outer space
(d) New Educational Policy

View Answer  

Correct Answer is Option (a)
(i) The Government of India launched Mission Indradhanush in December 2014 with the ultimate goal to ensure that all children under the age of two years and pregnant women are fully immunized with all available vaccines.
(ii) This mission aims to achieve 100% vaccination of children and pregnant women by 2020.

Q.22. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?       (2016-I)

1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
2. Only one member of a family can join the scheme.
3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

View Answer  

Correct Answer is Option (c)
There is no restriction as such that only one member of a family can join the scheme.

Q.23. With reference to ‘Stand up India scheme’, which of the following statement is/are correct?       (2016-I)

1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2. It provides for refinance through SIDBI.

Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

View Answer  

Correct Answer is Option (c)
(i) Prime Minister launched the ‘Stand up India Scheme’ aimed at promoting entrepreneurship among Scheduled Castes/Scheduled Tribes and women by giving loans in the range of ₹ 10 lakh to ₹ 1 crore for setting up a new enterprise. There would be a ` 10,000 crore refinance window through Small Industries Development Bank of India (SIDBI) and the National Credit Guarantee Trustee Company Ltd (NCGTC) will create a corpus of ₹ 5,000 crore.
(ii) Both statements are correct as per : Press Information Bureau (PIB) Government of India Ministry of Finance/03-April-2016.

Q.24.  Pradhan Mantri MUDRA Yojana is aimed at       (2016-I)
(a) bringing the small entrepreneurs into formal financial system
(b) providing loans to poor farmers for cultivating particular crops
(c) providing pensions to old and destitute persons
(d) funding the voluntary organizations involved in the promotion of skill development and employment generation

View Answer  

Correct Answer is Option (a)
Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency (MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. It was announced by the Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non corporate small business sector.

Q.25. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?    (2016-I)
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the country by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution companies

View Answer  

Correct Answer is Option (a)
Ujwal DISCOM Assurance Yojana (UDAY) is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs) initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is in.

Q.26. The main objective of the 12th Five-Year Plan is        (2014 - I)
(a) inclusive growth and poverty reduction
(b) inclusive and sustainable growth
(c) sustainable and inclusive growth to reduce unemployment
(d) faster, sustainable and more inclusive growth

View Answer  

Correct Answer is Option (d)
12th Five Year Plan of the Government of India (2012-17) aims at faster, sustainable and more inclusive growth

Q.27. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?    (2011 - I)
(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household

View Answer  

Correct Answer is Option (d)
All adult members of the household who registered can apply for work. To register, they have to: Be local residents

Q.28. Consider the following statements with reference to Indira Gandhi National Old Age Pension Scheme (IGNOAPS):     (2008)

1. All persons of 60 years or above belonging to the households below poverty line in rural areas are eligible.
2. The Central Assistance under this Scheme is at the rate of ₹ 300 per month per beneficiary. Under the Scheme, States have been urged to give matching amounts.

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

View Answer  

Correct Answer is Option (d)
Ministry of Rural Development of India has introduced Indira Gandhi National Old Age Pension Scheme (IGNOAPS) under National Social Assistance Programme (NSAP) in the year 2007. IGNOAPS also called as National Old Age Pension Scheme (NOAPS). The old age pension scheme aims to provide social protection to the eligible beneficiaries. In this article, we look at the Indira Gandhi National Old Age Pension Scheme in detail.

Q.29. The Employment Assurance Scheme envisages financial assistance to rural areas for guaranteeing employment to at least:   (1999)
(a) 50 percent of the men and women seeking jobs in rural areas
(b) 50 percent of the men seeking jobs in rural areas
(c) one man and one woman in a rural family living below the poverty line
(d) one person in a rural landless household living below the poverty line

View Answer  

Correct Answer is Option (c)
Employment Assurance scheme was launched on 2nd October, 1993. It is open to all adult rural poor who are in need of wage employment. A maximum of two adults per family would be provided wage employment, when there is demand during lean agricultural season, subject to availability of funds.