Economy Previous Year Questions (PYQs) | UPSC Mains Examination

Economy Previous Year Questions (PYQs)| UPSC Mains Examination

On this page you will find all the updates related to the previous year’s questions on subject Economy for UPSC IAS Mains examination.

The syllabus of GS paper 3 includes topics on economic development.

Questions related to:

Topic: The Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Q.1) Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. [150 Words] [10 Marks] [2023 ] 

Q.2) What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements. [150 Words] [10 Marks] [2023] 

Q.3) Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. [250 Words] [15 Marks] [2023] 

Q.4) Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? [250 Words] [15 Marks] [2023] 

Q.6) Economic growth in the recent past has been led by increase in labour activity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. [250 Words] [15 Marks] [2022] 

Q.7) Do you agree that Indian economy has recently experienced V–shaped recovery? Give reasons in support of their answer. [250 Words] [15 Marks] [2021] 

Q.8) Explain the difference between computing methodology of India’s Gross Domestic Product (GDP) before the year 2015 and after the year 2015. [150 Words] [10 Marks] [2021] 

Q.9) Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017.How has COVID-19 impacted the GST compensation fund and created new federal tensions? [250 Words] [15 Marks] [2020] 

Q.10) Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. [150 Words] [10 Marks] [2019] 

Q.11) Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. [150 Words] [10 Marks] [2019] 

Q.12) How are the principles followed by NITI Aayog different from those followed by the erstwhile planning commission in India? [250 Words] [15 marks] [2018] 

Q.13) How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? [250 Words] [15 marks] [2018] 

Q.14) Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?[150 Words] [10 Marks] [2017] 

Q.15) How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased in formalization detrimental to the development of the country? [200 Words] [12.5 Marks] [2016] 

Q.16) Justify the need for FDI for the developments of the Indian economy. Why there is gap between MOUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India. [200 Words] [12.5 Marks] [2016] 

Q.17) The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer. [200 Words][12.5 Marks][2015] 

Q.18) Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. [200 Words] [12.5 Marks] [2015] 

Q.19) Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth-services vis-a-visindustry in the country? Can India become a developed country without a strong industrial base?[200 Words] [12.5 Marks] [2014] 

Q.20)“While we flaunt India’s demographic dividend, we ignore the dropping rates of employ ability.”What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain. [200 Words] [12.5 Marks] [2014] 

Q.21) With a consideration towards the strategy of inclusive growth, the new Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the Bill and their implications.[200 Words] [10 Marks] [2013]

Q.22) What were the reasons for the introduction of Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss critically its salient features and their effectiveness.[200 Words] [10 Marks][2013]

Q.23) What is the meaning of the term ‘tax expenditure’? Taking housing sector as an example, discuss how it influences the budgetary policies of the government. [200 Words] [10 Marks] [2013]

Q.24) Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discussvarious apprehensions in its effective implementation along with the concerns it has generated in WTO. [200 Words] [10 Marks] [2013]

Q.25) Discuss the rationale for introducing the Goods and Services Tax (GST) in India. Bring outcritically the reasons for the delay in roll out for its regime. [200 Words] [10 Marks] [2013]

Topic: Inclusive growth and issues arising from it:

Q.1) Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.[150 Words] [10 Marks] [2022]

Q.2) Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development. [150 Words] [10 Marks] [2020]

Q.3) It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement. [250 Words] [15 marks][2019]

Q.4)“Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”. Comment on the progress made in India in this regard. [150 Words] [10 Marks] [2018]

Q.5) What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. [250 Words] [15 marks] [2017]

Q.6) Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional fiancé fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. [200 Words] [12.5 Marks] [2016]

Q.7) What are ‘Smart Cities’? examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for ‘Smart Villages’ in the light of PURA and RURBAN Mission. [200 Words] [12.5 Marks] [2016]

Q.8) Comment on the challenges for inclusive growth which include careless and useless manpower inthe Indian context. Suggest measures to be taken for facing these challenges.[200 Words] [12.5Marks] [2016]

Q.9) Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages short-sightedness and contributes to wide disparities between the rich and the poor.In this light, would it be correct to believe and adopt capitalism for bringing inclusive growth in India? Discuss. [200 Words] [12.5 Marks] [2014]

Topic: Government Budgeting:

Q.1) Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. [150 Words] [10 Marks] [2021]

Q.2) Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? [150 Words] [10 Marks] [2020]

Q.3) The public expenditure management is a challenge to the Government of India in context of budget making during the post liberalization period. Clarify it. [250 Words] [15 marks] [2019]

Q.4) Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. [150 Words] [10 Marks] [2018]

Q.5) One of the intended objectives of Union Budget 2017-18 is to ‘transform, energize and clean India’.Analyse the measures proposed in the Budget 2017-18 to achieve the objective. [250 Words] [15 marks] [2017]

Q.6)Women empowerment in India needs gender budgeting. What are requirements and status of gender budgeting in the Indian context? [200 Words] [12.5 Marks] [2016]

Topic: Major crops-cropping patterns in various parts of the country,–different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers:

Q.1) How does e-Technology help farmers in production and marketing of agricultural produce? Explain it. [150 Words] [10 Marks] [2023]

Q.2) What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization (WTO) in relation to agricultural subsidies. [150 Words] [10 Marks] [2023]

Q.3) Explain the changes in cropping pattern in India in the context of changes in consumption pattern and marketing conditions. [150 Words] [10 Marks] [2023]

Q.4) What is Integrated Farming System? How is it helpful to small and marginal farmers in India? [250 Words] [15 Marks] [2022]

Q.5) What are the present challenges before crop diversification? How do emerging technologies provide opportunity for crop diversification? [250 Words] [15 Marks] [2021]

Q.6) How and to what extent would micro irrigation help in solving India’s water crisis? [150 Words] [10 Marks] [2021]

Q.7) What are the main constraints in transport and marketing of agricultural produce in India? [150 Words] [10 Marks] [2020]

Q.8) What are the major factors responsible for making rice-wheat system a success? In spite of this success how has this system become bane in India? [250 Words] [15 Marks] [2020]

Q.9) Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario. [250 Words] [15 Marks] [2020]

Q.10) How far is Integrated Farming System (IFS) helpful in sustaining agricultural production? [150 Words] [10 Marks] [2019]

Q.11) Elaborate the impact of National Watershed Project in increasing agricultural production from water-stressed areas. [150 Words] [10 Marks] [2019]

Q.12) How has the emphasis on certain crops brought about changes in cropping patterns in recent past?Elaborate the emphasis on millets production and consumption. [250 Words] [15 marks][2018]

Q.13) What are the major reasons for declining rice and wheat yield in the cropping system? How crop diversification is helpful to stabilize the yield of the crop in the system? [250 Words] [15 marks][2017]

Q.14) What is water-use efficiency? Describe the role of micro-irrigation in increasing the water-use efficiency.[200 Words] [12.5 Marks] [2016]

Q.15) What is allelopathy? Discuss its role in major cropping systems of irrigated agriculture. [200 Words] [12.5 Marks] [2016]

Q.16) In the view of the declining average size of land holdings in India which has made agriculture non–viable for a majority of farmers should contract farming and land leasing be promoted in agriculture? critically evaluate the pros and cons. [200 Words] [12.5 Marks] [2015]

Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System-objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions;economics of animal-rearing:

Q.1) What are the major challenges of Public Distribution System (PDS) in India? How can it be made effective and transparent? [150 Words] [10 Marks] [2022]

Q.2) What are the salient features of the National Food Security Act 2013? How has the Food security Bill helped in eliminating hunger and malnutrition in India? [250 Words] [15 Marks] [2021]

Q.3) What are the reformative steps taken by the Government to make food grain distribution system more effective? [250 Words] [15 marks] [2019] Q.4) What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low-income trap? [150 Words] [10 Marks] [2018]

Q.5) Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity and income of horticulture farms. How far has it succeeded in increasing the income of farmers? [250 Words] [15 marks] [2018]

Q.6) Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? [150 Words] [10 Marks] [2017]

Q.7) How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? [250 Words] [15 marks] [2017]

Q.8) Give the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). [200 Words] [12.5 Marks] [2016]

Q.9) Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India. [200 Words] [12.5 Marks] [2015]

Q.10) How can the Digital India program help farmers to improve farm productivity and income? What step has the government taken in this regard? [200 Words] [12.5 Marks] [2015]

Q.11) In what way could replacement of price subsidy with direct benefit Transfer (DBT) change the scenario of subsidies in India? Discuss. [200 Words] [12.5 Marks] [2015]

Q.12) There is also a point of view that Agricultural Produce Market Committees [APMCs] set up under the State Acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine. [200 Words] [12.5 Marks] [2014]

Q.13) “In the villages itself no form of credit organization will be suitable except the cooperative society.”–All India Rural Credit Survey. Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients? [200 Words] [12.5 Marks] [2014]

Q.14) What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it.[200 Words] [10 Marks] [2013]

Q.15) India needs to strengthen measures to promote the pink revolution in food industry for ensuring better nutrition and health. Critically elucidate the statement. [200 Words] [10 Marks] [2013]

Topic: Food processing and related industries in India-scope’ and significance, location, upstream and downstream requirements, supply chain management:

Q.1) Elaborate the scope and significance of the food processing industry in India.[150 Words] [10 Marks] [2022]

Q.2) What are the main bottlenecks in upstream and downstream process of marketing of agricultural products in India?[ 250 Words] [15 Marks] [2022]

Q.3) What are the challenges and opportunities of food processing sector in the country? How can income of the farmers be substantially increased by encouraging food processing? [150 Words] [10 Marks] [2020]

Q.4) Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector? [250 Words] [15 marks] [2019]

Q.5) Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of intermediaries? [150 Words] [10 Marks] [2018]

Q.6) What are the reasons for poor acceptance of cost-effective small processing unit? How the food processing unit will be helpful to uplift the socio-economic status of poor farmers? [150 Words][10 Marks] [2017]

Q.7) What are the impediments in marketing and supply chain management in developing the food processing industry in India? Can e-commerce help in overcoming this bottleneck? [200 Words][12.5 Marks] [2015]

Topic: Land reforms in India: 

Q.1) State the objectives and measures of land reforms in India. Discuss how land ceiling policy on landholding can be considered as an effective reform under economic criteria. [150 Words] [10 Marks] [2023]

Q.2) How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal and small farmers. [150 Words] [10 Marks] [2021]

Q.3) Discuss the role of land reforms in agricultural development. Identify the factors that were responsible for the success of land reforms in India. [200 Words] [12.5 Marks] [2016]

Q.4) The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has come into effect from Ist January, 2014. What are the key issues which would get addressed with the Act in place? What implications would it have on industrialization and agriculture in India? [200 Words] [12.5 Marks] [2014]

Q.5) Establish relationship between land reforms, agricultural productivity and elimination of poverty in the Indian economy. Discuss the difficulties in designing and implementation of agriculture–friendly land reforms in India. [200 Words] [10 Marks] [2013]

Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth:

Q.1) Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports. [150 Words] [10 Marks] [2017]

Q.2) “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP)in the post-reform period” Give reasons. How far the recent changes is Industrial Policy are capable of increasing the industrial growth rate? [250 Words] [15 marks] [2017]

Q.3) “Success of make in India program depends on the success of Skill India programme and radical labour reforms.” Discuss with logical arguments. [200 Words] [12.5 Marks] [2015]

Q.4) There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development, manufacturing and exports. Recognising this potential, the whole instrumentality of SEZs require augmentation. Discuss the issue plaguing the success of SEZs with respect to taxation, governing laws and administration. [200 Words] [12.5 Marks] [2015]

Q.5) Examine the impact of liberalization on companies owned by Indians. Are they competing with the MNCs satisfactorily? Discuss. [200 Words] [10 Marks] [2013]

Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc:

Q.1) Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewable help achieve the above objective? Explain. [250 words][15 Marks][2022]

Q.2)“Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. [250 Words] [15 Marks] [2021]

Q.3) Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of National Programme on Light Emitting diodes (LEDs). [200 Words] [12.5 Marks] [2016]

Q.4) To what factors can be the recent dramatic fall in equipment cost and tariff of solar energy be attributed? What implications does the trend have for thermal power producers and related industry? [200 Words] [12.5 Marks] [2015]

Q.5)  National Urban Transport Policy emphasises on ‘moving people’ instead of ‘moving vehicles. Discuss critically the success of the various strategies of the Government in this regard. [200 Words] [12.5 Marks] [2014]

Q.6) Write a note on India’s green energy corridor to alleviate the problem of conventional energy. [200 Words] [10 Marks] [2013]

Topic: Investment models:

Q.1) Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. [150 Words] [10 Marks] [2022]

Q.2) Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public’ entity and a private entity.[250 Words] [15 Marks] [2020]

Q.3) Examine the developments of Airports in India through Joint Ventures under Public-Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard. [150 Words] [10 Marks] [2017]

Q.4) Explain how Private Public Partnership arrangements, in long gestation infrastructure projects, can transfer unsustainable liabilities to the future. What arrangements need to be put in place to ensure that successive generations’capacities are not compromised? [200 Words] [12.5 Marks][2014]

Q.5) Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What in fluence this is expected to have on Indian defence and economy in the short and long run? [200 Words][12.5 Marks] [2014]

Q.6) Discuss the impact of FDI entry into multi-trade retail sector on supply chain management in commodity trade pattern of the economy. [100 Words] [5 Marks] [2013]