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Economy PYQ UPSC Prelims is essential for aspirants to identify trends and key topics. Practicing Economy PYQ UPSC Prelims ensures clarity in basic concepts and enhances prelims performance.
PWOnlyIAS
April 11, 2025
Economy PYQ UPSC Prelims section has consistently proven to be one of the most scoring yet conceptual areas in the UPSC Civil Services Preliminary Examination. It demands a clear understanding of economic fundamentals as well as an understanding of dynamic issues. As a dynamic and conceptual subject, economics in the prelims requires both a strong foundational understanding and awareness of recent developments. Read on to get a detailed and structured Economy PYQ UPSC Prelims Overview, including year-wise trends, topic-wise analysis, and strategic preparation tips to help aspirants master this section.
The UPSC Prelims Economy plays a vital role in determining the success of candidates in clearing the first stage of the Civil Services Examination. Questions related to banking systems, fiscal policy, monetary policy, inflation, economic surveys, union budgets, and financial markets dominate this section. Understanding the pattern of Economy Questions in UPSC Prelims Year Wise can provide valuable insights into recurring themes and help prioritize topics.
| Economy PYQ UPSC Prelims Overview | |
| Aspect | Details |
| Time Period Covered | Contemporary and post-1991 economic reforms, with historical context where relevant |
| Question Trend (Last 7 Years) | 10–20 questions per year |
| Nature of Questions | Conceptual, Current Affairs-Based, Statement-based |
| Most Common Topics | Banking, Inflation, Monetary Policy, Budget, External Sector, Government Schemes |
| Repeated Themes | Fiscal Deficits, RBI Tools, Financial Inclusion, WTO & Trade, Economic Surveys |
| Sources for Preparation | NCERTs (Class 11–12), Indian Economy by Ramesh Singh, Economic Survey, Union Budget, PIB, Government Reports, Previous Year Papers |
| Year with Maximum Questions | 2020 (12 questions) |
| Year with Minimum Questions | 2023 (13 questions) |
| Expected Questions in 2025 | Around 15–18 questions, based on recent trends |
| Difficulty Level | Moderate to High |
| Best Strategy for Preparation | Concept Clarity, PYQ Analysis, Integration with Current Affairs, Revision through Mock Tests & MCQs |
Aspirants aiming to qualify for the UPSC Prelims must prioritize solving previous year questions, especially from the Economy section. To streamline your preparation, we have compiled a comprehensive UPSC CSE Prelims PYQ of Economy PDF.
This PDF includes year-wise economy questions along with detailed solutions and explanations. It covers key concepts, recurring themes, and trend-based insights, helping you identify important areas and focus your revision effectively.
| UPSC CSE Prelims PYQ of Economy PDF Download |
| Click Here |
The Economy Questions in UPSC Prelims 2024 with Answers showcased a mix of conceptual and awareness-based queries. Notably, questions on digital currency, CSR rules, syndicated lending, and RBI regulations appeared prominently. Below are the questions from the recent UPSC Prelims exam:
Q1. 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.
Ans: (d)
Q2. 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.
Ans: (c)
Q3. Consider the following statements in respect of the digital rupee:
Q4. With reference to the Digital India Land Records Modernisation Programme, consider the following statements:
Q5. Consider the following statements:
Q6. In India, which of the following can trade in Corporate Bonds and Government Securities?
Q7. Consider the following:
Q8. With reference to the sectors of the Indian economy, consider the following pairs:
| Economic Activity | Sector |
| 1. Storage of agricultural produce | Secondary |
| 2. Dairy farm | Primary |
| 3. Mineral exploration | Tertiary |
| 4. 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
Ans: (b)
Q9. With reference to physical capital in Indian economy, consider the following pairs:
| Items | Category |
| 1. Farmer’s plough | Working capital |
| 2. Computer | Fixed capital |
| 3. Yarn used by the weaver | Fixed capital |
| 4. Petrol | Working capital |
How many of the above pairs are correctly matched?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Ans: (b)
Q10. With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
Q11. With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
Q12. 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
Ans: (c)
Over the past few years, the number of questions related to economics has consistently remained between 10 to 20. Here’s a glimpse into the Economy Questions in UPSC Prelims Year-wise Trend:
| Economy Questions in UPSC Prelims Year Wise Trend | |
| Year | Number of Economy Questions |
| 2024 | 12 |
| 2023 | 13 |
| 2022 | 12 |
| 2021 | 14 |
| 2020 | 19 |
Despite evolving economic contexts and policy shifts, UPSC consistently tests certain foundational and current themes in the Indian Economy section. Recognizing these patterns can guide focused preparation.
| Repeated Themes of Indian Economy Questions in UPSC Prelims | |
| Themes | Significance / PYQ Reflection |
| Banking and Monetary Policy | Questions on RBI’s functions, LAF, foreign banks’ norms, and NBFCs appear often. |
| Government Securities & Financial Markets | Frequent focus on G-Secs, ETFs, corporate bonds, FIIs/FPIs, and trading platforms. |
| Digital Economy and Currency | Topics like Digital Rupee, CBDC, fintech tools are trending themes. |
| Corporate Governance & CSR | Questions test knowledge of CSR rules, applicability, and governance frameworks. |
| Land Reforms and Modernization Schemes | DILRMP, digitization of land records, and language accessibility are examined. |
| Capital – Fixed vs Working | Often tested through matching items to fixed or working capital categories. |
| Sectors of the Economy | Questions on primary, secondary, and tertiary sector classification are frequent. |
| Financial Instruments and Concepts | Includes ETFs, swaps, derivatives, and identifying what qualifies as an instrument. |
| Loan Structures and Lending Mechanisms | Emphasis on syndicated loans, credit lines, and risk-sharing methods. |
| External Sector and Currency | Currency swap, BoP concepts, and forex-related questions show up occasionally. |
A structured approach to Topic-wise Economy Questions in UPSC Prelims ensures targeted preparation and conceptual clarity. Below is a categorized question analysis:
Question: 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
Answer: (d) Statement-I is incorrect, but Statement-II is correct
Question: Consider the following statements:
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
Answer: (c) 1, 2 and 3
Question: Consider the following:
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
Answer: (d) 1 and 3 only
Question: With reference to the Indian economy, consider the following statements:
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
Answer: (c) 1 and 3 only
Question: With reference to India’s External Sector, consider the following statements:
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
Answer: (d) 1, 2 and 3
Preparation for the Economy PYQ UPSC Prelims should be done in a strategic manner. Here are some essential tips on how to prepare for Economy Questions in UPSC Prelims:
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