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Indian Economic Development

Class 11 · Economy

Real UPSC Prelims questions from 2016–2026, linked to this book. Try each one first, then open the answer. 2026 answers follow UPSC's provisional answer key.

A question can draw on more than one chapter, so the chapter counts add up to more than 9.

Ch 1 · Indian Economy on the Eve of Independence

Prelims 2018 · Q52

Economically, one of the results of the British rule in India in the 19th century was the

(a)increase in the export of Indian handicrafts
(b)growth in the number of Indian owned factories
(c)commercialization of Indian agriculture
(d)rapid increase in the urban population

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UPSC's answer: (c)

NCERT answers it: Class 11 Indian Economic Development, Ch 1 (Indian Economy on the Eve of Independence).

Indian Economic Development (ch 1): under British rule agriculture was commercialised, while India's famous handicrafts declined. So (c).

Hindi version: UPSC's official question paper (2018), question 52 ↗

Prelims 2020 · Q23

Which of the following statements correctly explains the impact of Industrial Revolution on India during the first half of the nineteenth century?

(a)Indian handicrafts were ruined.
(b)Machines were introduced in the Indian textile industry in large numbers.
(c)Railway lines were laid in many parts of the country.
(d)Heavy duties were imposed on the imports of British manufactures.

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UPSC's answer: (a)

NCERT answers it: Class 11 Indian Economic Development, Ch 1 (Indian Economy on the Eve of Independence); Class 10 India and the Contemporary World – II, Ch 4 (The Age of Industrialisation).

Indian Economic Development (ch 1): under colonial rule India's famous handicraft industries declined. India and the Contemporary World – II (ch 4): cheap Manchester goods hurt Indian weavers. So (a).

Hindi version: UPSC's official question paper (2020), question 23 ↗

Ch 2 · Indian Economy 1950–1990

Prelims 2019 · Q2

With reference to land reforms in independent India, which one of the following statements is correct?

(a)The ceiling laws were aimed at family holdings and not individual holdings.
(b)The major aim of land reforms was providing agricultural land to all the landless.
(c)It resulted in cultivation of cash crops as a predominant form of cultivation.
(d)Land reforms permitted no exemptions to the ceiling limits.

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UPSC's answer: (b)

NCERT answers it: Class 11 Indian Economic Development, Ch 2 (Indian Economy 1950–1990).

How to solve it with NCERT: Class 11 Indian Economic Development, ch 2: land reform aimed to make the tiller the owner, and ceilings were meant to cut the concentration of land in a few hands. That is the idea in (b). The same chapter defines the ceiling as the maximum land 'owned by an individual', which rules out (a). Answer (b).

Hindi version: UPSC's official question paper (2019), question 2 ↗

Ch 3 · Liberalisation, Privatisation and Globalisation: An Appraisal

Prelims 2017 · Q77

Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

1.Share of agriculture in GDP increased enormously.
2.Share of India's exports in world trade increased.
3.FDI inflows increased.
4.India's foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a)1 and 4 only
(b)2, 3 and 4 only
(c)2 and 3 only
(d)1, 2, 3 and 4

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UPSC's answer: (b)

NCERT answers it: Class 11 Indian Economic Development, Ch 3 (Liberalisation, Privatisation and Globalisation: An Appraisal); Class 11 Indian Economic Development, Ch 5 (Rural Development).

How to solve it with NCERT: Class 11 Indian Economic Development, ch 3, shows FDI and foreign-exchange reserves rising sharply after 1991 (reserves from about $6 billion to $646 billion), so 3 and 4 are true. Ch 5 says agriculture's share of GDP was declining, so 1 is false. The only option with 4 and without 1 is (b).

Hindi version: UPSC's official question paper (2017), question 77 ↗

Ch 4 · Human Capital Formation in India

Prelims 2018 · Q49

Consider the following statements:

Human capital formation as a concept is better explained in terms of a process which enables

1.individuals of a country to accumulate more capital.
2.increasing the knowledge, skill levels and capacities of the people of the country.
3.accumulation of tangible wealth.
4.accumulation of intangible wealth.

Which of the statements given above is/are correct?

(a)1 and 2
(b)2 only
(c)2 and 4
(d)1, 3 and 4

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UPSC's answer: (c)

NCERT answers it: Class 11 Indian Economic Development, Ch 4 (Human Capital Formation in India); Class 8 Exploring Society: India and Beyond (Part 1), Ch 7 (Factors of Production).

Indian Economic Development (ch 4): physical capital is tangible, human capital is intangible. Exploring Society, Class 8 Part 1 (ch 7): human capital means skills, knowledge and abilities. So 2 and 4: (c).

Hindi version: UPSC's official question paper (2018), question 49 ↗

Ch 5 · Rural Development

Prelims 2017 · Q33

What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme?

1.It is a pan-India electronic trading portal for agricultural commodities.
2.It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

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

Show answer

UPSC's answer: (c)

NCERT answers it: Class 11 Indian Economic Development, Ch 5 (Rural Development).

How to solve it with NCERT: Class 11 Indian Economic Development, ch 5, describes e-NAM as a pan-India online portal connecting mandis, which is statement 1. A single national portal is what puts buyers from across the country in front of a farmer, so statement 2 follows. Answer (c).

Hindi version: UPSC's official question paper (2017), question 33 ↗

Prelims 2020 · Q63

Which of the following factors/policies were affecting the price of rice in India in the recent past?

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

Show answer

UPSC's answer: (d)

NCERT answers it: Class 11 Indian Economic Development, Ch 5 (Rural Development).

The one fact NCERT doesn't give: The government also trades in rice: it sells stocks in the open market and controls exports, and both move prices.

Class 11 Indian Economic Development, ch 5, covers MSP, FCI's buffer stocks and subsidised grain through the PDS (statements 1, 3, 4). Answer (d).

Hindi version: UPSC's official question paper (2020), question 63 ↗

Ch 7 · Environment and Sustainable Development

Prelims 2016 · Q98

Consider the following statements:

1.The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome'.
2.The Sustainable Development Goals have to be achieved by 2030.

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

Show answer

UPSC's answer: (b)

NCERT answers it: Class 11 Indian Economic Development, Ch 7 (Environment and Sustainable Development); Class 12 Contemporary World Politics, Ch 6 (Environment and Natural Resources).

Class 11 Indian Economic Development, ch 7: the UN set 17 Sustainable Development Goals in 2015, to be achieved by 2030 (2 true). Class 12 Contemporary World Politics, ch 6: the Club of Rome's 1972 book was 'Limits to Growth' (1 false). Answer (b).

Hindi version: UPSC's official question paper (2016), question 98 ↗

Prelims 2018 · Q4

How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)?

1.The NGT has been established by an Act whereas the CPCB has been created by an executive order of the Government.
2.The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.

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

Show answer

UPSC's answer: (b)

NCERT answers it: Class 11 Indian Economic Development, Ch 7 (Environment and Sustainable Development); Class 8 Exploring Society: India and Beyond (Part 2), Ch 4 (The Role of the Judiciary in Our Society).

The one fact NCERT doesn't give: The CPCB was set up in 1974 under the Water (Prevention and Control of Pollution) Act, 1974 — a law, not an executive order.

Class 11 Indian Economic Development, ch 7: pollution control boards promote cleanliness of streams and wells and improve air quality. Class 8 Exploring Society (Part 2), ch 4 names the NGT a specialised tribunal. That is statement 2. With the fact, 1 is false. Answer (b).

Beyond NCERT: the NGT was set up in October 2010 under the National Green Tribunal Act, 2010, to decide environmental cases quickly. So the first half of statement 1 is right; only the CPCB half is wrong. Source: National Green Tribunal, About Us, greentribunal.gov.in

Hindi version: UPSC's official question paper (2018), question 4 ↗

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