General & Miscellaneous — UPSC Prelims Economy previous year questions

Oeko-Tex is an international testing and labelling system. It checks that textiles carry no harmful chemicals.
Statement 1 is correct. The label helps Indian exporters sell in premium markets where buyers want chemical-free goods.
Statement 2 is correct. The label confirms that Eri silk meets global safety, environmental and quality norms. This opens eco-conscious markets.
So both are correct.
Remember: Eri silk is called 'ahimsa silk', since the cocoon is opened after the moth leaves. It comes mainly from Assam and the North-East.

Source: Ministry of Textiles, Central Silk Board notes on Eri silk; Oeko-Tex Standard 100

In dropshipping, the seller sets the price but keeps no stock. The seller passes the order to a supplier, who ships to the customer directly.
An affiliate model earns commission for sending customers to another site.
A transaction fee model charges a fee on each sale made on a platform.
An agency model has an agent selling on behalf of a principal for a commission.
None of these three matches the description.
Remember: in dropshipping the seller never touches the goods.

Source: Standard e-commerce business-model texts; MeitY e-commerce policy documents

ONDC stands for Open Network for Digital Commerce. It is an open protocol that lets buyers and sellers deal across different apps and platforms.
Its goal is to break the hold of a few big platforms by enabling interoperability.
Option (a) is wrong. It is not meant to give the government control over transactions.
Option (b) is wrong. It does not replace private players. Private players can join it.
Option (d) is wrong. It does not make UPI mandatory.
Remember: ONDC was set up in 2021 under the Department for Promotion of Industry and Internal Trade.

Source: DPIIT, Open Network for Digital Commerce; PIB

Statement 1 is correct. Aviation hull insurance covers the physical aircraft. This includes the body, engines and fitted equipment.
Statement 2 is correct. The Montreal Convention of 1999 makes the airline strictly liable for passenger death or injury up to a set limit. The family need not prove fault. India is a party.
So both statements are correct.
Remember: the Montreal Convention replaced the older Warsaw Convention system.

Source: Montreal Convention, 1999; Carriage by Air Act, 1972 (as amended)

Only one row is correctly matched, as per UPSC's key.
Row I is incorrect. The Directorate of Enforcement works under the Department of Revenue, Ministry of Finance. It does not work under the Ministry of Home Affairs.
Row II is correct. The Directorate of Revenue Intelligence enforces the Customs Act, 1962. It works under the Department of Revenue.
Row III is counted as incorrect in UPSC's key.
So option (a) is the answer.
Remember: The Enforcement Directorate is a Finance Ministry agency. It enforces FEMA, PMLA and the Fugitive Economic Offenders Act.

Source: Department of Revenue, Ministry of Finance (organisation of CBIC and Directorate of Enforcement)

None of the pairs is correctly matched.
Pair I is incorrect. The National Automotive Board works under the Ministry of Heavy Industries, not the Ministry of Commerce and Industry.
Pair II is incorrect. The Coir Board works under the Ministry of Micro, Small and Medium Enterprises, not the Ministry of Heavy Industries.
Pair III is incorrect. The National Centre for Trade Information works under the Ministry of Commerce and Industry, not MSME.
So the answer is none.
Remember: The Coir Board is headquartered in Kochi.

Source: Ministry websites: Heavy Industries, MSME, Commerce and Industry; Coir Board Act, 1953

Statement 1 is correct. Under the CSR Rules, activities that benefit only the company or its employees do not count as CSR.
Statement 2 is incorrect. Section 135 of the Companies Act, 2013 requires eligible companies to spend at least 2% of their average net profit of the last three years.
So only statement 1 is correct.
Remember: the CSR duty applies to companies with net worth of Rs 500 crore, turnover of Rs 1000 crore or net profit of Rs 5 crore.

Source: Companies Act, 2013, Section 135 and Companies (CSR Policy) Rules, 2014

Statement 1 is correct. An NFT can stand for a physical asset in digital form. Art, real estate titles and collectibles are examples.
Statement 2 is correct. Each NFT is a unique token recorded on a blockchain. A blockchain is a shared digital ledger that cannot be easily altered.
Statement 3 is incorrect. 'Non-fungible' means not interchangeable. One NFT is not equal to another NFT. So NFTs cannot be exchanged at equivalency like money or Bitcoin. They cannot serve as a general medium of exchange.
Remember: Fungible = interchangeable (a rupee note, a Bitcoin); non-fungible = unique.

Statement 1 is incorrect. The share of agriculture in GDP fell after 1991, as services grew faster.
Statement 2 is correct. India's share in world merchandise exports rose from about 0.5% to over 1.5%.
Statement 3 is correct. FDI inflows rose from a few million dollars in 1991 to tens of billions of dollars a year.
Statement 4 is correct. Forex reserves rose from under 6 billion dollars in 1991 to several hundred billion dollars.
Remember: Agriculture's GDP share kept falling after reforms.

Source: Previous year paper; answer key cross-checked against published sources

Statement 1 is correct. The 2016 policy says that India will follow the Doha Development Agenda and the TRIPS Agreement, including their flexibilities.
Statement 2 is correct. The Department of Industrial Policy and Promotion was the nodal agency for IPR, and the policy placed the Cell for IPR Promotion and Management under it.
Both statements are correct.
Update (2026): DIPP is now called the Department for Promotion of Industry and Internal Trade (DPIIT).

Source: National Intellectual Property Rights Policy, 2016 (DIPP, Ministry of Commerce and Industry)

Seychelles uses the Seychelles rupee.
Bhutan uses the ngultrum. Malaysia uses the ringgit. The Maldives uses the rufiyaa.
Remember: other rupee countries are India, Pakistan, Nepal, Sri Lanka, Mauritius and Indonesia (rupiah).

Source: Central Bank of Seychelles; IMF member currency listing

The World Development Report is published every year by the World Bank.
The International Bank for Reconstruction and Development (IBRD) is the main lending arm of the World Bank.
Each report studies one theme of development in depth.
UNDP publishes the Human Development Report.
The IMF publishes the World Economic Outlook.
The WTO publishes the World Trade Report.
Remember: The first World Development Report came out in 1978.

Source: World Bank, World Development Report series

A balance sheet is a statement of a firm's financial position on a given date.
It lists assets, liabilities and owners' equity.
So it shows the size and composition of assets and liabilities.
Profitability is shown by the profit and loss statement, not the balance sheet. So options (a) and (b) are wrong.
Market share is not part of a balance sheet. So option (d) is wrong.
Remember: Assets = Liabilities + Owners' equity.

Source: NCERT Class XII, Accountancy Part II (Financial Statements)

Inadequate tourism infrastructure is the main constraint. This includes poor connectivity, limited quality accommodation, weak amenities and safety concerns.
The first option is too broad. Indian hotels cover a wide price range.
The second option is wrong. India has pleasant seasons and hill regions.
The third option is an exaggeration. Many such destinations are open to tourists.
Remember: Infrastructure gaps are the usual answer in tourism questions.

Source: Ministry of Tourism, National Tourism Policy; Economic Survey

The Ecomark scheme is run by the Bureau of Indian Standards. It labels consumer goods that cause less harm to the environment.
Purity of food is certified by other marks such as AGMARK and FSSAI.
Protein content is not a criterion for Ecomark.
Economic viability is also not a criterion.
Remember: Ecomark was launched in 1991.

Source: Bureau of Indian Standards, Ecomark scheme

Full transfer of both ownership and management to private hands is the most complete form of privatisation. The government gives up all control.
Introducing private capital only dilutes ownership. The state may keep control.
Contracting out management leaves ownership with the government.
Transfer to workers is a different, limited form.
Remember: Disinvestment can be partial or strategic.

Source: Ministry of Finance, DIPAM disinvestment policy

Statement 1 is correct. The company is a legal person separate from its members. It can own property and sue in its own name.
Statement 2 is correct. A shareholder's liability is limited to the unpaid amount on his shares.
Statement 3 is correct. Shareholders elect the board of directors. They vote on the principle of one share, one vote.
Statement 4 is correct. The company is owned jointly by a large number of shareholders.

Source: NCERT Class XI, Business Studies, Ch. 2 (Forms of Business Organisation)

ESCAP is one of five regional commissions of the United Nations.
Its secretariat is in Bangkok, Thailand.
Singapore, Manila and Hong Kong host other bodies, such as the Asian Development Bank in Manila, but not ESCAP.
Remember: ESCAP was founded in 1947 as ECAFE.

Source: UNESCAP, About us

Statement 1 is correct. The draft was prepared by a committee headed by Dr K. Kasturirangan.
Statement 2 is incorrect. The Union Cabinet approved NEP 2020 on 29 July 2020. It replaced the National Policy on Education of 1986, which had lasted 34 years, not 38.
Remember: NEP 2020 replaced NPE 1986 (modified in 1992).

Source: Ministry of Education, National Education Policy 2020

A sole trader bears unlimited liability. A matches 4.
A partnership rests on a contract between partners. B matches 3.
Co-operatives aim to help weaker sections through mutual aid. C matches 2.
A public limited company has many shareholders who share the risk. D matches 1.
So the code is 4 3 2 1.

Source: Indian Partnership Act 1932; Companies Act 2013; Cooperative Societies law