Economic Survey 2025 Questions with Answers: Attempt Free Quiz Here

Correct Answer:  (d) 99%

Explanation:  As of 2023, approximately 99.2% of mobile phones sold in India were manufactured domestically, marking a significant shift from 2014 when 78% of mobile phones were imported. This transformation is attributed to the Indian government’s initiatives like ‘Make in India’ and production-linked incentive (PLI) schemes, which have encouraged both domestic and international manufacturers to establish and expand production facilities within the country. The number of mobile manufacturing units in India has grown from just 2 in 2014 to over 300 by 2024. This expansion has not only reduced import dependency but also positioned India as the world’s second-largest mobile manufacturer. The domestic production of mobile phones has also led to a surge in exports, surpassing ₹1,29,000 crore in 2024. This growth reflects India’s increasing prominence in the global electronics manufacturing landscape.​

Correct Answer:  (c) 55.3%

Explanation:  According to the Economic Survey 2024-25, India’s services sector has significantly increased its contribution to the nation’s Gross Value Added (GVA), rising from 50.6% in FY14 to 55.3% in FY25. This growth underscores the sector’s pivotal role in driving economic expansion, with an average growth rate of 8.3% between FY23 and FY25. The robust performance of the services sector has been instrumental in supporting GDP growth, especially during periods when manufacturing faced challenges due to global trade dynamics. The sector’s expansion is further evidenced by a 12.8% surge in services exports during April–November FY25, highlighting its growing global competitiveness. To sustain and enhance this momentum, the survey emphasizes the importance of fostering a skilled labor force and simplifying regulatory procedures, which are crucial for the continued progress of both the manufacturing and services sectors.

Correct Answer:  (c) 4.3%

Explanation:  According to the Economic Survey 2024-25, India’s share in global services exports doubled from 1.9% in 2005 to 4.3% in 2023. This significant growth highlights India’s expanding role in the global services market, driven by sectors such as information technology, business process outsourcing, and telecommunications. The country’s robust IT infrastructure and skilled workforce have been pivotal in achieving this milestone. Additionally, India’s services exports grew by 11.4% in 2023, surpassing the global average growth rate of 8.9%, indicating the competitiveness and resilience of India’s services sector. This upward trajectory underscores India’s potential to further enhance its position in the global services trade.​

Correct Answer:  (c) 16%

Explanation:  According to the Economic Survey 2024-25, the agriculture and allied activities sector contributed approximately 16% to India’s Gross Domestic Product (GDP) for the fiscal year 2023-24 (FY24) at current prices. This sector also supports about 46.1% of the country’s population, underscoring its critical role in the national economy and employment landscape. Over recent years, India’s agriculture sector has demonstrated resilience, achieving an average annual growth rate of 5% from FY17 to FY23. The sector’s performance is vital not only for food security but also for sustaining livelihoods and supporting broader economic growth. Continued focus on enhancing productivity, infrastructure, and market access is essential to further strengthen this sector’s contribution to the economy.​

Correct Answer:  (a) 3.2%

Explanation:  According to the Periodic Labour Force Survey (PLFS) for the period of July 2023 to June 2024, India’s unemployment rate remained steady at 3.2% for individuals aged 15 years and above. This stability reflects a balance between job creation and the growing labor force during that fiscal year.​ In rural areas, the unemployment rate experienced a slight increase, rising from 2.4% in the previous year to 2.5%. Conversely, urban areas saw a decline in unemployment, with the rate decreasing from 5.4% to 5.1%. These figures indicate a nuanced employment landscape, with urban regions showing improvement while rural areas faced minor challenges.​

Additionally, the Labor Force Participation Rate (LFPR) for individuals aged 15 years and above increased to 60.1%, up from 57.9% in the previous year. The Worker Population Ratio (WPR) also saw growth, reaching 58.2% compared to 56.0% in the prior period. These trends suggest a positive movement in employment metrics, highlighting an expanding workforce and increased employment opportunities across the country.​

Correct Answer:  (c) 6.3-6.8%

Explanation:  The Economic Survey 2024-25 projects India’s real GDP growth for the fiscal year 2025-26 (FY26) to be in the range of 6.3% to 6.8%. This projection reflects a stable growth outlook, supported by factors such as increased infrastructure investment and a rebound in private consumption. However, recent developments, including the imposition of 26% U.S. tariffs on Indian imports, have introduced potential headwinds. Analysts estimate that these tariffs could reduce GDP growth by 20-40 basis points, potentially bringing it closer to 6.1%. In response, the Reserve Bank of India has adopted an accommodative monetary policy stance, implementing consecutive rate cuts to stimulate economic activity. Despite these challenges, the government’s focus on enhancing infrastructure and fostering a conducive business environment aims to sustain economic momentum within the projected growth range.​

Correct Answer:  (c) 136%

Explanation:  At the end of December 2024, the Bombay Stock Exchange (BSE) market capitalization to Gross Domestic Product (GDP) ratio stood at 136%. This represents a significant increase over the past decade and is notably higher than other emerging market economies, such as China (65%) and Brazil (37%). The surge in this ratio indicates a robust expansion in the Indian stock market relative to the country’s economic output. Factors contributing to this growth include a rise in retail investor participation, with demat accounts increasing by 33% year-on-year to 18.5 crore by December 2024, and the total market capitalization of BSE-listed stocks surpassing the $5 trillion milestone in May 2024. These developments underscore the growing prominence of India’s equity markets and their increasing contribution to the nation’s financial landscape.​

Correct Answer:  (a) – 0.3%

Explanation:  In the first quarter of FY25, India’s credit-to-GDP gap narrowed to (-) 0.3%, a significant improvement from (-) 10.3% in Q1 of FY23. This positive shift indicates that bank credit growth has been outpacing nominal GDP growth for two consecutive years, reflecting a robust expansion in lending activities. The narrowing of the credit-GDP gap suggests a healthier alignment between credit expansion and economic growth, potentially reducing systemic risks associated with excessive credit deviations. Sustained credit growth, coupled with a stable economic environment, is essential for maintaining financial stability and supporting long-term economic development.​

Correct Answer:  (c) 7.7%

Explanation:  According to the Economic Survey 2024-25, India’s total insurance premiums experienced a growth of 7.7% in FY24, reaching ₹11.2 lakh crore. This increase was driven by a 6.1% rise in life insurance premiums, totaling ₹8.3 lakh crore, and a 12.8% growth in non-life insurance premiums, amounting to ₹2.9 lakh crore. Despite this positive trend in premium growth, insurance penetration—the ratio of total insurance premiums to GDP—declined from 4% in FY23 to 3.7% in FY24. This decline indicates that while the insurance sector is expanding in absolute terms, its growth relative to the overall economy is lagging, highlighting the need for strategies to enhance insurance adoption across the population.​

Correct Answer:  (c) 16%

Explanation:  As of September 2024, India’s pension sector experienced a 16% year-on-year growth in total subscribers, increasing from 675.2 lakh in September 2023 to 783.4 lakh. This growth is primarily attributed to the rising adoption of the National Pension System (NPS) and the Atal Pension Yojana (APY). Notably, APY subscribers, including those from the earlier NPS Lite, rose from 538.2 lakh in March 2023 to 629.1 lakh in September 2024. This substantial increase underscores the growing awareness and participation in formal retirement savings schemes among India’s working population, reflecting enhanced financial literacy and proactive retirement planning. The government’s initiatives to promote these schemes, along with the introduction of new programs like NPS Vatsalya in September 2024, have further contributed to this positive trend. Continued efforts to raise awareness and provide incentives are essential to sustain this momentum and ensure financial security for retirees in the future.​