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Daily Prelims MCQs – Economy – 3rd September 2025

  • Writer: TPP
    TPP
  • Sep 3
  • 6 min read
Daily Prelims MCQs – Economy – 3rd September 2025

Welcome to your Daily UPSC Prelims Current Affairs MCQs – 3rd September 2025. This is part of our subject-wise daily series where Wednesday is dedicated to Economy, helping aspirants stay updated with the latest developments and their linkages to the UPSC Prelims syllabus.

Today’s set of 5 questions has been carefully framed from recent policy changes, government schemes, and international economic developments, with detailed explanations to help aspirants:

  • Revise dynamic economy-related current affairs in a UPSC-friendly format

  • Connect static syllabus topics with evolving government initiatives

  • Build Prelims-level elimination and analytical skills

Topics covered today include:

  • PM SVANidhi scheme restructuring and lending extension

  • Youth unemployment trends in the Periodic Labour Force Survey (PLFS) 2025

  • Decision-making and funding of the World Trade Organization (WTO)

  • Employment trends and budget allocations under MGNREGS

  • The E-Commerce Export Hubs (ECEHs) initiative to boost cross-border trade

Stay consistent with these daily quizzes to strengthen your Economy preparation for UPSC Prelims 2026, while simultaneously revising current affairs and core economic concepts.

Click Here to read the Monthly Current Affairs Pointers (CAP).

QUESTION 1

With reference to the PM SVANidhi (Prime Minister Street Vendor’s Atmanirbhar Nidhi) scheme, consider the following statements:

  1. The scheme was launched in 2018.

  2. Recently, the government has extended the lending period from December 31, 2024 to March 31, 2030.

  3. The scheme does not provide beneficiaries with a UPI-linked RuPay Credit Card.

  4. The scheme is implemented by the Ministry of Home Affairs.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Answer (a)

Explanation:

  • The PM SVANidhi scheme was launched in June 2020, during the COVID-19 pandemic, as part of the government’s economic revival package. It aimed to provide affordable collateral-free loans to street vendors who had lost livelihoods during the lockdown. Hence, Statement 1 is incorrect.

  • The Union Cabinet recently extended the scheme’s lending period from December 31, 2024 to March 31, 2030, which is expected to benefit nearly 1.15 crore street vendors, including about 50 lakh new entrants. Hence, Statement 2 is correct.

  • The restructured scheme now includes a UPI-linked RuPay Credit Card for beneficiaries who successfully repay their second loan tranche. This facilitates digital transactions and offers cashback incentives. Hence, Statement 3 is incorrect.

    • UPI (Unified Payments Interface) is a real-time digital payment system in India, and a RuPay Credit Card is a domestic card network card that allows both online and offline transactions.

  • The nodal ministry for the scheme is the Ministry of Housing and Urban Affairs, working with the Department of Financial Services. The Ministry of Home Affairs has no role in implementation. Hence, Statement 4 is incorrect.

 

QUESTION 2

As per the recent Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI), which state recorded the highest unemployment rate among youth (15–29 years)?

(a) Himachal Pradesh

(b) Maharashtra

(c) Bihar

(d) Madhya Pradesh

Answer (a)

Explanation:

  • The Periodic Labour Force Survey (PLFS), India’s official labour market survey conducted by MoSPI, provides data on employment, unemployment, and labour force participation across states.

    • Note: A labour force includes all persons aged 15 years and above who are either working or actively seeking work.

  • According to the latest release (August 18, 2025), Himachal Pradesh recorded the highest unemployment rate in the 15–29 age group. Nearly 1 in 3 youth (29.6%) in the hill state was unemployed during the April–June 2025 quarter, more than double the national average of 14.6%.

  • The state also showed a rural youth unemployment rate of 29.1% and an urban youth unemployment rate of 31.3%, highlighting that the problem persists across both segments.

  • Interestingly, despite this high unemployment, Himachal Pradesh registered the highest labour force participation rate (LFPR) in the country at 70.3%, compared to the national average of 55%.

    • Inline definition: LFPR (Labour Force Participation Rate) is the percentage of the population aged 15 years and above that is either employed or actively looking for work.

 

QUESTION 3

With reference to the World Trade Organization (WTO), consider the following statements:

  1. The Ministerial Conference serves as the WTO’s highest decision-making body.

  2. The organization finances its annual budget mainly through contributions made by member countries.

  3. Dr. Ngozi Okonjo-Iweala is the first woman as well as the first African to hold the position of WTO Director-General.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1 and 3 only

Answer (c)

Explanation:

  • The World Trade Organization (WTO) has 166 members, representing about 98% of global trade. Its system is based on negotiated agreements, balancing both the rights and obligations of member nations.

  • The WTO’s Ministerial Conference—comprising trade ministers of all members—meets once every two years and is the apex decision-making authority. Beneath it, the General Council functions year-round in Geneva, handling daily operations and dispute settlements. Hence, Statement 1 is correct.

  • The WTO’s budget is funded primarily by member contributions, not by external donors. These contributions are calculated based on each country’s share in world trade. (Inline definition: Contribution formula = a proportional system where members with larger global trade shares contribute more to the WTO budget.) Hence, Statement 2 is correct.

  • Dr. Ngozi Okonjo-Iweala, a Nigerian economist and former finance minister, assumed office as the 7th Director-General of the WTO on March 1, 2021. She created history as both the first woman and the first African to lead the institution. Hence, Statement 3 is correct.

 

QUESTION 4

With reference to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), consider the following statements:

  1. The number of families working under the scheme has consistently increased from 2021–22 to 2024–25.

  2. The scheme has been suspended in Assam since 2022.

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

Answer (d)

Explanation:

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was passed in 2005, and the scheme was rolled out in 2006 to guarantee at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. Initially, it covered 200 backward districts, was expanded to 130 more in 2007–08, and by 2008–09 it covered the entire country.

  • During 2020–21, demand for work peaked due to the COVID-19 pandemic, with a record 7.55 crore rural families availing employment. Since then, the number of families working under MGNREGS has declined, not increased:

    • 2021–22: 7.25 crore

    • 2022–23: 6.18 crore

    • 2023–24: 5.99 crore

    • 2024–25: 5.79 crore

      Hence, Statement 1 is incorrect.

  • The scheme has not been suspended in Assam. Instead, it has been suspended in West Bengal since March 2022 due to alleged irregularities. Thus, for the past three financial years (2022–23 to 2024–25), West Bengal’s data is excluded from the national beneficiary count. Hence, Statement 2 is also incorrect.

  • The Government of India spends nearly ₹1 lakh crore annually on MGNREGS. For 2025–26, the allocation stands at ₹86,000 crore. Till date, the total expenditure under the scheme has crossed ₹11.57 lakh crore.

 

QUESTION 5

With reference to the E-Commerce Export Hubs (ECEHs) initiative, consider the following statements:

  1. The initiative seeks to establish dedicated zones to facilitate cross-border e-commerce exports from India.

  2. It is designed to help SMEs, artisans, and small businesses by lowering logistics costs and reducing turnaround time.

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

Answer (c)

Explanation:

  • The E-Commerce Export Hubs (ECEHs) initiative was launched to strengthen India’s participation in the rapidly growing cross-border e-commerce trade. It provides dedicated zones where export-related activities can be handled more efficiently. Hence, Statement 1 is correct.

    • Cross-border e-commerce refers to online trade of goods/services between businesses or consumers across different countries.

  • The scheme specifically targets SMEs (Small and Medium Enterprises), artisans, and micro-businesses, who often face high logistics costs and procedural delays. By offering integrated facilities like customs clearance, quality checks, packaging, and off-port warehousing in one location, the initiative reduces both cost and time. Hence, Statement 2 is correct.

  • Additionally, ECEHs are designed to streamline regulatory processes and simplify re-imports of returned goods (a major challenge in online exports).

 Previous Daily UPSC Prelims MCQs Set

Previous Week Current Affairs MCQs Set


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