Question 1

The Economic Survey is prepared by the Reserve Bank of India (RBI) or NITI Aayog.

Accepted Answer

It is prepared by the Economics Division of the Department of Economic Affairs (DEA) within the Ministry of Finance, under the Chief Economic Adviser.

Question 2

The presentation of the Economic Survey is mandated by the Constitution of India.

Accepted Answer

The Economic Survey is not mandated by the Constitution. It is a government practice, not a legal requirement.

Question 3

Consider the following statements regarding the Economic Survey of India: 
1. It was delinked from the Union Budget in the year 1964. 
2. It is prepared by the NITI Aayog under the guidance of the Chief Economic Adviser. 
3. Article 112 of the Indian Constitution mandates the presentation of the Economic Survey before the Budget. 
How many of the above statements are correct?

Accepted Answer

(a) Only one — Statement 1 is correct; the Survey was delinked from the Budget in 1964. Statement 2 is incorrect; it is prepared by the Department of Economic Affairs (Ministry of Finance), not NITI Aayog. Statement 3 is incorrect; the Economic Survey is not constitutionally mandated. Article 112 mandates the Annual Financial Statement (the Budget).

Question 4

Match the macroeconomic terms highlighted in the Economic Survey (List I) with their accurate descriptions (List II):
List I:
A. Real GDP
B. Gross Value Added (GVA)
C. Import Cover
D. Capital Expenditure
List II:
1. The number of months of imports that can be sustained by a country's current forex reserves.
2. Government expenditure resulting in the creation of physical or financial assets.
3. The total monetary value of final goods and services produced, evaluated at constant prices.
4. The measure of total output minus the value of intermediate consumption.
Select the correct code:

Accepted Answer

(a) A-3, B-4, C-1, D-2 — Real GDP evaluates output at constant prices (adjusting for inflation) (A-3). Gross Value Added (GVA) is the value of output minus intermediate consumption, providing a sector-specific picture (B-4). Import cover measures forex reserves against monthly import requirements (C-1). Capital Expenditure is spending on asset creation (D-2).

Question 5

Assertion (A): The Economic Survey 2024-25 emphasizes the need for structural supply-side interventions rather than just monetary policy tools to manage food inflation.
Reason (R): Food inflation in India is highly sensitive and easily controlled by changes in the policy repo rate set by the Monetary Policy Committee (MPC).

Accepted Answer

(c) A is true but R is false — Assertion (A) is correct; the survey advocates for supply-side measures like better storage and climate-resilient farming to tackle food inflation. Reason (R) is false; food inflation is notorious for being largely driven by supply shocks (weather, supply chain bottlenecks) and is highly INSENSITIVE to monetary policy (interest rates).

Economic Survey 2024-25 Tabled in Parliament

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