UPSC Prelims 2026 Economics Question
Results
#1. The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?
The correct answer is:
(a) Aiding the flow of remittances from India and maintaining India’s creditworthiness
Explanation:
The Hilton-Young Commission recommended a fixed rupee-sterling exchange rate mainly to protect British financial interests.
The British Government wanted:
- smooth remittances from India to Britain (“Home Charges”),
- stability in payments,
- and maintenance of India’s international creditworthiness under British rule.
The fixed exchange rate helped Britain ensure steady financial transfers from colonial India.
Consider the following statements with reference to India’s response to climate change:
I. India’s Long-Term Low Emission Development Strategy (LT-LEDS) is a crucial tool for achieving net-zero emissions by 2070.
II. India’s 4th Biennial Update Report (BUR-4), submitted in December 2024, recorded around an 8% decrease in greenhouse gas emissions in 2020 over 2019.
III. Climate-resilient development necessarily depends on quick and short-term achievement of emission reduction targets.
Which of the following relationships among the above statements is/are correct?
- Statement I is empirically supported by Statement II.
- Statement III contradicts the approach implicit in Statement I.
- Statement I and Statement III together establish the premise of long-term sustainability of emission reduction targets.
#2. Select the correct answer using the code given below:
Correct Answer: (b) 1 and 2
Short Explanation:
- 1 is correct because BUR-4 data supports India’s long-term low-emission strategy.
- 2 is correct because Statement III emphasizes short-term targets, which contradicts the long-term approach of LT-LEDS.
- 3 is incorrect because Statement III does not support long-term sustainability.
Which among the following is/are the objective(s) of the Rainfed Area Development (RAD) initiative under the National Mission for Sustainable Agriculture (NMSA)?
- Encouraging monoculture in rainfed areas
- Increasing rice cultivation in irrigated regions
- Enhancing productivity and minimising climatic risks through Integrated Farming Systems (IFS)
#3. Select the answer using the code given below:
Correct Answer: (d) 3 only
Short Explanation:
The Rainfed Area Development (RAD) scheme under NMSA focuses on:
- Integrated Farming Systems (IFS),
- improving productivity,
- reducing climatic risks in rainfed areas.
It does not promote monoculture or increase rice cultivation in irrigated areas.
Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry?
- It allows Indian exporters to compete in high-end markets that prioritise chemical-free products.
- It confirms that Eri Silk meets international safety, environmental, and quality standards, enabling its entry into premium eco-conscious markets.
#4. Select the answer using the code given below:
Correct Answer: (c) Both 1 and 2
Short Explanation:
Oeko-Tex certification ensures textile products meet international safety and environmental standards, helping Eri Silk access premium eco-friendly global markets and boosting export competitiveness.


