UPSC Mock Interview – Questions on General Economy

The UPSC Mock Interview on General Economy is a significant component in the preparation process for aspirants aiming to excel in the Civil Services Examination. This specialized interview segment delves into candidates’ understanding of economic concepts, policies, and their implications on both national and international levels. The General Economy interview aims to assess candidates’ analytical and critical thinking abilities regarding economic issues, their grasp of economic theories, and their awareness of contemporary economic challenges. Aspirants are expected to showcase their knowledge on topics such as economic reforms, fiscal and monetary policies, global economic trends, and their potential impact on India. This simulation provides candidates with an opportunity to articulate their perspectives on economic issues, thereby evaluating their suitability for administrative roles that necessitate a comprehensive understanding of economic dynamics

UPSC Mock Interview Questions on General Economy

Industrial Policy and Employment

1. What’s the deal with coal nationalization and coal allocation? How does the private sector fit into this?
2. Have you ever heard of IPRs? What are they?
3. Are IPRs and competition in conflict? How can this conflict be resolved?
4. Can you explain compulsory licensing?
5. Why should the government support the MSME sector?
6. Can you make a rough guess about the percentage of public enterprises among all industries in India?
7. What’s the current tourism situation in India?
8. What’s your take on medical tourism?
9. How do you feel about developed countries conducting clinical trials of medicines on India’s less fortunate?
10. India is the largest importer of defense equipment. How can the government boost defense manufacturing? Will involving the private sector increase manufacturing costs?
11. Why is China more advanced than India in manufacturing?
12. How has our manufacturing sector been performing in recent years? What challenges does it face?
13. What steps has the government taken to provide easy credit to MSMEs?
14. Apart from credit, what other initiatives have been introduced for MSMEs?
15. Can you explain what GeM is?
16. What challenges are faced in promoting entrepreneurship, and how can we encourage it?
17. How does e-governance contribute to the system?
18. What are the benefits of using ICT in implementing GST?
19. Why do we need Public Sector Undertakings (PSUs)?
20. Is China leading in the manufacturing sector compared to India? What should India do to catch up?
21. Tell me about the benefits of the automobile industry and name some industries dependent on it.
22. What are your thoughts on Air India disinvestment? Why are many Indian players not participating?
23.  What’s Air India’s share in the domestic market? Is disinvestment good for the aviation sector?
24. Can we expect growth in the steel sector in India? Why are big steel companies acquiring debt-ridden steel sector companies in India?
25. Why are leather industries in India not doing well?
26. How would you improve the performance of a struggling Public Sector Undertaking (PSU) if you can’t lay off employees and have limited funds?
27. The Jio revolution in the telecom sector is causing a decline in government revenues. How do you view this issue?
28. Jio is now charging tariffs for internet services. Do you think this goes against the interests of customers?
29. What is the current status of the food processing industry in India and your state?
30. Why do the food industry and businessmen still fear government inspections?
31. What are the obstacles to the development of the food processing industry, and how can we overcome them?
32. What innovative measures would you take to promote the food processing industry in your district?
33. What steps are needed to reform the tea industry?
34. How is the international price of tea determined? Are you familiar with auctions?
35. What measures are required to improve the textile sector?
36. If you were appointed as Tourism Secretary, what steps would you take to increase Foreign Tourist Arrivals in the country?

 Banking and Monetary policy

1. What’s the difference between merging banks and recapitalizing banks?
2. The government plans to privatize banks. Do you think it’s a good idea and will have positive outcomes?
3. Is recapitalization a beneficial strategy for banks?
4. Why do public banks have higher non-performing assets (NPA) than private banks? Should all public banks be nationalized? What role do individual defaulters play in the NPA problem?
5. How did the merger of SBI change its position?
6. Was demonetization a good or bad move? Did all the black money come back?
7. How can we reduce the burden of non-performing assets (NPA)?
8. What steps can be taken to break the corporate-bank nexus contributing to the NPA problem?
9. What are SLR and CRR, and why are they used? Should we consider reducing CRR?
10. Can you explain monetary policy? Who sets it, and what is the repo rate?

 Budget and Fiscal 

1. What is fiscal deficit?
2. What is a revenue deficit?
3. Why are savings important?
4. Why are investments necessary?
5. How do savings and investments contribute to economic growth?
6. What is universal basic income (UBI)? What are its pros and cons? Is there a better alternative?
7. What are the potential issues with minimum basic income?
8. What is direct benefit transfer, and can you name any scheme that uses it?
9. How does the government finance fiscal deficit?
10. What is the FRBM Act?
11. What’s new in Income Tax? What steps is the government taking?
12. How can we expand our tax base?

 Infrastructure

1. What is PPP, and has it been successful in India?
2. Isn’t it shifting government responsibilities?
3. How can we assess the success of PPP?
4. How would you define a smart city?
5. How are the Sagarmala/Bharatmala projects progressing?
6. Tell us about the Golden Quadrilateral.
7. In the construction sector, mention one structural issue and one crisis.
8. Was demonetization also a crisis, and how did it impact laborers?
9. What is the name of the ministry that handles roads?
10. What recommendations would you give to the Ministry of Road Transport & Highway?
11. What new technologies are being employed in road construction?
12. India has been slow to adopt new technology in construction compared to China’s rapid progress. Do you think we missed opportunities, and where did we fall short?
13. What is your opinion on river interlinking projects?
14. What is the current status of road safety in India, and what measures can be taken to improve it?

 General Economics and Current affair

1. How do you see India’s economic growth, and what factors would you consider?
2. Isn’t sustainable growth an essential aspect of it?
3. If someone in a pollution-free village is content with life, would you see it as economic growth?
4. What challenges does India face in transitioning to a knowledge economy?
5. What is the exchange rate, and what’s the current dollar rate against INR?
6. Define headline inflation, and what is the current retail inflation?
7. By linking PAN and Aadhar, what benefits would the government gain, and what might people lose?
8. Explain UBI. Is it viable, and are there any countries implementing it?

• Do you think UBI is a good idea?
• Since targeted delivery services have inclusion and exclusion errors, is UBI a better option as it’s not limited in its coverage?

9. Despite being the 5th largest economy, India has 20% of people below the poverty line with significant inequality. What solutions do you propose?
10. With a large number of engineers facing unemployment, what measures are needed?
11. Is having an expiry date on currency notes similar to a debit card a wise decision?
12. China’s economy is much larger than India’s. Do you think India should adopt autocracy?
13. How can we enhance the employability of Indian engineers?
14. Why is software dominant in India and hardware in China? How can India boost hardware production?
15. Explain the digital divide, and what is the level of digital literacy in India?
16. What are three major issues between the RBI and the government?
17. In your opinion, why should the RBI governor head the board? Do you think there should be an autonomous payment regulatory board?
18. Why is it important for the RBI to be independent? Are central banks in other countries, like the Bank of England, also independent?
19. In your view, who would make a better RBI governor—an economist or a bureaucrat?
20. Explain some benefits of GST. Should petroleum and liquor be included in GST?
21. Share information about direct benefit transfer in your state. Is it functioning effectively?
22. What is meant by demographic dividend?
23. To benefit from the demographic dividend, the working-age population needs jobs. How is India doing in this regard?
24. Why is there a gap between the skills possessed by youth and the available job opportunities? What measures should be taken?
25. Retail inflation has hit an 18-month low due to a fall in vegetable prices, benefiting consumers but hurting farmers. What can be done to assist farmers?

           (a) Suggest something that can be done immediately.

          (b) Explain price deficiency payment. Does it not lead to inflation?

26. How has “land” been associated with various issues, and why?
27. What are the challenges associated with a large area under contract farming?
28. Despite significant investments, PSUs are not performing well. What are the reasons, and what should be done about it?

           (a) What immediate steps can be taken?

           (b) Do you know the amount invested in PSUs and the total number of PSUs?

29. Explain the concept of Digital India.
30. What are the implications of increased FDI in the telecom sector?
31. Share your perspective on PSUs, particularly their utility in high-end technological areas.
32. What is your opinion on government projects managed by PSU compared to those handled by private companies with high investments?
33. Can you explain the difference between the Balance of Payment and the Balance of Trade? With which countries do we have a deficit, and with which do we have a surplus?
34. How do you define a smart city, and what are its components? How can a city be transformed into a smart city?
35. What progress has your city made in becoming a smart city?
36. Discuss the impact of the Swachh Bharat Mission. Has it been successful?
37. Do we have sufficient legal measures for data security? Which committee recently reported on data protection?
38. What is an e-way bill?
39. Can you name the members of the GST Council?
40. Define smart governance.
41. Explain the difference between SDG and MDG.
42. Are you aware of any ship recycling plants in India?
43. Compare education from private and public universities. What are the pros and cons of each?
44. What are aspirational districts, and can you name any from your state?
45. Why is there high poverty in your state, and what suggestions do you have to address it?
46. Share your perspective on linking Aadhaar with PDS. How can we make it efficient without excluding beneficiaries?
47. Recently, the government announced something about MSP. Can you provide details? Do you think 1.5 times the production cost is sufficient? What issues are involved in calculating MSP?
48. How do you define ‘development’?
49. How can we prevent migration from rural areas to cities?
50. Explain the concept of inclusive growth. Does it mean excluding the rich and well-off?
51. Define innovation and discuss the role of disruptive technologies in the employment scenario.
52. What is the 4th industrial revolution, and what is India’s strategy in skill-building? How can technology increase employment?
53. Compare fiscal stimulus and private investment. Which one is better?
54. Is India’s spending on the space sector a waste of money? Explain the role of FDI in the space sector. How is the space sector different from the defense sector?
55. How can tax collections be improved, and revenue deficit reduced?
56. How do we correct the irony where consumers pay a lot for food, but farmers don’t get a fair price?
57. What is the significance of Skill India, and how can skills be improved?
58. What is the significance of Make in India? What is the contribution of manufacturing and services to Indian GDP?
59. What is per capita GDP? What are India’s per capita GDP and total GDP?
60. What is GDP, and which country has the highest GDP? What is India’s rank in world GDP?
61. What percentage of Indian exports is in the global trade basket? Has it increased or decreased recently?
62. Is export-led growth necessary, and why should we focus on exports instead of the domestic market?
63. Explain Special Economic Zones (SEZ). What are the reasons for the poor performance of SEZs in India compared to their success in China?
64. How is inequality measured? Is the Gini coefficient a good measure, and is inequality good or bad? How does it impact society?
65. Telecom rates are decreasing, but companies are not in good shape. Why is that, and how can they become profitable?
66. Define corporate governance. What are the key issues currently, and what recent amendments have been made in the Companies Act, 2013? How does an independent director help?
67. What is GST, and how is it different from previous taxes? Provide an overview.
68. Have you heard about the Twin Balance Sheet issue, and how can it be solved?
69. What is the time frame to declare an asset as a non-performing asset?
70. What is SBM (Swachh Bharat Mission), and when was it launched? What is the status in your town? What do ODF, ODF+, and ODF++ mean?
71. Is there distress in rural India? What are the reasons, and how can we address the issue?
72. In which sectors can globalization benefit India?
73. What is the total Forex reserve of our country?
74. Does technology cause job loss? Should robots replace human workers?
75. What is biomedical waste, and why is it important? Tell me about the Biomedical Waste Management Act 2016. What are the methods of segregation and disposal?
76. Explain headline inflation. What is the KALIA scheme, and how is it different from the Prime Minister’s scheme?
77. Who are small and marginal farmers? What is the percentage of landless agricultural laborers in the country?
78. Should the Food Security Act be continued or scrapped?
79. There have been talks about financial consolidation. What is it?
80. What are the schemes for doubling farmers’ income?
81. Who sets the income criteria for the economically weaker section, and where is it written?
82. What are the schemes in the MSME sector?
83. What are the current characteristics of the Indian economy? What is the current GDP and inflation rate?
84. What recent steps has the Government of India taken to prevent money laundering? Why do we call black money “black”?
85. What is one significant labor reform that the government is trying to undertake? What three things does the government consider while making laws for employees?
86. How can we avoid the collapse of bridges, as happened recently?
87. Is India’s manufacturing base low? Why did the service sector develop?
88. Why is CSR (Corporate Social Responsibility) made compulsory? Which law made it compulsory, and what are the criteria for CSR?
89. What is your opinion on the PM Kisan scheme? Do you think farmers will be satisfied? Should the amount be increased in the future?
90. What positive outcomes did demonetization achieve? Was RBI prepared for demonetization? Why did RBI fail as a regulator?
91. How are currency notes printed? Why don’t we consider non-Gandhi banknotes?
92. There’s a perception that the police are corrupt, but I believe RBI is even more corrupt than the police.
93. Two significant issues in the banking sector are corporate debt restructuring and loan waivers. What is the difference in the principles behind these two? Does loan waiver create a moral hazard?
94. Explain the Digital India (DI) campaign and its components. Is there a connection between Digital India and demonetization?

                     (a) What about towers?

                     (b) Why are people concerned about it?

                      (c) How would you convince people about towers?

                      (d) Which government agency monitors radiation levels?

95. Do you believe ATMs will be completely eliminated in the future? What steps are necessary for Digital India?
96. Why does China have a larger manufacturing base than India? For India to match China’s manufacturing, what would be its greatest advantage? Do you genuinely believe that India can surpass China in manufacturing?
97. What is the government’s policy regarding the telecom sector in manufacturing? Why is India lagging in manufacturing?
98. What, in your opinion, should be the future course of Indian IT? How can India compete with foreign nations in IT skills?
99. India is a leading drug manufacturer globally, leading to a drug menace. What can be the solution to this problem?
100. Why is consumer awareness and drug regulation weak in India, even after 70 years of independence?
101. It is said that foreign companies collude with domestic companies to raise drug prices in our country. Do you think that is correct? The same is the case with medical devices. What do you think are the effects of these policies?
102. What role do doctors play in increasing drug prices? Should there be a law making it mandatory for doctors to prescribe generic medicines?
103. Can you explain the differences between the economies of India and China? How can we address the significant difference in the sizes of our economies?
104. Why is employability low among graduates? What percentage of GDP is spent on education and research and development (R&D)?
105. Explain the energy scenario in India, including the energy mix.
106. What are the main sources of renewable energy, and what is our target in this regard?
107. Can you explain GST and the composition of the GST council? How does the GST Council function?
108. What is TRIPS+? Why is India called the pharmacy of the world? Should we change our IPR law?
109. What is a GI tag, and what is its significance? What is the status of the Rasgulla, and which other state claimed its origin?
110. Are you familiar with the happiness index? Which is better, GDP or the happiness index, and why?
111. What are the different types of digital threats? How can one detect when a cyber-attack has taken place?
112. What are the issues in the healthcare sector in India, and how could IT provide solutions to them?
113. What are the misuses and dangers of IT?
114. What is Gandhiji’s trusteeship theory, and is it relevant in today’s times? Could it be implemented in a modern capitalist economy?
115. Should railways be privatized? In which non-core areas is the private sector active in railways? Name some public sector units in railways. What benefits will the bullet train bring to India, and is it needed?
116. What is the current status of research in the country?
117. What disruptions are we witnessing in the telecom sector?
118. Does any country use satellite communication in the telecom sector?
119. As the Telecom Secretary, how would you promote the telecom sector?
120. Recently, the former ISRO chairman obtained a license for new telecom technology. Are you aware of this development?
121. What is cyber security, and what measures does India have in place to protect user data?
122. Have you heard about RBI and SBI? What sets them apart?
123. Something related to RBI is happening today. What is it? (Monetary Policy Committee meeting is scheduled for today). What is repo rate, and why does RBI set it?
124. In reality, inflation is good for the economy. Why do you believe that inflation is bad for the economy?
125. Explain what happens when inflation exceeds the range you mentioned.
126. Are you suggesting that the economy will slip into recession if inflation is not controlled?
127. What are the problems associated with Public-Private Partnerships (PPPs), and why is India struggling to execute them successfully?
128. What are the possible sources of funding, and what is the difference between tax and cess?
129. Do you think we are investing our savings properly?
130. What is CRR? Is it held with the bank or with the RBI? Does it earn any interest? Is it in a current account? Why is there a CRR requirement with the RBI?
131. Which do you consider more important – a savings-based economy or a consumption-based one?
132. India had several skill development programs even before 2014. What changes have been made since then?
133. What do you know about Sector Skill Councils? How many of them exist?
134. Tell me about the Mauritius route of investment. What is the recent amendment made to the Double Taxation Avoidance Agreement (DTAA)?
135. What is a hawala transaction, and how is money actually transferred?
136. What is the difference between a humanoid and a robot?
137. Why is energy security crucial for India?
138. What are the problems associated with Corporate Social Responsibility (CSR), and how can they be overcome?
139. What percentage of the population is skilled in India, and what is the world average?
140. Identify three primary and three secondary problems that today’s government should focus on.

 Miscellaneous Economic Issues

1. What is your opinion on subsidies? Can you name some subsidies like MSP, Fertilizer, and PDS? Are these subsidies effectively reaching the beneficiaries, or should they be discontinued due to excessive wastage of money?
2. What steps should the government take in the future to achieve two-digit economic growth?
3. Which subsidy has the government urged to give up?
4. Name three public and three private sector banks.
5. Define GDP, HDI, and Sensex. Explain the relationships among them.
6. If a nation has high GDP growth, does it necessarily mean it has a high HDI? Mention the components of HDI.
7. You mentioned income inequality earlier. Can you provide more information about it?
8. Explain Gini coefficient and Lorenz curve.
9. What actions should the government take to improve HDI?
10. Should companies like Jio be promoted? Are trends like mergers and acquisitions (M&A) beneficial for the market?
11. Why do we need regulators? Why can’t we let the market work freely? Is it a good principle?
12. Recently, I saw an advertisement featuring a tobacco farmer appealing to the government for assistance due to the influx of foreign tobacco products in the market. The government is also losing revenue because of it. As a revenue officer, what do you suggest?
13. What is the share of agriculture in our economy?
14. What proportion of the population is employed in agriculture?
15. What are the government’s current debt levels, and what should be the ideal levels?
16. What is the expected fiscal deficit for 2017-18? What is the target level in the long term?
17. What are NPAs?
18. Explain the difference between NPA and stressed assets.
19. After how much time do stressed assets become NPAs?
20. What are the present NPA levels for public sector banks and the overall banking sector?
21. Despite a significant portion of the population being involved in agriculture, why is its share in the economy so low?
22. Should agricultural income be subject to taxation?
23. What is tax reform, and what steps should be taken?
24. Is our current tax base sufficient? Explain measures to expand it.
25. Which is preferable, direct or indirect tax? Provide reasons for both.
26. Are labor law reforms necessary for promoting exports? If yes, what has the government done about it?
27. Provide a description of India’s GDP.
28. What are the contributing areas to GDP?
29. Can you share India’s export and import figures? Which one is higher?
30. What are the major items we export?
31. What modes of transportation are used for exports? Rail, road, air, or others?
32. How many ports are there in India?
33. Are you familiar with maritime security in India? If so, name some ports.
34. Have you heard about Indradhanush 2.0?
35. Explain TRIPS and the dispute on Pharma.
36. What is the duration of a patent’s life?
37. What are ARC’s, and what have they traditionally done? Are there any recent changes? Have you heard about them?
38. What are your thoughts on economic indicators?
39. Discuss the challenges in the economy.
40. Have you heard of Make in India? Can you explain it?
41. Name a sector with significant potential for employment.
42. Share your perspective on infrastructure. Where can we generate employment?
43. Have you heard about Dedicated Freight Corridors? Can you name a few? What comes to mind when talking about corridors?
44. What is the issue with the Panama Papers leak? How many Indians were involved, and which Indian laws were violated? Provide specific details about the firm and how the issue came to light.
45. What are Payment Banks, and how do they make money? Can you name some of these banks?
46. Compare the startup ecosystem from 2012 to 2017. What new policies has the government announced?
47. What are shell companies?
48. Infrastructure investment in India is low, and the government needs funds. What are the options, including borrowing? Which Act mentions these options, and what is the target for this year?
49. What is anti-dumping?
50. Define dumping and explain why it is considered bad. How does it harm domestic industries?
51. What is national income? Do students from institutions like IIT and AIIMS contribute positively or negatively to national income?
52. What is the Finance Commission, and what is its role? Can you compare it with the last commission and highlight the differences concerning local bodies?
53. What is DIPAM?
54. Why is the government disinvesting in PSUs?
55. What are the problems with credit rating agencies? How does the comparison between private companies and sovereign countries come into play? Why is India concerned about South Africa’s junk status?
56. What is the effect of Free Trade Agreements (FTAs) on India? Should we pursue more FTAs, and what are the associated problems?
57. Explain liberalization in the service sector.
58. Discuss Universal Basic Income (UBI) and its consequences.
59. What are the issues associated with startups these days? Specifically, why are IT professionals starting cab and food-related startups, and how do they contribute to the economy?
60. Is India experiencing jobless growth? Share your views and reasons.
61. Explain the concepts of Fiscal Deficit and Revenue Deficit.
62. Can fiscal deficit be negative or positive if revenue deficit is negative?
63. What are tax havens? Why don’t all countries collectively take action against them? Name some tax havens.
64. Which country has the world’s largest economy?
65. Define a budget.
66. How is the budget prepared?
67. Recently, it was pointed out that GST is not just a radical tax reform but it is also a transformative tax policy. Do you agree?
68. What were the objectives of Demonetisation, and what have been its outcomes in relation to its objectives?
69. What is your opinion regarding the impact of demonetization on terror financing?
70. For disinvestment, would you support the exit of the government from the market-based economy?
71. Do you support the privatization of Air India? Why?
72. Don’t you think that private airlines might not be interested in providing air services to areas like the North-east? Moreover, in emergency situations such as evacuation from war-torn areas like Syria and Yemen, private airlines may not be equipped to handle it. What are your thoughts?
73. What changes do you see in the Indian economy since independence?
74. Which policies were responsible for such changes?
75. What is HDI?
76. What about the Gross Happiness Index? Provide recent data. What is India’s position compared to Bangladesh and Pakistan?
77. How does China’s currency depreciation impact the Indian rupee? What steps would you take to appreciate the rupee?
78. Tell me about RBI’s monetary policy and its key highlights.
79. Despite a huge market for the automobile sector, why is there less focus on R&D in India? What is your suggestion to enhance R&D?
80. What is the gold monetization scheme, and why is it failing to attract Indians? What is your suggestion to improve it?
81. What is the solution to NPAs?
82. How is VAT different from GST? Explain EPCG, Dumping, etc.
83. What is SEZ, provide examples. How can SEZ be reinvigorated? Why are there no SEZs in Ghaziabad, Faridabad, etc.? What is the role of Minimum Alternate Tax (MAT) in SEZ?
84. How will you attract FDI?
85. Tell me about the criteria for ease of doing business.
86. Do we need high-speed railways? Why is the railway system highly subsidized? Is it possible to eliminate this subsidy?
87. How do you connect protectionism with the Make in India initiative?
88. Why is Make for India a better and more sustainable approach than Make in India?
89. Why should India follow China’s growth model instead of forging its own path?
90. How do you plan to boost India’s exports?
91. Identify the issues in the steel sector.
92. When discussing the E-commerce sector, do you believe India should restrict foreign companies like Amazon and prioritize indigenous businesses, or should market forces be allowed to govern it?
93. As someone working in the Central Excise department, do you anticipate a decline in the influence of excise officers after the implementation of GST?
94. The government claims that GST will bring benefits, but gains for some may come at the expense of others. Who stands to lose with GST?
95. You mentioned that customers will benefit from tax streamlining. Does this imply a decrease in tax rates?
96. Do you know the GDP figures in nominal terms and PPP terms?
97. What does PPP stand for?
98. Do you find PPP misleading?
99. Define ease of doing business.
100. What is India’s ranking in the Ease of Doing Business index?
101. According to the World Economic Forum (WEF), what is India’s ranking?
102. What is India’s ranking in the Human Development Index (HDI)?
103. What does GER stand for, and what is the current GER?
104. Is India considered a mixed or open economy?
105. Explain what sick PSUs are and provide examples.
106. Distinguish between privatization and disinvestment.
107. What is the effect of Free Trade Agreements (FTAs) on India, and should we engage in more FTAs? What challenges may arise?
108. Describe liberalization in the service sector.
109. Explain the Singapore H1B visa issue and propose potential solutions.
110. Define Make in India, and specify the types of jobs you aim to create through this initiative.
111. What was the impact of GST?
112. Why was GST implemented, and what benefits does it offer?
113. Did the demonetization effort successfully retrieve all currency notes, and do you believe it effectively addressed the issue of black money?
114. In your opinion, should society be cashless or cash-based?
115. Explain what a Ponzi scheme is.
116. Do you think the railway system should be privatized?
117. Highlight the significance of the Indian Railway.
118. What is the impact of merging the rail budget, and does it affect the accountability of the Minister of Railways in Parliament?
119. What challenges are currently affecting Indian Railways?
120. Outline the reforms being implemented by Indian Railways.
121. Discuss the potential benefits and drawbacks of further dividing Indian Railways, with Vizag seeking an additional division.
122. Address the safety measures and responses to railway accidents.
123. Explain the rationale for not operating all trains at the same speed.
124. Provide insights into the congestion issues on the Indian rail network.
125. What is the need for Dedicated Freight Corridors (DFC)?
126. Evaluate the feasibility of the bullet train project.
127. Explore the impact of demonetization on the informal sector.
128. Differentiate the powers of a Maharatna, Navratna, and a Mini Ratna PSU.
129. Explain the differences between 5G, 4G, and 3G.
130. Describe the Swiss Challenge Model.
131. Define PPP (Public-Private Partnership).
132. Discuss the challenges faced by PPP.
133. Address the criticisms surrounding PPP.
134. Explain the annuity model.
135. Define rural banking.
136. Should Public Sector Banks be privatized, and what is the rationale behind establishing branches in rural areas with high operational costs? Is it more efficient to delegate this responsibility to the private sector?
137. Share your views on loan waivers.
138. Consider the argument for waiving farmers’ loans to prevent suicides.
139. Propose alternatives to loan waivers.
140. Explore the reasons why banks may hesitate to lend to farmers.
141. Outline the measures announced for agriculture in the budget.
142. Who determines the Minimum Support Price (MSP)?
143. What are your thoughts on startups, and can you mention some steps taken by the government to support them?
144. Explain what angel investment is and the concept of angel tax.
145. Define a cashless economy and discuss its taxation benefits.
146. How can the implementation of a cashless economy be achieved?
147. Do you think mandating a shift to a cashless economy is the right approach?
148. What are the key provisions of the RERA Bill (Real Estate Regulatory Authority)?
149. NPA (Non-Performing Asset) has always been present. Why is it considered a significant issue now?
150. Identify the bank in India with the highest numbers and percentage of NPAs.
151. Is RBI (Reserve Bank of India) accountable for the NPA situation, and if regulatory bodies are not fulfilling their roles, who should hold them accountable?
152. Have you heard of the FRDI Bill, and what was the most controversial clause in it? Explain the Bail-in clause.
153. Is the government planning to recapitalize banks, and how might FRDI reduce the need for government recapitalization?
154. If the government decides not to capitalize one day, how will banks raise capital?
155. What recent statement did the Chief Economic Advisor (CEA) make about Public Sector Banks (PSBs)?
156. Name three leading contributors to Foreign Direct Investment (FDI) in India last year. How can a small nation like Maldives invest significantly in India?
157. Explain how Double Taxation Avoidance Agreements (DTAA) work.
158. What is the role of RBI (Reserve Bank of India)?
159. Discuss the recommendations of the Debroy committee and highlight the most significant takeaways from the report.
160. What measures has the government taken to curb black money in real estate?
161. Outline the amendments made in the Benami Act.
162. Why wasn’t the IT (Income Tax) Act amended to achieve the same objectives as the Benami Act?
163. Share your opinion on retrospective tax.
164. What was the Income Disclosure Scheme, when did it happen, and what were the outcomes?
165. Evaluate the success or failure of demonetization.
166. Mention five salient features of Budget 2018.
167. Explain the concept of zero-based budgeting.
168. Explain the constitutional amendments made for implementing GST and discuss the challenges associated with GST.
169. Provide information about the PNB Scam and suggest measures to prevent such scams in the future.
170. How is the Gross National Happiness Index calculated?
171. Compare two states economically. How would you analyze their economic status?
172. Describe how the Human Development Index (HDI) is calculated.
173. Discuss the advantages of Public-Private Partnerships (PPPs), highlight the challenges, and mention recent reforms.
174. Explore the recent downfall in exports in the Pharma industry and the issues with the USA in the Pharma sector.
175. China controls 90% of rare earth production. How does it use this dominance for geopolitical purposes?
176. Are there any rare earth fields outside China that can rival China’s production?
177. Explain the Capital Adequacy Ratio and the actions RBI can take if a bank fails to maintain it, considering NPAs and ROA.
178. Differentiate between government accounts and private accounts.
179. What are Repo and Reverse Repo rates, and how do they contribute?
180. Define the target range of inflation and discuss the consequences when it falls below the lower target range.
181. Explore the effects of inflation on foreign trade and analyze whether high inflation is beneficial for foreign trade.
182. Why do subsidies often have a sunset clause, while programs like MGNREGA continue without such limitations?
183. Despite economic growth, unemployment persists. Discuss the challenges and possible solutions.
184. Share your views on disinvestment, including criteria, considerations for selling ailing PSUs, and retaining well-running ones.
185. Define Demographic Dividend and discuss its potential utilization or concerns about becoming a population bomb.
186. Explore the potential and challenges associated with utilizing the demographic dividend.
187. Assess the significance of the financial sector in the present scenario.
188. Has the rule about maintaining a minimum account balance affected the public nature of SBI?
189. Why don’t private banks participate in PPP projects despite mandatory infrastructure contributions?
190. Explain the GI tag issue related to rasgulla. Who was right, and was the disagreement between two states necessary?
191. What is the significance of the 3 C’s, and do they hinder the efficient functioning of the system?
192. Discuss the economic disparity between the rich and the poor, along with reasons and possible remedies.
193. What is Deendayal Antyodaya Yojana?
194. Could the PNB scam have been prevented, and what are the key issues within the PNB scam?
195. What corrective measures are needed in the banking sector?
196. Is personnel management a significant issue in this context?
197. What role could higher management have played in addressing this issue?
198. How would you utilize improvements in the regulation of companies?
199. What steps are needed to empower investors?
200. Do you think we should separate the roles of MD and chairman in the boardroom of companies? Discuss the positives and drawbacks.
201. What additional reforms do you suggest?
202. Define the role of independent directors in companies.
203. Explain the trickle-down theory.
204. Should railways be privatized? Discuss the social externality that railways possess.
205. What is CSR, and what are the criteria for CSR implementation? Is it mandatory for all companies?
206. What is scientific social responsibility?
207. Explain the Saubhagya scheme.
208. What can be done to reform banks in the future?
209. What is the greatest achievement of GST? Mention other benefits of GST, including the cascading effect and its impact on direct and indirect taxes.
210. How can we increase tax collection?
211. What is the tax to GDP ratio in our country?
212. The statement “Indians are rich but India is not rich” suggests that individual wealth doesn’t necessarily translate into national prosperity. As the CBDT Chairman, what steps would you take to address this?
213. What is your opinion on the idea that voting rights in 1947 should have been restricted only to taxpayers?
214. Explain the concept of money laundering in simple terms. Can you think of any positives of black money, and is all cash considered black money?
215. What are the Paradise Papers?
216. Explain the Panama Papers and name individuals whose names were revealed in the leak.
217. What is basic income?
218. List the characteristics of a tax haven.
219. Is it acceptable for India to have GDP growth along with joblessness? Why or why not?
220. How much of the population is in the informal sector?
221. Why is the informal sector larger than the formal sector, and how can you encourage movement from informal to formal employment?
222. Define the concept of a smart city and mention specific aspects of smart cities.
223. Why are Western coastal states more developed than Eastern coastal states? As a tourism secretary, how would you promote Ajanta and Ellora?
224. Discuss the impact of demonetization on the informal sector. What data sources support your views?
225. What is a lie detector test?
226. What schemes exist for financial inclusion?
227. Name some Indian startups and government initiatives that support startups.
228. Explain the concept of recapitalization of banks and its impact on banks and the economy. Should public money be used for recapitalization?
229. Should banks participate in the secondary equity market in India?
230. Identify the most pressing problems in the banking sector at present.
231. Is there any bank that does not lend? Provide an example.
232. What is creative accounting, and is it practiced in banks?
233. Explain the Swiss Challenge Model.
234. What does Enterprise Resource Planning mean?
235. Differentiate between tax planning, tax evasion, tax avoidance, and tax sops.
236. Define entrepreneurship and discuss why there are relatively fewer entrepreneurs in India.
237. Explain the difference between a company and a corporation.
238. As a policymaker, how would you enhance the primary, secondary, and tertiary sectors of the economy?
239. Name countries with a strong manufacturing base and discuss the reasons for their success. Address issues related to land, labor, and capital in the manufacturing sector.
240. Should Indian e-commerce platforms like Flipkart be given preference over Amazon? Why or why not?
241. China restricts the operations of companies like Amazon, Facebook, and Google. Should India adopt a similar policy to encourage domestic companies?
242. What is the origin of taxation?
243. Explain the Startup India and Stand Up India programs. Discuss the funding procedure and the role of dedicated freight corridors in aiding Indian Railways.
244. How can private capital be introduced into Railways? Should Railways be privatized, considering the taxpayer’s burden due to inefficiencies?
245. Discuss the importance of Make in India. Highlight government initiatives to attract foreign and domestic investors.
246. What is the World Economic Forum, and what criteria do they use for their reports?
247. Define nation-building and distinguish between Nation Building and Nation Development.
248. What reforms would you recommend for GST?
249. Evaluate RBI’s decision to ban Letters of Undertaking (LoU). Is it a knee-jerk reaction?
250. Explain RBI’s role as a banker’s bank. Could its role be diluted after the FRDI Bill?
251. When did inflation accounting start?
252. Define MRP (Minimum Retail Price) and explain Dual MRP.
253. Name some recent Nobel Laureates in economics.
254. What is a public good (PG), and what is the principle behind it?
255. Explain marginal utility.
256. What is the Paradise Papers leak?
257. What is the difference between stock and share?
258. What caused the subprime lending crisis?
259. Define quantitative easing and mention banks that implemented it.
260. How did Iceland get affected by the subprime crisis? Can you name any movie about it?
261. Why do Indian shopkeepers often ask customers if they want a bill, especially in electronics shops?
262. When was the last time you visited an electronics shop?
263. Discuss the effects of a cash-based economy on direct and indirect taxation.
264. Name some famous personalities involved in the Paradise Papers leak.
265. Assess the status of defense manufacturing in India. Identify areas where we are lacking and the reasons behind it.
266. Is the research internship project you worked on commercially viable? If not, why?
267. Are you familiar with Reliance Fresh? Explain its business model.
268. What does “crafting counterfeit foliage” mean?
269. Share your thoughts on the National Health Protection Scheme. Why is it needed in India, especially when primary infrastructure is not fully developed?
270. Why is the inflation of fruits and vegetables higher than that of cereals? What steps should be taken to address the issue of perishable goods?
271. Why did ONGC transition from a commission to a corporation?
272. Define trade deficit and identify the field in which India has a trade deficit.
273. List three primary and three secondary problems that today’s government should focus on.
274. Describe the steps taken by the government in each of these fields.
275. What percentage of the population in India possesses skills, and how does this compare to the world average?
276. Do you believe it is wrong to tax service people (civil servants) since they already receive meager salaries?
277. What percentage of taxes do service people pay in India?
278. Should agriculture be subjected to taxation?
279. If you advocate for taxing agriculture, why hasn’t it been taxed until now?
280. What is FDI (Foreign Direct Investment)?
281. Do you support 100% FDI in all sectors? Why or why not?
282. Are there specific sectors where FDI should not be allowed?
283. Should FDI be permitted in the retail sector, and how can local sellers be protected from foreign companies?
284. The USA imposed duties on the import of steel and aluminum. Do you endorse such measures?
285. India is imposing anti-dumping duty on steel imported from China to safeguard Indian industries. Do you support this Indian policy?
286. There is a discussion about revoking the passports of willful defaulters. What are your views on this?
287. What is the WTO case that the USA filed against India, and which WTO rule is involved? What are the conditions for applying that rule?
288. Explain the Nirav Modi Scam. What does SWIFT stand for?
289. What is GSTN, and how does it work? Is it a private or government body?
290. What is the insolvency code?
291. Discuss marketing lessons to be learned from the marketing strategies of entrepreneur-turned-Baba Ramdev.
292. What is the difference between Tax and Cess?
293. Identify the reasons for militant trade unionism.
294. What distinguishes the Indian and US accounting systems? Why was NFRA established? Discuss oversight mechanisms in accounting. Share your stance on the long-term capital gains introduced in the budget.
295. Why has long-term capital gains tax been implemented again?
296. Is India a savings-based economy or a consumption-based economy? Have you heard about the news regarding how the Central government is utilizing the small savings scheme fund of the public, as reported in today’s newspaper?
297. Which do you consider more crucial: a savings-based economy or a consumption-based economy?
298. Do you believe we are making proper investments with our savings? You mentioned that data manipulation and fudging are matters of personal integrity and choice, but do you think they are driven by business interests?
299. How can we ensure that accountants are accountable in one sentence?
300. Explain the difference between the Stand Up and Start Up India programs.
301. What does “liberalization” mean, and why was the private sector allowed to enter the market?
302. Were there skill development programs in India before 2014, and what changes have been made since then?
303. What role do private players play in skill development, and where does the skilled workforce go after training?
304. What is the purpose of Sector Skill Councils, and how many of them exist?
305. Differentiate between a microfinance bank and a scheduled commercial bank.
306. Explain the distinctions between investment banks and commercial banks.
307. What is the current status of the disinvestment of Air India, and why has it not been completed yet? What actions has the government taken to facilitate this process?
308. What does “360-degree profiling” mean concerning a taxpayer?
309. Share information about the Mauritius route of investment and the recent amendment made to DTAA.
310. Define a hawala transaction and explain how money is transferred through this system.
311. What are the benefits of linking Aadhaar to PAN cards and bank accounts?
312. What steps are needed to improve the textile sector?
313. Describe the measures the government has taken to enhance the machine-based textile sector.
314. What reforms are required in the tea industry, and how is the price of tea determined internationally?
315. Have you heard of auctions, and how are they related to the tea industry?
316. What is the “Incredible India” campaign, and can you share a recent initiative related to it?
317. Explain the importance of MSME (Micro, Small & Medium Enterprises).
318. Why is Mumbai considered the financial hub of India, and why does a high proportion of the country’s revenue come from Mumbai? What transportation problems does Mumbai face?
319. Can you explain the Bharatmala project and why port connectivity is crucial?
320. What’s the difference between finance and the economy?
321. Why doesn’t India have a significant chip manufacturing sector?
322. Why does India have fewer patents compared to the US, even though Indian migrants abroad often get more patents?
323. Do you think process patents, like product patents, should be allowed?
324. Are farmers in distress in our country, and if so, why?
325. How can we revive declining textile industries in traditional regions?
326. Why has the textile industry declined in Kanpur?
327. Did you ever consider joining the textile sector during your graduation or civil service?
328. What is the current scenario and prospects of startups in India? How has the Startup India program progressed, and what would you do as the head of Startup India?
329. Explain the policies in civil aviation, especially the UDAN initiative. What measures are being taken, and what is the fare like?
330. Share information about the establishment of NHAI, its goals, and its effectiveness.
331. How would you simultaneously promote the handicraft and power loom sectors?
332. Can you name some economic concepts that can be applied to town planning, and how?
333. Which taxes are subsumed in GST?
334. How do you think GST has benefited consumers?
335. What role have PSUs played in India since independence?
336. In commerce, explain single entry and double entry. Also, discuss cost accounting and financial accounting.
337. From America, which development model do you think India can adopt?
338. Has demonetisation stopped FICN?
339. PNB issue: Why didn’t Audit and Vigilance identify the problem? What auditing measures can be suggested for banks? What is the role of RBI in regulating these issues?
340. Banks consolidation issue: How is it advantageous?
341. NPAs: Can we eliminate defaults in banking?
342. IBBC: What are the provisions? Can the original promoters bid?
343. What steps has the government taken to promote digital payments?
344. What is India’s telecom policy? How does India aim to expand services in rural areas?
345. What is a trade deficit?
346. How can the income of women in villages be doubled?
347. Provide the history of the World Bank and IMF.
348. Write the figure for a 5 trillion economy.
349. What is GDP?
350. What is a 5 trillion dollar economy, and how can we achieve it?
351. What can individuals do to contribute to this goal?
352. How can we boost manufacturing?
353. What is the significance of infrastructure if there are no goods to transfer?
354. Discuss the advantages and disadvantages of demonetization.
355. Why are banks being merged?
356. Tell me about job losses in banks.
357. Regarding black money, how can we identify notes? Can we determine it by the color of the notes? What is the distinction between white and black money?
358. What is SENSEX? How is it calculated? Can you name some other internationally famous indices?
359. Explain the work of Abhijeet Banerjee and Sen.
360. Differentiate between monetary and fiscal policy.
361. Discuss the instruments of monetary policy and their rates.
362. Why is productivity lower in all fields in India?
363. How can we use the demographic dividend to close the gap with China?
364. Explain Amartya Sen’s contributions to the Indian economy.
365. What are the main parts of the economy?
366. How many people work in each part of the economy?
367. Why does agriculture contribute less to the economy?
368. Why is there job growth without an increase in employment in India?
369. Why do 80 percent of our engineers struggle to find jobs?
370. What changes should we make to our education system?
371. Describe the current economic situation in India.
372. If you were the government representative in the Monetary Policy Committee (MPC), what would you suggest about lowering policy rates?
373. What are the causes of the economic slowdown in our country?
374. Explain CRR and SLR and why the RBI uses them.
375. Why is there a slowdown, and what kind of policy should the RBI adopt?
376. Who signs currency notes?
377. Why does the finance secretary sign only on the 1 rupee note?
378. What is a bank guarantee?
379. What does legal tender mean?

FAQs on UPSC Mock Interview – Questions on the General Economy

Q1. What is the purpose of the UPSC Mock Interview on the General Economy?

A. The UPSC Mock Interview on General Economy is conducted to assess the candidates’ understanding of economic concepts, and policies, and their ability to analyze and articulate their perspectives on economic issues.

Q2. How does the General Economy interview contribute to the UPSC selection process?

A. This interview segment is crucial for evaluating the candidates’ suitability for administrative roles, as it assesses their knowledge of economic theories, and policies, and their awareness of contemporary economic challenges.

Q3. What topics are covered in the General Economy interview?

A. The interview may cover a wide range of topics, including economic reforms, fiscal and monetary policies, global economic trends, and their potential impact on India.

Q4. How can candidates prepare for the General Economy interview?

A. Candidates should have a strong grasp of economic concepts, stay updated on current economic affairs, and practice articulating their viewpoints on various economic issues.

Q5. Are there specific economic theories or policies that candidates should focus on?

A. While there is no specific list, candidates should be well-versed in major economic theories, government policies related to the economy, and understand their implications.

Q6. What role does critical thinking play in the General Economy interview?

A. Critical thinking is crucial as candidates may be asked to analyze economic scenarios, propose solutions to economic challenges, and demonstrate their ability to think logically about economic issues.

Q7. How can candidates address questions related to global economic trends?

A. Candidates should stay informed about international economic developments, understand their impact on India, and be prepared to discuss global economic scenarios during the interview.

Q8. Is the General Economy interview only focused on theoretical knowledge, or does it assess practical understanding as well?

A. The interview assesses both theoretical knowledge and the ability to apply economic concepts to real-world situations. A practical understanding of economic issues is essential.

Q9. How long does the General Economy interview typically last?

A. The duration of the interview may vary, but candidates should be prepared for a comprehensive discussion that can last anywhere from 20 to 40 minutes.

Q9. What are the common mistakes candidates should avoid during the General Economy interview?

A. Candidates should avoid providing vague or inaccurate information, overlooking the practical implications of economic theories, and failing to connect economic concepts to current affairs. It is crucial to remain composed and confident.

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