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Economic Survey 2018-19

Multiple Choice
Questions (Part 1)

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1. The Economic Survey is prepared by which of the following government
departments?
A. Department of Expenditure
B. Department of Economic Affairs
C. Department of Financial Services
D. Department of Disinvestment
E. Department of Industrial Policy and Promotion
Answer: B
The Economic Survey is prepared by the Economics Division of the Department of
Economic Affairs in the Finance Ministry under the overall guidance of the Chief Economic
Adviser. The survey was de-linked from the Budget in the year 1964 and is circulated in
advance to provide the context of the Budget. India’s first Economic Survey was presented
in the year 1950-51.

2. According to the economic survey 2018-19, what is the GDP growth rate of India
for the year 2018-19?
A. 6.8 Percentage
B. 7 Percentage
C. 7.2 Percentage
D. 7.4 Percentage
E. 7.5 Percentage
Answer: A
As per the Economic Survey 2018-19, the Central Statistics Office (CSO) has estimated
the GDP growth to be 6.8% in 2018-19 as compared to 7.2% in 2017-18. The GDP growth
in 2016-17 was 8.2%. In 2018-19, the agriculture and industry sectors are expected to
grow at 2.9% and 6.9% respectively, while the service sector is estimated to grow at 7.5%.

3. According to Economic Survey 2018-19, what was the inflation rate in 2018-19?
A. 2.8 Percentage
B. 3 Percentage
C. 3.2 Percentage
D. 3.4 Percentage
E. 3.6 Percentage
Answer: D
As per Economic Survey 2018-19, the Consumer Price Index (CPI) based inflation declined
from 3.6% in 2017-18 to 3.4% in 2018-19. This decline was mainly due to low food
inflation. The Wholesale Price Index (WPI) based inflation increased from 3.0% in 2017-
18 to 4.3% in 2018-19.

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4. According to Economic survey 2018-19, what is the Fiscal deficit of central
government in the year 2018-19?
A. 3.1 Percentage
B. 3.2 Percentage
C. 3.4 Percentage
D. 3.5 Percentage
E. 3.6 Percentage
Answer: C
Current Account Deficit (CAD) and fiscal deficit: India’s CAD increased from 1.9% of GDP
in 2017-18 to 2.6% of GDP in 2018 (April-December). This has been attributed to an
increase in international crude oil prices. The fiscal deficit for 2018-19 stood at 3.4% and
the primary deficit for the year was 0.3% of GDP (primary deficit is the fiscal deficit
excluding the interest payments).
5. According to Economic survey 2018-19, what was the growth rate of the
agriculture sector in 2018-19?
A. 1.2 Percentage
B. 1.8 Percentage
C. 2.5 Percentage
D. 2.9 Percentage
E. 3.2 Percentage
Answer: D
Growth of agriculture sector has been fluctuating: it increased from -0.2% in 2014-15 to
6.3% in 2016-17, and then declined to 2.9% in 2018-19. Gross fixed capital formation in
agriculture has decreased from 17.7% in 2013-14 to 15.2% in 2017-18.
6. According to Economic Survey 2018-19, how much agriculture sector contributed
in the GVA for the year 2018-19?
A. 13.5%
B. 14.2%
C. 14.4%
D. 15%
E. 15.6%
Answer: C
The contribution of agriculture to the GVA has decreased from 15% in 2015-16 to 14.4%
in 2018-19. The decline was mainly due to a decrease in the share of GVA of crops from
9.2% in 2015-16 to 8.7% in 2017-18.
7. According to Economic Survey 2018-19, what percentage of groundwater is
extracted for irrigation?
A. 54 Percentage
B. 63 Percentage
C. 78 Percentage
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D. 82 Percentage
E. 89 Percentage
Answer: E
Almost 89% of groundwater is extracted for irrigation. Further, crops such as paddy and
sugarcane consume more than 60% of irrigation water available in India, which reduces
water availability for other crops. There is an urgent need to focus on irrigation water
productivity (ratio of crop output to irrigation water applied by farmer) to improve
agricultural productivity.
8. Which of the following sector contributed highest in GVA in the year 2018-19?
A. Agriculture
B. Industry
C. Manufacturing
D. Service Sector
E. None of the above
Answer: D
The services sector contributed 54.3% to India’s GVA in 2018-19. As per the CSO the
growth of the services sector is expected to be 7.5% in 2018-19 as compared to 8.1% in
2017-18. In 14 states, services contribute to more than half of the gross state value
added. India ranked ninth in the world in terms of size of the services sector in 2017.
9. According to Economic Survey 2018-19, how much real GDP growth rate is needed
to achieve the $5 trillion economy by 2024-25?
A. 6 Percentage
B. 7 Percentage
C. 8 Percentage
D. 8.5 Percentage
E. 9 Percentage
Answer: C
Survey states that sustained real GDP growth rate of 8% is needed for a $5 trillion economy
by 2024-25.
10. According to Economic Survey 2018-19, how many numbers of subscribers are
to the major social security schemes such as the Employees Provident Fund Scheme,
and National Pension Scheme till March 2019?
A. 5.3 Lakh
B. 6.2 Lakh
C. 7.8 Lakh
D. 8.2 Lakh
E. 9.7 Lakh
Answer: D

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During 2017-18, the unemployment rate was at 6.1%. Formal employment (number of
subscribers to the major social security schemes such as Employees Provident Fund
Scheme, and National Pension Scheme) increased from 4.9 lakh in February 2018 to 8.2
lakh in March 2019.

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