Q1. Which sector contributes thelargest share to the Gross State Domestic Product (GSDP) of Jammu and Kashmir UT? (a) Agriculture and allied activities
(b) Manufacturing
(c) Services
(d) Mining and quarrying
Answer: (c)
Explanation: The services sector, comprising tourism, trade, transport, communication, banking and public administration, accounts for the highest proportion of J&K’s GSDP, reflecting the UT’s shift from agrarian to service‑based economy.
Q2. The Horticulture Development Programme in J&K primarily focuses on which of the following crops? (a) Wheat and rice
(b) Apple and walnut
(c) Cotton and sugarcane
(d) Pulses and oilseeds
Answer: (b)
Explanation: Jammu and Kashmir’s horticulture thrust is on temperate fruits like apple, walnut, almond and cherry, which are high‑value export commodities and a major source of farmer income.
Q3. Which of the following statements about the “Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)” in J&K is correct?
(a) It aims to provide 100% irrigation coverage to all cultivable land by 2025.
(b) It is exclusively for the Kashmir Valley and excludes Jammu region.
(c) It promotes micro‑irrigation and watershed development.
(d) It provides direct cash subsidies for purchasing tractors.
Answer: (c) Explanation: PMKSY in J&K emphasizes micro‑irrigation (drip and sprinkler), watershed management and improving water use efficiency, rather than full surface irrigation or tractor subsidies.
Q4. The “Jammu and Kashmir Bank” was nationalised in which year?
(a) 1969
(b) 1980
(c) 1991
(d) It remains a private sector bank.
Answer: (d) Explanation: Jammu and Kashmir Bank Ltd. continues to be a scheduled commercial bank under the private sector; it was never nationalised, although the Government of J&K holds a significant stake.
Q5. Which of the following is the main reason for J&K’s relatively low industrial growth compared to other Indian states?
(a) Lack of skilled labour
(b) Inadequate power infrastructure
(c) Geopolitical instability and difficult terrain
(d) Absence of mineral resources
Answer: (c)
Explanation: Frequent disturbances, security concerns and the mountainous terrain deter large‑scale industrial investment, making geopolitical factors the primary constraint on industrial expansion.
Q6. The “Udhampur‑Srinagar‑Baramulla Rail Link (USBRL)” project is expected to boost the UT’s economy mainly by:
(a) Increasing hydroelectric power generation
(b) Improving connectivity and facilitating tourism and trade
(c) Expanding mining operations in the Pir Panjal range
(d) Providing direct employment to over 1 lakh youth in agriculture
Answer: (b)
Explanation: The USBRL will integrate the Kashmir Valley with the rest of India, reducing travel time, cutting logistics costs and stimulating tourism, hospitality and related service sectors.
Q7. Which of the following commodities accounts for the highest export earnings from J&K UT?
(a) Saffron
(b) Handicrafts (carpets, shawls)
(c) Apple
(d) Timber
Answer: (c)
Explanation: Fresh and processed apple is the leading agricultural export from J&K, contributing significantly to foreign exchange earnings, surpassing handicrafts and saffron in volume and value.
Q8. The “Jammu and Kashmir Rural Livelihoods Mission (JKRLM)” primarily targets:
(a) Urban slum redevelopment
(b) Skill development for IT professionals
(c) Women’s self‑help groups and farm‑based livelihoods (d) Construction of highways in Ladakh Answer: (c)
Explanation: JKRLM focuses on mobilising rural women into self‑help groups, promoting agro‑based enterprises, skill training and access to credit to enhance household incomes.
Q9. Which sector receives the largest share of the UT’s annual budget allocation?
(a) Defence and security
(b) Education
(c) Health and family welfare
(d) Infrastructure (roads, bridges, power)
Answer: (d)
Explanation: A substantial portion of J&K’s budget is earmarked for infrastructure development—roads, bridges, electrification and hydropower—to overcome geographical constraints and spur economic activity.
Q10. As per the latest available data, the per capita Net State Domestic Product (NSDP) of J&K UT is approximately:
(a) ₹ 45,000 (b) ₹ 78,000
(c) ₹ 1,20,000
(d) ₹ 2,00,000 Answer: (b)
Explanation: J&K’s per capita NSDP hovers around ₹ 75,000–₹ 80,000, reflecting a moderate level of economic development compared to the national average.
Q11. Which of the following statements about the “Pradhan Mantri Matsya Sampada Yojana (PMMSY)” in J&K is true?
(a) It focuses only on marine fisheries along the coastline.
(b) It promotes inland fisheries, trout farming and cold‑water aquaculture in the UT.
(c) It provides subsidies for deep‑sea fishing vessels.
(d) It is not applicable to J&K due to lack of water bodies.
Answer: (b)
Explanation: PMMSY in J&K emphasizes inland fisheries, especially trout farming in the Kashmir Valley and cold‑water aquaculture in high‑altitude lakes and rivers.
Q12. The “Jammu and Kashmir Industrial Policy 2021” offers which of the following incentives to attract investment?
(a) 100% exemption from income tax for 10 years
(b) Capital subsidy, interest subsidy and GST reimbursement for eligible units
(c) Free land allocation in all districts
(d) Mandatory reservation of 50% jobs for outsiders
Answer: (b)
Explanation: The policy provides fiscal incentives such as capital subsidy (up to 30% of plant cost), interest subsidy on term loans and GST reimbursement to encourage industrial units, especially in food processing, handicrafts and tourism‑related sectors.
Q13. Which of the following is NOT a major source of non‑tax revenue for the J&K UT government?
(a) Royalties from minerals
(b) Income from tourism department (entry fees, permits)
(c) Dividends from public sector undertakings
(d) Revenue from Goods and Services Tax (GST) Answer: (d)
Explanation: GST is a tax revenue head shared between centre and states; non‑tax revenue includes royalties, dividends, interest, and fees from services like tourism and forestry.
Q14. The “Kashmir Willow” used for making cricket bats is primarily sourced from which region of J&K?
(a) Ladakh
(b) Jammu region
(c) Kashmir Valley (especially Anantnag, Pulwama)
(d) Pir Panjal foothills
Answer: (c) Explanation: High‑grade Kashmir willow (Salix alba var. caerulea) grows abundantly in the Kashmir Valley districts of Anantnag, Pulwama and Baramulla, supplying the raw material for premium cricket bats.
Q15. Which scheme aims to provide skill training to youth in J&K under the “Skill India” initiative?
(a) UDAAN
(b) SVAMITVA (c) AYUSHMAN Bharat (d) Pradhan Mantri Awas Yojana
Answer: (a)
Explanation: UDAAN (Underprivileged Youth Development and Advancement Programme) is a special industry‑linked skill training scheme for J&K youth, focusing on placements in corporate sectors.
Q16. The “Jammu and Kashmir Tourism Policy 2020” emphasizes which type of tourism to diversify the sector?
(a) Only religious tourism
(b) Adventure, wellness and eco‑tourism
(c) Space tourism
(d) Industrial tourism Answer: (b)
Explanation: The policy promotes adventure tourism (trekking, skiing), wellness (Ayurveda, spas) and eco‑tourism (homestays, wildlife) to reduce over‑reliance on traditional pilgrimage and sightseeing tourism.
Q17. Which of the following statements about the “Hydropower potential” of J&K is correct?
(a) J&K has negligible hydropower potential due to low rainfall. (b) The UT’s economically exploitable hydropower potential is estimated at over 20,000 MW.
(c) All hydropower projects in J&K are owned by private companies.
(d) Hydropower contributes less than 5% to the UT’s electricity supply.
Answer: (b)
Explanation: Studies estimate J&K’s economically viable hydroelectric potential at around 20,000 MW, of which a significant fraction remains untapped, offering a major avenue for revenue and employment.
Q18. The “Jammu and Kashmir Food Processing Policy” gives priority to which of the following sectors?
(a) Textile manufacturing
(b) Meat and poultry processing
(c) Fruit processing (apple, walnut, apricot) and mushroom cultivation
(d) Cement production
Answer: (c)
Explanation: The policy incentivizes processing of horticultural produce (apple, walnut, apricot, cherry) and high‑value crops like mushrooms, aiming to reduce post‑harvest losses and increase value addition.
Q19. Which of the following is a major challenge faced by the handicrafts sector in J&K?
(a) Excessive government subsidies leading to market distortion
(b) Lack of raw material availability
(c) Counterfeit products and declining demand in domestic and international markets
(d) Over‑automation reducing employment opportunities
Answer: (c)
Explanation: The handicrafts industry suffers from imitation goods, insufficient branding, fluctuating export demand and limited access to modern design, affecting artisans’ incomes.
Q20. The “Jammu and Kashmir Rural Road Connectivity Programme” is largely funded by which scheme?
(a) Pradhan Mantri Gram Sadak Yojana (PMGSY)
(b) Bharatmala Pariyojana
(c) Sagarmala Programme
(d) Smart Cities Mission
Answer: (a)
Explanation: PMGSY provides the bulk of financing for all‑weather rural road construction in J&K, improving market access for farmers and boosting rural livelihoods.
Q21. Which of the following statements about the “J&K Goods and Services Tax (SGST)” revenue trend is true?
(a) SGST collections have consistently declined since 2017 due to low industrial activity.
(b) SGST revenue has shown a steady increase, driven by growth in tourism and trade.
(c) SGST is not applicable in J&K because of its special status.
(d) SGST collections are entirely retained by the central government. Answer: (b)
Explanation: Post‑reorganisation, J&K’s SGST collections have risen gradually, reflecting increased economic activity in services, trade and tourism, although they remain lower than many larger states.
Q22. The “Jammu and Kashmir State Financial Corporation (JKSFC)” primarily provides:
(a) Agricultural loans to farmers
(b) Long‑term finance to small and medium enterprises (SMEs)
(c) Insurance cover for crop failure
(d) Foreign exchange remittance services Answer: (b)
Explanation: JKSFC functions as a state‑level development financial institution, extending term loans and working capital support to SMEs, especially in manufacturing, services and tourism.
Q23. Which of the following is the main objective of the “Pradhan Mantri Krishi Sinchai Yojana – Watershed Development Component (PMKSY‑WDC)” in J&K?
(a) To construct large dams for irrigation
(b) To promote rainwater harvesting, soil conservation and recharge of groundwater in rain‑fed areas
(c) To subsidize electricity for tube wells
(d) To provide free seeds to all farmers
Answer: (b)
Explanation: PMKSY‑WDC focuses on integrated watershed management—contour bunding, check dams, afforestation and groundwater recharge—to improve productivity in rain‑fed and drought‑prone areas.
Q24. Which sector employs the largest proportion of the workforce in J&K UT?
(a) Manufacturing
(b) Agriculture and allied activities (c) Services
(d) Construction
Answer: (c)
Explanation: Although agriculture remains important, the services sector (including tourism, trade, transport, education and health) engages the highest share of the employed population in J&K.
Q25. The “Jammu and Kashmir Startup Policy 2021” offers which incentive to encourage entrepreneurship?
(a) Tax holiday for 15 years for all startups
(b) Seed funding up to ₹ 50 lakh and mentorship through approved incubators
(c) Mandatory procurement of 100% of government goods from startups
(d) Exemption from all labour laws for startup employees
Answer: (b)
Explanation: The policy provides financial assistance (seed fund, grant), access to incubation centres, mentorship and facilitation for regulatory clearances to nurture innovative start‑ups in the UT.
