APPSC Group 2 · Mains Paper II · Topic 2
2 APPSC Group 2 Andhra Pradesh Economy questions with answers
45 questions from APPSC G2 Mains Paper II Mock 1 with answers and APPSC G2 Screening Test 2024 question paper with answers and APPSC G2 Mains Paper II 2025 question paper with answers. Try each one, then tap Show answer.
Previous-paper questions are as in the original paper. Medha AI wrote the answers and explanations.
2.6AP services, infrastructure & AmaravatiNotes
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According to the AP Socio-Economic Survey 2024-25, roads carry what share of goods and passenger traffic in Andhra Pradesh?
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Answer C. More than 80%
Roads carry more than 80% of goods and passenger traffic.
Source: AP SES 2024-25, ch.7, p.138
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According to the AP Budget Speech 2026-27, how many electric buses are being deployed in 11 major cities under the PM e-Bus Sewa Scheme?
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Answer B. 750
The Budget Speech 2026-27 mentions 750 electric buses in 11 major cities under the PM e-Bus Sewa Scheme; the AP SES 2024-25 also records 750 e-buses sanctioned.
Source: AP Budget Speech 2026-27, PDF p.24; AP SES 2024-25, p.149
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According to the AP Budget Speech 2026-27, metro rail is planned for which two cities?
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Answer D. Visakhapatnam and Vijayawada
The Budget Speech 2026-27 says metro rail is planned for Visakhapatnam and Vijayawada.
Source: AP Budget Speech 2026-27, PDF p.12
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Consider the following statements about Andhra Pradesh's startup and innovation rankings, as given in the AP Socio-Economic Survey 2024-25:
I. AP was No.1 in the National States Startup Ranking 2022 (DPIIT).
II. AP was 3rd in the India Innovation Index 2022.
III. AP is the 7th largest State in startup infrastructure.
Which of the statements given above is/are INCORRECT?
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Answer B. II only
Only statement II is incorrect: AP was 9th in the India Innovation Index 2022.
Source: AP SES 2024-25, ch.7, p.168
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Match the following Central Institutes established under the A. P. State Reorganization Act, 2014 with their locations.
Institute Location a. Indian Institute of Technology i. Kurnool b. Indian Institute of Management ii. Tirupati c. All India Institute of Medical Sciences iii. Vizianagaram d. Indian Institute of Information Technology iv. Vijayawada e. Tribal University v. Vishakhapatnam Codes : a b c d e
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Answer B. ii v iv i iii
Under the AP Reorganisation Act: IIT at Tirupati, IIM at Visakhapatnam, AIIMS at Mangalagiri (Vijayawada region), IIITDM at Kurnool and the Central Tribal University at Vizianagaram.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q63, final key
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Which of the following is not correct regarding the railway project under Central Assistance approved by the Union Cabinet for Amaravati in Andhra Pradesh ?
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Answer D. The proposed time line of the project is 6 years
The Cabinet in October 2024 approved the 57 km Errupalem-Amaravati-Nambur new line costing Rs. 2,245 crore through NTR, Guntur and Khammam districts, to be completed in 4 years, not 6.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q64, final key
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Which International funding agencies committed to fund the Amaravati Capital City Phase-I Development in Andhra Pradesh ?
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Answer B. World Bank and Asian Development Bank
In 2024 the World Bank and the Asian Development Bank together committed about USD 1.6 billion for Amaravati Capital City Phase-I development.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q66, final key
2.2AP agriculture, allied & irrigationNotes
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As per the AP Socio-Economic Survey 2024-25, a minor irrigation source in Andhra Pradesh is one with an ayacut of up to
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Answer B. 5,000 acres
Minor irrigation sources are those with an ayacut of up to 5,000 acres.
Source: AP SES 2024-25, p.124
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According to the AP Socio-Economic Survey 2024-25, Rythu Seva Kendralu (RSKs) in Andhra Pradesh were set up alongside
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Answer B. Village secretariats
The State set up 10,778 Rythu Seva Kendralu alongside village secretariats.
Source: AP SES 2024-25, p.54
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As per the AP Socio-Economic Survey 2024-25, the Polavaram Project is located how far upstream of the Sir Arthur Cotton Barrage at Dowlaiswaram?
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Answer A. 42 km
Polavaram is on the Godavari, 42 km upstream of the Sir Arthur Cotton Barrage at Dowlaiswaram.
Source: AP SES 2024-25, p.122
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Consider the following statements about horticulture crops in Andhra Pradesh in 2023-24 (Final Estimates), as per the AP Socio-Economic Survey 2024-25:
Statement A: Mango is the largest horticulture crop by area.
Statement B: Mango is also the fruit with the highest production.
Which of the following is correct?
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Answer A. Only A is correct
Mango is the largest horticulture crop by area (3.99 lakh ha), but banana has the highest fruit production (68.38 lakh MT).
Source: AP SES 2024-25, Annexure p.380
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Match the following names with the irrigation projects of Andhra Pradesh that carry them:
List I
a. Poola Subbaiah
b. B.R.R.
c. AVR
d. Kandula Obul Reddy
List II
I. Handri-Neeva
II. Veligonda Project
III. Gundlakamma Reservoir
IV. Vamsadhara Phase-II
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Answer C. a-II, b-IV, c-I, d-III
The official names are Poola Subbaiah Veligonda, B.R.R. Vamsadhara Phase-II, AVR Handri-Neeva and Kandula Obul Reddy Gundlakamma Reservoir.
Source: AP Budget Speech 2026-27 PDF p.7; AP SES 2024-25, Annexure p.406
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Statement A : Andhra Pradesh ranks 1st in the productivity of Oil palm in India.
Statement B : Andhra Pradesh ranks 2nd in the productivity of Mango in India.
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Answer C. Both statements A and B are correct
AP leads India in oil palm (area, production and productivity) and, per the AP Socio-Economic Survey, ranks second in mango productivity.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q56, final key
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How many Rythu Bharosa Kendralu (RBKs) has the Government of Andhra Pradesh established according to Socio-Economic Survey of Andhra Pradesh 2023-24 ?
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Answer A. 10,778
The AP Socio-Economic Survey 2023-24 reports 10,778 Rythu Bharosa Kendras set up at village level as one-stop centres for farmers.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q57, final key
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Which external funding agency is supporting the Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project ?
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Answer B. World Bank
APIIATP, which revives tanks and improves irrigated farming in drought-prone districts, is financed by the World Bank.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q67, final key
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Assertion (A) : In Andhra Pradesh, the coverage of farmers under Pradhan Mantri Fasal Bima Yojana has been increasing over the years.
Reason (R) : In Andhra Pradesh, significant crop losses occurred to farmers due to extreme weather events in recent years including floods, droughts and cyclones.
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Answer D. Both (A) and (R) are true and (R) is the correct explanation of (A)
Frequent floods, droughts and cyclones caused heavy crop losses in AP, which pushed more farmers into crop insurance, so the rise in PMFBY coverage is explained by R (as keyed by APPSC).
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q69, final key
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Which is not a correct statement regarding Rytu Bazaars in Andhra Pradesh ?
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Answer B. District Collector is the Co-ordinating officer of Rytu Bazaars
Rytu Bazaars began in 1999; each is run by an Estate Officer and prices aim to be about 25% above wholesale and 25% below retail. The co-ordinating officer at district level is the Joint Collector, not the District Collector.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q70, final key
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Chadalawada village where a Cattle Breeding farm is established under Gokul Gram Project under Rashtriya Gokula Mission belongs to which District ?
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Answer B. Prakasam
The Gokul Gram for indigenous Ongole cattle under the Rashtriya Gokul Mission was set up at Chadalawada in Prakasam district, the home tract of the Ongole breed.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q71, final key
2.4AP industry, policies & corridorsNotes
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According to the AP Socio-Economic Survey 2024-25, Andhra Pradesh's rank among India's exporting states in FY 2023-24 was
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Answer B. Sixth
The AP SES 2024-25 says AP is the sixth largest exporting state in India (FY 2023-24).
Source: AP SES 2024-25, ch.6, p.104
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According to the AP Socio-Economic Survey 2024-25, the AP Industrial Development Policy (4.0) 2024-29 aims to raise manufacturing GVA from INR 3.4 lakh crore (FY24 AE) to
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Answer A. INR 7.3 lakh crore
The policy targets an increase in manufacturing GVA from INR 3.4 lakh crore to INR 7.3 lakh crore.
Source: AP SES 2024-25, ch.12, p.330
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According to the AP Socio-Economic Survey 2024-25, what is the maximum investment subsidy for Mega and Ultra Mega projects under the AP Industrial Development Policy (4.0) 2024-29?
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Answer D. 15% of FCI
Mega and Ultra Mega projects get an investment subsidy of up to 15% of FCI, paid in 10 annual instalments. Large projects get up to 12%.
Source: AP SES 2024-25, ch.6, p.96
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In the Union Budget 2024-25, the GOI has promised funds to the following industrial nodes as part of the development of the Vishakhapatnam-Chennai and Bangalore-Hyderabad industrial corridors
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Answer A. Kopparthi and Orvakal
The July 2024 Union Budget promised funds for water, power, railways and roads in the Kopparthy node (Visakhapatnam-Chennai corridor) and the Orvakal node (Hyderabad-Bengaluru corridor).
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q61, final key
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Match the following Special Economic Zone Production Units in (List-I) with their locations (List-II).
List – I List – II a. Divi's Laboratories Limited-Pharmaceuticals i. Nellore b. Parry Infrastructure Company-Food Processing ii. Kovvur c. White Field Paper Mills Ltd.-Writing and Printing Paper iii. Kakinada d. Indian Farmers Fertilizers Co-operative Ltd. (IFFCO)-Multi Products iv. Visakhapatnam Codes : a b c d
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Answer B. iv iii ii i
Divi's pharma SEZ is in Visakhapatnam district, Parry's food-processing SEZ at Kakinada, White Field Paper Mills at Kovvur and the IFFCO Kisan SEZ in Nellore.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q72, final key
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Which of the following is not the target of AP Electronics Manufacturing Policy (4.0), 2024-29 ?
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Answer D. First time entrepreneurship creation of 2 lakhs
The AP Electronics Manufacturing Policy 4.0 (2024-29) targets USD 50 billion of production, USD 10 billion of investment and 5 lakh jobs; it sets no target of 2 lakh first-time entrepreneurs.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q73, final key
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According to AP Industrial Policy (4.0), 2024-29 one of the following statements is not correct with regard to MSME sector in Andhra Pradesh.
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Answer D. The MSME sector is contributing 33.5% of GSDP in AP
The policy notes about 9 lakh Udyam-registered MSMEs, 79% of them in services, and 28 exclusive MSME parks; the 33.5% GSDP share figure is the one APPSC treats as wrong.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q74, final key
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One of the following is not the standard incentive to the industries offered by Government of AP based on the AP Industrial Policy (4.0), 2024-29.
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Answer D. Maximum capital subsidy of 15% of Foreign capital investment
The standard incentives in AP Industrial Policy 4.0 include a decarbonisation subsidy, full stamp-duty reimbursement and full land-conversion fee reimbursement; capital subsidy is tied to fixed capital investment, not to foreign capital investment.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q75, final key
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Match List – I with List – II and choose the correct answer using the codes given below.
List – I (Solar Park) List – II (Capacity in MW) a. Hybrid Solar Wind Park Ramagiri I. 1000 b. Ananthapuram-I Solar Park II. 160 c. Kurnool Solar Park III. 1500 d. Ananthapuram-II Solar Park IV. 500 Show answerHide answer
Answer D. a-II, b-III, c-I, d-IV
Ramagiri hybrid park is 160 MW, Ananthapuram-I (NP Kunta) 1500 MW, Kurnool Ultra Mega Solar Park 1000 MW and Ananthapuram-II (Talaricheruvu) 500 MW.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q133, final key
2.8AP budget, debt & welfare schemesNotes
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Which department has the largest allocation in the AP Budget 2026-27 (BE) as per the department-wise list in the Budget at a Glance?
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Answer D. School Education
School Education has the largest department allocation, Rs 32,308.32 crore, in BE 2026-27.
Source: AP Budget at a Glance 2026-27 PDF p.13; AP Budget Speech 2026-27 PDF p.10
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In Andhra Pradesh, the name 'Dokka Seethamma' is given to which scheme?
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Answer C. Mid-day meal programme in schools
The mid-day meal scheme is named after Dokka Seethamma and is dovetailed with PM POSHAN.
Source: AP SES 2024-25 p.192; AP SES 2024-25 p.195; AP Budget at a Glance 2026-27 PDF p.23
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Consider the following statements about AP's receipts in the Budget 2026-27 (BE) as per the Budget at a Glance:
I. State tax revenue is estimated at about Rs 1,25,846 crore.
II. Share of central taxes is estimated at about Rs 64,362 crore.
III. Grants-in-aid are larger than the share of central taxes.
Which of the statements given above is/are correct?
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Answer A. I and II only
In BE 2026-27 State tax revenue is about Rs 1,25,846 crore, share of central taxes Rs 64,362 crore and grants-in-aid Rs 32,458 crore.
Source: AP Budget at a Glance 2026-27 PDF p.6; AP Budget at a Glance 2026-27 PDF p.11
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In the AP Budget 2026-27, the revenue deficit for 2026-27 (BE) as a percentage of GSDP is
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Answer A. 1.11%
The revenue deficit for BE 2026-27 is about Rs 22,002 crore, 1.11% of GSDP.
Source: AP Budget Speech 2026-27 PDF p.26; AP Budget at a Glance 2026-27 PDF p.8
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Consider the following statements about the extra housing assistance announced in the AP Budget Speech 2026-27:
I. SC and BC beneficiaries get an extra Rs 50,000.
II. ST beneficiaries get an extra Rs 75,000.
III. PVTG beneficiaries get an extra Rs 1,50,000.
Which of the statements given above is/are correct?
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Answer A. I and II only
Extra housing aid is Rs 50,000 for SC and BC, Rs 75,000 for ST and Rs 1,00,000 for PVTG beneficiaries.
Source: AP Budget Speech 2026-27 PDF p.23
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As per the AP Budget at a Glance 2026-27, capital expenditure (including loans and advances) as a share of total expenditure in 2026-27 (BE) is
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Answer A. 16%
Capex (including loans and advances) is 16% of total expenditure in BE 2026-27, up from 13% in RE 2025-26.
Source: AP Budget Speech 2026-27 PDF p.26; AP Budget at a Glance 2026-27 PDF p.12
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Consider the following statements about AP's finances for 2024-25 (Accounts, finalised by the Accountant General) as per the AP Budget 2026-27 documents:
I. The revenue deficit was 3.79% of GSDP.
II. The fiscal deficit was 5.11% of GSDP.
III. The primary deficit was 3.04% of GSDP.
Which of the statements given above is/are correct?
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Answer C. I, II and III
For 2024-25 (Accounts) the revenue deficit was 3.79%, fiscal deficit 5.11% and primary deficit 3.04% of GSDP, so all three are correct.
Source: AP Budget Speech 2026-27 PDF p.26; AP Budget at a Glance 2026-27 PDF p.8
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Consider the following statements:
I. Under Aarogya Raksha for APL families, the premium is Rs 1,200 per member per year.
II. Aarogya Raksha gives health cover of Rs 5 lakh per family.
Which of the statements given above is/are correct?
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Answer A. I only
As per AP SES 2024-25, Aarogya Raksha (APL) charges Rs 1,200 per member per year for Rs 2 lakh cover; AB PM-JAY gives Rs 5 lakh per family.
Source: AP SES 2024-25 p.222
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Which among the following is incorrectly paired ?
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Answer D. YSR Navodayam Scheme : It aims to provide self-employment opportunities to the youth of Andhra Pradesh by creating job opportunities in the transport sector.
YSR Navodayam is a one-time debt restructuring scheme for MSMEs, not a transport-sector job scheme for youth. The other three pairs describe the schemes correctly.
Source: APPSC Group 2 Screening Test 2024 (Notification 11/2023), Q107, final key
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Statement A : In AP, capital expenditure constituted less than 15 per cent in the total Government expenditure during 2016-21.
Statement B : Capital expenditure reflects the State's commitment towards infrastructure creation.
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Answer C. Both A and B are true
CAG's State Finances reports show AP's capital outlay stayed below 15% of total expenditure in 2016-21, and capital spending is the usual indicator of a state's commitment to building assets and infrastructure.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q60, final key
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As per the Budget estimates of 2024-25, the percentage of public debt in the GSDP of Andhra Pradesh in FY 2024-25 is estimated as
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Answer B. 34.14%
The AP Budget 2024-25 estimated the State's debt at about 34.14% of GSDP for 2024-25 (as keyed by APPSC).
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q62, final key
2.1AP macro: GSDP, sectors, per-capita incomeNotes
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Under the Swarna Andhra @2047 vision, the AP Budget Speech 2026-27 mentions an aspirational annual growth rate of
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Answer B. 15%
The Budget Speech 2026-27 sets an aspirational growth rate of 15% per annum for Swarna Andhra @2047; the SES 2024-25 also says the vision needs 15% annual growth.
Source: AP Budget Speech 2026-27 PDF p.20; AP SES 2024-25 p.93
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According to the AP Socio-Economic Survey 2024-25, the growth of per capita income at current prices in 2024-25 for AP and All-India respectively is
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Answer B. 12.9% and 8.7%
AP per capita income grew 12.9% in 2024-25 at current prices, against 8.7% for All-India.
Source: AP SES 2024-25 p.24
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According to the AP Socio-Economic Survey 2024-25, which sub-sector of agriculture & allied recorded the lowest growth at constant prices in 2024-25 (FAE)?
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Answer A. Forestry & logging
Forestry & logging grew just 0.04% in 2024-25 (FAE, constant prices), the lowest among agriculture & allied sub-sectors.
Source: AP SES 2024-25 p.14
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Match the sectors given in Column – A with their corresponding Gross Value Added (GVA) Growth Rates given in Column – B (Andhra Pradesh Advance Estimates of 2023-24).
Column – A Column – B a. Agriculture and allied activities A. 5.21% b. Industry B. 8.02% c. Services C. 1.69% Codes : a b c
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Answer A. C B A
As per AP's 2023-24 advance estimates, agriculture and allied grew 1.69%, industry 8.02% and services 5.21% (as keyed by APPSC).
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q54, final key
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Statement A : All India Per Capita Income for the year 2023-24 (PE) is estimated at Rs.1,84,205.
Statement B : All India Per Capita Income given above is lower than the Andhra Pradesh Per Capita Income for the year 2023-24 (AE) (at current prices from 2014-15 to 2023-24).
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Answer C. Both statements A and B are correct
India's per capita income for 2023-24 at current prices was about Rs. 1.84 lakh, while AP's 2023-24 advance estimate was about Rs. 2.42 lakh, so both statements hold.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q55, final key
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As per the second advanced estimates of National Statistical Office (NSO), MoSPI, GOI, what is the sector wise contribution of GVA at current prices for the year 2022-23 for Andhra Pradesh ?
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Answer A. Agriculture-36.19%, Industry-23.36% and Services-40.45%
AP's GVA at current prices in 2022-23 was about 36.19% agriculture and allied, 23.36% industry and 40.45% services; agriculture's share is unusually high for AP.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q58, final key
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According to the report on Relative Economic Performance of Indian States (1960-61 to 2023-24), prepared by Economic Advisory Council to the PM, what are the individual shares of Andhra Pradesh and Telangana in the National GDP in FY 2023-24 ?
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Answer A. A.P.-4.7 and Telangana-4.9
The EAC-PM paper (September 2024) put Andhra Pradesh's share of national GDP at 4.7% and Telangana's at 4.9% in 2023-24; together the two states held 9.6%.
Source: APPSC Group 2 Mains Paper II 2025 (Notification 11/2023), Q59, final key
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