Economy and Finances of Madhya Pradesh

This chapter answers the Madhya Pradesh half of the Preliminary Paper I unit on the economy of India and Madhya Pradesh, and units 3 and 4 of Part A (Economics) of Mains General Studies Paper III: the state's income and per capita income, its sector structure, agriculture and allied activities, industry, MSME, One District One Product and intellectual property, infrastructure, the tribal and forest economy, and state revenue, expenditure, debt and fiscal discipline. Economic figures go stale within a year, so the chapter teaches what lasts (how the numbers are built, what drives them, how to read the Economic Survey and the Budget) and dates every figure. The snapshot used is the Economic Survey of Madhya Pradesh 2025-26 (tabled 17 February 2026) and the Budget for 2026-27 (presented 18 February 2026).

1. Reading the state economy: the Survey, the Budget and the key measures

Two documents anchor almost every question on the state economy. The Economic Survey of Madhya Pradesh looks back: it reports the size and structure of the economy and is tabled in the Vidhan Sabha the day before the Budget (the 2025-26 Survey on 17 February 2026, the Budget on 18 February 2026). The Budget looks forward. The Annual Financial Statement required by Article 202 of the Constitution carries three kinds of column that must never be confused: Actuals (a closed year), Revised Estimates (RE) (the current year corrected midway) and Budget Estimates (BE) (the coming year's plan).

Three measures carry the economy. GSDP is the value of all goods and services produced inside the state in a year. GSVA (gross state value added) is GSDP less taxes on products plus subsidies on products; it is the figure split into sectors: primary (crops, livestock, forestry, fishing, mining), secondary (manufacturing, construction, utilities) and tertiary (services). Each is stated at current prices (nominal, so price rise is inside it) and at constant prices (here the 2011-12 base year, so growth is real). Per capita income in the Survey is net state domestic product divided by population.

Economic Survey of Madhya Pradesh 2025-26: advance estimates for 2025-26
MeasureFigureWhat it shows
GSDP, current pricesRs 16,69,750 crore, up 11.14% from Rs 15,02,428 croreNominal growth, inflation included
GSDP, constant (2011-12) pricesRs 7,81,911 crore, real growth 8.04%Growth after removing price change
Per capita income, current pricesRs 1,69,050 (Rs 38,497 in 2011-12)More than four times in nominal terms
Per capita income, constant pricesRs 76,971About double the 2011-12 level in real terms
⚠️ Same-looking numbers, different measures
The Survey's per capita income for 2025-26 is Rs 1,69,050, a net income measure from an advance estimate that will be revised later. Per capita figures for different years or different aggregates (net income, GSDP, GDP) can look alike but are not comparable, so always check which measure and year a figure belongs to.

2. Structure: a primary-heavy economy that is turning to services

Sector shares and growth of GSVA, 2025-26 (advance estimates)
SectorShare, current pricesShare, constant 2011-12 pricesGrowth, current prices
Primary43.09%33.54%7.31%
Secondary19.79%26.18%9.93%
Tertiary37.12%40.28%15.80%
🧠 Subtract the two shares
Current-price share minus constant-price share shows a price effect. A positive gap (primary: +9.55 points) means that sector's prices have risen faster than the economy's average since 2011-12; a negative gap (secondary: -6.39 points) means slower. The same physical economy therefore looks more agrarian at today's prices than it does in real terms, where services (40.28%) lead and industry is 26.18%.

Inside the sectors, as shares of total GSVA at current prices: crops 30.17%, livestock 7.22%, mining and quarrying 2.96%, forestry 2.13% and fishing 0.61% make up the primary sector; construction 9.22%, manufacturing 7.22% and electricity, gas and water 3.35% make up the secondary; the tertiary is led by trade, repair, hotels and restaurants (10.35%), other services (7.80%), real estate and professional services (4.98%) and public administration (4.96%). Crops alone (30.17%) outweigh manufacturing, construction and utilities together (19.79%): industry in Madhya Pradesh is still mostly building and utilities, and manufacturing is a thin slice.

Per head, the state is poorer than the nation on the standard measures, although the exact gap depends on the measure and year used. Closing that gap by moving workers from low-productivity farming to manufacturing and services is the central development argument of the Survey, which cites the aim of a roughly US$2 trillion economy by 2047.

3. Agriculture and allied sectors

Adding the Survey's sub-sector shares, agriculture and allied activities (crops 30.17%, livestock 7.22%, forestry 2.13%, fishing 0.61%) come to about 40 per cent of GSVA at current prices, the largest block of the economy. Five ideas organise the topic.

  • Seasons and crops. Kharif: soybean, paddy, maize, tur. Rabi: wheat, gram, mustard, lentil. Soybean is the signature oilseed; press reports have described Madhya Pradesh as regaining the title of soya state from Maharashtra, while wheat and pulses place it among India's leading producers.
  • Rankings are perishable. They move with each year's weather and acreage. Learn who competes (Madhya Pradesh and Maharashtra in soybean, Madhya Pradesh and Uttar Pradesh in wheat), not a fixed order, and expect an exam to state the year.
  • Prices and markets. The Centre announces Minimum Support Prices (MSP) on the recommendation of the Commission for Agricultural Costs and Prices, and the state's agencies buy wheat and other MSP crops from farmers. Mandis are regulated under the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, run through a State Agricultural Marketing Board.
  • Holdings. The Agriculture Census, held every five years, classes holdings as marginal (below 1 ha), small (1 to 2 ha), semi-medium, medium and large. In the 2015-16 census 86.21 per cent of India's holdings were marginal or small and the national average holding was 1.08 ha; for the state's own figures use the state tables of that census.
  • Livestock, dairy and fish. According to the Basic Animal Husbandry Statistics 2024 (reference year 2023-24), Uttar Pradesh gave 16.21 per cent of India's milk, Rajasthan 14.51 and Madhya Pradesh 8.91, which placed the state third. Fishing and aquaculture is only 0.61 per cent of GSVA, so its growth rates look large on a small base.

4. Industry, MSME, One District One Product and intellectual property

In the Survey's accounts industry is construction (9.22%), manufacturing (7.22%) and utilities (3.35%), so policy aims to raise manufacturing through industrial parks, land allotment and investor summits. Summaries of the 2025-26 Survey report that 1,028 units were allotted industrial land, with proposed investment above Rs 1.17 lakh crore and about 1.7 lakh jobs projected. Budget 2026-27, as analysed by PRS, announced a telecom manufacturing zone at Gwalior and an Indore-Pithampur Economic Corridor estimated at Rs 2,360 crore.

Intentions are not investment. The Bhopal Global Investors Summit of 24-25 February 2025 recorded investment intentions of about Rs 30.77 lakh crore (the state's headline figure; reports differ on how it is built, including whether earlier engagements are counted); the real test is the share that becomes factories and jobs. The Aatma Nirbhar Madhya Pradesh roadmap, launched in late 2020 with a 2023 horizon, set goals for farm profitability, irrigation, MSMEs, skills, health, education and governance: treat it as the state's counterpart of the national self-reliance idea, not as a list of figures.

One District One Product (ODOP) means picking, branding and marketing at least one distinctive product per district, such as a craft, textile or processed food, with group marketing, finance and export support. Many Madhya Pradesh ODOP items are also GI-registered goods. A Geographical Indication is intellectual property under the Geographical Indications of Goods (Registration and Protection) Act, 1999, administered by the GI Registry at Chennai; it protects a product's name and standard for its place and producers, which is why each new tag counts as progress on IPR.

Examples of GI-registered products of Madhya Pradesh
ProductPlaceKind
Chanderi sareesChanderi, Ashoknagar districtHandloom textile
Maheshwari sarees and fabricsMaheshwar, Khargone districtHandloom textile
Bagh printsBagh, Dhar districtHand block print
Ratlami sevRatlamFood
Morena gajakMorenaFood
Kadaknath black chicken meatJhabuaFood
Sunderja mangoRewaAgricultural
Chinnor riceBalaghatAgricultural

5. Infrastructure, power, water, minerals and the forest-tribal economy

Power and water. Electricity, gas and water are 3.35% of GSVA, but power weighs heavily on the budget: distribution is run by three regional companies (Poorv Kshetra at Jabalpur, Madhya Kshetra at Bhopal, Paschim Kshetra at Indore), and the PRS analysis of the Budget shows Rs 25,142 crore, or 1.48 per cent of GSDP, budgeted for power subsidies in 2025-26 (BE). The 750 MW Rewa Ultra Mega Solar project, a joint venture of the state and the Solar Energy Corporation of India, supplies the state utility and the Delhi Metro. On water, the Narmada Water Disputes Tribunal (constituted 1969) apportioned 28 million acre-feet (MAF) at 75 per cent dependability in its 1979 Award: Madhya Pradesh 18.25, Gujarat 9, Rajasthan 0.5 and Maharashtra 0.25.

Minerals. Mining and quarrying is 2.96% of GSVA, but its royalty and local effects matter. Under Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, inserted in 2015, each mining-affected district has a District Mineral Foundation, funded by lessee contributions of 10 per cent of royalty for leases granted on or after 12 January 2015 and 30 per cent for earlier leases, and spent on affected communities under the Pradhan Mantri Khanij Kshetra Kalyan Yojana.

Forest and tribal economy. Forestry is only 2.13% of GSVA, which understates its livelihood role. Minor forest produce (MFP), such as tendu leaf, mahua flower and seed, sal seed, chironji, honey and gum, is the cash income of many tribal households. Madhya Pradesh nationalised the tendu leaf trade in 1964 under the Madhya Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam; the leaf is counted in a standard gaddi of 50 leaves and a standard bag of 1,000 gaddis (50,000 leaves), and pickers are paid a collection rate per standard bag.

The law then moved ownership towards the community. The Forest Rights Act, 2006 recognises rights to collect, use and dispose of minor forest produce, and the PESA Act, 1996 gives Gram Sabhas in Scheduled Areas ownership of it. Madhya Pradesh notified its PESA Rules on 15 November 2022 (Janjatiya Gaurav Divas), so that Gram Sabhas can decide on natural resources in forest areas.

6. State finances: where the money comes from and where it goes

In law, all revenues, loans and repayments of the state go into the Consolidated Fund of the State (Article 266(1)); money leaves it only under an Appropriation Act of the Vidhan Sabha (Articles 204 and 266(3)); the Contingency Fund of the State (Article 267(2)) is an advance for urgent unforeseen spending; and the state may borrow on the security of its Consolidated Fund within limits set by law (Article 293). No tax may be levied except by authority of law (Article 265).

On receipts, 54 per cent of revenue receipts in 2026-27 (BE) come from the Centre (36 per cent the state's share in central taxes, 18 per cent grants) and 46 per cent from the state's own tax and non-tax revenue. Of own tax revenue of Rs 1,17,667 crore (6.4 per cent of GSDP), State GST is the largest head (Rs 42,311 crore, 36 per cent), then sales tax/VAT (Rs 22,209 crore), State excise (Rs 20,279 crore), stamp duty and registration (Rs 19,112 crore) and vehicle tax (Rs 5,721 crore). GST rests on the 101st Amendment (2016), which inserted Article 246A and the GST Council (Article 279A); the state keeps the SGST on intra-state supplies.

The Finance Commission (Article 280) recommends the states' share of the divisible pool of Union taxes. The 16th Commission (report tabled 1 February 2026, for 2026-31) kept the states' collective share at 41 per cent. Press reports put Madhya Pradesh's individual share at 7.35 per cent, down from 7.85 per cent under the 15th Commission; check the Commission's state-wise tables before quoting the figure. The Budget reflects the change: the share in central taxes is budgeted to rise about 3 per cent in 2026-27, while own tax revenue is budgeted to rise about 18 per cent.

Madhya Pradesh budget in brief (Rs crore; PRS Legislative Research analysis of Budget 2026-27)
Item2024-25 Actuals2025-26 RE2026-27 BE
Own tax revenue94,4081,00,0201,17,667
Share in central taxes1,01,0201,09,3511,12,137
Grants from the Centre32,67845,58254,505
Capital outlay67,44173,23278,920
Revenue surplus1,573744
Fiscal deficit64,388 (4.3% of GSDP)74,321 (4.5%)71,458 (3.9%)

On expenditure, the largest heads in 2026-27 (BE) are education, sports, arts and culture (Rs 52,917 crore), social welfare and nutrition (Rs 40,400 crore, including Rs 23,883 crore for the Ladli Behna Yojana cash transfer), energy (Rs 31,843 crore) and health (Rs 24,001 crore). Salaries, pensions and interest are committed expenditure: Rs 1,37,826 crore, 45 per cent of revenue receipts (salaries 24.5, pension 9.2, interest 10.9).

⚠️ A Budget Estimate is not an Actual
The revised estimate of 2025-26 put the revenue surplus at Rs 7 crore against a budgeted Rs 618 crore, and own tax revenue came in about 8 per cent below its budget estimate. A Budget Estimate is a promise; an Actual is a fact.

7. Deficits, debt and fiscal discipline

The revenue balance is revenue receipts minus revenue expenditure; a deficit means borrowing to meet running costs. The fiscal deficit is total expenditure (excluding debt repayment) minus receipts (excluding borrowings): the year's net borrowing. The primary deficit is the fiscal deficit minus interest payments. Outstanding liabilities are accumulated borrowing plus public-account liabilities such as provident funds.

The Madhya Pradesh Fiscal Responsibility and Budget Management Act, 2005 sets annual targets to reduce outstanding liabilities, the revenue deficit and the fiscal deficit. The 16th Finance Commission recommended a fiscal deficit limit of 3 per cent of GSDP for 2026-31, and the Centre's 50-year interest-free capital loans are excluded when the borrowing ceiling is worked out. Against that, the state's fiscal deficit was 4.3% (2024-25 actuals) and 4.5% (2025-26 RE), and is targeted at 3.9% (2026-27 BE); outstanding liabilities are 32.2% of GSDP (2025-26 RE) and 32.5% (2026-27 BE).

Debt is not the whole story. Guarantees: the state's guarantees for borrowing by public sector enterprises are a contingent liability, outside the outstanding-debt figure; check the latest Accounts at a Glance for the amount. Enterprises: of 73 state public sector enterprises in March 2023, 66 had accounts in arrears, and three power distribution companies caused 91 per cent of the Rs 1,941 crore combined loss of the 12 loss-making enterprises among the 32 that had finalised 2022-23 accounts. Accountability: the CAG's State Finances Audit Reports repeatedly flag delays in submitting utilisation certificates, the proof that central grants were spent for their purpose.

🧠 Four questions for any state budget
Ask in order: which year and which column (Actual, RE or BE)? Nominal or real? Rupees or a share of GSDP? And how much is already committed (salary, pension, interest)? Most mistakes come from skipping the first two.

Key takeaways

  • The Survey looks back and the Budget looks forward. Every figure belongs to a year and a column (Actual, RE, BE or advance estimate), and nominal and real (constant 2011-12) figures must not be mixed.
  • Survey 2025-26 (advance): GSDP Rs 16,69,750 crore, per capita income Rs 1,69,050, GSVA at current prices 43.09% primary, 19.79% secondary, 37.12% tertiary. The gap to constant-price shares is a price effect.
  • Agriculture and allied activities are about 40% of GSVA. Crop ranks change yearly, so learn the competitors; MP was third in milk in 2023-24. Industry is mostly construction and utilities, and summit intentions are not investment.
  • ODOP and GI tags (Chanderi, Maheshwari, Bagh, Kadaknath) are the state's craft and IPR story; a GI protects a name for a place under the 1999 Act.
  • Tribal incomes rest on minor forest produce: tendu trade was nationalised in 1964, the Forest Rights Act 2006 and PESA 1996 move control to the community, and the state notified PESA Rules on 15 November 2022.
  • In 2026-27 (BE) 54% of revenue receipts come from the Centre; State GST is the largest own tax. Discipline is tested by the 2005 FRBM Act, a 3.9% fiscal deficit target, liabilities of 32.5% of GSDP, guarantees, loss-making power companies and pending utilisation certificates.

Practice questions (17)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

  1. Under which Article of the Constitution is the Governor required to cause the annual financial statement (the Budget) of a State to be laid before the State Legislature?

    1. Article 112, which governs the Union Budget, the annual financial statement of the Union
    2. Article 202, which governs the State annual financial statement
    3. Article 266, which creates the State's Consolidated Fund and governs the receipts paid into it
    4. Article 204, which governs the Appropriation Bill that votes the demands for grants
    Show answer

    Answer: B — Article 202, which governs the State annual financial statement

    Article 202 requires the Governor to cause the annual financial statement, showing estimated receipts and expenditure, to be laid before the Legislature. Article 112 is the Union counterpart for the President. Article 204 comes later, when the demands for grants are turned into an Appropriation Bill, and Article 266 creates the Consolidated Fund, not the statement.

  2. According to the advance estimates in the Economic Survey of Madhya Pradesh 2025-26, the primary sector's share in the state's GSVA at current prices for 2025-26 was closest to which figure?

    1. About 20 per cent of GSVA
    2. About 34 per cent of GSVA
    3. About 43 per cent of GSVA
    4. About 57 per cent of GSVA
    Show answer

    Answer: C — About 43 per cent of GSVA

    The Survey puts the primary share at 43.09 per cent at current prices. The figure of about 34 per cent (33.54) is the tempting wrong answer, because it is the primary share at constant 2011-12 prices, while about 20 per cent (19.79) is the secondary sector's current-price share.

  3. In the Economic Survey of Madhya Pradesh 2025-26 (advance estimates), the primary sector's share of GSVA is 43.09 per cent at current prices but only 33.54 per cent at constant 2011-12 prices. Which explanation is correct?

    1. Prices of primary-sector output have risen faster since 2011-12 than the average price level of the whole economy, which lifts its current-price share
    2. The primary sector's real output has shrunk since 2011-12, so the constant-price estimate leaves out part of what it now produces
    3. Crops sold at minimum support prices are counted only in the current-price series and are excluded from the constant-price series
    4. Current-price estimates add the value of farm goods brought in from other states, which constant-price estimates do not
    Show answer

    Answer: A — Prices of primary-sector output have risen faster since 2011-12 than the average price level of the whole economy, which lifts its current-price share

    The two series cover the same output; they differ only in the prices used. A larger share at current prices means primary-sector prices rose faster than the economy-wide average since the 2011-12 base. The method neither drops MSP crops nor adds goods brought in from other states, so those explanations fail.

  4. The Economic Survey of Madhya Pradesh 2025-26 (advance estimates) gives per capita income for 2025-26 as Rs 1,69,050 at current prices and Rs 76,971 at constant 2011-12 prices, against Rs 38,497 in 2011-12. Consider: P: In real terms, per capita income is about double its 2011-12 level. Q: At current prices it is more than four times its 2011-12 level. R: The constant-price figure is the higher of the two because inflation has reduced incomes since 2011-12. S: For 2011-12, the base year, the current-price and constant-price figures are the same. Which statements are correct?

    1. P and R only
    2. Q and R only
    3. R and S only
    4. P, Q and S only
    Show answer

    Answer: D — P, Q and S only

    Real income is 76,971 against 38,497, about 2.0 times; nominal income is 1,69,050 against 38,497, about 4.4 times; and in the base year the two price bases coincide. Statement R is the trap: the constant-price figure is the lower one, because price rise is stripped out, so it cannot be the higher.

  5. In Madhya Pradesh Budget 2026-27 (BE), as analysed by PRS Legislative Research, revenue receipts comprise own tax revenue of Rs 1,17,667 crore, own non-tax revenue of Rs 24,394 crore, share in central taxes of Rs 1,12,137 crore and grants from the Centre of Rs 54,505 crore. The share of revenue receipts that comes from the Centre is closest to

    1. 36 per cent
    2. 46 per cent
    3. 54 per cent
    4. 64 per cent
    Show answer

    Answer: C — 54 per cent

    Total revenue receipts are Rs 3,08,703 crore; the Centre's part is 1,12,137 + 54,505 = Rs 1,66,642 crore, which is 54 per cent. Thirty-six per cent is the state's share in central taxes alone, and 46 per cent is the state's own tax and non-tax revenue, the share that does not come from the Centre.

  6. Consider these statements on Madhya Pradesh Budget 2026-27 (BE), as analysed by PRS Legislative Research. P: The fiscal deficit is targeted at 3.9 per cent of GSDP, lower than the 4.5 per cent in the 2025-26 revised estimates. Q: The revenue account is estimated to show a deficit of about Rs 44 crore. R: Committed expenditure on salaries, pension and interest is estimated at more than 40 per cent of revenue receipts. S: Outstanding liabilities are estimated at about 32.5 per cent of GSDP at the end of 2026-27. Which statements are correct?

    1. P, Q and R only
    2. P, R and S only
    3. Q, R and S only
    4. P and S only
    Show answer

    Answer: B — P, R and S only

    The deficit target of 3.9 per cent, committed expenditure of 45 per cent of revenue receipts (above 40) and liabilities of 32.5 per cent of GSDP are all in the analysis. Statement Q is wrong: the revenue account is estimated to show a surplus of Rs 44 crore, not a deficit, and it is the tempting error because the fiscal account itself is in deficit.

  7. Match each Article of the Constitution (P to S) with its subject as it applies to a State. P: Article 202. Q: Article 266(1). R: Article 267(2). S: Article 293.

    1. P: annual financial statement; Q: Consolidated Fund of the State; R: Contingency Fund of the State; S: borrowing by the State
    2. P: annual financial statement; Q: Contingency Fund of the State; R: Consolidated Fund of the State; S: borrowing by the State
    3. P: Consolidated Fund of the State; Q: annual financial statement; R: borrowing by the State; S: Contingency Fund of the State
    4. P: borrowing by the State; Q: Consolidated Fund of the State; R: Contingency Fund of the State; S: annual financial statement
    Show answer

    Answer: A — P: annual financial statement; Q: Consolidated Fund of the State; R: Contingency Fund of the State; S: borrowing by the State

    Article 202 is the annual financial statement, Article 266(1) the Consolidated Fund of the State, Article 267(2) the State's Contingency Fund and Article 293 borrowing by States. The usual error is to swap the two funds: the Consolidated Fund is the main account for all receipts and loans, while the Contingency Fund is only an advance for urgent unforeseen spending.

  8. Arrange these events in chronological order, earliest first. P: Madhya Pradesh notifies its PESA Rules. Q: Madhya Pradesh nationalises the tendu leaf trade by statute. R: The Aatma Nirbhar Madhya Pradesh roadmap is launched. S: The Narmada Water Disputes Tribunal is constituted.

    1. S, Q, R, P
    2. Q, S, P, R
    3. S, Q, P, R
    4. Q, S, R, P
    Show answer

    Answer: D — Q, S, R, P

    The tendu trade was nationalised in 1964 (Q), the Narmada Tribunal was constituted in 1969 (S), the Aatma Nirbhar Madhya Pradesh roadmap came in November 2020 (R) and the PESA Rules in November 2022 (P). The commonest slip is to put the tribunal before the tendu Act because the tribunal's award of 1979 is better remembered.

  9. Which of the following GI-registered products of Madhya Pradesh is associated with Jhabua district?

    1. Chanderi sarees, a handloom textile of Ashoknagar district
    2. Ratlami sev, a savoury food product of Ratlam
    3. Kadaknath black chicken meat, a poultry food product
    4. Bagh prints, a hand block print of Dhar district
    Show answer

    Answer: C — Kadaknath black chicken meat, a poultry food product

    The GI tag (2018) covers Kadaknath chicken meat from Jhabua. Chanderi sarees belong to Ashoknagar district, Ratlami sev to Ratlam, and Bagh prints to Bagh in Dhar district, so each of the other three is tied to a different place.

  10. Match each GI-registered product of Madhya Pradesh (P to S) with the district of its place of origin. P: Maheshwari sarees. Q: Bagh prints. R: Chanderi sarees. S: Morena gajak.

    1. P: Ashoknagar; Q: Dhar; R: Khargone; S: Morena
    2. P: Khargone; Q: Dhar; R: Ashoknagar; S: Morena
    3. P: Dhar; Q: Khargone; R: Ashoknagar; S: Morena
    4. P: Khargone; Q: Ashoknagar; R: Dhar; S: Morena
    Show answer

    Answer: B — P: Khargone; Q: Dhar; R: Ashoknagar; S: Morena

    Maheshwar is in Khargone district, Bagh in Dhar district and Chanderi in Ashoknagar district; Morena gajak is named for its own district. Maheshwari and Chanderi sarees are both handloom textiles and are the pair most often swapped, which is why the options rearrange the three textile and print places.

  11. In Madhya Pradesh a standard gaddi of tendu leaves is a bundle of 50 leaves and a standard bag holds 1,000 standard gaddis. At an assumed collection rate of Rs 4,000 per standard bag, a picker who delivers 30,000 leaves would be paid

    1. Rs 2,400, since 30,000 leaves are 0.6 of a standard bag
    2. Rs 600, since 30,000 leaves are 0.15 of a standard bag
    3. Rs 1,200, since 30,000 leaves are 0.3 of a standard bag
    4. Rs 3,000, since 30,000 leaves are 0.75 of a standard bag
    Show answer

    Answer: A — Rs 2,400, since 30,000 leaves are 0.6 of a standard bag

    A standard bag holds 1,000 x 50 = 50,000 leaves, so 30,000 leaves are 0.6 of a bag and earn 0.6 x 4,000 = Rs 2,400. The other amounts come from misreading the bag's size in leaves; the error to avoid is forgetting that the bag counts gaddis, and each gaddi holds 50 leaves, not one.

  12. The Narmada Water Disputes Tribunal's 1979 Award apportioned 28 million acre-feet of utilisable water at 75 per cent dependability among four States. Which option lists the party States by their shares under the Award, largest first?

    1. Madhya Pradesh, Gujarat, Maharashtra, Rajasthan
    2. Gujarat, Madhya Pradesh, Rajasthan, Maharashtra
    3. Madhya Pradesh, Rajasthan, Gujarat, Maharashtra
    4. Madhya Pradesh, Gujarat, Rajasthan, Maharashtra
    Show answer

    Answer: D — Madhya Pradesh, Gujarat, Rajasthan, Maharashtra

    The shares are Madhya Pradesh 18.25, Gujarat 9, Rajasthan 0.5 and Maharashtra 0.25 million acre-feet. Rajasthan, though not a riparian State, received twice Maharashtra's share, so the order of the last two is the usual trap; and Gujarat, which holds the Sardar Sarovar dam, still receives only about half of Madhya Pradesh's share.

  13. On which date did Madhya Pradesh notify its Rules under the PESA Act (Panchayats (Extension to the Scheduled Areas) Act, 1996), marking Janjatiya Gaurav Divas?

    1. 15 November 2021
    2. 15 November 2022
    3. 15 November 2023
    4. 15 August 2022
    Show answer

    Answer: B — 15 November 2022

    The state notified its PESA Rules on 15 November 2022, Janjatiya Gaurav Divas, the birth anniversary of Birsa Munda. The 2021 date tempts because the day was instituted that year, while 15 August 2022 is a different national day and 2023 is a year too late.

  14. According to the Basic Animal Husbandry Statistics 2024 (reference year 2023-24), Uttar Pradesh and Rajasthan were the two largest milk-producing States. Which State ranked third?

    1. Madhya Pradesh, with 8.91 per cent of India's milk
    2. Gujarat, with 7.65 per cent of India's milk
    3. Maharashtra, with 6.71 per cent of India's milk
    4. Andhra Pradesh, with a smaller share than Maharashtra
    Show answer

    Answer: A — Madhya Pradesh, with 8.91 per cent of India's milk

    The report places Madhya Pradesh third at 8.91 per cent, behind Uttar Pradesh (16.21) and Rajasthan (14.51), and just ahead of Gujarat (7.65) and Maharashtra (6.71). Gujarat, at 7.65 per cent, is the nearest rival below Madhya Pradesh, and Maharashtra follows at 6.71. The ranking is for 2023-24 only.

  15. The Budget documents of Madhya Pradesh show State GST revenue of Rs 42,140 crore (2025-26 BE), Rs 35,560 crore (2025-26 RE) and Rs 42,311 crore (2026-27 BE). Which inference is supported by these figures?

    1. The 2026-27 estimate assumes a fall in State GST compared with the 2025-26 revised estimate, so collections are expected to weaken after the year just ended
    2. The 2025-26 revised estimate exceeded the budget estimate, showing that State GST collections beat expectations during the year
    3. The 2026-27 estimate is about 19 per cent above the 2025-26 revised estimate, yet barely above the budget estimate
    4. The 2026-27 estimate is about 19 per cent above the 2025-26 budget estimate, so the budget was set too low
    Show answer

    Answer: C — The 2026-27 estimate is about 19 per cent above the 2025-26 revised estimate, yet barely above the budget estimate

    42,311 divided by 35,560 is about 1.19, so the 2026-27 figure assumes growth of about 19 per cent on the revised estimate, but it is only about 0.4 per cent above the 2025-26 budget estimate of 42,140. The revised estimate was well below the budget estimate, not above it, so the shortfall rather than a surplus is what the figures show.

  16. In the sector classification used by the Economic Survey of Madhya Pradesh, which of the following is NOT part of the secondary sector?

    1. Construction
    2. Manufacturing
    3. Electricity, gas, water supply and other utility services
    4. Mining and quarrying
    Show answer

    Answer: D — Mining and quarrying

    Mining and quarrying is counted in the primary sector, with crops, livestock, forestry and fishing; the Survey gives it 2.96 per cent of GSVA within the primary total. Construction, manufacturing and utilities make up the secondary sector. Mining is the tempting error because it is an industrial activity in everyday speech.

  17. Consider these statements on the District Mineral Foundation (DMF). P: A DMF is set up in each mining-affected district under Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, inserted in 2015. Q: For mining leases granted on or after 12 January 2015, the lessee contributes 10 per cent of the royalty. R: For leases granted before that date, the contribution is 30 per cent of the royalty. S: DMF money is credited to the Consolidated Fund of the State and spent as general revenue. Which statements are correct?

    1. P, Q and R only
    2. P, Q and S only
    3. Q, R and S only
    4. P and R only
    Show answer

    Answer: A — P, Q and R only

    Section 9B creates the DMF, the Contribution Rules fix 10 per cent for post-January 2015 leases and 30 per cent for earlier ones. Statement S is wrong: the DMF is a separate non-profit trust whose money is spent on affected communities under the Pradhan Mantri Khanij Kshetra Kalyan Yojana, not paid into the Consolidated Fund as general revenue.