UPSC Prelims 2025 Q4: Indian Economy – Infrastructure & Industry

UPSC Prelims 2025, General Studies Paper I · Indian Economy

Consider the following statements: I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR). II. In India, a company submitting a BRSR makes disclosures in the report that are largely non - financial in nature. Which of the statements given above is/are correct?

(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II

Answer: (b) II only

Explanation

BRSR Mandate by Regulator:

Regulator	Sector	BRSR Mandate?	Companies Covered
RBI	Banking and Monetary Policy	NO	Not applicable
SEBI	Securities and Stock Markets	YES	Top-listed companies by market capitalisation

Statement I: FALSE. RBI does NOT mandate BRSR. BRSR (Business Responsibility and Sustainability Report) is mandated by SEBI — specifically for top-listed companies, NOT for all listed companies.

Statement II: CORRECT. BRSR focuses on non-financial disclosures — Environmental (resource use, emissions), Social (employee welfare), and Governance (board diversity) — the ESG framework.

Answer: (b) II only.

Why each option is right or wrong

(a) Incorrect. Statement I is false on two counts: wrong regulator (RBI vs SEBI) and wrong scope (all companies vs top-listed only).
(b) CORRECT. Statement II is correct (BRSR = largely non-financial ESG disclosures). Statement I is wrong (SEBI, not RBI, mandates BRSR for top-listed companies only).
(c) Incorrect. Statement I is wrong on two counts — wrong regulator and wrong scope. You cannot call both correct.
(d) Incorrect. Statement II is definitively correct about the non-financial nature of BRSR disclosures.

Key point

BRSR = SEBI mandate (not RBI). Top-listed companies only (not all). Reports non-financial ESG data.

Remember

BRSR = SEBI mandate (not RBI). Top-listed companies only (not all). Reports non-financial ESG data.

Common mistakes

Confusing regulatory authorities. RBI = banking regulation. SEBI = securities markets and listed company disclosure. BRSR is a SEBI requirement.
Assuming BRSR applies to all listed companies. Only the top-listed companies by market cap must submit BRSR — not all.
Thinking BRSR is financial reporting. It is an ESG (Environmental, Social, Governance) report — largely non-financial.

Exam tip

Regulator memory map: RBI = banks. SEBI = stock markets + listed companies. IRDAI = insurance. PFRDA = pensions. BRSR = SEBI mandate for top companies, non-financial ESG focus.

Sources

SEBI Business Responsibility and Sustainability Reporting (BRSR) Guidelines (2021, 2023 amendments)
NCERT Class XII - Economics (Corporate Governance)
Ministry of Corporate Affairs - BRSR Framework
RBI Official Circular distinguishing SEBI vs. RBI mandates

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