Indian Economy Important MCQs for All Competitive Exams

Q. Who is known as the “Father of Indian Planning”?

a) Jawaharlal Nehru

b) Mahatma Gandhi

c) M. Visvesvaraya

d) P. C. Mahalanobis

Ans: c) M. Visvesvaraya

Q. What is the base year for calculating India’s GDP?

a) 2010-11

b) 2011-12

c) 2014-15

d) 2018-19

Ans: b) 2011-12

Q. What is the current Foreign Direct Investment (FDI) limit in the defense sector of India?

a) 26%

b) 49%

c) 74%

d) 100%

Ans: c) 74%

Q. The Goods and Services Tax (GST) was introduced in India in which year?

a) 2015

b) 2016

c) 2017

d) 2018

Ans: c) 2017

Q. Who chairs the GST Council in India?

a) Prime Minister

b) Finance Minister

c) President

d) RBI Governor

Ans: b) Finance Minister

Q. Which sector contributes the most to India’s GDP?

a) Agriculture

b) Industry

c) Services

d) Mining

Ans: c) Services

Q. The term “LPG” reforms refer to:

a) Liberalization, Privatization, and Globalization

b) Liquefied Petroleum Gas

c) Local Planning and Growth

d) Labor, Profit, and Growth

Ans: a) Liberalization, Privatization, and Globalization

Q. Who is the current Governor of the Reserve Bank of India (RBI) as of 2024?

a) Raghuram Rajan

b) Shaktikanta Das

c) Urjit Patel

d) D. Subbarao

Ans: b) Shaktikanta Das

Q. Which institution is responsible for determining the interest rates in India?

a) Ministry of Finance

b) Reserve Bank of India

c) SEBI

d) NITI Aayog

Ans: b) Reserve Bank of India

Q. Which of the following is the largest public sector bank in India?

a) ICICI Bank

b) Axis Bank

c) State Bank of India

d) Punjab National Bank

Ans: c) State Bank of India

Q. India achieved “Operation Flood” success in which sector?

a) Agriculture

b) Dairy

c) Mining

d) Textile

Ans: b) Dairy

Q. Which plan is also known as “Gadgil Yojana”?

a) Third Five Year Plan

b) Fourth Five Year Plan

c) Fifth Five Year Plan

d) Sixth Five Year Plan

Ans: a) Third Five Year Plan

Q. Which organization publishes the “Economic Survey of India”?

a) Reserve Bank of India

b) Ministry of Finance

c) NITI Aayog

d) Planning Commission

Ans: b) Ministry of Finance

Q. India’s first Green Revolution focused on which crop?

a) Wheat

b) Rice

c) Maize

d) Sugarcane

Ans: a) Wheat

Q. Which state is the largest producer of coffee in India?

a) Tamil Nadu

b) Karnataka

c) Kerala

d) Andhra Pradesh

Ans: b) Karnataka

Q. What is the full form of NABARD?

a) National Bank for Agricultural and Rural Development

b) National Agriculture and Banking Rural Department

c) National Agricultural and Banking Reserve Department

d) National Board for Agricultural Research and Development

Ans: a) National Bank for Agricultural and Rural Development

Q. What is the full form of SEBI?

a) State Economic Banking Institute

b) Securities and Exchange Board of India

c) South East Banking Institution

d) Social Economic Board of India

Ans: b) Securities and Exchange Board of India

Q. Which Indian economist won the Nobel Prize in 1998?

a) Manmohan Singh

b) Raghuram Rajan

c) Amartya Sen

d) Jagdish Bhagwati

Ans: c) Amartya Sen

Q. “Make in India” campaign was launched in which year?

a) 2013

b) 2014

c) 2015

d) 2016

Ans: b) 2014

Q. What is India’s rank in terms of nominal GDP globally (as of 2024)?

a) 3rd

b) 5th

c) 6th

d) 7th

Ans: b) 5th

Q. Which body is responsible for India’s monetary policy?

a) Ministry of Finance

b) Reserve Bank of India

c) NITI Aayog

d) SEBI

Ans: b) Reserve Bank of India

Q. The headquarters of RBI is located in:

a) New Delhi

b) Kolkata

c) Mumbai

d) Bengaluru

Ans: c) Mumbai

Q. India’s current population according to the 2021 census was:

a) Q.21 billion

b) Q.25 billion

c) Q.34 billion

d) Q.40 billion

Ans: c) Q.34 billion

Q. What does ‘MSP’ stand for in the context of agriculture?

a) Minimum Support Price

b) Maximum Selling Price

c) Minimum Sales Policy

d) Market Selling Price

Ans: a) Minimum Support Price

Q. The first Industrial Policy in India was announced in:

a) 1948

b) 1950

c) 1956

d) 1960

Ans: a) 1948

Q. The concept of “Demographic Dividend” is related to:

a) High birth rates

b) Increase in working-age population

c) Decline in death rates

d) Increased child population

Ans: b) Increase in working-age population

Indian Economy Important MCQs for All Competitive Exams

Q. The currency of India is regulated by:

a) NITI Aayog

b) Ministry of Finance

c) SEBI

d) Reserve Bank of India

Ans: d) Reserve Bank of India

Q. Which of the following is the apex body for approving industrial projects in India?

a) FICCI

b) SEBI

c) Ministry of Commerce

d) Department for Promotion of Industry and Internal Trade (DPIIT)

Ans: d) Department for Promotion of Industry and Internal Trade (DPIIT)

Q. What is the primary objective of the MGNREGA scheme?

a) Urban Development

b) Rural Employment

c) Educational Empowerment

d) Economic Planning

Ans: b) Rural Employment

Q. What does ‘NPA’ stand for in banking?

a) Non-Performing Assets

b) National Product Accounting

c) Net Profit Assets

d) National Pension Authority

Ans: a) Non-Performing Assets

Q. The “Repo Rate” is the rate at which:

a) The central bank lends money to commercial banks

b) Commercial banks lend to the public

c) The central bank borrows money from commercial banks

d) Public deposits are insured

Ans: a) The central bank lends money to commercial banks

Q. Which of the following taxes was subsumed under GST?

a) Income Tax

b) Corporation Tax

c) Service Tax

d) Custom Duty

Ans: c) Service Tax

Q. The term “Hindu rate of growth” refers to:

a) High growth rate during Hindu Kingdom

b) Slow economic growth in India before liberalization

c) Growth influenced by religious factors

d) Economic growth in predominantly Hindu regions

Ans: b) Slow economic growth in India before liberalization

Q. In which year was the Planning Commission replaced by NITI Aayog?

a) 2014

b) 2015

c) 2016

d) 2017

Ans: b) 2015

Q. What is the primary objective of the Pradhan Mantri Jan Dhan Yojana?

a) Financial Inclusion

b) Rural Employment

c) Urban Development

d) Infrastructure Investment

Ans: a) Financial Inclusion

Q. Which of the following sectors receives the maximum allocation in the Union Budget of India?

a) Education

b) Health

c) Defense

d) Agriculture

Ans: c) Defense

Q. What does the term “Twin Deficit” refer to?

a) Fiscal deficit and trade deficit

b) Revenue deficit and fiscal deficit

c) Trade deficit and inflation

d) Revenue deficit and inflation

Ans: a) Fiscal deficit and trade deficit

Q. The government’s disinvestment strategy in public sector undertakings aims to:

a) Increase government ownership

b) Raise capital by selling stakes

c) Nationalize industries

d) Encourage foreign companies

Ans: b) Raise capital by selling stakes

Q. The Maharatna status is given to which category of companies?

a) Private companies

b) Public sector enterprises

c) Small and Medium Enterprises (SMEs)

d) Foreign companies

Ans: b) Public sector enterprises

Q. Which Indian institution releases the Consumer Price Index (CPI) data?

a) Reserve Bank of India

b) Ministry of Finance

c) Central Statistical Office (CSO)

d) National Sample Survey Office (NSSO)

Ans: c) Central Statistical Office (CSO)

Q. The concept of “inclusive growth” in India emphasizes:

a) Growth restricted to certain regions

b) Growth benefiting all sections of society

c) Growth focused on the manufacturing sector

d) Growth without environmental concerns

Ans: b) Growth benefiting all sections of society

Q. In India, what is the main purpose of the Insolvency and Bankruptcy Code (IBC)?

a) Settle trade disputes

b) Resolve insolvency and bankruptcy issues

c) Provide subsidies to industries

d) Regulate stock exchanges

Ans: b) Resolve insolvency and bankruptcy issues

Q. Which organization publishes the Human Development Index (HDI) annually?

a) World Bank

b) International Monetary Fund

c) United Nations Development Programme

d) World Economic Forum

Ans: c) United Nations Development Programme

Q. Who was the first Chairman of NITI Aayog?

a) Dr. Manmohan Singh

b) Arvind Panagariya

c) Narendra Modi

d) Amitabh Kant

Ans: c) Narendra Modi

Q. The first-ever budget of independent India was presented by:

a) Jawaharlal Nehru

b) C.D. Deshmukh

c) R.K. Shanmukham Chetty

d) Morarji Desai

Ans: c) R.K. Shanmukham Chetty

Q. The “Ujjwala Yojana” launched by the Indian government aims to provide:

a) Sanitation facilities

b) Free LPG connections to BPL households

c) Financial literacy

d) Housing for all

Ans: b) Free LPG connections to BPL households

Q. Which city is known as the “Silicon Valley of India”?

a) Hyderabad

b) Pune

c) Bengaluru

d) Chennai

Ans: c) Bengaluru

Q. What is the purpose of the “Startup India” initiative?

a) Promote large-scale industries

b) Encourage small and medium enterprises

c) Support startups and innovation

d) Increase imports

Ans: c) Support startups and innovation

Q. The Direct Benefit Transfer (DBT) scheme aims to:

a) Provide subsidies to corporations

b) Directly transfer subsidies to beneficiaries’ bank accounts

c) Fund foreign investments

d) Implement GST

Ans: b) Directly transfer subsidies to beneficiaries’ bank accounts

Q. What is the role of the Indian Statistical Institute (ISI)?

a) Manage India’s population policy

b) Conduct research and training in statistics

c) Regulate the stock market

d) Manage trade policies

Ans: b) Conduct research and training in statistics

Q. The term “Bull Market” in the stock market refers to:

a) A declining market

b) A stagnant market

c) A rising market

d) An unregulated market

Ans: c) A rising market

Q. The 15th Finance Commission was constituted for the period:

a) 2015-2020

b) 2016-2021

c) 2020-2025

d) 2021-2026

Ans: d) 2021-2026

Q. Which committee recommended the Goods and Services Tax (GST) in India?

a) Kelkar Committee

b) Vijay Kelkar Task Force

c) Rangarajan Committee

d) Malhotra Committee

Ans: b) Vijay Kelkar Task Force

Q. The concept of “Universal Basic Income” (UBI) refers to:

a) Providing education to all citizens

b) Providing a guaranteed income to every citizen

c) Providing healthcare to all

d) Providing subsidies to industries

Ans: b) Providing a guaranteed income to every citizen

Q. Which state is the largest producer of rice in India?

a) Punjab

b) West Bengal

c) Uttar Pradesh

d) Andhra Pradesh

Ans: b) West Bengal

Q. What is the primary function of the Export-Import Bank of India (EXIM Bank)?

a) Regulate monetary policy

b) Support and promote exports and imports

c) Manage internal trade

d) Fund infrastructure projects

Ans: b) Support and promote exports and imports

Q. The “National Rural Employment Guarantee Act” was passed in:

a) 2004

b) 2005

c) 2006

d) 2007

Ans: b) 2005

Q. The headquarters of the Securities and Exchange Board of India (SEBI) is located in:

a) New Delhi

b) Mumbai

c) Bengaluru

d) Chennai

Ans: b) Mumbai

Q. The largest source of power generation in India is:

a) Nuclear energy

b) Hydroelectric power

c) Thermal power

d) Solar power

Ans: c) Thermal power

Q. The Indian Rupee is printed by:

a) Reserve Bank of India

b) Ministry of Finance

c) Ministry of Commerce

d) State Bank of India

Ans: a) Reserve Bank of India

Q. The term “Balance of Payments” (BoP) refers to:

a) The balance of trade between states

b) The record of all economic transactions between residents of a country and the rest of the world

c) The internal trade balance of India

d) Balance between GDP and GNP

Ans: b) The record of all economic transactions between residents of a country and the rest of the world

Q. Which ministry is responsible for presenting the Union Budget in India?

a) Ministry of Finance

b) Ministry of Commerce

c) Ministry of External Affairs

d) Ministry of Home Affairs

Ans: a) Ministry of Finance

Q. The concept of “Minimum Reserve System” refers to:

a) The minimum reserves of foreign exchange with RBI

b) The minimum reserves of government bonds

c) The minimum currency reserves to be maintained by RBI

d) Minimum forex reserves of commercial banks

Ans: c) The minimum currency reserves to be maintained by RBI

Q. Which is the apex bank for agriculture and rural development in India?

a) RBI

b) EXIM Bank

c) NABARD

d) SIDBI

Ans: c) NABARD

Q. Which Indian state is the largest producer of wheat?

a) Punjab

b) Uttar Pradesh

c) Haryana

d) Madhya Pradesh

Ans: b) Uttar Pradesh

Q. Which Indian economist is known for his work on the “Poverty Line”?

a) Dr. Manmohan Singh

b) Jagdish Bhagwati

c) Suresh Tendulkar

d) Kaushik Basu

Ans: c) Suresh Tendulkar

Q. What is the main purpose of the “RERA Act”?

a) Regulate housing prices

b) Regulate real estate and protect home buyers

c) Ensure affordable housing

d) Boost industrial growth

Ans: b) Regulate real estate and protect home buyers

Q. The term “Depreciation” in economics refers to:

a) Increase in the value of currency

b) Decrease in the value of an asset over time

c) Decline in interest rates

d) A fall in production

Ans: b) Decrease in the value of an asset over time

Q. Who prepares the annual Union Budget of India?

a) Prime Minister

b) Finance Minister

c) President

d) RBI Governor

Ans: b) Finance Minister

Q. The term “Venture Capital” refers to:

a) Investment in government projects

b) Investment in start-ups and small businesses with growth potential

c) Foreign investment in real estate

d) Investment in stock markets

Ans: b) Investment in start-ups and small businesses with growth potential