Indian Economy MCQs

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Uttarakhand was the first state to set up Special Agricultural Zones (SAZs) in 2011. It was launched on the lines of the Special Economic Zones (SEZs). It encouraged the farmers to develop high-quality crop seeds typical to hilly regions.

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The Reserve Bank of India conducts open market operations primarily in the gilt-edged market. Gilt-edged market refers to the market for government securities. RBI buys and sells government securities to regulate money supply. OMOs in India deal only with government securities, not private securities. Gilt-edged securities are considered low risk and are issued by the Government of India.

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The RBI increases the Cash Reserve Ratio (CRR) to absorb surplus liquidity from banks. In August 2023, RBI required banks to maintain a 10% incremental CRR on certain deposit increases. Higher CRR compels banks to hold more deposits as reserves with RBI, reducing their capacity to lend and thus controlling excess liquidity in the financial system.

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State Development Loans are debt instruments issued by state governments in India. The Reserve Bank of India acts as the agent for all state governments in managing and coordinating the auction and sale of SDLs. RBI notifies the details and conducts the actual sale process via electronic platforms regulated by it, ensuring efficient borrowing for states.

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Singareni Collieries Company Limited (SCCL) is jointly owned by the Government of Telangana and Government of India on a 51:49 equity basis.

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The Index of Industrial Production is compiled and published monthly by the National Statistics Office. The National Statistics Office operates under the Ministry of Statistics and Programme Implementation. The responsibility for IIP preparation was transferred from the Central Statistical Office to the NSO. The IIP covers mining, manufacturing, and electricity sectors and is released six weeks after each reference month.

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If a company has receivables, this means it has made a sale but has yet to collect the money from the purchaser.

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Indirect taxes such as GST and excise duties are levied at uniform rates regardless of the income level of the consumer. This results in all consumers, irrespective of their earning capacity, paying the same rate on goods and services. Indirect taxes are considered regressive for this reason. The tax rate is not linked to income or earning ability.

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In 2025, India ranks second worldwide in cotton production, producing about 5.1 million tonnes. China ranks first with 7.5 million tonnes. India accounts for 20% of world cotton production and leads in total cotton cultivation area, covering 38% of the world’s cotton-growing land. The expected output for 2025-26 in India is around 23.5-24.5 million bales.

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Visakhapatnam Steel Plant, known as Rashtriya Ispat Nigam Limited, was commissioned in 1982 in Andhra Pradesh. It was the first shore-based integrated steel plant in India. The foundation stone was laid in 1971. The plant initially had a capacity of 3.0 million tonnes per annum. The capacity later expanded to 7.3 MTPA by 2017. The plant was established with technological support from the USSR and Germany.