Indian Economy MCQs

Notes:
Complementary goods, defined by their negative cross elasticity of demand, are products whose demand is influenced by one another. When the price of a good declines, the demand for its complementary good rises. Printers need ink cartridges, tea is often consumed with sugar, and mobile phones require SIM cards for operation. However, tea and coffee are substitutes, not complements, as they are consumed separately and often in place of one another, hence they are not complementary goods.

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Transfer payments made by the Government including subsidies, government aid, social security assistance such as health insurance payment and scholarship are not included in the national income. Because they do not represent any economic activity.

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The Competition Commission of India (CCI) is the statutory body responsible for preventing practices that have an adverse effect on competition in India. It enforces the Competition Act, 2002 and works to promote fair competition, protect consumer interests and ensure freedom of trade in markets. It is a quasi-judicial authority and the correct choice among the given options. The consumer forums and the Central Vigilance Commission do not perform this competition-regulation function.

Notes:
Stamp duty on promissory notes is a Union levy under the Indian Stamp Act, but the revenue is assigned to the States. In constitutional terms, the Union imposes the duty, while the States collect and retain the proceeds under Article 268. This makes the proceeds a State revenue item, even though the taxing power for these instruments is not exercised by the States themselves.

Notes:
The Reserve Bank of India (RBI) has two currency printing presses in India:  Mysore, Karnataka and Salboni, West Bengal.
The RBI’s presses are owned by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a subsidiary of the Reserve Bank. The other two currency presses in India are owned by the government and are located in Nasik and Dewas.

Notes:
The Reverse Mortgage Scheme in India was launched in 2007. The scheme targets senior citizens aged 60 years and above as beneficiaries. Joint borrowers may apply if at least one applicant is aged 60 years and the other not below 55 years. The scheme allows senior homeowners to mortgage property for regular payments from lenders. Ownership remains with the borrower during the loan tenure.

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A debenture is a long-term debt instrument used by corporations and governments to raise capital, typically with a maturity of more than one year. In contrast, money market instruments, such as Cash Management Bills, Certificates of Deposit, and Commercial Papers, are short-term financial instruments with maturities of one year or less. Money market instruments are characterized by high liquidity and low risk, while debentures are considered capital market instruments.

Notes:
The World Bank projects 2026 MENA growth to strengthen to 3.6% due to oil exporters’ growth and resilient non-oil activity. GCC economies are implementing economic diversification strategies. The UAE and Saudi Arabia prioritize AI and data center sectors in their Vision 2030 plans. Consumer packaged goods are projected to reach $650 billion by 2030 with 5% annual growth. Economic diversification and AI development are significant drivers.

Notes:
The Engine Division of Hindustan Aeronautics Limited at Sunabeda, near Koraput, Odisha, was established in 1964. It manufactures engines for MiG fighter aircraft, including R11, R25, R29B, and RD-33 series. Since 2007, the facility has produced RD-33 engines for MiG-29 aircraft under license from Russia. Over 1,300 engines have been manufactured at this division.

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India accounts for about 60% of global mica production. Major mica mines are located in Andhra Pradesh, Rajasthan, and Jharkhand. India exported $38.2 million worth of mica in 2024, ranking second globally after China. Vast high-quality mica reserves contribute to India’s leading role in the mica market worldwide.