Indian Economy MCQs

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BOLT stands for Build, Own, Lease, Transfer. In this model, a private entity constructs and owns the infrastructure facility, leases it to a government or public sector agency for an agreed period, and afterward transfers ownership to the public authority. The model was adopted to attract private investment in public infrastructure in India from the 1990s and is used in sectors like transportation and power.

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please note bank functions as an agent or agency when it buys or sells securities on behalf of the customer or collects and makes payment on behalf of the customer

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The financial year of India begins from April 1 of a calendar year and ends on March 31 of the next calendar year. This system has been into existence since the British Raj in India. Hence, Banks in India publish their financial statements / balance sheets for March 31st of every year.

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The Commission for Agricultural Costs and Prices (CACP) was established in 1965. CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. CACP annually recommends Minimum Support Prices for 23 agricultural commodities. The recommendations consider cost of production, market price trends, and inter-crop price parity. Government decides final MSPs based on CACP’s advice.

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The Balance of Payments (BOP) crisis struck India in 1991. This triggered an economic crisis due to escalating oil prices, inflation and low foreign exchange reserves, which beleaguered India’s ability of import payments. Repercussions included severe rupee devaluation. The crisis incited economic liberalization, lowering of import tariffs and eased foreign exchange restrictions. With help from International Monetary Fund and other organizations, India managed to stabilize its situation, highlighting the necessity for constant economic overhauls to sustain financial equilibrium.

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A wage-price spiral occurs when rising wages increase production costs leading to higher prices, which then prompt further wage demands. This describes cost-push inflation. Cost-push inflation is driven by increased costs of inputs such as wages and raw materials. During the 1970s, wage-price spirals contributed to persistent inflation in many developed countries due to frequent labor market adjustments and price hikes.

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The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.

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The correct answer is “Elimination of primary deficit.” The Fiscal Responsibility and Budget Management (FRBM) Act of 2003 aimed to ensure fiscal discipline in India by targeting the elimination of revenue deficits and limiting government borrowing. However, it did not explicitly mandate the elimination of the primary deficit, which is the fiscal deficit excluding interest payments. The Act focuses on sustainable fiscal management rather than eliminating all forms of deficits.

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Visakhapatnam Port handled 2.19 billion or 29.72% of India’s seafood exports in FY24. In FY25, Visakhapatnam’s seafood export value exceeded 2 billion out of India’s total 7.45 billion. The port exported 314,199 tonnes, while JNPT exported 240,253 tonnes valued at 779.49 million. Andhra Pradesh’s aquaculture, mainly Vanammei shrimp, supports Visakhapatnam’s status as the top exporter.

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The Chit Funds Act, 1982 is a central law governing chit funds in India. Regulation, registration, and licensing are administered by the state governments. Each state appoints a Registrar of Chits to oversee chit fund activities. Central government sets the legislative framework, but daily regulation and enforcement are delegated to the respective states as per the Act.