Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.
1. The Core inflation is different from the general inflation because of the following?
[A] Core Inflation is caused by the supply Shock in certain essential commodities
[B] Core Inflation is the sudden increase in certain items of food grains
[C] Core Inflation is the inflation rate of a particular basket of commodities
[D] Core Inflation is just a misnomer
Show Answer
Correct Answer: C [Core Inflation is the inflation rate of a particular basket of commodities]
Notes:
Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.
2. Which among the following is First Indian Special Economic Zone(SEZ)?
[A] Visakhapatnam SEZ
[B] Kandla SEZ
[C] Noida Special Economic Zone
[D] Cochin SEZ
Show Answer
Correct Answer: B [Kandla SEZ]
Notes:
The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.
3. The targets from fifth five year plan were set with respect to which of the following parameters?
[A] National Income
[B] Net Domestic Product
[C] Gross Domestic Product at Factor Cost
[D] Gross Domestic Product at Market Cost
Show Answer
Correct Answer: C [Gross Domestic Product at Factor Cost]
Notes:
Targets for the first three plans were set with respect to National Income. Fourth Plan it was Net Domestic Product. In all Plans thereafter it has been Gross Domestic Product at factor cost.
4. What typically happens when economic growth exceeds its potential rate?
[A] Only demand creates inflationary pressure
[B] Only wage rises cause inflation
[C] Only input costs increase due to growth
[D] All of the above factors contribute
Show Answer
Correct Answer: D [All of the above factors contribute]
Notes:
When economic growth surpasses its potential rate, inflation arises from interconnected mechanisms, including demand exceeding supply, labor market tightening causing wage increases, and cost-push pressures such as rising input costs. These channels simultaneously contribute to overall inflation in the economy.
5. Which term refers to the maximum capital a company can raise in its lifetime?
[A] Authorized Capital
[B] Registered Capital
[C] Nominal Capital
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Authorized capital is the maximum share capital stated in a company’s Memorandum of Association. Registered capital and nominal capital are alternate terms for authorized capital. This ceiling cannot be exceeded without shareholder approval and modification in company documents as per the Companies Act, 2013.
6. Which port exports the highest value of seafood from India?
[A] Visakhapatnam
[B] Tuticorin
[C] Kochi
[D] Jawaharlal Nehru Port Authority (JNPT)
Show Answer
Correct Answer: A [Visakhapatnam]
Notes:
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.
7. Which option defines ‘shares outstanding’ most accurately?
[A] Total shares authorized minus never issued shares
[B] Total issued shares minus treasury shares
[C] Shares held only by institutional investors and insiders
[D] All authorized shares sold to investors
Show Answer
Correct Answer: B [Total issued shares minus treasury shares]
Notes:
Shares outstanding equals total issued shares minus treasury shares. Treasury shares are shares repurchased by the company and held in its treasury. Shares outstanding are used in calculating market capitalization and earnings per share. Only shares held by external shareholders are considered outstanding. This figure changes when the company buys back or issues new shares.
8. How has the World Bank classified India’s economy in its FY2027 income classification?
[A] Low-income economy
[B] High-income economy
[C] Upper-middle-income economy
[D] Lower-middle-income economy
Show Answer
Correct Answer: D [Lower-middle-income economy]
Notes:
The World Bank classifies countries by gross national income (GNI) per capita using income bands updated each year. In the FY2027 classification, India continues to fall in the lower-middle-income category. This means India’s GNI per capita is above the low-income threshold but below the upper-middle-income threshold. Hence, among the given options, the correct classification is lower-middle-income economy.
9. Which institution currently owns National Housing Bank?
[A] RBI
[B] Ministry of Finance
[C] Government of India
[D] SEBI
Show Answer
Correct Answer: C [Government of India]
Notes:
The National Housing Bank was established in 1988 under the National Housing Bank Act, 1987. It was initially a subsidiary of the Reserve Bank of India. In March 2019, RBI transferred its entire stake to the Government of India. NHB operates under the Ministry of Finance. NHB’s head office is located in New Delhi.
10. At which HAL facility are MiG aircraft engines assembled and manufactured?
[A] Engine Division at Koraput, Odisha
[B] Engine Division at Bangalore, Karnataka
[C] Sukhoi Engine Division at Koraput, Odisha
[D] Nasik Airframe Factory, Maharashtra
Show Answer
Correct Answer: A [Engine Division at Koraput, Odisha]
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.
