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. Consider the following pairs of Employment and Livelihood Schemes and their Nodal Ministries:
| Scheme |
Nodal Ministry |
| 1. PM Employment Generation Programme (PMEGP) |
Ministry of Micro, Small and Medium Enterprises |
| 2. PM Kaushal Vikas Yojana (PMKVY) |
Ministry of Labour and Employment |
| 3. Deendayal Antyodaya Yojana – NULM |
Ministry of Housing and Urban Affairs |
Select the correct option from the codes given below:
[A] 1 and 2 only
[B] 1 and 3 only
[C] 2 and 3 only
[D] 1, 2 and 3
Show Answer
Correct Answer: B [1 and 3 only]
Notes:
Pair 1 is correctly matched: PMEGP is a credit-linked subsidy scheme implemented by the Khadi and Village Industries Commission (KVIC) under the Ministry of Micro, Small and Medium Enterprises (MoMSME) to generate self-employment via micro-enterprises. Pair 2 is incorrectly matched: Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship skill certification scheme implemented by the Ministry of Skill Development and Entrepreneurship (MSDE), not the Ministry of Labour and Employment. Pair 3 is correctly matched: DAY-NULM aims to reduce poverty and vulnerability of urban poor households by enabling self-employment and skilled wage employment opportunities, managed by the Ministry of Housing and Urban Affairs.
2. In which year India launched Targeted Public Distribution System ?
[A] 1995
[B] 1996
[C] 1997
[D] 1998
Show Answer
Correct Answer: C [1997]
Notes:
The Targeted Public Distribution System (TPDS) replaced the erstwhile PDS from June 1997. Under the new system a two tier subsidized pricing system was introduced to benefit the poor.
3. Which among the following phrases generally denotes National Income?
[A] Gross National Product at Market Prices
[B] Net National Product at Market Prices
[C] Gross National Product at Factor Cost
[D] Net National Product at Factor Cost
Show Answer
Correct Answer: D [Net National Product at Factor Cost]
Notes:
Net National Product at Factor Cost generally denotes National Income.
4. Which of the following is not a core principle of progressive taxation?
[A] Ability to pay
[B] Equity and redistribution
[C] Vertical fairness
[D] Administrative convenience
Show Answer
Correct Answer: D [Administrative convenience]
Notes:
Progressive taxation is designed around the ability-to-pay principle, where taxpayers with higher incomes contribute at higher rates. Its main goals include equity, vertical fairness, and redistribution of income toward a more balanced tax burden. Administrative convenience is a useful feature of any tax system, but it is not considered a core principle of progressive taxation itself. Therefore, the correct answer is administrative convenience.
5. What is India's commitment on the number of new branches that foreign banks may open in a year under WTO GATS, and what is the corresponding branch commitment in the India–EU FTA?
[A] 12 branches per year under WTO GATS; 15 branches over four years under the India–EU FTA
[B] 15 branches per year under WTO GATS; 12 branches over four years under the India–EU FTA
[C] 12 branches per year under WTO GATS; 20 branches over four years under the India–EU FTA
[D] 20 branches per year under WTO GATS; 15 branches per year under the India–EU FTA
Show Answer
Correct Answer: A [12 branches per year under WTO GATS; 15 branches over four years under the India–EU FTA]
Notes:
India’s WTO commitment under GATS limits market access for foreign bank branches to 12 branches in a year for all foreign banks taken together. In the India–EU FTA financial services offer, the branch licensing framework is more liberal and allows up to 15 bank branches to be established over a four-year period. The two figures apply to different trade arrangements, so they should not be read as the same annual cap.
6. A transfer payment is a payment that is __:
[A] made by the government to its current workers
[B] made to people who are needy
[C] For in-kind services provided to the government
[D] For which no services or goods are rendered
Show Answer
Correct Answer: D [ For which no services or goods are rendered ]
Notes:
Transfer Payment is the payment exchanged for return of no goods or services. It generally describes the welfare expenditure of the government such as subsidies, pensions, grants etc.
7. World Economic Outlook is a survey conducted and published by the________?
[A] World Economic Forum
[B] World Bank
[C] World Trade Organization
[D] International Monetary Fund
Show Answer
Correct Answer: D [ International Monetary Fund ]
Notes:
World Economic Outlook is a survey conducted and published by the International Monetary Fund.
8. With reference to various types of Banking, what is “Mixed Banking”?
[A] when banks undertake the activities of commercial and investment banking together
[B] when banks undertake the activities of wholesale and retail banking together
[C] when banks undertake the activities of offline and online banking together
[D] when banks undertake the activities of commercial and cooperative banking together
Show Answer
Correct Answer: A [when banks undertake the activities of commercial and investment banking together]
Notes:Mixed Banking is the system in which banks undertake activities of commercial and investment banking together.
- These banks give short-term and long-term loans to industrial concerns.
- The banks appoint experts which give valuable advice on various financial issues and also help gauge the financial health of companies.
- Industries don’t have to run to different places for differential financial needs.
- They thus promote rapid industrialization.
- They may however pose a grave threat to liquidity of a bank and lead to bad debts.
9. Which is India’s first shore-based integrated steel plant?
[A] Durgapur Steel Plant
[B] Salem Steel Plant
[C] Bhadravati Steel Plant
[D] Visakhapatnam Steel Plant
Show Answer
Correct Answer: D [Visakhapatnam Steel Plant]
Notes:
Visakhapatnam Steel Plant is India’s first shore-based integrated steel plant. It is also known as Rashtriya Ispat Nigam Limited (RINL). The project was sanctioned in 1982, while the plant was commissioned in phases during the early 1990s. Located at Visakhapatnam in Andhra Pradesh, it was developed with foreign technological assistance and became a major steel production unit on India’s eastern coast.
10. First Five-Year Plan laid stress on which of the following sectors? (UPSC Prelims 1982)
[A] Agriculture
[B] Industry
[C] Power
[D] Uplifting of poor people
Show Answer
Correct Answer: A [Agriculture]
Notes:
The first Indian Prime Minister presented the First Five-Year Plan to the Parliament of India. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector i.e. agriculture.
