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.
11. Who among the following was the first woman to head an Indian public sector bank?
[A] Shikha Sharma
[B] Chanda Kochar
[C] Arundhati Bhattacharya
[D] Ranjana Kumar
Show Answer
Correct Answer: D [Ranjana Kumar]
Notes:
Ranjana Kumar became the first woman to head an Indian public sector bank when she was appointed Chairman and Managing Director of Indian Bank. This made her a notable first in the history of public sector banking in India. Arundhati Bhattacharya is also a landmark figure, but she is known as the first woman Chairperson of State Bank of India, not the first woman to head any public sector bank. Hence, the correct answer is Ranjana Kumar.
12. In which type of remittances, money is transferred from one country to another?
[A] Foreign Remittance
[B] Digital Remittance
[C] Blockchain Remittance
[D] None of the above
Show Answer
Correct Answer: A [Foreign Remittance]
Notes:
In banking terminology, remittance means transfer of fund one place to another. When money transferred from one country to another, this is called Foreign Remittance.
13. Who typically benefits from a general rise in prices? (UPSC Prelims 1984)
[A] Debtors with fixed-rate debt
[B] Pensioners on fixed incomes
[C] Savers holding cash
[D] Creditors holding nominal debt
Show Answer
Correct Answer: A [Debtors with fixed-rate debt]
Notes:
Unexpected inflation reduces the purchasing power of a fixed nominal repayment and can benefit a debtor with fixed-rate debt at the creditor’s expense. This concerns the real debt burden; actual benefit also depends on income and other circumstances.
14. The agricultural negotiations of the Uruguay Round were primarily concerned with which of the following? (UPSC Prelims 1990)
[A] The debt burden of developing countries.
[B] Restrictions on flexible exchange rate systems.
[C] Restrictions on fishing rights on the high seas.
[D] Barriers to market access, domestic support, and export subsidies in agriculture.
Show Answer
Correct Answer: D [Barriers to market access, domestic support, and export subsidies in agriculture.]
Notes:
The Uruguay Round’s agricultural negotiations addressed market access, domestic support and export competition. The overall Round was broader and also covered goods, services and intellectual property; it led to the creation of the WTO.
15. Which one of the following statements regarding the levying, collecting and distribution of non-agricultural income tax is correct? (UPSC Prelims 1999)
[A] The Union levies, collects and distributes the proceeds of income-tax between itself and the States
[B] The Union levies, collects and keeps all the proceeds of income-tax to itself
[C] The Union levies and collects the tax but all the proceeds are distributed among the States
[D] Only the surcharge levied on income-tax is shared between the Union and the States
Show Answer
Correct Answer: A [The Union levies, collects and distributes the proceeds of income-tax between itself and the States]
Notes:
Non-agricultural income tax is levied and collected by the Union. Its divisible net proceeds are shared with States under Article 270 and the applicable Finance Commission arrangements. Union surcharges and specified cesses are excluded from the divisible pool; agricultural income tax is a State subject.
16. Which factor limits tourism growth in India despite its vast attractions?
[A] Distances between attractions are too large
[B] India is too hot for tourists
[C] Picturesque resorts are inaccessible
[D] Tourism infrastructure is inadequate
Show Answer
Correct Answer: D [Tourism infrastructure is inadequate]
Notes:
The Ministry of Tourism recognizes infrastructure inadequacy as a major barrier to tourist arrivals. India’s tourist accommodation density and quality lag behind global averages. Major cities and remote tourist destinations face deficits in hotels, transportation, and sanitation. Government schemes like Swadesh Darshan and PRASHAD launched in 2014 and 2015 target these infrastructural gaps. Despite natural and cultural attractions, visitor growth remains below international benchmarks due to these limitations.
17. What is the formula for GDP Deflater?
[A] Nominal GDP + Real GDP
[B] Nominal GDP – (minus) Real GDP
[C] Real GDP/ Nominal GDP
[D] Nominal GDP/ Real GDP
Show Answer
Correct Answer: D [Nominal GDP/ Real GDP]
Notes:
The GDP deflator measures price inflation in an economy.It measures the changes in prices for all of the goods and services produced in an economy. The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100.
18. Which of the following are part of the Quaternary sector?
[A] Banking
[B] Agriculture
[C] Restaurant
[D] Information technology
Show Answer
Correct Answer: D [Information technology]
Notes:
The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.
19. Who approves the commercial cultivation of GM crops in India?
[A] Ministry of Environment, Forest and Climate Change
[B] Ministry of Agriculture
[C] Indian Council of Agricultural Research
[D] None of the above
Show Answer
Correct Answer: A [Ministry of Environment, Forest and Climate Change]
Notes:
In India, approvals for GM crops for environmental release and commercial cultivation are handled through the Genetic Engineering Appraisal Committee (GEAC) under the Ministry of Environment, Forest and Climate Change. The Ministry of Agriculture and ICAR are involved in agricultural research and policy, but they do not give the final approval for cultivation.
20. What is the textile industry’s contribution to India’s GDP as of 2026?
[A] 1.5%
[B] 2.3%
[C] 4.5%
[D] 5.8%
Show Answer
Correct Answer: B [2.3%]
Notes:
The textile and apparel sector contributes about 2.3% to India’s GDP in 2026. The sector accounts for around 13% of industrial production. It represents approximately 8.63% of India’s total exports. The textile industry provides employment to over 45 million people directly. The estimated market size of the Indian textile industry is USD 179 billion. The sector is the second-largest employer after agriculture.
