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. Which feature distinguished the Eighth Five-Year Plan (1992-97) from earlier plans? (UPSC Prelims 1996)
[A] It marked the first plan after India’s 1991 economic reforms
[B] It achieved the highest actual growth rate of 6.8%
[C] It introduced industrial delicensing and opening of economy
[D] It targeted creation of 80 million employment opportunities
Show Answer
Correct Answer: A [It marked the first plan after India’s 1991 economic reforms]
Notes:
The Eighth Five-Year Plan (1992-1997) was the first plan implemented after India introduced economic reforms in 1991. The plan focused on indicative planning, market-led economy, liberalization, privatization, and globalization. India’s membership in the World Trade Organization began in January 1995 during this plan. Previous plans were based on centralized state control and public sector dominance.
12. Which among the following is a feature of Socialist form of Economy?
[A] It is based on the demand and supply of market
[B] Competition exist in the market
[C] Private property is encouraged
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
The socialist form of economy is not based on market forces and competition doesn’t exist in the market. The state owns the factors of production and private property is not encouraged.
13. Which sector comprises of the activities like exploitation of natural resources?
[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised
Show Answer
Correct Answer: C [Primary]
Notes:
The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.
14. The transformation of goods from the primary sector into economic goods is known as?
[A] Input
[B] Production
[C] Output
[D] Efficiency
Show Answer
Correct Answer: B [Production]
Notes:
The transformation of raw material into a useful economic good is known as production. It is part of the secondary sector.
15. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
16. In which years were annual plans first implemented in India?
[A] 1966 to 1969
[B] 1971 to 1975
[C] 1988 to 1991
[D] 1969 to 1972
Show Answer
Correct Answer: A [1966 to 1969]
Notes:
India introduced annual plans during the Plan Holiday period from 1966 to 1969. The government opted for three consecutive annual plans in 1966–67, 1967–68, and 1968–69 after the failure of the Third Five-Year Plan. The annual plans bridged the gap until the Fourth Five-Year Plan began in 1969.
17. Which Five-year plan introduced the state secondary education boards?
[A] 5th
[B] 3rd
[C] 2nd
[D] 4th
Show Answer
Correct Answer: B [3rd]
Notes:
During the second five-year plan State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed, and local road building became a state responsibility.
18. Which Indian law bans the usage of GM seeds without approval?
[A] Seeds Act, 1966
[B] Seeds Rules, 1968
[C] Environmental Protection Act, 1986
[D] Environmental Protection Act, 2000
Show Answer
Correct Answer: C [Environmental Protection Act, 1986]
Notes:
Under the Environmental Protection Act,1986 GM seeds cannot be used without approval. Violation of this can result in a 5-year jail term or fine up to 1 lakh rupees.
19. What is relay cropping in agricultural practices?
[A] Second crop grown after the first is harvested
[B] Second crop planted into established crop after its reproductive stage
[C] Second crop grown in the next growing season
[D] Second crop grown in a separate field
Show Answer
Correct Answer: B [Second crop planted into established crop after its reproductive stage]
Notes:
Relay cropping involves sowing a second crop into an existing standing crop after the first crop’s reproductive stage but before its harvest. This system allows overlapping growth periods within the same field. Relay cropping increases land use efficiency and was first systematically described in the 20th century. It is practiced with crops like wheat and soybean, especially in regions with short growing seasons.
20. Which vegetable oil is most imported by India in 2025-26?
[A] Sunflower
[B] Palm
[C] Soybean
[D] None of the above
Show Answer
Correct Answer: B [Palm]
Notes:
In 2025-26, India is projected to import 8-8.5 million tonnes of palm oil. Total edible oil imports are expected at 16.7 million tonnes. Indonesia and Malaysia are primary suppliers of palm oil to India. In November 2025-January 2026, India imported 1.91 million tonnes of palm oil. Palm oil leads over soybean and sunflower oils in import volume.
