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. India’s Foreign Trade Policy also known as Export Import Policy (EXIM) is framed and implemented by the:
[A] Director General of Foreign Trade (DGFT)
[B] Home Ministry
[C] Niti Aayog
[D] Finance commission
Show Answer
Correct Answer: A [ Director General of Foreign Trade (DGFT) ]
Notes:
The Director General of Foreign Trade is responsible for implementing the India’s Foreign Trade Policy.
12. Which industries mainly benefit from Mumbai Port in Maharashtra?
[A] Iron and Steel industry
[B] Sugar and Cotton textile industry
[C] Cotton textile and Petrochemical industry
[D] Engineering and Fertilizer industry
Show Answer
Correct Answer: C [Cotton textile and Petrochemical industry]
Notes:
Mumbai Port in Maharashtra is a major center for handling cotton, petroleum, oil, and petrochemical shipments. It serves as a key import point for long staple cotton and machinery for the cotton textile sector. The port’s specialized terminals handle large volumes of petrochemical products. Cotton textile and petrochemical industries have longstanding reliance on Mumbai Port for raw material and export requirements.
13. What is the main goal of Antyodaya Anna Yojana (AAY) scheme?
[A] Provide employment to urban workers
[B] Ensure food security for the poorest
[C] Subsidize inputs for marginal farmers
[D] Distribute cash to BPL households
Show Answer
Correct Answer: B [Ensure food security for the poorest]
Notes:
The Antyodaya Anna Yojana was launched in December 2000 by the Government of India. Its objective is to provide food security to the poorest of the poor identified under the Targeted Public Distribution System. Eligible families receive 35 kg of food grains per month at highly subsidized prices—rice at ₹3/kg and wheat at ₹2/kg. This scheme operates nationwide.
14. ‘Terms of trade’ between agriculture and industry has reference to? (UPSC Prelims 1992)
[A] Relative price movements between the two sectors
[B] Relative quantities of production in the two sectors
[C] The extent of trade existent between the two sectors
[D] Relative international valuation of the agricultural produce in contrast to the industrial produce
Show Answer
Correct Answer: D [Relative international valuation of the agricultural produce in contrast to the industrial produce]
Notes:
Terms of trade between agriculture and industry can be thought of as the ratio of prices of agricultural products to that of prices of industrial products. This is analogous to International Terms of Trade that are given by the formula: (Price of exports)/ (price of imports).
15. Which economist is credited for developing theories based on Gandhism?
[A] Jagadish Bhagwati
[B] P.C.Mehalonibis
[C] J.C.Kumarappa
[D] Kaushik Basu
Show Answer
Correct Answer: C [J.C.Kumarappa]
Notes:
J.C.Kumarappa was an Indian economist and a close associate of Gandhiji. A pioneer of rural economic development theories, Kumarappa is credited for developing economic theories based on Gandhism– a school of economic thought he coined “Gandhian Economics”.
16. The classification of Sectors in an economy into the public and privates sector is on the basis of which of the following?
[A] On the basis of activity
[B] On the basis of work condition
[C] On the basis of Ownership
[D] None of the above
Show Answer
Correct Answer: C [On the basis of Ownership]
Notes:
On the basis of ownership, the economy is divided into public and private sectors. The public sector is owned by the government whereas the private sector is owned by Private individuals.
17. In which year, Goods & Services Tax was introduced in India?
[A] 2017
[B] 2016
[C] 2018
[D] 2019
Show Answer
Correct Answer: A [2017]
Notes:
Goods and Services Tax was launched on July 1, 2017. It is an indirect tax used in India on the supply of goods and services.
18. Which among the following is not a benefit of neem coated urea?
[A] Slow down the process of nitrogen release
[B] Enhance the yield
[C] Increase urea requirement
[D] Reduce fertilizer cost
Show Answer
Correct Answer: C [Increase urea requirement]
Notes:
Coating urea with neem oil is neem coated urea. It has various benefits like slowing down the process of nitrogen release, enhance the yield, reduce urea requirement so the cost of fertilizer is reduced.
19. Which of these is not a plantation crop?
[A] Tea
[B] Rubber
[C] Coffee
[D] Wheat
Show Answer
Correct Answer: D [Wheat]
Notes:
Wheat is an annual cereal crop mainly cultivated in temperate regions. Wheat is grown in rabi season in India and harvested during March–April. Wheat requires well-drained loamy soil and a cool growing season. India is the second-largest producer of wheat globally. Wheat is not considered a plantation crop, which typically includes tea, rubber, and coffee.
20. Which Indian state has the longest coastline?
[A] Andhra Pradesh
[B] Maharashtra
[C] Gujarat
[D] Tamil Nadu
Show Answer
Correct Answer: C [Gujarat]
Notes:
Gujarat’s coastline measures 2,340.62 km according to revised Indian government figures released in 2023. This makes Gujarat the Indian state with the longest coastline. These measurements utilize advanced satellite imagery and updated calculation methods. Earlier estimates listed the state’s coastline as 1,600 km, but the new data reflects more comprehensive inclusion of coastal features and complex boundaries.
