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 tax contributes most to India's central revenue in Budget 2026-27 estimates?
[A] Goods and Services Tax (GST)
[B] Income Tax
[C] Customs Duty
[D] Corporate Tax
Show Answer
Correct Answer: B [Income Tax]
Notes:
In the Union Budget 2026-27, taxes on income are estimated at ₹14.56 lakh crore, which is higher than corporate tax at ₹12.31 lakh crore and GST at ₹10.19 lakh crore. Customs duty is much lower at ₹2.71 lakh crore. Hence, income tax remains the biggest single contributor among these central tax heads. This makes option 2 the correct answer.
12. Where is the headquarters of the United Nations World Tourism Organization (UNWTO) located?
[A] Paris
[B] Madrid
[C] New York
[D] Geneva
Show Answer
Correct Answer: B [Madrid]
Notes:
The World Tourism Organization (UNWTO) is the United Nations agency responsible for the promotion of sustainable and universally accessible tourism. Its headquarters is located at Madrid, Spain.
13. What restricts the spending of a person in a market?
[A] Marginal Utility
[B] Purchasing power
[C] Demand curve
[D] None of the above
Show Answer
Correct Answer: B [Purchasing power]
Notes:
The purchasing power of a person is the reason for his limited spending. He has budget constraints which inturn affect the market as a whole. The budget constraint is used to analyze consumers choices.
14. Which Economist highlighted ethical consideration behind his economic thinking?
[A] Francis Fukuyama
[B] Abhijit Banerjee
[C] Amartya Sen
[D] Friedrich Hayek
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen is an Indian economist, who has worked internationally, highlighting ethical considerations behind his economic thinking. Sen has contributed greatly to welfare economics, arguing for instance that famines arise due to a lack of income, not food.
15. Which among the following economic systems doesn’t have profit-making as motive?
- Socialist
- Market
- Mixed
- Traditional
Choose the correct option from the choices given below:
[A] 1 and 2
[B] 2 and 3
[C] 3 and 4
[D] 1 and 4
Show Answer
Correct Answer: D [1 and 4]
Notes:
Profit making is not the motto of the Socialist as well as the Traditional economic system. In mixed as it has a capitalist element in it, profit-making becomes one of its motives like that of market/capitalist economy.
16. 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.
17. Who is not a member of the NITI Aayog Governing Council?
[A] Chief Ministers of Delhi and Puducherry
[B] Governors of States
[C] All Chief Ministers of the states
[D] Lieutenant Governors of Union Territories
Show Answer
Correct Answer: B [Governors of States]
Notes:
The Governing Council of NITI Aayog includes all Chief Ministers of States, Chief Ministers of Delhi and Puducherry, and Lieutenant Governors of Union Territories. Governors of States are not part of the NITI Aayog Governing Council. The NITI Aayog was established on 1 January 2015. The Prime Minister of India chairs the Governing Council.
18. Which country exports the most palm oil to India?
[A] Malaysia
[B] Indonesia
[C] Thailand
[D] Papua New Guinea
Show Answer
Correct Answer: B [Indonesia]
Notes:
Indonesia exported approximately 4.86 billion worth of palm oil to India in 2023. Indonesia accounted for about 59% of India’s total palm oil imports that year. Malaysia was the second-largest supplier at 2.63 billion, representing 32%. Thailand supplied 784 million and Papua New Guinea 265 million worth of palm oil to India in 2023.
19. The Yellow Revolution in India targeted increased production of which commodity?
[A] Pulses and cereals
[B] Edible oilseeds
[C] Dairy products
[D] Spices and condiments
Show Answer
Correct Answer: B [Edible oilseeds]
Notes:
The Yellow Revolution launched in 1986-1987 aimed at expanding edible oilseeds production in India. The Technology Mission on Oilseeds targeted crops such as mustard, groundnut, soybean, sunflower, safflower, sesame, linseed, castor, and niger. Oilseed production in India doubled from 12 million tonnes in 1986 to about 24 million tonnes by the mid-1990s through this initiative.
20. What is the value of India’s horticultural exports as of FY25?
[A] USD 5 billion
[B] USD 2.33 billion
[C] USD 3.5 billion
[D] USD 7 billion
Show Answer
Correct Answer: A [USD 5 billion]
Notes:
India’s horticultural exports surpassed USD 5 billion in FY25. Floriculture exports reached Rs 2,000 crore (USD 233.37 million) in the same period. India’s horticultural output totals over 355 million metric tonnes annually, ranking second globally. Fresh fruits and vegetables constitute the fastest-growing segment, with a projected CAGR of 7.42% through 2031. Exports include fruits, vegetables, and floriculture products.
