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. Per Capita Income of a country is obtained by dividing National Income by which of the following?
[A] Total working population
[B] Total population of the country
[C] Area of the country
[D] Volume of the capital used
Show Answer
Correct Answer: B [ Total population of the country ]
Notes:
Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area’s total income by its total population.
12. 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.
13. Which industry has expanded most in India’s cooperative sector recently? (UPSC Prelims 1991)
[A] Cotton textile
[B] Jute
[C] Sugar
[D] Cement
Show Answer
Correct Answer: C [Sugar]
Notes:
As of 2024, the sugar industry is the largest in India’s cooperative sector. Nearly 50% of sugar mills in India operate under cooperative societies, especially in Maharashtra. Production increased significantly in recent years due to government support, favorable policies, and ethanol blending programs. Maharashtra and Uttar Pradesh contribute the majority of cooperative sugar factories. Cooperative expansion continued through 2023-24.
14. The Government fixes Minimum support price(MSP) for agricultural goods on the basis of recommendation of which of the following?
[A] Commission for Agricultural Costs and Prices
[B] NITI Aayog
[C] Finance Ministry
[D] Agriculture Ministry
Show Answer
Correct Answer: A [Commission for Agricultural Costs and Prices]
Notes:
The minimum support price is announced by the government of India on the recommendation of the Commission for agricultural costs and prices at the beginning of the sowing season for certain crops.
15. When does the state government declare agricultural drought in an area?
[A] Rainfall less than normal by 10%
[B] Rainfall less than normal by 5%
[C] More than 20% state facing drought
[D] None of the above
Show Answer
Correct Answer: C [More than 20% state facing drought]
Notes:
Declaration of droughts is done by the States. Meteorological drought and agricultural drought are 2 kinds.
Meteorological drought is when rainfall is 10% or more, less than normal. Agricultural drought is when 20% or more area of a state is facing drought.
16. Which of the following factors determine the cropping pattern?
- Rainfall
- Climate
- Temperature
- Soil type
Select the correct option from the codes given below:
[A] 1, 2 and 4 only
[B] 1, 2 and 3 only
[C] 2, 3 and 4 only
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: D [1, 2, 3 and 4]
Notes:
Cropping pattern is mainly determined by rainfall, climate, temperature, and soil type, as these directly influence the suitability and yield of crops in a region. All four factors interact to decide which crops can be grown where, making each one essential for determining cropping patterns in agriculture.
17. Which farming method uses alternating strips of crops to prevent soil erosion?
[A] Row cropping
[B] Intercropping
[C] Strip cropping
[D] Relay cropping
Show Answer
Correct Answer: C [Strip cropping]
Notes:
Strip cropping involves planting crops in alternating strips along the contours of land. This method reduces soil erosion by establishing barriers that slow water flow and trap sediment. The practice is used on sloped land and with crops like wheat, hay, and corn. Strip cropping helps decrease soil loss by 65 to 75 percent compared to open field planting. It stabilizes soil and improves water infiltration.
18. Which crop accounts for the largest share of oilseed production in India?
[A] Mustard
[B] Groundnut
[C] Soybean
[D] Rapeseed
Show Answer
Correct Answer: C [Soybean]
Notes:
Soybean is the leading oilseed crop in India by production volume. It contributes the largest share among major oilseeds, ahead of rapeseed-mustard and groundnut. The crop is widely grown in states such as Madhya Pradesh, Maharashtra, and Rajasthan.
19. Which city is known as the Grape and Wine Capital of India?
[A] Nashik
[B] Ahmednagar
[C] Satara
[D] Sangli
Show Answer
Correct Answer: A [Nashik]
Notes:
Nashik is located in Maharashtra. Nashik is recognized for having around 52 wineries. It has approximately 1.75 lakh hectares under grape cultivation. Nashik produces about 10 lakh metric tonnes of grapes yearly. Nashik grapes achieved Geographical Indication status. The city exports nearly 55% of India’s grapes, with a significant share of Maharashtra’s wine production centered there.
20. Which country is the top importer of Indian eggs in 2023?
[A] Oman
[B] Maldives
[C] Sri Lanka
[D] Qatar
Show Answer
Correct Answer: A [Oman]
Notes:
Oman imported Indian eggs worth 28.60 million in 2023, making it the largest destination for Indian egg exports. Maldives and Sri Lanka each imported 14.70 million, while Qatar imported $8.69 million. Oman has consistently led Indian egg imports by value in recent years. Egg exports mainly consist of shell eggs rather than poultry meat, which forms a much smaller export segment.
