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. What is the main aim of India’s 2023 Foreign Trade Policy?
[A] Export promotion and import substitution only
[B] Export promotion, import regulation, and $2 trillion exports by 2030
[C] Import-oriented manufacturing and domestic consumption
[D] None of the above
Show Answer
Correct Answer: B [Export promotion, import regulation, and $2 trillion exports by 2030]
Notes:
India’s Foreign Trade Policy 2023 targets $2 trillion in exports by 2030. The policy emphasizes export promotion, import regulation, sectoral diversification, digitization, and improved infrastructure. Key initiatives include RoDTEP, PM Gati Shakti, and Bharat Trade Net. The policy aims to boost MSME contribution, encourage e-commerce, align with global standards, and promote ease of doing business.
12. Which trade agreement has India finalized with the European Union recently? (UPSC Prelims 1984)
[A] Rupee trade
[B] Free Trade Agreement (FTA)
[C] Barter trade
[D] Unilateral trade
Show Answer
Correct Answer: B [Free Trade Agreement (FTA)]
Notes:
India and the European Union concluded a Free Trade Agreement in 2024. The agreement includes gradual reduction of tariffs and covers approximately 33 billion of Indian exports. The FTA provides deeper access to 144 EU services sub-sectors. The EU is India’s largest trading partner, with bilateral trade reaching 136 billion in 2024-25. The EU represents around 25% of global GDP.
13. Why was crude oil exported from India in 1985? (UPSC Prelims 1987)
[A] Due to production surplus
[B] Alternative energy source developed
[C] Import of petroleum products was cheaper
[D] Due to insufficient refining capacity
Show Answer
Correct Answer: A [Due to production surplus]
Notes:
In 1985, India’s crude oil output increased significantly, reaching a temporary production surplus during the global oil glut. India exported crude oil due to this surplus until exports stopped after April 1985. India’s oil consumption was rising and the country was still a net importer of crude oil, but short-term excess domestic production made exports possible at that time.
14. Which of the following industries was affected most due to partition? (UPSC Prelims 1987)
[A] Cotton and jute
[B] Small scale industries
[C] Steel industries
[D] Tea and cotton
Show Answer
Correct Answer: A [Cotton and jute]
Notes:
India’s textile and clothing industry contributes 4% per cent to Gross. Partition of India in 1947 affected Indian cotton and jute industry badly. Most of the weavers who were Muslims migrated to Pakistan.
15. Which sector in India achieved double-digit growth in FY 2023-24?
[A] Agriculture sector
[B] Mining sector
[C] Manufacturing sector
[D] Service sector
Show Answer
Correct Answer: D [Service sector]
Notes:
The service sector in India recorded significant double-digit growth in segments like financial services (10.2%) during FY 2023-24. The service sector contributes about 54.4% to India’s GDP, the highest among all sectors, and consistently drives national economic growth.
16. Which of the below is type of seed produced by a recognized seed producing agencies in the public and private sector?
[A] Breeder seed
[B] Foundation seed
[C] Registered seed
[D] Certified seed
Show Answer
Correct Answer: B [Foundation seed]
Notes:
A foundation seed is a progeny of breeder seed produced by recognized seed producing agencies in the public and private sector, under the supervision of seed certification agencies and its quality is maintained according to prescribed field and seed standards.
17. Which is the top Mustard producing state in India?
[A] Maharastra
[B] Madhya Pradesh
[C] Rajasthan
[D] Gujarat
Show Answer
Correct Answer: C [Rajasthan]
Notes:
Rajasthan is the top Mustard and Rapeseed Producing state. It produces approximately 48.12% of Mustard and Rapeseed. It is followed by Madhya Pradesh and Haryana.
18. Where is the Central Bird Research Institute located?
[A] Izzatnagar
[B] Mathura
[C] Visakhapatanam
[D] Hyderabad
Show Answer
Correct Answer: A [Izzatnagar]
Notes:
The Central Avian Research Institute of India is a research institute located at Izzatnagar near Bareilly, Uttar Pradesh state, India. It studies poultry science, including avian genetics, breeding, nutrition and feed technology, and avian physiology and reproduction, for the betterment of the Indian poultry industry.
19. Which country is the largest destination for Indian seafood exports?
[A] USA
[B] China
[C] Vietnam
[D] Belgium
Show Answer
Correct Answer: A [USA]
Notes:
USA was the top destination for Indian seafood exports in 2024–25 with a value of USD 2.78 billion. In early FY26, US import tariffs on Indian shrimp were reduced to 18%. Non-US markets saw growth: China had a 16% export increase, Vietnam’s exports doubled to USD 0.18 billion, and Belgium’s doubled to USD 0.14 billion compared to the previous year.
20. Which is India’s second largest energy source after fossil fuels?
[A] Hydro power
[B] Solar power
[C] Nuclear power
[D] Wind power
Show Answer
Correct Answer: B [Solar power]
Notes:
In FY 2024-25, fossil fuels contribute over 75% to India’s energy supply. As of 2025, solar power has surpassed other renewables as the leading non-fossil energy source. India added 27.20 GW of solar capacity in FY 2025-26. India’s installed solar capacity is the third largest globally, ahead of wind, hydro, and nuclear power capacities.
