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. When does a monopoly by a specific business entity occur in the market?
[A] When there are numerous buyers and sellers
[B] When homogeneous products flood the market
[C] When a distinctive product is exclusively sold by a single seller
[D] When firms are merely price takers
Show Answer
Correct Answer: C [When a distinctive product is exclusively sold by a single seller]
Notes:
A monopoly exists when a specific entity is the sole supplier of a particular commodity. This market condition can only occur if the unique product is exclusively sold by one seller, eliminating any form of direct competition. It is regulated by certain laws to prevent marketplace inefficiency. However, a monopoly can lead to innovation as other companies strive to create an alternative or similar product.
12. Who is called the father of direct taxation reforms in India?
[A] Dr. C.Rangarajan
[B] Dr. Shankar Acharya
[C] Dr. Raja Chelliah
[D] Dr. V.K.R.V.Rao
Show Answer
Correct Answer: C [Dr. Raja Chelliah]
Notes:
Dr. Chelliah was one of the top consultants in public finance anywhere in the world. After He served in an advisory capacity with the government of Papa New Guinea and a number of other countries, Chelliah became the father of the direct taxation reforms in early India. He was honored with the Padma Vibushan in 2007 and died in 2009.
13. 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”.
14. In which year, Maruti Udyog limited was started?
[A] 1982
[B] 1987
[C] 1985
[D] 1983
Show Answer
Correct Answer: D [1983]
Notes:
In 1983, the first Maruti car rolled off the assembly line in Gurgaon. Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited when it started. It was sold to the Japnese firm Suzuki.
15. Which sector was most affected due to the de-industrialization of the British?
[A] Jute
[B] Textile
[C] Ship building
[D] Banking
Show Answer
Correct Answer: B [Textile]
Notes:
The textile industry was the most affected due to the de-industrialization of the British. The British followed the systematic destruction of the Indian Industries. Indian textiles were banned in European markets and Indian markets were flooded with machine-made goods which destroyed the Indian industry.
16. Which item is the largest contributor to Indian imports?
[A] Gems and precious metals
[B] Petroleum fuels and oils
[C] Electrical machinery and equipment
[D] Iron and steel
Show Answer
Correct Answer: B [Petroleum fuels and oils]
Notes:
Petroleum fuels and oils consistently top Indian import categories, historically accounting for about 27% of total imports. Main sources include Russia, UAE, and Saudi Arabia. Gems and electrical machinery rank next, but well below petroleum products in share, per recent official trade data and analyses.
17. During which five-year plan the Private sector was given priority over the public sector?
[A] 5th
[B] 7th
[C] 6th
[D] 8th
Show Answer
Correct Answer: B [7th]
Notes:
Seventh Five Year Plan from 1985 to 1990 had the objective to establish a self-sufficient economy, opportunities for productive employment. For the first time, the private sector got priority over the public sector. Socialist India started moving away from it.
18. 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.
19. Which crop is given Fair and Remunerative Price by the government?
[A] Coffee
[B] Tea
[C] Sugarcane
[D] Barley
Show Answer
Correct Answer: C [Sugarcane]
Notes:
Fair and Remunerative Price (FRP) for sugarcane was introduced by the Government of India in 2009-10 under the Sugarcane (Control) (Amendment) Order, 2009. FRP is fixed annually by the central government on the recommendation of the Commission for Agricultural Costs and Prices. Sugar mills are legally required to pay this price to sugarcane farmers.
20. What was India’s seafood export value during April-October FY2025-26?
[A] 2.8 billion
[B] 4.19 billion
[C] 4.87 billion
[D] 7.45 billion
Show Answer
Correct Answer: C [$4.87 billion]
Notes:
India’s seafood exports reached 4.87 billion between April and October 2025 in FY2025-26. The same period of the previous fiscal year saw exports of 4.19 billion. This represented a 16% increase in export value and a 12% increase in export volume over the previous year. Key export destinations included Vietnam, Belgium, Malaysia, Germany, and China.
