Indian Economy MCQs

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Deficit financing is the budgetary situation where expenditure is higher than the revenue. It is a practice adopted for financing the excess expenditure with outside resources. The expenditure revenue gap is financed by either printing of currency or through borrowing.

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NPK fertilizer is a complex fertilizer comprised primarily of the three primary nutrients required for healthy plant growth. NPK stands for “nitrogen, phosphorus, and potassium,” the three nutrients that compose complete fertilizers. The higher the number, the more concentrated the nutrient is in the fertilizer. You may encounter these letters when reading the contents printed on bags of fertilizer.

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The Public Distribution System (PDS) in India primarily includes Fair Price Shops—the retail outlets where food grains are distributed to beneficiaries—and Food Corporation of India (FCI) depots, which manage the storage and movement of grains. Cooperative Stores and Military Canteens operate outside the PDS framework and are not involved in its distribution network.

Notes:
Brazil produced 43.7 million metric tons of sugar in 2023/24. Brazil is the top sugar exporter, shipping over 36 million metric tons in 2023/24. India is the second-largest producer with about 32.8 million metric tons forecasted in 2025/26. Brazil’s main sugar-producing region is the Center-South. Thailand and China rank below both Brazil and India in sugar production.

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Chennai had the highest number of operational Special Economic Zones (SEZs) in Tamil Nadu as of April 2024. Tamil Nadu had 49 operational SEZs in total, with many concentrated around the Chennai metropolitan region. The SEZ Act was implemented in 2006, facilitating rapid development of SEZs in key urban industrial centers.

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The government increased the maximum turnover limit for startup recognition under Startup India from ₹100 crore to ₹200 crore in February 2026. Startups must operate as private limited companies, limited liability partnerships, or registered partnerships to qualify. The Startup India initiative was launched in 2016 by the Government of India to support entrepreneurship and innovation across the country.

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Recent trade data show that the UAE has emerged as a major destination for India’s gems and jewellery exports, while exports to the US have declined due to tariff pressures. The original question mixed up exports and imports; this corrected version focuses on India’s export destination, where UAE is a valid answer.

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According to the Joint Plant Committee (JPC), India’s per capita finished steel consumption in FY 2025-26 is 115.5 kg. The Ministry of Steel cites this as the latest figure for the period, while the National Steel Policy, 2017, sets a target of 158 kg by 2030-31. The 97.7 kg figure relates to FY 2023-24, so it is not the correct answer for FY 2025-26.

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The world steel association is the international trade body for the iron and steel industry. Its headquarters is at Brussels, Belgium. It was founded in 1967.

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Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant, is headquartered at Visakhapatnam in Andhra Pradesh. It is associated with India’s first shore-based integrated steel plant. RINL was incorporated in 1982, while the Visakhapatnam steel project began with the plant site’s inauguration in 1971. Hence, Visakhapatnam is the correct headquarters location.