Indian Economy MCQs

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Subsidy a negative tax when the government gives money to reduce the price. A seller receives a subsidy to reduce the price for consumers. A manufacturer receives a subsidy for inputs incurred by them. A buyer sometimes receives a direct subsidy on important essentials like gas.

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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.

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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.

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The third Five-year plan was made for the duration of 1961 to 1966. This plan is called ‘Gadgil Yojna’ also. The main target of this plan was to make the country economically independent.

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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.

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Rajasthan has been the largest producer of Bajra in India, contributing nearly 40% of the country’s total production. Bajra is mainly cultivated in western Rajasthan, including districts such as Jodhpur, Barmer, Bikaner, and Nagaur. The state’s climate and soil conditions are suitable for pearl millet cultivation. Annual statistics from the Ministry of Agriculture confirm Rajasthan’s leading position for decades.

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Chhattisgarh reports the highest percentage of rural households dependent on fuelwood as their primary energy source. The Forest Survey of India data in 2021 stated that 93.2% of rural households in Chhattisgarh rely on fuelwood, more than other states including Rajasthan and Odisha. This rate is the highest among Indian states based on the latest survey figures.

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In 2024, China exported tobacco products valued at $9.17 billion, holding a 16.7% share of the global tobacco export market. China ranked above Poland, Germany, and Brazil in total tobacco export value, including both raw and processed tobacco products. Processed tobacco products, mainly cigarettes, constitute over 85% of the global tobacco export value share by country.

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The Food Corporation of India historically borrowed from the National Small Savings Fund (NSSF) to finance food subsidy shortfalls. In the Union Budget 2021-22, the Government of India discontinued NSSF loans to FCI for food subsidy. During 2020-21, the government repaid about Rs 1.5 lakh crore of NSSF loans. Since FY22, FCI receives subsidy via direct budget allocations.

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Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu were announced in 2018. Uttar Pradesh corridor includes nodes at Lucknow, Kanpur, Jhansi, Chitrakoot, Aligarh, and Agra. Tamil Nadu corridor covers Chennai, Hosur, Coimbatore, Salem, and Tiruchirappalli. Both corridors aim to attract defence manufacturing investment. No other states currently have operational Defence Industrial Corridors as of June 2024.