Indian Economy MCQs

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Indirect taxes make the distribution of income more unequal because of their regressive effects. The poor will get taxed a higher proportion of their income than the rich, making it a regressive tax.

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Taxation plays an important role in regional development and fulfilling government expenditure. Tax incentives such as tax holiday for setting up industries in backward regions, which induces business firms to set up industries in such regions, Tax revenue collected by government is also utilized for development of infrastructure in backward regions.

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In the Union Budget 2026 estimates, income tax is projected as the largest contributor to central tax revenue at 32%. The government expects income tax collections of around ₹13.6 lakh crore for FY26. The share of GST is approximately 27.6%. Customs duty accounts for about 5-6%. Direct taxes overall form 61.2% of gross tax revenue, with income tax being the leading component.

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The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.

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Multiple cropping is agricultural practice of cultivating two or more crops on the same land in a year. This system increases land productivity by producing more than one crop within a single year. It can be done through arrangements like sequential cropping or relay cropping. The concept is used globally to achieve food security and efficient resource use.

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Poverty and limited income reduce access to sufficient nutritious food. Food insecurity occurs when households cannot afford adequate food. In 2022, nearly 350 million people globally were food insecure due to poverty. Economic hardship remains the principal driver. Malnutrition is a result, not a cause, of food insecurity. The United Nations identifies poverty as the leading root cause of food insecurity worldwide.

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China is the world’s largest producer of bamboo, with production exceeding 5 million hectares as of 2023. The country accounts for over 65% of global bamboo resources. Major cultivation regions in China include Fujian, Zhejiang, and Jiangxi. China leads in bamboo exports and bamboo-based industry output worldwide.

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China is the largest silk-producing country globally. In 2022, China accounted for approximately 75% of the world’s raw silk output. China’s main silk-producing provinces are Jiangsu, Zhejiang, and Sichuan. The country has been the leading silk producer for several decades, exporting silk products worldwide. The Chinese silk industry is supported by both government initiatives and private sector involvement.

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West Bengal contributes over 60% of India’s jute production. In 2021-22, it produced 8,182.95 thousand bales of jute. The state’s jute cultivation covers approximately 4.183 lakh hectares. West Bengal is consistently ranked first in jute output among Indian states, and its jute industry is centered around the Hooghly River. Bihar and Assam hold the subsequent ranks in jute production by volume.

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Vietnam exported 2.9 billion of cashew nuts in 2025-26. Vietnam had 193,356 cashew export shipments in that period. India exported 344 million and Ivory Coast $1.2 billion. Vietnam has been the world’s largest exporter of cashew nuts since 2006, overtaking former leaders such as India and Ivory Coast. Vietnam is a major processor and exporter of cashews globally.