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. Which goods do Middle East arid nations export to India in FY 2024-25? (UPSC Prelims 1996)
[A] Precious stones and pearls
[B] Perfume and coffee
[C] Raw wool and carpets
[D] Fruits and palm oil
Show Answer
Correct Answer: D [Fruits and palm oil]
Notes:
Arid Middle Eastern countries, like Bahrain and UAE, export fruits (notably dates, dry fruits) and edible oils (notably palm oil) to India. These are key exports due to the region’s suitable climate and agriculture, supporting India’s food security needs. FY 2024-25 trade data affirms the trend.
12. Which of the following is considered as transfer payment?
[A] College fees
[B] Bank loan
[C] Bonus of employees
[D] Unemployed allowance by the government
Show Answer
Correct Answer: D [Unemployed allowance by the government]
Notes:
Transfer payment– is the payment by the government in grants, allowances, pensions etc to people such as pensioners, widows, sick or unemployed people or others with little or no income. It does not include subsidies given by the government .
Ex: PM KISAN amount transfer
13. Which among the following economic systems doesn’t have profit-making as motive?
- Socialist
- Market
- Mixed
- Traditional
Choose the correct option from the choices given below:
[A] 1 and 2
[B] 2 and 3
[C] 3 and 4
[D] 1 and 4
Show Answer
Correct Answer: D [1 and 4]
Notes:
Profit making is not the motto of the Socialist as well as the Traditional economic system. In mixed as it has a capitalist element in it, profit-making becomes one of its motives like that of market/capitalist economy.
14. Which of the following are part of the Quaternary sector?
[A] Banking
[B] Agriculture
[C] Restaurant
[D] Information technology
Show Answer
Correct Answer: D [Information technology]
Notes:
The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.
15. How many SDGs are covered in NITI Aayog’s SDG India Index 2023-24?
[A] 14
[B] 16
[C] 13
[D] 17
Show Answer
Correct Answer: B [16]
Notes:
NITI Aayog’s SDG India Index 2023-24 tracks 16 Sustainable Development Goals for states and union territories. It excludes SDG 14 (Life Below Water), which is relevant only to coastal regions. The Index utilizes 113 indicators to assess state-wise progress and was first launched by NITI Aayog in 2018. The SDGs were adopted by the United Nations in 2015 as a global agenda for 2030.
16. Which district leads in sunflower production in Karnataka (2025-2026 Kharif Estimates)?
[A] Tumakuru
[B] Davanagere
[C] Ballari
[D] Raichur
Show Answer
Correct Answer: B [Davanagere]
Notes:
Davanagere district in Karnataka has the highest sunflower production according to Department of Agriculture data for recent years. Karnataka produces more than 50% of India’s sunflower, with Davanagere accounting for a major share. Government schemes under the National Mission on Edible Oils continue to promote sunflower cultivation in Davanagere during 2024-2026 as per official estimates.
17. Which crops are surveyed under Project CHAMAN?
[A] Oil seeds and field crops
[B] Horticultural crops like potato, onion, tomato, mango
[C] Food grains and pulses
[D] All of the above
Show Answer
Correct Answer: B [Horticultural crops like potato, onion, tomato, mango]
Notes:
Project CHAMAN was launched in September 2014. It uses geoinformatics for assessment of horticulture crops. The project surveys seven main crops: potato, onion, tomato, chilli, mango, banana, and citrus. The survey began in 12 states and expanded to 15 states in its second phase. Project CHAMAN is distinct from FASAL, which estimates field crops such as rice and wheat.
18. Which coffee varieties are commercially grown in India?
[A] Arabica and Robusta
[B] Robusta and Charrieriana
[C] Charrieriana only
[D] Arabica only
Show Answer
Correct Answer: A [Arabica and Robusta]
Notes:
Arabica was introduced to India in the 17th century in Karnataka’s Chikmagalur district. Robusta is the most widely grown coffee variety in India, accounting for over 60% of production. Charrieriana is not commercially cultivated in India. The main coffee growing states are Karnataka, Kerala, and Tamil Nadu. India produces both Arabica and Robusta, but not Charrieriana.
19. What was the main regional focus of India’s 1980 Industrial Policy Statement?
[A] Concentrating industries in urban metropolitan areas
[B] Establishing heavy industries exclusively in coastal states
[C] Promoting industrial development in backward regions through incentives and nucleus plants
[D] Restricting industrial growth to private sector corporations
Show Answer
Correct Answer: C [Promoting industrial development in backward regions through incentives and nucleus plants]
Notes:
The 1980 Industrial Policy Statement aimed to reduce regional industrial disparities by incentives and establishing nucleus plants in backward districts. The policy included preferential finance, infrastructure support, and resource allocation for industrially backward areas. Issued by the Government of India in July 1980, it encouraged growth of ancillary and small-scale industries around nucleus plants to foster regional development.
20. Which category generates the most global e-waste?
[A] Medical equipment
[B] Computer and telecommunication equipment
[C] Household appliances
[D] Industrial machinery
Show Answer
Correct Answer: B [Computer and telecommunication equipment]
Notes:
Computers and telecommunication devices like PCs, mobiles, and routers produce the largest share of global e-waste. Factors include rapid technology changes and frequent device replacements. This category surpasses others in volume despite household appliances constituting significant physical weight of e-waste.
