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 feature distinguished the Eighth Five-Year Plan (1992-97) from earlier plans? (UPSC Prelims 1996)
[A] It marked the first plan after India’s 1991 economic reforms
[B] It achieved the highest actual growth rate of 6.8%
[C] It introduced industrial delicensing and opening of economy
[D] It targeted creation of 80 million employment opportunities
Show Answer
Correct Answer: A [It marked the first plan after India’s 1991 economic reforms]
Notes:
The Eighth Five-Year Plan (1992-1997) was the first plan implemented after India introduced economic reforms in 1991. The plan focused on indicative planning, market-led economy, liberalization, privatization, and globalization. India’s membership in the World Trade Organization began in January 1995 during this plan. Previous plans were based on centralized state control and public sector dominance.
12. Which of the following is not a feature of a mixed economy?
[A] State ownership
[B] Private property
[C] Market forces
[D] Open trade
Show Answer
Correct Answer: D [Open trade]
Notes:
In a mixed economy both private and public sector are the players. The trade in this type is opened only to a certain extent but not completely as trade restrictions exist. This is because the government has the social obligation to fulfil.
13. What is the current average farm size in India?
[A] 0.74 hectares
[B] 2.28 hectares
[C] 1.2 hectares
[D] 46 hectares
Show Answer
Correct Answer: A [0.74 hectares]
Notes:
According to the Agriculture Census of India 2015-16, the average size of operational holdings has decreased to 1.08 hectares. Recent estimates, including NABARD All India Rural Financial Inclusion Survey 2016-17, place the average farm size at around 0.74 hectares. The average size was 2.28 hectares in 1970-71. Approximately 86% of Indian farmers are small or marginal with less than 2 hectares.
14. Which Irrigation system cannot be used for growing Paddy?
[A] Sprinkler
[B] Canal
[C] Tank
[D] Well
Show Answer
Correct Answer: A [Sprinkler]
Notes:
Sprinkler irrigation is spraying of water in the air which is not sufficient for the growth of paddy. Paddy needs flooding in the area.
15. Where is the Central Seed Testing and Referral Laboratory located?
[A] Dehradun
[B] Ladakh
[C] Varanasi
[D] Pune
Show Answer
Correct Answer: C [Varanasi]
Notes:
The Central Seed Testing and Referral Laboratory was established in 2005 at Varanasi, Uttar Pradesh. The laboratory serves as a reference institution for seed testing in India. It operates under the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India.
16. Consider the following entities associated with the Public Distribution System (PDS) in India:
- Fair Price Shops
- Cooperative Stores
- Military Canteens
- Food Corporation of India (FCI) depots
Which of the above are actual parts of the Public Distribution System?
[A] Only 1 and 4
[B] Only 2 and 3
[C] All of the above
[D] Only 1
Show Answer
Correct Answer: A [Only 1 and 4]
Notes:
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.
17. Which country is the largest producer of castor in the world?
[A] China
[B] India
[C] Australia
[D] Brazil
Show Answer
Correct Answer: B [India]
Notes:
India accounts for 88.5% of global castor oil seed production. In 2024-25, India’s castor production reached 15.88 lakh tonnes by the second advance estimates. Gujarat produces over 70% of the country’s castor oil. India is the top global exporter of castor oil, holding over 87% market share.
18. Which state in India is the largest producer of Mulberry?
[A] Karnataka
[B] Kerala
[C] Tamil Nadu
[D] Andhra Pradesh
Show Answer
Correct Answer: A [Karnataka]
Notes:
Karnataka is the largest producer of Mulberry silk in India, accounting for approximately 42% of the country’s total mulberry raw silk production. It is the leading state in sericulture, with major production hubs in districts like Ramanagara, Chikkaballapura, and Kolar. Other mulberry producing states are Andhra Pradesh, Assam and Bodoland, West Bengal, Jharkhand and Tamil Nadu.
19. Who coined the term evergreen revolution?
[A] M.S.Swaminathan
[B] Manmohan singh
[C] Verghese Kurien
[D] Sam Pitroda
Show Answer
Correct Answer: A [M.S.Swaminathan]
Notes:
Evergreen revolution is coined by M.S.Swaminathan. It refers to increasing productivity without ecological and social harm. It involves combining ecological principles and technology development.
20. What is the main aim of the National Mission for Sustainable Agriculture (NMSA)?
[A] To promote only high-yielding seeds nationwide
[B] To expand irrigation in all regions unconditionally
[C] To make agriculture productive, sustainable, and climate resilient
[D] To promote monoculture for quick yields
Show Answer
Correct Answer: C [To make agriculture productive, sustainable, and climate resilient]
Notes:
The National Mission for Sustainable Agriculture (NMSA) was launched in 2014-15 under the National Action Plan on Climate Change. Its objective is to make agriculture productive, sustainable, remunerative, and climate resilient through location-specific integrated and composite farming systems. It emphasizes water use efficiency, soil health, nutrient management, and adaptation to climate change.
