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 economist is the brainchild behind the 1991 LPG reforms in India?
[A] P.C.Mehalonibis
[B] Manmohan Singh
[C] Amartya Sen
[D] None of the above
Show Answer
Correct Answer: B [Manmohan Singh]
Notes:
Former Prime Minister Dr. Manmohan Singh is one of India’s leading economists and is known to have been the brain behind India’s socio-economic reforms and economic liberalization.
12. Which economist wrote “The Presidency Banks and the Indian Economy”?
[A] Amit Mitra
[B] Amiya Kumar Bagchi
[C] Aravind Panagariya
[D] Bibek Debroy
Show Answer
Correct Answer: B [Amiya Kumar Bagchi]
Notes:
The Presidency Banks and the Indian Economy is written and published by Amiya Kumar Bagchi in 1989.
13. What is referred to as the “invisible hand” in a market economy?
[A] Trade
[B] Money
[C] Demand and supply
[D] Competition
Show Answer
Correct Answer: D [Competition]
Notes:
Adam Smith’s “invisible hand” describes competition, which guides market resources efficiently and benefits society even if individuals act in self-interest. This concept is foundational in classical economic theory and emphasizes the self-regulating nature of competitive markets.
14. Which crop is given Fair and Remunerative Price by the government?
[A] Coffee
[B] Tea
[C] Sugarcane
[D] Barley
Show Answer
Correct Answer: C [Sugarcane]
Notes:
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.
15. Which of the following is / are type(s) of Gene Modification of seed?
- Mutation of genes
- Insertion of genes
- Deletion of genes
Choose the correct option from codes given below:
[A] 1,2 and 3
[B] 1 and 2 only
[C] 2 only
[D] 1 and 3 only
Show Answer
Correct Answer: A [1,2 and 3]
Notes:
GM crops are the Genetically modified crops that involve mutation, insertion, and deletion of Genes. Genetic material(DNA) in the original seed is altered or artificially introduced using genetic engineering techniques.
16. Which country is the world’s largest importer of edible oil?
[A] China
[B] India
[C] USA
[D] Pakistan
Show Answer
Correct Answer: B [India]
Notes:
India is the world’s largest importer of edible oil. In 2025, India’s edible oil imports were valued at 21.8 billion, accounting for 18.9% of global imports. India imports about 16.7 million tonnes annually, with major suppliers being Indonesia and Malaysia for palm oil, and Argentina and Brazil for soybean oil. China is the second-largest importer, with 14.6 billion in imports.
17. What is India’s tree cover percentage outside forests as per ISFR 2023?
[A] 3.50%
[B] 3.41%
[C] 2.89%
[D] 1.45%
Show Answer
Correct Answer: B [3.41%]
Notes:
According to the India State of Forest Report 2023, India’s tree cover outside recorded forest areas is 3.41% of the country’s geographical area. Tree cover refers to patches of trees covering an area of one hectare or more outside government-notified forests. The report states total tree cover at 95,748 sq km in 2023, marking an increase over the 2021 estimation.
18. Which country is the largest exporter of raw cashew nuts?
[A] India
[B] Vietnam
[C] Ivory Coast
[D] Brazil
Show Answer
Correct Answer: B [Vietnam]
Notes:
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.
19. What percentage of Indian exports is contributed by MSMEs?
[A] 35%
[B] 45%
[C] 48.58%
[D] 43.59%
Show Answer
Correct Answer: C [48.58%]
Notes:
As per Economic Survey 2025-26, MSMEs contribute approximately 48.58% to India’s total exports. The MSME export share increased from 45.79% in 2024-25 and 43.59% in 2022-23. This sector also registered MSME exports of ₹12.4 trillion in 2024-25. MSMEs employ over 32.82 crore persons in India and form a substantial base for export-driven manufacturing and services.
20. Which city is called Manchester of south India?
[A] Chennai
[B] Coimbatore
[C] Hubli
[D] Salem
Show Answer
Correct Answer: B [Coimbatore]
Notes:
Coimbatore is a heavily industrialized city with textile factories, automotive manufacturers, health care and education industry. So it is called Manchester of south India.
Kanpur which is one of North India’s main commercial and industrial centre is Manchester of Uttar Pradesh.
