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 of the following problems is needed to be resolved under issue management?
[A] Problems with staff
[B] Technical failures
[C] Material shortages
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project
12. What is India’s current exchange rate regime for the rupee? (UPSC Prelims 1982)
[A] Peg to a single currency (the US Dollar)
[B] Fixed exchange rate regime
[C] Floating exchange rate regime with a basket peg reference
[D] Par value exchange rate regime
Show Answer
Correct Answer: C [Floating exchange rate regime with a basket peg reference]
Notes:
India adopted a floating exchange rate regime in 1991. The rupee’s value is determined by referencing a basket of major international currencies. The Reserve Bank of India calculates and publishes the Nominal Effective Exchange Rate (NEER) and the Real Effective Exchange Rate (REER) based on this currency basket. India abandoned the fixed rate regime in 1993. The rupee is not pegged to a single currency.
13. Which industry employs the most workers in India? (UPSC Prelims 1988)
[A] Jute
[B] Sugar
[C] Textiles
[D] Iron and Steel
Show Answer
Correct Answer: C [Textiles]
Notes:
The textile industry is the largest employer in India after agriculture. It directly employs about 45 million people as of 2023. Including allied sectors, total employment exceeds 100 million. The industry includes handlooms, powerlooms, spinning, and garment manufacturing. The Indian textile and apparel market was valued at USD 223 billion in 2021 and has significant export share globally.
14. Which are major environmental causes of death in developing countries? (UPSC Prelims 1993)
[A] Lack of safe water, pesticide use, ozone thinning
[B] Contaminated food, global warming, CFCs
[C] Polluted air, greenhouse effect, soil erosion
[D] Unsafe water, contaminated food, polluted air
Show Answer
Correct Answer: D [Unsafe water, contaminated food, polluted air]
Notes:
Unsafe water, contaminated food, and polluted air are linked to around 40% of global deaths caused by pollution in developing countries. Waterborne diseases like cholera and diarrhoea account for significant mortality, especially in children. Air pollution contributes to respiratory diseases, increasing mortality rates among children under age five. Contaminated food transmits diarrhoeal diseases and other infections, particularly in low-income regions.
15. Which of the following is not the advantage of the Socialist Economy?
[A] Equitable distribution of resources
[B] Social development is possible
[C] Government can take steps to focus on important sectors
[D] There is Lack of Innovation.
Show Answer
Correct Answer: D [There is Lack of Innovation.]
Notes:
There is a lack of innovation is the disadvantage of Socialist form of Economy. Since there is no need to take any risk as all the jobs are protected innovation doesn’t take place. Workers are also forced to pursue jobs the government deems fit.
16. Which sector was most affected due to the de-industrialization of the British?
[A] Jute
[B] Textile
[C] Ship building
[D] Banking
Show Answer
Correct Answer: B [Textile]
Notes:
The textile industry was the most affected due to the de-industrialization of the British. The British followed the systematic destruction of the Indian Industries. Indian textiles were banned in European markets and Indian markets were flooded with machine-made goods which destroyed the Indian industry.
17. Which is not a characteristic of the Indian Economy?
[A] Chronic unemployment and underemployment
[B] High poverty
[C] Equal distribution of wealth
[D] Low labor productivity
Show Answer
Correct Answer: C [Equal distribution of wealth]
Notes:
The Indian economy has significant wealth inequality. The 2026 World Inequality Report states that the top 1% of India’s population owns 40% of the country’s wealth. The richest 10% hold approximately 65% of the total wealth. There is no policy or data showing equal wealth distribution in India. Income and wealth disparities remain persistent across the population.
18. Who suggested the rolling plan for backward countries?
[A] Gunnar Myrdal
[B] Amartya Sen
[C] R.Samuelson
[D] M.R.Lewis
Show Answer
Correct Answer: A [Gunnar Myrdal]
Notes:
The Rolling Plan for backward countries was suggested by Gunnar Myrdal. The rolling plan consists of three different steps, First, a plan for the current year which includes the annual budget. Second, a plan fixed for a fixed number of years, say three-four or five years. As per the requirement of the economy, it is revised every year. Third a perspective plan for 10, 15, or 20 years.
19. Which Five-year plan was also known as “Gadgil Yojna”?
[A] Second
[B] Third
[C] Fourth
[D] Fifth
Show Answer
Correct Answer: B [Third]
Notes:
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.
20. What is the color of the certificate issued for a breeder certificate?
[A] Red
[B] Green
[C] White
[D] Blue
Show Answer
Correct Answer: C [White ]
Notes:
A foundation seed is a progeny of breeder seed produced by recognized seed producing agencies in public and private sector, under the supervision of seed certification agencies and its quality is maintained according to prescribed field and seed standards. A white color certificate is issued
