Indian Economy MCQs

Notes:
Irving Fisher, a leading American neoclassical economist, published “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It” in 1930. His pioneering work analyzed interest rates, relating them to savings impatience and investment opportunities, influencing modern interest theory and macroeconomics.

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.

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The socialist form of economy is not based on market forces and competition doesn’t exist in the market. The state owns the factors of production and private property is not encouraged.

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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.

Notes:
Mustard, soybean, and flaxseed are cultivated as oilseeds for extraction of edible oil. Wheat is a cereal crop and is not classified as an oilseed. Soybean and flaxseed are major oilseed crops worldwide. Mustard is extensively grown for its seeds, which contain oil used in cooking. Oilseed crops are distinct from cereal and pulse crops.

Notes:
Oman imported Indian eggs worth 28.60 million in 2023, making it the largest destination for Indian egg exports. Maldives and Sri Lanka each imported 14.70 million, while Qatar imported $8.69 million. Oman has consistently led Indian egg imports by value in recent years. Egg exports mainly consist of shell eggs rather than poultry meat, which forms a much smaller export segment.

Notes:
100% FDI is allowed in the poultry sector under the automatic route. This permission applies to the entire food processing sector as per government policy. There is no requirement for prior government approval for foreign direct investment up to 100%. Policy applies since the consolidated FDI Policy, effective August 28, 2017, and thereafter.

Notes:
Neelakurinji (Strobilanthes kunthiana) blooms every 12 years mainly in the shola grasslands of the southern Western Ghats. These grasslands are found at high altitudes of Kerala, Karnataka, and Tamil Nadu. Neelakurinji does not grow in Gir Forests, Jim Corbett National Park, or central India’s deciduous forests. The Nilgiri Hills are named after the blue hue from Neelakurinji flowers.

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.

Notes:
Agricultural marketing is placed under the State List (List II) of the Seventh Schedule via Entry 28, which covers “Markets and fairs.” States regulate agricultural marketing through their own laws and Agricultural Produce Marketing Committees (APMCs). Entry 14 further relates to agriculture. As of 2024, agricultural marketing remains primarily a state subject in the Indian Constitution.