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. What is the main aim of India’s Foreign Trade Policy 2023?
[A] Export promotion and import substitution only
[B] Export promotion, import regulation, and $2 trillion exports by 2030
[C] Import-oriented manufacturing and domestic consumption
[D] None of the above
Show Answer
Correct Answer: B [Export promotion, import regulation, and $2 trillion exports by 2030]
Notes:
India’s Foreign Trade Policy 2023 is designed to boost exports and make trade procedures easier and more efficient. A major objective of the policy is to support India’s export growth and move towards $2 trillion in goods and services exports by 2030. It also focuses on import rationalization, smoother logistics, digital trade facilitation, and greater competitiveness of Indian exporters in global markets.
12. Which of the following clearly define Stagflation? (UPSC Prelims 1984)
[A] Constant rate of inflation
[B] Low inflation with high recession
[C] High inflation with low recession
[D] Stagnation and inflation
Show Answer
Correct Answer: D [Stagnation and inflation]
Notes:
Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP).
13. What is subtracted from Gross Value Added to get Net Value Added?
[A] Depreciation
[B] Value added
[C] Production flow
[D] Investment
Show Answer
Correct Answer: A [Depreciation]
Notes:
Net Value Added is obtained by subtracting depreciation from Gross Value Added. Depreciation represents the wear and tear or consumption of fixed capital during the production process. It is a key measure in national income accounting.
14. Who is the author of Das Kapital?
[A] J S Mill
[B] Adam Smith
[C] Keynes
[D] Karl Marx
Show Answer
Correct Answer: D [Karl Marx]
Notes:
Das Kapital, a critique of political economy is a foundational theoretical text in materialist philosophy, economics and politics by Karl Marx . It was published in 1867.
15. Which sector comprises of the activities like exploitation of natural resources?
[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised
Show Answer
Correct Answer: C [Primary]
Notes:
The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.
16. What is the major challenge hindering India’s economic development in 2026?
[A] High population
[B] Poor infrastructure
[C] Less exports
[D] Market imperfections
Show Answer
Correct Answer: B [Poor infrastructure]
Notes:
Poor infrastructure is the main hindrance to India’s economic growth in 2026, affecting manufacturing (12.5% of GDP), FDI inflow, labor reforms, and land acquisition reforms. Despite growth in GDP and services exports, infrastructure deficits persist as the primary barrier over high population or export volumes.
17. What is the spatial and temporal arrangement of crops called?
[A] Cropping pattern
[B] Land topography
[C] Crop alignment
[D] Agricultural zonation
Show Answer
Correct Answer: A [Cropping pattern]
Notes:
Cropping pattern refers to the spatial and temporal sequencing and arrangement of crops in a specified area. It involves the proportion of area under different crops at a given time and their rotation or succession. Factors influencing cropping patterns include climate, soil, technology, and farmer preference. India’s major cropping patterns change over time due to market demand and government policy.
18. What is India’s horticulture cultivation area in 2024–25 (third advance estimates)?
[A] 29.1 million hectares
[B] 29.5 million hectares
[C] 28.7 million hectares
[D] 30.0 million hectares
Show Answer
Correct Answer: B [29.5 million hectares]
Notes:
The Ministry of Agriculture & Farmers Welfare released third advance estimates on 27 November 2025 for 2024–25. The total area under horticultural crops in India is 29.488 million hectares for 2024–25. The area was 29.086 million hectares in 2023–24. Horticulture includes fruits, vegetables, and plantation crops. These estimates are part of annual agriculture data collection at the national level.
19. Which country is the largest importer of Indian cashew kernels?
[A] Netherlands
[B] United Arab Emirates
[C] Japan
[D] Saudi Arabia
Show Answer
Correct Answer: B [United Arab Emirates]
Notes:
The United Arab Emirates imported the highest quantity of Indian cashew kernels in 2021-22. UAE accounted for about 31% share in both quantity and value among all countries importing Indian cashew kernels. Data from the Kerala Cashew Board confirms UAE as the top importer in recent years. Other major importers include the Netherlands, Japan, and Saudi Arabia.
20. Which Indian state leads in meat production in 2024-25?
[A] West Bengal
[B] Uttar Pradesh
[C] Haryana
[D] Andhra Pradesh
Show Answer
Correct Answer: A [West Bengal]
Notes:
The top 5 meat producing States are West Bengal (12.46%), Uttar Pradesh (12.20%),Maharashtra (11.57%), Andhra Pradesh (10.84%) and Telangana (10.49%). They togethercontribute 57.55% of total meat production in the country. (Source: Basic Animal Husbandry Statistics 2025)
