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 term represents government’s total borrowing needs from all sources?
[A] Revenue Deficit
[B] Fiscal Deficit
[C] Primary Deficit
[D] Effective Revenue Deficit
Show Answer
Correct Answer: B [Fiscal Deficit]
Notes:
Fiscal deficit is calculated as total expenditure minus the sum of revenue receipts and non-debt capital receipts. Fiscal deficit data is published annually in the Union Budget. It shows the full amount the government must borrow in a financial year. The government’s fiscal deficit for 2023-24 was targeted at 5.9% of GDP.
12. The SPS Agreement under the WTO is most concerned with which among the following?
[A] Trade of plant genetic materials
[B] Phytosanitary Measures
[C] Technical Barriers to Trade
[D] Trade in Fertilizers
Show Answer
Correct Answer: B [ Phytosanitary Measures ]
Notes:
The Agreement on the Application of Sanitary and Phytosanitary Measures – also known as the SPS Agreement is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases. The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals.
13. Which Public Sector Giant issued world’s first Indian green masala bond?
[A] ONGC
[B] NTPC
[C] IOCL
[D] CIL
Show Answer
Correct Answer: B [NTPC]
Notes:
State-owned energy major National Thermal Power Corporation (NTPC) raised almost Rs 2,000 crores with the launch of its ‘Green Masala Bond’ on the London Stock Exchange (LSE). NTPC’s bond issue has been described as the first-ever Indian quasi-sovereign to issue a Masala Bond.
14. What will drive MENA region economic growth in 2026?
[A] Petroleum production alone
[B] Petroleum and economic diversification with AI development
[C] Tourism and hospitality exclusively
[D] Manufacturing exports
Show Answer
Correct Answer: B [Petroleum and economic diversification with AI development]
Notes:
The World Bank projects 2026 MENA growth to strengthen to 3.6% due to oil exporters’ growth and resilient non-oil activity. GCC economies are implementing economic diversification strategies. The UAE and Saudi Arabia prioritize AI and data center sectors in their Vision 2030 plans. Consumer packaged goods are projected to reach $650 billion by 2030 with 5% annual growth. Economic diversification and AI development are significant drivers.
15. Which of the following countries collaborated with Bhilai Steel plant for its establishment?
[A] Britain
[B] USA
[C] Russia
[D] Japan
Show Answer
Correct Answer: C [Russia]
Notes:
The Bhilai plant and the Bokaro Steel Plant in Jharkhand were commissioned to collaborate with Russia. The agreement for constructing Bhilai plant was signed with the Soviet Union in 1955 after Indian Prime Minster Jawaharlal Nehru visited Magnitogorsk, the capital of Russian iron and steel works.
16. Which is the longest irrigation canal in India?
[A] East Kosi Canal
[B] Sir hind Canal
[C] Yamuna Canal
[D] Indira Gandhi Canal
Show Answer
Correct Answer: D [Indira Gandhi Canal]
Notes:
The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.
17. What defines a market place in an economy?
[A] Place where profits are made
[B] Place where goods are made
[C] Place where people meet
[D] Place where buyers meet sellers
Show Answer
Correct Answer: D [Place where buyers meet sellers]
Notes:
A market is a place where forces of demand and supply operate and where buyers and sellers interact to trade goods, services, or contracts or instruments for money or barter.
18. Where are the headquarters of tea board located?
[A] Sicher
[B] Guwahati
[C] Kolkata
[D] Patna
Show Answer
Correct Answer: C [Kolkata]
Notes:
The Tea Board of India is a state agency of the Government of India established to promote the cultivation, processing, and domestic trade as well as export of Tea. Its headquarters is at Kolkata.
19. Which oilseeds are used in the Manufacturing of paints?
[A] Linseed
[B] Groundnut
[C] Castor
[D] None of the above
Show Answer
Correct Answer: A [Linseed]
Notes:
Linseed (Alsi in Hindi) has a unique drying property and is suitable for the manufacturing of paints, varnishes, printing ink etc. A small part is used as edible oil also.
20. What does ‘Recorded forest area’ refer to?
[A] Area declared as forest by government
[B] Area recorded as forest in government records
[C] Forest area in government control
[D] None of the above
Show Answer
Correct Answer: B [Area recorded as forest in government records]
Notes:
Recorded Forest Area means land recorded as forest in government records under any Act, Forest Settlement, or administrative order. It covers Reserved Forests, Protected Forests, and Unclassed Forests. The terminology is used in official documents such as the India State of Forest Report published biennially by the Forest Survey of India.
