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. In which type of remittances, money is transferred from one country to another?
[A] Foreign Remittance
[B] Digital Remittance
[C] Blockchain Remittance
[D] None of the above
Show Answer
Correct Answer: A [Foreign Remittance]
Notes:
In banking terminology, remittance means transfer of fund one place to another. When money transferred from one country to another, this is called Foreign Remittance.
12. What is the primary function of the Finance Commission?
[A] Passing the money bills
[B] Approving money bills
[C] Drafting the budget
[D] Making recommendations on tax revenue distribution between Union and States
Show Answer
Correct Answer: D [Making recommendations on tax revenue distribution between Union and States]
Notes:
The Finance Commission, constituted under Article 280 of the Indian Constitution, recommends the distribution of net tax proceeds between the Centre and States and suggests principles for grants-in-aid. It is constituted every five years or earlier as deemed necessary by the President.
13. Using iron instead of wooden ploughs is an example of which technology?
[A] Obsolete technology
[B] Appropriate technology
[C] Redundant technology
[D] Ultimate technology
Show Answer
Correct Answer: B [Appropriate technology]
Notes:
Appropriate technology refers to methods or tools that are affordable, locally adaptable, and suited to the community’s needs. Iron ploughs replace less durable wooden ones, improving productivity and lifespan without requiring advanced infrastructure. The shift increases agricultural efficiency in areas with limited resources. This practice matches the concept of appropriate technology in rural agricultural settings.
14. The Government fixes Minimum support price(MSP) for agricultural goods on the basis of recommendation of which of the following?
[A] Commission for Agricultural Costs and Prices
[B] NITI Aayog
[C] Finance Ministry
[D] Agriculture Ministry
Show Answer
Correct Answer: A [Commission for Agricultural Costs and Prices]
Notes:
The minimum support price is announced by the government of India on the recommendation of the Commission for agricultural costs and prices at the beginning of the sowing season for certain crops.
15. What is growing of 2 crops in alternate rows known as?
[A] Relay cropping
[B] Row cropping
[C] Mixed cropping
[D] None of the above
Show Answer
Correct Answer: B [Row cropping]
Notes:
Row intercropping is cropping that involves the component crops arranged in alternate rows. The benefit of this includes the optimum utilization of land space and suppression of weeds during the juvenile stage of the main crop.
16. Which organization is responsible for maintaining buffer stock in India?
[A] FCI
[B] IFFC
[C] FICCI
[D] IBC
Show Answer
Correct Answer: A [FCI]
Notes:
Food Corporation of India (FCI) was established in 1965 under the Food Corporations Act, 1964. It procures and maintains buffer stocks of foodgrains for the Public Distribution System and food security in India. FCI operates under the Ministry of Consumer Affairs, Food and Public Distribution. Headquarters are located in New Delhi. FCI stores wheat, rice, and other essential foodgrains as buffer stock.
17. Which country is the largest producer of sesame seeds in the world?
[A] India
[B] Myanmar
[C] Sudan
[D] Nigeria
Show Answer
Correct Answer: C [Sudan]
Notes:
Sudan produced approximately 1.37 million tonnes of sesame seeds in 2025. Major sesame producing regions in Sudan include the Nile and Blue Nile areas. Sudan surpassed India and Myanmar in annual sesame seed production. FAO and other global agricultural databases confirm Sudan as the top sesame producing country as of 2025.
18. Which animal is globally raised in the highest numbers?
[A] Goat
[B] Cow
[C] Chicken
[D] Duck
Show Answer
Correct Answer: C [Chicken]
Notes:
Global poultry meat production is projected at 109.6 million metric tons in 2026. Chicken is raised more than any other animal worldwide. The United States forecasts chicken production at 22 million tons. China projects 16.7 million tons, Brazil 15.7 million tons, and the European Union 11.9 million tons. Chicken consumption per capita outpaces beef and pork globally.
19. How many major ports are there in India?
[A] 7
[B] 10
[C] 13
[D] 20
Show Answer
Correct Answer: C [13]
Notes:
India has 13 major ports as of 2023. These include Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore (Kamarajar), Tuticorin (V.O. Chidambaranar), Paradip, Visakhapatnam, Kolkata (Syama Prasad Mookerjee Port), and Port Blair. These ports are administered by the Central Government under the Major Port Trusts Act, 1963, and handle most of India’s maritime cargo traffic.
20. Which state is the largest producer of tendu leaves in India?
[A] Arunachal Pradesh
[B] Andhra Pradesh
[C] Chhattisgarh
[D] Madhya Pradesh
Show Answer
Correct Answer: D [Madhya Pradesh]
Notes:
Madhya Pradesh produces around 25 lakh standard bags of tendu leaves annually. The state contributes approximately 25% of India’s tendu leaves production. Tendu leaf collection in Madhya Pradesh is managed by the State Minor Forest Produce Association. More than 3.5 million collectors are involved in ten districts. The area was higher before Chhattisgarh separated in 2000.
