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 markets enable new issues of equity and debt to be traded?
[A] Secondary markets
[B] Discount markets
[C] Primary capital markets
[D] Gilt repo market
Show Answer
Correct Answer: C [Primary capital markets]
Notes:
Primary capital markets are Organised markets that enable new issues of equity and debt to be traded.
12. What are key outcomes of agricultural mechanization? (UPSC Prelims 1988)
[A] Lower cost, higher productivity, and timely operations
[B] Higher productivity and reduced employment
[C] Lower cost, higher productivity, reduced loss
[D] Lower cost, higher productivity, timely operations, reduced employment
Show Answer
Correct Answer: C [Lower cost, higher productivity, reduced loss]
Notes:
Mechanization in agriculture reduces per unit operational costs by increasing efficiency. It enhances per unit productivity and crop yields by improving timeliness of operations. Mechanization minimizes grain losses during harvesting due to precision of machines. Studies in India report that mechanized land preparation decreases labor requirement from 31 hours to around 3 hours per hectare. Improved technical efficiency and better management practices are documented benefits of agricultural mechanization.
13. ‘Terms of trade’ between agriculture and industry has reference to? (UPSC Prelims 1992)
[A] Relative price movements between the two sectors
[B] Relative quantities of production in the two sectors
[C] The extent of trade existent between the two sectors
[D] Relative international valuation of the agricultural produce in contrast to the industrial produce
Show Answer
Correct Answer: A [Relative price movements between the two sectors]
Notes:
Terms of trade between agriculture and industry can be thought of as the ratio of prices of agricultural products to that of prices of industrial products. This is analogous to International Terms of Trade that are given by the formula: (Price of exports)/ (price of imports).
14. 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.
15. What percentage of complex fertilizer needs does India meet domestically as of January 2026?
[A] 50%
[B] 60%
[C] 80%
[D] 70%
Show Answer
Correct Answer: D [70%]
Notes:
In January 2026, India’s domestic production of P&K fertilizers reached 15.76 lakh metric tonnes. India fulfills approximately 70% of complex fertilizer requirements through domestic production. The remaining one-third comes from imports. Government policies, capacity expansions, and raw material agreements with other countries have supported this record output. Complex fertilizers account for nearly one-third of total fertilizer consumption in India.
16. Which food crop’s production increased most in India after Independence?
[A] Rice
[B] Wheat
[C] Maize
[D] Pulses
Show Answer
Correct Answer: B [Wheat]
Notes:
Wheat production in India increased significantly after the Green Revolution began in 1965-66. The annual wheat output rose from 11 million tonnes in 1966-67 to over 95 million tonnes in 2013-14. Yield per hectare went from about 0.8 tonnes in 1948 to 4.7 tonnes by the late 1970s. The Green Revolution introduced high-yield varieties and expanded irrigation.
17. Which country has the highest cattle population?
[A] Brazil
[B] India
[C] United States
[D] China
Show Answer
Correct Answer: A [Brazil]
Notes:
As of 2022, Brazil has approximately 238 million cattle according to the Brazilian Institute of Geography and Statistics. Brazil surpassed India in total cattle population. India has around 195 million cattle as per the latest FAO and national statistics. The United States cattle population is about 92 million. China has approximately 95 million cattle.
18. Which state do the silk centres Dharmavaram and Venkatagiri belong to?
[A] Andhra Pradesh
[B] Karnataka
[C] Telangana
[D] West Bengal
Show Answer
Correct Answer: A [Andhra Pradesh]
Notes:
Dharmavaram and Venkatagiri are well-known silk weaving centres in Andhra Pradesh. The older grouping that included Pochampally and Narayanpet is no longer accurate, because those centres are now in Telangana after the 2014 state bifurcation.
19. Which irrigation method is growing fastest in India as of 2026?
[A] Canal irrigation
[B] Drip irrigation
[C] Tank irrigation
[D] Traditional flood irrigation
Show Answer
Correct Answer: B [Drip irrigation]
Notes:
Drip irrigation in India is projected to grow at a CAGR of 14.4% from 2025 to 2030. In 2030, expected market value is USD 1,897 million. The Government of India promotes drip systems through the Pradhan Mantri Krishi Sinchayee Yojana. Drip irrigation reduces water use, delivering water directly to roots, and raises crop yields. India’s per ton crop water use is 2-3 times the global average.
20. Which state was the Green Revolution initiated in 1968?
[A] Haryana
[B] Punjab
[C] Uttar Pradesh
[D] Rajasthan
Show Answer
Correct Answer: B [Punjab]
Notes:
Punjab was selected as the initial state for the Green Revolution in 1968. The movement focused on wheat production using high-yielding varieties, chemical fertilizers, and modern irrigation. Punjab saw the establishment of research centers and farmer programs during the years 1966–68. The region experienced rapid agricultural growth due to these initiatives.
