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 these is used as promise from a bank to make a payment assuming certain conditions are met?
[A] Cash Credit
[B] Over Draft
[C] Letter of Credit
[D] Term Loan
Show Answer
Correct Answer: C [Letter of Credit]
Notes:
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
12. Who among the following was the first woman to head an Indian public sector bank?
[A] Shikha Sharma
[B] Chanda Kochar
[C] Arundhati Bhattacharya
[D] Ranjana Kumar
Show Answer
Correct Answer: D [Ranjana Kumar]
Notes:
Ranjana Kumar became the first woman to head an Indian public sector bank when she was appointed Chairman and Managing Director of Indian Bank. This made her a notable first in the history of public sector banking in India. Arundhati Bhattacharya is also a landmark figure, but she is known as the first woman Chairperson of State Bank of India, not the first woman to head any public sector bank. Hence, the correct answer is Ranjana Kumar.
13. 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.
14. What was India’s share in world tea exports in 2024?
[A] More than 40%
[B] Between 20% and 30%
[C] About 13%
[D] Less than 5%
Show Answer
Correct Answer: C [About 13%]
Notes:
According to Tea Board India’s 2024 data, India exported 256 million kg of tea, giving it about 13% of global tea exports. India remained among the major tea-exporting countries, alongside Kenya, Sri Lanka and China. The share is far below 20% but clearly higher than 10%, making about 13% the best answer. This reflects India’s strong position in the global tea trade during 2024.
15. Which of the following is considered as transfer payment?
[A] College fees
[B] Bank loan
[C] Bonus of employees
[D] Unemployed allowance by the government
Show Answer
Correct Answer: D [Unemployed allowance by the government]
Notes:
Transfer payment– is the payment by the government in grants, allowances, pensions etc to people such as pensioners, widows, sick or unemployed people or others with little or no income. It does not include subsidies given by the government .
Ex: PM KISAN amount transfer
16. What is the term for skipping manufacturing and moving from agriculture to services?
[A] Structural Stagnation
[B] Dutch Disease
[C] Leapfrogging Growth
[D] Premature Deindustrialization
Show Answer
Correct Answer: D [Premature Deindustrialization]
Notes:
Premature Deindustrialization describes economies that reduce manufacturing share at low income levels. India experienced this by transitioning directly from agriculture to services, bypassing industrial manufacturing growth. This term was coined to explain such patterns in developing countries.
17. 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.
18. Where is the Central Seed Testing and Referral Laboratory located?
[A] Dehradun
[B] Ladakh
[C] Varanasi
[D] Pune
Show Answer
Correct Answer: C [Varanasi]
Notes:
The Central Seed Testing and Referral Laboratory was established in 2005 at Varanasi, Uttar Pradesh. The laboratory serves as a reference institution for seed testing in India. It operates under the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India.
19. Which crop has a variety called Arabica?
[A] Tea
[B] Coffee
[C] Maize
[D] Cotton
Show Answer
Correct Answer: B [Coffee]
Notes:
Coffea arabica is a species of coffee. Around 70% of global coffee production is Arabica. India produces Arabica coffee mainly in Karnataka, Kerala, and Tamil Nadu. The Coffee Board of India was established in 1942. Indian Arabica is known for its mild flavor and aroma. Arabica coffee plants grow best at elevations between 600 and 2000 meters above sea level.
20. Which country exports the most palm oil to India?
[A] Malaysia
[B] Indonesia
[C] Thailand
[D] Papua New Guinea
Show Answer
Correct Answer: B [Indonesia]
Notes:
Indonesia exported approximately 4.86 billion worth of palm oil to India in 2023. Indonesia accounted for about 59% of India’s total palm oil imports that year. Malaysia was the second-largest supplier at 2.63 billion, representing 32%. Thailand supplied 784 million and Papua New Guinea 265 million worth of palm oil to India in 2023.
