Indian Economy MCQs

Notes:
The Integrated Action Plan (IAP) is aimed at bridging the development deficit in the extremely backward areas that are affected by Left Wing Extremism.

Notes:
Department of Industrial Policy and Promotion is mandated to receive FDI proposals under the Government Route since 2017. It operates under the Ministry of Commerce and Industry. The Foreign Investment Facilitation Portal is managed by the Department for Promotion of Industry and Internal Trade, previously DIPP. FDI proposals in single brand retailing must be filed online with this department, complying with FEMA regulations.

Notes:
Inflation Indexed Bonds (IIBs) are pegged to the Consumer Price Index (CPI). This means their interest payments and principal value adjust based on changes in the CPI, which measures the average change over time in the prices paid by consumers for goods and services. IIBs aim to protect investors from inflation, ensuring that the purchasing power of their returns is maintained. In India, the CPI is the primary measure for these bonds, while the Wholesale Price Index (WPI) measures price changes at the wholesale level and is not used for IIBs.

Notes:
A debenture is a long-term debt instrument used by corporations and governments to raise capital, typically with a maturity of more than one year. In contrast, money market instruments, such as Cash Management Bills, Certificates of Deposit, and Commercial Papers, are short-term financial instruments with maturities of one year or less. Money market instruments are characterized by high liquidity and low risk, while debentures are considered capital market instruments.

Notes:
Shares outstanding equals total issued shares minus treasury shares. Treasury shares are shares repurchased by the company and held in its treasury. Shares outstanding are used in calculating market capitalization and earnings per share. Only shares held by external shareholders are considered outstanding. This figure changes when the company buys back or issues new shares.

Notes:
The labour force participation rate measures the proportion of the working-age population that is either employed or actively seeking employment. It is calculated as the percentage of people aged 15 or above who are either working or looking for work. It does not include persons not actively searching for jobs. The rate is published by the Ministry of Labour and Employment in India.

Notes:
As of 2024, the sugar industry is the largest in India’s cooperative sector. Nearly 50% of sugar mills in India operate under cooperative societies, especially in Maharashtra. Production increased significantly in recent years due to government support, favorable policies, and ethanol blending programs. Maharashtra and Uttar Pradesh contribute the majority of cooperative sugar factories. Cooperative expansion continued through 2023-24.

Notes:
Utility is the power or capacity of a commodity to satisfy a human want or it is the amount of satisfaction that a person gets from the consumption of a good or service. It is measured in utils.

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.

Notes:
In a socialist economy, taxes are high on the people as the state has to provide all the goods and services to all. The other options given are the advantages of the system.