Indian Economy MCQs

Notes:
Open Market Operations refer to the purchase and sale of the Government securities (G-Secs) by RBI from / to market.

Notes:
Thermal power plants in India use large volumes of water mainly for cooling and steam production. The Central Electricity Authority monitors water consumption by thermal power stations annually. Compared to paper, textiles, and engineering, thermal power contributes the highest industrial water use. India’s thermal electricity generation capacity exceeds 230 GW as of 2023, making it the major industrial water consumer.

Notes:
CRR is the portion of deposits banks must keep with the Reserve Bank of India. When CRR increases, banks have less money to lend, which lowers the money supply. With reduced funds available, lending interest rates rise. Reduced money supply and higher lending rates lead to lower inflation. As of 2024, RBI uses CRR as a monetary policy tool for credit and inflation control.

Notes:
The fifth plan was terminated by the Janta Government in 1977-78 and they launched their own sixth plan for the period 1978-83 and called it ” rolling plan” later the Janta government came down and Indira Gandhi again became prime minister of India who immediately discarded the sixth plan by the Janta government and launched her own plan for year 1980-85. The year 1978-79 was restored back to fifth plan of 1974-79.

Notes:
The textile industry is the largest employer in India after agriculture. It directly employs about 45 million people as of 2023. Including allied sectors, total employment exceeds 100 million. The industry includes handlooms, powerlooms, spinning, and garment manufacturing. The Indian textile and apparel market was valued at USD 223 billion in 2021 and has significant export share globally.

Notes:
Bangladesh, known for its ‘Golden Fiber’, is the world’s second-largest jute producer after India. It strongly competes with India in global jute exports, often surpassing India due to export restrictions and price competitiveness. Both nations make up over half the worldwide jute market.

Notes:
As per data from Union Budget 2026-27 and Ministry notifications, Micro, Small and Medium Enterprises account for about 35.4% of total manufacturing sector output in India. There are 7.47 crore MSME units in India. MSMEs also contribute 48.58% to exports and 31.1% to GDP. Earlier, MSMEs’ share in output was 40% in 1998-99.

Notes:
Bhutan is the correct answer. The country follows a ‘high value, low volume’ tourism policy and charges a Sustainable Development Fee from visitors to help finance environmental protection, cultural preservation, and infrastructure development. The current standard SDF is US$100 per person per night for most foreign visitors, while Indian nationals pay a preferential rate of Nu./INR 1,200 per person per night. This fee is a key part of Bhutan’s tourism model.

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:
The quaternary sector consists of intellectual activities often associated with technological innovation. It is sometimes called the knowledge economy.