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 is not the advantage of the Socialist Economy?
[A] Equitable distribution of resources
[B] Social development is possible
[C] Government can take steps to focus on important sectors
[D] There is Lack of Innovation.
Show Answer
Correct Answer: D [There is Lack of Innovation.]
Notes:
There is a lack of innovation is the disadvantage of Socialist form of Economy. Since there is no need to take any risk as all the jobs are protected innovation doesn’t take place. Workers are also forced to pursue jobs the government deems fit.
12. Which of the following is not part of the core industry?
1. ELectricity
2. Steel
3. Cement
4. Agriculture
5. Fishing
Choose the correct option from the codes given below:
[A] 1, 3 and 4 only
[B] 4 and 5 only
[C] 1 and 3 only
[D] 1 and 2 only
Show Answer
Correct Answer: B [4 and 5 only]
Notes:
Eight Core Industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers.
The Index of Eight Core Industries is compiled based on the monthly production information received from the Source Agencies. It is a lead indicator of the monthly industrial performance.
13. Which sector contributed most to India’s National Income in 2025-26?
[A] Unorganised
[B] Public
[C] Organised
[D] None of the above
Show Answer
Correct Answer: A [Unorganised]
Notes:
The unorganised sector dominates India’s national income, with over 31 crore registered workers as of Jan 2026. GVA per establishment nearly doubled between 2010-11 and 2023-24. Unorganised sector accounts for a majority workforce, especially in services, reflecting ongoing structural shifts in India’s economy.
14. Which factor is NOT a main reason India is a developing country in 2026?
[A] Rural population depends on agriculture
[B] Lack of rapid industrialization
[C] Scarcity of capital
[D] High per capita income
Show Answer
Correct Answer: D [High per capita income]
Notes:
India is still classified as developing due to low per capita income. Agriculture dependence, limited industrialization, and scarce capital are other reasons. Despite rapid growth, India’s per capita income remains well below high-income thresholds, keeping it in the developing country category per World Bank standards.
15. Which country has the highest per capita sugar consumption?
[A] United States
[B] Germany
[C] Netherlands
[D] Ireland
Show Answer
Correct Answer: A [United States]
Notes:
The United States averages 126.4 grams of sugar consumption per person daily. Germany averages 102.9 grams, Netherlands 102.5 grams, and Ireland 96.7 grams. The United States ranks highest in per capita sugar consumption globally based on latest available dietary studies and food industry data. This value is consistently reported in international health and nutrition databases as of 2023.
16. Consider the following entities associated with the Public Distribution System (PDS) in India:
- Fair Price Shops
- Cooperative Stores
- Military Canteens
- Food Corporation of India (FCI) depots
Which of the above are actual parts of the Public Distribution System?
[A] Only 1 and 4
[B] Only 2 and 3
[C] All of the above
[D] Only 1
Show Answer
Correct Answer: A [Only 1 and 4]
Notes:
The Public Distribution System (PDS) in India primarily includes Fair Price Shops—the retail outlets where food grains are distributed to beneficiaries—and Food Corporation of India (FCI) depots, which manage the storage and movement of grains. Cooperative Stores and Military Canteens operate outside the PDS framework and are not involved in its distribution network.
17. Which state is the largest producer of eggs in India?
[A] Tamil Nadu
[B] Andhra Pradesh
[C] Telangana
[D] West Bengal
Show Answer
Correct Answer: B [Andhra Pradesh]
Notes:
Andhra Pradesh contributed 18.37% of India’s total egg production in 2024-25, according to the Basic Animal Husbandry Statistics 2025. Andhra Pradesh produced the highest number of eggs among all Indian states. Annual total egg production in India reached 149.11 billion during 2024-25. The next largest producers were Tamil Nadu at 15.63% and Telangana at 12.98%.
18. Which is the most produced silk variety in India?
[A] Mulberry
[B] Eri
[C] Tasar
[D] Muga
Show Answer
Correct Answer: A [Mulberry]
Notes:
India produced 41,121 metric tonnes of raw silk in FY25. Mulberry silk accounts for approximately 95% of India’s total silk production. Karnataka produces nearly 45% of the country’s mulberry silk. The other major varieties—Eri, Tasar, and Muga—contribute much smaller shares to overall output.
19. What is the science of rearing bees known as?
[A] Seraculture
[B] Apiculture
[C] Ariculture
[D] Revaculture
Show Answer
Correct Answer: B [Apiculture]
Notes:
The raising and care of bees for commercial or agricultural purposes is known as apiculture. It is the maintenance of honeybee colonies, commonly in hives, by humans. The beekeeper take care of the bees in order to collect honey and other products of the hive (including beeswax, propolis, pollen, and royal jelly) to pollinate crops. The location where bees are kept is called an apiary or bee yard.
20. When was the first woollen textile mill established in India?
[A] 1876
[B] 1900
[C] 1899
[D] 1857
Show Answer
Correct Answer: A [1876]
Notes:
The first woollen textiles mill was set up in 1876 at Kanpur, because Kanpur was the principal depot for the British Indian Army. The industry did not flourish because of a short winter and long summer in India leading to inadequate demand. Also, the textiles produced were of poor quality. After independence, there was rapid development of the industry mainly as an export-oriented industry.
