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. What is India’s current global ranking in cotton production?
[A] First
[B] Second
[C] Third
[D] Fourth
Show Answer
Correct Answer: B [Second]
Notes:
In 2025, India ranks second worldwide in cotton production, producing about 5.1 million tonnes. China ranks first with 7.5 million tonnes. India accounts for 20% of world cotton production and leads in total cotton cultivation area, covering 38% of the world’s cotton-growing land. The expected output for 2025-26 in India is around 23.5-24.5 million bales.
12. In what form do banks maintain CRR with the RBI?
[A] Cash
[B] Government Securities
[C] Gold
[D] All of the above
Show Answer
Correct Answer: A [Cash]
Notes:
CRR requires banks to hold a specified percentage of their deposits as liquid cash with RBI; no securities or gold are allowed.
13. World Tourism Day is celebrated on which of the following days?
[A] September 12
[B] September 25
[C] September 29
[D] September 27
Show Answer
Correct Answer: D [September 27]
Notes:
Since 1980, the United Nations World Tourism Organization has celebrated World Tourism Day as international observances on September 27. This date was chosen as on that day in 1970, the Statutes of the UNWTO were adopted.
14. What happens to corporate bond with a fixed interest rate, if interest rates in nation increase?
[A] decrease in value
[B] Be returned to corporation
[C] remain unchanged
[D] increase in value
Show Answer
Correct Answer: A [decrease in value]
Notes:
If interest rates in nation increase, a corporate bond with a fixed interest rate will decrease in value.
15. Which trade agreement has India finalized with the European Union recently? (UPSC Prelims 1984)
[A] Rupee trade
[B] Free Trade Agreement (FTA)
[C] Barter trade
[D] Unilateral trade
Show Answer
Correct Answer: B [Free Trade Agreement (FTA)]
Notes:
India and the European Union concluded a Free Trade Agreement in 2024. The agreement includes gradual reduction of tariffs and covers approximately $33 billion of Indian exports. The FTA provides deeper access to 144 EU services sub-sectors. The EU is India’s largest trading partner, with bilateral trade reaching $136 billion in 2024-25. The EU represents around 25% of global GDP.
16. Capitalist economic system is the feature of which of these countries?
[A] USA
[B] China
[C] Russia
[D] India
Show Answer
Correct Answer: A [USA]
Notes:
USA has a capitalist system followed in its economy. The prices are controlled by the market forces of demand and supply.
17. Which sector in India achieved double-digit growth in FY 2023-24?
[A] Agriculture sector
[B] Mining sector
[C] Manufacturing sector
[D] Service sector
Show Answer
Correct Answer: D [Service sector]
Notes:
The service sector in India recorded significant double-digit growth in segments like financial services (10.2%) during FY 2023-24. The service sector contributes about 54.4% to India’s GDP, the highest among all sectors, and consistently drives national economic growth.
18. On which date, NITI Aayog was established?
[A] 1 January 2015
[B] 25 January 2016
[C] 14 May 2014
[D] 1 July 2015
Show Answer
Correct Answer: A [1 January 2015]
Notes:
NITI Aayog established on 1 January 2015. Its full form is a National Institution for Transforming India. It replaced the Planning commission.
19. Which of the following is / are type(s) of Gene Modification of seed?
- Mutation of genes
- Insertion of genes
- Deletion of genes
Choose the correct option from codes given below:
[A] 1,2 and 3
[B] 1 and 2 only
[C] 2 only
[D] 1 and 3 only
Show Answer
Correct Answer: A [1,2 and 3]
Notes:
GM crops are the Genetically modified crops that involve mutation, insertion, and deletion of Genes. Genetic material(DNA) in the original seed is altered or artificially introduced using genetic engineering techniques.
20. Which country is currently the world’s top producer of pulses?
[A] Myanmar
[B] Canada
[C] India
[D] China
Show Answer
Correct Answer: C [India]
Notes:
India produced 25.683 million metric tonnes of pulses in 2024-25, the highest globally. Canada’s combined dry pea, lentil, and chickpea output in 2025 is forecast below 5 million metric tonnes. Madhya Pradesh and Maharashtra are India’s leading states for pulses production. India’s annual pulses output is projected to reach 35 million metric tonnes by 2030-31.
