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. ‘Terms of trade’ between agriculture and industry has reference to? (UPSC Prelims 1992)
[A] Relative price movements between the two sectors
[B] Relative quantities of production in the two sectors
[C] The extent of trade existent between the two sectors
[D] Relative international valuation of the agricultural produce in contrast to the industrial produce
Show Answer
Correct Answer: A [Relative price movements between the two sectors]
Notes:
Terms of trade between agriculture and industry can be thought of as the ratio of prices of agricultural products to that of prices of industrial products. This is analogous to International Terms of Trade that are given by the formula: (Price of exports)/ (price of imports).
12. Which country does Economist Dambisa Moyo belong to?
[A] Zambia
[B] Namibia
[C] Africa
[D] None of the above
Show Answer
Correct Answer: A [Zambia]
Notes:
Zambian-born economist Dambisa Moyo focuses on wealth and poverty in the global economy. A key critic on development aid for low-income economies, her work has earned her the Friedrich Hayek Institute’s lifetime achievement award.
13. Which item is the largest contributor to Indian imports?
[A] Gems and precious metals
[B] Petroleum fuels and oils
[C] Electrical machinery and equipment
[D] Iron and steel
Show Answer
Correct Answer: B [Petroleum fuels and oils]
Notes:
Petroleum fuels and oils consistently top Indian import categories, historically accounting for about 27% of total imports. Main sources include Russia, UAE, and Saudi Arabia. Gems and electrical machinery rank next, but well below petroleum products in share, per recent official trade data and analyses.
14. What is the Horticulture premium in the PM Fasal Bima Yojna?
[A] 5%
[B] 2%
[C] 4%
[D] 6%
Show Answer
Correct Answer: A [5%]
Notes:
The PM Fasal Bima Yojana is launched to provide crop insurance to farmers. Ministry of agriculture is implementing it. All crops are covered in it. Kharif premium is 2%, Rabi is 1.5% and Horticulture is 5%.
15. Which Indian state has the longest coastline?
[A] Andhra Pradesh
[B] Maharashtra
[C] Gujarat
[D] Tamil Nadu
Show Answer
Correct Answer: C [Gujarat]
Notes:
Gujarat’s coastline measures 2,340.62 km according to revised Indian government figures released in 2023. This makes Gujarat the Indian state with the longest coastline. These measurements utilize advanced satellite imagery and updated calculation methods. Earlier estimates listed the state’s coastline as 1,600 km, but the new data reflects more comprehensive inclusion of coastal features and complex boundaries.
16. Which irrigation method is growing fastest in India as of 2026?
[A] Canal irrigation
[B] Drip irrigation
[C] Tank irrigation
[D] Traditional flood irrigation
Show Answer
Correct Answer: B [Drip irrigation]
Notes:
Drip irrigation in India is projected to grow at a CAGR of 14.4% from 2025 to 2030. In 2030, expected market value is USD 1,897 million. The Government of India promotes drip systems through the Pradhan Mantri Krishi Sinchayee Yojana. Drip irrigation reduces water use, delivering water directly to roots, and raises crop yields. India’s per ton crop water use is 2-3 times the global average.
17. Which states among the following did not enact Agricultural Produce Market Regulation Act (APMRA)?
[A] Andhra Pradesh
[B] Bihar
[C] Kerala
[D] None of the above
Show Answer
Correct Answer: C [Kerala]
Notes:
All wholesale markets for agricultural produce in states that have adopted the Agricultural Produce Market Regulation Act (APMRA) are termed as “regulated markets”.Except for the states Kerala, J & K, and Manipur, all other states have enacted the APMC Act.
18. Rythu Bazar is a direct Agri produce marketing place in which state?
[A] Andhra Pradesh
[B] Telangana
[C] Both
[D] None
Show Answer
Correct Answer: C [Both ]
Notes:
States have introduced direct marketing of farm produce, examples being the Uzhavar Sandhai (Tamil Nadu), the Rythu Bazaar (Andhra Pradesh and Telangana), the Raitha Santhe (Karnataka), the Apni Mandi (Punjab) and the Krushak Bazaar – (Odisha).
19. Which of the following are components of the Blue Revolution in India?
[A] National Fisheries Development Board (NFDB) and its activities
[B] Strengthening of Database & Geographical Information System of the Fisheries Sector
[C] Development of Inland Fisheries and Aquaculture
[D] None of the above
Show Answer
Correct Answer: A [National Fisheries Development Board (NFDB) and its activities]
Notes:
The Blue Revolution in India refers to the planned development of the fisheries sector. Its components include the National Fisheries Development Board and its activities, strengthening fisheries databases and GIS, and development of inland fisheries and aquaculture. Hence, statements 1, 2 and 3 are correct.
20. Which among the following related to the green revolution?
[A] Use of ground water for irrigation
[B] Growing more types of crops
[C] Increasing of forests
[D] Use of High Yielding variety of seeds
Show Answer
Correct Answer: D [Use of High Yielding variety of seeds]
Notes:
The Green Revolution in India is the period of time when agriculture was improved. It is mainly due to the adoption of modern methods and technology like high yielding variety seeds (HYV seeds) and Usage of artificial fertilizers.
