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 measure is crucial for sustaining India’s service sector growth?
[A] Increase protectionist measures
[B] Focus solely on domestic consumption
[C] Expand digital infrastructure and high-speed connectivity
[D] Eliminate all foreign direct investment
Show Answer
Correct Answer: C [Expand digital infrastructure and high-speed connectivity]
Notes:
According to the Economic Survey 2025-26, India’s services sector contributed 56.4% to Gross Value Added in FY25. Services exports reached USD 387.5 billion in FY25. The Survey reports that expanding digital infrastructure and high-speed connectivity is essential for supporting digitally delivered services. Government focus is on scaling infrastructure, with projected data center capacity of 8 GW by 2030. Digital enablement is highlighted as critical for sectoral growth.
12. Which issue caused the collapse of Doha Round WTO talks in July 2008?
[A] Elimination of agricultural export subsidies
[B] Special safeguard mechanism for developing countries in agriculture
[C] Tariff elimination timelines in industrial products
[D] Intellectual property rights protections
Show Answer
Correct Answer: B [Special safeguard mechanism for developing countries in agriculture]
Notes:
The Doha Round negotiations collapsed in July 2008 over disagreements regarding the special safeguard mechanism (SSM) for developing countries in agriculture. The SSM was meant to allow developing nations to raise tariffs temporarily in response to import surges. India and China sought more flexibility, which the United States and others opposed, leading to a breakdown.
13. What does ‘expropriation’ mean in Foreign Direct Investment (FDI) context?
[A] Government seizes a foreign firm’s property, usually with compensation
[B] Investor acquires property rights in host country
[C] Estimating potential profits and returns from FDI
[D] Government bans profit repatriation to home country
Show Answer
Correct Answer: A [Government seizes a foreign firm’s property, usually with compensation]
Notes:
Expropriation is the act of a government forcibly taking control of assets owned by foreign investors. International law generally requires such action to serve a public purpose, follow due process, and involve prompt, adequate compensation at fair market value. Expropriation may be direct, such as transfer of title, or indirect, such as regulatory measures that remove economic value without actual seizure.
14. The steel plants of Durgapur, Bhilai & Rourkela were set up under which of the following five year plans?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan
Show Answer
Correct Answer: B [Second Five Year Plan]
Notes:
Second Five Year Plan of 1956 to 1961 was given Importance to an establishment of heavy industries only. The main thrust of industrial development was on iron and steel,Heavy engineering and fertilizer industries. Three new iron and steel plants were located in Bhilai, Durgapur, and Rourkela.
15. Who among the following advocated the adoption of ‘ PURA’ model to eradicate rural poverty?
[A] Dr. A.P.J. Abdul Kalam
[B] Sri Abhijit Sen
[C] Moulana Abdul Kalam Azad
[D] Prof. A.M. Patha
Show Answer
Correct Answer: A [Dr. A.P.J. Abdul Kalam]
Notes:
PURA model to eradicate rural poverty was advocated by Dr. A.P.J. Abdul Kalam, theformer president of India. In PURA model (Provision of urban amenities to rural areas) he discussed about the development of the rural development in India.
16. Which economist is infamous for the series of economic earthquakes that rocked America and the world during his tenure as chairman of the Federal Reserve?
[A] Allen Greenspan
[B] Jerome powell
[C] Paul Volcker
[D] Roy A Young
Show Answer
Correct Answer: A [Allen Greenspan]
Notes:
Alan Greenspan instituted monetary policies during his nineteen years as head of the Federal Reserve that played a significant role in the economic crisis of 2008 and following.
17. Who is the author of “Commodities and Capabilities”?
[A] Amartya Sen
[B] Dr. Raja Chelliah
[C] Dr. P.C.Mehalonibis
[D] Dr. C. Rangarajan
Show Answer
Correct Answer: A [Amartya Sen]
Notes:
Noble Laureate Amartya Sen Published the book Commodities and Capabilities in 1985.
18. In which year, Goods & Services Tax was introduced in India?
[A] 2017
[B] 2016
[C] 2018
[D] 2019
Show Answer
Correct Answer: A [2017]
Notes:
Goods and Services Tax was launched on July 1, 2017. It is an indirect tax used in India on the supply of goods and services.
19. Which Five-year plan was also known as “Gadgil Yojna”?
[A] Second
[B] Third
[C] Fourth
[D] Fifth
Show Answer
Correct Answer: B [Third]
Notes:
The third Five-year plan was made for the duration of 1961 to 1966. This plan is called ‘Gadgil Yojna’ also. The main target of this plan was to make the country economically independent.
20. Which among the following is / are Kharif Crop(s)?
- Maize
- Rice
- Groundnut
- Cotton
Select the correct option from the codes given below:
[A] 1, 2 and 3
[B] 1 and 3
[C] 2 and 4
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: D [1, 2, 3 and 4]
Notes:
The kharif crops include rice, maize, sorghum, pearl millet/bajra, finger millet/ragi (cereals), arhar (pulses), soyabean, groundnut (oilseeds), and cotton.
