Indian Economy MCQs

Notes:
Internal debt includes borrowings by the government within the country, such as Market Loans, Treasury Bills, and Compensation and other bonds. External loans from the World Bank are categorized as external debt since they are sourced from outside the country. Thus, only 1, 2 and 3 are components of India's internal debt.

Notes:
The Agreement on the Application of Sanitary and Phytosanitary Measures – also known as the SPS Agreement is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases. The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals.

Notes:
The World Bank classifies countries by gross national income (GNI) per capita using income bands updated each year. In the FY2027 classification, India continues to fall in the lower-middle-income category. This means India’s GNI per capita is above the low-income threshold but below the upper-middle-income threshold. Hence, among the given options, the correct classification is lower-middle-income economy.

Notes:
The Bringing Green Revolution to Eastern India (BGREI) scheme started in 2010-11. It is implemented as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY). BGREI is operational in Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, eastern Uttar Pradesh, and West Bengal. The main focus of BGREI is to improve the production and productivity of rice in these eastern states using improved technology and crop management.

Notes:
Mixed Banking is the system in which banks undertake activities of commercial and investment banking together.

• These banks give short-term and long-term loans to industrial concerns.
• The banks appoint experts which give valuable advice on various financial issues and also help gauge the financial health of companies.
• Industries don’t have to run to different places for differential financial needs.
• They thus promote rapid industrialization.
• They may however pose a grave threat to liquidity of a bank and lead to bad debts.

Notes:
Financial inclusion refers to providing individuals and businesses, particularly underserved groups, access to affordable financial products and services such as savings, credit, payments, and insurance. The Reserve Bank of India introduced the Financial Inclusion Policy in 2005. The Pradhan Mantri Jan Dhan Yojana was launched in 2014 to increase access to banking facilities across India.

Notes:
The short-term debts and securities sold on the money markets—which are known as money market instruments—have maturities ranging from one day to more.

Notes:
India’s textile and clothing industry contributes 4% per cent to Gross.  Partition of India in 1947 affected Indian cotton and jute industry badly. Most of the weavers who were Muslims migrated to Pakistan.

Notes:
Amit Mitra was conferred the Order of the Rising Sun by the Government of Japan for his contribution to strengthening India-Japan relations. The honour was announced on April 29, 2006.

Notes:
J.C.Kumarappa  was an Indian economist and a close associate of Gandhiji. A pioneer of rural economic development theories, Kumarappa is credited for developing economic theories based on Gandhism– a school of economic thought he coined  “Gandhian Economics”.