Indian Economy MCQs

Notes:
In a capitalist economy, prices are set by demand and supply, collectively known as market forces. Government intervention is minimal. Prices fluctuate based on consumer preference and availability of goods, ensuring efficient allocation of resources within the economy.

Notes:
The Rolling Plan for backward countries was suggested by Gunnar Myrdal. The rolling plan consists of three different steps, First, a plan for the current year which includes the annual budget. Second, a plan fixed for a fixed number of years, say three-four or five years. As per the requirement of the economy, it is revised every year. Third a perspective plan for 10, 15, or 20 years.

Notes:
India is the world’s largest importer of edible oil. In 2025, India’s edible oil imports were valued at 21.8 billion, accounting for 18.9% of global imports. India imports about 16.7 million tonnes annually, with major suppliers being Indonesia and Malaysia for palm oil, and Argentina and Brazil for soybean oil. China is the second-largest importer, with 14.6 billion in imports.

Notes:
The Mission for Integrated Development of Horticulture (MIDH) comprises several sub-schemes and institutions, including the National Horticulture Mission (NHM), Horticulture Mission for North East and Himalayan States (HMNEH), National Horticulture Board (NHB), Coconut Development Board (CDB), and Central Institute of Horticulture (CIH), Nagaland. All five listed are correctly associated with horticulture development in India.

Notes:
The livestock sector is a major driver of India’s economy, contributing approximately 5.5% to 5.73% of the total National Gross Value Added (GVA) as of 2023-24. Within the agriculture and allied sectors, animal husbandry’s contribution is significant, accounting for over 30% of the Agricultural GVA and driving rural income growth. 

Notes:
According to the India State of Forest Report 2023, India’s tree cover outside recorded forest areas is 3.41% of the country’s geographical area. Tree cover refers to patches of trees covering an area of one hectare or more outside government-notified forests. The report states total tree cover at 95,748 sq km in 2023, marking an increase over the 2021 estimation.

Notes:
In India’s installed electricity-generation capacity mix, fossil fuels account for the largest share. Among non-fossil sources, solar power has become the biggest contributor, with installed capacity higher than hydro, wind and nuclear power. Official capacity reports of the Central Electricity Authority show solar capacity ahead of hydro as well as other renewable and non-renewable clean sources. Therefore, solar power is correctly identified as the second largest source after fossil fuels.

Notes:
Gir, Saahiwal, and Rathi are indigenous Indian cow breeds, widely reared in various regions of India. Jersey is a breed originally from the British Channel Island of Jersey and is not native to India. Thus, only 1, 2, and 4 are Indian breeds, while 3 (Jersey) is not.

Notes:
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is an apex organization of marketing cooperatives for agricultural produce in India, under the Ministry of Agriculture, Government of India. It was founded on the birthday of Mahatma Gandhi on 2 October 1958 to promote the trade of agricultural produce and forest resources across the nation. NAFED headquarters in New Delhi.

Notes:
The Yellow Revolution in India aimed at increasing domestic production of edible oils by focusing on nine major oilseeds, including groundnut, sunflower, castor, niger, and linseed. The listed options all fall within these targeted species; thus, all five mentioned oil seeds were included as part of the Yellow Revolution push for oilseed self-sufficiency.