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 Indian Economist created Dui-doku?
[A] Raghuram Rajan
[B] I.G.Patel
[C] Jayanti Gosh
[D] Kaushik Basu
Show Answer
Correct Answer: D [Kaushik Basu]
Notes:
Kaushik Basu created Dui-doku, a competitive two-player version of Sudoku. He is an Indian economist who previously worked as a chief economic advisor to Manmohan Singh govt.
12. Which of the below statements is incorrect regarding Market Economy?
[A] Government doesn’t control the factors of production
[B] Government decides which goods to produce and how much
[C] Consumers and producers choice plays a key role in economy
[D] The profit motive is the main reason for increased efficiency
Show Answer
Correct Answer: B [Government decides which goods to produce and how much]
Notes:
Capitalist economy is also known as free market economy. It is based on the private sector and the market forces . The demand supply forces drive the market. Profit motive is the main reason for increased efficiency in private sector.
13. Which among the following is not a sunrise industry?
[A] Information technology
[B] Food Processing
[C] Healthcare
[D] cotton industry
Show Answer
Correct Answer: D [cotton industry]
Notes:
Sunrise industry is a term used for a sector that is just in its infancy but shows promise of a rapid boom. The industry is typically characterized by high growth rates, a high degree of innovation, and generally has plenty of public awareness about the sector, and investors get attracted to its long-term growth prospects.
Except for the cotton industry, all the others are part of the sunrise industry as the cotton industry is not a new industry in India.
14. Where was the first train called Red Hill Railway was launched in 1837 in India?
[A] Bombay
[B] Kolkata
[C] Madras
[D] Hyderabad
Show Answer
Correct Answer: C [Madras]
Notes:
The first train ran from Red to Chintadripet bridge in Madras and in 1837. It was called Red Hill Railway. It was used for freight transport.
15. Which of the following crops is commonly established by direct seeding?
[A] Rice
[B] Pulses
[C] Groundnuts
[D] Sunflower
Show Answer
Correct Answer: B [Pulses]
Notes:
Direct seeding means sowing seed directly in the field without raising seedlings in a nursery and transplanting them later. Pulses are commonly sown this way, as are groundnuts and sunflower. Rice is usually transplanted in traditional cultivation, though direct-seeded rice is also practiced in some areas as a newer method.
16. Where is the Directorate of Cashew and Cocoa Development (DCCD) located?
[A] Pune
[B] Hyderabad
[C] Kolkatta
[D] Kochi
Show Answer
Correct Answer: D [Kochi]
Notes:
Directorate of Cashew and Cocoa Development (DCCD), Kochi is Responsible for plantation crops, other than coconut and areca nut.
17. What is animal husbandry’s contribution to India’s Gross Value Added?
[A] 5.50%
[B] 5.73%
[C] 6.17%
[D] 4.90%
Show Answer
Correct Answer: B [5.73%]
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.
18. What is the Miyawaki method of afforestation?
[A] A technique to prevent deforestation by forest protection
[B] A monoculture tree-planting method for commercial yield
[C] A dense planting method using native species for rapid urban forest growth
[D] An eco-friendly selective logging process
Show Answer
Correct Answer: C [A dense planting method using native species for rapid urban forest growth]
Notes:
The Miyawaki method was developed by Japanese botanist Akira Miyawaki. This method involves planting 20 to 30 native species in close proximity at high density. Forests grown using this method mature in 20 to 30 years. Miyawaki forests become self-sustaining within 2 to 3 years and require minimal maintenance after establishment. The technique increases biodiversity and carbon sequestration in urban and degraded areas.
19. What percentage of India’s water resources is used for irrigation purposes?
[A] 84%
[B] 50%
[C] 62%
[D] 75%
Show Answer
Correct Answer: A [84%]
Notes:
According to the Union Water Resources Ministry, about 84% of India’s available water resources are utilized for irrigation. Approximately 688 billion cubic meters of water out of 813 billion cubic meters is used by agriculture. Groundwater fulfills about 62% of irrigation needs, while surface water is used for the remainder. Demand is expected to grow further by 2025 and 2050.
20. Which is the largest tobacco-producing state in India?
[A] Tamil Nadu
[B] Karnataka
[C] Gujarat
[D] Madhya Pradesh
Show Answer
Correct Answer: C [Gujarat]
Notes:
Gujarat is the largest tobacco-producing state in India, accounting for about 45% of the country's total tobacco output. Andhra Pradesh is usually the next major producer, contributing around 20%. This makes Gujarat the correct answer among the given options.
