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. In which city is Banaras Locomotive Works (BLW) located?
[A] Kanpur
[B] Lucknow
[C] Agra
[D] Varanasi
Show Answer
Correct Answer: D [Varanasi]
Notes:
Banaras Locomotive Works (BLW), formerly known as Diesel Locomotive Works, is located in Varanasi, Uttar Pradesh. BLW was established in 1956. It is the largest locomotive manufacturing facility in India. The unit was renamed BLW in October 2020. BLW manufactures electric locomotives including WAP-7 and WAG-9 models. The factory exports locomotives to countries like Sri Lanka, Myanmar, and Mozambique.
12. Which of the following exchange rates is the relative price of foreign goods in terms of domestic goods?
[A] Nominal
[B] Real
[C] Artificial
[D] Fixed
Show Answer
Correct Answer: B [Real]
Notes:
The real exchange rate measures the price of foreign goods relative to the price of domestic goods. Mathematically, the real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate.
13. Which Mumbai market is famous for antiques and vintage items? (UPSC Prelims 1983)
[A] Chor Bazaar
[B] Ima Keithel
[C] Laad Bazaar
[D] Attar Bazaar
Show Answer
Correct Answer: A [Chor Bazaar]
Notes:
Chor Bazaar, located in South Mumbai, is over 150 years old and renowned for antiques, vintage collectibles, old clocks, Victorian furniture, and rare items. It is one of India’s most historic secondhand markets, attracting antique enthusiasts and tourists alike.
14. Which one of the following schemes was intended to tap the black money? (UPSC Prelims 1992)
[A] UTI Bonds
[B] India Development Bonds
[C] Long term operations scheme
[D] SBI Deposit scheme
Show Answer
Correct Answer: B [India Development Bonds]
Notes:
India Development Bonds schemes was intended to tap the black money.
15. What is the recent average gross domestic savings rate for India? (UPSC Prelims 1997)
[A] 15 to 20 per cent
[B] 20 to 25 per cent
[C] 25 to 30 per cent
[D] 30 to 35 per cent
Show Answer
Correct Answer: C [25 to 30 per cent]
Notes:
India’s gross domestic savings rate was 28.37% in 2024. It was 30.7% for FY2024 as per CEIC and ICRA data. The savings rate in 2023 and 2024 has remained consistently within the 25 to 30 per cent range. No official data places the recent rate below or above this range as of June 2024.
16. Which advancement most reduced agricultural emissions while boosting productivity?
[A] Labor-saving machinery and mechanization
[B] Land productivity improvements like better seeds and precision fertilizer use
[C] Increased irrigation systems
[D] Expansion of agricultural land area
Show Answer
Correct Answer: B [Land productivity improvements like better seeds and precision fertilizer use]
Notes:
A 2026 Cornell study of 1961-2021 data reported global agricultural productivity increased by 270% while emissions increased by 45%. Land productivity innovations, such as improved seeds and precision fertilizers, played a greater role in reducing emissions than mechanization. These improvements led to more output per acre, preventing expansion of cultivated land and helping limit overall emissions growth.
17. Where is the Global seed vault located?
[A] Switzerland
[B] Norway
[C] Finaland
[D] Denmark
Show Answer
Correct Answer: B [Norway]
Notes:
The Global seed vault is located at Svalbard, Norway. The seeds are stored here from across the globe to make sure seeds of plants are there in case of an emergency.
18. Which food crop’s production increased most in India after Independence?
[A] Rice
[B] Wheat
[C] Maize
[D] Pulses
Show Answer
Correct Answer: B [Wheat]
Notes:
Wheat production in India increased significantly after the Green Revolution began in 1965-66. The annual wheat output rose from 11 million tonnes in 1966-67 to over 95 million tonnes in 2013-14. Yield per hectare went from about 0.8 tonnes in 1948 to 4.7 tonnes by the late 1970s. The Green Revolution introduced high-yield varieties and expanded irrigation.
19. Consider the following entities associated with the Public Distribution System (PDS) in India:
- Fair Price Shops
- Cooperative Stores
- Military Canteens
- Food Corporation of India (FCI) depots
Which of the above are actual parts of the Public Distribution System?
[A] Only 1 and 4
[B] Only 2 and 3
[C] All of the above
[D] Only 1
Show Answer
Correct Answer: A [Only 1 and 4]
Notes:
The Public Distribution System (PDS) in India primarily includes Fair Price Shops—the retail outlets where food grains are distributed to beneficiaries—and Food Corporation of India (FCI) depots, which manage the storage and movement of grains. Cooperative Stores and Military Canteens operate outside the PDS framework and are not involved in its distribution network.
20. Which are types of mustards cultivated in India?
[A] Mohr (Indian Mustard) and Peeli Sarson only
[B] Mohr, Peeli Sarson, and Toria only
[C] Mohr, Peeli Sarson, Toria, Brown Sarson
[D] Peeli Sarson and Toria only
Show Answer
Correct Answer: C [Mohr, Peeli Sarson, Toria, Brown Sarson]
Notes:
Mohr (Indian Mustard), Peeli Sarson (Yellow Sarson), Toria, and Brown Sarson are cultivated types of mustard in India. Mohr is Brassica juncea, Peeli Sarson is Brassica campestris, and Toria and Brown Sarson are rapeseed cultivars of Brassica campestris. These four types are part of the eight rapeseed-mustard species commonly grown in India.
