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 of the following Five-Year Plans was terminated one year before its completion? (UPSC Prelims 1985)
[A] Second
[B] Third
[C] Fourth
[D] Fifth
Show Answer
Correct Answer: D [Fifth]
Notes:
The fifth plan was terminated by the Janta Government in 1977-78 and they launched their own sixth plan for the period 1978-83 and called it ” rolling plan” later the Janta government came down and Indira Gandhi again became prime minister of India who immediately discarded the sixth plan by the Janta government and launched her own plan for year 1980-85. The year 1978-79 was restored back to fifth plan of 1974-79.
12. Real National income increases in which of the following circumstances?
[A] When Prices of goods increases
[B] When saving of people increases
[C] When Inflation increases prices and taxes
[D] When the production of goods and services increases
Show Answer
Correct Answer: D [When the production of goods and services increases]
Notes:
As the calculation of national income is the total value of all goods and services in an economy the real increase happens when the output production increases. The rate change won’t affect because while calculating real national income we take into account the prices of base year. So even the inflation effect is also removed.
13. Which of the following activities comes under the tertiary sector?
[A] Agriculture, dairying,forestry
[B] Manufacturing of automobiles,construction of houses
[C] Communication and banking
[D] None of the above
Show Answer
Correct Answer: C [Communication and banking]
Notes:
The service sector is concerned with the intangible aspect of offering services to consumers and businesses. It involves the retail of manufactured goods. It also provides services, such as insurance and banking.
14. Which sector do the red collar workers belong to?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] None of the above
Show Answer
Correct Answer: A [Primary sector]
Notes:
The people involved in the
Primary sector – red collar,
Secondary sector – blue-collar and
Tertiary sector – white collar.
15. Which is the top Mustard producing state in India?
[A] Maharastra
[B] Madhya Pradesh
[C] Rajasthan
[D] Gujarat
Show Answer
Correct Answer: C [Rajasthan]
Notes:
Rajasthan is the top Mustard and Rapeseed Producing state. It produces approximately 48.12% of Mustard and Rapeseed. It is followed by Madhya Pradesh and Haryana.
16. Which animal is globally raised in the highest numbers?
[A] Goat
[B] Cow
[C] Chicken
[D] Duck
Show Answer
Correct Answer: C [Chicken]
Notes:
Global poultry meat production is projected at 109.6 million metric tons in 2026. Chicken is raised more than any other animal worldwide. The United States forecasts chicken production at 22 million tons. China projects 16.7 million tons, Brazil 15.7 million tons, and the European Union 11.9 million tons. Chicken consumption per capita outpaces beef and pork globally.
17. Which organization implements the Poultry Venture Capital Fund (PVCF) scheme in India?
[A] NABARD
[B] ICAR
[C] Ministry of Agriculture
[D] Ministry of Commerce and Industry
Show Answer
Correct Answer: A [NABARD]
Notes:
The Poultry Venture Capital Fund (PVCF) scheme is implemented through NABARD. It is a Government of India initiative under the Department of Animal Husbandry and Dairying to support poultry entrepreneurship and expand poultry farming activity.
18. Which Indian state is the largest producer of jute?
[A] Bihar
[B] Punjab
[C] West Bengal
[D] Uttar Pradesh
Show Answer
Correct Answer: C [West Bengal]
Notes:
West Bengal contributes over 60% of India’s jute production. In 2021-22, it produced 8,182.95 thousand bales of jute. The state’s jute cultivation covers approximately 4.183 lakh hectares. West Bengal is consistently ranked first in jute output among Indian states, and its jute industry is centered around the Hooghly River. Bihar and Assam hold the subsequent ranks in jute production by volume.
19. Who is called an Original Equipment Manufacturer (OEM)?
[A] Manufacturer of original automobile parts
[B] Manufacturer of goods used by another company
[C] Assembler of finished goods
[D] None of the above
Show Answer
Correct Answer: B [Manufacturer of goods used by another company]
Notes:
An original equipment manufacturer (OEM) produces products or components purchased by another company and retailed under the purchasing company’s brand name. OEMs often manufacture parts used in assembling final goods by another company. This practice is common in automotive and electronics industries. The term applies when goods supplied become components in finished products sold to consumers.
20. What percentage of India’s coal is produced by Coal India Limited?
[A] 75%
[B] 80%
[C] 85%
[D] 90%
Show Answer
Correct Answer: B [80%]
Notes:
Coal India Limited produced about 781.07 million tonnes of coal in FY 2024-25 out of India’s total coal production of 1047.67 million tonnes. Coal India Limited is headquartered in Kolkata, West Bengal. The company contributes approximately 80% to India’s overall coal output and is the world’s largest coal-producing corporation. It was founded in 1975.
