Indian Economy JKSSB /SSC MCQ For All Exams 2025

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MCQs on Indian Economy

Table of Contents

1. Who is known as the ‘Father of Indian Planning’?

  1. a) Jawaharlal Nehru
    b) M. Visvesvaraya
    c) Mahatma Gandhi
    d) B.R. Ambedkar
    Answer: b) M. Visvesvaraya
    Explanation: Visvesvaraya is considered the ‘Father of Indian Planning’ due to his early advocacy for planned economic development in India, outlined in his book Planned Economy for India (1934).

2. The concept of ‘Minimum Support Price’ (MSP) in India was introduced in which year?

  1. a) 1965
    b) 1975
    c) 1980
    d) 1990
    Answer: a) 1965
    Explanation: MSP was introduced in 1965 to protect farmers against price fluctuations and ensure minimum earnings for their crops.

3. Which committee recommended the introduction of the Goods and Services Tax (GST)?

  1. a) Kelkar Committee
    b) Rangarajan Committee
    c) Shome Committee
    d) Malhotra Committee
    Answer: a) Kelkar Committee
    Explanation: The Kelkar Committee proposed the GST to simplify India’s indirect tax system and ensure uniform taxation across states.

4. What is the largest contributor to India’s GDP?

  1. a) Agriculture
    b) Industry
    c) Services
    d) Manufacturing
    Answer: c) Services
    Explanation: The services sector accounts for the largest share of India’s GDP, contributing over 50%.

5. Which of the following is an indirect tax?

  1. a) Income Tax
    b) Corporate Tax
    c) Goods and Services Tax (GST)
    d) Wealth Tax
    Answer: c) Goods and Services Tax (GST)
    Explanation: GST is an indirect tax levied on goods and services consumed.

6. What does ‘Inclusive Growth’ mean?

  1. a) Growth concentrated in urban areas
    b) Growth that benefits all sections of society
    c) Rapid industrialization
    d) High agricultural output
    Answer: b) Growth that benefits all sections of society
    Explanation: Inclusive growth ensures equitable opportunities for all citizens.

7. Which program replaced the Planning Commission in India?

  1. a) NITI Aayog
    b) Finance Commission
    c) Ministry of Planning
    d) Economic Advisory Council
    Answer: a) NITI Aayog
    Explanation: NITI Aayog (National Institution for Transforming India) replaced the Planning Commission in 2015 to adopt a bottom-up approach in economic planning.

8. In which year was the LPG (Liberalization, Privatization, and Globalization) policy introduced?

  1. a) 1985
    b) 1991
    c) 2000
    d) 2005
    Answer: b) 1991
    Explanation: The LPG reforms were introduced in 1991 under the leadership of then-Finance Minister Dr. Manmohan Singh to address the balance of payments crisis.

9. What is the main objective of the Pradhan Mantri Jan Dhan Yojana?

  1. a) Skill development
    b) Financial inclusion
    c) Employment generation
    d) Agricultural development
    Answer: b) Financial inclusion
    Explanation: This scheme aims to provide universal access to banking facilities, including savings accounts and credit.

10. What does CRR stand for in banking?

  1. a) Credit Reserve Ratio
    b) Cash Reserve Ratio
    c) Current Reserve Ratio
    d) Capital Reserve Ratio
    Answer: b) Cash Reserve Ratio
    Explanation: CRR is the percentage of a bank’s total deposits that must be maintained as reserves with the Reserve Bank of India.

11. What is the maximum duration of MGNREGA employment guarantee?

  1. a) 100 days
    b) 120 days
    c) 150 days
    d) 200 days
    Answer: a) 100 days
    Explanation: MGNREGA guarantees 100 days of wage employment to rural households.

12. The term ‘Repo Rate’ refers to the rate at which:

  1. a) Banks lend to RBI
    b) RBI lends to banks
    c) Banks lend to customers
    d) Customers deposit money in banks
    Answer: b) RBI lends to banks
    Explanation: Repo rate is the interest rate at which the RBI lends short-term funds to commercial banks.

13. The first Industrial Policy of India was introduced in which year?

  1. a) 1948
    b) 1951
    c) 1965
    d) 1977
    Answer: a) 1948
    Explanation: The Industrial Policy of 1948 marked the beginning of industrial development in independent India.

14. Which organization publishes the ‘World Economic Outlook’?

  1. a) World Bank
    b) IMF
    c) WTO
    d) OECD
    Answer: b) IMF
    Explanation: The International Monetary Fund publishes the World Economic Outlook, analyzing global economic trends.

15. Which state is the largest producer of wheat in India?

  1. a) Punjab
    b) Uttar Pradesh
    c) Haryana
    d) Rajasthan
    Answer: b) Uttar Pradesh
    Explanation: Uttar Pradesh is the leading wheat-producing state in India.

16. Which index is used to measure inflation in India?

  1. a) Consumer Price Index (CPI)
    b) Wholesale Price Index (WPI)
    c) Index of Industrial Production (IIP)
    d) Gross Domestic Product (GDP) Deflator
    Answer: a) Consumer Price Index (CPI)
    Explanation: The CPI measures the average change in prices paid by consumers for goods and services and is the primary indicator of inflation in India.

17. What is the full form of FDI?

  1. a) Foreign Development Investment
    b) Foreign Direct Investment
    c) Financial Direct Investment
    d) Fiscal Development Investment
    Answer: b) Foreign Direct Investment
    Explanation: FDI refers to investments made by a foreign entity directly in a business or production in another country.

18. The headquarters of the Reserve Bank of India (RBI) is located in which city?

  1. a) New Delhi
    b) Mumbai
    c) Kolkata
    d) Chennai
    Answer: b) Mumbai
    Explanation: The RBI headquarters is in Mumbai, though it was initially located in Kolkata.

19. What is the primary objective of the ‘Make in India’ initiative?

  1. a) Boost imports
    b) Encourage domestic manufacturing
    c) Increase service exports
    d) Enhance agricultural productivity
    Answer: b) Encourage domestic manufacturing
    Explanation: Launched in 2014, the ‘Make in India’ initiative aims to make India a global manufacturing hub.

20. Which Five-Year Plan focused on self-reliance and growth with equity?

  1. a) Third Five-Year Plan
    b) Fifth Five-Year Plan
    c) Sixth Five-Year Plan
    d) Seventh Five-Year Plan
    Answer: d) Seventh Five-Year Plan
    Explanation: The Seventh Five-Year Plan (1985–1990) emphasized self-reliance and equitable growth across all sections of society.

21. What is the current base year for GDP calculation in India?

  1. a) 2004-05
    b) 2011-12
    c) 2014-15
    d) 2019-20
    Answer: b) 2011-12
    Explanation: The base year for GDP calculation was revised to 2011-12 to better reflect the economy’s structure.

22. Which of the following taxes is levied by the state government?

  1. a) Income Tax
    b) GST
    c) Property Tax
    d) Customs Duty
    Answer: c) Property Tax
    Explanation: Property tax is a direct tax levied by local or state governments on property owners.

23. What is the name of the report published annually by the World Bank?

  1. a) Human Development Report
    b) Global Economic Prospects
    c) Ease of Doing Business Report
    d) World Trade Outlook
    Answer: c) Ease of Doing Business Report
    Explanation: The Ease of Doing Business Report evaluates regulations affecting businesses across countries.

24. The term ‘Green Revolution’ in India is associated with which sector?

  1. a) Industry
    b) Services
    c) Agriculture
    d) Education
    Answer: c) Agriculture
    Explanation: The Green Revolution refers to increased agricultural production through modern technology, particularly in wheat and rice.

25. Which Indian state has the highest per capita income?

  1. a) Maharashtra
    b) Tamil Nadu
    c) Goa
    d) Kerala
    Answer: c) Goa
    Explanation: Goa has consistently had the highest per capita income due to its thriving tourism and industrial sectors.

26. What is ‘Disinvestment’?

  1. a) Investing in foreign countries
    b) Reducing investments in government schemes
    c) Selling government stakes in public sector enterprises
    d) Increasing public expenditure
    Answer: c) Selling government stakes in public sector enterprises
    Explanation: Disinvestment involves the government selling its shares in public sector enterprises to reduce fiscal deficits and promote efficiency.

27. What is the maximum limit for Foreign Portfolio Investment (FPI) in Indian companies?

  1. a) 49%
    b) 74%
    c) 100%
    d) 51%
    Answer: b) 74%
    Explanation: FPI is allowed up to 74% in most sectors under the automatic route, with some restrictions in sensitive sectors.

28. The ‘Golden Quadrilateral’ project connects which cities?

  1. a) Delhi, Mumbai, Kolkata, Chennai
    b) Delhi, Bengaluru, Hyderabad, Pune
    c) Mumbai, Hyderabad, Jaipur, Lucknow
    d) Delhi, Ahmedabad, Patna, Srinagar
    Answer: a) Delhi, Mumbai, Kolkata, Chennai
    Explanation: The Golden Quadrilateral is a highway network connecting Delhi, Mumbai, Kolkata, and Chennai to improve transportation and trade.

29. The term ‘Twin Deficits’ refers to:

  1. a) Fiscal deficit and revenue deficit
    b) Fiscal deficit and current account deficit
    c) Trade deficit and budget deficit
    d) Revenue deficit and trade deficit
    Answer: b) Fiscal deficit and current account deficit
    Explanation: Twin deficits occur when a country faces both a fiscal deficit and a current account deficit simultaneously.

30. Which scheme aims to provide electricity to all households in India?

  1. a) Saubhagya Scheme
    b) Ujala Scheme
    c) Bharat Nirman
    d) Deendayal Upadhyaya Gram Jyoti Yojana
    Answer: a) Saubhagya Scheme
    Explanation: The Saubhagya Scheme aims to achieve universal household electrification.

31. Which is the largest employer in India?

  1. a) Agriculture
    b) IT Industry
    c) Manufacturing
    d) Railways
    Answer: a) Agriculture
    Explanation: Agriculture employs the largest proportion of India’s workforce, despite its declining share in GDP.

32. Which institution prepares the Human Development Index (HDI)?

  1. a) World Bank
    b) United Nations Development Programme (UNDP)
    c) IMF
    d) WTO
    Answer: b) United Nations Development Programme (UNDP)
    Explanation: UNDP publishes the HDI annually, ranking countries based on life expectancy, education, and per capita income.

33. Which bank was the first to be nationalized in India?

  1. a) Reserve Bank of India
    b) State Bank of India
    c) Punjab National Bank
    d) Allahabad Bank
    Answer: b) State Bank of India
    Explanation: The Imperial Bank of India was nationalized in 1955 and renamed the State Bank of India.

34. What is ‘Stagflation’?

  1. a) High inflation and low unemployment
    b) High inflation and high growth
    c) High inflation and high unemployment
    d) Low inflation and high growth
    Answer: c) High inflation and high unemployment
    Explanation: Stagflation is a situation where inflation and unemployment rise simultaneously, with stagnant economic growth.

35. Which of the following is NOT a direct tax?

  1. a) Income Tax
    b) Corporate Tax
    c) Excise Duty
    d) Wealth Tax
    Answer: c) Excise Duty
    Explanation: Excise duty is an indirect tax levied on the production of goods.

 

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