Economics · Banking Financial Awareness

Indian Economy and Policy

1,777 Questions

Indian economy and policy questions cover the structural dynamics and regulatory measures shaping the national market. Topics include foreign direct investment, taxation reforms, and government initiatives for growth. This section is highly relevant for competitive exams requiring economic awareness.

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Indian Economy and Policy Questions

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

____ Indian Aspiration Fund was launched by ___ in August 2015 to boost the start-up funds ecosystem in the country.

  1. Rs. 5,000 Crore; IDBI

  2. Rs. 2,000 Crore; SIDBI

  3. Rs. 2,000 Crore; RBI

  4. Rs. 3,500 Crore; ICICI
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In order to boost the startup ecosystem in the country, finance minister Arun Jaitley has announced the launch of India Aspiration Fund (IAF) with an initial corpus of Rs. 2,000 crore. IAF is managed by Small Industries Development Bank of India (SIDBI) for promotion, financing and development of micro, small and medium enterprises (MSME) sector.

Multiple choice organisation of commerce and management micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes world bank

Major activity(ies) of SIDBI is/are __________.

  1. Refinancing loans

  2. Extension of seed capital

  3. Development of industrial areas

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Major Activities of SIDBI
  • SIDBI refinances loans extended by the primary lending institutions to small scale industrial units, and also provides resources support to them.
  • SIDBI discounts and rediscounts bills arising from sale of machinery to or manufactured by industrial units in the small scale sector.
  • To expand the channels for marketing the products of Small Scale Industries (SSI) sector in domestic and international markets.
  • It provides services like leasing, factoring etc. to industrial concerns in the small scale sector.
  • To promote employment oriented industries especially in semi-urban areas to create more employment opportunities and thereby checking migration of people to urban areas.
  • To initiate steps for technological up-gradation and modernisation of existing units.
  • SIDBI facilitates timely flow of credit for both term loans and working capital to SSI in collaboration with commercial banks.
Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Identify the impact of British economic policies on Indian economy.

  1. Low level of economic development

  2. agricultural backwardness

  3. Both a and b

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 The colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hindered .

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Identify the impacts of British colonial policies on Indian economy.

  1. Deindustrialisation of Indian Economy

  2. Unfavourable Foreign Trade

  3. Lack of Irrigation facilities and resources

  4. Both a and b
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hindered .

The economic policies followed by the British led to the rapid transformation of India’s economy into a colonial economy whose nature and structure were determined by the needs of the British economy.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

The exploitative policies of British government created a lopsided structure in the Indian Economy by reducing it to a supplier of raw material and consumer of finished industrial products imported from _____.

  1. USA

  2. India

  3. Britain

  4. all of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

During British rule, India was forced to export raw materials to Britain and import finished industrial goods from Britain, creating a lopsided colonial economy.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

The Indian Economy was ________ in order to promote British industries.

  1. boomed

  2. exploited

  3. inhanced

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The main focus of the economic policies pursued by the colonial government was to make India a mere supplier of raw materials for Britain's own industrial base which was undergoing rapid expansion. The Indian Economy was exploited in order to promote British industries.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

The main focus of the economic policies pursued by the colonial government was to make India a ____________________. 

  1. mere supplier of raw material for Britain's own industrial base

  2. mere supplier of goods for Britain's own industrial base

  3. mere supplier of human services for Britain's own industrial base.

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The main focus of the economic policies pursued by the colonial government was to make India a mere supplier of raw materials for Britain's own industrial base which was undergoing rapid expansion. The Indian Economy was exploited in order to promote British industries.

Hence, A is the correct option.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

When India attained independence in 1947, its economy was ?

  1. Underdeveloped

  2. Developed

  3. Developing

  4. Partially developed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Due to centuries of colonial exploitation, the Indian economy was largely stagnant and underdeveloped in terms of industrial capacity and infrastructure at the time of independence in 1947.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

In India during the British rule, railways were developed for _____________.

  1. creating better infrastructure for the development of the Indian economy

  2. the export of raw materials from India to England for British industries

  3. providing better transport facilities to Indians

  4. developing trade and commerce in India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In India, British developed railway because of their own interest. They wanted to export raw material from inner parts of India to their country and also to supply their manufactured products in interior hinterland. In this process they need to develop railway infrastructure in India.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

What was the result of the fundamental change in the Indian economy after the British rule began?

  1. Indian Economy transformed to net supplier of raw materials

  2. Indian Economy transformed to net supplier of manufactured goods

  3. Indian Economy transformed to net supplier of banking services

  4. Indian Economy transformed to net supplier of IT services
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

British's profits came primarily from the sale of Indian goods abroad. It tried constantly to open new markets for Indian goods in Britain and other countries. Thereby, it increased the export of Indian manufactures and thus encouraged their production.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Why was the Indian economy developing at a lower pace under the British Colonial Rule?

  1. The British couldn't develop India due to numerous wars

  2. The British were concerned with the development of their home country and used India only as a resource haven.

  3. The British were concerned with the development of other countries the British ruled

  4. None of the Above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Colonial rule transformed India's agriculture sector to a mere supplier of raw materials for the British industries. This not only affected the production of the agricultural sector but also ruined the small manufacturing units like handicrafts and cotton industries. There was very minimal appreciation of the labor forces and compensation of the employees by the colonial regime therefore the workers motivation was very low, with low motivation the workers input will definitely go down low input will obviously lead to lower rates of industrials potential output therefore hindered .

The economic policies followed by the British led to the rapid transformation of India’s economy into a colonial economy whose nature and structure were determined by the needs of the British economy.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

When India became Independent, it had____.

  1. low per capita income

  2. low saving and investment

  3. poor use of productive resources

  4. all of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Nearly 85% of the country's population lived in villages where livelihood completely depended on agriculture. The Indian economy on the eve of independence with respect to agriculture was disheartening. The most important Indian sector was facing massive stagnation and continuous deterioration. Our economy had been a victim of enormous exploitation. Our natural resources, iron ores, gold mines, wealth and manpower was subject to intense exploitation. Due to these atrocities, the Indian economy on the eve of independence showed poor/low economic growth,low per capita income,no saving and investment.

Multiple choice economic development & planning concept of development economics

Indian Economy may be viewed as _____________.

  1. undeveloped Economy

  2. developing Economy

  3. developed Economy

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India is termed as a Developing Economy because of its initiative for determined planned economic development. India aims to achieve a greater economic growth and development.

Multiple choice economic development & planning concept of development economics

Mark the correct statement.

  1. India is a purely Capitallist Economy

  2. India is a Stagnant Economy

  3. India is a Developing Economy

  4. India is a resources poor-economy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

India is a Developing Economy- this is the correct statement. India is termed as a Developing Economy because of its initiative for determined planned economic development. India aims to achieve a greater economic growth and development.

Multiple choice economic development & planning concept of development economics

India is termed as a Developing Economy because of its ________________.

  1. initiative for determined planned economic development

  2. rapid population growth

  3. predominant agrarian set-up

  4. slow Industrial progress
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

India is termed as a Developing Economy because of its initiative for determined planned economic development.India aims to achieve a greater economic growth and development.