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.

Foreign direct investmentGST impactEconomic reformsTrade policyGovernment economic initiatives

Indian Economy and Policy Questions

Multiple choice economics agriculture sector profile of indian agriculture and agricultural marketing role of agriculture sector foreign trade in india

The share of agriculture in total GDP has over the years ______.

  1. decreased

  2. increased

  3. remained constant

  4. no specific trend
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As an economy develops, the share of agriculture in GDP typically declines while the share of industry and services increases. This is a standard structural transformation pattern in economic development.

Multiple choice economics agriculture sector profile of indian agriculture and agricultural marketing role of agriculture sector foreign trade in india

All of the following statements except one are correct about the foreign trade policy. Identify the incorrect statement.

  1. Certain thrust areas like agriculture, handlooms, handicrafts, etc have been identified.

  2. Vishesh Krishi Upaj Yojana started in 2004.

  3. 'Served from India' scheme had been started in 2007.

  4. The entry of FDI in India has been restricted.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All export and import-related performance is governed by the Foreign Trade Policy (FTP), which is intended at enhancing the country's exports and use trade development as effective implementation of monetary growth and employment generation. 

In other words, the main objective of the Exim Policy is to speed up the economy from a low level of economic activities to a high level of economic activities by making it a worldwide orient animated economy and to get maximum benefits from expanding global market opportunities.

 Thus, the correct option is D.

Multiple choice political science peasants and farmers colonialism and tribal societies peasants and adivasi revolts policy of agriculture, industry and foreign trade under british rule

The East India Company started a triangular trade between India-China-Britain

  1. to take balance of trade in favour of the company

  2. to get maximum profits

  3. to attain favour from China

  4. to get profit from India
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The British traders took opium from India to China and tea from China to England. Between India and England trade flowed both ways. By the early 19th century, exports of handlooms from India declined while the export of raw materials (silk and cotton) and foodgrains increased. From England, manufactured goods flowed into India leading to a decline of Indian artisanal production.
Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

India adopted a _________ economy framework, while China in comparison is follows a socialist economy framework.

  1. capitalist

  2. mixed

  3. socialist

  4. free market economy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India adopted a mixed economy framework, allowing both public and private sectors to coexist, whereas China followed a socialist framework.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

China has focused on pro-poor reforms while India has focused on ___________.

  1. economic growth

  2. growth with stability

  3. social welfare

  4. sustainable development
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

While China focused on pro-poor reforms, India's economic strategy has historically emphasized growth alongside stability.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

India has been more successful in controlling population growth than China.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

China implemented strict population control measures, such as the one-child policy, making it more successful in controlling population growth than India.

Multiple choice economics comparative studies of indian and chinese economies comparing indian and chinese economies comparative development experiences of india and its neighbours economics of development

Economic development in China can be attributed to open-door policy with regard to FDI inflow.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The open-door policy, which encouraged Foreign Direct Investment (FDI), was a fundamental driver of China's industrialization and economic modernization.

Multiple choice social studies discovery of universe famous space scientists and astronauts space exploration space communications

In recent years, India is earning large foreign exchange through the export of which of the following?

  1. Ores and Minerals

  2. Information Technology

  3. Agricultural Products

  4. Electrical goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In recent years, India is earning large foreign exchange through the export of information technology. The information technology in India is comprised of two-component, viz., Business Process Outsourcing (BPO) and IT services. The sector has increased its contribution to India's GDP from 1.2% in 1988 to 7.7% in 2017.

Multiple choice history emerging political trends 1977 to 2000 emerging political trends from 1977 to 2000 india: events after 1960 post independence

Who started the economic reforms in India?

  1. Rajiv Gandhi

  2. Atal Bihari Vajpayee

  3. Narasimha Rao

  4. M. S. Swaminathan
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Narasimha Rao Government started economic reforms from 1991. These economic reforms are called as economic liberalisation. The Indian economy flourished as a result of the implementation of this policy.

Multiple choice economics public finance and budget black money and tax evasion meaning of tax direct taxes

As part of Banking Sector Reforms in 1991, Priority Sector was enlarged to include -

  1. Software

  2. Venture Capital

  3. Agro-Processing Industries

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

Following the 1991 banking sector reforms, the definition of priority sector lending was expanded to include various sectors like agro-processing, venture capital, and software to boost economic growth.

Multiple choice history greater india promotion of indian culture and civilization trade between tamizhagam and rome education and cultural achievements

What were the impacts of India's contact with Iran?

  1. These contacts introduced features like pillars topped by capitals, inscriptions on pillars.

  2. Introduction of Kharoshti script in India.

  3. Introduction of new style of coinage in India.

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

The Achaemenid contact with India introduced administrative and cultural elements, including the use of Kharoshti script, pillar inscriptions, and new coinage styles. All these options are historically recognized impacts of this interaction.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

Chinese toys have become popular in India because ___________.

  1. they are imported items

  2. they are easily available in the indian market

  3. they are innovative and cheap

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

 Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets.