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 the state of the indian economy on the eve of independence diversification into productive activities policy of agriculture, industry and foreign trade under british rule cottage and small scale industries

How can the horticulture industry in India be overhauled to provide supplementary gainful employment to rural people and help them realize higher levels of income?

  1. Investment in infrastructures like cold storage systems.

  2. Developing small-scale processing units.

  3. Create and establish marketing linkages.

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

Horticulture has emerged as a successful sustainable livelihood option and needs to be encouraged significantly. Enhancing its role requires investment in infrastructures like electricity, coldstorage systems, marketing linkages,small-scale processing units and technology improvement and dissemination.

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

Select the correct statement/statements using the code given below:
1. Industrial lockouts caused by the striking contractual labour has increased during the last $5$ years, which indicates immediate need of labour reforms in India pending since long.
2. Increasing labour unrest in India is emerging as the main determinant in attracting FDI. 

  1. Only I

  2. Only 2

  3. I and 2

  4. Neither 1 nor 2
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Both the statements are incorrect. The number of strikes and lockouts show a decreasing trend at least in the instances of lockouts, in the country. Labour unrest in India is not seen as a major deterrent in attracting FDI to the country. 

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

As a result of foreign investment _____________.

  1. India has seen a tremendous rise in new technology

  2. India is the fifth largest foreign exchange reserve holder in the world

  3. rising prices could not be kept under control

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The opening up of the economy has led to rapid increase in foreign direct investment and foreign exchange reserves. At present, India is the sixth largest foreign exchange reserve holder in the world. Rising prices have also been kept under control. and India has seen tremendous rise in new technology.
Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

FDI is not permitted _______.

  1. atomic energy

  2. rail transport

  3. nidhi companies

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
FDI stands for Foreign Direct Investment. FDI refers to the investment made by an individual or firm into business interests of different country.
FDI is not permitted in sectors like, atomic energy, rail transport and Nidhi companies.
Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

Encouragement of Foreign Direct Investment & removal of Quantitative Restrictions are both parts of ___________________.

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

External sector reforms in India were aimed at integrating the Indian economy with the global market. This included liberalizing trade through the removal of quantitative restrictions and encouraging foreign investment.

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

Inspite of the Economic Reforms already carried out in India, there is a further need for ___________________.

  1. Better industrial deregulation

  2. Improvement in Fiscal Discipline

  3. Increase in growth of Infrastructure

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

Economic reforms are continuous processes. In the Indian context, experts generally agree that further improvements are needed across fiscal discipline, infrastructure development, and industrial deregulation to sustain growth.

Multiple choice economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

The Economic Reforms in India have failed to -

  1. Keep fiscal deficits to the targeted levels

  2. Fully implement industrial deregulation

  3. Fully open the economy to trade

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

While economic reforms have achieved significant growth, they have faced criticism for persistent fiscal deficits, incomplete implementation of certain industrial policies, and challenges in fully opening specific sectors to global trade.

Multiple choice history the industrial revolution from capitalism to imperialism industrial revolution and inventions industrial revolution and its effects

In the nineteenth century, India's economy was forced to:

  1. industrialize to meet the growing demands of a wealthy British middle class.

  2. abandon much of its food production in favor of expanding the production of textiles and cash crops.

  3. provide cheap labor for the factories of British.

  4. abandon its participation in the larger global economy in order to improve British trade.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Abandon much of its food production in favor of expanding the production of textiles and cash crops.

Multiple choice economics rural development in india basics of rural development meaning and importance of rural development agriculture sector

As per the reports in various newspapers/magazines etc, the agricultural productivity in India is low in comparison to other countries. What are the main reasons of the same?
(A) Lack of credit and marketing facilities
(B) Uneconomic holdings
(C) Outdated agricultural techniques.

  1. Only (A)

  2. Only (B)

  3. Only (C)

  4. All (A), (B) and (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Agricultural productivity in India is hindered by a combination of factors, including limited access to credit, fragmented land holdings, and the use of traditional, less efficient farming techniques.

Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

Which of the following is necessary to opt for economic planning in India?

  1. To break the vicious circle of property

  2. To build the social and economic infrastructure

  3. To increase capital formation

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

Economic Planning is the making of major economic decisions. The principal reasons for planning in India are: 

  • Rapid Economic Development, 
  • Quick improvement in the standard of living, 
  • Removal of poverty, 
  • Rational allocation and efficient utilisation of resources, 
  • Increasing the rate of capital formation, 
  • Reduction in unequal distribution of income and wealth, 
  • Reduction of unemployment, 
  • Recognition of foreign trade, 
  • Regional balanced development.

Multiple choice organisation of commerce and management trade trade and factors affecting trade trading and economic organisations trade and trade organisations

What locational advantage does India possess for International trade?

  1. Central location in the Eastern hemisphere

  2. Location in the middle of the developing countries

  3. Location at the sourthern end of Asia

  4. Location on the east-west oceanic route through the Suez Canal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

India's central position at the head of the Indian Ocean provides it with a strategic advantage for maritime trade, connecting the East and West via the Suez Canal route.

Multiple choice geography international economics organization mncs and impact of globalization effects of globalisation in india globalization and trade

Within a year, 70% to 80% of toy shops have replaced the Indian toys with Chinese toys due to ___________.

  1. cheaper prices

  2. good material

  3. easy availability

  4. better quality
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Buyers in India now have the option of choosing between Indian and the Chinese toys. Because of the cheaper prices and new designs, Chinese toys become more popular in the Indian markets. 

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

Government of India is the apex body responsible for the country's external trade.

  1. True

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

Government of India is the apex body responsible for the country's external trade as the government develops the rules and regulations levied on the import and export trade made in India.

Multiple choice business organisation conditions of purchase and sale and documents used in foreign trade foreign invoice procedure and documents used in foreign trade export and import procedures

_______ has placed India among the fastest growing information technology market in the world.

  1. Liberalization

  2. Urbanisation

  3. Government policies

  4. Strong demand over the past few years in developed economies
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Developed Economy. Developed Economies are the countries that enjoy certain high standards. Such countries generally have a good infrastructure, stable economy with very high per capita income. The degree of development, industrialization and general standard of living for its citizens is very high.