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 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

Which among the following has accelerated India's flow of foreign investment into India?

  1. Improving standard of living.

  2. Widening markets.

  3. New Industrial Policy, 1991

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

On July 24, 1991, Government of India announced its new industrial policy with an aim to correct the distortion and weakness of the Industrial Structure of the country that had developed in 4 decades; raise industrial efficiency to the international level; and accelerate industrial growth.

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

Signing of _______ Services Agreement by India, has opened up opportunities of movement of both manpower and investments from either side between India and ASEAN.

  1. GAAT

  2. Trade in Services & Trade in Investments

  3. WTO

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

India formally signs Trade in Services & Trade in Investments Agreement with ASEAN. India has formally signed the Trade in Services & Trade in InvestmentsAgreement with ASEAN. The Services Agreement will open up opportunities of movement of both manpower and investments from either side between India and ASEAN.

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

FDI can include which of the following?

  1. Mergers and acquisitions

  2. Building new facilities

  3. Expansion of existing production capacity

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

FDI includes an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.

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

The main causes for the slow growth of export are
I. Neglect of export sector in the development strategy of planning
II. Mounting inflationary pressure in economy
III. Slow expansion of industries producing export goods
IV. Export control and tariff barriers
Of these :

  1. I and II are correct

  2. III and IV are correct

  3. II and IV are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The slow growth of Indian exports during the early planning era was attributed to a combination of factors, including the neglect of the export sector, inflation, slow industrial expansion, and restrictive trade policies.

Multiple choice economics parameters (indicators) of development human development and human development index (hdi) hdi dynamic of human development

HDI has been able shift the focus of policy-makers on the ultimate objective of development.

  1. True

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

By focusing on health and education alongside income, the HDI has successfully shifted policy focus from purely economic growth to the broader well-being of the population.

Multiple choice history language, writing and great books achievements in science and technology india's achievements in science and technology science and technology

In which of the following fields India has emerged as a giant at the international arena?

  1. Engineering industry

  2. Software technology

  3. Heritage tourism

  4. Exchange of commodities
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the last decade nanotechnology entered the policy arena as a technology that is simultaneously promising and threatening, and with a similar Janus-like face, nanotechnology entered the development agenda.

Multiple choice history contribution of madhya pradesh in freedom struggle the age of industrialisation emerging from the shadow of china the nationalist movement in indo-china

Mobilising capital was the task of ____________.

  1. European Managing Agencies

  2. Private industrialist

  3. Indian merchants

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

European Managing Agencies were the primary entities responsible for mobilizing capital and managing large-scale industrial ventures in colonial India.

Multiple choice history contribution of madhya pradesh in freedom struggle the age of industrialisation emerging from the shadow of china the nationalist movement in indo-china

______ had to be relied on for industrial development because the number of Indian scientists and engineers was very small.

  1. Aliens

  2. Outsiders

  3. Foreigners

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

Due to the scarcity of trained Indian scientists and engineers during the colonial period, industries had to rely on foreign experts for technical guidance.

Multiple choice history contribution of madhya pradesh in freedom struggle the age of industrialisation emerging from the shadow of china the nationalist movement in indo-china

Indian Industrial growth increased after the First World War because ________________.

  1. British opened new factories in India.

  2. India became independent.

  3. New technological changes occurred.

  4. Indian mills now had a vast home market to supply.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

During World War I, British imports declined significantly, allowing Indian mills to capture the domestic market and expand production to meet the demand.

Multiple choice elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

Which of the following is the most valid reason for India to export gold to Bank of England in 1991?

  1. To set up India-UK bilateral relationship

  2. India returned UK gold

  3. To meet foreign exchange crisis

  4. For Investment in Bristish companies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 1991, India faced a severe balance of payments crisis and exported gold to the Bank of England to secure foreign exchange reserves.

Multiple choice development of industrial sector and major industries in karnataka industries of karnataka geography

Why did the Karnataka government form 'Suvarna Textile Policy'?

  1. To improve the situation in textile industry

  2. To increase export of textile products

  3. To close down the cotton mills

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • The Karnataka government had announced its policy Suvarna Vastra Neethi in 2008 for a period of five years.
  • The investors are interested in investing in the areas of spinning, weaving, processing and manufacturing of technical textiles.
Multiple choice economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

Foreign embassies in India are a part of India's _______________.

  1. Economic territory

  2. Geographical territory

  3. Both (a) and (b)

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

Foreign embassies in India are a part of India's geographical territory and not economic territory. For example: Embassy of USA in India is a  part of domestic territory of USA and a part of geographical territory of India.

Multiple choice business economics and quantitative methods balance of payments exchange rate balance of payments and exchange rate balance of trade and balance of payments

Which of the following items raises the supply of foreign exchange?

  1. Import of goods from China

  2. Indian students going to USA for MBA
  3. Donation of 50 million $ $ $ received from Microsoft

  4. Purchase of land in England
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The supply of foreign exchange increases when foreign currency enters the domestic economy. Receiving a donation from abroad is an inflow of foreign currency, whereas imports, student expenses, and purchasing foreign assets are outflows that increase demand for foreign exchange.

Multiple choice business economics and quantitative methods balance of payments exchange rate balance of payments and exchange rate balance of trade and balance of payments

A surge in foreign capital inflows in India would lead to the ______________________.

  1. Sale of foreign exchange by the central bank in order to prevent depreciation of rupee

  2. Purchase of foreign exchange by the central bank in order to prevent depreciation of the rupee

  3. Sale of foreign exchange by the central bank to prevent the appreciation of the rupee

  4. Purchase of foreign exchange by the central bank in order to prevent appreciation of the rupee
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A surge in foreign capital inflows increases the demand for the domestic currency, causing it to appreciate. To prevent this appreciation, the central bank buys foreign exchange, thereby increasing the supply of domestic currency in the market.

Multiple choice social science public health and the government food security and related aspects food security rural development role of the government in health

The most important remedy to the problem of Poverty in India is____.

  1. changes in the ownership pattern

  2. higher productivity

  3. re-distribution of income through fiscal, pricing and other measures

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

Poverty is a multidimensional problem. Addressing it requires a combination of strategies, including increasing productivity, changing ownership patterns (like land reforms), and redistributing income through fiscal policy.