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 geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Which among the following is NOT a cause of sickness of industrial units in India?

  1. Obsolescent technology

  2. Labour problems

  3. Faulty location

  4. Lack of capital account convertibility
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sickness in industrial units is typically caused by internal factors like poor management, obsolete technology, or external factors like labor disputes and raw material shortages. Capital account convertibility is a macroeconomic policy, not a direct cause of individual unit sickness.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

What is the role of industrialization?

  1. It is a sign of higher standard and social change

  2. It is a sign of rising productivity

  3. It is useful for foreign trade

  4. It is a favourable balance of payment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Industrialisation is the process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and businesses. As such Industrialisation plays a major role in the economic development of underdeveloped countries with vast manpower and varied resources.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Statement - I : The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement - II : After the New Industrial Policy - $1991$, the Balance of Trade for India has always been positive.

  1. Statement I is correct, but II is incorrect

  2. Statement II is correct, but I is incorrect

  3. Both Statement I and II are correct

  4. Both Statement I and II are incorrect
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I is correct as the policy aimed to boost industrial development. Statement II is incorrect because India's balance of trade has frequently been negative due to high imports, especially of oil and capital goods.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Which one among the following is not the salient feature of industrial policy since 1991?

  1. Enormous expansion of the private sector.

  2. Redefining the role of public sector.

  3. Limited exposure of Indian industry to foreign competition.

  4. Pruning of the list of items reserved for SSI units.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The 1991 policy aimed to increase competition by opening the Indian market to foreign investment and reducing trade barriers, not by limiting exposure to foreign competition.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

One major proposal of new industrial policy (1991) was ..

  1. Impose restriction on technical know-how for one year

  2. All types of industries have been made licensed

  3. NRI's will not be allowed for capital investment in India

  4. Facility of direct foreign investment up to 51% High priority industries
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The 1991 policy significantly increased the limit for foreign equity participation in high-priority industries to 51 percent to attract foreign capital.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Which of the following does not relate to the New Industrial Policy, 1991?

  1. Abolition of Industrial Licensing

  2. Encouragement for Foreign Direct Investment

  3. Reservation of all industries for Public Sector

  4. Procedural Simplifications
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The 1991 policy shifted from public sector dominance to private sector participation. It involved de-reservation, not further reservation, of industries for the public sector.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Abolition of Licensing and Encouragement of Private Sector Participation 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
A Correct answer
Explanation

Abolition of industrial licensing and promoting private sector participation are core components of the industrial policy reforms initiated in 1991.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Abolition of Intermediaries and Tenancy Reforms 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
C Correct answer
Explanation

Abolition of intermediaries (like zamindars) and tenancy reforms are classic measures associated with post-independence land reforms in India.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Under the New Industrial Policy 1991, several aspects were abolished. Which of the following were not abolished under that Policy?

  1. Licenses Registration

  2. DGTD Registration

  3. Foreign Direct Investment

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

The 1991 policy abolished various registration requirements (like DGTD) to simplify procedures, but it actively encouraged, rather than abolished, Foreign Direct Investment.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

A strategy focusing on development of heavy industry is sometimes preferred for a developing economy because it can ____________.

  1. generate employment opportunity on a large scale

  2. provide a strong base for rapid industrialization

  3. contain inflationary pressures

  4. meet the deficits in Balance of Payments in the short run
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A strategy for development of heavy industry is sometimes preferred for a developing economy because it can provide a strong base for rapid industrialization.

Multiple choice geography state of industries in india meaning and classification of industries industrialisation and urbanisation urbanisation

Which of the following statements is correct?

  1. The industrial pattern on the eve of Independence was quite balanced.

  2. During the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector.

  3. Most of the big industrial units in India are sick.

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

This statement is correct that during the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector. Others are wrong because the industrial pattern on the eve of Independence was imbalanced and very few big industrial units in India are sick.

Multiple choice organization of commerce and management recruitment methods meaning, nature, methods and sources of recruitment meaning, sources and methods of recruitment meaning and definition of recruitment

Research has shown that the most important demographic feature of India regarding oversell attraction?

  1. Easy availability of skilled labour

  2. Easy availability of working population.

  3. Easy availability of mobile people

  4. Easy availability of intermediary people.
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice economics sustainable development with equity liberalisation objectives of economic planning in india need for sustainable development introduction to social movements and its types social movements

In the pre-liberalization period, dominant position was given to Sector in India.

  1. Private

  2. Public

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Before the 1991 liberalization, India followed a socialist-inspired model where the public sector was given a dominant role in the economy.

Multiple choice civics agriculture sector rural credit role of agriculture sector green revolution animal husbandry and fishery cattle farming

State a reason for reduction of India's GDP during the 1950's. 

  1. Increased dependence on agriculture

  2. Reduced dependence on agriculture

  3. Reduced dependence on service sector.

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

During the 1950s, India's economy was heavily reliant on agriculture, which was characterized by low productivity and vulnerability to weather conditions. This lack of diversification and slow growth in other sectors contributed to stagnant GDP growth.