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 organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

Which of the following does not relate to the External Sector Reforms in 1991?

  1. Devaluation of the Rupee

  2. Removal of restrictions on Foreign Exchange transactions

  3. Export Support

  4. Restrictions on Foreign Direct Investment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Restrictions on Foreign Direct Investment does not relate to the External Sector Reforms in 1991. After 1991, foreign direct investment was proposed so that India could avail high investments from outside and grow.  New economic reforms was enacted in 1991 which liberalized the FDI.

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

In India, Support to Exporters is available in the form of:

  1. Duty and Tax Concessions

  2. Export Finance

  3. Export Promotion Marketing Assistance

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

In India, the exporters get a lot of benefit as they complete in the international market with the foreign goods. There is tax concessions on many exported items, exported items get a separate marketing assistance at national level and there is export financial inclusion for many exporting firms who needs them.   

Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

100% FDI allowed in _______________.

  1. Drugs & Pharmaceuticals

  2. Courier service

  3. Hotels and Tourism

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
100% foreign direct investment is allowed in:
a) Drugs and Pharmaceuticals
b) Courier service
c) Hotels and Tourism
FDI stands for Foreign Direct Investment. FDI can be defined as a form of investment which controls the ownership of a business in one country by an entity based in another foreign country.
Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

The financial year or fiscal year in India is  ________________.

  1. 1st April to 31st March

  2. 1st March to 31st May

  3. 1st December to 31st March

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

In India, the financial year or the fiscal year is from 1st April of a year to 31st March of the next year. All the government budget and policies are framed according to the fiscal year. 

Multiple choice book keeping and accountancy accounting equation meaning, objectives and need of adjustments need for adjustments accounting equations and transactions

FDI stands for?

  1. Foreign Diverse Investment

  2. Foreign Dealers in India

  3. Frequent Direct Interest

  4. Foreign Direct Investment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

FDI stands for foreign direct investment, is an investment made by a firm or individual in one country into business interests located in another country.

Multiple choice history the rise of nationalism in europe causes and results of the first world war nationalism in europe first world war

Why did the cotton factories in India grow during the World War I?

  1. Masses refused to wear foreign clothes because of Swadeshi appeal.

  2. Textile imports from Britain declined because the demand of military supplies from Indian factories increased

  3. The Government in England lowered the import duties on Indian cotton textiles.

  4. The Indian cotton industries started producing cotton clothes at competitive prices.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

During World War I, British factories were busy producing military supplies, leading to a decline in textile exports to India. This created a market opportunity for Indian factories to expand production.

Multiple choice business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

In India, in which of the following, Foreign Direct Investment (FDI) is not allowed?

  1. Construction and Maintenance of Roads

  2. Atomic Energy

  3. Airport

  4. Hotels and Tourism
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In India, Foreign Direct Investment (FDI) is prohibited in atomic energy for national security reasons. It is allowed in most other sectors like infrastructure and tourism.

Multiple choice civics programme and achievements of the early nationalists (moderates) demands, methods and achievement of the early nationalists early nationalists moderates

Which of the following statement relates the Dadabhai Naoroji's definition of 'Drain of Wealth'?

  1. Those resources of the country were being utilized in the interest of Britain.

  2. That a part of India's national wealth or total annual product was being exported to Britain for which India got no material return.

  3. That the British industrialists were being given an opportunity to invest in India under the protection of the imperial power.

  4. That the British goods were being imported into the country making it poorer day by day.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dadabhai Naoroji's 'Drain of Wealth' theory posited that a significant portion of India's wealth was being exported to Britain without any equivalent return, leading to the impoverishment of India.

Multiple choice book keeping and accountancy basic accounting terms meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

India suffered from deficit balance both in trade and balance and not invisibles, hence took up a number of Steps to manage the problem. Which one is not appropriate for this?

  1. Export control

  2. Current Account Convertibility

  3. Liberalised Export Policy

  4. Unified Exchange Rate
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 Export control regulations are federal laws that prohibit the unlicensed export of certain commodities or information for reasons of national security or protections of trade.

Multiple choice civics national awakening and establishment of political organisations in india formation of indian national congress (inc) militant nationalism radical nationalists

Which duties were not helpful for Indian industries to grow?

  1. Export

  2. Import

  3. Both

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

Heavy Export duties on Indian silk and cotton textile in Britain destroyed Indian Industries. On the other hand, British goods were imported into India at a nominal duty.

Multiple choice organization of commerce and management warehousing importance, types and documentation in warehousing meaning of warehousing and warehousing introduction to services

The growth in warehousing in India is primarily being driven by the factors viz __________.

  1. Growing manufacturing activity

  2. Rising domestic consumption

  3. Increasing international trade

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Warehousing can be defined as the process of storing physical goods before the distribution of goods for sale. The growth in warehousing in India is primarily being driven by the factors viz:a) Growing manufacturing activity
b) Rising domestic consumption
c) Increasing international trade.
Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Over the years, the value added by industrial sector in the GDP has ____.

  1. improved

  2. declined

  3. remained constant

  4. hasn't shown any specific trend
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Over the decades, the industrial sector's contribution to GDP has generally improved as the economy shifted from agrarian to industrial and service-based.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Public sector is now of size & _______.

  1. large, diversified

  2. small, concentrated in few areas

  3. large, concentrated in few areas

  4. small but diversified
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The public sector in India grew significantly in size and became highly diversified across various industries to drive development.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Pattern of industrial development spice independence has been ________.

  1. balanced

  2. skewed

  3. lopsided

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

The pattern of industrial development in India post-independence is often described as lopsided because it favored certain regions or heavy industries over others.

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Which of the following was the role of the state when developing India's industries?

  1. Providing industrialists with support to build industries

  2. Large amount of capital investment and promotion by the state.

  3. Forcing industrialists to invest in India's industrial ventures.

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

The state played a major role in India's industrialization by providing massive capital investment and promoting key industries.