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

Which of the following is NOT an economic reform for India recommended by the Economics Guide?

  1. expanding the base of taxpayers

  2. establishing nationwide manufacturing taxes

  3. decreasing rates for electricity usage

  4. simplifying laws for laying off workers
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Decreasing rates for electricity usage is generally not considered a standard structural economic reform; rather, reforms focus on efficiency, privatization, or tax simplification.

Multiple choice

Which which directive principle promote cottage industries

  1. Economic principles

  2. Gandhian principles

  3. None of the above

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

Gandhian Principles (Articles 40, 43, 46, 47, 48) promote cottage industries, village panchayats, prohibition, and cattle preservation. Article 43 specifically promotes cottage industries on a cottage scale in rural areas. Economic Principles deal with equal pay, working conditions, while Social Principles deal with education and health.

Multiple choice

The most impactful reason of declining of Indian textile was

  1. Industrialization in Britain

  2. Low cost of cloth

  3. Banning of India Chintz in English Market

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

The rise of industrialization in Britain led to the mass production of cheap, machine-made textiles. This flooded the Indian market and made it difficult for Indian hand-woven textiles to compete.

Multiple choice

British steel import into India declined dramatically during

  1. 2nd world war

  2. 3rd world war

  3. Anglo Mysore war

  4. 1st world war
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

During the First World War, British steel production was diverted to meet war demands, leading to a sharp decline in steel exports to India. This created an opportunity for Indian steel producers like TISCO to expand.

Multiple choice

Why was India an important country for trade?

  1. Best chocolate

  2. Close to Europe

  3. Short trip by land

  4. Goods that weren't in Europe
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

India was highly valued for its luxury goods, such as spices, silks, and precious stones, which were not available or were very expensive in Europe.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

Indian companies when join with an international company, they are benefited with ____________.

  1. Technological advancements

  2. Increased resources

  3. Brand name

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

When an Indian company joint with a foreign company it is benefited with the increased financial and human resources. Also advanced technology adds to effeciency and effectiveness. Established brand name also saves a lot of investment. 

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

When an international company joins an Indian company, they gain access to the vast Indian market.

  1. True

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

Jaugar & Land Rover are  British multinational car manufacturer brand headquartered in Whitley, England is owned by the Indian company Tata Motors since 2008. On June 2, 2008, the sale to Tata was completed at a cost of 1.7 billion pounds. A new assembly plant was also opened at Pune in April 2011.

Multiple choice political science india and the united nations the united nations (u.n.) united nation organisation (u.n.o) international institutions

A foreign territory which becomes a part of India on acquisition can.

  1. Either be admitted into union territories

  2. Be constituted into a new State

  3. Be formed into a new union territory and can also be merged into an existing state

  4. Either (a) or (b) or (c)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under Article 1 of the Indian Constitution, the territory of India comprises the territories of the States, the Union territories, and such other territories as may be acquired. Parliament has the power to admit or establish new states or union territories.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

What should India increase in order to become one of the most prosperous countries of the world?

  1. Food production

  2. Industrial production

  3. Population

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

India is predominantly an agricultural country and 65-70 percent of the population is dependent on it for their livelihood. However, agriculture cannot support the growing population and only rapid industrialisation can solve the problem of rising unemployment. Rapid industrialisation is needed to make India self- sufficient and independent for all its needs.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

Which of the following are the reasons for low productivity of iron and steel in India?

  1. High cost and limited availability of coking coal

  2. Poor infrastructure

  3. Irregular supply of energy

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

Though, India is an important iron and steel producing country in the world yet, we are not able to perform to our full potential largely.

Reasons for low productivity of iron and steel includes which of the following reasons: 

  1. High costs and limited availability of coking coal 
  2. Lower productivity of labor 
  3. Irregular supply of energy 
  4. Poor infrastructure.

Multiple choice economics indian economy on the eve of independence demographic condition and infrastructure development experience (1947-90) population and human resource development

One of the reasons for India's occupational structure remaining more or less the same over the years has been that ________________________.

  1. investment pattern has been directed towards capital intensive industries.

  2. productivity in agriculture has been high enough to induce people to stay with agriculture.

  3. ceiling-on land holdings have enabled more people to own land and hence their preference to stay with agriculture.

  4. people are largely unaware of the significance of transition from agriculture to industry for economic development.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It has been one of the chief criticisms of the planning. which emphasised the capital intensive industries in place of promoting the labour intensive industries.

Multiple choice economics indian economy on the eve of independence demographic condition and infrastructure development experience (1947-90) population and human resource development

In the Indian economy prior to $1947$, there was virtually no ___________ in the Indian economy.

  1. Public sector

  2. Socialist goal

  3. Agricultural development

  4. Government involvement
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The British rule lasted for two centuries before India won its independence in 1947. The sole purpose of the British economic policy was to reduce India into a feeder economy for expansion of Britain’s own modern industrial base. There was virtually no public sector in the Indian economy. 

Pre-independence India had a flourishing economy based on agriculture and handicrafts. The quality of workmanship in the field on textiles and precious stones was high leading to a worldwide base for Indian products. The British policy was to turn India into an exporter of raw materials and consumer of finished goods. This led to the disruption of the Indian economy. The British never made any attempt to calculate the national or per capita income.

Multiple choice economics indian economy on the eve of independence demographic condition and infrastructure development experience (1947-90) population and human resource development

Which of the following changes did the Indian railways make to the structure of the Indian economy?

  1. Undertake long distance travel and break geographical and cultural barriers

  2. Commercialize Indian agriculture

  3. Both A and B

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

Railways ,the greatest gift left by the colonial power, The British companies that laid down the tracks to take advantage of the immeasurably improved experience of traveling across the vast sub-continent offered by train services,

Railways allowed fast travel between one end of the country and the other and cemented relationships between the various provinces. They enabled goods to be carried around the country far more cheaply than ever before. They allowed the development of markets in foodstuffs and other agricultural produce that increased their availability and, eventually, did make famines less likely. They created an infrastructure that in India was unprecedented in its sophistication and extent. They gave the opportunity of secure jobs to millions of Indians and enabled many of them to acquire new skills. They helped the development of the trade union movement. They laid the foundations of the large Indian middle class. They brought sophisticated technology to the sub-continent.

Multiple choice economics indian economy on the eve of independence demographic condition and infrastructure development experience (1947-90) population and human resource development

What effect did the Indian Railways have on the exports during the British rule?

  1. Exports remained the same

  2. Exports decreased

  3. Exports increased

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

Railways led to increased agricultural output, export of food-grains, widening of markets, commercialization of agriculture, and, hence, cropping pattern. As railways widened the markets for the agricultural sectors, Indian agriculture became linked to the world trade cycles.