About Indian Economy

India is on a fast track to economic development. The global economy has been in decline since 2020 as a result of the COVID-19 pandemic. Repeated illness outbreaks, supply-chain interruptions, and inflation have produced difficult times. Faced with these issues, the Indian government has acted quickly to minimize the damage to the Indian economy.

Description of the Indian economy

India's economy is defined as massive, complicated, and rapidly expanding. It is one of the world's most dynamic and rapidly developing marketplaces. India has had a planned economy since 1951. The first several programs emphasized progress through manufacturing sector expansion, emphasizing heavy industries as the economy's backbone. Agriculture and social development were two other major planned sectors. Efforts were concentrated on determining the needs of the economy throughout the post-independence period and the period of the "Five-Year Plans." In addition, the economic reforms that were implemented in India at the beginning of the 1990s signified the beginning of a new era in the history of the nation. It allowed India to shrug off the constraints of its history and emerge as a progressive nation on the global stage. This essay about the Indian Economy will provide students with a thorough understanding of the Indian economy.


The Indian economy has made remarkable development since independence. The green revolution allowed India to become self-sufficient in food production and diversify its businesses. However, in order to reach a 5 trillion-dollar economy by 2025, we still have a long way to go. It can, however, be accomplished with government effort and the appropriate policymakers

Since the second part of 2020-21, the Indian economy has been steadily improving. Although, from a health standpoint, the second wave of the pandemic in April-June 2021 was more severe. The nationwide lockdown has impacted small enterprises, ordinary citizens, and everyone in India. The Indian economy has suffered as a result of this. But now it's gently rising to the surface and acquiring shape.

Following are some of the multiple choice questions on the Indian Economy with answers that will help the students in developing their knowledge.

Indian Economy MCQ

1. Which of the following is not a long period objective of planning in India?

  • GDP growth
  • Full employment
  • Better quality of life
  • Equitable distribution

2. Which of the following steps promoted the growth of the economy as a whole by stimulating the development of industrial and tertiary sectors?

  • Independence
  • Planning
  • Colonial rule
  • Green revolution

3. What is needed to provide protection against natural calamities like floods, drought, locusts, thunderstorms, etc.?

  • Multiple cropping
  • Green revolution
  • Crop insurance
  • HYV

4. Out of 200 million children in the school going age group, how many are attending schools?

  • One-fourth
  • Half
  • Two-thirds
  • One-fifth

5. A situation in which more persons are employed on a job than are optimally required is:

  • Structural unemployment
  • Disguised unemployment
  • Cyclical unemployment
  • Seasonal unemployment

6. Directive Planning is pursued under:-

  • Capitalist Economy
  • Socialist Economy
  • Mixed Economy
  • None of these

7. The task of collection of data in all three sectors is done by

  • BPO
  • UNDP
  • NSSO
  • KPO

8. Full employment and equitable distribution of income and wealth are the _______ period objectives of planning in India.

  • long
  • small
  • medium
  • exeter long

9. When we produce a good by exploiting natural resources, it is an activity of the:

  • Secondary sector
  • Tertiary sector
  • Primary sector
  • Organised sector

10. Which of the following is included in tertiary sector?

  • ATM booths
  • Call centres
  • Internet cafe
  • All of them

11. The highway projects in India are being implemented by which organisation?

  • GAIL
  • NTPC
  • NHAI
  • NDDB

12. Which of the following organisation looks after the credit needs of agriculture and rural development in India.

  • FCI
  • IDBI
  • ICAR

13. Which of the following statements regarding high yielding variety (HYV) seeds are correct?

  • In the first phase of the green revolution(mid-1960s up to mid-1970s), the use of HYV seeds primarily benefited the wheat-growing regions only while In the second phase (mid-1970s to mid-1980s), the HYV technology benefited more variety of crops.
  • In the first phase of the green revolution, the use of HYV seeds was restricted to the more affluent states such as Punjab, Andhra Pradesh, and Tamil Nadu.
  • The use of these seeds requires neither the use of fertilizers nor pesticides.
  • Both A & B

14. After which Five Year Plan, there were three annual Plan?

  • Second Five Year Plan
  • Third Five Year Plan
  • Fourth Five Year Plan
  • Fifth Five Year Plan

15. When was the planning Commission established?

  • 1947
  • 1948
  • 1950
  • 1951

16. Which was the last Five years plan in India

  • Eleventh plan
  • Twelfth plan
  • Thirteenth Plan
  • Fourteenth Plan

17. When was NITI Aayog established

  • 1951
  • 2011
  • 2015
  • None of these

18. Green Revolution resulting from:

  • Traditional Irrigation facilities
  • Use of manure
  • HYV seeds
  • None of these

19. Schedule C industries development were left to:

  • Public sector
  • Private sector
  • Both (a) and (b)
  • None of these

20. Choose the correct meaning of organised sector:

  • It covers those enterprises where the terms of employment are regular.
  • It is outside the control of the government.
  • Jobs are not regular.
  • It provides low salaries.

21. The service sector includes activities such as:

  • agriculture, dairy, fishing and forestry
  • making sugar, gur and bricks
  • transport, communication and banking
  • None of these

22. The sectors are classified into public and private sector on the basis of :

  • Employment conditions
  • The nature of economic activities
  • Number of workers employed
  • Ownership of enterprises

23. Government owns most of the assets and provides all the services:

  • Private Sector
  • Public Sector
  • Organised Sector
  • Tertiary Sector

24. Central government in India made a law, implementing the Right to Work in how many districts of India?

  • 150 districts
  • 200 districts
  • 250 districts
  • 625 districts

25. The value of all final goods and services produced within a country during a particular year is called as:

  • Gross Domestic Product
  • Net Domestic Product
  • National Product
  • Production of Tertiary Sector

26. Human Development Index is not related to......

  • Life Expectancy
  • Per Capita Income
  • Gross Domestic Product
  • Education

27. Optimum Population is that ideal population which provides......

  • Minimum Income per head
  • Maximum Income per head
  • Average Income per head
  • None of the above

28. Economic growth can be measured by

  • The CPI
  • The CBI
  • GDP
  • MPC

29. Subsidies are

  • rights to increase trade with Great Britain and her colonies
  • extra payments or bonuses to grow or produce certain crops.
  • permission to trade directly with other countries.
  • land payments which made it easier to remain in the colony.

30. Who is known as the father of green revolution in India?

  • Dr. Varghese Kurian
  • Dr. M S Swaminathan
  • Dr. Manmohan Singh
  • Dr. M S Ahluwalia

31. The period of the first five year plan was.............

  • 1951-1956
  • 1950-1955
  • 1947-1952
  • 1952-1957

32. Which is the characteristics of an underdeveloped economy?

  • General poverty
  • Significance of industrial sector
  • Low growth of population
  • Use of higher production techniques and skills


  • 121.08
  • 130.87
  • 120.00
  • 130.87

34. Which of the following is not a goal of five year plan?

  • Growth
  • Equality
  • Land reforms
  • Modernisation

35. Perspective plan is a

  • short term plan
  • long term plan

36. Fixing the maximum size of land which could be owned by an individual is called?

  • Land fragmentation
  • Land ceiling
  • Land consolidation
  • Land upgradation

37. Subsidies do not allow prices to indicate the supply of a good. True/False?

  • True
  • False

38. Who is current RBI governor of India?

  • Shaktikanta Das
  • Raghuram Rajan
  • Urjit patel
  • Duvvuri subbarao

39. Who is the current finance minister of India?

  • Dr.Manmohan Singh
  • Nirmala Sitaraman
  • Amit shah
  • Rajnath Singh

40. In which year did the government decide to remove barriers on foreign trade and investment in India?

  • 1990
  • 1980
  • 1991
  • 1999

41. Which Indian company was bought over by Cargill Foods—a large American MNC?

  • Amul
  • Britannia
  • Agro Tech Foods Ltd.
  • Parakh Foods

42. Which one of the following Indian industries has been hit hard by globalisation?

  • soft drinks
  • automobiles
  • electronics
  • toy

43. In which year, Government of India established 'Niti Aayog'?

  • 2013
  • 2014
  • 2015
  • 2016

44. With 'Green Revolution', India could increased manifold the production of which commodity?

  • Milk
  • Fish
  • Foodgrains
  • Iron

45. The 'Mahalanobis Model' formed the basis of which Five-Year Plan in India?

  • First Five-Year Plan
  • Second Five-Year Plan
  • Third Five-Year Plan
  • Fourth Five-Year Plan

46. In which year, India adopted the 'Planning Approach'?

  • 1947
  • 1951
  • 1955
  • 1957

47. Quotas are a tax on imported goods while tariffs specify the number of goods which can be imported.

  • True
  • False

48. Legally stipulated maximum size beyond which no individual farmer can hold any land

  • /strong> Tenancy reforms
  • Abolition of intermediaries
  • strong> Land consolidation
  • strong> Land Ceiling

49. Evaluate the below statements related to land reforms.i) Just a year after independence, steps were taken to abolish intermediaries and to make the tillers the owners of land.ii) The purpose of land ceiling was to keep the concentration of land ownership in the hands of a selected few.Which of the above are correct?

  • Only i
  • Only ii
  • Both i and ii
  • Neither i nor ii

50. Under Industrial Policy Resolution (IPR), 1956, Category II of the industrial sector includes industries jointly owned and controlled by the private sector and the state.

  • True
  • False

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