Indian Economy – Multiple Choice Questions (MCQs)

1. 1. What was the primary objective of the economic planning in India after independence?

   • A. To promote rapid industrialization
   • B. To reduce income inequality
   • C. To achieve self-sufficiency in agriculture and industry
   • D. To integrate India into the global economy

2. 2. The concept of 'Five-Year Plans' in India was borrowed from which country?

   • A. United States
   • B. Soviet Union
   • C. United Kingdom
   • D. Germany

3. 3. What is the main function of the NITI Aayog?

   • A. To allocate funds to states
   • B. To formulate economic policies and promote cooperative federalism
   • C. To conduct national-level elections
   • D. To manage India's foreign exchange reserves

4. 4. Operation Flood' is associated with which sector of the Indian economy?

   • A. Agriculture
   • B. Dairy development
   • C. Industrial development
   • D. Textile industry

5. 5. The 'Green Revolution' in India primarily focused on increasing the production of which crops?

   • A. Cotton and jute
   • B. Rice and wheat
   • C. Sugarcane and oilseeds
   • D. Tea and coffee

6. 6. What is the significance of the 'Land Reforms' in India?

   • A. To consolidate large landholdings
   • B. To abolish the zamindari system and redistribute land
   • C. To promote commercial farming
   • D. To increase the revenue from land taxes

7. 7. NABARD' is an apex institution related to?

   • A. Industrial finance
   • B. Agricultural credit
   • C. Export promotion
   • D. Urban development

8. 8. What does 'LPG' stand for in the context of Indian economic reforms of 1991?

   • A. Land
   • B. Privatization
   • C. Globalization
   • D. Liberalization

9. 9. The 'Make in India' initiative focuses on?

   • A. Promoting exports
   • B. Encouraging foreign investment in manufacturing
   • C. Developing the services sector
   • D. Improving agricultural productivity

10. 10. Which sector contributes the largest share to India's Gross Domestic Product (GDP)?

    • A. Agriculture
    • B. Industry
    • C. Services
    • D. Manufacturing

11. 11. What is 'disinvestment' in the context of public sector undertakings?

    • A. Selling shares of PSUs to private entities
    • B. Investing more capital in PSUs
    • C. Modernizing the technology of PSUs
    • D. Appointing new management in PSUs

12. 12. The 'Index of Industrial Production (IIP)' is released by which organization in India?

    • A. Reserve Bank of India (RBI)
    • B. National Statistical Office (NSO)
    • C. Ministry of Finance
    • D. Confederation of Indian Industry (CII)