Indian Economy – GK Questions and Answers (MCQs)
The Indian Economy is one of the most important subjects in the General Awareness section of competitive exams. From GDP, inflation, and budget to banking systems, government schemes, and economic reforms, this topic helps candidates understand the structure and functioning of India’s financial system.
Whether you're preparing for SSC, UPSC, Banking, Railways, CDS, State PSCs, or other government job exams, questions related to the Indian economy are frequently asked to test your knowledge of key economic concepts, current trends, and policymaking.
To help you stay exam-ready, GKwizard provides a dedicated section of Indian Economy GK MCQs with answers and explanations. This section covers key topics like:
- Basic Concepts: GDP, GNP, Inflation, Deflation, Fiscal & Revenue Deficit
- Planning in India & Five-Year Plans (till replaced)
- Union Budget Highlights and Economic Surveys
- Sectors of Economy – Primary, Secondary, Tertiary
- Tax Structure – Direct and Indirect Taxes, GST
- Banking and Monetary Policy – RBI roles, repo rate, CRR, SLR
- Government Schemes & Subsidies (e.g., PMAY, MNREGA, Ujjwala)
- Poverty, Unemployment & Inclusive Growth
- Public Finance, Expenditure & Deficit Control
- Foreign Trade & Balance of Payments
- FDI, FII and Economic Liberalization
- Make in India, Startup India & Atmanirbhar Bharat
- Current Economic Data, Reports, Indices (like WPI, CPI, HDI, Ease of Doing Business)
Indian Economy Practice MCQ Question and Answer
2
The concept of 'Hindu rate of growth' is often used to refer to:
3
Which of the following was a key recommendation of the Narasimham Committee I (1991)?
4
The 'Washington Consensus' generally advocates for which set of economic policies?
5
What is the primary function of the Goods and Services Tax (GST) Council in India?
6
The term 'fiscal deficit' in the Indian context refers to the difference between:
7
Which of the following sectors contributes the largest share to India's Gross Value Added (GVA) at current prices?
8
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) primarily aims to provide:
9
What is the primary objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
10
The ' ??????????????? ????????' in the Indian context refers to:
11
Which of the following is a key challenge facing the Indian agricultural sector?
12
The 'Make in India' initiative primarily focuses on:
13
What is the primary role of the Reserve Bank of India (RBI)?
14
The concept of 'inclusive growth' emphasizes:
15
Which of the following is a major source of foreign direct investment (FDI) in India?
16
The 'National Infrastructure Pipeline' (NIP) aims to:
17
What is the primary objective of the 'Start-up India' initiative?
18
The calculation of India's Gross Domestic Product (GDP) includes:
19
What is the primary function of the Securities and Exchange Board of India (SEBI)?
20
The 'BOP crisis' of 1991 in India was primarily triggered by:
21
Which of the following is a key objective of India's foreign policy related to economics?
22
The 'trickle-down theory' suggests that economic growth benefits the poor:
23
What is the primary aim of the 'Deendayal Antyodaya Yojana-National Rural Livelihoods Mission' (DAY-NRLM)?
24
The 'core inflation' rate typically excludes the prices of which of the following items?
25
Which of the following is a major challenge for India's manufacturing sector?
26
The 'Human Development Index' (HDI) is a composite statistic used to rank countries by levels of:
27
What is the primary objective of the 'Pradhan Mantri Ujjwala Yojana' (PMUY)?
28
The 'Marginal Standing Facility' (MSF) is a window for scheduled commercial banks to borrow overnight funds from the RBI against government securities at a rate:
29
Which of the following sectors has witnessed the most significant growth in terms of FDI inflows into India in recent years?
30
The 'circular flow of income' in an economy illustrates the continuous movement of:
Benefits of Practicing Indian Economy MCQs
- Frequently asked in UPSC, SSC, Banking, Railways, and State exams
- Helps build strong foundational knowledge of how the Indian economy works
- Useful for interviews, essay writing, and current affairs sections
- Reinforces learning through practice-based revision
- Relevant for economics, commerce, and finance-related roles
Note
Understanding the Indian economy not only helps in exams but also improves your overall awareness as a citizen. With GKwizard’s MCQs, you can revise important concepts, practice exam-style questions, and boost your preparation for any competitive test.