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
32
The 'base effect' in inflation refers to the impact of:
33
Which of the following is a major challenge for the Indian financial sector?
34
The 'Lorenz curve' is a graphical representation of:
35
What is the primary objective of the 'Smart Cities Mission'?
36
The 'Tobin tax' is a tax proposed on:
37
Which of the following best describes the 'demonetization' exercise undertaken in India in 2016?
38
The 'Wholesale Price Index' (WPI) measures the changes in the prices of:
39
What is the primary objective of the 'National Education Policy 2020' with respect to the economy?
40
Gresham's Law' in economics states that:
41
Which of the following is a major challenge related to income inequality in India?
42
The 'Purchasing Power Parity' (PPP) exchange rate aims to equalize:
43
What is the primary objective of the 'Ayushman Bharat' scheme?
44
Moral suasion' is a tool used by the Reserve Bank of India to:
45
Which of the following sectors contributes the most to employment in India?
46
The 'sustainable development goals' (SDGs) adopted by the United Nations aim to achieve:
47
What is the primary objective of the 'National Food Security Act, 2013'?
48
The 'Cash Reserve Ratio' (CRR) is the percentage of a bank's total deposits that it is required to:
49
Which of the following is a major concern regarding the environmental sustainability of India's economic growth?
50
Say's Law' in classical economics states that:
51
What is the primary objective of the 'Pradhan Mantri Awas Yojana' (PMAY)?
52
The 'Statutory Liquidity Ratio' (SLR) is the percentage of a bank's total deposits that it is required to maintain in the form of:
53
Which of the following is a major challenge related to social infrastructure in India?
54
The 'Quantity Theory of Money' primarily relates changes in the money supply to changes in:
55
What is the primary objective of the 'National Mission for Clean Ganga' (NMCG)?
56
Deflation' refers to a sustained decrease in the:
57
Which of the following best describes the 'informal sector' in the Indian economy?
58
The 'Consumer Price Index' (CPI) measures the changes in the prices of:
59
What is the primary objective of the 'Digital India' campaign?
60
Opportunity cost' in economics refers to:
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.