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
62
Externalities' in economics refer to:
63
The economic policies of the Delhi Sultanate (1206-1526) primarily focused on:
64
During the Mughal Empire (1526-1757), India was known for its dominance in the production and export of:
65
The East India Company's initial economic interest in India was primarily driven by:
66
The Permanent Settlement of 1793, introduced by Lord Cornwallis, was primarily related to:
67
The Ryotwari system of land revenue, prevalent in parts of British India like Madras and Bombay, involved:
68
The Mahalwari system of land revenue, practiced in regions like North-West Provinces and Punjab, involved:
69
The Drain of Wealth theory, popularized by Dadabhai Naoroji, argued that British rule was leading to:
70
The first cotton mill in India was established in:
71
The Swadeshi movement (early 20th century) primarily emphasized:
72
The economic impact of World War I (1914-1918) on India included:
73
The Great Depression of the 1930s had a significant impact on Indian agriculture, primarily through:
74
The Bombay Plan (1944), a proposal for India's post-independence economic development, was prepared by:
75
The dominant economic ideology influencing India's First Five-Year Plan (1951-1956) was:
76
The Second Five-Year Plan (1956-1961) laid significant emphasis on the development of:
77
The Industrial Policy Resolution of 1956 categorized industries into how many schedules?
78
The Green Revolution in India, which led to a significant increase in agricultural production, was primarily associated with:
79
The main architect of India's economic planning in the early decades after independence is considered to be:
80
The nationalization of major commercial banks in India was first undertaken in:
81
The Monopolies and Restrictive Trade Practices (MRTP) Act, enacted in 1969, aimed to:
82
The oil crises of the 1970s had a significant impact on the Indian economy, primarily through:
83
The Sixth Five-Year Plan (1980-1985) shifted its focus towards:
84
The economic liberalization reforms initiated in India in 1991 were a response to:
85
The key elements of the 1991 economic reforms included:
86
The Narasimham Committee II (1998) focused on further reforms in the:
87
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, aimed to:
88
The growth rate of the Indian economy in the decade of the 2000s (2000-2010) was significantly higher compared to previous decades, often attributed to:
89
The National Rural Employment Guarantee Act (NREGA), later renamed MGNREGA, was enacted in:
90
The Goods and Services Tax (GST) was implemented in India in:
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.