Indian Economy MCQs for RRB NTPC 2024: In Detail with Answer

The Indian Economy is a significant topic in the RRB NTPC 2024 exam, with multiple-choice questions (MCQs) covering a wide range of subtopics like economic growth, national income, economic policies, planning, and current economic issues. To help you prepare, we’ve compiled a set of MCQs focused specifically on the Indian economy, which will be beneficial for your upcoming exam.

Let’s dive into these 50 Indian Economy-related MCQs designed to improve your understanding and preparation for the RRB NTPC exam.

Indian Economy MCQs for RRB NTPC 2024

1. Economic Planning and Policy

Which of the following is the objective of India’s Five-Year Plans?
- A) Economic growth and development
- B) Population control
- C) Industrialization
- D) Both A and C
- Answer: D) Both A and C
The first Five-Year Plan in India was based on the model of:
- A) Soviet Union
- B) USA
- C) UK
- D) Japan
- Answer: A) Soviet Union
The NITI Aayog (National Institution for Transforming India) was established in:
- A) 2014
- B) 2015
- C) 2016
- D) 2017
- Answer: B) 2015
Which of the following is not a feature of a mixed economy?
- A) Coexistence of public and private sectors
- B) The economy is controlled by the government
- C) Private sector works without government interference
- D) The government controls the banking sector
- Answer: C) Private sector works without government interference
The Planning Commission of India was replaced by NITI Aayog in:
- A) 2013
- B) 2014
- C) 2015
- D) 2016
- Answer: C) 2015

2. National Income and Economic Development

The GDP deflator is used to measure:
- A) Inflation
- B) Employment rate
- C) Trade balance
- D) Government spending
- Answer: A) Inflation
Which of the following is not included in the calculation of GDP in India?
- A) Production of goods
- B) Income from export services
- C) Government expenditure
- D) Transfer payments
- Answer: D) Transfer payments
The primary sector of the economy includes:
- A) Manufacturing and construction
- B) Services like banking and insurance
- C) Agriculture, mining, and forestry
- D) Information technology
- Answer: C) Agriculture, mining, and forestry
In India, the GDP growth rate is generally calculated on the basis of:
- A) Current prices
- B) Constant prices
- C) National income
- D) Income per capita
- Answer: B) Constant prices
What does the term ‘economic development’ refer to?
- A) Increase in national income
- B) Increase in the standard of living
- C) Increase in employment
- D) All of the above
- Answer: D) All of the above

3. Indian Economic Reforms

The LPG model (Liberalization, Privatization, and Globalization) was introduced in India in:
- A) 1991
- B) 1992
- C) 1993
- D) 1995
- Answer: A) 1991
Which of the following is an objective of economic liberalization?
- A) Decrease in government control
- B) Increase in subsidies
- C) Introduction of import restrictions
- D) Control of public sector enterprises
- Answer: A) Decrease in government control
Which of the following was a major step taken by the Indian government during the economic reforms of 1991?
- A) Devaluation of the Indian rupee
- B) Increase in tariffs on imports
- C) Nationalization of private industries
- D) Privatization of major state-run enterprises
- Answer: A) Devaluation of the Indian rupee
What is the main objective of the ‘Make in India’ initiative?
- A) To promote indigenous manufacturing
- B) To increase exports of agricultural products
- C) To boost foreign tourism
- D) To reduce imports of goods
- Answer: A) To promote indigenous manufacturing
The Goods and Services Tax (GST) was implemented in India in:
- A) 2014
- B) 2015
- C) 2016
- D) 2017
- Answer: D) 2017

4. Agriculture and Rural Economy

The Green Revolution in India is associated with the increase in:
- A) Agricultural productivity
- B) Industrialization
- C) Service sector growth
- D) Foreign direct investment
- Answer: A) Agricultural productivity
Which government scheme aims to double the income of farmers by 2022?
- A) Pradhan Mantri Fasal Bima Yojana
- B) National Agricultural Policy
- C) Pradhan Mantri Kisan Samman Nidhi
- D) Soil Health Management
- Answer: B) National Agricultural Policy
The National Rural Employment Guarantee Act (NREGA) was renamed as:
- A) MGNREGA
- B) PMGKY
- C) Sarva Shiksha Abhiyan
- D) Atal Pension Yojana
- Answer: A) MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
Which of the following is a cash crop of India?
- A) Rice
- B) Cotton
- C) Wheat
- D) Pulses
- Answer: B) Cotton
Which of the following is a major cause of rural indebtedness in India?
- A) Lack of proper irrigation
- B) Poor monsoons and crop failure
- C) Low prices for agricultural products
- D) All of the above
- Answer: D) All of the above

5. Banking, Finance, and Government Revenue

Which of the following is the regulatory body for the banking sector in India?
- A) Reserve Bank of India (RBI)
- B) Ministry of Finance
- C) Securities and Exchange Board of India (SEBI)
- D) Insurance Regulatory and Development Authority (IRDA)
- Answer: A) Reserve Bank of India (RBI)
Which of the following is the main source of revenue for the Indian government?
- A) Taxes
- B) External loans
- C) Disinvestment
- D) Foreign aid
- Answer: A) Taxes
The primary objective of the Pradhan Mantri Jan Dhan Yojana is to:
- A) Increase savings among poor families
- B) Promote financial inclusion
- C) Reduce government debt
- D) Provide free insurance
- Answer: B) Promote financial inclusion
Which of the following is the objective of the Indian government’s Fiscal Responsibility and Budget Management Act (FRBM)?
- A) To increase government expenditure
- B) To reduce fiscal deficits
- C) To boost economic growth
- D) To attract foreign investments
- Answer: B) To reduce fiscal deficits
Which of the following is an example of a direct tax in India?
- A) Excise duty
- B) Value Added Tax (VAT)
- C) Income Tax
- D) Customs duty
- Answer: C) Income Tax

6. Economic Indicators and International Trade

The term ‘Balance of Payments’ refers to:
- A) The balance between government revenue and expenditure
- B) The total value of imports and exports
- C) The difference between a country’s exports and imports
- D) The record of all financial transactions between a country and the rest of the world
- Answer: D) The record of all financial transactions between a country and the rest of the world
Which of the following is India’s largest export partner?
- A) China
- B) USA
- C) UAE
- D) European Union
- Answer: B) USA
Which of the following is the primary source of foreign direct investment (FDI) in India?
- A) Manufacturing sector
- B) Service sector
- C) Agriculture
- D) Mining
- Answer: B) Service sector
The Indian rupee is a currency of:
- A) ASEAN
- B) BRICS
- C) G7
- D) SAARC
- Answer: B) BRICS
The ‘World Trade Organization’ (WTO) was established in:
- A) 1990
- B) 1995
- C) 2000
- D) 2010
- Answer: B) 1995

7. Current Issues in Indian Economy

The inflation rate in India is measured by:
- A) Wholesale Price Index (WPI)
- B) Consumer Price Index (CPI)
- C) GDP Deflator
- D) Both A and B
- Answer: D) Both A and B
Which of the following is the primary objective of the ‘Startup India’ initiative?
- A) Promote entrepreneurship
- B) Reduce unemployment
- C) Attract foreign investments
- D) All of the above
- Answer: D) All of the above
Which of the following is the primary reason for the high fiscal deficit in India?
- A) High government expenditure
- B) Low tax collection
- C) High subsidies
- D) All of the above
- Answer: D) All of the above
India’s official poverty line is determined based on:
- A) Minimum consumption basket
- B) Average income
- C) Human Development Index
- D) All of the above
- Answer: A) Minimum consumption basket
India’s per capita income is calculated by:
- A) Total income divided by population
- B) Total income divided by the labor force
- C) Total government expenditure divided by the population
- D) None of the above
- Answer: A) Total income divided by population
Monetary Policy and Banking
Which of the following is the main function of the Reserve Bank of India (RBI)?
A) Formulating fiscal policies
B) Managing India’s external debt
C) Regulating money supply and interest rates
D) Conducting trade negotiations
Answer: C) Regulating money supply and interest rates
What is the primary objective of the monetary policy in India?
A) Control inflation
B) Increase tax revenue
C) Promote exports
D) Reduce poverty
Answer: A) Control inflation
The Liquidity Adjustment Facility (LAF) is a tool used by:
A) Ministry of Finance
B) Reserve Bank of India (RBI)
C) Government of India
D) Securities and Exchange Board of India (SEBI)
Answer: B) Reserve Bank of India (RBI)
What does the ‘Repo Rate’ refer to in the Indian banking system?
A) The interest rate charged by commercial banks on loans
B) The rate at which RBI lends to commercial banks
C) The rate at which commercial banks lend to the government
D) The rate charged on government securities
Answer: B) The rate at which RBI lends to commercial banks
Which of the following measures is used by the Reserve Bank of India (RBI) to control inflation?
A) Reducing government expenditure
B) Raising the cash reserve ratio (CRR)
C) Decreasing interest rates
D) Subsidizing essential goods
Answer: B) Raising the cash reserve ratio (CRR)

Public Finance and Government Budget
The term ‘deficit financing’ refers to:
A) Borrowing money from international institutions
B) Printing new currency to meet fiscal deficits
C) Raising taxes to bridge the gap between revenue and expenditure
D) Reducing government expenditure
Answer: B) Printing new currency to meet fiscal deficits
The Indian government’s budget is presented annually by:
A) The President of India
B) The Finance Minister
C) The Prime Minister
D) The Reserve Bank of India (RBI)
Answer: B) The Finance Minister
Which of the following is the major source of government revenue in India?
A) Direct Taxes
B) Indirect Taxes
C) Borrowing from international agencies
D) All of the above
Answer: D) All of the above
The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in India to:
A) Control inflation
B) Ensure transparency in the government budget
C) Limit the fiscal deficit and government borrowing
D) Regulate the stock market
Answer: C) Limit the fiscal deficit and government borrowing
What is the primary objective of the Indian government’s subsidy policies?
A) To encourage foreign investment
B) To protect domestic industries
C) To reduce the cost of living for the poor
D) To promote technological innovation
Answer: C) To reduce the cost of living for the poor

10. Economic Growth and Challenges
India’s economic growth rate is primarily measured using:
A) Consumer Price Index (CPI)
B) Gross Domestic Product (GDP)
C) Human Development Index (HDI)
D) Industrial Growth Index (IGI)
Answer: B) Gross Domestic Product (GDP)
The poverty line in India is determined on the basis of:
A) Minimum income required for a basic standard of living
B) Average income in rural areas
C) Per capita income of the country
D) Total consumption expenditure
Answer: A) Minimum income required for a basic standard of living
Which of the following is considered as the biggest challenge for India’s economy?
A) Unemployment
B) Inflation
C) Poor infrastructure
D) All of the above
Answer: D) All of the above
The term ‘Digital India’ refers to:
A) Increasing internet penetration across the country
B) Government’s initiative to provide digital infrastructure
C) Promoting digital payments and e-governance
D) All of the above
Answer: D) All of the above
India’s current account deficit (CAD) is a measure of:
A) The difference between the government’s income and expenditure
B) The difference between imports and exports
C) The gap between income and expenditure of the private sector
D) The difference between savings and investment in the economy
Answer: B) The difference between imports and exports

11. Industrialization and Economic Policies
Which of the following is a part of the ‘Atmanirbhar Bharat Abhiyan’ scheme?
A) Promoting self-reliance in manufacturing
B) Reducing reliance on imports
C) Encouraging domestic production
D) All of the above
Answer: D) All of the above
Which of the following sectors is the backbone of India’s industrial economy?
A) Information technology
B) Manufacturing
C) Service sector
D) Agriculture
Answer: B) Manufacturing
The concept of ‘Make in India’ primarily focuses on:
A) Agricultural reforms
B) Developing financial markets
C) Boosting domestic manufacturing and foreign investment
D) Digital technology development
Answer: C) Boosting domestic manufacturing and foreign investment
Which of the following is an example of a public sector undertaking in India?
A) Tata Steel
B) Indian Oil Corporation (IOC)
C) Reliance Industries
D) Infosys
Answer: B) Indian Oil Corporation (IOC)
Which of the following was introduced under the ‘Pradhan Mantri Mudra Yojana’ (PMMY)?
A) Subsidized loans for entrepreneurs
B) Skill development programs
C) Financial support for education
D) Loans for housing development
Answer: A) Subsidized loans for entrepreneurs

12. External Sector and Trade
India’s largest export partner is:
A) China
B) USA
C) UAE
D) EU
Answer: B) USA
The primary purpose of the ‘Foreign Exchange Management Act’ (FEMA) is to:
A) Control inflation
B) Manage the country’s foreign exchange reserves
C) Regulate external borrowing
D) Ensure transparency in stock market transactions
Answer: B) Manage the country’s foreign exchange reserves
Which of the following is an example of an import-export item in India?
A) Petroleum
B) Electronics
C) Gold and silver
D) All of the above
Answer: D) All of the above
Which of the following Indian cities is known as the ‘financial capital’ of India?
A) New Delhi
B) Mumbai
C) Kolkata
D) Bangalore
Answer: B) Mumbai
The World Bank provides loans primarily for:
A) Military equipment
B) Industrial development
C) Infrastructure projects and poverty reduction
D) Promoting tourism
Answer: C) Infrastructure projects and poverty reduction

These additional MCQs further enhance your preparation for the RRB NTPC 2024 exam. These questions cover topics related to economic policies, challenges, industrialization, external sector, and government programs, which are crucial for understanding the Indian economy. Regular practice will help reinforce your concepts and improve your performance in the exam.

Also Read : Lifelines of National Economy MCQs for RRB NTPC 2024

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Indian Economy MCQs for RRB NTPC 2024: A Comprehensive Guide

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