Jammu and Kashmir Economy MCQs for all Exams

Jammu and Kashmir is the land called “Paradise on Earth,” whose economy has been diversified with a specific geography, resource base, and cultural heritage. Over the centuries, the economic base of this region was majorly an agrarian base with a focus on cultivating fruits like apples, saffron, and rice. The state also has a great horticulture sector with the apples and dry fruits as main export items. Tourism, due to its beautiful landscape, historical sites, and religious importance, is also very prominent in the economy of this region.

Political instability, natural calamities, and not much industrial development have posed major setbacks to the growth of this region. Recent economic reforms and initiatives aimed at industrialization, infrastructure development, and promotion of local crafts are slowly diversifying the economy of Jammu and Kashmir. The emerging economic scenario of the region is both challenging and opportunistic for future growth and prosperity.

Here are 50 MCQs on Jammu and Kashmir (JK) Economy to help you understand the key concepts of the region’s economic landscape:

Jammu and Kashmir Economy MCQs

1. General Economic Overview of Jammu and Kashmir

Which of the following is the primary source of income for Jammu and Kashmir?
- A) Tourism
- B) Agriculture
- C) Manufacturing
- D) Mining
- Answer: B) Agriculture
What is the capital of Jammu and Kashmir?
- A) Srinagar
- B) Jammu
- C) Leh
- D) Anantnag
- Answer: A) Srinagar
Which of the following is a major agricultural product of Jammu and Kashmir?
- A) Tea
- B) Rice
- C) Cotton
- D) Sugarcane
- Answer: B) Rice
What is the primary source of water for irrigation in Jammu and Kashmir?
- A) Rivers
- B) Groundwater
- C) Canals
- D) Lakes
- Answer: A) Rivers
Which of the following sectors contributes significantly to Jammu and Kashmir’s economy?
- A) IT Services
- B) Textiles
- C) Horticulture
- D) Pharmaceuticals
- Answer: C) Horticulture

2. Key Economic Sectors

Which fruit is Jammu and Kashmir famous for producing?
- A) Mango
- B) Apples
- C) Bananas
- D) Grapes
- Answer: B) Apples
What percentage of Jammu and Kashmir’s population is engaged in agriculture?
- A) 25%
- B) 40%
- C) 55%
- D) 70%
- Answer: D) 70%
Which is the most famous agricultural product of Jammu and Kashmir?
- A) Apple
- B) Pomegranate
- C) Grapes
- D) Banana
- Answer: A) Apple
Which of the following industries is growing rapidly in Jammu and Kashmir?
- A) Oil and Gas
- B) Information Technology
- C) Handicrafts and Handlooms
- D) Automobiles
- Answer: C) Handicrafts and Handlooms
Which type of tourism is most prominent in Jammu and Kashmir?
- A) Religious tourism
- B) Adventure tourism
- C) Eco-tourism
- D) Cultural tourism
- Answer: A) Religious tourism

3. Economic Development and Challenges

What is the major challenge facing Jammu and Kashmir’s economy?
- A) High unemployment
- B) Dependence on agriculture
- C) Water scarcity
- D) Political instability
- Answer: D) Political instability
Which of the following has the potential to boost the economy of Jammu and Kashmir?
- A) Renewable energy
- B) Heavy industries
- C) Coal mining
- D) Automobile manufacturing
- Answer: A) Renewable energy
Which scheme aims to boost infrastructure development in Jammu and Kashmir?
- A) PMAY (Pradhan Mantri Awas Yojana)
- B) PMGSY (Pradhan Mantri Gram Sadak Yojana)
- C) Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
- D) Srinagar Smart City Project
- Answer: D) Srinagar Smart City Project
Which is a significant economic reform in Jammu and Kashmir after the Article 370 abrogation?
- A) Introduction of GST
- B) Industrial Development Package
- C) Trade and Commerce restrictions lifted
- D) All of the above
- Answer: D) All of the above
Which sector employs a significant portion of Jammu and Kashmir’s workforce?
- A) Services
- B) Manufacturing
- C) Construction
- D) Agriculture
- Answer: D) Agriculture

4. Jammu and Kashmir’s Economic Planning and Budget

Which of the following is a major area of focus in Jammu and Kashmir’s annual budget?
- A) Health
- B) Tourism
- C) Education
- D) Infrastructure
- Answer: D) Infrastructure
Which government scheme focuses on improving the rural economy of Jammu and Kashmir?
- A) MGNREGA
- B) PMKVY
- C) Skill India
- D) Atal Pension Yojana
- Answer: A) MGNREGA
What is a key feature of the Jammu and Kashmir Industrial Policy 2020?
- A) Incentives for new industrial units
- B) Abolition of all taxes
- C) Restricting private industries
- D) Reducing government jobs
- Answer: A) Incentives for new industrial units
Which major transport project is expected to improve the economy of Jammu and Kashmir?
- A) Jammu-Kolkata Expressway
- B) Srinagar-Airport Expansion Project
- C) Kashmir Valley Railway
- D) Jammu-Srinagar Highway Four-laning
- Answer: C) Kashmir Valley Railway
Which institution has recently taken initiatives to improve financial literacy and access in Jammu and Kashmir?
- A) Reserve Bank of India (RBI)
- B) Jammu and Kashmir Bank
- C) NABARD
- D) SEBI
- Answer: B) Jammu and Kashmir Bank

5. Major Economic Indicators

What is the contribution of the service sector to Jammu and Kashmir’s GDP?
- A) 10%
- B) 30%
- C) 50%
- D) 70%
- Answer: B) 30%
Which of the following is a key area for Jammu and Kashmir’s economy post-Article 370 abrogation?
- A) Real estate development
- B) Information Technology parks
- C) Export of horticultural products
- D) Increasing coal mining
- Answer: C) Export of horticultural products
What is the key focus of the Jammu and Kashmir Handicraft Industry?
- A) Furniture and woodwork
- B) Woolen products
- C) Hand-knotted carpets
- D) All of the above
- Answer: D) All of the above
The Gharana Wetland Conservation Reserve is located in which district of Jammu and Kashmir?
- A) Anantnag
- B) Samba
- C) Baramulla
- D) Jammu
- Answer: B) Samba
What is the main source of energy for Jammu and Kashmir’s industrial sectors?
- A) Hydro power
- B) Coal
- C) Solar energy
- D) Wind energy
- Answer: A) Hydro power

6. Economic Growth and Sustainability

Which of the following is an environmental challenge impacting Jammu and Kashmir’s economy?
- A) Air pollution
- B) Deforestation
- C) Water pollution
- D) All of the above
- Answer: D) All of the above
What is the primary agricultural challenge in Jammu and Kashmir?
- A) Lack of water resources
- B) Soil erosion
- C) Political instability
- D) Market access
- Answer: B) Soil erosion
Which of the following industries in Jammu and Kashmir is facing an acute labor shortage?
- A) Agriculture
- B) Handicrafts
- C) Manufacturing
- D) Construction
- Answer: B) Handicrafts
Which of the following has the Jammu and Kashmir government identified as a key growth sector?
- A) Textile manufacturing
- B) Film tourism
- C) Green energy
- D) Heavy industries
- Answer: C) Green energy
What percentage of Jammu and Kashmir’s area is covered by forests?
- A) 20%
- B) 35%
- C) 50%
- D) 70%
- Answer: B) 35%

7. Government Schemes and Economic Initiatives

Which of the following government schemes focuses on the development of rural tourism in Jammu and Kashmir?
- A) PMAY
- B) Swadesh Darshan Scheme
- C) Udaan Scheme
- D) Deendayal Upadhyaya Gram Jyoti Yojana
- Answer: B) Swadesh Darshan Scheme
The Jammu and Kashmir government has recently launched a scheme for the promotion of which sector?
- A) Solar energy
- B) Information technology
- C) Handicrafts
- D) Agriculture
- Answer: C) Handicrafts
Which scheme aims to boost employment opportunities for youth in Jammu and Kashmir?
- A) Skill India
- B) MUDRA Yojana
- C) Udaan Scheme
- D) PMAY
- Answer: C) Udaan Scheme
Which government initiative focuses on improving connectivity in Jammu and Kashmir?
- A) PMGSY
- B) Bharat Mala Project
- C) Srinagar Metro Project
- D) Sethu Bharatam
- Answer: B) Bharat Mala Project
Which of the following steps has been taken by the government to boost industrial growth in Jammu and Kashmir?
- A) Establishment of Industrial Zones
- B) Reduction in tax rates
- C) Introduction of MSME policies
- D) All of the above
- Answer: D) All of the above

8. Future Prospects and Economic Outlook

What is the major focus of Jammu and Kashmir’s economy in the coming years?
- A) Heavy industry
- B) Digital transformation
- C) Service sector expansion
- D) All of the above
- Answer: B) Digital transformation
What is a potential growth opportunity for Jammu and Kashmir’s economy?
- A) Increased foreign direct investment (FDI)
- B) Expansion of tourism infrastructure
- C) Promotion of local handicrafts
- D) All of the above
- Answer: D) All of the above
Which of the following is a government initiative to promote financial inclusion in Jammu and Kashmir?
- A) Digital India Programme
- B) Jan Dhan Yojana
- C) PMGDISHA
- D) Make in India
- Answer: B) Jan Dhan Yojana
What is the key challenge to economic growth in Jammu and Kashmir?
- A) Limited natural resources
- B) Political instability
- C) Lack of skilled labor
- D) Infrastructure deficit
- Answer: B) Political instability
What is the primary goal of the Jammu and Kashmir Reorganization Act of 2019?
- A) Economic decentralization
- B) Greater autonomy for the region
- C) Integration with the Indian economy
- D) Greater political participation
- Answer: C) Integration with the Indian economy

Jammu and Kashmir Economy MCQs (Additional)

Which of the following is a key industry in Jammu and Kashmir besides agriculture?

A) Pharmaceuticals
B) Handicrafts
C) Oil and Gas
D) Textiles
Answer: B) Handicrafts

Which crop is most commonly grown in the region of Jammu and Kashmir?

A) Maize
B) Rice
C) Wheat
D) Cotton
Answer: B) Rice

Which of the following rivers is important for irrigation in Jammu and Kashmir?

A) Ganga
B) Indus
C) Jhelum
D) Yamuna
Answer: C) Jhelum

The famous “Kashmir Shawl” industry falls under which sector of the economy?

A) Manufacturing
B) Agriculture
C) Handicrafts
D) Services
Answer: C) Handicrafts

Which of the following is a primary source of employment in Jammu and Kashmir?

A) Tourism
B) Information technology
C) Agriculture
D) Heavy industry
Answer: C) Agriculture

Which of the following is a major export of Jammu and Kashmir?

A) Wool
B) Apple
C) Cotton
D) Coal
Answer: B) Apple

What is the main objective of the “Udaan Scheme” in Jammu and Kashmir?

A) To promote religious tourism
B) To boost employment among youth
C) To improve infrastructure in rural areas
D) To promote handicraft industries
Answer: B) To boost employment among youth

Which of the following is a key challenge faced by the tourism industry in Jammu and Kashmir?

A) Lack of infrastructure
B) Shortage of natural resources
C) Inadequate number of tourists
D) Political instability
Answer: D) Political instability

Which government initiative aims to boost skill development in Jammu and Kashmir?

A) PMKVY (Pradhan Mantri Kaushal Vikas Yojana)
B) Make in India
C) Digital India
D) Pradhan Mantri Mudra Yojana
Answer: A) PMKVY (Pradhan Mantri Kaushal Vikas Yojana)

Which region in Jammu and Kashmir is known for the cultivation of saffron?

A) Anantnag
B) Leh
C) Pulwama
D) Kargil
Answer: C) Pulwama

Which of the following industries is being actively promoted by the Jammu and Kashmir government for its economic growth?

A) Textile industry
B) Solar power industry
C) Mining industry
D) Manufacturing of electronic goods
Answer: B) Solar power industry

What is the main agricultural export of Jammu and Kashmir, besides apples?

A) Rice
B) Dry fruits
C) Tea
D) Spices
Answer: B) Dry fruits

Which of the following infrastructure projects is expected to boost the economy of Jammu and Kashmir?

A) Development of metro services in Srinagar
B) Jammu-Kolkata Expressway
C) Jammu and Kashmir International Airport expansion
D) All of the above
Answer: D) All of the above

What is the main objective of the Jammu and Kashmir Industrial Policy 2020?

A) To increase government spending
B) To attract investments and promote industrial growth
C) To reduce the number of government jobs
D) To limit foreign investments
Answer: B) To attract investments and promote industrial growth

Which of the following is a significant aspect of the “Smart City Project” for Jammu and Kashmir?

A) Building new factories
B) Promoting religious tourism
C) Enhancing urban infrastructure
D) Encouraging cottage industries
Answer: C) Enhancing urban infrastructure

The economy of Jammu and Kashmir is diverse. Agriculture, handicrafts, and tourism form important sectors. Challenges in the region include political instability, but the area has growth through initiatives in industrial development, infrastructure, and skills enhancement. The future is bright with increasing investment and diversification of the economy.

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