Indian Economy MCQs

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Monetary Policy Committee (MPC) committee comprises six members – three officials of the Reserve Bank of India and three external members nominated by the Government of India.

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India’s first Five-Year Plan was launched in 1951 under Prime Minister Jawaharlal Nehru. The plan focused on the development of the agricultural sector. The Planning Commission was officially constituted on 15 March 1950. The plan period lasted from 1951 to 1956. The plan was based on the Harrod-Domar model. The final draft was presented to the Parliament and given approval by the National Development Council.

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At end-March 2025, India’s outstanding commercial borrowings reached $291.6 billion, a 16.4% rise from the previous year. Increase in ECBs directly raises external debt. Macroeconomic stability varies with hedging costs and exchange rate fluctuations, which can affect inflation and liquidity. The impact is also influenced by RBI’s management of foreign exchange reserves and currency volatility, not only the debt quantum.

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The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.

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Hindustan Shipyard Limited is the country’s premier shipbuilding organization. It is located on the East Coast of the Indian peninsula, at Visakhapatnam, Andhra Pradesh. In 2010, the company was transferred from the Ministry of Shipping to the Ministry of Defence.

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David Ricardo, an English classical economist, developed the law of rent in 1809. He presented the law in his book On the Principles of Political Economy and Taxation in 1821.
Ricardo’s theory defined rent as the portion of the earth’s produce that is paid to the landlord for the original and indestructible powers of the soil. In other words, rent is the price paid for the use of land.
Ricardo developed his theory to explain the origin and nature of economic rent. He used the economy and rent to analyze the large rise in corn and land prices during the Napoleonic wars (1805-1815).
The term “Ricardian rent” comes from Ricardo’s theory.

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Caste-based social discrimination in India is classified as a social, not economic, factor. The caste system leads to social exclusion and restricts access to education and jobs for marginalized groups such as Scheduled Castes and Scheduled Tribes. Social discrimination originates from traditional societal structures and legal history, rather than economic variables like production levels, employment rate, or population growth.

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The planners at Breton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group

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BOLT stands for Build, Own, Lease, Transfer. In this model, a private entity constructs and owns the infrastructure facility, leases it to a government or public sector agency for an agreed period, and afterward transfers ownership to the public authority. The model was adopted to attract private investment in public infrastructure in India from the 1990s and is used in sectors like transportation and power.

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The Gender Development Index was introduced by UNDP in 1995. It assesses gender gaps in health (life expectancy at birth), education (years of schooling), and income (estimated earned income). GDI uses the ratio of female to male Human Development Index values. A value of 1 indicates gender parity. It was released with the Gender Empowerment Measure. The Gender Inequality Index was introduced in 2010 and includes reproductive health and labour market participation.