Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.
31. What is the FDI limit in brownfield medical device projects in India?
[A] 74%
[B] 100%
[C] 49%
[D] 51%
Show Answer
Correct Answer: B [100%]
Notes:
India allows 100% Foreign Direct Investment (FDI) under the automatic route for medical devices manufacturing, including brownfield projects. This provision is distinct from pharmaceuticals, where brownfield FDI is capped at 74% automatically. Government policy for medical devices was clarified in 2015 and further updated by DPIIT notifications. The 100% FDI applies equally to greenfield and brownfield projects.
32. When was Software technology parks established in India?
[A] 1999
[B] 1991
[C] 1995
[D] 2000
Show Answer
Correct Answer: B [1991]
Notes:
The software technology parks was established as a society in 1991 by MEITY. It is to boost exports of IT industry of India.
33. What did the Industrial Policy Resolution of 1948 establish for India’s economy?
[A] A socialist economy with complete state control
[B] A mixed economy with public and private sectors
[C] A capitalist economy with minimal government intervention
[D] An economy reserved for private enterprise and foreign investment
Show Answer
Correct Answer: B [A mixed economy with public and private sectors]
Notes:
The Industrial Policy Resolution of 1948 defined India as a mixed economy. Strategic sectors like defense and atomic energy were reserved for the state. Certain industries, including coal and aircraft manufacturing, were allocated to state undertakings. Private sector was allowed in other areas under government regulations. This resolution formed the basis for industrial development policies after independence.
34. Which is India’s only riverine port?
[A] Kolkata
[B] Mumbai
[C] Tuticorin
[D] Mormugao
Show Answer
Correct Answer: A [Kolkata]
Notes:
Kolkata Port is the only major Riverine port Situated on Hugli river. It is Known as Diamond Harbour.
35. Which country is the world’s largest LNG importer?
[A] Japan
[B] China
[C] USA
[D] India
Show Answer
Correct Answer: B [China]
Notes:
China became the world’s largest LNG importer in 2021, surpassing Japan. China’s LNG imports exceeded 78 million tonnes in 2023. Japan held the top position until 2020. China’s LNG demand is driven by government policies to reduce coal usage and improve air quality. South Korea is the third largest importer. The U.S., Qatar, and Australia are main global LNG exporters.
36. Which country is India’s main source of imported hydropower?
[A] China
[B] Bhutan
[C] Bangladesh
[D] Sri Lanka
Show Answer
Correct Answer: B [Bhutan]
Notes:
Bhutan exports about 70% of its hydropower to India. From 2016 to 2018, Bhutan sent an average of 5,242 million units of electricity annually to India. Bhutan’s electricity export is a result of hydropower projects built with Indian cooperation. Bhutan also imports some power from India during its lean winter months.
37. In which state Nathpa Hydroelectric power plant is located?
[A] Himachal Pradesh
[B] Uttarakhand
[C] Ladakh
[D] Arunachal Pradesh
Show Answer
Correct Answer: A [Himachal Pradesh]
Notes:
Nathpa Jhakri Hydroelectric Power Plant is the biggest underground hydroelectric power project in the country. It is located in Himachal Pradesh.
38. In which state Koyana Hydroelectric Power Project is located?
[A] Karnataka
[B] Maharashtra
[C] Madhya Pradesh
[D] Kerala
Show Answer
Correct Answer: B [Maharashtra]
Notes:
Koyana Hydroelectric Power Project is located in Maharashtra. It is over Koyana river.
39. Which portal creates a national database of unorganised workers in India?
[A] Madad Portal
[B] Shram Suvidha Portal
[C] SAMADHAN Portal
[D] e-SHRAM Portal
Show Answer
Correct Answer: D [e-SHRAM Portal]
Notes:
The e-SHRAM portal was launched on 26 August 2021 by the Ministry of Labour and Employment. The portal is aimed at creating the first national database of unorganised workers, including migrant, construction, gig, and platform workers. Registrants receive a Universal Account Number and e-SHRAM card. Integration with the PM Gati Shakti Portal and e-SHRAM One-Stop-Solution was added in 2024. Over 19,000 registrations were processed via UMANG as of December 2024.
40. Which of the following laws states that with constant tastes and preferences, the proportion of income spent on food items decreases as income increases?
[A] Say’s Law
[B] Griffin’s Law
[C] Gresham’s Law
[D] Engel’s Law
Show Answer
Correct Answer: D [Engel’s Law]
Notes:
According to Engel’s law, as the consumer’s disposable income increases, the percentage of income spent on food decreases with all other factors remaining constant. This happens even when the actual expenditure on food increases. The income elasticity of demand for food is less than 1. A low Engel coefficient indicates a high standard of living.
