Table of Contents
Here are some important General Knowledge (GK) questions and answers on the Indian economy. These questions cover a wide range of topics related to the Indian economy, including economic policies, sectors, government initiatives, and more. Use these questions to test your knowledge or to prepare for competitive exams and interviews.
Basic Concepts of Indian Economy
Ques 1. What is the Gross Domestic Product (GDP) of India?
Answer: The GDP of India is the total economic output of the country and is usually measured annually.
Ques 2. Define Inflation.
Answer: Inflation is the rate at which the general level of prices for goods and services rises, resulting in a decrease in the purchasing power of a country’s currency.
Ques 3. What is Fiscal Policy?
Answer: Fiscal policy refers to the government’s use of taxation and public expenditure to influence the economy.
Ques 4. Explain the term ‘Per Capita Income.’
Answer: Per Capita Income is the average income earned per person in a specific region over a given period.
Economic Sectors
Ques 1. Name the primary sectors of the Indian economy.
Answer: The primary sectors are agriculture, forestry, fishing, and mining.
Ques 2. Which sector is known as the backbone of the Indian economy?
Answer: Agriculture is often referred to as the backbone of the Indian economy.
Ques 3. What is the main focus of the secondary sector in the Indian economy?
Answer: The secondary sector mainly deals with manufacturing and industrial activities.
Ques 4. Mention some key industries in the tertiary sector.
Answer: Industries in the tertiary sector include healthcare, education, tourism, and IT services.
Economic Reforms
Ques 1. What are the LPG reforms in the Indian economy?
Answer: LPG stands for Liberalization, Privatization, and Globalization – a set of economic reforms in India in the 1990s.
Ques 2. Who was the Finance Minister of India during the economic reforms of 1991?
Answer: Dr. Manmohan Singh served as the Finance Minister of India during that period.
Ques 3. What is the significance of the Goods and Services Tax (GST) in India?
Answer: GST is a unified tax system that replaced multiple indirect taxes, simplifying the tax structure in India.
Government Initiatives
Ques 1. What is the “Make in India” campaign?
Answer: “Make in India” is an initiative to promote manufacturing and boost economic growth in India.
Ques 2. What is the Pradhan Mantri Jan Dhan Yojana?
Answer: It is a financial inclusion program aimed at providing banking and financial services to all Indian households.
Ques 3. Name the flagship employment generation program launched by the Indian government.
Answer: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Banking and Finance
Ques 1. Who is the current Governor of the Reserve Bank of India (RBI)?
Answer: As of my last knowledge update in September 2021, Shaktikanta Das was the RBI Governor. Please verify the current Governor.
Ques 2. What is the National Stock Exchange (NSE) and where is it located?
Answer: The NSE is a stock exchange located in Mumbai, India.
Ques 3. Define NPA in the context of banking.
Answer: NPA stands for Non-Performing Asset, which is a loan or advance for which interest or installment of principal remains overdue for a specific period.
International Trade
Ques 1. What is India’s largest export item in terms of value?
Answer: Gems and jewelry are India’s largest export items in terms of value.
Ques 2. Which international organization aims to promote international trade and reduce trade barriers?
Answer: The World Trade Organization (WTO).
Ques 3. What is a trade deficit?
Answer: A trade deficit occurs when a country’s imports exceed its exports, resulting in a negative balance of trade.
Economic Challenges
Ques 1. What is the poverty line in India?
Answer: The poverty line in India is the minimum income level required to meet basic living expenses. It varies based on rural and urban areas.
Ques 2. What is the concept of Brain Drain?
Answer: Brain Drain refers to the emigration of highly skilled and educated individuals from one country to another in search of better opportunities.
Ques 3. Name a government program aimed at financial inclusion in rural India.
Answer: Pradhan Mantri Jan Dhan Yojana (PMJDY).
Economic Indicators
Ques 1. What is the Repo Rate?
Answer: The Repo Rate is the rate at which the central bank lends money to commercial banks in India.
Ques 2. Define GDP per capita.
Answer: GDP per capita is the GDP of a country divided by its population, indicating the average income per person.
Ques 3. Which index is used to measure inflation in India?
Answer: The Consumer Price Index (CPI) is used to measure inflation in India.
Infrastructure Development
Ques 1. What is the Bharatmala project?
Answer: Bharatmala is a government initiative for the development of a road network in India.
Ques 2. What is the importance of the Sagarmala project?
Answer: The Sagarmala project aims to promote port-led development and optimize logistics in the country.
Recent Economic Trends
Ques 1. What was the impact of the COVID-19 pandemic on the Indian economy?
Answer: The pandemic had a significant negative impact on various sectors, leading to economic challenges.
Ques 2. What is the “Aatmanirbhar Bharat” initiative?
Answer: “Aatmanirbhar Bharat” (Self-reliant India) is a set of economic policies aimed at making India self-sufficient.
Agriculture and Farming
Ques 1. What is the Green Revolution, and when did it take place in India?
Answer: The Green Revolution was a period of increased agricultural productivity, particularly in wheat and rice production, and it took place in India during the late 1960s and 1970s.
Ques 2. Which crop is known as the ‘Golden Fiber’ in India?
Answer: Jute is known as the ‘Golden Fiber’ in India.
Ques 3. What is the minimum support price (MSP) in Indian agriculture?
Answer: The minimum support price (MSP) is a guaranteed price at which the government purchases crops from farmers to provide them with a minimum income for their produce.
Trade Agreements
Ques 1. What is the ASEAN-India Free Trade Area (AIFTA)?
Answer: AIFTA is a free trade agreement between the Association of Southeast Asian Nations (ASEAN) and India, aimed at reducing or eliminating tariffs on trade.
Ques 2. What is the importance of the Comprehensive Economic Partnership Agreement (CEPA) in India’s trade relations?
Answer: CEPA is a trade agreement that aims to strengthen economic ties between India and another country or group of countries by reducing trade barriers and promoting cooperation.
Economic Institutions
Ques 1. What is the role of the Securities and Exchange Board of India (SEBI)?
Answer: SEBI is the regulatory authority for the securities market in India. Its role is to protect the interests of investors and ensure the smooth functioning of the securities market.
Ques 2 Name the organization responsible for the compilation of economic data and statistics in India.
Answer: The Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation is responsible for compiling and publishing economic data and statistics in India.
Financial Inclusion
Ques 1. What is the Jan Dhan Yojana, and what is its primary objective?
Answer: The Jan Dhan Yojana is a financial inclusion program that aims to provide access to financial services for all, especially those who are economically disadvantaged.
Ques 2. Name the Indian government’s initiative for direct cash transfer to beneficiaries.
Answer: The Direct Benefit Transfer (DBT) scheme is the initiative for direct cash transfer to beneficiaries.
Industrial Development
Ques 1. What is the ‘Make in India’ initiative, and when was it launched?
Answer: ‘Make in India’ is an initiative launched in September 2014 to promote manufacturing and encourage foreign investment in India.
Ques 2. What is the importance of the Special Economic Zones (SEZs) in India?
Answer: SEZs are designated areas in India with special economic regulations and incentives to promote economic activity and exports.
Sustainable Development
Ques 1. What are Sustainable Development Goals (SDGs), and how many are there?
Answer: The SDGs are a set of 17 global goals adopted by the United Nations in 2015 to address various social, economic, and environmental challenges by 2030.
Ques 2. What is the National Clean Air Programme (NCAP)?
Answer: The NCAP is a government initiative to address air quality issues in urban areas and promote clean air.
Currency and Banking
Ques 1. What is the Indian currency known as, and what is its symbol?
Answer: The Indian currency is known as the Indian Rupee (INR), and its symbol is ₹.
Ques 2. Which Indian bank is the oldest and has the tagline “The Banker to Every Indian”?
Answer: The State Bank of India (SBI) is the oldest bank in India and uses the tagline “The Banker to Every Indian.”
Economic Planning
Ques 1. What is the Five-Year Plan in the context of India’s economic planning?
Answer: The Five-Year Plan is a series of economic development plans in India that set out the government’s objectives for a five-year period.
Ques 2. Who was the first Prime Minister of India to introduce economic planning in the country?
Answer: Jawaharlal Nehru was the first Prime Minister of India to introduce economic planning, and the first Five-Year Plan was launched in 1951.
Taxation
Ques 1. What is the Goods and Services Tax (GST), and how does it impact the Indian economy?
Answer: GST is a unified indirect tax levied on the supply of goods and services in India. It simplifies the taxation system and promotes economic efficiency.
Ques 2. What is the Direct Tax Code (DTC)?
Answer: The Direct Tax Code is a proposal to simplify and consolidate the direct taxes in India, such as income tax.
Stock Markets
Ques 1. What are Nifty and Sensex, and how do they relate to the Indian stock market?
Answer: Nifty is the National Stock Exchange (NSE) index, while Sensex is the Bombay Stock Exchange (BSE) index. They represent the performance of the Indian stock market by tracking the performance of a select group of companies.
