Indian Economy Practice Questions with Answers 2025 PDF Download.
Q1. What is the purpose of the Pradhan Mantri Jan Dhan Yojana?
Correct Answer:
Open bank accounts for everyone
Explanation:
This scheme promotes financial inclusion by encouraging people, especially in rural areas, to open bank accounts.
Q2. What is a fiscal year in India?
Correct Answer:
April to March
Explanation:
India’s fiscal year runs from April 1 to March 31 for accounting and budgeting purposes.
Q3. Which Indian state is the largest producer of rice?
Correct Answer:
West Bengal
Explanation:
West Bengal is the leading rice producer due to its fertile land and ample water supply.
Q4. What is meant by the term "disinvestment"?
Correct Answer:
Selling public sector assets to private companies
Explanation:
Disinvestment is when the government reduces its stake in public sector enterprises.
Q5. What is the role of SEBI in India?
Correct Answer:
Regulates the stock market
Explanation:
SEBI (Securities and Exchange Board of India) ensures that stock markets function fairly and transparently.
Q6. Which is the largest employer in India?
Correct Answer:
Indian Railways
Explanation:
Indian Railways, operated by the government, is the largest employer in the country.
Q7. What does "MSME" stand for?
Correct Answer:
Medium, Small, and Micro Enterprises
Explanation:
MSMEs are small-scale industries that contribute significantly to India’s economy and employment.
Q8. What is a budget deficit?
Correct Answer:
Excess of expenditure over revenue
Explanation:
A budget deficit occurs when a government spends more money than it earns.
Q9. What is the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?
Correct Answer:
Guaranteed 100 days of work in rural areas
Explanation:
MGNREGA provides rural households with at least 100 days of wage employment every year.
Q10. What is India's largest export commodity?
Correct Answer:
IT services
Explanation:
India is known globally for its IT sector, contributing significantly to exports.
Q11. What is the objective of "Make in India"?
Correct Answer:
Boost local manufacturing
Explanation:
The "Make in India" initiative was launched to encourage companies to manufacture products in India and increase employment.
Q12. Which of these is a public sector bank in India?
Correct Answer:
State Bank of India
Explanation:
Public sector banks are owned by the government. SBI is one of the largest public sector banks in India.
Q13. What is FDI?
Correct Answer:
Foreign Direct Investment
Explanation:
FDI refers to investments made by foreign entities directly into a country's businesses.
Q14. What is the full form of GST?
Correct Answer:
Goods and Services Tax
Explanation:
GST is a tax on goods and services that replaces many indirect taxes in India to create a uniform taxation system.
Q15. What does the term "inflation" mean?
Correct Answer:
Increase in prices of goods and services
Explanation:
Inflation is when prices rise, reducing the purchasing power of money.