Great set of Indian Economy one-liner questions with Answers for CDS Examination in September 25

Great set of Indian Economy one-liner questions with Answers for CDS Examination in September 25

Practice Set- Indian Economy-1

Indian Economy – Objective Q&A with Explanations

1. Who presents the Union Budget in Parliament?
👉 The Finance Minister of India.
The annual financial statement (Union Budget) is presented in Lok Sabha by the Finance Minister on 1st February.

2. The term “Repo Rate” is related to?
👉 Monetary Policy (RBI lending to banks).
It is the rate at which RBI lends money to commercial banks against securities.

3. GST was introduced in India in which year?
👉 2017.
Goods and Services Tax came into effect on 1 July 2017, replacing multiple indirect taxes.

4. NITI Aayog replaced which planning body?
👉 Planning Commission.
Formed in 2015, NITI Aayog promotes cooperative federalism.

5. Which is the largest source of revenue for the Union Government?
👉 Goods and Services Tax (GST).
Indirect taxes, especially GST, form the largest share of government revenue.

6. RBI was established in which year?
👉 1935.
Under the RBI Act, 1934; nationalized in 1949.

7. Who issues currency notes in India?
👉 Reserve Bank of India (RBI).
Except ₹1 note and coins which are issued by the Ministry of Finance.

8. Which is called the “Lender of Last Resort”?
👉 Reserve Bank of India (RBI).
When banks fail to get funds from elsewhere, RBI provides emergency loans.

9. “Mixed Economy” means co-existence of?
👉 Public and Private Sectors.
India follows a mixed economic model.

10. The term “Bull and Bear” is related to?
👉 Stock Market.
Bull = rising market, Bear = falling market.

11. The first Five Year Plan was started in which year?
👉 1951.
Focused on agriculture, irrigation, and energy.

12. Who is known as the father of Indian Economic Planning?
👉 M. Visvesvaraya.
Proposed the idea of planning in his 1934 book “Planned Economy for India”.

13. Which tax was abolished after GST implementation?
👉 Octroi, Service Tax, VAT, Excise (most indirect taxes).

14. “Make in India” was launched in which year?
👉 2014.
To boost manufacturing and attract investments.

15. Which sector contributes the highest share to India’s GDP today?
👉 Tertiary/Service Sector.
Over 55% contribution to GDP.

16. India’s first Five-Year Plan focused on?
👉 Agriculture and Irrigation.
To achieve food security after independence.

17. Which sector is known as the “Primary Sector”?
👉 Agriculture and allied activities.

18. The Green Revolution in India was related to?
👉 Agricultural production increase (mainly wheat & rice).

19. Who regulates the Stock Market in India?
👉 SEBI (Securities and Exchange Board of India).

20. Which is the largest producer of milk in the world?
👉 India.
Due to the White Revolution led by Dr. Verghese Kurien.

21. The headquarters of RBI is located at?
👉 Mumbai.

22. Which Five-Year Plan was called “Gadgil Yojana”?
👉 Third Five-Year Plan (1961–66).
Because of the Gadgil formula for resource allocation.

23. Disinvestment means?
👉 Selling government’s stake in Public Sector Enterprises.

24. Which industry is the largest in India?
👉 Textile Industry.
Major contributor to exports and employment.

25. Which organization publishes the “World Development Report”?
👉 World Bank.

26. Who is regarded as the “Father of Indian Planning”?
👉 Jawaharlal Nehru.
Because he initiated the Five-Year Plans in 1951.

27. In which year was the Planning Commission established in India?
👉 1950.

28. Which Five-Year Plan is also called the “People’s Plan”?
👉 First Drafted by M.N. Roy (not officially adopted).

29. What is the base year of India’s GDP calculation (as of 2025)?
👉 2011–12.

30. Which sector contributes the largest share to India’s GDP?
👉 Service Sector.

31. Which organization publishes the “Index of Industrial Production” (IIP)?
👉 Central Statistical Organisation (CSO) under MoSPI.

32. The term “Green Revolution” in India is associated with which crop?
👉 Wheat (mainly) and Rice.

33. Who is known as the “Father of the White Revolution” in India?
👉 Dr. Verghese Kurien.

34. Which committee recommended the Goods and Services Tax (GST) in India?
👉 Kelkar Committee (2003).

35. What does MSP stand for in the context of agriculture?
👉 Minimum Support Price.
Assured price for farmers’ produce by the government.

36. Which body regulates the monetary policy in India?
👉 Reserve Bank of India (RBI).

37. Who presents the Union Budget in Parliament?
👉 Finance Minister. (repeated Q1)

38. What is the full form of FRBM Act?
👉 Fiscal Responsibility and Budget Management Act.

39. Which tax is known as a “progressive tax”?
👉 Income Tax.
Because higher income = higher tax rate.

40. What is the minimum percentage of FDI allowed in the automatic route for most sectors?
👉 100% (in most sectors, except restricted ones like defense, telecom, insurance, etc.).

41. Which Indian state is the largest producer of coal?
👉 Jharkhand.

42. The term “disinvestment” is related to which type of sector?
👉 Public Sector Undertakings (PSUs).

43. Who publishes the “Economic Survey of India”?
👉 Ministry of Finance (Department of Economic Affairs).

44. Which index measures inflation at the wholesale level in India?
👉 Wholesale Price Index (WPI).

45. What does NITI Aayog stand for?
👉 National Institution for Transforming India.

46. Which Indian economist won the Nobel Prize for Welfare Economics?
👉 Amartya Sen (1998).

47. What is the main function of SEBI?
👉 Regulating capital markets (protecting investors, ensuring fair trading).

48. Which is the largest employment-generating sector in India?
👉 Agriculture.
Though services lead GDP, agriculture employs the largest workforce.

49. The concept of “Inclusive Growth” is emphasized in which Five-Year Plan?
👉 11th Five-Year Plan (2007–12).

50. Which bank is known as the “Banker to the Government” in India?
👉 Reserve Bank of India (RBI).

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