The Indian Economy is a vital subject in the UPSC Civil Services Examination (CSE), covering economic growth, fiscal policies, banking, inflation, government schemes, and international trade. Questions related to the economy are frequently asked in UPSC Prelims (GS Paper 1) and Mains (GS Paper 3).
To help aspirants strengthen their preparation, we have compiled important Indian Economy GK questions with answers that will aid in understanding key economic concepts and trends.
1. Basics of Indian Economy GK Questions
Q1: What type of economy does India have?
A) Socialist Economy
B) Capitalist Economy
C) Mixed Economy
D) Communist Economy
✅ Answer: C) Mixed Economy
Q2: Who is known as the ‘Father of Indian Planning’?
A) Jawaharlal Nehru
B) P.C. Mahalanobis
C) B.R. Ambedkar
D) Amartya Sen
✅ Answer: B) P.C. Mahalanobis
Q3: The Planning Commission was replaced by which institution?
A) RBI
B) NITI Aayog
C) Finance Commission
D) SEBI
✅ Answer: B) NITI Aayog
Q4: The Indian Rupee is printed by which organization?
A) Reserve Bank of India (RBI)
B) Ministry of Finance
C) SEBI
D) NITI Aayog
✅ Answer: A) Reserve Bank of India (RBI)
Q5: What is GDP?
A) Gross Domestic Product
B) General Domestic Price
C) Global Development Plan
D) Gross Development Price
✅ Answer: A) Gross Domestic Product
2. Banking & Financial System GK Questions
Q6: What is the minimum CRR (Cash Reserve Ratio) that banks have to maintain with the RBI?
A) 2%
B) 3%
C) 4.5%
D) 5%
✅ Answer: C) 4.5% (As per latest RBI regulations)
Q7: Which is the largest commercial bank in India?
A) ICICI Bank
B) HDFC Bank
C) State Bank of India (SBI)
D) Punjab National Bank
✅ Answer: C) State Bank of India (SBI)
Q8: What does “Repo Rate” mean?
A) The rate at which banks borrow money from RBI
B) The rate at which RBI borrows from banks
C) The interest rate on savings accounts
D) The rate of return on investment
✅ Answer: A) The rate at which banks borrow money from RBI
Q9: Which institution regulates the stock market in India?
A) RBI
B) SEBI
C) NITI Aayog
D) Ministry of Finance
✅ Answer: B) SEBI (Securities and Exchange Board of India)
Q10: What is the full form of FDI?
A) Foreign Direct Investment
B) Financial Development Index
C) Fiscal Development Initiative
D) Foreign Deposit Investment
✅ Answer: A) Foreign Direct Investment
3. Government Schemes & Policies GK Questions
Q11: Which scheme aims to provide universal health coverage in India?
A) PM-KISAN
B) Ayushman Bharat
C) Make in India
D) Digital India
✅ Answer: B) Ayushman Bharat
Q12: What is the main objective of the MGNREGA scheme?
A) Providing electricity to rural areas
B) Giving employment to rural workers
C) Providing free education
D) Offering subsidies to farmers
✅ Answer: B) Giving employment to rural workers
Q13: What is the full form of GST?
A) Goods and Services Tax
B) General Savings Tax
C) Gross Service Tax
D) Government Sales Tax
✅ Answer: A) Goods and Services Tax
Q14: Which government initiative focuses on promoting startups in India?
A) Skill India
B) Start-Up India
C) Stand-Up India
D) Digital India
✅ Answer: B) Start-Up India
Q15: The term “Aatmanirbhar Bharat” refers to?
A) A scheme for foreign investors
B) India’s self-reliance mission
C) A government savings bond
D) A banking regulation policy
✅ Answer: B) India’s self-reliance mission
4. Trade & Industry GK Questions
Q16: India’s largest export partner is?
A) USA
B) China
C) UAE
D) Japan
✅ Answer: A) USA
Q17: Which industry is known as the “Sunrise Industry” in India?
A) Agriculture
B) Information Technology
C) Textile Industry
D) Mining
✅ Answer: B) Information Technology
Q18: What does the term ‘Balance of Trade’ mean?
A) Difference between imports and exports
B) Government’s fiscal balance
C) Difference in foreign investment
D) International banking policy
✅ Answer: A) Difference between imports and exports
Q19: What is the base year for calculating GDP in India?
A) 2004-05
B) 2011-12
C) 2017-18
D) 2020-21
✅ Answer: B) 2011-12
Q20: Which sector contributes the most to India’s GDP?
A) Agriculture
B) Industry
C) Services
D) Manufacturing
✅ Answer: C) Services
FAQs on Indian Economy for UPSC
Q1: How important is the Indian Economy for UPSC?
The Indian Economy is one of the most scoring subjects in UPSC. It appears in both Prelims (GS Paper 1) and Mains (GS Paper 3), covering economic policies, banking, budgeting, and international trade.
Q2: What are the best sources to study the Indian Economy for UPSC?
- NCERT Class 11 & 12 Economics
- Indian Economy by Ramesh Singh
- Economic Survey & Union Budget
- NITI Aayog Reports
- Current Affairs (The Hindu, PIB, Economic Times)
Q3: How can I improve my Economy GK for UPSC?
- Read economic newspapers & magazines
- Follow RBI & SEBI updates
- Practice previous year UPSC Economy questions
- Stay updated with government schemes & policies
Q4: What type of Economy questions are asked in UPSC Prelims?
- Basic Economic Terms (GDP, Inflation, Fiscal Deficit)
- Banking & Finance (RBI, SEBI, NPA, Repo Rate)
- Government Policies & Schemes
- Trade & Industry (FDI, Export-Import Trends)
Q5: Which topics should I focus on for UPSC Mains GS Paper 3?
- Indian Economic Development & Planning
- Banking & Financial Reforms
- Government Schemes & Social Welfare
- Agriculture & Rural Economy
- Foreign Trade & Global Economy Trends
Conclusion: Stay Ahead in UPSC Economy Preparation!
Mastering Indian Economy GK is crucial for UPSC aspirants. By regularly revising key concepts, practicing mock tests, and staying updated with economic policies, you can boost your UPSC Prelims & Mains performance.
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