Indian Economy GK MCQs


Indian Economy MCQs (Multiple Choice Questions) with answers for various state exams and UPSC civil services Exams. Learn and prepare Objective type Questions on Indian Economy.



1. Tarapore Committee was associated with which one of the following?

  1. Foreign Exchange Reserves.
  2. Effect of oil prices on the Indian economy.
  3. Fuller capital account convertibility.
  4. Special Economic Zones.


Answer: (c) Fuller capital account convertibility.

Solution: The Reserve Bank of India established the Committee on Capital Account Convertibility (CAC) or Tarapore Committee to propose a roadmap for full convertibility of the rupee on the capital account. In May 1997, the committee submitted its report.


2. Import cover is sometimes seen in the news, what is it?

  1. It is the ratio of the value of imports to the GDP.
  2. It is the total value of imports of a country in a year.
  3. It is the number of months of imports that could be paid for by a country’s international reserves.
  4. It is the ratio between the value of exports and imports between two countries.


Answer: (c) It is the number of months of imports that could be paid for by a country’s international reserves.

Solution: No explaination.


3. India has the maximum volume of foreign trade with which country?

  1. USA.
  2. UAE.
  3. Japan.
  4. China.


Answer: (a) USA.

Solution: According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at $119.42 billion as against $80.51 billion in 2020-21. During 2021-22, India’s two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.


4. Convertibility of rupee implies-

  1. Being able to convert rupee notes into gold.
  2. Developing an international market for currencies in India.
  3. Freely permitting the conversion of rupee to other currencies and vice versa.
  4. Allowing the value of the rupee to be fixed by market forces.


Answer: (c) Freely permitting the conversion of rupee to other currencies and vice versa.

Solution: India permits full current account convertibility of rupee but only partial capital account convertibility.


5. Economic Survey in India is published officially, every year by the-

  1. RBI (Reserve Bank of India).
  2. Niti Aayog.
  3. Ministry of Industries, GOI.
  4. Ministry of Finance, GOI.


Answer: (d) Ministry of Finance, GOI.

Solution: Economic Survey in India is published by the Ministry of Finance GOI annually.