MCQ on Highlights of Indian Economy
Q1. Which sector contributes the most to India’s GDP?
a) Agriculture
b) Industry
c) Services
d) Manufacturing
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Correct Answer: c) Services
Explanation: The services sector is the largest contributor to India’s GDP, accounting for more than half of the country’s total output. This sector includes various sub-sectors such as IT, tourism, healthcare, and financial services, among others.
Q2. Which of the following is the largest public sector bank in India?
a) State Bank of India (SBI)
b) Punjab National Bank (PNB)
c) Bank of Baroda (BoB)
d) Canara Bank
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Correct Answer: a) State Bank of India (SBI)
Explanation: State Bank of India (SBI) is the largest public sector bank in India, with the highest market share and a vast network of branches and ATMs across the country. It offers a wide range of banking and financial services to its customers.
Q3. Which of the following is the primary regulator of the Indian financial market?
a) Reserve Bank of India (RBI)
b) Securities and Exchange Board of India (SEBI)
c) Insurance Regulatory and Development Authority of India (IRDAI)
d) Pension Fund Regulatory and Development Authority (PFRDA)
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Correct Answer: a) Reserve Bank of India (RBI)
Explanation: The Reserve Bank of India (RBI) is the central banking institution of India and the primary regulator of the Indian financial market. It is responsible for formulating and implementing monetary policy, managing foreign exchange reserves, and ensuring the stability of the financial system.
Q4. Which of the following is the largest source of foreign direct investment (FDI) in India?
a) United States
b) Japan
c) Singapore
d) Mauritius
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Correct Answer: d) Mauritius
Explanation: Mauritius has been the largest source of foreign direct investment (FDI) in India, primarily due to its favorable tax treaty with India. Many multinational companies route their investments through Mauritius to take advantage of the tax benefits.
Q5. Which of the following is the largest employer in India?
a) Indian Railways
b) Indian Armed Forces
c) Agriculture sector
d) IT sector
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Correct Answer: c) Agriculture sector
Explanation: The agriculture sector is the largest employer in India, providing livelihood to a significant portion of the population. Despite its declining share in the GDP, agriculture remains a critical sector for food security and rural development.
Q6. Which of the following is the largest tax revenue source for the Indian government?
a) Corporate tax
b) Income tax
c) Goods and Services Tax (GST)
d) Customs duty
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Correct Answer: c) Goods and Services Tax (GST)
Explanation: The Goods and Services Tax (GST) is the largest tax revenue source for the Indian government. It is a comprehensive indirect tax levied on the supply of goods and services, replacing multiple taxes like excise duty, service tax, and value-added tax (VAT).
Q7. Which of the following is the largest trading partner of India?
a) United States
b) China
c) European Union
d) United Arab Emirates
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Correct Answer: b) China
Explanation: China is India’s largest trading partner, with bilateral trade between the two countries reaching significant levels. The trade relationship is characterized by a large trade deficit in favour of China, with India importing a wide range of goods, including electronics, machinery, and chemicals.
Q8. Which of the following is the largest public sector undertaking (PSU) in India by market capitalization?
a) Oil and Natural Gas Corporation (ONGC)
b) Indian Oil Corporation (IOC)
c) Bharat Petroleum Corporation Limited (BPCL)
d) Coal India Limited (CIL)
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Correct Answer: a) Oil and Natural Gas Corporation (ONGC)
Explanation: Oil and Natural Gas Corporation (ONGC) is the largest public sector undertaking (PSU) in India by market capitalization. It is a multinational oil and gas company engaged in exploration, production, and distribution of petroleum products.
Q9. Which of the following is the largest stock exchange in India?
a) National Stock Exchange (NSE)
b) Bombay Stock Exchange (BSE)
c) Calcutta Stock Exchange (CSE)
d) Delhi Stock Exchange (DSE)
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Correct Answer: a) National Stock Exchange (NSE)
Explanation: The National Stock Exchange (NSE) is the largest stock exchange in India, with the highest trading volume and market capitalization. It offers a wide range of financial products, including equities, derivatives, and debt instruments.
Q10. Which of the following is the largest recipient of remittances in India?
a) Kerala
b) Punjab
c) Uttar Pradesh
d) Tamil Nadu
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Correct Answer: a) Kerala
Explanation: Kerala is the largest recipient of remittances in India, with a significant portion of its population working abroad, particularly in the Gulf countries. Remittances play a crucial role in the state’s economy, contributing to its high per capita income and human development indicators.
Q11. Which of the following is the largest producer of coal in India?
a) Jharkhand
b) Chhattisgarh
c) Odisha
d) Madhya Pradesh
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Correct Answer: b) Chhattisgarh
Explanation: Chhattisgarh is the largest producer of coal in India, with significant coal reserves and numerous coal mines. The state’s coal production contributes to India’s energy security and supports various industries, including power generation and steel production.
Q12. Which of the following is the largest producer of cotton in India?
a) Gujarat
b) Maharashtra
c) Andhra Pradesh
d) Punjab
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Correct Answer: a) Gujarat
Explanation: Gujarat is the largest producer of cotton in India, with a favorable climate and suitable soil conditions for cotton cultivation. The state’s cotton production supports the textile industry, which is a significant contributor to its economy.
Q13. Which of the following is the largest producer of sugarcane in India?
a) Uttar Pradesh
b) Maharashtra
c) Karnataka
d) Tamil Nadu
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Correct Answer: a) Uttar Pradesh
Explanation: Uttar Pradesh is the largest producer of sugarcane in India, with a suitable climate and fertile soil for sugarcane cultivation. The state’s sugarcane production supports the sugar industry, which is a significant contributor to its economy and provides employment opportunities.
Q14. Which of the following is the largest producer of tea in India?
a) Assam
b) West Bengal
c) Tamil Nadu
d) Kerala
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Correct Answer: a) Assam
Explanation: Assam is the largest producer of tea in India, with a favorable climate and suitable soil conditions for tea cultivation. The state’s tea production supports the tea industry, which is a significant contributor to its economy and provides employment opportunities.
Q15. Which of the following is the largest producer of wheat in India?
a) Punjab
b) Haryana
c) Uttar Pradesh
d) Madhya Pradesh
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Correct Answer: c) Uttar Pradesh
Explanation: Uttar Pradesh is the largest producer of wheat in India, with a suitable climate and fertile soil for wheat cultivation. The state’s wheat production supports the food security of the country and contributes to the overall agricultural output.
Q16. Which of the following is the largest producer of rice in India?
a) West Bengal
b) Punjab
c) Andhra Pradesh
d) Uttar Pradesh
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Correct Answer: a) West Bengal
Explanation: West Bengal is the largest producer of rice in India, with a suitable climate and fertile soil for rice cultivation. The state’s rice production supports the food security of the country and contributes to the overall agricultural output.
Q17. Which of the following is the largest producer of milk in India?
a) Uttar Pradesh
b) Rajasthan
c) Gujarat
d) Andhra Pradesh
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Correct Answer: a) Uttar Pradesh
Explanation: Uttar Pradesh is the largest producer of milk in India, with a significant number of dairy farms and a large cattle population. The state’s milk production supports the dairy industry, which is a significant contributor to its economy and provides employment opportunities.
Q18. Which of the following is the largest producer of fruits in India?
a) Maharashtra
b) Andhra Pradesh
c) Karnataka
d) Uttar Pradesh
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Correct Answer: d) Uttar Pradesh
Explanation: Uttar Pradesh is the largest producer of fruits in India, with a diverse range of fruit crops grown across the state. The state’s fruit production supports the horticulture industry, which is a significant contributor to its economy and provides employment opportunities.
Q19. Which of the following is the largest producer of vegetables in India?
a) West Bengal
b) Uttar Pradesh
c) Bihar
d) Madhya Pradesh
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Correct Answer: b) Uttar Pradesh
Explanation: Uttar Pradesh is the largest producer of vegetables in India, with a diverse range of vegetable crops grown across the state. The state’s vegetable production supports the horticulture industry, which is a significant contributor to its economy and provides employment opportunities.
Q20. Which of the following is the largest producer of spices in India?
a) Kerala
b) Karnataka
c) Tamil Nadu
d) Andhra Pradesh
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Correct Answer: a) Kerala
Explanation: Kerala is the largest producer of spices in India, with a suitable climate and fertile soil for spice cultivation. The state’s spice production supports the spice industry, which is a significant contributor to its economy and provides employment opportunities.