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Indian Economy Quiz

Practice quiz on Indian Economy (Economy). 5 real exam questions.

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About This Quiz

Practice quiz on Indian Economy (Economy). 5 real exam questions. Indian Economy Quiz is a free, 25-minute, 25-mark practice quiz on AajExam rated at medium difficulty, designed to help candidates preparing for SSC, UPSC, Banking, Railway and State PSC government competitive exams sharpen their command of Indian Economy (Economy). Every question on this quiz ships with a detailed step-by-step solution so you don't just learn the right answer — you learn the reasoning and shortcuts top scorers use to crack similar questions faster on the actual exam day. Why Indian Economy Quiz matters in your preparation: government exam-conducting bodies repeatedly draw questions from the same chapters and the same skill-clusters across recruitment cycles. By attempting focused topic-wise quizzes like this one, you build pattern recognition — the ability to spot which formula, rule or trick applies the moment you see a question. Toppers consistently report that 5-10 quizzes on a single topic delivers more exam-day score gain than 20+ unfocused full-length mocks, because targeted drilling exposes your specific sub-topic weaknesses with surgical precision. How to use this quiz effectively: attempt it in one sitting under the 25-minute timer, without referring to notes or external resources — simulate exam-day conditions exactly. After submission, review the auto-generated analytics to see your accuracy, time per question and section-wise performance. Then go through every wrong and skipped question with the explanation, mentally tagging the underlying concept rather than just memorising the answer. Revisit this quiz after 7-10 days; your second attempt should be 15-20% faster with noticeably better accuracy. After mastering this quiz, explore the 6 related quizzes linked below to broaden your topic coverage. AajExam quiz design principles: every quiz on the platform is curated by subject experts using the actual question formats, difficulty distributions and time pressures of the target government exams. We deliberately avoid generic "textbook" questions in favour of exam-replicating ones. Solutions are written in plain English (and Hindi where source material was bilingual), with step-by-step working for quantitative problems, grammar rules for English questions, and direct reference statements for general awareness items. Performance analytics after each attempt include accuracy, attempt rate, time spent per question, and an estimated all-India percentile so you know exactly where you stand against other candidates. This quiz is completely free to attempt. You only need a free AajExam account to track your performance across attempts, view detailed solutions and unlock the platform-wide analytics dashboard. The platform is mobile-friendly and works seamlessly on smartphones, tablets and desktops — so you can sharpen your Indian Economy (Economy) skills in any spare 15-minute window.

Indian Economy Quiz — Questions with Solutions

All 25 questions from this quiz with the correct answer and explanation. Attempt them yourself first, then open each solution to check your reasoning.

  1. Q1.Which committee recommended the creation of GST in India?

    • A.Kelkar Committee
    • B.Vijay Kelkar Task Force
    • C.Jha Committee
    • D.Narasimham Committee-I
    Show answer

    Answer: B. Vijay Kelkar Task Force

    The Vijay Kelkar Task Force recommended introduction of GST.

  2. Q2.What is the term for inflation adjusted for base-year prices?

    • A.Headline inflation
    • B.Core inflation
    • C.Real inflation
    • D.Wholesale inflation
    Show answer

    Answer: C. Real inflation

    Real inflation (real rate) factors in base-year price levels.

  3. Q3.What is the current upper limit for UPI Lite wallet balance as per guidelines?

    • A.₹500
    • B.₹1000
    • C.₹2000
    • D.₹4000
    Show answer

    Answer: C. ₹2000

    UPI Lite allows up to ₹2000 balance in the on-device wallet.

  4. Q4.Which payment system is based on 'Immediate Payment Service'?

    • A.NEFT
    • B.RTGS
    • C.IMPS
    • D.UPI
    Show answer

    Answer: C. IMPS

    IMPS enables instant 24×7 fund transfers.

  5. Q5.Who regulates the insurance sector in India?

    • A.IRDAI
    • B.RBI
    • C.SEBI
    • D.PFRDA
    Show answer

    Answer: A. IRDAI

    Insurance Regulatory and Development Authority of India oversees insurers.

  6. Q6.India's currency and monetary system is primarily regulated by:

    • A.SEBI
    • B.Reserve Bank of India
    • C.NITI Aayog
    • D.Finance Ministry alone
    Show answer

    Answer: B. Reserve Bank of India

    RBI regulates India's currency and monetary policy.

  7. Q7.GDP stands for:

    • A.Gross Domestic Product
    • B.General Domestic Profit
    • C.Gross Development Plan
    • D.General Development Product
    Show answer

    Answer: A. Gross Domestic Product

    GDP is Gross Domestic Product.

  8. Q8.The Finance Commission of India is constituted every:

    • A.2 years
    • B.5 years
    • C.6 years
    • D.10 years
    Show answer

    Answer: B. 5 years

    A new Finance Commission is constituted every 5 years.

  9. Q9.Which sector currently contributes the most to India's GDP?

    • A.Agriculture sector
    • B.Services sector
    • C.Industrial sector
    • D.Mining sector
    Show answer

    Answer: B. Services sector

    The services sector is the largest contributor to India's GDP.

  10. Q10.NITI Aayog replaced which earlier body?

    • A.Finance Commission
    • B.Planning Commission
    • C.RBI
    • D.National Development Council
    Show answer

    Answer: B. Planning Commission

    NITI Aayog replaced the Planning Commission in 2015.

  11. Q11.GST (Goods and Services Tax) was implemented in India in which year?

    • A.2015
    • B.2016
    • C.2017
    • D.2019
    Show answer

    Answer: C. 2017

    GST was rolled out on 1 July 2017.

  12. Q12.India's Five-Year Plans were originally modeled on the economic planning of:

    • A.United States
    • B.Soviet Union
    • C.United Kingdom
    • D.Japan
    Show answer

    Answer: B. Soviet Union

    India's Five-Year Plans were inspired by Soviet-style planning.

  13. Q13.Which is the apex bank for rural and agricultural credit in India?

    • A.NABARD
    • B.SIDBI
    • C.RBI
    • D.EXIM Bank
    Show answer

    Answer: A. NABARD

    NABARD is the apex institution for agricultural and rural credit.

  14. Q14.Disinvestment refers to:

    • A.Sale of government stake in public sector undertakings
    • B.Increase in taxes
    • C.Printing more currency
    • D.Reduction in imports
    Show answer

    Answer: A. Sale of government stake in public sector undertakings

    Disinvestment means the government selling its stake in PSUs.

  15. Q15.Inflation refers to:

    • A.A general rise in the price level
    • B.A fall in production
    • C.An increase in exports
    • D.A decrease in population
    Show answer

    Answer: A. A general rise in the price level

    Inflation is a sustained rise in the general price level.

  16. Q16.The Economic Survey of India is presented just before the:

    • A.State elections
    • B.Union Budget
    • C.Republic Day
    • D.Independence Day
    Show answer

    Answer: B. Union Budget

    The Economic Survey is tabled in Parliament before the Union Budget.

  17. Q17.Which of the following is a direct tax?

    • A.GST
    • B.Income tax
    • C.Excise duty
    • D.Customs duty
    Show answer

    Answer: B. Income tax

    Income tax is levied directly on individual/entity income.

  18. Q18.India's First Five-Year Plan focused mainly on:

    • A.Agriculture
    • B.Heavy industries
    • C.Services
    • D.Exports
    Show answer

    Answer: A. Agriculture

    The First Five-Year Plan (1951-56) prioritised agriculture.

  19. Q19.Which committee recommended major banking sector reforms in India?

    • A.Narasimham Committee
    • B.Kelkar Committee
    • C.Tarapore Committee
    • D.Chelliah Committee
    Show answer

    Answer: A. Narasimham Committee

    The Narasimham Committee (1991 & 1998) recommended banking reforms.

  20. Q20.The Green Revolution in India is mainly associated with an increase in:

    • A.Food grain production
    • B.IT sector growth
    • C.Industrial expansion
    • D.Banking reforms
    Show answer

    Answer: A. Food grain production

    The Green Revolution boosted food grain, especially wheat and rice, production.

  21. Q21.Which body officially compiles and releases India's GDP data?

    • A.RBI
    • B.National Statistical Office (NSO)
    • C.SEBI
    • D.NITI Aayog
    Show answer

    Answer: B. National Statistical Office (NSO)

    The NSO under MoSPI releases official GDP estimates.

  22. Q22.A mixed economy is one where there is:

    • A.Only a public sector
    • B.Only a private sector
    • C.Coexistence of public and private sectors
    • D.No government involvement
    Show answer

    Answer: C. Coexistence of public and private sectors

    A mixed economy has both public and private sector participation.

  23. Q23.The White Revolution in India is related to a rise in:

    • A.Milk production
    • B.Fish production
    • C.Cotton production
    • D.Oilseed production
    Show answer

    Answer: A. Milk production

    The White Revolution (Operation Flood) boosted milk production.

  24. Q24.Which indirect tax was subsumed under GST in India?

    • A.Income tax
    • B.VAT (Value Added Tax)
    • C.Wealth tax
    • D.Corporate tax
    Show answer

    Answer: B. VAT (Value Added Tax)

    VAT, excise duty, and service tax were subsumed under GST.

  25. Q25.Per capita income is calculated by dividing national income by the:

    • A.Total population
    • B.Total workforce
    • C.Total GDP
    • D.Total exports
    Show answer

    Answer: A. Total population

    Per capita income = National income / total population.

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Frequently Asked Questions

Is Indian Economy Quiz free to attempt on AajExam?

Yes. Indian Economy Quiz is completely free. You only need a free AajExam account to track your score, view detailed solutions and unlock cross-attempt analytics.

How long does it take to complete Indian Economy Quiz?

Indian Economy Quiz runs on a 25-minute timer in real exam-style conditions. The clock starts the moment you click Start, mirroring the time pressure of the actual exam.

Are detailed solutions provided?

Yes. Every question on Indian Economy Quiz ships with a complete step-by-step solution, the underlying concept, and (where applicable) shortcut tricks. You can also discuss any question with the AajExam community.

Can I attempt Indian Economy Quiz multiple times?

Yes. You can attempt this quiz as many times as you like. Each attempt is recorded separately so you can track improvement in score, accuracy and time-management.

Which government exams does this quiz prepare me for?

Indian Economy questions appear regularly in SSC CGL, CHSL, MTS, GD; IBPS PO, Clerk; SBI PO, Clerk; RRB NTPC, Group D; UPSC prelims and most State PSC exams. The specific weightage varies by exam — check the exam pattern on the corresponding AajExam exam page for details.

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