MCQs are a very important part of the exams in CBSE. Moreover, MCQs in Economics paper in CBSE for class 12th have direct weightage of 25%. In view of this, we are here presenting to you the first part of most important MCQs on Indian economy for class 12. These MCQs on Indian Economy have clear explanations so that learners can learn the topic very easily. Now, enjoy the learning and best of hard work.
Answer with Explanation: (3) During the balance of payment crisis of late 1980s and early 1990s, Sh. P V Narsimharao was elected as Prime Minister of India in 1991. To handle the situation of economic crisis, the eminent economist, Dr. Manmohan Singh (who was also PM of India during 2004-2014) was appointed as Finance Minister of India. Dr. Manmohan Singh presented the New Economic Policy-1991 and initiated the reforms of liberalisation and privatisation.
Q.2 Who made the first attempt to measure National Income in India before independence ?
Dada Bhai Naoroji
William Digby
V. K.R.V. Rao
Findley Shirras
Answer with Explanation: (1) There were many attempts to measure the national income of India before Independence. Among them were famous personalities like Dada Bhai Naoroji, William Digby, V.K.R.V Rao, Findley Shirras. However, the first attempt was made by Dada Bhai Naoroji (a famous freedom fighter also) for 1867-68.
Q.3 What was the character of Indian Economy during British Rule?
Semi-feudal
Disintegrated
colonial
All of the
Answer with Explanation: (4) British had made Indian Economy a backward economy by destroying its traditional handicraft industry. They made it a semi feudal economy by introducing Zamindars as intermediaries between government and peasants. Moreover, they changed character of Indian economy to a Colonial Economy and exploited Indian resources for Britain’s benefits. Further, Indian economy was disintegrated as it had very low growth rate.
Q.4 Which Organisation formulated five year plans in India?
Planning Commission
NITI Ayog
Finance Commission
Election Commission
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Answer with Explanation: (1) After Independence, India decided to development its economy through planning. To oversee the planning process in the country, Planning Commission was established in March 1950.
Q.5 When did India started its first Industrial Policy?
1956
1948
1977
1991
Answer with Explanation: (2) The newly independent India adopted its 1st Industrial Policy Resolution in 1948. In this resolution, India decided that it would be a mixed economy, having best practices of both capital and socialist economic system.
Answer with Explanation: (2) Agriculture has been a dominant economy activity in Indian History. After independence, India was facing food insecurity particularly due to low productivity in food grain production. However, during mid-1960s, Green Revolution started in India which aimed at increasing the food grain production by the use of High Yield Variety seeds, chemical fertilizers & pesticides, better irrigation facilities and mechanized farming. Within few years, India became food sufficient country from a food deficient country.
Answer with Explanation: (1) After adoption of New Economic Policy in 1991, India started its economic reforms process. Most of the industries which were earlier reserved for Public Sector opened for private sector. Now, all industries except Atomic Energy and some establishments of Railways can be operated by private sector also.
Answer with Explanation: (2) P C Mahalanobis one of the earliest members of the planning commission. He was a great statistician. As a members of planning commission, he developed a model plan for 2nd five-year plan which is popularly known as Mahalanobis Model. This model focused on rapid industrialization of the country in which public sector would play the key role.
Q.9 During the British Rule, where were Cotton Textile and Jute industries centralised in India?
Maharashtra and Gujarat
Gujarat and Karnatka
Maharashthra and Bengal
Haryana and Bengal
Answer with Explanation: (3) During British period, modern industries in India could not grow to their potential. However, some modern industries did come up in the later half of 19th century. These industries were related to textile and jute industries. Cotton textile industries were flourishing in western part of Indian in Gujarat and Maharashtra while Jute industries development in Bengal. In textile industries, investment was predominately made by Indians while in Jute industries, it was made by Europeans.
Q.10 Regional Equality was one of the main aims/objectives of which Industrial Policy?
1956 Industrial Policy Resolution-1956
New Industrial Policy-1991
Industrial Policy Resolution-1948
None of the above
Answer with Explanation: (1) Regional Equality was one of the main objectives of the Industrial Policy Resolution-1956. The policy sought to achieve this objective through industrial licensing. The policy made a provision that producers would be provided industrial licenses easily if they set up their factories in economically backward areas of the country.
