IBPS PO General Awareness: Indian Economy questions with solutions

Q1. The third Industrial Policy of India is going to be launched with the objective of making India a manufacturing hub. It will replace which of the following earlier industrial policies?

1. Industrial Policy, 1956
2. Industrial Policy, 1984
3. Industrial Policy, 2014
4. Industrial Policy, 1991

Answer: Industrial Policy, 1991

The Industrial Policy of 1991 is the landmark policy associated with liberalisation and major economic reforms. The new policy is intended to replace that framework.

Q2. The Ministry of Labour and Employment released four labour codes in 2020. These codes are aimed at protecting the interests of workers and will provide them social security, protection, a safe working environment, and an effective grievance redressal mechanism. Which one of the following is not one of these four labour codes released by the Labour Ministry?

1. Code on Wages, 2019
2. Code on Migrant Labourers, 2020
3. Industrial Relations Code, 2020
4. Occupational Safety, Health and Working Conditions Code, 2020

Answer: Code on Migrant Labourers, 2020

The four labour codes are the Code on Wages, 2019; Industrial Relations Code, 2020; Occupational Safety, Health and Working Conditions Code, 2020; and Code on Social Security, 2020. 'Code on Migrant Labourers, 2020' is not one of them.

Q3. According to the Socio-Economic and Caste Census 2011, about what percentage of rural households are landless and derive a major part of their income from manual casual labour?

1. 27%
2. 30%
3. 35%
4. 32%

Answer: 30%

The SECC 2011 data states that about 30% of rural households are landless and depend mainly on manual casual labour for income. This is a standard factual economy question. Therefore, 30% is correct.

Q4. The Competition Commission of India (CCI) approved Zomato’s request to acquire approximately what percentage stake in the online grocery platform Grofers India and its wholesale entity Hands on Trades?

1. 6.1
2. 7.9
3. 8.4
4. 9.3

Answer: 9.3

The CCI approved Zomato’s acquisition of about 9.3% stake in Grofers India and its wholesale entity Hands on Trades. This was part of a strategic investment in the company.

Q5. What was the projected growth for India by the World Bank for 2016–17?

1. 7.00%
2. 7.60%
3. 7.80%
4. 8.00%

Answer: 7.60%

The World Bank projected India’s growth at 7.6% for 2016–17. This was a commonly asked current-affairs economy fact in banking exams.

Q6. Which of the following is not one of the commodity boards under the Department of Commerce?

1. Raisin and Gum Board
2. Tobacco Board
3. Tea Board
4. Spices Board

Answer: Raisin and Gum Board

Tea Board, Tobacco Board, and Spices Board are established commodity boards under the Department of Commerce. "Raisin and Gum Board" is not an official commodity board. Hence, it is the correct answer.

Q7. Which of the following is a revenue expenditure? I. Subsidies II. Interest payments III. Loan to State Government

1. Only I
2. Only II
3. Only II and III
4. Only I and II

Answer: Only I and II

Subsidies and interest payments are revenue expenditures because they are recurring and do not create assets. A loan to a state government is a capital expenditure since it creates a financial asset. Hence, only I and II are correct.

Q8. Which sector has emerged as the largest producing sector in India?

1. Tertiary sector
2. Primary sector
3. Secondary sector
4. None of these

Answer: Tertiary sector

In India, the tertiary sector has become the largest producing sector in terms of output. It includes services such as banking, transport, communication, trade, and education.

Q9. In which year did the merger of the Railway Budget and the Union Budget take place?

1. 2017
2. 2018
3. 2019
4. 2020

Answer: 2017

The Railway Budget was merged with the Union Budget starting from 2017. This reform ended the separate presentation of the Railway Budget in India.

Q10. Under the agreement mentioned in the paragraph, India will be offering preferential access on over 70% of its tariff lines, which will be provided under which of the following Act? Statements: 1. Customs Tariff Act 2. IGST 3. Customs and Excise Act

1. Only 1
2. Both 1 & 2
3. Only 3
4. All 1, 2 & 3

Answer: Only 1

Preferential access on tariff lines is administered under the Customs Tariff Act, which deals with customs duties and tariff schedules. IGST is related to indirect taxation on inter-state supply and imports, while the Customs and Excise Act is not the relevant law here.

Q11. According to the Government of India, by which year is farmers' income planned to be doubled?

1. 2021
2. 2022
3. 2025
4. 2030

Answer: 2022

The Government of India had set a target to double farmers’ income by 2022. This was a widely asked current-affairs and economics fact in banking exams.

Q12. In India, the second largest provider of employment after agriculture is:

1. Textile Sector
2. Real Estate
3. Manufacturing
4. Services Sector

Answer: Textile Sector

In India, agriculture is the largest employer. The textile sector is widely regarded as the second largest provider of employment because it is highly labour-intensive and supports a large workforce across spinning, weaving, garmenting, and related activities.

Q13. According to the passage, which of the following can be said about the agriculture and industry sectors in India? 1) Looking at the growth of the services sector in India, it can be safely said that the service sector will soon be in a position to support both the agriculture and industry sectors. 2) The agriculture and industrial sectors of the country have reached their threshold, and there would be no use of further investment in these sectors. 3) Currently, the agriculture and industry sectors contribute less than the services sector to the GDP of the country.

1. Only 1
2. Only 3
3. 1 and 3
4. 2 and 3

Answer: 1 and 3

Statement 1 is consistent with the passage’s idea that the services sector is growing strongly. Statement 3 is also correct because agriculture and industry contribute less to GDP than services. Statement 2 is too absolute and is not supported.

Q14. Passage: As India entered the 21st century, the Net National Income of the average Indian was ₹20,000. While this figure is not the actual earnings of an individual, it is a good proxy for the average Indian’s annual income. By 2015, it had grown to ₹90,000. Had it continued on the same trajectory, it should have been ₹1,65,000 today. Instead, as the recent Economic Survey shows, the Net National Income for the average Indian is ₹1,35,000. In other words, the average Indian has potentially lost ₹30,000 in net annual income. For most Indians, ₹30,000 a year is a very big amount. This is the cost of economic underperformance for the average Indian. It is well accepted by most political economists that India's economic performance is largely shaped by the ‘POW’ trinity - politics, oil and world economy. Political leadership and stability are critical determinants of domestic and foreign investment in India. Global oil prices play an inordinately large role in shaping India’s macroeconomy. World trade and global GDP drive India’s exports and industry. In 2014, India gleamed with hope. For the first time in nearly half a century, the ‘POW’ trinity was perfectly aligned. Indians handed a parliamentary majority to a supposedly strong, decisive leader with a promise of economic development. Beginning in 2014, global crude oil prices dropped precipitously from more than 100 a barrel to 40. It was estimated then that the steep fall in oil prices alone would add two extra percentage points to India's GDP growth rate, besides taming inflation. The global economy was also on an upward trend from 2014, recovering robustly from the devastation of the 2008 economic crisis. The period from 2014 to 2019 was among the best five years for world economic growth in the 21st century. So, in the summer of 2014, a billion Indians glimmered in hope and excitement at the prospect of rapidly rising income levels and prosperity under a perfectly aligned ‘POW’. Six years later, not only has the average Indian’s income levels not grown faster than before, it is actually ₹30,000 short of what it should have been. Why did things go so wrong? The ongoing health catastrophe caused by the novel coronavirus in Hubei province of China offers meaningful parallels and lessons for India's economic policy climate. Which among the following statements is true as per the passage given above?

1. India has the largest economy.
2. Indian economy is booming.
3. The period from 2014 to 2019 was among the best five years for world economic growth in the 21st century.
4. The global economy was also on a downward trend from 2014

Answer: The period from 2014 to 2019 was among the best five years for world economic growth in the 21st century.

The passage directly states that 2014 to 2019 was among the best five years for world economic growth in the 21st century. The other options are either unsupported or contradicted by the passage. So the correct statement is the one about world economic growth during 2014–2019.

Q15. Which of the following is/are the reasons for the slowdown experienced in Q4 of 2018–19?

1. Weaker domestic consumption
2. Slower global growth
3. Weak increase in fixed investment
4. All of the above

Answer: All of the above

The slowdown in Q4 of 2018–19 was attributed to multiple macroeconomic headwinds. Weaker domestic consumption, slower global growth, and weak fixed investment all contributed to the deceleration, so the combined option is correct.

Q16. According to the Economic Survey 2023–24, which of the following areas saw a sharp rise?

1. Exports of agricultural products
2. Food Inflation
3. Durable Goods
4. Unemployment rate

Answer: Food Inflation

The Economic Survey 2023–24 noted a sharp rise in food inflation. This was a major concern because food prices significantly affect overall inflation and household budgets.

Q17. What is the wheat procurement target for the current financial year 2022–23 (in lakh tonnes)?

1. 444
2. 278
3. 378
4. 540

Answer: 540

The wheat procurement target for FY 2022–23 was set at 540 lakh tonnes. This is a current affairs-based economy question related to agricultural procurement by the government.

Q18. Retail inflation in India rose to a record five-and-a-half-year high in December 2019 to

1. 8.50%
2. 6.50%
3. 9.15%
4. 7.35%

Answer: 7.35%

India’s retail inflation in December 2019 rose to 7.35%, which was reported as a five-and-a-half-year high. Hence the correct option is 7.35%.

Q19. What is the amount allocated to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme in the Union Budget for 2019-20?

1. ₹60000 crore
2. ₹80000 crore
3. ₹50000 crore
4. ₹70000 crore

Answer: ₹60000 crore

In the Union Budget 2019-20, the allocation for MGNREGA was ₹60,000 crore. This was the amount announced for the rural employment scheme.

Q20. India's literacy rate as per Census 2011 is:

1. 72.04%
2. 71.03%
3. 74.04%
4. 69.56%

Answer: 74.04%

According to Census 2011, India's literacy rate was 74.04%. This is a commonly asked static GK fact in banking exams.

Q21. The Pension Fund Regulatory and Development Authority (PFRDA) is authorized by which of the following?

1. GOI
2. RBI
3. Ministry of Commerce
4. Ministry of Finance

Answer: Ministry of Finance

PFRDA is the statutory authority regulating pension funds in India. It functions under the Ministry of Finance, not under the RBI or the Ministry of Commerce. Hence, the correct answer is Ministry of Finance.

Q22. What are the factors that shape India's economic performance according to political economists?

1. ‘POW’ trinity - politics, oil and world
2. Income and Expenditure
3. Rich and Poor
4. GDP and GNP

Answer: ‘POW’ trinity - politics, oil and world

The passage states that India's economic performance is largely shaped by the 'POW' trinity. POW stands for politics, oil, and world economy. Therefore, the correct option is the one matching this framework.

Q23. Which of the following is/are correctly matched? 1. India Innovation Index — NITI Aayog 2. CPI — Office of the Economic Adviser 3. WPI — National Statistical Office 4. Economic Survey — Chief Economic Adviser

1. 1, 2 only
2. 2, 3 only
3. 1, 4 only
4. 1, 2, 3 only

Answer: 1, 4 only

The India Innovation Index is associated with NITI Aayog, and the Economic Survey is prepared under the Chief Economic Adviser. CPI is not matched with the Office of the Economic Adviser here, and WPI is not matched with NSO.

Q24. India's revised GDP growth rate forecast by RBI for FY23?

1. 7.1 percent
2. 7.2 percent
3. 7.3 percent
4. 7.4 percent

Answer: 7.2 percent

The RBI revised India's GDP growth forecast for FY23 to 7.2 percent. This is a standard current-affairs economy fact often asked in banking exams. Hence, 7.2 percent is correct.

Q25. The 15th Finance Commission submitted its report on the ratio in which tax is to be divided between the Centre and states over the next five years. Who among the following is not one of its members?

1. Ajay Narayan Jha
2. Prakash Sehgal
3. Ashok Lahiri
4. Anoop Singh

Answer: Prakash Sehgal

Ajay Narayan Jha, Ashok Lahiri, and Anoop Singh were members associated with the 15th Finance Commission. Prakash Sehgal was not one of its members.

Q26. Total foodgrain production in the country crossed _ million tonnes in the year 2016–17 that ended in June.

1. 300
2. 275
3. 200
4. 356

Answer: 275

India's total foodgrain production in 2016–17 crossed 275 million tonnes. This is a standard economic and agriculture fact often asked in banking exams. Therefore, 275 is correct.

Q27. As per the Ministry of Finance, what was the Goods and Services Tax (GST) collection for the month of May 2022?

1. ₹1.31 lakh crore
2. ₹1.41 lakh crore
3. ₹1.51 lakh crore
4. ₹1.61 lakh crore

Answer: ₹1.41 lakh crore

The Ministry of Finance reported GST collections of ₹1.41 lakh crore for May 2022. This was a record-high collection at that time.

Q28. Fiscal deficit as per Union Budget 2021-22 is _____.

1. 6.5 %
2. 7 %
3. 6.80%
4. 9.5 %

Answer: 9.5 %

The Union Budget 2021-22 projected a fiscal deficit of 9.5% of GDP. This was a revised and elevated estimate due to the economic impact of the COVID-19 pandemic and increased government expenditure.

Q29. What is the revised GDP growth projection for India for the financial year 2023-24 as announced by RBI Governor Shaktikanta Das?

1. 6.00%
2. 6.50%
3. 6.70%
4. 7.00%

Answer: 7.00%

RBI Governor Shaktikanta Das announced the revised GDP growth projection for India for FY 2023-24 as 7.0%. This is a current affairs-based economy question.

Q30. In one of the historical reforms of the economy of India, Rs. 500 and Rs. 1,000 notes were banned. This was one of the boldest moves by the Government of India, announced over a 40-minute speech. Most of the industry and commoners alike reacted to this decision to curb corruption with overwhelming support. Whereas some sections were of the opinion that it was a draconian scheme causing hardships to people. A recent study had pegged India's black-market economy at over ₹30 lakh crore, or about 20 percent of total GDP. This is even bigger than the GDP of countries like Thailand and Argentina. Rather than getting support from most of the industry, what would have been the reason that some of them declared it a draconian scheme? (I) It was declared without giving time to people to withdraw ample cash for their use. (II) It had caused certain hardships in daily activities. (III) It stopped the earning of black money for the majority of the people.

1. Only II and III
2. Only III
3. Only I and II
4. Only I and III

Answer: Only I and II

The criticism was mainly about the sudden announcement and the hardships caused in daily life, especially cash shortages and disruption. Stopping black money is the objective of the move, so it would not be a reason for opponents to call it draconian.

Q31. IMF has recently, in January 2020, lowered the GDP forecast of India for that year due to which of the following factors?

1. NBFC
2. Dip in rural demand
3. Dip in urban demand
4. Both a & b

Answer: Both a & b

In January 2020, the IMF lowered India's GDP forecast citing weakness in the economy due to NBFC-related stress and a dip in rural demand. Since both factors were mentioned, the correct answer is 'Both a & b'.

Q32. Consider the following statements with respect to Atal Pension Yojana: 1. It mainly focuses on providing old-age security to unorganised workers who are not covered under any social security scheme. 2. Contributions to the Atal Pension Yojana (APY) are eligible for tax benefits similar to the National Pension System (NPS). 3. Any individual aged between 18 years and 40 years and having a bank account is eligible for the scheme. Select the correct answer using the codes below.

1. 1 and 3 only
2. 2 and 3 only
3. 1 and 2 only
4. All of the above

Answer: All of the above

Atal Pension Yojana is designed to provide old-age income security to unorganised workers. It is open to bank-account holders aged 18 to 40 years, and contributions are eligible for tax benefits similar to NPS under applicable provisions.

Q33. The GDP forecast by NCAER in the second quarter for the current fiscal year 2019-2020 is

1. 4.5
2. 4.9
3. 4.7
4. 4.8

Answer: 4.9

NCAER projected India’s GDP growth for FY 2019-20 at 4.9% in its second-quarter forecast. This was a widely reported economic estimate in current affairs.

Q34. Which of the following is/are the central themes of the Union Budget 2020?

1. Aspirational India
2. Economic Development for All
3. Caring Society
4. All of these

Answer: All of these

The Union Budget 2020 highlighted three central themes: Aspirational India, Economic Development for All, and Caring Society. Since all three are included, the correct answer is All of these.

Q35. As per the bimonthly monetary policy released by the RBI in October 2019, what was the GDP growth forecast for 2019-20?

1. 6.50%
2. 6.30%
3. 6.40%
4. 6.10%

Answer: 6.40%

In October 2019, the RBI's monetary policy statement projected GDP growth for 2019-20 at 6.4%. This was the revised forecast announced for that period.