Practice Introduction - indian economy mcq Online Quiz (set-1) For All Competitive Exams

The long-term objective of NPP is to achieve a stable population by 2045, at a level consistent with the requirement of sustainable economic growth, social development and environmental protection.

On July 19, 1969, 14 commercial banks were nationalized, which got presidential approval on August 9, 1969. In 1980, in order to provide government more power and command over credit delivery, six more commercial banks in India were nationalized. If the associate banks of State Bank of India are counted, then the number goes to 27.

At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank).

The printing of notes in the denominations of Rs.1 and Rs.2 has been discontinued as these denominations have been coined. However, such notes issued earlier are still in circulation.

The printing of notes in the denomination of Rs.5 had also been discontinued.

The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.

India, among the countries has the lowest GDP per capita. GDP per capita is as follows- India 1489 USD,China 6091USD, Sri Lanka 2923 USD, Indonesia 3556 USD.

V.K. R.V. Rao has done pioneering works on national income in India. One of his works on national income was 'Changes in India's National Income-A Static Economy in Progress' (1954). The other was ‘The National Income of British India’ (1941).

India’s commercial export of power to Bangladesh commenced in October 2013 with the inauguration of the Bangladesh-India Power Transmission Centre at western Bherampura, near West Bengal.

India will export 500 MW of electricity daily to Bangladesh for 35 years.

Tata AIG General Insurance Company offers motor insurance, car insurance, auto insurance, travel insurance & health insurance services in India.

ICICI Prudential offers insurance for wealth plans, health, life insurance in India, term insurance plans, ULIPs, retirement solutions, pension plans, etc.

Bajaj Allianz presents Life Insurance, Car Insurance, Travel Insurance, Health Insurance, Term Insurance and Home Insurance.

HDFC Life Insurance is one of India’s leading private life insurance companies, which offers a range of individual & group insurance plans & policies. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom.

Generally, the small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery.

As per the Ministry of Micro, Small & Medium Enterprises of India, a small scale industry is an industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.

Fixed capital investment in a unit has been adopted as criteria to make a distinction between small-scale and largescale industries. This limit is being continuously raised upwards by the government.

The Securities and Exchange Board of India (SEBI) is the designated regulatory body for the finance and investment markets in India.

It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992. It is an autonomous body.

As per the Union Budget 2011-12, direct taxes contributed between 50-60 per cent of tax revenue. Corporation Tax is the single biggest income source for the government.

The contributions of excise and customs duties have been gradually declining after 1990-91 reform due to rationalization of tax structures and reduction of levy rates.

Excise duties, at present, contribute 17 per cent; Custom duties: 17 per cent, while Service Duty contributes 9 per cent. In the early 1990s, the share of net corporate tax revenues in the total tax revenues (from direct and indirect tax) stood at 12.4 per cent, while that of net excise duty was 32 per cent.

However, over the years, economic gains in India Inc have trickled down to the exchequer in the form of higher Corporate Tax collections.

India’s exports for the month of August 2012 stood at USD 22.3 billion compared to August 2011 when it stood at USD 24.7 billion registering a decline of (-) 9.7%.

During August 2012, the imports were $ 38 billion as compared to 40 billion dollars in August 2011 registering a decline of (-) 5.08%.

The term was coined by Indian economist Raj Krishna. The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from the 1950s to the 1980s.

The word “Hindu” implies that the Hindu outlook of fatalism and contentedness was responsible for the slow growth.

The Finance Commission of India is established under Article 280 of the Indian Constitution by the President of India to define the financial relations between the centre and the state.

It is entrusted with the task of distribution of net proceeds of taxes between Centre and the States, to be divided as per their respective contributions to the taxes; determine factors governing Grants-in-Aid to the states and the magnitude of the same; and work with the State Finance Commissions and suggest measures to augment the Consolidated Fund of the States so as to provide additional resources to Panchayats and Municipalities in the state.

Credit Control is an important tool used by the Reserve Bank of India, a major weapon of the monetary policy used to control the demand and supply of money (liquidity) in the economy. Central Bank administers control over the credit that the commercial banks grant.

Such a method is used by RBI to bring “Economic Development with Stability”. It means that banks will not only control inflationary trends in the economy but also boost economic growth which would ultimately lead to an increase in real national income with stability.

Broadly speaking, there are three possible methods to correct Balance of Payments (BOP) imbalances.

These methods are adjustments of

1. exchange rates;
2. adjustment of a nations internal prices along with its levels of demand; and
3. rules-based adjustment.

This can be achieved by vigorous import substitution which means export promotion and devaluation of local currency as then it makes export cheaper to the international market.

Tata Consultancy Services (TCS) is India’s top software services exporter. TCS is part of the Tata Group conglomerate that also manufactures cars and steel, and serves customers including Citigroup Inc and BP Plc.

It is one of India’s most valuable companies and is the largest India-based IT services company by 2012 revenues.

The concept of a mixed economy evolved from the ideas of Keynes. The concept of a mixed economy means that both private enterprises and public enterprises coexist.

However, the condition attached is that the private enterprises must work for serving society rather than having only self-interest.

Further, private enterprises may not be allowed in every sector of the economy like area of national importance.