introduction to indian economy section 6 MCQ Questions & Answers Detailed Explanation

Answer: (c)

The Government of India nationalized 14 major commercial banks in July 1969. This was followed by a second phase of nationalization in 1980, when Government of India acquired the ownership of 6 more banks, thus bringing the total number of nation-alised banks to 20.

Answer: (a)

The Fifth Five-Year Plan (1974–1979) laid stress on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence.

Answer: (a)

India’s share in global trade was 2.8 per cent in 2014, up from 2.07 per cent in 2013. The government aims to increase its share in the global trade to 3.5 per cent by 2020.

Answer: (d)

National Income ignores sale of land.

Answer: (d)

The Gujarat government, on 22 May 2014, launched the Smart Village programme to improve public facilities in villages. The objective of the programme is to make villages self-reliant, clean, and hygienic.

It has been conceptualized on the lines of the Smart Cities initiative of the Union Government under which 100 cities were chosen for infrastructure development.

Answer: (d)

In India, there are some regulations and restrictions with regard to establishing industries in certain categories. This is done by making it mandatory to obtain licenses before setting up such an industry.

The Licence Raj continued till 1991 (liberalization was introduced) as a result of India’s decision to have a planned economy where all aspects of the economy are controlled by the state and licences are given to a select few.

Up to 80 government agencies had to be satisfied before private companies could produce something and, if granted, the government would regulate production. The Industrial Policy Resolution 1956 aimed at the removal of regional disparities through the development of regions with low industrial bases.

The Indian economy was then guided by the socialistic model of planned development rather than being guided by profit.