introduction to indian economy section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (c)

In India, a planned economy is based on the socialist system in which all have equal opportunities to education, healthcare, non-exploitation, equality of wealth etc.

The concept was borrowed from Russia and is based on achieving directive principles mentioned in our constitution.

Answer: (a)

Answer: (c)

The Industrial Development Bank of India (IDBI) was established in 1964 by the government of India under an act of the Indian Parliament called the IDBI Act.

On December 15, 2003, the Indian Parliament approved the conversion of the Industrial Development Bank of India’s (IDBI) into a universal bank. The government’s move was significant given the fact that the Development Financial Institution (DFI) had been struggling to sustain its growth in recent times.

In India, the Development Financial Institutions were established and developed by the Government of India and Reserve Bank of India (RBI) to meet the specific needs of the industry and were traditionally engaged in long term financing, as their main objective was to take care of the investment needs of industries and to contribute to a better industrial climate.

Answer: (d)

According to the 2016-17 budget, Borrowings and other liabilities contribute a maximum of about 21% of total government earnings. It is followed by Corporation Tax (19%) and Income Tax (14%).

Corporation tax and income tax together constitute one-third of the total government earnings.

Answer: (a)

Indian Economy is highly dependent on agriculture because still the maximum population stays in rural area.