Bihar Police Constable General Knowledge & Current Affairs: Indian Economy — Concept Guide + MCQs

Indian Economy — Key Concepts

Indian Economy questions in Bihar Police exam focus on basic economic concepts, important schemes, and economic institutions. Questions are straightforward and factual.

Economic Classifications

SectorActivities% of GDP (approx)
PrimaryAgriculture, Forestry, Mining, Fishing~15%
SecondaryManufacturing, Construction, Industry~25%
Tertiary (Services)Banking, IT, Trade, Transport, Tourism~55–60%

Important Government Schemes (Memory Aid)

PMJDY — Jan Dhan (Banking for all, 2014)
PM-KISAN — Rs. 6000/year direct income to farmers
PMFBY — Crop insurance scheme
MNREGA — 100 days guaranteed rural employment
PM Awas Yojana — Housing for all
Swachh Bharat Mission — Sanitation drive (2014)
Startup India — Promotion of entrepreneurship (2016)

Key Economic Institutions

  • RBI — Reserve Bank of India (Central Bank, controls monetary policy)
  • SEBI — Securities and Exchange Board of India (regulates stock markets)
  • NABARD — Agriculture and rural finance apex body
  • NITI Aayog — Policy think tank (replaced Planning Commission in 2015)
  • WTO — World Trade Organization (India is a member)

Practice MCQs

Q1. The Planning Commission of India was replaced by which institution?

  • A) Finance Commission
  • B) NITI Aayog
  • C) Reserve Bank of India
  • D) Economic Advisory Council

Answer: B — NITI Aayog replaced the Planning Commission on 1 January 2015.

Q2. India's GDP growth rate for 2023–24 was approximately:

  • A) 6.5%
  • B) 7.5%
  • C) 8.2%
  • D) 5.5%

Answer: C — India's GDP grew at approximately 8.2% in FY 2023-24, making it the fastest growing major economy.

Q3. The Pradhan Mantri Jan Dhan Yojana was launched for:

  • A) Agricultural loans
  • B) Financial inclusion (bank accounts for all)
  • C) Insurance for poor
  • D) Pension scheme

Answer: B — PMJDY was launched on 28 August 2014 to provide universal access to banking facilities.

Q4. GST (Goods and Services Tax) was implemented in India on:

  • A) 1 April 2017
  • B) 1 July 2017
  • C) 1 January 2018
  • D) 15 August 2017

Answer: B — GST was rolled out across India on 1 July 2017.

Q5. The concept of Five-Year Plans in India was inspired by:

  • A) USA
  • B) UK
  • C) USSR (Soviet Union)
  • D) Japan

Answer: C — India's Five-Year Plans were inspired by the Soviet Union's centrally planned economic model.

Q6. Which sector contributes the most to India's GDP?

  • A) Agriculture
  • B) Industry
  • C) Services
  • D) Manufacturing

Answer: C — The services sector contributes about 55–60% of India's GDP.

Q7. The Green Revolution in India was primarily associated with:

  • A) Horticulture crops
  • B) High-yielding varieties of wheat and rice
  • C) Tea and coffee
  • D) Jute and cotton

Answer: B — The Green Revolution (1960s–70s) focused on high-yielding variety seeds for wheat and rice.

Q8. The Reserve Bank of India was established in:

  • A) 1930
  • B) 1934
  • C) 1935
  • D) 1947

Answer: C — The RBI was established on 1 April 1935 under the Reserve Bank of India Act, 1934.

Q9. Which is the apex bank for agricultural credit in India?

  • A) SBI
  • B) SIDBI
  • C) NABARD
  • D) NHB

Answer: C — NABARD (National Bank for Agriculture and Rural Development) is the apex institution for agricultural credit.

Q10. The term 'Inflation' refers to:

  • A) Decrease in money supply
  • B) Rise in general price level
  • C) Fall in GDP
  • D) Increase in employment

Answer: B — Inflation is defined as a sustained rise in the general price level of goods and services.