SSC Indian Economy Questions with Answers (Static GK)

Indian Economy is an important part of the General Awareness section in SSC CGL, CHSL, MTS and GD. Two to three questions in each shift are based on basic economy facts such as the RBI, five year plans, GST, budget terms and banking. This practice paper gives you important fact tables and 30 practice questions with answers and short explanations.

Practice Paper at a Glance

Indian Economy Basics for SSC Exams

India follows a mixed economy, in which both the public sector (government) and the private sector work together. The economy is divided into three sectors.

• Primary sector: agriculture, fishing, forestry and mining.
• Secondary sector: manufacturing and construction.
• Tertiary sector (services): banking, transport, IT, trade and tourism. It is the largest contributor to India's GDP.
• GDP (Gross Domestic Product) is the total value of goods and services produced inside the country in one year.

Important Fact Tables for SSC Indian Economy

Important Financial Institutions

Important Economic Events and Schemes

Important Terms

Set 1: Basic Indian Economy Questions (Q1–Q10)

Q1. When was the Reserve Bank of India (RBI) established?
Answer: 1 April 1935
Solution: The RBI was nationalised in 1949.

Q2. Where is the headquarters of the RBI?
Answer: Mumbai
Solution: The RBI was shifted from Kolkata to Mumbai.

Q3. Which authority issues the one rupee note in India?
Answer: Ministry of Finance (Government of India)
Trick: All other notes are issued by the RBI.

Q4. Which body replaced the Planning Commission of India?
Answer: NITI Aayog
Solution: It was formed on 1 January 2015.

Q5. On which date was GST implemented in India?
Answer: 1 July 2017
Solution: GST replaced many indirect taxes.

Q6. What is the Indian financial year?
Answer: 1 April to 31 March
Solution: The Union Budget is prepared for this period.

Q7. Who presents the Union Budget in the Lok Sabha?
Answer: The Finance Minister
Solution: The budget is the annual financial statement under Article 112.

Q8. What was the period of the First Five Year Plan?
Answer: 1951 to 1956
Solution: It mainly focused on agriculture and irrigation.

Q9. Who designed the Indian rupee symbol?
Answer: D. Udaya Kumar
Solution: The symbol was adopted in 2010.

Q10. What is the full form of GDP?
Answer: Gross Domestic Product
Solution: It is the total value of goods and services produced in a country in a year.

Set 2: Reforms, Institutions and Schemes (Q11–Q20)

Q11. Who is known as the father of the Green Revolution in India?
Answer: M. S. Swaminathan
Solution: The Green Revolution increased wheat and rice production.

Q12. The White Revolution (Operation Flood) is associated with which product and which person?
Answer: Milk, Verghese Kurien
Solution: Verghese Kurien is known as the Father of the White Revolution.

Q13. Which sector contributes the most to India's GDP?
Answer: Services (tertiary) sector
Solution: Services make up more than half of GDP.

Q14. In which year were the LPG (Liberalisation, Privatisation and Globalisation) reforms introduced in India?
Answer: 1991
Solution: Manmohan Singh was the Finance Minister at that time.

Q15. Which Article of the Constitution provides for the Finance Commission?
Answer: Article 280
Solution: The Finance Commission is appointed every five years.

Q16. How many commercial banks were nationalised in 1969?
Answer: 14
Solution: Six more banks were nationalised in 1980.

Q17. Which body regulates the securities (stock) market in India?
Answer: SEBI
Solution: SEBI stands for Securities and Exchange Board of India.

Q18. For what purpose was NABARD established?
Answer: Agriculture and rural development
Solution: NABARD was set up in 1982.

Q19. What is the rate at which the RBI lends money to commercial banks called?
Answer: Repo rate
Trick: The reverse repo is the rate at which the RBI borrows.

Q20. In which year was the Pradhan Mantri Jan Dhan Yojana launched?
Answer: 2014 (28 August)
Solution: It aims at financial inclusion through zero-balance bank accounts.

Set 3: Terms, Taxes and Planning (Q21–Q30)

Q21. Which economic model was followed in the Second Five Year Plan?
Answer: Mahalanobis model (heavy industry)
Solution: P. C. Mahalanobis designed the plan with a focus on heavy industries.

Q22. In which year was MGNREGA enacted and how many days of work does it guarantee?
Answer: 2005, 100 days
Solution: It guarantees 100 days of wage employment in a year to rural households.

Q23. Which institution is the regulator of banks in India?
Answer: Reserve Bank of India (RBI)
Solution: The RBI controls money supply and credit.

Q24. Which of these is a direct tax: Income tax or GST?
Answer: Income tax
Solution: The taxpayer pays income tax directly to the government.

Q25. Which of these is an indirect tax: Income tax or GST?
Answer: GST
Solution: GST is collected from consumers through the price of goods and services.

Q26. What type of economy does India have?
Answer: Mixed economy
Solution: Both the public and private sectors work together.

Q27. Which commission recommends the Minimum Support Price (MSP) of crops?
Answer: Commission for Agricultural Costs and Prices (CACP)
Solution: The government announces the MSP on its recommendation.

Q28. Agriculture belongs to which sector of the economy?
Answer: Primary sector
Solution: The primary sector includes agriculture, mining and fishing.

Q29. What is the full form of CPI?
Answer: Consumer Price Index
Solution: CPI measures retail inflation.

Q30. Which document is presented by the government before the Union Budget and reviews the state of the economy?
Answer: The Economic Survey
Solution: It is prepared under the guidance of the Chief Economic Adviser in the Ministry of Finance.

Common Mistakes in Indian Economy

• Mixing up the establishment years of RBI (1935), SEBI (1988) and NABARD (1982).
• Confusing the repo rate with the reverse repo rate.
• Thinking that all currency notes are issued by the RBI (the one rupee note is issued by the Ministry of Finance).
• Mixing the Planning Commission (till 2014) with NITI Aayog (from 2015).
• Ignoring the difference between direct and indirect taxes.
• Not revising the numbers (14 banks, 1969, 1991, 2017).

How to Practice These 30 Questions

1. Learn the three tables and note the years in a notebook.
2. Revise one table daily and test yourself.
3. Solve one set per day and write the correct answer for every mistake.
4. Link economy facts with current affairs (latest budget, RBI policy).
5. Revise with previous year General Awareness questions.

Related Topics to Study Next

• SSC Static GK Questions
• Important Books and Authors
• Human Body Biology Questions
• SSC Current Affairs Questions

Frequently Asked Questions

How many Indian economy questions come in SSC exams?

Usually two to three economy questions come in the General Awareness section of SSC CGL, CHSL, MTS and GD.

When was the RBI established and where is its headquarters?

The RBI was established on 1 April 1935 and its headquarters is in Mumbai. It was nationalised in 1949.

What replaced the Planning Commission?

NITI Aayog replaced the Planning Commission on 1 January 2015.

When was GST implemented in India?

GST was implemented on 1 July 2017.

What is the difference between repo rate and reverse repo rate?

Repo rate is the rate at which the RBI lends to commercial banks. Reverse repo rate is the rate at which the RBI borrows from banks.

What is a mixed economy?

A mixed economy has both a public sector (government) and a private sector. India follows a mixed economy.

Which sector contributes the most to India's GDP?

The services (tertiary) sector contributes the most, followed by industry and agriculture.

What is the fiscal deficit?

Fiscal deficit is the difference between the total expenditure of the government and its total receipts excluding borrowings.

What are the LPG reforms of 1991?

LPG stands for Liberalisation, Privatisation and Globalisation. These reforms opened the Indian economy to private and foreign investment.

How should I prepare Indian economy for SSC exams?

Learn the tables of institutions, dates and terms, solve one set daily, and update yourself with the latest budget and RBI policy changes.