Q110. After Independence, which type of economic system did India adopt?
[RRB NTPC Graduate CBT-I 2026]
(A) A command economy
(B) A purely socialist economy
(C) A mixed economy
(D) An entirely capitalist economy
Answer: (C) A mixed economy
Explanation: India adopted a mixed economic framework in which public enterprises and private businesses operated together. The state led infrastructure and strategic sectors, while privately owned enterprises carried out much of agriculture, trade and other production activities.
Q109. According to the Economic Survey 2025–26, which sector was the largest contributor to India’s gross value added?
[RRB Group D (2025 cycle; held August 2026) 2026]
(A) Services
(B) Mining and quarrying
(C) Manufacturing
(D) Agriculture and allied activities
Answer: (A) Services
Explanation: Services contributed the largest share of India’s gross value added in the period assessed. Trade, finance, information services, transport and professional services are major components. Gross value added measures output after subtracting the intermediate inputs used.
Q108. Under Industrial Policy Resolution 1956:
(1) industries were split into three categories;
(2) Schedule A industries were exclusively reserved for private enterprises.
Which statement is correct?
[SSC MTS (2025 cycle; held February 2026) 2026]
(A) Statement 1 only
(B) Statement 2 only
(C) Both statements
(D) Neither statement
Answer: (A) Statement 1 only
Explanation: The 1956 resolution classified industries into three schedules according to the roles of government and private businesses. Its first schedule gave the state a commanding role, rather than reserving those industries for private enterprises.
Q107. Did the 1991 Industrial Policy aim both to introduce liberalisation and to ease restrictions on foreign direct investment?
[SSC MTS (2025 cycle; held February 2026) 2026]
(A) First objective only
(B) Second objective only
(C) Both objectives
(D) Neither objective
Answer: (C) Both objectives
Explanation: The new industrial policy sought to diminish licensing and entry barriers while welcoming greater overseas investment in many sectors. These changes supported competition, improved access to capital and technology, and reoriented industrial development toward market signals.
Q106. In the privatisation terminology used in the paper, what does total decentralisation signify?
[SSC MTS (2025 cycle; held February 2026) 2026]
(A) Complete transfer of a public enterprise to private ownership
(B) 51% transfer of a private firm to government
(C) 51% transfer of a public firm to private ownership
(D) Complete transfer of a private firm to government
Answer: (A) Complete transfer of a public enterprise to private ownership
Explanation: A complete ownership transfer hands the entire public enterprise to the private sector. It differs from a partial share sale in which government retains an interest, and from reforms confined to managerial or operating autonomy.
Q105. With reference to the Industrial Policy Resolution of 1948, which listed activities were reserved for the public sector: (1) shipbuilding and (2) telephone services?
[SSC MTS (2025 cycle; held February 2026) 2026]
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2
Answer: (C) Both 1 and 2
Explanation: The 1948 industrial policy distinguished fields retained within state responsibility from areas permitting private initiative subject to regulation. The listed transport and communications activities were included among those reserved to the state in the exam’s classification.
Q104. Which action most directly expresses the aim of economic liberalisation?
[DSSSB Court Attendant 2026]
(A) Reinforcing import substitution barriers
(B) Reducing state controls and barriers to market entry
(C) Increasing government control over industry
(D) Centralising all production decisions
Answer: (B) Reducing state controls and barriers to market entry
Explanation: Liberalisation lowers regulatory restraints that unnecessarily limit production, investment, trade or firm entry. It gives enterprises greater decision-making freedom without eliminating all public oversight. Regulatory standards can coexist with competitive markets and consumer protection.
Q103. During 1980–85, what was the chief priority of India’s Sixth Five-Year Plan?
[SSC CGL Tier I 2025]
(A) Only heavy-industry expansion
(B) Agriculture alone
(C) Poverty reduction alongside technological modernisation
(D) Immediate unrestricted globalisation
Answer: (C) Poverty reduction alongside technological modernisation
Explanation: The Sixth Plan emphasised reducing poverty while improving productive capacity and technology. Rural employment and integrated development programmes were important instruments. It differed from the Second Plan’s dominant heavy-industry focus and preceded the 1991 liberalisation package.
Q102. Foreign direct investment is most closely associated with which aspect of the LPG reforms?
[SSC CGL Tier I 2025]
(A) Nationalisation
(B) Globalisation
(C) Price administration
(D) Import prohibition
Answer: (B) Globalisation
Explanation: Globalisation connects the domestic economy more closely with foreign capital, firms, technology and markets. FDI is a form of cross-border investment with a lasting interest in an enterprise, so it directly reflects that international integration.
Q101. The new economic reforms in India commenced in which year?
[SSC CGL Tier I 2025]
(A) 1991
(B) 1984
(C) 2001
(D) 1977
Answer: (A) 1991
Explanation: The New Economic Policy was introduced in 1991 amid severe balance-of-payments pressures. It involved stabilisation measures and longer-term liberalisation, privatisation and globalisation, including reductions in industrial licensing and changes to trade and foreign-investment rules.
