Q80. What did a Five-Year Plan “holiday” signify in India’s planning history?
[SSC CGL Tier I 2025]
(A) The suspension of all public investment
(B) Replacement of regular five-year plans by annual plans
(C) A national public holiday
(D) The abolition of the Planning Commission
Answer: (B) Replacement of regular five-year plans by annual plans
Explanation: The plan holiday of 1966–69 was a period of annual plans between the Third and Fourth Five-Year Plans. Economic difficulties, drought and war-related pressures made a normal multi-year plan difficult at that time.
Q79. Which international institutions were especially associated with India’s 1991 external-sector support and reform programme?
[SSC CGL Tier I 2025]
(A) WHO and UNICEF
(B) World Bank and IMF
(C) UNESCO and ILO
(D) WMO and ICAO
Answer: (B) World Bank and IMF
Explanation: India obtained external financial assistance in the aftermath of the balance-of-payments crisis. The IMF and World Bank were central institutions in that response, alongside domestic policy decisions to stabilise finances and restructure economic regulations.
Q78. What was the central purpose of import substitution in the early Indian planning period?
[SSC CGL Tier I 2025]
(A) Increase dependence on imported consumer goods
(B) Protect domestic production and reduce import reliance
(C) Eliminate all exports permanently
(D) Replace domestic production with international credit
Answer: (B) Protect domestic production and reduce import reliance
Explanation: Import substitution sought to develop local manufacturing behind trade restrictions so goods previously purchased abroad could be produced in India. It supported industrial self-reliance, although prolonged protection also raised concerns about efficiency and competition.
Q77. Which economic arrangement best describes India’s mixed economy?
[SSC CGL Tier I 2025]
(A) The state owns every enterprise
(B) Private actors produce everything without government
(C) Public and private sectors coexist
(D) Production is organised solely by households
Answer: (C) Public and private sectors coexist
Explanation: India’s mixed economy combines public-sector enterprises, private businesses and policy intervention by the state. The relative roles have evolved, particularly after 1991, but public and private economic activity continue to operate alongside one another.
Q76. What reform most directly facilitated entry of multinational corporations into the Indian economy?
[SSC CGL Tier I 2025]
(A) Land redistribution
(B) Globalisation
(C) Complete trade prohibition
(D) A return to the licence raj
Answer: (B) Globalisation
Explanation: Greater openness to cross-border investment and technology enabled multinational enterprises to enter more activities in India. This was a prominent element of globalisation within the 1991 reforms, alongside trade and investment-policy liberalisation.
Q75. The Industrial Policy of which year marked a decisive reduction in licensing restrictions on private industry?
[SSC CGL Tier I 2025]
(A) 1956
(B) 1977
(C) 1980
(D) 1991
Answer: (D) 1991
Explanation: The New Industrial Policy of 1991 removed compulsory industrial licensing for most sectors and eased limitations on domestic and foreign private investment. It represented an important break from the previously permission-intensive industrial policy system.
Q74. Which item was NOT directly associated with post-1991 banking and financial-sector reforms?
[RPSC RAS Preliminary 2025]
(A) Capital adequacy norms
(B) Recognition of non-performing assets
(C) Fiscal Responsibility and Budget Management Act
(D) SARFAESI Act
Answer: (C) Fiscal Responsibility and Budget Management Act
Explanation: Capital adequacy standards, transparent identification of bad loans and secured-asset recovery are banking reform matters. The FRBM Act primarily establishes fiscal discipline for government budgets, making it distinct from measures directed specifically at banking operations.
Q73. What fiscal deficit, as a percentage of GDP, was projected for 2024–25 in the Union Budget 2024–25?
[CGPSC Preliminary 2025]
(A) 4.9%
(B) 3.9%
(C) 2.9%
(D) 3.5%
Answer: (A) 4.9%
Explanation: The Budget projected a fiscal deficit of 4.9 percent of GDP for 2024–25. Fiscal deficit is the government’s expenditure exceeding receipts other than borrowings. The target reflected a phased attempt to reduce borrowing needs.
Q72. Which system of industrial controls was dismantled substantially after liberalisation?
[MPPSC Assistant Professor (Commerce) 2025]
(A) Licence-Permit-Quota Raj
(B) Bank nationalisation
(C) Agricultural subsidy programmes
(D) Cooperative banking
Answer: (A) Licence-Permit-Quota Raj
Explanation: The Licence-Permit-Quota Raj used extensive permits and administrative allocations to regulate capacity and entry. The 1991 policy removed industrial licensing for many activities, although certain sensitive or strategic industries remained subject to controls.
Q71. What distinctive role did the government play in India’s mixed economy?
[RRB NTPC Undergraduate CBT-I 2025]
(A) The public sector dominated major core industries
(B) All business licensing was absent
(C) Every enterprise was fully privatised
(D) Consumer demand replaced all public priorities
Answer: (A) The public sector dominated major core industries
Explanation: Post-independence Indian planning assigned the public sector a leading role in heavy industry, infrastructure and other strategic fields. Private enterprise still coexisted alongside it, distinguishing this model from either pure capitalism or total state ownership.
