Indian Economy chapter practice

Economic Reforms since 1991 MCQs

Practise 80+ Economic Reforms since 1991 MCQs for UPSC Prelims in Indian Economy, including 17+ previous year questions. The sample set below is shown with correct answers and explanations.

80
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17
PYQs
12
visible samples

Sample Economic Reforms since 1991 questions

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Q1Indian EconomyEconomic Reforms since 1991PYQ 2024

Which of the following statements regarding CSR under the Companies Act is correct?

  • ACSR includes expenditures made for the direct benefit of the company’s normal business
  • BCSR rules specify no spending threshold at all
  • CExpenditure benefiting the company directly in its normal course is not treated as CSRCorrect
  • DCSR is mandatory for every micro-enterprise in India

Explanation

Correct. Activities that directly benefit the company in the normal course of business are not counted as CSR expenditure.

Q2Indian EconomyEconomic Reforms since 1991PYQ 2022

Which of the following statements about foreign e-commerce entities in India is correct?

  • AThey may freely own inventory and sell it directly in marketplace model FDI
  • BTheir ownership links with major sellers on their platforms are restrictedCorrect
  • CThey are completely prohibited from participating in Indian e-commerce
  • DThey are regulated by the RBI alone

Explanation

Correct. Marketplace model FDI allows platform operation, but ownership and control over sellers are regulated and limited.

Q3Indian EconomyEconomic Reforms since 1991PYQ 2020

Post-1991 liberalization in rural India was associated with: 1. Non-farm economy growth in rural areas 2. Decline in growth rate of rural employment Which of the statements given above is/are correct?

  • A1 only
  • B2 only
  • CBoth 1 and 2Correct
  • DNeither 1 nor 2

Explanation

Correct. Post-1991, rural areas saw non-farm economic growth but also a deceleration in the growth rate of rural employment.

Q4Indian EconomyEconomic Reforms since 1991PYQ 2020

Which of the following is most closely related to ease of doing business reforms?

  • ASimplifying approvals, registration, taxation compliance and contract enforcementCorrect
  • BFixing MSP for foodgrains
  • CIncreasing CRR to control inflation
  • DImposing exchange controls on all trade invoices

Explanation

Correct. Ease of doing business reforms target procedural simplification, regulatory predictability and transaction-cost reduction.

Q5Indian EconomyEconomic Reforms since 1991PYQ 2019

With reference to the Indian Patents Act, consider the following statements: 1. A plant variety is not patentable in India. 2. A mere biological process for the production of plants is not patentable. 3. Intellectual Property Appellate Board no longer exists. Which of the statements given above are correct?

  • A1 and 2 only
  • B2 and 3 only
  • C1 and 3 only
  • D1, 2 and 3Correct

Explanation

Correct. Plant varieties and essentially biological processes are excluded from patentability, and the IPAB has since been abolished.

Q6Indian EconomyEconomic Reforms since 1991PYQ 2018

The Food Safety and Standards Act, 2006 primarily did which of the following?

  • AReplaced the Prevention of Food Adulteration framework with an integrated food safety regimeCorrect
  • BAbolished all food labeling requirements
  • CTransferred food regulation entirely to states
  • DCreated the National Pharmaceutical Pricing Authority

Explanation

Correct. The 2006 Act consolidated food laws and established the Food Safety and Standards Authority of India.

Q7Indian EconomyEconomic Reforms since 1991PYQ 2017

The National IPR Policy of India is best understood as a policy framework to:

  • AAbolish all patent protection in agriculture
  • BPromote innovation, awareness, commercialization and enforcement of intellectual property rightsCorrect
  • CReplace the WTO Agreement on TRIPS
  • DTransfer all IPR disputes to state governments

Explanation

Correct. The National IPR Policy seeks to foster creativity and innovation while strengthening IP administration, awareness and enforcement.

Q8Indian EconomyEconomic Reforms since 1991PYQ 2017

The National Investment and Infrastructure Fund (NIIF) is:

  • AA constitutional body that regulates all PPP contracts
  • BA sovereign-linked investment platform created to catalyze infrastructure financingCorrect
  • CA multilateral bank owned by BRICS only
  • DA subsidy scheme for farm mechanization

Explanation

Correct. NIIF is an investment platform with government participation designed to attract long-term capital for infrastructure and related sectors.

Q9Indian EconomyEconomic Reforms since 1991PYQ 2017

Post-1991 reforms in India were associated with which of the following? 1. Rise in foreign exchange reserves 2. Greater openness to foreign investment 3. Expansion of exports as a share of GDP Select the correct answer using the code given below:

  • A1 and 2 only
  • B2 and 3 only
  • C1 and 3 only
  • D1, 2 and 3Correct

Explanation

Correct. Liberalization increased openness, boosted foreign investment inflows and was associated with higher reserves and export integration over time.

Q10Indian EconomyEconomic Reforms since 1991PYQ 2017

Which of the following statements about the Benami Transactions (Prohibition) Amendment framework is correct?

  • ABenami property cannot be attached by authorities under any circumstances
  • BBenami property can be liable to confiscation under lawCorrect
  • CBenami law deals only with cash transactions, not property
  • DThere is no appellate mechanism under the law

Explanation

Correct. The amended framework provides for attachment and eventual confiscation of benami properties subject to due process.

Q11Indian EconomyEconomic Reforms since 1991PYQ 2016

The Financial Stability and Development Council (FSDC) in India is associated with:

  • AOverall macro-prudential financial sector coordinationCorrect
  • BSetting minimum support prices for crops
  • CManaging the Public Distribution System
  • DApproving Five Year Plans

Explanation

Correct. The FSDC is a high-level coordination body for financial stability, inter-regulatory coordination and development of the financial sector.

Q12Indian EconomyEconomic Reforms since 1991PYQ 2016

District Mineral Foundations were created primarily to:

  • AFinance monetary policy operations
  • BBenefit persons and areas affected by mining-related operationsCorrect
  • CSubsidize foreign direct investment in mining
  • DRegulate stock exchange listings of mining firms

Explanation

Correct. District Mineral Foundations are meant to work for the interest and benefit of people and areas affected by mining.

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PrelimsAI currently has 80+ Economic Reforms since 1991 MCQs under Indian Economy. This page shows 12 sample questions in full.
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17+ questions in this chapter are tagged as UPSC Prelims PYQs. PYQs are prioritised in the visible sample set when available.
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