Indian economy

The economy of India is the 6th largest in the world by nominal GDP and largest by purchasing power parity (ppp).

Nature of the Indian economy

  • Mixed economy Existence of both public and private sectors.
  • Agrarian economy Even after six decades of independence 58% of the workforce of India is still agriculturist and its contribution to GDP is approx 15% in 2016-17.

Broad seplanningctors of Indian economy

Primary sector Agriculture, forestry and fishing.

Secondary sector Mining, Manufacturing, electricity, gas and water supply and construction.

Tertiary sector is service sector business, transport, telecommunication, banking insurance, real estate community and personnel services.

Planning in India

  • Economic planning is mentioned in the concurrent list of seven schedule of the Indian constitution and embodies the objectives of directive principles of state policy.
  • Basic aim of economic planning is to bring rapid economic growth through agriculture, industry, power and all other sectors of the economy.
  • Planning commission (1950) was set up under the chairmanship of pt Jawaharlal Nehru (Gulzarilal Nanda was the first deputy chairman)


  • Planned economy of India (1934) M Visvesvaraya
  • National planning committee (1938) Jawaharlal Nehru
  • Bombay plan (1944)
  • Gandhian plan (1944) SN Agarwal
  • People’s plan (1945) MN Roy
  • Sarvodaya plan (1950) JP Narayan

NITI Aayog

  • Planning commission has been dissolved and replace by new institution NITI Aayog (National institution for transforming India) by Modi government. Aayog is headed by prime minister of India.
  • The first estimate of National income was prepared by Dadabhai Naoroji and per capita income was calculated ₹ 20 in 1870. The first scientific estimate was made by Prof. VKRV Rao using output and income method for the year (1931-32)

Outline of Indian economy

An economy which does not have any relation with the rest of the world is known as
(a) socialist economy

(b) closed economy

(c) open economy

(d) mixed economy


Which of the following economists is called the father of economic

(a) Malthus

(b) Robinson

(c) Ricardo

(d) Adam Smith


The rolling plan concept in National planning was introduced by

(a) Indira Gandhi government

(b) the National government

(c) The Janata party government

(d) Rajiv Gandhi government

The government of India has established NITI Aayog to replace the

(a) Human rights commission

(b) Finance commission

(c) Law commission

(d) Planning commission

Economic problem arises because of

(a) scarcity of means

(b) multiplicity of resources

(c) scarcity of wants

(d) over population

Economics is a

(a) computer science

(b) physical science

(c) social science

(d) natural science

What was the basic of Gandhian economy

(a) machine based growth

(b) khadi and cottage industries based growth

(c) external assistance based growth

(d) none of the above

Which economy is a market-oriented economy

(a) communist

(b) capitalist

(c) socialist

(d) mixed

Human development index was developed by

(a) Amartya Sen

(b) Friedman

(c) Mahbub ul haq

(d) Montek singh

Who estimated the National income for the first time in India

(a) Mahalanobis

(b) Dadabhai Naoroji

(c) VKRV Rao

(d) Sardar Patel

Economic development of a country depends on

(a) Natural resources

(b) Capital formation

(c) Size of the market

(d) All of the above

National income is generated from

(a) any money marking activity

(b) any laborious activity

(c) any profit making activity

(d) any productive activity

Who among the following first made economic planning for India

(a) M N Roy

(b) Dadabhai Naoroji

(c) M Visvesvaraya

(d) Jawaharlal Nehru

Planned economy of India was written by

(a) M Visvesvaraya

(b) Dadabhai Naoroji

(c) Shriman Narayan

(d) Jawaharlal Nehru

Bombay plan was prepared in 1943 by

(a) M N Roy

(b) Eight industrialists

(c) Shriman Narayan

(d) None of the above

The economy of India is the ……largest in the world

(a) 4th

(b) 6th

(c) 8th

(d) 12th

Planning in India was started in

(a) 1951

(b) 1950

(c) 1952

(d) None of these

Which plan was based on mahalanobis model

(a) 1st plan

(b) 4th plan

(c) 2nd plan

(d) 6th plan

Gadgil formula is concerned with

(a) 4th plan

(b) 8th plan

(c) 1st plan

(d) 3rd plan

Which of the following plan is called rolling plan

(a) 4th plan

(b) 6th plan

(c) 5th plan

(d) 8th plan

Mukherjee committee was constituted during

(a) 5th plan

(b) 4th plan

(c) 6th plan

(d) 8th plan

The targetted average annual GDP growth rate during 12th plan is

(a) 8%

(b) 8.2%

(c) 9%

(d) 10%

Which of the following is included in the primary sector

(a) Agriculture

(b) Mining

(c) Forestry

(d) All of these

Which of the following is related to secondary sector

(a) Manufacturing

(b) Transport

(c) Trade

(d) All of these

Service sector (tertiary sector) includes

(a) Trade

(b) Transport

(c) Health and education

(d) All of the above