Indian economy for bank exams , Indian economy questions and answers for IBPS
Indian Economy for IBPS – Most of the banking sector exam especially (IBPS & SBI) must have General knowledge (GK) paper. This is a common paper for all bank exam or other competition exams so you will score well if you handle gk questions in bank exams smartly.
Today we are talking about one of a top most topic of IBPS General awareness syllabus which is “Indian economy”. IBPS Recruitment Guide provides you latest information about Indian economy 2018 which is the fastest growing economy in the world.
Here we focus on Gk questions on Indian economy major topics are the Current economy of India, economic development in India and other Indian economic news etc. Read this given information carefully most of the questions on the Indian economy are based on these paragraphs given below. Also, read IBPS GK Preparation tips here.
Indian Economy Questions Bank –
Do you want to know about “The economy of India” and Why it is important to know about the Indian economy? because it’s an important topic in the examination for all government sector jobs. Are you fighting for a bank po / bank clerical or any other government job? then it is a very important topic to know and to learn, that what is Indian economy and India’s economy facts that what is the important factor that is affecting our government institutions and people of India. you find many Indian economy questions in bank exams.
General knowledge is the main part of any question paper for any job in government sector. When we are talking about general knowledge, it involves a wide portion of the Indian economy. To score high and get a job all subject paper knowledge is important, and no one wants to lose a chance to get crack any government exam.
So, let’s come to understand about Indian economics. This article covers all important points related to the Indian economy that is essential from an exam point of view. also check ibps exam preparation complete guide here.
Indian economy questions for bank exams –
A multichoice question bank of Indian economy covers most of the questions from these given major topics given below. Read carefully about these topics and find answers below.
- What is the economy?
- types of economy
- Important factors of the economy
- Indian economy overview
- About stock exchanges
- What is GDP ? and it’s role in Indian Economy
- Inflation, fiscal year, trade organizations, foreign reserves, FDI stocks etc.
- What is the Current economy of India?
- Indian states and their capital
What is the economy?
The economy of India relates all the activities including production, distribution of goods and services in a particular geographic region. There are three types of economy system: planned, market and mixed. you find this in IBPS Indian economy questions mostly.
Three types of economy :
Capitalist economy: profit motive, the law of inheritance, competition, price mechanism, inequalities.
Socialist economy: central planning, social welfare, no class conflicts
Mixed economy: public and private sector, government regulation, economic planning, subsidy, economic planning.
Nehru came up with a mixed economy, means both of the public sector and the private sector. It means to have of socialism and capitalism. Right now, the economy is not wholly capitalist, more of capitalism mixed with populist schemes.
Important factors of the economy – Natural resources, Human resources, Capital formation, Technology.
Indian economy overview
According to the nominal GDP, Indian economy is the ninth largest economy in the world, and according to PPP (PURCHASING POWER PARITY), it is third largest in the world. Indian economy is one of the g-20 major economies and is a member of BRICS. collect Indian economy notes for ibps from this section.
In 2011, India‘s per capita was $3,703, that was 129th in the world and was making a lower-middle-income economy. In term of purchasing power, India’s economy is the third largest economy.
In coming years, it will touch new heights, according to the global investment bank, it is predicted that by 2035 India will be the largest economy after USA and China. To get 60% of the size of USA economy it has to pass through many phases before it can get the current milestone of 9% of GDP. It is a positive sign in the growth of Indian economy because India topped WORLD BANK’S growth for 2015-2016 with grown 7.3% in 2014-2015 and expected to grow 7.5-8.3% in 2015-2016.
The service sector of India contributed to 57% of GDP in 2012-2013. India is the major exporter of IT services, BPO services, and software services with $167 billion worth of service export in 2013-2014. IT industries are very growing private sector in Indian economy. In start-up hub, India is the fourth largest hub with 3100 start-ups in 2013-2014.
Agriculture sector contributes 17% share of its GDP to the Indian economy. Industry sector contributes to 26% share in GDP. India has a retail market and most fast growing E-commerce market with 600% worth. read this carefully you find most of the Indian economy questions and answers from it.
India has two stock exchanges:
Bombay stock exchange had a market capitalization of US$1.71 trillion has ranked 11th.
National stock exchange of India had a market capitalization of US$1.68 trillion has ranked 12th according to world federation of exchanges.
Indian economy interview questions mostly touched by Indian membership with :
- Commonwealth of nations
- South Asian Association for regional cooperation
- International Monetary Fund
- World Bank
- The World Trade Organization
- Asian Infrastructure Investment Bank
- United Nations
- New Development BRICS Bank Now checks Some important terms used in the economy.
The role of GDP in Indian Economy?
This questions asked many times under the Indian economy for bank PO study material. GDP (gross domestic product) is used to measure the economy and improvement in research and quality of data, statisticians.
- It shows economic growth of a country and production that consists of all purchases and services used by individual, firm and foreigners.
- It consists of consumer spending, investment expenditure, and net export.
- It provides decisions planning and formulation
With the analysis of GDP, it can be determined whether an economy is in recession, depression, or boom. GDP can be calculated in the Expenditure approach, Income approach, Value- added approach.
GDP = consumption + investment + gov. spending + export- import
GDP = c+ I + g + (X- M)
GDP will grow to 8.1%- 8.5% next year
What is Inflation?
It can be understood by a simple increase or decrease in price in the purchasing value of money. It is increasing in prices of goods and services. It can be measured by annual increase percentage.
If inflation is there, the dollar value is not constant. If inflation increase, purchasing power decrease. Deflation, when the general level of prices is falling. Hyperinflation unusually increases in inflation. Stagflation is the combination of high unemployment and economy stagnation with inflation.
There is growth to get 2-3% inflation rate. There are two causes:
Demand-pull inflation: if demand increases than supply and prices will increase. This happens in a growing economy.
Cost-push inflation: if the cost of companies goes up then they need to increase prices for profit margins.
Is inflation good or bad?
Sometimes there is a point that inflation is not good but true is inflation effects in a different way to different people, it depends on inflation is anticipated or unanticipated.
If inflation is unanticipated:- Creditors lose and debtors gain if a lender does not anticipate inflation correctly.
What is the fiscal year?
It is a North American term of the financial year, the fiscal year is a budget year, is a period for finding or calculating yearly financial statement in business. It starts on October 1 to 30 September.
What are trade organizations?
World trade organization developed on Jan 1, 1995, and as a member of WTO, India has to comply with TRIP standards. It is a rule-based multilateral trading organization.
What are the foreign reserves?
Foreign exchange reserves in India, are reported by RBI. these are foreign assets controlled by the country central bank. These are made of gold and specific currency.
This is the value of shares of capital and reserves to the parent enterprises, an inward stock is a value to the resident in a different economy. Outward is the value to another economy in resident in the economy.
Average gross salary?
These are measures for the financial well-being of the country. These are adjusted for living expenses.
What is the current economy of India?
Most of Indian economy questions are coming from these given details
- Currency = Indian rupee
- 1 rupee= 100 paise
1 USD = 71.06 INR
Fiscal year = 1 april – 31 march
Trade organization = WTO, BRICS , G-20 ETC
GDP = according to nominal it is $ 2.792 trillion ,and according to PPP it is $8.02 trillion
GDP rank= 6th (nominal), 3rd(PPP)
GDP growth = 7.4% Q2
GDP per capita = $2188(nominal), $6209(PPP)
GDP by factor = agricultural(17%), industry(26%), services(57%)
Inflation= 5.41%(CPI), -1.99%(WPI)
Base growth rate = 6.75%
Population below poverty line= 12.4% of $1.9o/day ( world bank)
Labour force= 502.3 million
Labour force by occupation = agricultural (49%), industry(20%), services(31%)
Unemployment= urban(3%), rural(2%), total= 10.8 million
Average gross salary = $1.46 per hour, GNI per capita $1631 per person
Industries = software, petroleum, products, chemicals ,textiles, machinery, leather many more
Exports: $321.5 billion(merchandise), $155.6(service export), $477.1(total)
Export partners = united states(16.2%), european union(13.4%) , united arab emirates(10.4%), china(4.2%) , hong kong(4.2%)
Imports = $463 billion(merchandise), $146.9(service imports), $609.9(total)
Import goods =crude oil, gold, precious stones , chemicals, plastics ,other
Import partners = china(12.7%), European union(10.5%), Saudi Arabia(7.1%), united arab amirates(5.9%), switzerland (4.6%)
FDI stocks = inflows ($261.7 billion), outflows($129.8 billion)
Foreign reserves = $ 325.5 billion, $ 407.9 million(forward contracts)
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Hope this complete information about Economy In India helps you to create question bank on Indian economy. If you read all given details carefully you will easily answer any of questions from indianeconomy. Institute of banking personnel selection (IBPS) covers Indian economy questions in ibps study material.
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