Practice Questions Indian Economy

1. India’s Foreign Exchange Reserves as of January 2026 stood at:

2. The J-Curve effect in international trade suggests that:

3. India remained the world’s largest recipient of remittances with inflows of:

4. India’s share in global merchandise exports is:

5. Terms of Trade (ToT) refer to:

6. India’s Current Account Deficit in H1 FY 2025-26 was:

7. Import cover of foreign exchange reserves measures:

8. The highest ever monthly trade deficit in India was recorded in:

9. India’s External Debt to GDP ratio of 19.2% indicates:

10. Primary Income in Balance of Payments includes:

11. The key difference between FDI and FPI is:

12. Special Drawing Rights (SDRs) are:

13. The concept of ‘Hot Money’ refers to:

14. Under FEMA, Current Account transactions are:

15. Which state received the highest FDI equity inflow in India?

16. The Real Effective Exchange Rate (REER) measures:

17. The top source country for FDI in India (cumulative) is:

18. Foreign Exchange Reserves are held and managed by:

19. Foreign Portfolio Investment (FPI) is characterized by:

20. India’s merchandise trade deficit in FY 2024-25 was approximately:

21. The 1991 Balance of Payments crisis in India was caused by:

22. The Marshall-Lerner Condition states that:

23. India-US trade deal and India-EU FTA are significant for:

24. Secondary Income (Transfers) in Balance of Payments includes:

25. The Tarapore Committee was related to:

26. The sector attracting highest FDI equity inflow in India is:

27. Invisibles in Balance of Payments refer to:

28. A Balance of Payments crisis occurs when:

29. The Liberalized Remittance Scheme (LRS) allows:

30. Net International Investment Position (NIIP) measures:

31. FDI in India can come through which routes?

32. India’s major import items include:

33. India’s major export items include:

34. The components of Foreign Exchange Reserves are:

35. Capital Account Convertibility means:

36. India’s External Debt as of September 2025 stood at:

37. Union Budget 2025-26 proposed to increase FDI limit in insurance sector to:

38. The Current Account of Balance of Payments includes:

39. India’s cumulative FDI inflows from April 2000 to December 2025 crossed:

40. The Capital and Financial Account of BoP includes:

41. Foreign Direct Investment (FDI) is defined as:

42. India’s services exports are significant because:

43. The Balance of Payments always balances because:

44. Current Account Deficit (CAD) occurs when:

45. FDI policy in India is formulated by:

46. FEMA (Foreign Exchange Management Act) was enacted in:

47. External Commercial Borrowings (ECBs) refer to:

48. Balance of Payments (BoP) is defined as:

49. The term ‘Twin Deficit’ refers to:

50. The Balance of Trade (BoT) refers to: