For competitive exams such as UPSC, SSC, Banking, Railways, Defence, and State PSCs, knowledge of the Indian Economy is an essential part of the exam curriculum for both current affairs and General Studies papers. The Indian economy demonstrates a unique fusion of market-oriented growth with state-led welfare, known as a Mixed Economy. Whether you are studying important concepts such as GDP, fiscal deficit, and inflation or impactful reforms like GST, demonetisation, and financial inclusion, each topic gives you a clearer understanding of how India’s economic and development models interact. The following Indian Economy multiple choice questions with answers and simple explanation, are presented to assist you in consolidating your conceptual clarity and analytical understanding of key economic terms, policies, and schemes which are important for competitive exams.