MCQs on “The Role of Startups in India’s Economic Growth”

What is the primary objective of startups in India?
- A) To create monopolies
- B) To innovate and disrupt markets
- C) To focus on traditional industries
- D) To follow established business models
  Answer: B) To innovate and disrupt markets
Which of the following sectors has seen significant startup activity in India?
- A) Agriculture
- B) Manufacturing
- C) Information Technology
- D) All of the above
  Answer: D) All of the above
Which initiative was launched by the Indian government to promote startups?
- A) Make in India
- B) Startup India
- C) Digital India
- D) Skill India
  Answer: B) Startup India
What is a significant benefit of startups for the Indian economy?
- A) Creation of job opportunities
- B) Increased government regulation
- C) Stagnation of traditional businesses
- D) Reduction in foreign investment
  Answer: A) Creation of job opportunities
Which of the following is a common challenge faced by startups in India?
- A) Abundance of funding
- B) Lack of skilled workforce
- C) Overregulation
- D) Saturation of markets
  Answer: B) Lack of skilled workforce
What role do incubators play in the startup ecosystem?
- A) They replace the need for investors
- B) They provide funding exclusively
- C) They offer mentorship and resources
- D) They focus on government policies
  Answer: C) They offer mentorship and resources
Which Indian city is known as the startup capital of India?
- A) Mumbai
- B) New Delhi
- C) Bengaluru
- D) Hyderabad
  Answer: C) Bengaluru
What is a “Unicorn” in the startup ecosystem?
- A) A startup with high social impact
- B) A startup that has reached a valuation of over $1 billion
- C) A startup that has been funded by a government scheme
- D) A startup that focuses on technology
  Answer: B) A startup that has reached a valuation of over $1 billion
Which of the following factors significantly contributes to the growth of startups in India?
- A) High tariffs on imports
- B) Ease of doing business
- C) Rigid labor laws
- D) Low consumer demand
  Answer: B) Ease of doing business
Which government scheme aims to provide financial support to startups?
- A) MUDRA
- B) PMEGP
- C) Startup India Seed Fund Scheme
- D) Atal Innovation Mission
  Answer: C) Startup India Seed Fund Scheme
In which year was the “Startup India” initiative launched?
- A) 2014
- B) 2015
- C) 2016
- D) 2017
  Answer: B) 2015
Which of the following is NOT a feature of the Startup India initiative?
- A) Self-certification for compliance
- B) Tax benefits
- C) Mandatory registration
- D) Funding support
  Answer: C) Mandatory registration
Which sector has seen a significant number of health tech startups in India?
- A) Agriculture
- B) Information Technology
- C) Healthcare
- D) Real Estate
  Answer: C) Healthcare
What is the impact of startups on innovation in India?
- A) Minimal impact
- B) Major driver of innovation
- C) Only impacts large corporations
- D) Detracts from traditional industries
  Answer: B) Major driver of innovation
Which of the following is a common funding source for startups?
- A) Family and Friends
- B) Angel Investors
- C) Venture Capitalists
- D) All of the above
  Answer: D) All of the above
What is the primary aim of the Atal Innovation Mission?
- A) To reduce imports
- B) To promote innovation and entrepreneurship
- C) To increase taxes on startups
- D) To regulate tech companies
  Answer: B) To promote innovation and entrepreneurship
Which of the following challenges do women-led startups often face?
- A) Lack of ideas
- B) Limited access to funding
- C) Excessive government support
- D) Strong competition
  Answer: B) Limited access to funding
What percentage of India’s GDP is estimated to come from startups by 2025?
- A) 5%
- B) 10%
- C) 15%
- D) 20%
  Answer: B) 10%
Which of the following sectors has seen the fastest growth in the startup ecosystem?
- A) Tourism
- B) Fintech
- C) Manufacturing
- D) Agriculture
  Answer: B) Fintech
What is the main purpose of government support for startups?
- A) To regulate their activities
- B) To create a monopoly
- C) To foster economic growth and job creation
- D) To control market prices
  Answer: C) To foster economic growth and job creation
Which of the following is a global platform that supports startups?
- A) World Bank
- B) UNDP
- C) Y Combinator
- D) BRICS
  Answer: C) Y Combinator
What type of innovation do startups primarily focus on?
- A) Incremental innovation
- B) Disruptive innovation
- C) Process innovation
- D) None of the above
  Answer: B) Disruptive innovation
Which Indian organization promotes and funds startups in the country?
- A) NITI Aayog
- B) RBI
- C) SEBI
- D) Planning Commission
  Answer: A) NITI Aayog
Which of the following can be considered a social startup?
- A) A tech company focusing on software
- B) An enterprise addressing environmental issues
- C) A fashion retail store
- D) A traditional manufacturing unit
  Answer: B) An enterprise addressing environmental issues
What is a common way for startups to validate their business idea?
- A) Creating a detailed business plan
- B) Conducting market research
- C) Launching without testing
- D) Seeking government approval
  Answer: B) Conducting market research
Which of the following is an advantage of starting a business in a digital economy?
- A) Higher operational costs
- B) Limited market access
- C) Global reach and scalability
- D) Increased regulatory hurdles
  Answer: C) Global reach and scalability
Which of the following roles do accelerators play in the startup ecosystem?
- A) Providing loans exclusively
- B) Offering mentorship and resources
- C) Regulating startups
- D) Limiting market competition
  Answer: B) Offering mentorship and resources
What is the purpose of the “Fund of Funds for Startups” (FFS)?
- A) To invest directly in startups
- B) To create a fund for social causes
- C) To invest in other venture capital funds
- D) To support traditional businesses
  Answer: C) To invest in other venture capital funds
What impact do startups have on traditional industries?
- A) They replace traditional businesses entirely
- B) They lead to innovation and competition
- C) They have no impact
- D) They reduce employment in traditional sectors
  Answer: B) They lead to innovation and competition
Which of the following best describes a “bootstrapped” startup?
- A) A startup that relies on external funding
- B) A startup that is self-funded by its founders
- C) A startup that has received government grants
- D) A startup with high operational costs
  Answer: B) A startup that is self-funded by its founders

These questions cover various aspects of the role of startups in India’s economic growth, including policies, challenges, and impacts, suitable for a Civil Services Examination context.

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