MCQs with Answers on Economic Impact of the COVID-19 Pandemic on India

1. What was India’s GDP contraction rate for FY 2020-21 due to the COVID-19 pandemic?

A. 4.2%
B. 7.3%
C. 9.0%
D. 5.8%
Answer: B

2. Which sector in India witnessed the highest growth during the pandemic?

A. Agriculture
B. Manufacturing
C. Tourism
D. Real Estate
Answer: A

3. The COVID-19 pandemic accelerated the adoption of which technology in the financial sector?

A. Blockchain
B. Artificial Intelligence
C. Digital Payments
D. 5G Technology
Answer: C

4. What was the primary focus of the Atmanirbhar Bharat Abhiyan package announced during the pandemic?

A. Promoting foreign investments
B. Strengthening local manufacturing
C. Increasing exports
D. Enhancing tourism
Answer: B

5. Which economic indicator showed significant recovery in the post-pandemic period in India?

A. Forex Reserves
B. Consumer Price Index (CPI)
C. Fiscal Deficit
D. Unemployment Rate
Answer: A

6. The pandemic caused the highest unemployment rate in India during which month of 2020?

A. April
B. June
C. August
D. December
Answer: A

7. Which organization estimated India’s GDP growth at 9.5% for FY 2021-22 post-COVID-19?

A. World Bank
B. International Monetary Fund (IMF)
C. Reserve Bank of India (RBI)
D. Asian Development Bank (ADB)
Answer: B

8. What was the impact of the COVID-19 pandemic on India’s MSME sector?

A. Growth in exports
B. Increase in employment
C. Severe financial stress
D. Expansion of operations
Answer: C

9. The Pradhan Mantri Garib Kalyan Yojana (PMGKY) provided direct benefits during the pandemic to:

A. Farmers
B. Migrant Workers
C. Women and Marginalized Communities
D. All of the above
Answer: D

10. What was the major reason for the decline in India’s tourism industry during the pandemic?

A. Increased competition
B. Lack of infrastructure
C. Travel restrictions
D. High tax rates
Answer: C

11. Which fiscal policy measure was undertaken by India to combat COVID-19’s economic impact?

A. Reduction in GST rates
B. Moratorium on loans
C. Deregulation of markets
D. Increase in income tax
Answer: B

12. India’s agricultural sector grew at what rate during the pandemic in FY 2020-21?

A. 2.5%
B. 3.6%
C. 5.2%
D. 4.1%
Answer: B

13. What is the estimated economic loss for India due to the pandemic in 2020 as per the Asian Development Bank?

A. $25 billion
B. $50 billion
C. $90 billion
D. $100 billion
Answer: C

14. Which Indian industry experienced a significant boost due to the lockdown?

A. Aviation
B. E-commerce
C. Hospitality
D. Automobile
Answer: B

15. The government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for:

A. Startups
B. Large corporations
C. MSMEs
D. Public sector banks
Answer: C

16. Which body released the COVID-19 Economic Response and Recovery Assessment for India?

A. NITI Aayog
B. World Economic Forum
C. UNDP
D. OECD
Answer: A

17. What was India’s fiscal deficit as a percentage of GDP in FY 2020-21?

A. 3.8%
B. 6.2%
C. 9.3%
D. 7.5%
Answer: C

18. The pandemic led to which structural change in India’s labor market?

A. Increase in formal employment
B. Rise in gig economy workers
C. Greater industrial employment
D. Reduction in self-employment
Answer: B

19. Which international financial institution supported India with emergency COVID-19 funding?

A. World Bank
B. IMF
C. Asian Development Bank
D. All of the above
Answer: D

20. India witnessed a record rise in foreign direct investment (FDI) in which sector during the pandemic?

A. Pharmaceuticals
B. Information Technology
C. Real Estate
D. Manufacturing
Answer: A

21. What was the key objective of the PM-CARES fund during COVID-19?

A. Boost tourism
B. Procure medical supplies
C. Promote exports
D. Provide tax relief
Answer: B

22. The Reserve Bank of India reduced the repo rate to what percentage during the pandemic?

A. 4.0%
B. 5.2%
C. 3.5%
D. 6.0%
Answer: A

23. Which state in India announced the largest economic relief package during COVID-19?

A. Maharashtra
B. Tamil Nadu
C. Uttar Pradesh
D. Karnataka
Answer: A

24. India’s pharmaceutical exports during the pandemic grew by:

A. 5%
B. 18%
C. 25%
D. 10%
Answer: B

25. What is the term for the economic phenomenon caused by reduced demand during the pandemic?

A. Supply Shock
B. Demand Shock
C. Inflationary Gap
D. Stagflation
Answer: B

26. The “One Nation, One Ration Card” initiative was aimed at:

A. Reducing food wastage
B. Improving supply chain
C. Ensuring food security for migrants
D. Enhancing agricultural exports
Answer: C

27. Which initiative boosted healthcare infrastructure during the pandemic?

A. Make in India
B. PM Ayushman Bharat Yojana
C. PM Atmanirbhar Swasth Bharat Yojana
D. Digital India Mission
Answer: C

28. India’s digital economy grew significantly due to:

A. Increased smartphone penetration
B. Remote working trends
C. E-commerce adoption
D. All of the above
Answer: D

29. What was a major consequence of the rural-to-urban migration reversal during the pandemic?

A. Growth in rural economy
B. Labor shortages in urban areas
C. Decline in agricultural productivity
D. Increase in rural unemployment
Answer: B

30. The “Vande Bharat Mission” was launched to:

A. Export medical supplies
B. Repatriate stranded Indians abroad
C. Promote domestic manufacturing
D. Encourage local tourism
Answer: B