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Multiple-choice questions (MCQs) with answers on “Economic Impact of Tourism in India” for the Civil Services Examination

1. What is the primary economic benefit of tourism in India?

  • A) Environmental conservation
  • B) Creation of employment
  • C) Reduction of inflation
  • D) Decrease in poverty levels

Answer: B) Creation of employment

2. Which sector is most directly impacted by tourism revenue in India?

  • A) Manufacturing
  • B) Education
  • C) Hospitality
  • D) Agriculture

Answer: C) Hospitality

3. What is the approximate contribution of tourism to India’s GDP as of 2023?

  • A) 5%
  • B) 7%
  • C) 10%
  • D) 12%

Answer: B) 7%

4. Which Indian state has the highest number of international tourist arrivals?

  • A) Tamil Nadu
  • B) Uttar Pradesh
  • C) Kerala
  • D) Maharashtra

Answer: C) Kerala

5. The “Incredible India” campaign is associated with which sector?

  • A) Healthcare
  • B) Tourism
  • C) Agriculture
  • D) Education

Answer: B) Tourism

6. Which of the following is a significant challenge faced by the tourism industry in India?

  • A) High inflation rates
  • B) Infrastructure development
  • C) Trade deficits
  • D) Currency devaluation

Answer: B) Infrastructure development

7. The introduction of the e-visa system in India aims to:

  • A) Reduce trade barriers
  • B) Increase tourism arrivals
  • C) Lower travel costs
  • D) Improve domestic tourism

Answer: B) Increase tourism arrivals

8. What type of tourism is particularly emphasized by the “Amazing India” initiative?

  • A) Adventure tourism
  • B) Eco-tourism
  • C) Cultural tourism
  • D) Medical tourism

Answer: C) Cultural tourism

9. How does tourism contribute to foreign exchange earnings in India?

  • A) Through remittances
  • B) Through foreign direct investment
  • C) Through spending by international tourists
  • D) Through export of services

Answer: C) Through spending by international tourists

10. Which Indian city is known as the “City of Lakes” and is a significant tourist destination?

  • A) Jaipur
  • B) Udaipur
  • C) Mumbai
  • D) Bangalore

Answer: B) Udaipur

11. The tourism industry in India is largely dependent on which demographic for international arrivals?

  • A) Europeans
  • B) Americans
  • C) Chinese
  • D) Japanese

Answer: A) Europeans

12. The “Swadesh Darshan” scheme is designed to:

  • A) Promote agricultural tourism
  • B) Develop theme-based tourist circuits
  • C) Improve medical tourism
  • D) Enhance business tourism

Answer: B) Develop theme-based tourist circuits

13. Which Indian state is famous for its “Backwaters” tourism?

  • A) Goa
  • B) Kerala
  • C) Himachal Pradesh
  • D) Rajasthan

Answer: B) Kerala

14. Which of the following is a key economic impact of tourism on local communities?

  • A) Decrease in property values
  • B) Increased job opportunities
  • C) Higher import duties
  • D) Reduced local business activity

Answer: B) Increased job opportunities

15. What percentage of total employment in India is estimated to be provided by the tourism sector?

  • A) 10%
  • B) 12%
  • C) 15%
  • D) 20%

Answer: B) 12%

16. How does tourism contribute to infrastructure development in India?

  • A) By funding government projects
  • B) By improving transportation and amenities
  • C) By decreasing public transportation costs
  • D) By increasing private sector investments

Answer: B) By improving transportation and amenities

17. Which of the following sectors is indirectly supported by tourism in India?

  • A) Textile industry
  • B) Steel industry
  • C) Mining industry
  • D) IT industry

Answer: A) Textile industry

18. The “Tourism Satellite Account” (TSA) is used to:

  • A) Track international tourist arrivals
  • B) Measure the economic impact of tourism
  • C) Develop tourism policies
  • D) Monitor environmental impacts

Answer: B) Measure the economic impact of tourism

19. Which Indian festival is a major attraction for international tourists?

  • A) Holi
  • B) Diwali
  • C) Pongal
  • D) Navratri

Answer: B) Diwali

20. The development of which infrastructure is crucial for promoting tourism in rural areas?

  • A) High-speed trains
  • B) Airports
  • C) Roads and basic amenities
  • D) Shopping malls

Answer: C) Roads and basic amenities

21. What role does the Ministry of Tourism play in India’s tourism industry?

  • A) Regulating travel agencies
  • B) Promoting tourism and developing policies
  • C) Managing tourist visas
  • D) Conducting market research

Answer: B) Promoting tourism and developing policies

22. The “Clean India” initiative also impacts tourism by:

  • A) Improving local infrastructure
  • B) Enhancing cultural heritage sites
  • C) Increasing the number of hotels
  • D) Promoting medical tourism

Answer: A) Improving local infrastructure

23. The “Niche Tourism” concept in India includes which of the following?

  • A) Mass tourism
  • B) Eco-tourism
  • C) Luxury tourism
  • D) Beach tourism

Answer: B) Eco-tourism

24. What is the impact of domestic tourism on India’s economy?

  • A) Decreases national revenue
  • B) Encourages local spending and investment
  • C) Increases foreign exchange reserves
  • D) Reduces infrastructure costs

Answer: B) Encourages local spending and investment

25. The “Statistical Yearbook of Tourism” published by the Ministry of Tourism provides data on:

  • A) Tourist spending patterns
  • B) Tourist arrivals and departures
  • C) Environmental impacts of tourism
  • D) Travel agency regulations

Answer: B) Tourist arrivals and departures

26. Which of the following is a major benefit of promoting heritage tourism in India?

  • A) Increased environmental degradation
  • B) Preservation of historical sites
  • C) Decreased international tourist arrivals
  • D) Increased property taxes

Answer: B) Preservation of historical sites

27. The “Pradhan Mantri Awas Yojana” indirectly supports tourism by:

  • A) Building luxury hotels
  • B) Providing affordable housing near tourist destinations
  • C) Increasing international flights
  • D) Developing new tourist attractions

Answer: B) Providing affordable housing near tourist destinations

28. What is a significant economic challenge associated with tourism in India?

  • A) Decrease in consumer prices
  • B) Seasonal fluctuations in tourist arrivals
  • C) Excessive government subsidies
  • D) Overdevelopment of rural areas

Answer: B) Seasonal fluctuations in tourist arrivals

29. Which of the following initiatives aims to boost rural tourism in India?

  • A) National Rural Employment Guarantee Scheme
  • B) National Tourism Policy
  • C) Rural Infrastructure Development Fund
  • D) National Skill Development Mission

Answer: B) National Tourism Policy

30. How does the tourism sector support the agricultural sector in India?

  • A) By reducing crop prices
  • B) By creating demand for local produce
  • C) By increasing import duties on agricultural products
  • D) By providing subsidies to farmers

Answer: B) By creating demand for local produce

These MCQs cover various aspects of the economic impact of tourism in India and provide a broad overview of the subject for examination purposes.

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