May 27, 2025
    |   No Comments
    |   gauravprem75666
    |   2:04 pm

Indian Economy: Ultimate Guide for NTPC Exam Preparation (2025 Edition)

Introduction

Understanding the Indian economy is crucial for cracking competitive exams like NTPC, SSC, UPSC, and Banking. This ultimate guide covers sectoral data, key reforms, definitions, economic indicators, and over 80 most expected questions with answers, making it your one-stop solution for exam readiness.

Key Features of the Indian Economy

  • Agro-Based: Agriculture supports 48% of the population and contributes around 16.5% to GDP.

  • Overpopulation: Home to 17.5% of the world’s population.

  • Income Inequality: 1% of Indians own 53% of national wealth.

  • Low Capital Formation & Infrastructure Gaps: Hurdles in growth and employment generation.

Sectoral Composition of Indian Economy

Sector Description GDP Share Workforce Share
Primary Agriculture, Forestry, Fishing, Mining 16.5% 48%
Secondary Manufacturing, Construction, Industry 29.01% 24%
Tertiary IT, Banking, Education, Healthcare, Transport 53.09% 27%

Recent Economic Trends

  • GDP Growth (2024-25): Projected at ~7%.

  • Service Sector Boom: Highest contributor to GDP.

  • Resilience Post-COVID: Two years of 7%+ growth.

  • Goal: $5 trillion economy in the next 3 years.

✅ Top 80+ Most Expected Questions with Answers – Indian Economy

Here are the most frequently asked questions in NTPC and other competitive exams, categorized for easier understanding:

National Income & Indicators

  1. What is GDP?
    Total value of all final goods/services produced within a country in a year.

  2. How is GNP different from GDP?
    GNP = GDP + Net Income from Abroad.

  3. Define Per Capita Income.
    PCI = National Income / Population.

  4. What is NDP?
    NDP = GDP – Depreciation.

  5. What is HDI and who publishes it?
    Human Development Index, by UNDP.

Inflation & Fiscal Policy

  1. What is Inflation? Name types.
    A rise in general price level. Types: Demand-pull, Cost-push, Built-in.

  2. What is Deflation?
    A fall in general price level.

  3. Define Fiscal Deficit.
    Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-debt Capital Receipts)

Banking & Monetary Policy

  1. What is Repo Rate?
    Rate at which RBI lends to commercial banks.

  2. What is CRR?
    Percentage of total deposits banks keep with RBI.

  3. Who formulates Monetary Policy in India?
    Reserve Bank of India (RBI).

Sectors & Reforms

  1. Which sector employs the most people in India?
    Agriculture (~48%).

  2. What is Mixed Economy?
    Combines capitalist and socialist elements. Example: India.

  3. When were Indian banks nationalized?
    Major banks in 1969 and 1980.

  4. What is the main objective of Make in India?
    Boost manufacturing and job creation.

  5. What does Atmanirbhar Bharat promote?
    Self-reliance and reduced import dependency.

Economic Planning & Five-Year Plans

  1. Which Five-Year Plan focused on industrialization?
    Second (1956–1961), Mahalanobis Model.

  2. What was the focus of the Eighth Five-Year Plan?
    Economic liberalization and reforms.

International Trade & Finance

  1. What is Dumping?
    Selling goods abroad at lower-than-domestic prices.

  2. What is the function of WTO?
    Regulates global trade and resolves disputes.

🔥 Additional 10 High-Value Questions for NTPC (With Answers)

  1. What is Purchasing Power Parity (PPP)?
    A theory that adjusts exchange rates to equalize prices of identical goods in different countries.

  2. What is the difference between WPI and CPI?
    WPI: Wholesale prices; CPI: Retail prices.

  3. What is the role of NITI Aayog?
    Acts as a policy think-tank for the Government of India.

  4. What is SIDBI’s primary function?
    Provides financial aid to micro, small, and medium enterprises (MSMEs).

  5. What is Sustainable Development?
    Growth that meets current needs without compromising future generations.

  6. When did India adopt market-based GDP calculation?
    From January 2015.

  7. What is the role of SEBI?
    Regulates capital markets and protects investor interests.

  8. What is the objective of the Digital India Mission?
    To transform India into a digitally empowered knowledge economy.

  9. What is the Swachh Bharat Mission?
    Aims for universal sanitation and open defecation-free status.

  10. What is the Ujjwala Yojana?
    Provides LPG connections to BPL households.

📝 Final Words and Power Preparation Tips

✔ Keep revising sectoral GDP data.
✔ Focus on flagship schemes like PMJDY, Make in India, Digital India, and Atmanirbhar Bharat.
✔ Master all economic definitions and policy tools.
✔ Practice mock tests and past NTPC papers regularly.
✔ Track recent economic data and updates from RBI, NSO, and NITI Aayog.

💡 FAQs on Indian Economy for NTPC Exam

Q1. What is the sectoral GDP composition in India (2023-24)?
Agriculture: 16.5%, Industry: 29.01%, Services: 53.09%.

Q2. What is India’s projected GDP growth in 2024-25?
Around 7%.

Q3. Which plan focused on key industries?
Second Five-Year Plan.

Q4. What institution supports rural development?
NABARD (established in 1982).

Q5. Which is the largest employment-generating sector?
Agriculture.RRB NTPC syllabus

To read this blog in Hindi CLICK HERE 

For read more blog like this CLICK HERE

Tags: