Daily JAIIB Quiz 03 Nov 2026

India is a developing, mixed economy. Public and private enterprises both play important roles, and the economy includes modern, highly productive activities alongside traditional and informal activities. The other options incorrectly describe India as wholly planned, wholly subsistence-based, or lacking a services sector.

Pre-colonial India had significant agriculture as well as established artisanal and manufacturing activities, including textiles, metalwork and handicrafts. The economy was not exclusively industrial or dependent on modern mechanised factories. Colonial rule later altered trade patterns and the structure of production.

Over time, services have become the largest contributor to India‘s gross value added, while agriculture‘s share of output has declined even though it remains important for livelihoods and employment. Structural transformation does not mean agriculture has disappeared or that industry has no role.

India‘s planning framework sought to promote economic growth, modernisation, self-reliance and social justice, with changing emphasis over different plan periods. It did not aim to eliminate all private ownership or permanently prevent international trade.

NITI Aayog was formed by a Union Cabinet resolution on 1 January 2015, replacing the Planning Commission. It serves as a policy think tank and promotes cooperative federalism by working with States and Union Territories. It is not a constitutional body or a body that prepares Five-Year Plans in the old Planning Commission model.

Converting raw materials into manufactured goods is a secondary-sector activity. Mining iron ore is primary-sector activity, while transporting steel or providing banking services are tertiary-sector activities. Knowledge-intensive information services are often classified within the quaternary sector.

The Green Revolution involved the adoption of high-yielding variety seeds, irrigation, fertilisers, pesticides and improved farming practices. It significantly raised food-grain production, particularly wheat and rice in key regions. The White Revolution is associated with milk, and the Blue Revolution with fisheries.

The organised sector generally comprises establishments operating within a more formal regulatory and record-keeping framework, with greater coverage under applicable labour and social-security rules. The unorganised sector often has smaller units and less formal employment protection. The distinction is not simply whether a business is privately owned or profitable.

PSL guidelines direct an appropriate share of bank credit towards sectors considered important for inclusive development but which may not receive adequate credit otherwise. These include categories such as agriculture, MSMEs, export credit, education, housing and weaker sections, subject to RBI‘s current classification rules. PSL does not mean that every loan to every business automatically qualifies.

From 1 April 2025, a micro enterprise is one where investment in plant and machinery or equipment does not exceed ₹2.5 crore and turnover does not exceed ₹10 crore. Both criteria are relevant. The revised limits increased the earlier thresholds of ₹1 crore investment and ₹5 crore turnover.

Stand-Up India was designed to facilitate bank loans for setting up greenfield enterprises by at least one Scheduled Caste or Scheduled Tribe borrower and at least one woman borrower per bank branch, subject to scheme conditions. Make in India focuses on manufacturing and investment, while Startup India supports the startup ecosystem more broadly.

Reliable roads, railways, ports and aviation reduce travel time and logistics costs, connect producers to markets, improve labour mobility and support supply chains. Infrastructure can raise productivity and attract investment. It does not guarantee that every region will develop equally without complementary policies and services.

Schools, hospitals, public-health systems and related facilities are examples of social infrastructure because they support human development and quality of life. Roads, railways and power networks are usually classified as economic or physical infrastructure, although both kinds of infrastructure support development.

Globalisation can expand access to foreign markets, investment, technology, skills and global supply chains. Benefits are not automatic or evenly distributed; some domestic firms and workers may face greater competition, making adjustment support and sound policy important.

The 1991 reform programme is commonly described through liberalisation, privatisation and globalisation (LPG). Measures included reducing industrial licensing and trade restrictions, reforming parts of the public sector and increasing integration with the world economy. The reforms did not abolish the public sector or close India to foreign investment.

FDI generally involves a lasting interest and significant influence or control in an enterprise in another economy, often through establishing or acquiring business operations. Portfolio investment usually involves financial securities without the same degree of managerial influence. Exact regulatory thresholds and reporting requirements depend on applicable rules.

The IMF focuses on international monetary cooperation, macroeconomic and financial stability, surveillance and balance-of-payments support. The World Bank‘s core role is long-term development and poverty reduction through financing, knowledge and technical assistance. Their mandates overlap in some areas, but they are not interchangeable institutions.

The WTO provides a framework for trade agreements, a forum for trade negotiations and a mechanism for resolving trade disputes among members. It does not directly set domestic tax rates or act as a country‘s central bank. India is a WTO member and participates in its multilateral trade framework.

Sustainable development aims to meet present needs without compromising the ability of future generations to meet their own needs. It integrates economic progress, social inclusion and environmental protection. It is not limited to environmental conservation alone and does not require stopping all economic activity.

Jobless growth refers to a situation in which output or GDP grows but employment does not rise proportionately, or may grow very slowly. It can be associated with capital-intensive production, weak labour absorption, skill mismatches or changes in technology. It does not necessarily mean that GDP itself is declining.