MCQs - 2026-04

The decision to maintain the current repo rate aims to strike a balance between controlling inflation and fostering economic growth, potentially encouraging borrowing and investment.

Inflation has shown signs of moderation due to improved supply-side measures and stable global commodity prices.

The RBI's Monetary Policy Committee (MPC) has maintained a cautious stance, keeping the policy repo rate unchanged in its recent review.

The RBI's primary mandate is to maintain price stability while keeping in mind the objective of growth.

The current context specifically mentions projections for the fiscal year 2026-27 (FY27).

Sustained high GDP growth is expected to lead to increased employment opportunities, higher per capita income, and improved living standards.

The 'Make in India' initiative and Production Linked Incentive (PLI) schemes are specifically designed to boost manufacturing output in the country.

The projections are based on sustained domestic consumption, increased capital expenditure by the government, and a positive outlook for the manufacturing and services sectors.

Leading financial institutions and rating agencies project India's GDP growth for FY27 to be in the range of 6.5% to 7.0%, driven by domestic demand and manufacturing.

The exercise focuses on counter-terrorism in semi-urban settings and includes areas like intelligence sharing, cordon and search, raids, and joint defence, not large-scale conventional warfare.