MCQs 2026

A robust manufacturing sector creates employment opportunities across various skill levels and helps diversify the economy away from over-reliance on other sectors like agriculture or services.

The Index of Industrial Production (IIP) measures the growth rates in different industry groups of the economy, including manufacturing, mining, and electricity, thus directly reflecting industrial output.

The topic clearly states 'Manufacturing Sector Shows Strong Momentum, Boosting Industrial Output', making 'Boost in industrial output' the direct consequence.

During rapid economic expansion, increased demand for goods and services can outpace supply, leading to demand-pull inflation. RBI's vigilance aims to prevent this.

The Repo rate is a primary monetary policy tool used by the RBI to influence liquidity and control inflation by adjusting the cost of borrowing for commercial banks.

The topic explicitly states 'RBI Maintains Vigilance on Inflation', indicating it as the primary concern during economic expansion.

Stable employment and consistent income growth empower consumers to spend more, thereby sustaining domestic demand. High inflation erodes purchasing power, while currency depreciation and import tariffs primarily affect trade.

Strong domestic demand is primarily fueled by increased consumer spending and investment within the country.

The topic explicitly states that India's GDP growth is 'Driven by Domestic Demand', making it the primary driver.

The European Union is a major trading partner for India, and an FTA would significantly enhance economic cooperation.