Economy & Business MCQs

Easing FDI norms aims to attract significant foreign investment to scale up renewable energy infrastructure, which is crucial for India's commitment to Net Zero emissions by 2070.

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry is responsible for the FDI policy framework in India.

The Government of India allows 100% Foreign Direct Investment (FDI) under the automatic route in the renewable energy sector to boost green energy capacity.

The Urjit Patel Committee report on Revisiting and Revitalizing the Monetary Policy Framework laid the foundation for the current liquidity management and inflation targeting framework.

The framework aims to keep the weighted average call money rate (WACR) aligned with the policy repo rate, which is the operating target of monetary policy.

The Liquidity Adjustment Facility (LAF) allows banks to borrow money from the RBI through repurchase agreements (repo) or lend to the RBI through reverse repo, helping manage daily liquidity.

Robust growth in manufacturing directly supports the 'Make in India' initiative by boosting domestic production, creating jobs, and potentially increasing exports, thereby making the initiative more successful.

The Manufacturing PMI is a survey-based economic indicator that provides timely information about the health of the manufacturing sector, reflecting trends in output, new orders, employment, and prices.

Robust growth in manufacturing signifies a healthy expansion, characterized by rising new orders, increased production volumes, and often, higher employment levels as companies scale up operations.

The RBI's primary objective, as per its mandate, is to maintain price stability while keeping in mind the objective of growth. This involves managing inflation within a target range.