MCQs on India's Economy: GDP, Inflation, RBI Policy

171.

What is the primary objective of the Reserve Bank of India (RBI) regarding inflation?

A To maintain inflation above 6%

B To ensure inflation progressively aligns with the target of 4%

C To allow inflation to fluctuate freely

D To keep inflation below 2%

172.

How does India's economic growth contribute to the global economy?

A By increasing global inflation

B By becoming a major consumer market and investment destination

C By reducing global trade volumes

D By exporting low-value goods

173.

Which sectors are identified as key contributors to India's economic expansion?

A Agriculture and mining

B Manufacturing and services

C Textiles and construction

D IT and healthcare

174.

What is a significant impact of sustained GDP growth on India?

A Decreased per capita income and reduced employment

B Increased reliance on foreign aid and lower investment

C Enhanced per capita income, job creation, and attraction of foreign investment

D Stagnation in key economic sectors and reduced business opportunities

175.

Which factors are primarily driving India's projected GDP growth in FY27?

A Declining exports and reduced government spending

B Strong domestic consumption and increased capital expenditure

C Lower inflation and stable global commodity prices

D Increased foreign debt and reduced private investment

176.

What is the projected GDP growth rate for India in FY27 by major economic agencies?

A Approximately 6.0-6.5%

B Approximately 7.0-7.5%

C Approximately 8.0-8.5%

D Approximately 5.5-6.0%

177.

What is a significant impact of an upward revision by the IMF on India's economy?

A It typically leads to a decrease in foreign direct investment.

B It boosts investor confidence and strengthens India's appeal as an investment destination.

C It signals a need for more stringent fiscal consolidation measures.

D It often results in a downgrade of India's credit rating.

178.

Which of the following factors contributed to the IMF's upward revision of India's growth forecast?

A A decline in private consumption and public investment.

B Sustained private consumption, increased public investment, and a positive global trade outlook.

C A significant slowdown in the manufacturing sector.

D Increased geopolitical tensions impacting trade.

179.

What was the IMF's previous GDP growth projection for India for FY 2026-27?

A 7.2%

B 6.8%

C 7.5%

D 6.0%

180.

What was India's revised GDP growth forecast for fiscal year 2026-27 by the IMF?

A 6.5%

B 6.8%

C 7.0%

D 7.2%

Economy & Business MCQs