Economy & Business MCQs

The services sector is expected to be a major contributor to India's GDP growth in FY27, alongside a recovering manufacturing sector.

Sustained domestic demand is identified as a primary driver for India's projected strong GDP growth in FY27.

Various financial institutions are projecting India's GDP growth for FY27 to be in the range of 6.5-7.5%.

Improved infrastructure leads to reduced transit times and costs, enhancing export competitiveness and attracting FDI, rather than increasing reliance on imports.

Increased government spending on infrastructure is expected to have a multiplier effect on the economy, creating jobs, stimulating demand for construction materials, and improving the efficiency of businesses.

The government is also encouraging private sector participation through various models like Public-Private Partnerships (PPPs) and innovative financing mechanisms.

This includes a strong emphasis on expanding the National Highways network, modernizing railway infrastructure, developing multimodal logistics parks, and enhancing port capacity.

Infrastructure development has been a cornerstone of India's economic strategy, aimed at improving connectivity, reducing logistics costs, and boosting overall productivity.

Sustained growth is crucial for achieving the government's target of becoming a developed economy by 2047.

The Reserve Bank of India (RBI) and the Ministry of Finance are closely monitoring these trends to formulate appropriate monetary and fiscal policies.