India Economic Current Affairs MCQs: GDP, RBI, Industry Trends

1.

A strong manufacturing sector typically contributes to which of the following in an economy?

A Increased reliance on imports

B Job creation and economic diversification

C Decline in foreign investment

D Reduced technological advancement

2.

Which of the following indices is commonly used to measure the performance of the manufacturing sector and industrial output in India?

A Consumer Price Index (CPI)

B Wholesale Price Index (WPI)

C Index of Industrial Production (IIP)

D Purchasing Managers' Index (PMI)

3.

What is the direct consequence of strong momentum in the manufacturing sector, as stated in the topic?

A Decline in agricultural output

B Boost in industrial output

C Increase in service sector contribution

D Reduction in exports

4.

Why does the RBI maintain vigilance on inflation during periods of economic expansion?

A Economic expansion always leads to deflation

B Rapid growth can lead to demand-pull inflation

C Inflation is irrelevant during expansion

D To encourage exports

5.

Which of the following is a key monetary policy tool used by the RBI to control inflation?

A Fiscal policy

B Repo rate

C Export subsidies

D Direct tax reforms

6.

What is the primary concern of the RBI amidst economic expansion, as highlighted in the topic?

A Fiscal deficit

B Inflation

C Exchange rate volatility

D Unemployment

7.

Which of the following factors is crucial for sustaining strong domestic demand in the long run?

A High inflation

B Stable employment and income growth

C Currency depreciation

D Increased import tariffs

8.

A robust domestic demand typically indicates a healthy growth in which of the following?

A Consumer spending

B Government debt

C Trade deficit

D Unemployment rate

9.

What is identified as the primary driver for India's strong GDP growth, as per the topic?

A Domestic demand

B Exports

C Foreign Direct Investment

D Government spending

Economy & Business MCQs - 2026-05-13