Economy & Business MCQs

GDP is typically calculated using the expenditure approach: GDP = Consumption + Investment + Government Spending + (Exports - Imports). Therefore, private consumption, government expenditure, and net exports are all major components.

Sustained GDP growth momentum generally indicates economic expansion, increased production, higher income levels, and potentially improved living standards for the population.

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), is primarily responsible for compiling and releasing India's GDP data.

The projections emphasized that a sustained increase in private consumption, supported by stable employment and income growth, was a crucial element underpinning the optimistic GDP growth forecast for Q1 FY2027.

The services sector, encompassing IT, financial services, and trade, was projected to be the primary driver of India's GDP growth in Q1 FY2027, reflecting its resilience and expanding digital economy.

Various economic agencies projected India's GDP to grow at approximately 7.8% in Q1 FY2027, driven by strong domestic consumption and increased capital expenditure.

The RBI's review highlighted that persistent geopolitical tensions, leading to supply chain disruptions and volatile energy prices, posed a significant upside risk to inflation projections for 2026-27.

The Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.00% in the Mid-Year Review of 2026, balancing the need to anchor inflation expectations with the imperative to support economic activity.

The RBI's Mid-Year Monetary Policy Review for 2026 projected a GDP growth rate of 7.2% for the fiscal year 2026-27, citing robust domestic demand and improved global economic outlook.

Growth-oriented structural reforms, coupled with increased public investment in infrastructure and other productive sectors, are key fiscal policy measures that can stimulate economic activity and lead to higher-than-expected GDP growth.