Economy & Business MCQs

NEEDS_REVIEW

NEEDS_REVIEW

NEEDS_REVIEW

NEEDS_REVIEW

The 'Make in India' initiative, launched in 2014, is a flagship program designed to encourage companies to manufacture their products in India and incentivize investment into the manufacturing sector.

Strong manufacturing output growth typically leads to increased production, which in turn requires more labor, thus boosting employment opportunities. It also generally contributes to higher exports, FDI, and tax revenues.

The Index of Industrial Production (IIP) measures the growth rates in different industry groups of the economy over a specified period. It is compiled and published monthly by the National Statistical Office (NSO). While PMI is also used, IIP is the official measure of industrial output.

When the repo rate is maintained, it signals stability in the central bank's monetary policy stance. This generally leads to commercial banks keeping their lending rates stable or making only marginal adjustments, as their cost of borrowing from the RBI remains unchanged.

The Monetary Policy Committee (MPC) is a six-member committee, headed by the RBI Governor, that is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to achieve the inflation target.

The repo rate is a key monetary policy tool used by the RBI to manage liquidity in the banking system and influence inflation. Maintaining it amidst stable inflation suggests a focus on price stability.