Economy & Business MCQs

A robust manufacturing sector typically leads to higher industrial output and consequently, more job opportunities, contributing to economic growth.

The Purchasing Managers' Index (PMI) is a widely used economic indicator that provides insights into the health of the manufacturing and services sectors.

The provided topic states that India's manufacturing sector recorded strong growth in Q3 2026.

Keeping the repo rate stable, especially at a moderate level, often signifies the RBI's objective to balance inflation control with the need to support economic growth.

The Monetary Policy Committee (MPC) of the Reserve Bank of India is mandated to determine the policy repo rate required to meet the inflation target.

The RBI's Monetary Policy Committee (MPC) in its October 2026 review decided to keep the policy repo rate unchanged at 6.50%.

The 'Make in India' initiative and Production Linked Incentive (PLI) schemes are specifically designed to encourage domestic manufacturing, reduce import dependence, and boost exports across various sectors, thereby strengthening India's industrial base.

Geopolitical tensions, such as ongoing conflicts or trade wars, can lead to significant disruptions in global supply chains and cause volatility in commodity prices, particularly crude oil, which can negatively impact India's import bill and inflation.

India's economic resilience is largely attributed to strong domestic demand, supported by a growing middle class and government-led capital expenditure on infrastructure projects, which creates jobs and boosts economic activity.

RBI guidelines mandate that REs must ensure LSPs do not store personal data of borrowers except for some basic minimal data. Furthermore, RBI issued specific guidelines in June 2023 allowing First Loss Default Guarantee (FLDG) arrangements under certain conditions, making them permissible as of 2026.