Economy & Business MCQs - 2026-10-12

While growth was projected to be strong, sustained high inflation was identified as a potential headwind that could dampen consumer spending and thus moderate GDP growth in Q2 FY27.

The services sector, encompassing IT, financial services, and trade, was expected to be a primary driver of India's GDP growth in Q2 FY27, reflecting its resilience and expansion.

Forecasts released in late 2026 projected India's GDP growth for the second quarter of FY27 to be around 6.2%, driven by robust domestic demand and improved manufacturing output.

In October 2026, the RBI's monetary policy stance was characterized by a withdrawal of accommodation, signaling a commitment to bring inflation within the target band.

The RBI's primary mandate is to ensure price stability and facilitate economic growth. In October 2026, the focus remained on balancing these objectives, particularly managing inflation expectations.

As of October 2026, the RBI's Monetary Policy Committee (MPC) has maintained the repo rate at its current level in the latest review, prioritizing price stability.