Economy & Business MCQs

The digital credit platform has been launched by the government specifically to streamline and enhance credit access for Micro, Small and Medium Enterprises (MSMEs) in India.

The Monetary Policy Committee (MPC) of the Reserve Bank of India is empowered by the RBI Act, 1934, to determine the policy repo rate required to meet the inflation target.

The RBI's mandate is to maintain price stability while keeping in mind the objective of growth. Maintaining the repo rate at 6.5% aims to balance inflation control with adequate liquidity for economic activity.

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

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.