Economy & Business MCQs

The RBI's October 2026 review projected a GDP growth rate of 7.5% for the fiscal year 2026-27, citing robust domestic demand and improved global economic outlook.

The Monetary Policy Committee (MPC) is responsible for determining the policy repo rate required to maintain the inflation target while keeping in mind the objective of sustainable growth.

As per the RBI's Monetary Policy Statement released in October 2026, the repo rate was kept unchanged at 6.50% to balance inflation and growth objectives.

A growing manufacturing sector typically leads to job creation, which in turn can help reduce the unemployment rate. It can also boost exports, potentially improving the current account balance.

The Purchasing Managers' Index (PMI) for Manufacturing is a key economic indicator that provides a timely monthly estimate of the health of the manufacturing sector, based on surveys of purchasing managers.

The 'Make in India' initiative, launched earlier, has been a cornerstone in driving the manufacturing sector's growth by encouraging foreign direct investment, fostering innovation, and improving the ease of doing business.

Stricter regulations often translate to increased compliance burdens and costs for fund managers. This can lead to a more risk-averse investment strategy and potentially a consolidation within the AIF industry.

Category I AIFs, as defined by SEBI, include venture capital funds, which primarily invest in startups and early-stage companies, as well as social impact funds and infrastructure funds.

The significant expansion and evolving nature of AIFs, which often involve complex investment strategies and leverage, necessitate closer regulatory oversight to mitigate potential risks to investors and the broader financial system.

The RBI's framework emphasizes data privacy and security, prohibiting digital lenders from collecting personal data that is not essential for the loan assessment process, thereby protecting borrowers from potential misuse of their information.