Indian Economy - General Knowledge Questions

Correct Answer :   6.5-6.8%

* Deloitte forecasts the Indian economy to grow at 6.5-6.8% in FY25, driven by strong domestic consumption, infrastructure development, and digitisation efforts.

* While challenges such as geopolitical tensions and global liquidity constraints may pose risks, India’s resilience in services, manufacturing exports, and stable capital markets provides a solid foundation for sustained economic growth.

Correct Answer :   6.5%

India's projected real GDP growth rate for FY25 and FY26 is estimated at 6.5%, supported by robust economic fundamentals despite some recent challenges.

While Q2 FY25 GDP growth eased to 5.4% from 6.7% in Q1 FY25 due to factors like a decline in manufacturing PMI and a slowdown in private consumption, inflation trends show improvement with CPI falling to 5.5% in November. The 6.5% projection reflects optimism for sustained economic growth.

Correct Answer :   6.6%

* India Ratings and Research (Ind-Ra) has projected a growth of 6.6% for the Indian economy in financial year 2025-26 (FY26), higher than the 6.4% growth estimated in the current financial year (FY25)13.

* This growth is expected to be driven mainly by a significant increase in investments. Gross fixed capital formation (GFCF) is estimated to grow by 7.2%. 

Correct Answer :   6.5%

* The Asian Development Bank (ADB) has revised India’s GDP growth forecast for FY25 to 6.5%, down from the initial estimate of 7%.

* This revision was made due to factors such as weaker industrial output, muted public spending, and tight monetary policies.

* In addition, the slowdown in GDP growth during Q2FY25, which fell to 5.4%, has impacted these projections.

* Despite these challenges, the economy remains supported by strong agricultural output and resilience in the services sector.

Correct Answer :   5.5%

* India’s retail inflation rate dropped to 5.53% in November 2024, a significant decline from 6.21% in October 2024.

* This reduction was largely driven by a fall in vegetable prices, especially tomatoes, which had spiked in October, along with stabilizing edible oil prices.

* This moderation in inflation provided relief to households that had been affected by rising food prices.

* Core inflation, however, remained steady at 3.7%. The decline reflects the impact of lower food prices and effective inflation management strategies.

Correct Answer :   6.8%

The OECD has raised India's GDP growth forecast for FY25 to 6.8%, up from the previous estimate of 6.7%.

This revision is driven by factors such as robust public infrastructure spending, strong private investment, and a recovery in agricultural output.

The growth is expected to be sustained through FY25 and FY26, supported by investment and rural income growth.

Despite global economic uncertainties, India's economy is expected to remain resilient with nearly 7% growth, reflecting its strong internal economic drivers.

Correct Answer :   6.3%

Morgan Stanley has adjusted its forecast for India’s GDP growth for FY25 to 6.3%, down from an earlier projection of 6.7%.

* This revision follows a slowdown in Q2 FY25, where growth fell to 5.4%, the lowest since March 2023, due to weak private consumption and industrial performance.

* Despite these challenges, the services sector showed resilience, growing by 7.1%.

* The recovery in the second half of FY25 is expected to be supported by government spending, rural demand improvement, and easing financial conditions.

* This aligns with Morgan Stanley’s expectation of an average 6.6% growth during the latter half of FY25.

Correct Answer :   Rs. 37.97 Crore

The National Small Industries Corporation (NSIC) paid its highest-ever dividend of Rs. 37.97 crore to the Government of India for FY 2023-24, with revenue surging to Rs. 3,273 crore (18.16% growth) and Profit After Tax reaching Rs. 126.56 crore (14.55% growth).

The National Small Industries Corporation Limited (NSIC), a Mini Ratna enterprise under the Ministry of MSME, achieved a milestone by paying its highest-ever dividend of Rs. 37.97 crore to the Government of India for the financial year 2023-24. Chairman-cum-Managing Director, Dr. Subhransu Sekhar Acharya, presented the dividend cheque to Shri Jitan Ram Manjhi, Hon’ble Union Minister, and Sushri Shobha Karandlaje, Hon’ble MoS, Ministry of MSME, in the presence of senior ministry officials, marking a significant achievement in the corporation’s history.

NSIC reported a Revenue from Operations of Rs. 3,273 crore, up by 18.16%, and a Profit After Tax (PAT) of Rs. 126.56 crore, reflecting a 14.55% increase compared to the previous year.

Financial Achievements and Growth :

Leadership Remarks

Speaking on the occasion, Hon’ble Union Minister Shri Jitan Ram Manjhi commended NSIC for its role in empowering MSMEs and urged the organization to expand its initiatives in skill development and enterprise creation. The Hon’ble MoS, Sushri Shobha Karandlaje, echoed these sentiments, emphasizing the importance of NSIC’s contribution to MSME growth.

Historical Context and Future Outlook :

NSIC has consistently supported MSMEs through integrated services, including financial assistance, skill development, and market promotion. The record dividend for FY 2023-24 highlights the corporation’s operational efficiency and its pivotal role in driving economic growth. Looking ahead, NSIC aims to explore new avenues for enterprise creation and foster innovation, reinforcing its commitment to the MSME sector.

Correct Answer :   45%

In October 2024, UPI achieved a record high with 16.58 billion transactions worth ?23.49 lakh crore, reflecting a 45% year-on-year growth.

This significant increase underscores UPI's role in driving the shift toward a cashless economy by offering secure, fast, and seamless payment solutions.

Operational in 7 countries, UPI, launched by NPCI in 2016, continues to enhance global digital payment adoption.

Correct Answer :   5.4%

In Q2 FY 2024-25, India’s GDP growth rate slowed to 5.4%, marking the slowest growth in seven quarters.

This represents a decrease from 6.7% in the previous quarter (Q1 FY 2024-25) and an 8.1% growth in the same period last year (Q2 FY 2023-24).

The decline reflects a broad slowdown across various sectors, including manufacturing, mining, and utilities, despite improvements in services such as public administration and trade.

The slowdown is a significant indicator of the challenges faced by the Indian economy in this period.