Latest Indian Economy General Knowledge(GK) Questions and answers

1 .

Indian retail inflation decreased by what percentage in July 2022?

A)

6.12%

B)

6.71%

C)

7.25%

D)

7.69%

Correct Answer : 6.71%

India’s headline retail inflation fell to 6.71 per cent in July 2022, the lowest level in five months, helped by an easing in food and oil prices, as per the National Statistical Office (NSO) data released on Friday(12th Aug 2022).

The Consumer Price Index (CPI) based retail inflation stood at 7.01 per cent in June.

Although the retail inflation declined significantly in July when compared with the previous month, it remained higher than the Reserve Bank of India (RBI) upper tolerance limit of 6 per cent.

Sequentially, the CPI-based inflation eased to 0.46 per cent in July 2022 from 0.52 per cent in the previous month.

Inflation in rural India was higher than in urban areas. Headline retail inflation for rural areas declined to 6.80 per cent in July 2022 from 7.09 per cent in the previous month..

Source : The Print

2 .

What is the estimated GDP growth rate of India in FY23 as per Morgan Stanley?

A)

5.8%

B)

6.6%

C)

7%

D)

7.9%

Correct Answer : 7%

With the global economic growth slowing, Morgan Stanley in its research report has revised India's gross domestic product (GDP) growth estimates to 7.2 per cent in FY23 from 7.6 per cent and 6.4 per cent for FY24 from 6.7 per cent.

According to the report, the consumer price index (CPI) to average 6.5 per cent, whereas the earlier estimate was 7 per cent.

In its latest research report, Morgan Stanley said it sees three aspects -- slower trade growth, tighter financial conditions and changes in commodity prices.

While there are signs of moderation in exports, Morgan Stanley said the domestic demand will provide a partial offset with the support from government's supply side response and the reopening vibrancy to help the informal sector.

The report said, the moderation in commodity prices and swifter correction in domestic food prices will improve the near term inflation.

"We now expect CPI inflation to average 6.5 per cent in F23 (vs. 7 per cent earlier)," Morgan Stanley said.

On the monetary policy, the report said the policy normalisation will continue pegging the terminal repo rate at 6.5 per cent by April 2023.

Source : Zeebiz

3 .

Indian food processing industry potentially growing at a CAGR of 10-11% to reach how many billion dollars by FY27?

A)

$420-450

B)

$445-478

C)

$480-500

D)

$500-530

Correct Answer : $500-530

According to a report, the Indian food processing industry is on the verge of a transformation, with a strong agricultural background and several favourable trends supporting its progress. The industry could potentially grow at a CAGR of 10-11 percent to reach $500-530 billion by FY27.

According to the report, by addressing immediate challenges and focusing on reducing food waste, increasing food processing penetration, and increasing exports, the sector could potentially double in size to $600-650 billion in the same period.

According to McKinsey & Company, the report's Knowledge Partners, India has emerged as a global agricultural powerhouse, and it is now the world's second-largest agricultural producer, leading in the production of cereals, pulses, fruits and vegetables, sugar, and milk.

The agricultural sector not only accounts for 19% of India's GDP, but it also employs nearly half of the population. Between 2000-01 and 2020-21, the per capita agricultural GDP increased at a CAGR of 6% to $15,056 per year. Between FY 15-20, the country's food processing industry grew at an 11 percent CAGR to USD 300-320 billion. In terms of growth, it outperformed Brazil, the United States, and China in 2021, particularly in cereals..

Source : Krishi Jagran

4 .

Which Indian state received the highest FDI equity inflow in the financial year 2021-22?

A)

Delhi

B)

Haryana

C)

Karnataka

D)

Tamil Nadu

Correct Answer : Karnataka

Singapore, the USA, and Mauritius are the top three sources of Foreign Direct Investment (FDI) equity inflows to India, and these countries together accounted for around 61 per cent of the total overseas investment in the country during the financial year 2021-22, according to government data released on Thursday.

Singapore is the biggest source of FDI equity inflow into India, accounting for 27.01 per cent of the total inflow. With 17.94 per cent of the total FDI equity inflow, United States of America is the second biggest source.

The top 5 sectors receiving the highest FDI Equity Inflow during FY 2021-22 are Computer Software & Hardware (24.60 per cent), Services Sector (Finance, Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (12.13 per cent), Automobile Industry (11.89 per cent), Trading 7.72 per cent and Construction (Infrastructure) Activities (5.52 per cent).

* The top 5 States receiving the highest FDI Equity Inflow during FY 2021-22 are Karnataka (37.55 per cent), Maharashtra (26.26 per cent), Delhi (13.93 per cent), Tamil Nadu (5.10 per cent) and Haryana (4.76 per cent).

During FY 2021-22 FDI has been reported from 101 countries, whereas, it was reported from 97 countries during the previous FY 2020-21..

Source : Theprint

5 .

MF cut India's economic growth forecast from 80 bps to what percentage?

A)

7.4%

B)

7.8%

C)

8.1%

D)

8.5%

Correct Answer : 7.4%

The International Monetary Fund (IMF) on Tuesday(26th July 2022) slashed India’s growth forecast for 2022-23 (FY23) by 80 basis points to 7.4 per cent, citing less favourable external conditions and rapid policy tightening by the central bank.

In its update to the April World Economic Outlook, the IMF said that though a global recession in 2022 was ruled out with a growth estimate of 3.2 per cent, the balance of risks was squarely to the downside, driven by a wide range of factors that could adversely affect the global economic performance.

“The risk of recession is particularly prominent in 2023, when in several economies growth is expected to bottom out, household savings accumulated during the pandemic will have declined, and even small shocks could cause economies to stall.

For example, according to the latest forecasts, the United States will have real GDP growth of only 0.6 per cent in the fourth quarter of 2023 on a year-over-year basis, which will make it increasingly challenging to avoid a recession,” it said..

Source : Business Standard

6 .

According to BIRAC India's 2022 report, India's bioeconomy is likely to reach how many billions by 2030?

A)

USD 250 billion

B)

USD 300 billion

C)

USD 350 billion

D)

USD 400 billion

Correct Answer : USD 300 billion

India's bioeconomy is likely to touch USD 150 billion by 2025 and over USD 300 billion by 2030, a report said on Tuesday(19th July 2022).

The India BioEconomy Report 2022, based on the data on biotech sector's contribution to the economy, has been brought out by the Biotechnology Industry Research Assistance Council (BIRAC).

The report said the country's bioeconomy has reached over USD 80 billion in 2021, registering a 14.1 per cent growth over USD 70.2 billion in 2020.

It said that India generated USD 219 million of bioeconomy daily, adding USD 80.12 billion in 2021.

On an average, at least three biotech startups were incorporated every day in 2021 (a total of 1,128 biotech startups set up in 2021) and the industry crossed USD 1 billion in research and development spending. "A trebling within a year from USD 320 million to USD 1.02 billion," it added..

Source : Business Standard

7 .

According to the latest FICCI survey, how much will the Indian economy expand in FY 2022-23?

A)

6.3%

B)

7%

C)

7.8%

D)

8.4%

Correct Answer : 7%

The Indian economy is expected to expand 7% in fiscal 2022/23, slower than a previous estimate of 7.4% and the central bank's 7.2% projection, according to a survey by India's leading industry body.

The Federation of Indian Chambers of Commerce and Industry's (FICCI) quarterly survey, released on Thursday(21st July 2022), said the war in Ukraine is likely to keep inflation high and dent consumer demand.

"CPI is anticipated to remain above the RBI's tolerance band till the third quarter of FY2022-23 and may come within the tolerance level only after the fourth quarter," the FICCI said in a press statement.

Annual consumer inflation has remained above the RBI's 2%-6% tolerance band for six straight months to June, prompting economists in the survey to predict the RBI will hike the repo rate further to 5.65% by the end of the fiscal year in March 2023..

Source : Economic Times

8 .

India's wholesale inflation declined marginally to what percentage in June 2022?

A)

12.68%

B)

13.25%

C)

14.32%

D)

15.18%

Correct Answer : 15.18%

The annual rate of inflation based on All-India Wholesale Price Index (WPI) number is 15.18% (Provisional) for the month of June, 2022 (over June, 2021).

This is marginally lower than the WPI number of 15.88% in May, 2022, The high rate of inflation in June, 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year..

Source : PIB

9 .

Nomura cuts 2023 India GDP forecast to how much percent amid recession fears?

A)

4.1%

B)

4.3%

C)

4.7%

D)

5.1%

Correct Answer : 4.7%

Nomura has cut its 2023 forecast for economic growth in India, as measured by the gross domestic product (GDP), to 4.7 percent from its earlier projection of 5.4 per cent amid recession fears and rising interest rates.

"Exports have started to struggle, while elevated imports are pushing up monthly trade deficits to record highs. Higher inflation, monetary policy tightening, dormant private capex growth, the power crunch and the global growth slowdown pose medium-term headwinds.

Consequently, we lowered our 2023 GDP growth projection from 5.4 per cent to 4.7 per cent," wrote Sonal Varma, chief economist for India and Asia ex-Japan at Nomura in a recent co-authored note with Aurodeep Nandi..

Source : Business Standard

10 .

India's retail inflation eases to_____percent in June 2022.

A)

7.01

B)

7.56

C)

7.84

D)

8.15

Correct Answer : 7.01

Retail inflation, based on the consumer price index (CPI), eased to 7.01 percent in June 2022 compared to 7.04 percent in preceding month. Ministry of Statistics and Programme Implementation said, inflation eased marginally mainly due to easing prices in "Food & Beverages" section.

In June 2022, inflation in the food basket came at 7.56 percent, compared to 7.84 percent in May this year. The inflation figure in vegetables eased to 17.37 percent during the reported month from 18.26 percent in May 2022.

Surging global commodity prices due to the Russia-Ukraine war and high crude oil prices have kept inflation above RBI's six percent upper tolerance range.

The government has mandated the central bank to maintain retail inflation at four percent with a margin of two percent on either side for a five-year period ending March 2026..

Source : News on Air

Indian Economy - General Knowledge Questions