MCQ Test: Indian Economy Shows Resilience with Export Surge, GDP Growth, and Easing Inflation in December 2025

1. What was the primary factor contributing to the significant narrowing of India's merchandise trade deficit in November 2025?

A) A substantial increase in crude oil prices. B) A robust rebound in exports coupled with a dip in imports. C) Increased foreign direct investment inflows. D) Reduced government spending on infrastructure projects.

2. Which two major categories primarily drove the increase in India's merchandise exports in November 2025?

A) Agricultural products and textiles. B) Pharmaceuticals and chemicals. C) Engineering and electronics goods. D) Gems and jewelry.

3. What government initiative is reportedly being finalized to further mitigate the impact of tariffs on Indian goods and boost exports?

A) A new Free Trade Agreement with the US. B) A Production Linked Incentive (PLI) scheme expansion. C) A Rs 25,060 crore export promotion mission. D) Increased subsidies for domestic manufacturing.

4. According to Crisil's revised forecast, what is the projected GDP growth rate for the Indian economy for the fiscal year 2025-26?

A) 6.5% B) 7.0% C) 7.3% D) 8.0%

5. Which of the following factors is NOT cited as a key driver for India's sustained GDP growth?

A) Domestic consumption. B) Benign inflation. C) Increased government borrowing. D) Income tax relief.

6. What was the primary reason for the decline in India's retail inflation to 0.7% in November 2025?

A) A significant reduction in fuel prices. B) A contraction in food prices. C) Increased government subsidies on essential goods. D) A fall in global commodity prices.

7. In response to favorable inflation trends, what action did the RBI's Monetary Policy Committee take in December 2025, bringing the repo rate to 5.25%?

A) Increased the repo rate by 25 basis points. B) Maintained the repo rate unchanged. C) Cut interest rates by 25 basis points. D) Introduced new liquidity measures.

8. The Indian rupee's depreciation to a record low was primarily attributed to which two factors?

A) Rising crude oil prices and increased domestic demand. B) Uncertainty surrounding an India-US trade deal and continuous foreign fund outflows. C) High inflation and a widening current account deficit. D) Increased government spending and a decline in exports.

9. What are the main objectives of the Production Linked Incentive (PLI) scheme in India?

A) To reduce imports and promote agricultural exports. B) To strengthen the manufacturing base and enhance export competitiveness. C) To provide direct financial assistance to small and medium enterprises. D) To stabilize the financial markets and control inflation.

10. The Production Linked Incentive (PLI) scheme aligns with which two national priorities mentioned in the text?

A) Digital India and Skill India. B) Swachh Bharat and Beti Bachao Beti Padhao. C) Make in India and Atmanirbhar Bharat. D) Startup India and Stand-Up India.

11. What was the approximate Gross Non-Performing Assets (GNPA) percentage for Public Sector Banks (PSBs) in March 2025, indicating improved health?

A) 9.11% B) 0.52% C) 2.58% D) 4.7%

12. To streamline banking operations, the RBI relaxed norms for which types of accounts?

A) Savings and Fixed Deposit accounts. B) Cash Credit, Current, and Overdraft accounts. C) International Remittance accounts. D) Demat and Trading accounts.

13. What was India's unemployment rate in November, marking an eight-month low?

A) 2.8% B) 4.7% C) 5.25% D) 7.0%

14. Which of the following commodities primarily contributed to the dip in India's imports in November 2025?

A) Electronics, machinery, and textiles. B) Gold, crude oil, coal, and coke. C) Pharmaceuticals, chemicals, and plastics. D) Iron ore, copper, and aluminum.

15. What was the total quantum of interest rate cuts by the RBI in 2025, making it the most significant since 2019?

A) 25 basis points. B) 50 basis points. C) 100 basis points. D) 125 basis points.

ALL TN Comp Exams Prep

Indian Economy Shows Resilience with Export Surge, GDP Growth, and Easing Inflation in December 2025

Your Score: 0 / 0

1. What was the primary factor contributing to the significant narrowing of India's merchandise trade deficit in November 2025?

2. Which two major categories primarily drove the increase in India's merchandise exports in November 2025?

3. What government initiative is reportedly being finalized to further mitigate the impact of tariffs on Indian goods and boost exports?

4. According to Crisil's revised forecast, what is the projected GDP growth rate for the Indian economy for the fiscal year 2025-26?

5. Which of the following factors is NOT cited as a key driver for India's sustained GDP growth?

6. What was the primary reason for the decline in India's retail inflation to 0.7% in November 2025?

7. In response to favorable inflation trends, what action did the RBI's Monetary Policy Committee take in December 2025, bringing the repo rate to 5.25%?

8. The Indian rupee's depreciation to a record low was primarily attributed to which two factors?

9. What are the main objectives of the Production Linked Incentive (PLI) scheme in India?

10. The Production Linked Incentive (PLI) scheme aligns with which two national priorities mentioned in the text?

11. What was the approximate Gross Non-Performing Assets (GNPA) percentage for Public Sector Banks (PSBs) in March 2025, indicating improved health?

12. To streamline banking operations, the RBI relaxed norms for which types of accounts?

13. What was India's unemployment rate in November, marking an eight-month low?

14. Which of the following commodities primarily contributed to the dip in India's imports in November 2025?

15. What was the total quantum of interest rate cuts by the RBI in 2025, making it the most significant since 2019?

Indian Economy Shows Resilience with Export Surge, GDP Growth, and Easing Inflation in December 2025

Your Score: 0 / 0

1. What was the primary factor contributing to the significant narrowing of India's merchandise trade deficit in November 2025?

2. Which two major categories primarily drove the increase in India's merchandise exports in November 2025?

3. What government initiative is reportedly being finalized to further mitigate the impact of tariffs on Indian goods and boost exports?

4. According to Crisil's revised forecast, what is the projected GDP growth rate for the Indian economy for the fiscal year 2025-26?

5. Which of the following factors is NOT cited as a key driver for India's sustained GDP growth?

6. What was the primary reason for the decline in India's retail inflation to 0.7% in November 2025?

7. In response to favorable inflation trends, what action did the RBI's Monetary Policy Committee take in December 2025, bringing the repo rate to 5.25%?

8. The Indian rupee's depreciation to a record low was primarily attributed to which two factors?

9. What are the main objectives of the Production Linked Incentive (PLI) scheme in India?

10. The Production Linked Incentive (PLI) scheme aligns with which two national priorities mentioned in the text?

11. What was the approximate Gross Non-Performing Assets (GNPA) percentage for Public Sector Banks (PSBs) in March 2025, indicating improved health?

12. To streamline banking operations, the RBI relaxed norms for which types of accounts?

13. What was India's unemployment rate in November, marking an eight-month low?

14. Which of the following commodities primarily contributed to the dip in India's imports in November 2025?

15. What was the total quantum of interest rate cuts by the RBI in 2025, making it the most significant since 2019?

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