Economics – Medium Level – GK Questions

Make in India aims to increase the manufacturing sector's contribution to India's GDP to 25% and create 100 million additional jobs in manufacturing by 2022 (target extended).

NIFTY 50 is the benchmark index of the National Stock Exchange (NSE) of India comprising 50 major stocks. SENSEX is BSE's benchmark index with 30 stocks.

Atmanirbhar Bharat (Self-Reliant India) was launched in 2020, with a Rs 20 lakh crore package covering PLI schemes, infrastructure push, and reducing import dependence.

India has been paying for Russian oil using Indian rupees and third-country currencies like UAE dirhams and Chinese yuan, reducing dependence on the US dollar after sanctions.

Mauritius is historically the top source of cumulative FDI into India due to treaty benefits, followed by Singapore, USA, Netherlands, and Japan.

The GST Council is chaired by the Union Finance Minister, with Finance Ministers of all states as members. It decides GST rates, exemptions, and procedural matters.

Budget 2025-26 made the new tax regime more attractive (zero tax up to Rs 12 lakh) but did NOT abolish the old regime — both coexist and taxpayers can choose.

India has the 3rd largest startup ecosystem globally after the US and China, with over 1 lakh DPIIT-recognised startups and 100+ unicorns.

India's CPI inflation dropped to around 3.6% in early 2025, below RBI's 4% medium-term target, influenced by falling food prices.

India engaged in diplomatic negotiations while signalling retaliatory measures, leveraging its position as a key US strategic partner amid trade tensions.

Budget 2025-26 announced that individuals with annual income up to Rs 12 lakh would pay zero income tax under the new tax regime, a major relief for the middle class.

FM Nirmala Sitharaman presented her 8th consecutive Union Budget on February 1, 2025, setting a world record for most consecutive budget presentations.

The financing scheme offers monthly EMI starting at ₹39,990 with a down payment requirement of ₹6 lakh. This affordability structure is designed to lower barriers for premium EV adoption, making electric mobility more accessible to middle and upper-middle-class consumers.

The RBI highlighted that India's growth prospects are underpinned by strong macroeconomic fundamentals, particularly robust domestic demand, relatively lower dependence on exports, and a stable policy environment. This indicates the economy's resilience stems from internal consumption strength rather than external trade reliance.

RBI data for FY26 reveals that financial institutions reported over 10,000 cases of fraud. This figure is significant for banking sector supervision and reflects the scale of fraudulent activities affecting India's financial system.

The rupee touched an intraday high of 94.97 during trading hours, indicating temporary strengthening. The currency opened at 95.77 before recovering. Intraday highs and lows are crucial for forex traders and reflect real-time demand-supply dynamics.

ICRA upgraded Vedanta's credit rating in May 2026, marking the company's highest rating in over a decade. Credit rating upgrades reflect improved financial health and debt servicing capacity, crucial indicators monitored in economic and business-related exam questions.

RBI data revealed that India's Balance of Payments stood at a deficit of $30.8 billion in 2025-26, indicating total outflows (trade and investments) exceeded inflows by this amount. This represents a significant deterioration from the previous year.

As per official statements in May 2026, India produces approximately 72,000 metric tonnes of LPG daily from domestic sources. This figure is crucial for understanding India's energy self-reliance and import dependency for cooking fuel.

Geopolitical uncertainty concerning the U.S.-Iran ceasefire arrangement contributed to market instability in May 2026. U.S.-Iran relations historically influence global crude oil prices and energy security, both critical factors for India's import-dependent economy. Such developments are regularly featured in prelims questions on international relations.