UPSC Prelims Practice Questions — India’s economic growth to slow to 6.8% in FY27: Ind-Ra

Q1. By how many percentage points does India Ratings and Research's August 2026 real GDP growth forecast for FY27 fall short of the National Statistical Office's provisional estimate of growth for FY26?

  • A. About 0.1 percentage point, a difference of one-tenth of a percentage point
  • B. About 0.5 percentage point, a difference of half a percentage point
  • C. About 0.8 percentage point, a shortfall of eight-tenths of a percentage point
  • D. About 1.3 percentage points, a shortfall of over one percentage point

Q2. With reference to India Ratings and Research's August 2026 outlook for FY27, consider the following statements: 1. Its August 2026 growth forecast for FY27 is higher than the forecast it had made for the same fiscal year in May 2026. 2. Its FY27 growth forecast is placed above the National Statistical Office's provisional estimate of growth for FY26. 3. The agency attributed the revision entirely to a stronger monsoon, ruling out any role for global crude oil prices. Which of the statements given above is/are correct?

  1. Its August 2026 growth forecast for FY27 is higher than the forecast it had made for the same fiscal year in May 2026.
  2. Its FY27 growth forecast is placed above the National Statistical Office's provisional estimate of growth for FY26.
  3. The agency attributed the revision entirely to a stronger monsoon, ruling out any role for global crude oil prices.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The 'policy repo rate', the instrument left unchanged by the Monetary Policy Committee alongside its revised FY27 projections, is best defined as which one of the following?

  • A. The rate at which the Reserve Bank absorbs surplus liquidity from banks against collateral of government securities
  • B. The rate at which the Reserve Bank provides overnight liquidity to banks against collateral of government securities
  • C. The rate at which banks lend uncollateralised overnight funds to one another in the inter-bank market
  • D. The rate at which the Reserve Bank lends to banks against their holdings of statutory liquidity ratio securities beyond the limit

Q4. The provisional estimate of 7.6% growth for FY26, against which Ind-Ra benchmarked its FY27 projection, is compiled and released by which one of the following?

  • A. The Department of Economic Affairs, functioning under the Ministry of Finance
  • B. The Department of Economic and Policy Research of the Reserve Bank of India
  • C. The Economic Advisory Council to the Prime Minister, serving in an advisory capacity
  • D. The National Statistical Office, under the Ministry of Statistics and Programme Implementation

Q5. With reference to India Ratings and Research (Ind-Ra), consider the following: 1. It is a wholly owned subsidiary of the Fitch Group. 2. It carried the name Fitch Ratings India Private Limited before its present name. 3. It holds a registration as a credit rating agency with the Securities and Exchange Board of India. 4. It is a statutory body created by an Act of Parliament and is the only agency permitted by the Reserve Bank to rate bank exposures for capital adequacy purposes. Which of the above is/are NOT correct?

  1. It is a wholly owned subsidiary of the Fitch Group.
  2. It carried the name Fitch Ratings India Private Limited before its present name.
  3. It holds a registration as a credit rating agency with the Securities and Exchange Board of India.
  4. It is a statutory body created by an Act of Parliament and is the only agency permitted by the Reserve Bank to rate bank exposures for capital adequacy purposes.
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q6. Ind-Ra belongs to the earliest cohort of entities registered with SEBI as credit rating agencies. Among the credit rating agencies on SEBI's register as on August 2026, how many carry registration numbers bearing the year 1999?

  • A. Two
  • B. Three
  • C. Four
  • D. Six

Q7. As on August 2026, how many entities held registration with the Securities and Exchange Board of India as credit rating agencies?

  • A. Four
  • B. Six
  • C. Nine
  • D. Twelve

Q8. With reference to the Monetary Policy Committee constituted under the Reserve Bank of India Act, 1934, consider the following office-holders: 1. The Governor of the Reserve Bank of India, who chairs the Committee 2. The Deputy Governor of the Reserve Bank in charge of monetary policy 3. An officer of the Reserve Bank nominated by its Central Board 4. The Secretary, Department of Economic Affairs, Ministry of Finance Which of the above is/are correctly identified as members of the Committee?

  1. The Governor of the Reserve Bank of India, who chairs the Committee
  2. The Deputy Governor of the Reserve Bank in charge of monetary policy
  3. An officer of the Reserve Bank nominated by its Central Board
  4. The Secretary, Department of Economic Affairs, Ministry of Finance
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q9. Comparing the Monetary Policy Committee's August 2026 resolution with its preceding round for the same fiscal year, consider the following statements: 1. The Committee placed its FY27 real GDP growth projection above the level it had projected in the earlier round. 2. The Committee lowered its FY27 headline CPI inflation projection relative to the earlier round. 3. The Committee shifted its policy stance from neutral to accommodative while leaving the policy rate untouched. Which of the statements given above is/are correct?

  1. The Committee placed its FY27 real GDP growth projection above the level it had projected in the earlier round.
  2. The Committee lowered its FY27 headline CPI inflation projection relative to the earlier round.
  3. The Committee shifted its policy stance from neutral to accommodative while leaving the policy rate untouched.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. Ind-Ra flagged a likely El Niño as a downside risk to FY27 growth. In India, the monitoring of El Niño-Southern Oscillation conditions and the issue of the seasonal southwest monsoon forecast is the responsibility of which one of the following?

  • A. The Central Water Commission, functioning under the Ministry of Jal Shakti
  • B. The National Remote Sensing Centre, functioning under the Department of Space
  • C. The India Meteorological Department, functioning under the Ministry of Earth Sciences
  • D. The Indian Council of Agricultural Research, under the Ministry of Agriculture and Farmers' Welfare

Q11. Consider the following pairs of forecasting institution and its projection for India's real GDP growth in 2026-27, as released during 2026: 1. Reserve Bank of India — 6.7 per cent 2. World Bank — 6.6 per cent 3. Asian Development Bank — 6.6 per cent 4. India Ratings and Research — 6.4 per cent Which of the above is/are correctly identified?

  1. Reserve Bank of India — 6.7 per cent
  2. World Bank — 6.6 per cent
  3. Asian Development Bank — 6.6 per cent
  4. India Ratings and Research — 6.4 per cent
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3
  • D. 1, 3 and 4