Indian economy grew by 6.7% in the April-June quarter, which is lower than the RBI's estimate

Current Context: India's economy grew slower than the Reserve Bank of India (RBI) had projected for the April-June quarter. The actual growth rate of 6.7% was slightly below the RBI's estimate.

• Key factors contributing to this slowdown include:
• Government spending: The government's spending was lower than expected due to the recent Lok Sabha elections.
• Manufacturing: While manufacturing showed some resilience, it wasn't enough to offset the slowdown in other sectors.
• Services: The services sector, which is a significant contributor to India's economy, also saw a slight slowdown.
• Despite this, India's economy remains one of the fastest-growing major economies in the world. The RBI has maintained its full-year growth forecast of 7.2%.

Question:

1 What was the actual growth rate of India’s economy for the April-June quarter?

• A) 7.2%
• B) 7.8%
• C) 6.7%
• D) 8.2%

Answer: C) The actual growth rate of India’s economy for the April-June quarter was 6.7%, which was slightly below the Reserve Bank of India’s estimate.