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India's Economic Pulse: RBI Cuts Rates Amidst Growth Debates, Rupee Pressure, and Evolving Trade Dynamics

December 09, 2025

The Reserve Bank of India (RBI) has implemented a 25 basis point repo rate cut, bringing it to 5.25%, signaling a shift towards a growth-supportive monetary policy. This decision comes as India reports robust Q2-FY26 GDP growth of 8.2% and low inflation. However, former RBI Governor Raghuram Rajan has voiced caution, questioning the sustainability of current growth rates and highlighting challenges in job creation. The Indian Rupee continues to face depreciation pressures due influenced by global factors and capital outflows. On the international front, India is actively engaging with Russia to address trade barriers and with the European Union to advance Free Trade Agreement discussions. Domestically, Andhra Pradesh has shown exceptional economic performance, surpassing the national growth average.

Question 1 of 12

What was the primary objective behind the Reserve Bank of India's decision to reduce the repo rate on December 8, 2025?

A) To combat high inflation B) To support economic growth C) To strengthen the Indian Rupee D) To increase foreign exchange reserves

GK Ocean

India's Economic Pulse: RBI Cuts Rates Amidst Growth Debates, Rupee Pressure, and Evolving Trade Dynamics

Your Score: 0 / 0

What was the primary objective behind the Reserve Bank of India's decision to reduce the repo rate on December 8, 2025?

Under Governor Sanjay Malhotra, the Reserve Bank of India's approach has been characterized as transitioning from what to what?

Former RBI Governor Raghuram Rajan suggested that for India to achieve developed-country status by 2047, what sustained growth rate is essential?

What concern did Raghuram Rajan express regarding India's reported GDP numbers?

Which of the following factors was NOT cited as a reason for the Indian Rupee's depreciation against the US Dollar?

Following President Vladimir Putin's visit, Russia committed to addressing India's concerns regarding non-tariff barriers in which of the following sectors?

Besides the repo rate reduction, what major liquidity-boosting measures did the RBI unveil?

What was India's Gross Domestic Product (GDP) growth rate in Q2-FY26, which influenced the RBI's monetary policy decision?

What was the headline Consumer Price Index (CPI) inflation in October, which provided "ample policy space" for monetary easing by the RBI?

Which Indian state demonstrated a Gross State Domestic Product (GSDP) growth significantly outperforming the national average in Q2-FY26, with a growth rate of 11.2%?

Which international rating agency revised India's FY26 growth forecast upwards to 7.4% from 6.9%?

Which types of platforms have committed to contributing to a welfare fund for gig workers, as mentioned in the news?

India's Economic Pulse: RBI Cuts Rates Amidst Growth Debates, Rupee Pressure, and Evolving Trade Dynamics

Your Score: 0 / 0

What was the primary objective behind the Reserve Bank of India's decision to reduce the repo rate on December 8, 2025?

Under Governor Sanjay Malhotra, the Reserve Bank of India's approach has been characterized as transitioning from what to what?

Former RBI Governor Raghuram Rajan suggested that for India to achieve developed-country status by 2047, what sustained growth rate is essential?

What concern did Raghuram Rajan express regarding India's reported GDP numbers?

Which of the following factors was NOT cited as a reason for the Indian Rupee's depreciation against the US Dollar?

Following President Vladimir Putin's visit, Russia committed to addressing India's concerns regarding non-tariff barriers in which of the following sectors?

Besides the repo rate reduction, what major liquidity-boosting measures did the RBI unveil?

What was India's Gross Domestic Product (GDP) growth rate in Q2-FY26, which influenced the RBI's monetary policy decision?

What was the headline Consumer Price Index (CPI) inflation in October, which provided "ample policy space" for monetary easing by the RBI?

Which Indian state demonstrated a Gross State Domestic Product (GSDP) growth significantly outperforming the national average in Q2-FY26, with a growth rate of 11.2%?

Which international rating agency revised India's FY26 growth forecast upwards to 7.4% from 6.9%?

Which types of platforms have committed to contributing to a welfare fund for gig workers, as mentioned in the news?

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