Economy & Business Current Affairs - 2026-10-07

Background: The Reserve Bank of India (RBI) periodically reviews its monetary policy to balance growth and inflation. Current Context: In the October 2026 Monetary Policy Committee (MPC) meeting, the RBI decided to keep the repo rate unchanged at 6.5%. This decision reflects the central bank's cautious approach toward persistent food inflation and global economic uncertainties. Impact: This stability ensures that lending rates for home and auto loans remain steady, providing predictability for consumers and businesses while aiming to anchor inflation expectations within the target band of 4% (+/- 2%).

Background: The Production Linked Incentive (PLI) scheme was launched to boost domestic manufacturing and reduce import dependency. Current Context: On October 7, 2026, the Ministry of Commerce and Industry announced an expansion of the PLI scheme specifically targeting advanced green energy components, including high-efficiency solar modules and battery storage systems. This move aligns with India's Net Zero 2070 goals. Impact: The expansion is expected to attract significant private investment, create thousands of jobs in the renewable energy sector, and position India as a global hub for sustainable technology manufacturing.