Economy & Business Current Affairs - 2026-09-11

Background: The Reserve Bank of India (RBI) periodically reviews its monetary policy to balance economic growth and inflation. Current Context: In the September 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. Impact: By maintaining the status quo, the RBI aims to anchor inflation expectations while ensuring that credit remains accessible for productive sectors, thereby supporting the ongoing momentum of India's GDP growth in the current fiscal year.

Background: The Production Linked Incentive (PLI) scheme was launched to boost domestic manufacturing and reduce import dependency. Current Context: On September 10, 2026, the Ministry of Electronics and IT announced additional incentives under the PLI scheme specifically for semiconductor packaging and testing units. This move is designed to attract global players to set up advanced facilities in India. Impact: This expansion is expected to create a robust semiconductor supply chain, generate high-skilled employment opportunities, and position India as a global hub for electronics manufacturing and chip design by 2030.