Economy & Business Current Affairs - 2026-09-15

Background: The Reserve Bank of India (RBI) periodically reviews its monetary policy to balance economic growth and inflation. Current Context: In the Monetary Policy Committee (MPC) meeting held on September 15, 2026, the RBI decided to keep the repo rate unchanged at 6.5%. This decision aims to anchor inflation expectations while supporting domestic demand. Impact: This stability provides predictability for borrowers and banks, ensuring that the cost of credit remains steady, which is crucial for sustaining the current momentum in private consumption and capital expenditure across various sectors.

Background: The Production Linked Incentive (PLI) scheme was launched to boost domestic manufacturing and reduce import dependency. Current Context: On September 14, 2026, the Ministry of Electronics and IT announced an expansion of the PLI scheme specifically targeting the semiconductor packaging and assembly sector. This move includes additional financial incentives for companies setting up advanced testing and packaging units in India. Impact: This initiative is expected to attract global semiconductor giants to establish local facilities, thereby creating high-tech jobs and strengthening India's position in the global electronics supply chain.