MCQs 2026

Governments often use financial incentives like PLI schemes and subsidies to attract investment and encourage domestic manufacturing in capital-intensive and strategic sectors like semiconductors.

The 'Make in India' and 'Atmanirbhar Bharat' initiatives, including the semiconductor mission, aim to build domestic capabilities and reduce reliance on imports for critical technologies like semiconductors.

A significant increase in exports positively impacts the current account balance by increasing foreign exchange inflows, potentially reducing the current account deficit.

A surge in exports is typically driven by robust global demand, favorable trade policies, and competitive pricing, often linked to positive global economic conditions.

Historically, engineering goods, petroleum products (refined), and textiles are major contributors to India's merchandise export basket and often drive significant surges.

Concerns regarding the valuation of illiquid assets held by AIFs and potential conflicts of interest for fund managers are common areas addressed by regulatory enhancements.

Stricter regulations often involve reassessing minimum investment thresholds to ensure that only suitable investors participate in AIFs, thereby enhancing investor protection.

The proposed stricter regulations aim to strengthen investor protection, particularly for sophisticated investors, and ensure greater transparency and accountability within the AIF industry.

The RBI guidelines emphasize that all lending activities must be performed by the Regulated Entity (RE) or through outsourcing arrangements where the RE retains full control and oversight, prohibiting outright outsourcing of credit risk.

The guidelines stipulate that Regulated Entities (REs) are responsible for conducting due diligence on Digital Lending Apps (DLAs) and ensuring their compliance with regulatory norms.