Economy & Business MCQs - 2026-06-09

The Ministry of Commerce and Industry is the nodal ministry for most PLI schemes, including those aimed at boosting manufacturing in specific sectors like Green Hydrogen, electronics, pharmaceuticals, etc.

The PLI scheme for Green Hydrogen focuses on making India a global hub for manufacturing and exporting green hydrogen and its related products, thereby promoting renewable energy adoption and reducing carbon emissions.

PLI stands for Production Linked Incentive. This scheme aims to provide incentives to companies based on their incremental production of goods and services.

The Reverse Repo Rate is the interest rate at which the RBI absorbs excess liquidity from the system by lending to banks. While the question is about maintaining the repo rate, understanding related tools like the reverse repo rate is crucial for monetary policy comprehension.

Maintaining the repo rate often signifies a cautious approach by the central bank. If inflation is a concern, keeping the repo rate steady prevents further easing of monetary policy that could exacerbate inflation, while also not tightening too much to stifle moderate economic growth.

The Repo Rate is the rate at which the RBI lends money to commercial banks. By adjusting this rate, the RBI influences the cost of borrowing for banks, which in turn affects lending rates for consumers and businesses, thereby managing inflation and liquidity.