Economy & Business MCQs

The Ministry of Electronics and Information Technology (MeitY) is the nodal ministry responsible for the PLI scheme for semiconductors and electronics manufacturing in India.

The expansion of the PLI scheme for semiconductors aims to build a robust domestic ecosystem, reduce import dependence, and position India as a global hub for semiconductor manufacturing and design.

The government has actively been promoting the semiconductor ecosystem through various initiatives, including the expansion of the PLI scheme to encourage domestic manufacturing and R&D.

The Monetary Policy Committee (MPC) is the body constituted by the Central Government under Section 45ZB of the RBI Act, 1934, to regulate inflation and decide on the policy repo rate.

The RBI's mandate is to maintain price stability while keeping in mind the objective of growth. Keeping the repo rate steady at 6.5% in September 2026 indicates a focus on managing inflation without stifling economic recovery.

The RBI's Monetary Policy Committee (MPC) in its September 2026 review kept the policy repo rate unchanged at 6.50%.

Steady growth in the IIP signifies that factories are producing more goods, which is a direct reflection of increased industrial activity and often correlates with higher demand for manufactured products and overall economic expansion.

The Index of Industrial Production (IIP) is compiled and released by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation.

The Index of Industrial Production (IIP) primarily measures the changes in the volume of production in the industrial sector. The manufacturing sector has the largest weightage in the IIP and thus contributes the most to its overall growth.

The repo rate is the rate at which the RBI lends money to commercial banks. If the RBI maintains the repo rate, the cost of borrowing for these banks from the RBI will remain at the existing level.