Economy & Business MCQs - 2026-09-26

Governments typically attract FDI by creating a favorable business environment, which includes simplifying regulatory frameworks, offering tax incentives, providing infrastructure support, and ensuring policy stability.

FDI in advanced manufacturing typically brings in not just capital but also cutting-edge technology, managerial expertise, and best practices, which can significantly boost the domestic manufacturing sector's capabilities and competitiveness.

Foreign Direct Investment (FDI) refers to an investment made by a firm or individual in one country into business interests located in another country, typically involving a lasting interest and significant control.

By boosting domestic production of green technologies, such a scheme can lead to reduced dependence on imports, foster innovation, create jobs, and contribute significantly to India's energy security and climate change mitigation goals.

PLI schemes for sectors like advanced green technologies (e.g., EV manufacturing, solar PV modules) typically fall under the purview of ministries such as the Ministry of Heavy Industries, Ministry of New and Renewable Energy, or the Ministry of Commerce and Industry, depending on the specific focus.

PLI schemes are designed to incentivize domestic manufacturing in key sectors, including green technologies, by offering incentives on incremental sales from products manufactured in India, thereby boosting local production and exports.

Maintaining the repo rate suggests that the RBI perceives the current monetary policy stance as appropriate to achieve its objectives, implying a relatively stable economic outlook where existing inflation and growth risks are balanced.

The primary objective of the RBI's monetary policy, as mandated, is to maintain price stability while keeping in mind the objective of growth. Maintaining the repo rate can signal stability and support these goals.

The Monetary Policy Committee (MPC) is a six-member body responsible for fixing the benchmark interest rate (repo rate) in India. It aims to maintain price stability while keeping in mind the objective of growth.