Corporate sector must relieve govt. of capex heavy lifting: RBI.

Syllabus: GS-III

Subject: Economy

Topic: Investment models

Issue: Investments

Context: An article published in the Reserve Bank of India’s (RBI) bulletin highlights several key points regarding the current economic scenario in India.

Key Takeaways:

  • The investment cycle is gaining momentum, supported by sustained government capex, increasing capacity utilization, and policy support from schemes like the Production Linked Incentive (PLI)
Prelims Connect:


Production Linked Incentive:

·      PLI scheme is a government initiative in India that offers financial incentives to companies based on their incremental sales of products manufactured in India.

·      Launched in March 2020, the scheme initially targeted three industries later extended to 14 sectors

·      In the PLI scheme, Domestic and Foreign companies receive financial rewards for manufacturing in India, based on a percentage of their revenue over up to five years

A capital expenditure, or CapEx, is the purchase of long-term physical or fixed assets used in a business’s operations.


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