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. |
