Economy · 28 Aug 2026

gross FDI net FDI PLI scheme

Which one of the following pairs is correctly matched?

AGross FDI - the net figure obtained after subtracting repatriation and disinvestment from total inflows

BProduction Linked Incentive (PLI) Scheme - incentive payouts linked to a firm's actual production output in India, not merely its investment commitment

CNet FDI - the total foreign investment inflow recorded before accounting for any outflows

DRepatriation - fresh equity investment made by a foreign company to set up new operations in India

This question is based on: Why Global Capital Chose India in the Middle of a Global Mess

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About this question

Why in news

India recorded gross FDI of $30.7 billion in April-June 2026, a 15-year high, driven largely by PLI-linked manufacturing investment, even as repatriation and disinvestment by existing foreign investors rose sharply in the same period.

Why for UPSC

UPSC often tests precise economic terminology rather than headline figures - the gross-versus-net FDI distinction and what actually defines the PLI mechanism are exactly the kind of definitional traps examiners set.

Prelims summary

Gross FDI is total inflow; Net FDI subtracts outflows like repatriation and disinvestment. The PLI scheme rewards actual production output in India, not investment commitment alone - the design link driving this quarter's manufacturing-FDI surge.

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