Economics • Indian EconomyMedium
What is the primary objective of the 'Production Linked Incentive' scheme introduced across key manufacturing sectors in India?
A. To provide universal basic income support to agrarian households in drought-prone districts
B. To offer financial incentives on incremental sales of products manufactured domestically to boost manufacturing competitiveness and exports✓ Correct Answer
C. To subsidize petroleum product prices for retail consumers during global crude oil price surges
D. To waive agricultural term loans for small and marginal farmers across all states
💡 Solution & Explanation
The Production Linked Incentive scheme aims to create domestic manufacturing champions by offering financial incentives on incremental sales of products manufactured in India across targeted sectors. This policy addresses infrastructure deficiencies and enhances the global cost competitiveness of domestic manufacturing. It encourages foreign and domestic firms to establish large-scale production units within the country.
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