Economics • Indian EconomyEasy
What is the primary purpose of the 'Production Linked Incentive (PLI)' scheme introduced by the Government of India?
A. To provide financial incentives to domestic and foreign companies to boost domestic manufacturing capacity and exports✓ Correct Answer
B. To offer direct cash transfers to agricultural laborers during drought years
C. To subsidize the interest rates on housing loans for first-time home buyers
D. To fund research and development initiatives in public sector universities
💡 Solution & Explanation
The Production Linked Incentive scheme provides financial grants and tax benefits to manufacturers to boost domestic production capacity, attract foreign investment, and drive export competitiveness. Alternative options describe agricultural subsidy programs or welfare schemes rather than industrial policy initiatives. Industrial policy measures and economic development schemes are vital for civil services preparation.
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