Economics • Indian EconomyMedium
What is the primary purpose of the 'Production Linked Incentive' (PLI) scheme introduced by the Government of India across critical manufacturing sectors?
A. Providing financial subsidies based on incremental sales of manufactured goods produced in domestic plants to boost industrial competitiveness✓ Correct Answer
B. Offering direct income support transfers to agricultural landowners based on seasonal crop acreage
C. Waiving corporate income taxes permanently for multinational technology firms operating in special economic zones
D. Covering health insurance premium costs for unorganized sector workers and migrant laborers
💡 Solution & Explanation
The production linked incentive scheme provides financial incentives based on incremental sales of products manufactured in domestic production units, aiming to boost domestic manufacturing capacity, attract investments, and enhance export competitiveness. It targets key sectors like electronics, pharmaceuticals, and automobiles. Unlike general tax holidays, incentives are directly tied to actual production performance. This initiative supports the broader goal of building self-reliance in strategic industrial domains.
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