Economics • Indian EconomyEasy
What is the primary mandate of the 'Production Linked Incentive (PLI)' scheme introduced by the Government of India?
A. To provide financial incentives based on incremental sales of products manufactured in domestic units to boost domestic manufacturing and exports.✓ Correct Answer
B. To offer direct cash transfers to households purchasing consumer durables manufactured by MSMEs.
C. To write off historical corporate debt of manufacturing firms that achieve specified export targets.
D. To provide tax holidays exclusively for foreign multinational corporations establishing IT parks.
💡 Solution & Explanation
The Production Linked Incentive scheme is designed to offer financial incentives based on incremental sales of goods manufactured within domestic production units, aiming to enhance manufacturing competitiveness and expand exports. It does not provide consumer cash transfers or corporate debt write-offs for exporters. The policy covers targeted sectors like electronics, pharmaceuticals, and automotive components.
More Economics Indian Economy questions
- What does the term 'Fiscal Deficit' signify in the Union Budget of India?
- What is the primary economic objective of promoting hydroelectric power generation in Arunachal Pradesh,…
- How do debt-to-GSDP ratios in Punjab compare with fiscal sustainability benchmarks recommended by successive…
- What is the primary focus of the 'Production Linked Incentive (PLI) Scheme' introduced by the Government of…
- How does the Goods and Services Tax structure in India function as a destination-based consumption tax?