Economics • Indian EconomyMedium
What is the primary purpose of the Production Linked Incentive scheme introduced by the Government of India across critical manufacturing sectors?
A. To offer financial incentives on incremental sales of manufactured goods to boost domestic production capacity and global competitiveness✓ Correct Answer
B. To provide universal basic income guarantees to workers displaced by automated assembly lines
C. To subsidize raw material imports for luxury goods manufacturers in special economic zones
D. To waive corporate income taxes permanently for all multinational corporations operating in India
💡 Solution & Explanation
The Production Linked Incentive scheme provides financial incentives based on incremental sales of products manufactured in domestic plants, encouraging investments in mobile manufacturing, pharmaceuticals, and green energy. It seeks to make domestic manufacturing globally competitive and integrate the country into global value chains. Participating companies must meet prescribed threshold investment and production criteria.
More Economics Indian Economy questions
- What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act in India?
- What is the primary function of 'NITI Aayog' (National Institution for Transforming India)?
- What is the primary focus of the 'Production Linked Incentive (PLI) Scheme 2.0' for IT Hardware introduced by…
- Which of the following taxes is levied by the Union Government but collected and appropriated by the State…
- What is the primary objective of the 'Production Linked Incentive (PLI)' scheme in India?