Economics • Indian EconomyEasy
What is the primary objective of the 'Production Linked Incentive (PLI)' scheme in India?
A. To boost domestic manufacturing capacity, enhance exports, and attract global investments in key sectors.✓ Correct Answer
B. To provide direct cash transfers to below-poverty-line families for purchasing food grains.
C. To waive agricultural loans for marginal farmers across drought-prone districts.
D. To subsidize digital education infrastructure in rural public schools.
💡 Solution & Explanation
The Production Linked Incentive scheme aims to boost domestic manufacturing capacity, enhance export competitiveness, and attract global investments in target industrial sectors by offering financial rewards on incremental sales. By offsetting domestic disability costs, the scheme encourages multinational and domestic firms to establish large-scale production units within India. This initiative is a cornerstone of the Atmanirbhar Bharat strategy to integrate India into global value chains.
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