Economics • Indian EconomyEasy
What is the primary objective of the 'Production Linked Incentive (PLI)' scheme introduced by the Government of India?
A. To provide direct cash subsidies to consumers purchasing luxury electronic items.
B. To boost domestic manufacturing capacity, enhance global competitiveness, and attract large-scale investments in key sectors.✓ Correct Answer
C. To eliminate import duties on all agricultural commodities.
D. To guarantee minimum wages for workers in the unorganized informal sector.
💡 Solution & Explanation
The Production Linked Incentive scheme offers financial incentives based on incremental sales to domestic and foreign companies manufacturing target products in India, aiming to boost domestic manufacturing and exports. Alternative proposals mentioning direct cash subsidies for luxury consumer goods or guaranteed minimum wages misrepresent the core industry-focused design of this economic policy. This initiative currently spans across more than fourteen key strategic manufacturing sectors.
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