Economics • Indian EconomyMedium
What is the core focus of the 'Production Linked Incentive (PLI)' scheme introduced by the Government of India?
A. To provide direct financial incentives to domestic and foreign manufacturers based on incremental sales of products manufactured in India, boosting domestic manufacturing and exports.✓ Correct Answer
B. To subsidize agricultural input costs for marginal farmers cultivating staple food grains.
C. To waive corporate income taxes entirely for firms establishing units in backward hilly regions.
D. To provide unemployment allowances to formal sector workers during industrial layoffs.
💡 Solution & Explanation
The Production Linked Incentive scheme offers financial incentives to domestic and international corporations based on incremental sales of targeted goods manufactured within India to boost industrial output and exports. Launched across multiple key sectors, it aims to integrate Indian manufacturing into global supply chains and reduce import dependency. This policy instrument is frequently highlighted in current economic affairs for competitive examinations.
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