Economics • Indian EconomyMedium
What is the core strategic objective of the 'Production Linked Incentive (PLI) Scheme 2.0' specifically tailored for IT hardware?
A. To provide direct income support to domestic software engineers unemployed due to market consolidation.
B. To boost domestic manufacturing of laptops, tablets, all-in-one PCs, and servers by offering financial incentives on incremental sales.✓ Correct Answer
C. To subsidize the import of semiconductor wafers for public research institutions.
D. To nationalize major semiconductor fabrication units operating in Special Economic Zones.
💡 Solution & Explanation
The Production Linked Incentive Scheme 2.0 for IT Hardware aims to attract major global investments and stimulate domestic manufacturing of laptops, tablets, all-in-one personal computers, and servers by offering financial incentives on incremental sales over the base year. This policy seeks to reduce import dependence and establish India as a global hub for electronics manufacturing. Distractors involving direct income support or nationalization mischaracterize the market-driven incentive model of the scheme.
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