Economics • Indian EconomyMedium
What is the strategic economic objective of the Production Linked Incentive scheme introduced by the Government of India across key manufacturing sectors?
A. To provide financial incentives based on incremental sales of manufactured goods produced in India, aiming to boost domestic manufacturing capacity and exports✓ Correct Answer
B. To provide direct cash subsidies to agricultural laborers based on crop acreage harvested
C. To waive corporate income taxes permanently for all multinational technology firms operating in special economic zones
D. To nationalize loss-making private manufacturing units to secure employment stability
💡 Solution & Explanation
The Production Linked Incentive scheme offers financial incentives to domestic and international companies based on incremental sales of products manufactured in domestic plants, thereby enhancing global competitiveness, reducing import dependence, and fostering high-tech manufacturing ecosystems. Agricultural subsidies operate under separate farmer welfare budgets. Permanent corporate tax waivers are not part of standard industrial policy. Nationalizing private units contradicts current liberalized economic frameworks.
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