Economics • Indian EconomyEasy
What is the primary objective of the 'Production Linked Incentive (PLI)' scheme across various key sectors in India?
A. To provide direct cash transfers to below-poverty-line families for purchasing domestic goods.
B. To boost domestic manufacturing capacity, attract global investments, and enhance export competitiveness.✓ Correct Answer
C. To nationalize loss-making public sector enterprises in core industrial sectors.
D. To waive off agricultural loans for marginal farmers across drought-prone states.
💡 Solution & Explanation
The Production Linked Incentive scheme is designed to offer financial incentives based on incremental sales of products manufactured in domestic plants, thereby boosting industrial competitiveness and manufacturing depth across strategic sectors. Options proposing direct welfare transfers or loan waivers mischaracterize this industrial growth policy. The scheme forms a cornerstone of contemporary economic policy evaluations in competitive tests.
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