Economics • Indian EconomyMedium
How does the Production Linked Incentive (PLI) scheme seek to transform the manufacturing sector in India?
A. By offering financial incentives calculated as a percentage of incremental sales from products manufactured in domestic units to boost industrial competitiveness and exports✓ Correct Answer
B. By nationalizing all private manufacturing enterprises and placing them under direct bureaucratic control
C. By imposing heavy tariffs on raw material imports to ban foreign trade completely
D. By providing universal basic income grants directly to manufacturing sector labor unions
💡 Solution & Explanation
The Production Linked Incentive scheme provides financial incentives to domestic and multinational manufacturers based on incremental sales of goods manufactured in India, aiming to scale up domestic manufacturing capacity and attract global supply chains. Nationalization and import bans do not form part of modern industrial policy. Universal basic income grants are separate social welfare initiatives.
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