Consider the following statements :
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statemeent-I is incorrect but Statement-II is correct.
Ans: d
Explanation:
India’s share in global merchandise exports rose from 0.9 per cent in 2005 to 1.8 per cent in 2023, while its share in services exports more than doubled from 2 per cent to 4.3 per cent.
Hence, statement 1 is incorrect.
Production-linked Incentive
Launched in 2020, the PLI Scheme is more than just a policy; it is a strategic leap toward self-reliance. PLI Schemes focus on 14 critical sectors, each strategically chosen to enhance the country’s manufacturing prowess, foster technological advancements, and elevate India’s position in global markets. These sectors are aligned with the government’s goal of strengthening domestic production and expanding exports, contributing to the broader vision of Atmanirbhar Bharat.
By targeting industries like electronics, textiles, pharmaceuticals, and automobiles, the initiative offers financial incentives tied directly to measurable outcomes such as higher production and incremental sales.
This performance-driven approach not only attracts investments from domestic and global players but also encourages businesses to embrace cutting-edge technologies and achieve economies of scale.
The Production Linked Incentive (PLI) Schemes have made significant strides in transforming India’s manufacturing landscape.
Exports have also seen a substantial uptick, driven by key sectors such as electronics, pharmaceuticals, and food processing.
The Production Linked Incentive Scheme (PLI Scheme) by the government of India encourages domestic manufacturing and incremental sales to reduce reliance on imports.
Hence, statement 2 is correct.
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