Q. With reference to the Performance Linked Incentive Scheme (PLI), consider the following statements:
Select the answers using the codes below:
Q. With reference to the Performance Linked Incentive Scheme (PLI), consider the following statements:
Select the answers using the codes below:
The correct option is C 1 and 3 only
Explanation:
Statement 1 is correct: The PLI scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods. PLI scheme offers incentives on incremental sales for products manufactured in India.
Statement 2 is incorrect: The PLI scheme is for 13 key sectors for a period of 5 years starting from fiscal year (FY) 2021- 22. These 13 sectors include already existing 3 sectors named:
(i) Mobile Manufacturing and Specified Electronic Components,
(ii) Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients, and
(iii) Manufacturing of Medical Devices.
10 new key sectors have been approved by the Union Cabinet recently in November 2020. They are:
(i) Automobiles and Auto Components,
(ii) Pharmaceuticals Drugs,
(iii) Specialty Steel,
(iv) Telecom & Networking Products,
(v) Electronic/Technology Products,
(vi) White Goods (ACs and LEDs),
(vii) Food Products,
(viii) Textile Products: MMF segment and technical textiles,
(ix) High-efficiency solar PV modules, and
(x) Advanced Chemistry Cell (ACC) Battery.
Statement 3 is correct: The scheme aims to boost domestic manufacturing under the government’s Atmanirbhar Bharat initiative, which was introduced in March 2020 and is expected to result in a minimum production worth more than $500 billion in five years, according to the Commerce Ministry.
Explanation:
Statement 1 is correct: The PLI scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods. PLI scheme offers incentives on incremental sales for products manufactured in India.
Statement 2 is incorrect: The PLI scheme is for 13 key sectors for a period of 5 years starting from fiscal year (FY) 2021- 22. These 13 sectors include already existing 3 sectors named:
(i) Mobile Manufacturing and Specified Electronic Components,
(ii) Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients, and
(iii) Manufacturing of Medical Devices.
10 new key sectors have been approved by the Union Cabinet recently in November 2020. They are:
(i) Automobiles and Auto Components,
(ii) Pharmaceuticals Drugs,
(iii) Specialty Steel,
(iv) Telecom & Networking Products,
(v) Electronic/Technology Products,
(vi) White Goods (ACs and LEDs),
(vii) Food Products,
(viii) Textile Products: MMF segment and technical textiles,
(ix) High-efficiency solar PV modules, and
(x) Advanced Chemistry Cell (ACC) Battery.
Statement 3 is correct: The scheme aims to boost domestic manufacturing under the government’s Atmanirbhar Bharat initiative, which was introduced in March 2020 and is expected to result in a minimum production worth more than $500 billion in five years, according to the Commerce Ministry.
