Q. Consider the following statements about Production-linked incentive (PLI) schemes:
1. It offers incentives on incremental sales for products manufactured in India.
2. It encourages investments from within India and from outside.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: Production-linked incentive (PLI) schemes:

PLI scheme offers incentives on incremental sales for products manufactured in India for 13 identified sectors announced in Budget 2021-22.

Aim: To boost domestic manufacturing under the government’s Atma-nirbhar Bharat initiative. It focuses on reducing import bills and improving the cost competitiveness of local goods. PLI scheme offers incentives on incremental sales for products manufactured in India.

Objective:

1) Target specific product areas;

2) Introduce non-tariff measures in order to compete more effectively with cheap imports; 3) Blend domestic and export sales to make manufacturing competitive and sustainable; and

4) Promote manufacturing at home while encouraging investment from within and outside India.

Source: ForumIAS