Which of the following is NOT the primary goal of Production Linked Incentive (PLI) scheme?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4: Significantly increasing government regulation in private sector operations.
Explanation:
The core philosophy of the Production Linked Incentive (PLI) scheme is based on the principle of 'Minimum Government, Maximum Governance.' Let us analyze its objectives:
Option 4 (Incorrect Objective): The objective of the PLI scheme is *not* to increase government intervention or regulation within the operations of the private sector. Rather, it focuses on promoting the 'Ease of Doing Business' and providing financial incentives to enable private companies to become globally competitive.
Primary Objectives of the PLI Scheme (which are correct):
Attracting Substantial Investment (Option 1): To attract large-scale investments—both domestic and foreign—with the aim of transforming India into a Global Manufacturing Hub.
Incorporating Advanced Technology (Option 2): To incentivize companies to adopt state-of-the-art technologies and to foster the manufacturing of high-tech products domestically.
Ensuring Operational Efficiency (Option 3): To enhance production efficiency and reduce costs through the realization of Economies of Scale.
Key Facts about the PLI Scheme:
Inception: It was announced in 2020, with the primary objective of bolstering the 'Atmanirbhar Bharat' (Self-reliant India) campaign.
Mechanism: Under this scheme, companies are provided with a cash incentive ranging from 4% to 6% on the incremental sales of products manufactured within India.
Key Sectors: The scheme has been implemented across a total of 14 key sectors, including mobile manufacturing, pharmaceuticals, automobiles, solar modules, food processing, and textiles.
Additional Benefits:
Employment Generation: The expansion of manufacturing units creates millions of direct and indirect employment opportunities.
Reducing Import Dependence: Decreasing reliance on other nations (such as China) by promoting the domestic production of critical components.
Boosting Exports: Taking 'Make in India' products to global markets. Potential Questions for Upcoming Exams:
Question: How many sectors are currently covered under the PLI scheme?
Answer: 14 sectors.
Question: Which major national campaigns is the PLI scheme primarily intended to accelerate?
Answer: 'Atmanirbhar Bharat' and 'Make in India'.
Question: On what basis are incentives provided under the PLI scheme?
Answer: Based on the incremental sales of goods manufactured in India.