UPSC CSE Prelims
PLI Scheme Previous Year Questions (PYQs)

Detailed Explanation:

Answer: Option 4 — Statement-I is incorrect but Statement-II is correct

Statement-I claims India accounts for 3.2% of global export of goods, which is incorrect as India's share in global merchandise exports is approximately 1.8%. Statement-II correctly states that both local and foreign companies have benefited from India's Production-Linked Incentive (PLI) scheme, which has attracted investments from domestic firms like Dixon Technologies, Lava International, and foreign companies like Samsung.

❌ Statement-I – Incorrect: India's share in global merchandise exports is around 1.8%, not 3.2%. India aims to increase this to 3% by 2027 and 10% by 2047.

✅ Statement-II – Correct: The PLI scheme has indeed been utilized by both domestic companies (Dixon Technologies, UTL, Neolyncs, Lava International, Optiemus Electronics, Micromax) and foreign companies (Samsung) operating in India to expand manufacturing capacity.

📝 Short Notes: Production-Linked Incentive (PLI) Scheme

• Launch: Introduced in 2020 to boost domestic manufacturing and reduce import dependence
• Coverage: Spans 14 sectors including electronics, pharmaceuticals, automobiles, textiles, food products, solar modules, and advanced chemistry cell batteries
• Incentive Structure: Provides financial incentives ranging from 4% to 6% on incremental sales of products manufactured in India
• Eligibility: Open to both domestic and international companies investing in India
• Objective: Make Indian manufacturers globally competitive, attract large investments, enhance exports, and create employment
• Total Outlay: Approximately ₹1.97 lakh crore across all sectors over five years