2026 · Q16
Consider the following statements about the Production Linked Incentive (PLI) scheme :
- 1It aims to increase the share of manufacturing sector in India's GDP to 25% and claims its place among the world's leading industrial economies.
- 2The scheme extends an incentive of 10% to 14% on incremental sales for a period of five years subsequent to the base year.
Which of the statements given above is/are correct?
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- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
The Production Linked Incentive scheme was launched to raise the manufacturing sector's share in GDP toward 25% and establish India among the world's leading industrial economies — statement 1 reflects its stated objective. The incentive is not a uniform 10–14% across sectors; rates vary by sector (commonly 4–6% on incremental sales over five years), so statement 2's blanket figure is incorrect. Hence only statement 1 is correct.