Consider the following statements: Statement-I: India accounts for 3.2% of global exports of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme. Which one of the following is correct in respect of the above statements?
- A.Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- B.Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- C.Statement-I is correct but Statement-II is incorrect
- D.Statement-I is incorrect but Statement-II is correct
▶ Answer & Explanation
Correct answer: D. Statement-I is incorrect but Statement-II is correct
The Production-Linked Incentive (PLI) scheme was launched to boost domestic manufacturing and exports by providing incentives to companies based on their incremental sales. This scheme has indeed attracted significant investment from both domestic and foreign entities, encouraging them to expand production and thereby increasing India's export potential. However, India's share in global goods exports is considerably lower than 3.2%. Official data typically places India's share at around 1.5% to 2%, indicating that while the PLI scheme aims to enhance exports, the statement about the current share of global exports is factually inaccurate.
Source: UPSC gs1 2023