economics easy True/False

The Production Linked Incentive (PLI) scheme provides financial rewards to companies based on their total historical capital investments rather than their incremental sales.

  1. True
  2. False

Answer: False

The PLI scheme is specifically designed to incentivize *incremental sales* from goods manufactured in domestic units over a defined base year. This output-oriented approach ensures that government funds reward actual production and market success, encouraging companies to scale up manufacturing and integrate into global value chains.

Topic Indian Economy - Industry
Exam Relevance UPSC Prelims, SSC CGL
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