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      Question

      The Production Linked Incentive (PLI) 2.0 scheme,

      emphasized in recent policy cycles, introduced a "Value Addition" criteria. What is the primary objective of shifting from purely 'incremental sales' to 'value addition' metrics?
      A To reduce the total number of employees in the manufacturing sector. Correct Answer Incorrect Answer
      B To mandate that 100% of the energy used in factories comes from nuclear power. Correct Answer Incorrect Answer
      C To ensure that all products manufactured under the scheme are exported to G7 nations only. Correct Answer Incorrect Answer
      D To encourage deep localization and the development of a domestic component ecosystem rather than just final assembly. Correct Answer Incorrect Answer

      Solution

      The initial versions of the PLI focused largely on meeting sales targets, which sometimes led to "screwdriver assembly" (importing parts and just putting them together). PLI 2.0 (especially in IT hardware and electronics) rewards companies that actually manufacture components within India. This increases the "value added" domestically, strengthens the supply chain, and ensures that the economic benefits of manufacturing stay within the country.

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