Answer-The Production Linked Incentive (PLI) 2.0 scheme, emphasized in recent policy cycles, introduced a '...

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.

Question

The Production Linked Incentive (PL

I 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.

B To mandate that 100% of the energy used in factories comes from nuclear power.

C To ensure that all products manufactured under the scheme are exported to G7 nations only.

D To encourage deep localization and the development of a domestic component ecosystem rather than just final assembly.

Practice Next