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Q88·GS Paper 1 · Prelims 2023

India's share of global export of goods 3.2%; Production-Linked Incentive (PLI) scheme utilised by companies

EconomyExternal Sector & TradeAssertion-ReasonMediumCurrent-affairs-linked

Question

Consider the following statements: Statement-I: India accounts for 3.2% of global export 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?

Options

a

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

b

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

c

Statement-I is correct but Statement-II is incorrect

d

Statement-I is incorrect but Statement-II is correct

Answer

Explanation

Statement-I is incorrect; India accounts for roughly 1.8% of global merchandise (goods) exports, significantly lower than 3.2%. Statement-II is correct; the Production-Linked Incentive (PLI) scheme has been successfully utilized by both domestic and massive foreign corporations (like Apple's contract manufacturers) to boost local manufacturing.

India is a heavyweight in global IT services exports, but it remains a marginal player (sub-2%) in global merchandise/goods exports.

Answer: (d).

Question details

Year

2023

Paper

GS Paper 1

Question

Q88

Subject

Economy

Sub-topic

External Sector & Trade

Type

Assertion-Reason

Difficulty

Medium

Nature

Current-affairs-linked

Source hint

Economic Survey 2022-23 / Production Linked Incentive Execution

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