65th B.P.S.C. (Re-Exam) (Pre) 2020

Consider the following statements about the Production-Linked Incentive (PLI) scheme : 1. The scheme offers a production-linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components. 2. The scheme has two categories of applicants, namely, global companies and domestic companies. 3. The scheme shall extend an average incentive of around 8% on net incremental sales (over the base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years. 4. The target segment under PLI shall include (i) laptops, (ii) tablets, (iii) all-in-one PCs, (iv) servers and (v) Ultra-Small Form Factor (USFF). Which of the above statements are incorrect? Join @Apnapdfs ## Page 47 CLICK HERE - JOIN @APNAPDFS Keeping in mind the vision of making India self-reliant, the Production-Linked Incentive (PLI) scheme was announced in 2021 for 14 important sectors to enhance the country’s manufacturing capabilities and exports. The scheme aims to attract investment in key sectors and cutting-edge technology, ensure better capacity, expand manufacturing at scale and the size of the economy, and make Indian companies and manufacturers globally competitive. It offers production-linked incentives to promote domestic manufacturing and to attract large investments in mobile phone manufacturing and specified electronic components. 4. The percentage contribution of 'dwarf' enterprises (establishments with less than 100 workers) to employment and productivity in India in 2018-19 is respectively -

a14%, 8%✓ Correct
b15%, 5%
c12%, 4%
d10%, 10%
eNone of the above

Explanation

According to the Economic Survey 2018-19, the contribution of ‘Dwarf’ enterprises (establishments with less than 100 workers) in India is only 14 per cent in employment and only 8 per cent in productivity. However, in terms of number, they constitute more than half of all organised manufacturing establishments. According to the Economic Survey 2025-26 in FY24, 22% of the Factories in Operation employed 79% of the manufacturing workforce, whereas small factories (with less than 100 Employee) accounted for 77% of the total factories and only 21% of the workforce.

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