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    Question

    In relation to the Production Linked Incentive Scheme

    for electronics, consider the following statements: 1. It is an outcome and growth-based model to provide incentives based on incremental production. 2. It is a WTO compliant scheme and includes incentives for the export and value addition to the goods. Which of the statements given above is/are correct?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C Both 1 and 2 Correct Answer Incorrect Answer
    D Neither 1 nor 2 Correct Answer Incorrect Answer

    Solution

    ● Statement 1 is incorrect: The Production Linked Incentive Schemes for the electronics provides incentives or rebates to the manufactures on the incremental sales of the product in relation to a base year. It is an outcome-based scheme that seeks to provide incentives only after the production has been done and also aims to ensure higher rate of growth as incentives are not provided in case of lower growths. ● Statement 2 is incorrect: The production linked scheme for electronics is a WTO compliant scheme as the support or incentive provided in this scheme is not linked to any local value addition or the export. It focuses on the incremental sales with respect to the sale from a previous base year.

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