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Production Linked Incentive MCQ — 80 Practice Questions with Answers

Production Linked Incentive is a Indian Economy topic in the RAS/RPSC syllabus. This page gathers exam-style Production Linked Incentive multiple-choice questions with correct answers and explanations, so aspirants can test recall and revise frequently examined concepts.

Practice 80 Production Linked Incentive multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

80 Questions Indian Economy

Reviewed by: Aspirant Academy Editorial Team

Practice Questions

Q1. Consider the following statements regarding the PLI scheme for white goods: 1. It covers air conditioners and LED lights. 2. It has an outlay of Rs 6,238 crore. 3. It is designed to create a complete component ecosystem for automobiles and auto components. Which of the statements given above are correct?

A 1 and 3 only
B 2 and 3 only
C 1 and 2 only Correct
D 1, 2 and 3

Explanation

Statements 1 and 2 are true. PIB identifies the white goods scheme as covering ACs and LED lights with an outlay of Rs 6,238 crore. Statement 3 is false because the complete component ecosystem mentioned is for air conditioners and LED lights, not automobiles.

Q2. Consider the following statements regarding MSMEs and implementation under PLI schemes: 1. PLI schemes for all 14 sectors had been notified by the concerned ministries or departments after due approval. 2. Out of 733 applications selected under various PLI schemes, 176 MSMEs were among the beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones. 3. Anchor units built under PLI sectors are expected to create a new supplier or vendor base in the value chain, with most ancillary units expected in the MSME sector. 4. All 733 applications selected under various PLI schemes were MSME beneficiaries. Which of the statements given above are correct?

A 1 and 2 only
B 1, 2, 3 and 4
C 2, 3 and 4 only
D 1, 2 and 3 only Correct

Explanation

Statements 1, 2 and 3 are correct. PIB says all 14 sector schemes had been notified by concerned ministries/departments, that 176 MSMEs were among 733 selected applications, and that anchor units are likely to create supplier/vendor bases with ancillary units mostly in the MSME sector. Statement 4 is false because the cited number is 176 MSMEs out of 733, not all 733.

Q3. 1. The PLI Scheme for Textiles was notified on 24 September 2021. 2. It has an approved outlay of ₹10,683 crore to promote MMF apparel, MMF fabrics and technical textiles. 3. Under the first two rounds of selections, 74 applicants were approved under the scheme. 4. The scheme is restricted to handloom cotton products and excludes technical textiles. Which of the statements given above are correct?

A 1 and 4 only
B 1, 2 and 3 only Correct
C 2 and 4 only
D All four

Explanation

Statements 1, 2 and 3 are correct. Statement 4 is false because the scheme explicitly promotes MMF apparel, MMF fabrics and technical textiles.

Q4. Consider the following statements regarding the PLI Scheme for High Efficiency Solar PV Modules: 1. Tranche II of the scheme had an outlay of Rs. 19,500 crore. 2. The PLI benefit is to be disbursed for three years after commissioning of solar PV manufacturing plants. 3. The scheme is technology agnostic, but better module performance can earn higher PLI. Which of the statements given above are correct?

A 1 and 2 only
B 1 and 3 only Correct
C 2 and 3 only
D 1, 2 and 3

Explanation

Statements 1 and 3 are correct. Statement 2 is incorrect because MNRE says the PLI benefit will be disbursed for five years after commissioning, not three years.

Q5. Consider the following statements regarding the PLI scheme for drones and drone components: 1. The scheme was approved on 15 September 2021. 2. The total amount allocated is INR 120 crore spread over three financial years. 3. The PLI rate for drones was kept constant at 20% for all three years. 4. The minimum value addition norm was fixed at 50% of net sales for drones and drone components. Which of the statements given above are correct?

A 1 and 2 only
B 2 and 4 only
C 1, 2 and 3 only Correct
D 1, 3 and 4 only

Explanation

Statements 1, 2 and 3 are true: PIB records approval on 15 September 2021, INR 120 crore over three financial years, and a constant 20% PLI rate for all three years. Statement 4 is false because the government fixed the minimum value addition norm at 40% of net sales, not 50%.

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Frequently Asked Questions

How many Production Linked Incentive MCQ questions are available?
There are 80 Production Linked Incentive practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.
Are answers and explanations provided for Production Linked Incentive MCQs?
Yes, every Production Linked Incentive question comes with the correct answer and a detailed explanation to help you understand the underlying concept.
How is Production Linked Incentive relevant to the RAS/RPSC exam?
Production Linked Incentive falls under the Indian Economy section of the RAS/RPSC syllabus. It is a frequently tested area and regular practice with these MCQs will strengthen your preparation.
Can I practice Production Linked Incentive questions in Hindi?
Yes, Aspirant Academy offers bilingual support. You can practice Production Linked Incentive MCQs in both English and Hindi, including questions, options, and explanations.

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