MCQ
Production Linked Incentive MCQ - Practice Questions with Answers
Solve 80 Production Linked Incentive questions for RAS/RPSC preparation.
Practice questions
Q1Consider 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?
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.
Q2Consider 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?
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.
Q31. 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?
Statements 1, 2 and 3 are correct. Statement 4 is false because the scheme explicitly promotes MMF apparel, MMF fabrics and technical textiles.
Q4Consider 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?
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.
Q5Consider 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?
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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6Consider the following statements regarding the PLI scheme for bulk drugs: 1. It promotes domestic manufacturing of automobiles and auto components. 2. It has a total budgetary outlay of Rs. 6,940 crore. 3. It aims to reduce import dependence and mitigate supply chain risks arising from excessive reliance on a single source. Which of the statements given above are correct?
7Consider the following statements regarding the PLI scheme for Advanced Chemistry Cell battery storage: 1. The PLI ACC Scheme was approved in May 2021 with a total outlay of Rs. 18,100 crore to establish 50 GWh domestic ACC manufacturing capacity. 2. For Round-2, there is no gestation period before the scheme period begins. 3. The scheme aims to reduce dependence on imported ACC by enhancing India's manufacturing capabilities. 4. The scheme is technologically agnostic and ensures that superior technologies receive higher incentives. Which of the statements given above are correct?
8Consider the following statements regarding Production Linked Incentive schemes: 1. PLI schemes for 14 key sectors were announced with an outlay of Rs. 1.97 lakh crore to enhance India's manufacturing capabilities and exports. 2. White Goods, Food Products, Textile Products, High Efficiency Solar PV Modules, ACC Battery, and Drones and Drone Components are included among the 14 PLI sectors. 3. The core purpose of PLI schemes is to replace cutting-edge technology with labour-only production methods. 4. PLI schemes for all 14 sectors were notified by the concerned ministries or departments after due approval. Which of the statements given above are correct?
9Consider the following statements regarding PLI for White Goods: 1. The scheme covered air conditioners and LED lights. 2. Its budgetary outlay was Rs. 6,238 crore. 3. The incentive was 4% to 6% on incremental sales for a period of five years. 4. The scheme was expected to develop complete component ecosystems in India. Which of the statements given above are correct?
101. The Production Linked Incentive Scheme for Pharmaceuticals was notified by the Department of Pharmaceuticals on 3 March 2021. 2. The approved outlay of the PLI Scheme for Pharmaceuticals is ₹15,000 crore. 3. Products covered under the scheme include formulations, biopharmaceuticals, APIs, KSMs, drug intermediates and in-vitro diagnostic medical devices. 4. Category-1 and Category-2 products attract 4% incentive, while Category-3 products attract 10% incentive. Which of the statements given above are correct?
11Assertion (A): The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has surpassed its original 2026-27 employment target by February 2026.\nReason (R): PLISFPI covers four product baskets — RTC/RTE foods including millet-based products, processed fruits and vegetables, marine products, and Mozzarella Cheese.\nSelect the correct option:
12Consider the following statements regarding the PLI scheme for large-scale electronics manufacturing: 1. It targets mobile phone manufacturing and specified electronic components, including ATMP units. 2. It offers an incentive of 4% to 6% on incremental sales over the base year. 3. Its incentive is payable for ten years after the base year. Which of the statements given above are correct?
13Consider the following statements regarding the PLI scheme for drones and drone components: 1. It was notified on 30 September 2021. 2. The incentive provided is Rs. 120 crore over three financial years from 2021-22. 3. The PLI rate changes every year from 20% to 10% to 5%. Which of the statements given above are correct?
14Consider the following statements regarding the PLI scheme for promoting domestic manufacturing of medical devices: 1. It was launched in 2020. 2. Its total financial outlay is Rs. 3,420 crore. 3. It gives incentive at 15% on incremental sales of medical devices. Which of the statements given above are correct?
15Consider the following statements regarding the early structure of PLI schemes: 1. In Union Budget 2021-22, an outlay of INR 1.97 lakh crore was announced for PLI schemes for 13 key sectors for five years starting from FY 2021-22. 2. The 13 sectors included three already existing sectors and ten new key sectors approved by the Union Cabinet in November 2020. 3. PLI schemes are implemented directly by NITI Aayog instead of the concerned ministries or departments. 4. The Union Cabinet approved an Empowered Group of Secretaries and Project Development Cells on 3 June 2020 to fast-track investments. Which of the statements given above are correct?