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Production Linked Incentive MCQ — 2 Practice Questions with Answers

Practice 2 Production Linked Incentive multiple-choice questions with detailed answers and explanations. Ideal for RAS/RPSC exam preparation.

2 Questions Indian Economy

Practice Questions

Q1. Assertion (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:

A Both A and R are true and R is the correct explanation of A
B Both A and R are true but R is NOT the correct explanation of A Correct
C A is true but R is false
D A is false but R is true

Explanation

Both Assertion and Reason are true. PLISFPI had created 3.39 lakh jobs against the 2.5 lakh target by February 2026 (A is true), and the scheme does cover the four product baskets listed (R is true). However, the diversity of product baskets is not the cause of surpassing the employment target; that is driven by capacity additions and approvals across 274 project locations. Hence R is NOT the correct explanation of A.

Q2. Consider the following two statements regarding PLISFPI as reported on April 22, 2026:\n1. PLISFPI's total outlay for 2021-22 to 2026-27 is ₹10,900 crore, of which ₹2,162.55 crore had been disbursed by February 2026.\n2. By February 2026, PLISFPI had created approximately 3.39 lakh direct and indirect jobs, exceeding the original target of 2.5 lakh by 2026-27.\nWhich of the statements given above is/are correct?

A Both 1 and 2 Correct
B 1 only
C 2 only
D Neither 1 nor 2

Explanation

Both statements are correct as per the MoFPI April 22, 2026 update. PLISFPI has a ₹10,900 crore outlay (2021-22 to 2026-27) with ₹2,162.55 crore disbursed by February 2026, and 3.39 lakh jobs have been created against a 2.5 lakh original target.

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There are 2 Production Linked Incentive practice MCQs available on Aspirant Academy, with detailed answers and explanations for each question.
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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.
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