GS PrelimsEconomyExternal Sector2023

Consider the following statements : 1. Statement-I: India accounts for 3.2% of global export of goods. 2. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?

A

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

B

Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation. for Statement-I

C

Statement-I is correct but Statement-II is incorrect

D

Statement-I is incorrect but Statement-II is correct

Correct Answer: Option D

Explanation

1. Statement-I claims that India accounts for 3.2% of global export of goods. According to data from organizations like the WTO, India's share in global merchandise exports has been significantly lower than 3.2% in recent years (hovering around 1.7%-1.8% before 2023). Therefore, Statement-I is incorrect. 2. Statement-II states that many local companies and some foreign companies operating in India have utilized India's 'Production-linked Incentive' (PLI) scheme. The PLI scheme has been implemented across various sectors to boost domestic manufacturing, and numerous domestic and foreign companies have indeed participated and availed benefits under this scheme. Therefore, Statement-II is correct. 3. Since Statement-I is incorrect and Statement-II is correct, option (D) is the correct choice.

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