Q. Consider the following statements::
1.Industrial Policy Resolution 1948 introduced state control over Indian industrial sector.
2.India, in recent years, has increased average tariffs on imported products.
3.The production linked incentive (PLI) scheme is primarily designed to encourage companies to manufacture products outside India.
How many of the above statements are correct?
Answer: B
Notes:
Explanation –
Statements 1 and 2 are correct. Industrial Policy Resolution 1948 introduced state control over Indian industrial sector. These state control over the industrial sector was further strengthened by Industrial Policies in 1956,1977 and 1980. India has increased average tariffs on imported products. WTO in its review of India’s trade policy for 2021 pointed out that the country’s simple average tariff rate had increased from 13% to 15.4% since 2015.
Statement 3 is incorrect. The production linked incentive (PLI) scheme is focused on incentivizing companies to increase domestic production across 14 sectors rather than manufacture products outside India.
Source: ForumIAS
