Q. With reference to Make in India initiative, consider the following statements:
1.It aims to attract foreign direct investment for infrastructure development.
2.The “Production Linked Incentive (PLI)” scheme introduced under the initiative aims to provide financial subsidies to domestic manufacturers.
3.A foreign company establishes a manufacturing plant in India under the initiative is an example of Portfolio investment.
How many of the statements given above are correct?
Red Book
Red Book

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: B
Notes:

Explanation –

Statements 1 and 2 are correct. Attracting foreign direct investment (FDI) for infrastructure development is one of the objectives of the Make in India initiative. The initiative seeks to create a favorable investment climate and encourage multinational companies to set up manufacturing facilities in India, thereby boosting the country’s infrastructure and industrial capacity. The Production Linked Incentive (PLI) scheme is a key component of the Make in India initiative, offering financial incentives to domestic manufacturers to boost production in various sectors. The scheme aims to enhance India’s manufacturing capabilities, promote exports, and reduce the country’s dependence on imports.

Statement 3 is incorrect. A foreign company establishing a manufacturing plant in India under the Make in India initiative is not an example of portfolio investment but rather an example of foreign direct investment (FDI). Portfolio investment refers to investments made in financial assets, such as stocks and bonds, while foreign direct investment involves investing in tangible assets, such as establishing a manufacturing plant.

Source: Forum IAS


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