UPSC Prelims PYQ 2023: India’s share in global exports and PLI scheme

Consider, the following statements:

Statement-I: India accounts for 3.2% of global export of goods.
Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.

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

According to the latest Global Trade Outlook and Statistics report, India’s share of global goods exports was 1.8% in 2023, while its share of imports was 2.8%. In the area of digitally delivered services, India’s share increased to 6% in 2023, up from 4.4% in 2019. In global commercial services, India’s share in exports is seen 4.4% in 2023 at $344 billion, up 11% on-year, whereas imports were flat at $247 billion.

The PLI Scheme is a policy to promote domestic manufacturing to enhance India’s self-reliance and global competitiveness. The scheme provides financial incentives to eligible companies based on their incremental sales of products manufactured in India over a base year. By offering financial incentives to manufacturers, the PLI scheme aims to attract domestic and foreign investment in key sectors, thereby stimulating economic growth and industrial development. The scheme covers 14 key sectors, including electronics, automobiles, pharmaceuticals, textiles, food processing, telecom, solar PV modules and white goods.
- The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.
Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.