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. Which one of the following is correct in respect of the above statements?
Evaluating Statements on India's Global Trade and PLI Scheme
We are asked to evaluate two statements regarding India's position in global trade and the impact of the Production-linked Incentive (PLI) scheme.
Analyzing Statement-I: India's Share in Global Exports
Statement-I claims: India accounts for 3.2% of global export of goods.
Let's consider India's share in global merchandise (goods) exports. Historical data and recent statistics from organizations like the World Trade Organization (WTO) and the Ministry of Commerce & Industry, Government of India, consistently show India's share to be significantly lower than 3.2%. For instance, in recent years (like 2021 or 2022), India's share in global merchandise exports has been around 1.6% to 1.7%. While this share has been growing, it has not reached 3.2%.
Therefore, Statement-I, claiming a 3.2% share of global export of goods, is incorrect based on available trade data.
Analyzing Statement-II: Uptake of Production-linked Incentive (PLI) Scheme
Statement-II claims: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
The Production-linked Incentive (PLI) scheme was introduced by the Government of India to boost domestic manufacturing and attract investments in key sectors. The scheme offers incentives on incremental sales of products manufactured in India. It covers a wide range of sectors, including electronics, automobiles, pharmaceuticals, textiles, food products, and more.
Since its launch, numerous companies, both Indian (local) and foreign companies with operations in India, have applied for and been selected under various PLI schemes across different sectors. Companies like Samsung, Apple's contract manufacturers (Foxconn, Wistron, Pegatron), Maruti Suzuki, Tata Motors, Reliance Industries, and many others across different sectors have either committed investments or started receiving incentives under the scheme.
This widespread adoption by eligible companies demonstrates that many local and some foreign companies have indeed taken advantage of the PLI scheme.
Therefore, Statement-II is correct.
Conclusion from Statement Analysis
Based on the analysis:
- Statement-I: India accounts for 3.2% of global export of goods - Incorrect
- Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme - Correct
Thus, Statement-I is incorrect, but Statement-II is correct.
Comparing with the Options
We are looking for the option that states Statement-I is incorrect and Statement-II is correct. The given correct option text matches this conclusion.
| Statement | Evaluation | Reasoning |
|---|---|---|
| Statement-I: India accounts for 3.2% of global export of goods | Incorrect | India's share in global merchandise exports is typically around 1.6-1.7%. |
| Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. | Correct | Numerous Indian and foreign companies have been approved for and are benefiting from PLI schemes across various sectors. |
Revision Table: India Exports & PLI Scheme
| Concept | Key Detail | Status (Correct/Incorrect as per statements) |
|---|---|---|
| India's share of global goods export | Cited as 3.2% in Statement-I | Incorrect (Actual share is lower, approx 1.6-1.7%) |
| Production-linked Incentive (PLI) scheme | Used by many local and some foreign companies | Correct (Widely adopted by companies in eligible sectors) |
Additional Information on India's Trade and PLI Scheme
India's merchandise exports have been on a growth trajectory, aiming to reach higher figures. While 3.2% is a target or aspiration in certain contexts (like combined goods and services), for goods alone, it's not the current reality.
The PLI scheme is a crucial part of India's 'Make in India' and 'Atmanirbhar Bharat' initiatives. It aims to boost domestic manufacturing, create jobs, and reduce dependence on imports. By providing incentives based on incremental sales, it encourages companies to expand production and increase exports from India. The scheme covers several key sectors, attracting significant investment proposals from both domestic and international players.
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