UPSC Prelims Practice Questions — PLI Scheme disburses ₹15,554 crore in electronics and ₹2,377.56 crore in automobile sector incentives

Question 1

Which one of the following is the nodal department that coordinates the Production Linked Incentive (PLI) Scheme across all participating sectors, even though individual sector schemes are run by their respective line ministries?

Accepted Answer

Department for Promotion of Industry and Internal Trade (DPIIT)

Answer

Department of Economic Affairs

Answer

Ministry of Electronics and Information Technology (MeitY)

Answer

NITI Aayog

Question 2

With reference to the sectors covered under the Production Linked Incentive (PLI) Scheme, consider the following:
1. Drones and Drone Components
2. Specialty Steel
3. Advanced Chemistry Cell (ACC) Battery
4. Leather and Footwear
Which of the above is/are correctly identified as a notified PLI sector?

Accepted Answer

1, 2 and 3

Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2, 3 and 4

Question 3

One of the first three PLI schemes launched in March 2020 was for 'KSMs/Drug Intermediates and APIs'. This scheme was intended to incentivise the domestic manufacture of which one of the following?

Accepted Answer

Bulk drugs (key starting materials and active pharmaceutical ingredients)

Answer

Finished branded formulations for retail sale

Answer

Medical devices and diagnostic equipment

Answer

Vaccines and biologics

Question 4

The expanded PLI Scheme 2.0 for IT Hardware (covering laptops, tablets, servers, etc.) is implemented exclusively by which one of the following ministries?

Accepted Answer

Ministry of Electronics and Information Technology (MeitY)

Answer

Department for Promotion of Industry and Internal Trade (DPIIT)

Answer

Ministry of Heavy Industries

Answer

Ministry of Commerce and Industry

Question 5

As per the cumulative PLI performance figures released for the period ending 31 December 2025, which one of the following sectors had received the largest amount of incentive disbursement?

Accepted Answer

Electronics (Large Scale Electronics Manufacturing and IT Hardware 2.0)

Answer

Automobiles and Auto Components

Answer

Pharmaceutical Drugs

Answer

Telecom and Networking Products

Question 6

Within the electronics PLI disbursement, the 'IT Hardware 2.0' component specifically incentivises the manufacture of which one of the following product groups?

Accepted Answer

Laptops, tablets, all-in-one PCs, servers and ultra small form factor devices

Answer

Smartphones and feature phones only

Answer

Semiconductor wafers and display fabs

Answer

Telecom routers, switches and 4G/5G network gear

Question 7

The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, under which incentives are paid on determined sales of Advanced Automotive Technology products, was notified in which year?

Accepted Answer

2021

Answer

2020

Answer

2022

Answer

2023

Question 8

The PLI Scheme for Automobile and Auto Components has two components. Which one of the following is the component aimed primarily at Original Equipment Manufacturers (OEMs) of advanced automotive products?

Accepted Answer

Champion OEM Incentive Scheme

Answer

Component Champion Incentive Scheme

Answer

Advanced Chemistry Cell Incentive Scheme

Answer

FAME Component Incentive Scheme

Question 9

Across how many strategic sectors is the Production Linked Incentive (PLI) Scheme currently being implemented?

Accepted Answer

14

Answer

13

Answer

10

Answer

16

Question 10

Among the 14 PLI sectors, the scheme for Automobiles and Auto Components is implemented by which one of the following ministries/departments?

Accepted Answer

Ministry of Heavy Industries

Answer

Ministry of Electronics and Information Technology

Answer

Ministry of Road Transport and Highways

Answer

Department for Promotion of Industry and Internal Trade

Question 11

Aligned with the Atmanirbhar Bharat vision, what was the total financial outlay announced in the Union Budget 2021-22 for the PLI Schemes?

Accepted Answer

₹1.97 lakh crore

Answer

₹1.91 lakh crore

Answer

₹2.16 lakh crore

Answer

₹25,938 crore

Question 12

The Department for Promotion of Industry and Internal Trade (DPIIT), which coordinates the PLI Scheme, functions under which one of the following ministries?

Accepted Answer

Ministry of Commerce and Industry

Answer

Ministry of Finance

Answer

Ministry of Micro, Small and Medium Enterprises

Answer

Ministry of Electronics and Information Technology

UPSC Prelims Practice Questions — PLI Scheme disburses ₹15,554 crore in electronics and ₹2,377.56 crore in automobile sector incentives

Q1. Which one of the following is the nodal department that coordinates the Production Linked Incentive (PLI) Scheme across all participating sectors, even though individual sector schemes are run by their respective line ministries?

Q3. One of the first three PLI schemes launched in March 2020 was for 'KSMs/Drug Intermediates and APIs'. This scheme was intended to incentivise the domestic manufacture of which one of the following?

Q4. The expanded PLI Scheme 2.0 for IT Hardware (covering laptops, tablets, servers, etc.) is implemented exclusively by which one of the following ministries?

Q5. As per the cumulative PLI performance figures released for the period ending 31 December 2025, which one of the following sectors had received the largest amount of incentive disbursement?

Q6. Within the electronics PLI disbursement, the 'IT Hardware 2.0' component specifically incentivises the manufacture of which one of the following product groups?

Q7. The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, under which incentives are paid on determined sales of Advanced Automotive Technology products, was notified in which year?

Q8. The PLI Scheme for Automobile and Auto Components has two components. Which one of the following is the component aimed primarily at Original Equipment Manufacturers (OEMs) of advanced automotive products?

Q9. Across how many strategic sectors is the Production Linked Incentive (PLI) Scheme currently being implemented?

Q10. Among the 14 PLI sectors, the scheme for Automobiles and Auto Components is implemented by which one of the following ministries/departments?

Q11. Aligned with the Atmanirbhar Bharat vision, what was the total financial outlay announced in the Union Budget 2021-22 for the PLI Schemes?

Q12. The Department for Promotion of Industry and Internal Trade (DPIIT), which coordinates the PLI Scheme, functions under which one of the following ministries?