🧷 Authentic Classroom Explanation by IAS Monk

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📌 Question

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 (PLI) Scheme.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct

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✅ Correct Answer: (d)

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🧠 Explanation

Statement-I is incorrect.
India’s share in global merchandise exports is around 1.8–2%, not 3.2%. Higher figures often quoted relate to services exports, not goods.

Statement-II is correct.
India’s PLI Scheme has been availed by both domestic and foreign manufacturers. Companies such as Samsung, along with Indian firms like Dixon, Lava, Micromax, etc., have expanded production under PLI incentives.

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🔍 Curiosity Raiser

Why doesn’t manufacturing growth automatically raise export share?
Because exports depend on global demand, trade competitiveness, logistics, and market access, not incentives alone.

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🧘 IAS Monk Whisper

Incentives create capacity.
Only competitiveness creates exports.