The incentive under the Production Linked Incentive scheme is calculated on
- A.the capital invested in a new plant
- B.the incremental sales of goods manufactured in India over a base year
- C.the export duty paid by the manufacturer
- D.the number of workers employed in the factory
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This output-linked design is what distinguishes the PLI scheme from older industrial subsidies: a selected manufacturer receives an incentive, usually a percentage of the additional sales of eligible goods made in India, for a fixed number of years, so the payment follows production and sales actually achieved.
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