Explanation:

Recently, Cabinet has approved a new five-year Production Linked Incentive (PLI) scheme for the textile industry, scheme for textiles is part of overall announcement of PLI schemes for 13 sectors made during the Union Budget 2021-22 with an outlay of Rs 1.97 lakh crore.

The PLI scheme across these 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain.

• These are Electronic/Technology Products; Automobiles & Auto Components; Pharmaceuticals drugs and Medical devices; Telecom & Networking Products; Textile Products: MMF segment and technical textiles; Food Products; High Efficiency Solar PV Modules; White Goods (ACs & LED) and Speciality Steel.

Need for Production-Linked Incentive (PLI) Scheme

• The idea of PLI is important as the government cannot continue making investments in these capital-intensive sectors as they need longer times to start giving the returns.
• The electronics and pharmaceuticals themselves are large sectors and if the government can focus on labour-intensive sectors like garments and leather, it would be really helpful.

Sectors currently having the PLI scheme

• The central government introduced the PLI scheme for mobile manufacturing as well as pharmaceutical ingredients and medical devices.
• As a part of PLI scheme for mobile and electronic equipment manufacturing, and incentive of 4-6% is planned for electronics companies that manufacture mobile phones and other electronic components.
• The PLI scheme for pharmaceutical ingredients and medical devices seeks that applicants will commit a certain amount prescribed by the government as an investment to build capacities in these areas.
• The government will pay the companies it selects for the scheme a specific proportion of their turnover from making and selling the bulk drugs or medical devices as an incentive over the next few years.

Note: After clearing the Production Linked Incentive scheme for the textile sector last week, the Union Cabinet is likely to offer a PLI scheme for the auto sector this week, with a focus on promoting manufacture and export of electric vehicles (EVs) and cars running on hydrogen-fuel cells, as well as sophisticated auto parts requiring advanced production technologies.

• Petrol and diesel vehicles will not be included in the ambitious production-linked incentive (PLI) scheme for automobiles as the government will restrict benefits of the Rs 26,000 crore scheme — slashed from the originally-planned Rs 57,000 crore — to green technologies such as electrics and those powered by the futuristic hydrogen fuel cells.

Hence option 4th is correct.