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?

(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 and 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 ✓ UPSC's answer

Why the answer is (d)

• Statement-I is incorrect: India's share of global merchandise exports is about 1.8% (WTO data); the 3.2% figure is not correct for goods.

• Statement-II is correct: the Production-Linked Incentive scheme (2020) for 14 sectors has drawn participation from Indian firms and foreign companies with Indian operations — Apple's contract manufacturers Foxconn and Pegatron, Samsung and Dixon in electronics, among others.

• India's services export share (about 4%) is notably higher than its goods share.

• Hence Statement-I is incorrect but Statement-II is correct, option (d).

Why the other options are wrong

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation…: Statement-I is wrong: India's goods export share is under 2%.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct…: Statement-I is wrong, so both cannot be correct.
(c) Statement-I is correct but Statement-II is incorrect: It is Statement-I that is wrong and Statement-II that is right.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2023, held on 28 May 2023. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.