India is world’s third largest domestic aviation market. The government plans to make India a hub for financing aircraft purchases and leasing of planes. In order to promote this, the government has announced tax incentives, like tax deductions, for companies setting up business in IFSC for fifteen years. Identify the type of plan being described in the above lines.

Strategy

The correct answer is option 3 i.e. Strategy.

The passage describes a strategic plan by the government to make India a hub for financing aircraft purchases and leasing of planes. The plan involves offering tax incentives, such as tax deductions for companies setting up business in IFSC (International Financial Services Centre) for fifteen years. Therefore, the type of plan being described is a strategy.

A strategy provides the broad contours of an organisation’s business. It will also refer to future decisions defining the organisations direction and scope in the long run. Thus, we can say a strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions-
(i) determining long term objectives,
(ii) adopting a particular course of action, and
(iii) allocating resources necessary to achieve the objective.