A
A financial subsidy scheme linking manufacturing turnover to cash incentives
B
The biologically active component in a pharmaceutical drug responsible for therapeutic effects
C
A mandatory quality standard issued under the Bureau of Indian Standards Act
D
An anti-abuse rule denying tax treaty benefits to foreign investors
Correct answer: (b) The biologically active component in a pharmaceutical drug responsible for therapeutic effects
Explanation
Option B is correct because an Active Pharmaceutical Ingredient (API) is specifically the biologically active component in a pharmaceutical drug responsible for its therapeutic effects. Option A describes a PLI scheme, Option C refers to a QCO, and Option D describes the Principal Purpose Test.
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