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UPSC 2012: Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India 2. Majority foreign equity holding in Indian companies 3. Companies exclusively financed by foreign companies 4. Portfolio investment Select the correct answer using the codes given below :
(a)1, 2, 3 and 4
(b)2 and 4 only
(c)1 and 3 only
(d)1, 2 and 3 only
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Not attemptedCorrect Answer: (d) 1, 2 and 3 only
FDI in India includes (1) subsidiaries set up by foreign companies, (2) Indian companies where foreigners hold a majority equity stake, and (3) companies wholly financed by foreign entities. Portfolio investment (purchase of securities below 10 % shareholding) is treated separately as Foreign Portfolio Investment and is NOT counted as FDI, so statements 1, 2 and 3 only are correct. ([rbi.org.in](https://rbi.org.in/scripts/NotificationUser.aspx?Id=11161&utm_source=openai))
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What is the correct answer to this UPSC 2012 Indian Economy question?▼
The correct answer is option (d): 1, 2 and 3 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2012, GS Paper 1, as Question 78. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.