Government Policies on FDI

Description: This quiz aims to assess your understanding of the various government policies related to Foreign Direct Investment (FDI) in India.
Number of Questions: 15
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Tags: fdi government policies indian economy
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Which government body is responsible for approving FDI proposals in India?

  1. Reserve Bank of India (RBI)

  2. Foreign Investment Promotion Board (FIPB)

  3. Ministry of Commerce and Industry

  4. National Investment Promotion and Facilitation Agency (NIPFA)


Correct Option: B
Explanation:

The Foreign Investment Promotion Board (FIPB) is the government body responsible for approving FDI proposals in India.

What is the minimum capital requirement for foreign companies to invest in India?

  1. $100,000

  2. $250,000

  3. $500,000

  4. $1,000,000


Correct Option: A
Explanation:

The minimum capital requirement for foreign companies to invest in India is $100,000.

Which sectors are prohibited for FDI in India?

  1. Defense

  2. Agriculture

  3. Retail

  4. Real Estate


Correct Option: A
Explanation:

FDI is prohibited in the defense sector in India.

Which sectors require prior government approval for FDI in India?

  1. Telecommunications

  2. Banking and Finance

  3. Insurance

  4. All of the above


Correct Option: D
Explanation:

FDI in telecommunications, banking and finance, and insurance sectors require prior government approval in India.

What is the automatic route for FDI in India?

  1. FDI proposals that do not require prior government approval

  2. FDI proposals that require prior government approval

  3. FDI proposals that are prohibited

  4. None of the above


Correct Option: A
Explanation:

The automatic route for FDI in India refers to FDI proposals that do not require prior government approval.

What is the government's objective in promoting FDI in India?

  1. To increase economic growth

  2. To create employment opportunities

  3. To improve the balance of payments

  4. All of the above


Correct Option: D
Explanation:

The government's objective in promoting FDI in India is to increase economic growth, create employment opportunities, and improve the balance of payments.

Which government agency is responsible for promoting FDI in India?

  1. Invest India

  2. Department of Industrial Policy and Promotion (DIPP)

  3. Ministry of Commerce and Industry

  4. All of the above


Correct Option: D
Explanation:

Invest India, the Department of Industrial Policy and Promotion (DIPP), and the Ministry of Commerce and Industry are all responsible for promoting FDI in India.

What is the government's policy on FDI in the retail sector?

  1. FDI is allowed in single-brand retail

  2. FDI is allowed in multi-brand retail

  3. FDI is prohibited in both single-brand and multi-brand retail

  4. None of the above


Correct Option: A
Explanation:

FDI is allowed in single-brand retail in India, but not in multi-brand retail.

What is the government's policy on FDI in the defense sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: D
Explanation:

FDI is prohibited in the defense sector in India.

What is the government's policy on FDI in the banking and finance sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: B
Explanation:

FDI is allowed up to 74% in the banking and finance sector in India.

What is the government's policy on FDI in the insurance sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: A
Explanation:

FDI is allowed up to 49% in the insurance sector in India.

What is the government's policy on FDI in the real estate sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: C
Explanation:

FDI is allowed up to 100% in the real estate sector in India.

What is the government's policy on FDI in the telecommunications sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: B
Explanation:

FDI is allowed up to 74% in the telecommunications sector in India.

What is the government's policy on FDI in the agriculture sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: D
Explanation:

FDI is prohibited in the agriculture sector in India.

What is the government's policy on FDI in the retail sector?

  1. FDI is allowed up to 49%

  2. FDI is allowed up to 74%

  3. FDI is allowed up to 100%

  4. FDI is prohibited


Correct Option: A
Explanation:

FDI is allowed up to 49% in the retail sector in India.

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