Communication and Information Technology and Indian Foreign Direct Investment

Description: This quiz will test your knowledge on the topic of Communication and Information Technology and Indian Foreign Direct Investment.
Number of Questions: 15
Created by:
Tags: communication and information technology indian foreign direct investment economic impact of communication and information technology on india
Attempted 0/15 Correct 0 Score 0

What is the primary objective of the Indian government's policy on Communication and Information Technology (CIT)?

  1. To promote the growth of the CIT sector in India.

  2. To attract foreign direct investment (FDI) in the CIT sector.

  3. To create jobs in the CIT sector.

  4. To improve the quality of life for all Indians.


Correct Option: A
Explanation:

The Indian government's policy on CIT aims to promote the growth of the CIT sector in India by providing incentives to businesses and individuals to invest in CIT-related activities.

Which of the following is not a key area of focus for the Indian government's CIT policy?

  1. Development of infrastructure.

  2. Promotion of research and development.

  3. Encouragement of foreign direct investment.

  4. Protection of intellectual property rights.


Correct Option: D
Explanation:

Protection of intellectual property rights is not a key area of focus for the Indian government's CIT policy.

What is the main reason for the Indian government's focus on attracting FDI in the CIT sector?

  1. To generate employment opportunities.

  2. To increase exports.

  3. To improve the balance of payments.

  4. To transfer technology and skills to India.


Correct Option: D
Explanation:

The main reason for the Indian government's focus on attracting FDI in the CIT sector is to transfer technology and skills to India.

Which of the following is not a benefit of FDI in the CIT sector for India?

  1. Increased employment opportunities.

  2. Increased exports.

  3. Improved balance of payments.

  4. Increased government revenue.


Correct Option: D
Explanation:

Increased government revenue is not a benefit of FDI in the CIT sector for India.

What is the main challenge faced by the Indian government in attracting FDI in the CIT sector?

  1. Lack of infrastructure.

  2. High cost of labor.

  3. Complex regulatory environment.

  4. Lack of skilled workforce.


Correct Option: C
Explanation:

The main challenge faced by the Indian government in attracting FDI in the CIT sector is the complex regulatory environment.

Which of the following is not a measure taken by the Indian government to address the challenge of the complex regulatory environment?

  1. Simplification of procedures.

  2. Reduction of red tape.

  3. Establishment of a single-window clearance system.

  4. Increase in the number of regulations.


Correct Option: D
Explanation:

Increase in the number of regulations is not a measure taken by the Indian government to address the challenge of the complex regulatory environment.

What is the impact of FDI in the CIT sector on the Indian economy?

  1. Increased economic growth.

  2. Increased employment opportunities.

  3. Improved balance of payments.

  4. All of the above.


Correct Option: D
Explanation:

FDI in the CIT sector has a positive impact on the Indian economy by increasing economic growth, employment opportunities, and the balance of payments.

Which of the following is not a sector that has benefited from FDI in the CIT sector in India?

  1. Manufacturing.

  2. Services.

  3. Agriculture.

  4. Infrastructure.


Correct Option: C
Explanation:

Agriculture is not a sector that has benefited from FDI in the CIT sector in India.

What is the future outlook for FDI in the CIT sector in India?

  1. Positive.

  2. Negative.

  3. Uncertain.

  4. Cannot be predicted.


Correct Option: A
Explanation:

The future outlook for FDI in the CIT sector in India is positive due to the government's focus on promoting the growth of the CIT sector and attracting FDI.

Which of the following is not a recommendation for the Indian government to further promote FDI in the CIT sector?

  1. Continue to simplify procedures and reduce red tape.

  2. Establish a single-window clearance system.

  3. Provide incentives to businesses and individuals to invest in CIT-related activities.

  4. Increase the number of regulations.


Correct Option: D
Explanation:

Increase the number of regulations is not a recommendation for the Indian government to further promote FDI in the CIT sector.

What is the role of the Foreign Investment Promotion Board (FIPB) in the Indian government's policy on CIT?

  1. To approve FDI proposals in the CIT sector.

  2. To recommend policies to the government to promote FDI in the CIT sector.

  3. To monitor the implementation of the government's CIT policy.

  4. All of the above.


Correct Option: D
Explanation:

The FIPB plays a key role in the Indian government's policy on CIT by approving FDI proposals, recommending policies to the government, and monitoring the implementation of the government's CIT policy.

Which of the following is not a member of the FIPB?

  1. Secretary of the Department of Industrial Policy and Promotion.

  2. Secretary of the Ministry of Finance.

  3. Secretary of the Ministry of Commerce.

  4. Governor of the Reserve Bank of India.


Correct Option: D
Explanation:

The Governor of the Reserve Bank of India is not a member of the FIPB.

What is the time frame for the FIPB to approve FDI proposals?

  1. 30 days.

  2. 60 days.

  3. 90 days.

  4. 120 days.


Correct Option: B
Explanation:

The FIPB is required to approve FDI proposals within 60 days.

What is the maximum equity participation allowed for foreign investors in the CIT sector?

  1. 49%.

  2. 51%.

  3. 74%.

  4. 100%.


Correct Option: D
Explanation:

Foreign investors are allowed to have 100% equity participation in the CIT sector.

Which of the following is not a sector in which foreign investors are allowed to have 100% equity participation?

  1. Software development.

  2. Data processing.

  3. Telecommunications.

  4. Defense.


Correct Option: D
Explanation:

Foreign investors are not allowed to have 100% equity participation in the defense sector.

- Hide questions