Bissoy.com
Doctors Medicines MCQs Q&A

Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India 2. Majority of 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:

Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India 2. Majority of 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: Correct Answer 1, 2 and 3 only

The correct answer is 1, 2 and 3 only.

Key Points

  • A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
  • The following include FDIs-
    • Subsidiaries of foreign companies in India.
    • Majority of foreign equity holding in Indian companies.
    • Day to Day operations of the company.
    • It is a major source of nondebt financial resources.
    • Companies exclusively financed by foreign companies.
  • Hence 1, 2 and 3 are correct.

Important Points

  • FDI is different from foreign portfolio investment where the foreign entity merely buys equity shares of a company. Hence statement 4 is not correct.
  • Sectors that come under up to 100% Automatic Route' category are
    • Infrastructure Company in the Securities Market: 49%
    • Insurance: up to 74%
    • Medical Devices:up to 100%
    • Pension: 49%
    • Petroleum Refining (By PSUs): 49%
    • Power Exchanges: 49%

Additional Information

There are a few industries where FDI is strictly prohibited under any route. These industries are

  • Atomic Energy Generation
  • Any Gambling or Betting businesses
  • Lotteries (online, private, government, etc)
  • Investment in Chit Funds
  • Nidhi Company
  • Agricultural or Plantation Activities
  • Trading in TDR’s
  • Cigars, Cigarettes, or any related tobacco industry 

Related Questions

Foreign investment can be made through which of the following routes ? (i) Foreign Direct Investment (FDI) (ii) Foreign Portfolio Investment (FPI) (iii) Private Equity Investment (PEI) (iv) Foreign Venture Capital Investors (FVCI)  Choose the correct answer from the code given below : 
Foreign investment can be made through which of the following routes?
1. Foreign Direct Investment (FDI)
2. Foreign Portfolio Investment (FPI)
3. Private Equity Investment (PEI)
4. Foreign Venture Capital Investors (FVCI)
Choose the correct answer
Arrange the steps for building a portfolio for your teaching area from beginning to last step order  (A) Decide who will plan the portfolio  (B) Decide on the purpose of a portfolio  (C) Decide which products and how many samples to put in the portfolio  (D) Identify cognitive skills and dispositions  (E) Build the portfolio rubrics  Choose the correct answer from the options given below : 
Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the correct answer using the codes given below.
The three major problems faced in the process of partition of India were:
1. Areas were supposed to be distributed on the basis of religious majority.
2. No single belt of Muslim majority was the part of British India. They were concentrated in east and west.
3. Some Muslim majority areas did not want to be merged with Pakistan.
4. Another problem belonged to majority on both sides of border.
Select the correct answer from the options given below:
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Indian Finance Minister Arun Jaitley said on Monday that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors. Jaitley's assurances followed panic selling in the equity market on Friday that pushed the benchmark Nifty Index more than three percent lower in less than 30 minutes. It later recovered to end the day down 0.81 percent.  Courses of action: I. The sell-off was sparked by news that a large fund manager sold short-term bonds issued by Indian NBFC Dewan Housing Finance Corp at a sharp discount, raising fears of wider liquidity problem among NBFCs.  II. Indian equity markets have hit record highs this year despite sell-offs in domestic bonds and weakness in the rupee that has made it Asia's worst-performing currency this year.  III. A sell-off in equity markets, which have been one of the few bright spots in the economy, could further dent Modi's popularity among some of the small business and trading community, a core base of BJP supporters, who were already stung by two of his largest reform moves - demonetization and a nationwide Goods and Services Tax (GST). 
The question below consists of a set of labelled sentences. These sentences, when properly sequenced form a coherent paragraph. Select the mostlogical order of sentences from among the options. P: The basic reform they need is to change their holding structure to give them autonomy, as well as accountability, not a promise of no government interference.
Q: PSBs need systemic reform to overhaul their current decision-making structure and culture.
R: If the government does not want to free the banks from majority state ownership, it could at least put them at arms remove, by creating a holding company that would hold the PSB equity, appoint PSB boards and supervise their functioning.
S: It is surprising that after appointing the Banks Board Bureau, it has been given little role in reforming the PSBs.
Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a country. Which of the following is incorrect regarding FDI and FPI?
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: As a trade war looms, one of Chinese President Xi Jinping’s biggest weapons could be boycotts of American brands by his country’s legion of consumers. But Xi would also be risking collateral damage at home, The China operations of all-American brands ranging from Coca-Cola Co. and McDonald’s Corp. to Walt Disney Co. are co-owned by state-backed Chinese firms.  Which among the following arguments support the above statement in the best possible manner? Arguments: I. One of Coke’s main China partners is government-backed COFCO Corp., Shanghai Disneyland is part owned by a local consortium, and McDonald’s franchisee in the country is controlled by state-backed conglomerate Citic Ltd. and private-equity firm Citic Capital Holdings.  II. Even when Chinese companies don’t have direct ownership links with U.S. brands, boycotts or other non-tariff retaliation would hit the local partners of those American companies. III. The number of big clean wins in terms of striking against the other guy (American brands) - without accidentally punching your own guy (Chinese firms) in the face - is extremely large.
What are the main provisions of constitutional remedies available to Indian citizens under the Indian Constitution? Select the correct answer using the following codes : (a) The citizens can move the courts for enforcement of their Fundamental Rights. (b) The Supreme Court can issue necessary writs for enforcement of these rights. (c) The Parliament can suspend the right to constitutional remedies by two-thirds majority, which must also be the majority of its total membership. (d) The parliament can empower the courts, other than the Supreme Court, to exercise powers for enforcement of these rights without adversely affecting the powers of the Supreme Court.