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Foreign direct investment MCQ - Practice Questions with Answers

Solve 1 Foreign direct investment questions for RAS/RPSC preparation.

Practice questions

Q1In India's defence sector, the foreign direct investment limit under the automatic route has been increased to what percentage?

A 51%
B 49%
C 74%
D 100%
Explanation

For the 2022-cycle question, the relevant policy position is that foreign direct investment in the defence sector under the automatic route was raised to 74%. The 49% figure was the earlier automatic-route ceiling and is therefore outdated for this question. The 51% figure is not the notified automatic-route limit for defence. The 100% figure is possible only under the government route in specific cases involving access to modern technology or other recorded reasons, not as the automatic-route limit.

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