MCQ

Foreign Investment MCQ - Practice Questions with Answers

Solve 2 Foreign Investment questions for RAS/RPSC preparation.

Practice questions

Q1Assertion (A): The Adani-IHC aluminium project in Odisha will be developed in two phases. Reason (R): IHC is one of the world's largest investment firms, with a market capitalisation of $233 billion and a portfolio of more than 1,300 subsidiaries. Select the correct answer using the codes below:

A Both A and R are true and R is the correct explanation of A

B Both A and R are true but R is NOT the correct explanation of A

C A is true but R is false

D A is false but R is true

Explanation

Assertion is true: the project will be developed in two phases, with about ₹66,000 crore in Phase I and ₹44,000 crore in Phase II. The Reason is also true: IHC has a market capitalisation of $233 billion and over 1,300 subsidiaries. However, IHC's size does not explain why the project is being phased; phasing relates to the scale and sequencing of the project's development (land acquisition, approvals and infrastructure), so R is not the correct explanation of A.

Q2With reference to the aluminium project announced in Odisha in July 2026, consider the following statements: 1. Adani Enterprises and the UAE's International Holding Company (IHC) will form a 50:50 joint venture to develop the project. 2. The total investment in the project is approximately ₹66,000 crore. Which of the statements given above is/are correct?

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

Explanation

Statement 1 is correct: Adani Enterprises and the UAE's IHC signed an MoU to form a 50:50 joint venture for the Odisha aluminium project. Statement 2 is incorrect: the total investment is approximately ₹1.08 lakh crore ($11.5 billion); ₹66,000 crore is only the Phase I investment, while Phase II accounts for a further ₹44,000 crore.

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