[Solved] In the last one decade, which one among the following sector (2024)

FAQs

[Solved] In the last one decade, which one among the following sector? ›

The correct answer is Services sector.

The correct answer is Services Sector. For economic growth, Foreign Direct Investment (FDI) has been a major non-debt financial resource for the economic development of India.

The present policy prohibits Foreign Direct Investments (FDI) in the following sectors: Gambling and Betting; Lottery business (including government/ private lottery, online lotteries etc); Activities /sectors which are not open to private sector investment (eg, atomic energy /railways);

Non-scheduled- 100% Automatic (Helicopter and Seaplanes) Scheduled – up to 49% Automatic and the rest Government Route (Domestic and Regional Services) Services in the Aviation sector- 100% Automatic. Asset Reconstruction Companies: 100% Automatic.

During the last decade, the services sector has attracted the highest FDI inflows of all sectors.

Foreign direct investment in the United States was concentrated in the U.S. manufacturing sector, which accounted for 42.4 percent of the position. There was also sizable investment in finance and insurance (12.5 percent) and wholesale trade (9.7 percent).

The most common type of FDI is Horizontal FDI, which primarily revolves around investing funds in a foreign company belonging to the same industry as that owned or operated by the FDI investor.

Greenfield investment refers to an investment that brings new and additional resources and assets to the enterprise and often leads to gross fixed capital formation (GFCF).

In Multi-brand product retail trading, only 51% FDI is allowed. There are two routes in India's FDI they are Automatic Route and Government Route. In single-brand retail trading, 100 percent Foreign Direct Investment (FDI) is allowed. In the wholesale trading, a 100 % FDI is allowed under the automatic route.

UPSC Mains. Q. What is the limit of FDI permitted in the Road and Highways Sector in India? Notes: In India, 100% FDI has been allowed for roads and highways sector allowed under the automatic route.

Which one of the following is responsible for giving foreign direct investments FDI approval through the government route in India? ›

Explanation: In India, the Department of Promotion of Industry and Internal Trade is the nodal Department for the formulation of the policy of the Government on Foreign Direct Investment (FDI).

FDI in Figures April 2023

Nevertheless, the United States and China were the top two FDI destinations worldwide in 2022, followed by Brazil, receiving peak level of inflows partly due to increased reinvestment of earnings.

Over the last three decades, FDI to emerging economies has increased from about 5% in 2000 to almost 19% in 2020 [49].

1. Energy sector. The energy sector covers companies that do business in the oil and natural gas industry.

The different types of FDIs are horizontal FDI, vertical FDI, conglomerate FDI and platform FDI.

Foreign direct investments are commonly categorized as horizontal, vertical, or conglomerate. With a horizontal FDI, a company establishes the same type of business operation in a foreign country as it operates in its home country.

Foreign direct investment (FDI) takes place when a company, multinational corporation or individual from one country invests in another country's assets or takes an ownership stake in its companies.

What is the most risky type of direct investment whereby a company builds a subsidiary from scratch in a foreign country ›

Disadvantages of a Greenfield Investment

There are, of course, potential disadvantages as well, such as the following: An extremely high-risk investment – a greenfield investment is the riskiest form of foreign direct investment.

The correct answer is e. A Chinese company buying a microprocessor factory in Korea. Direct foreign investment occurs when a foreign entity runs the investment itself. In this case, the Chinese firm is buying the factory in Korea to increase output.

Top 5 sectors receiving highest FDI Equity Inflow during FY 2021-22 are Computer Software & Hardware (24.60%), Services Sector (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech.

The FDI cap on the single-brand retail trading is set at 100% through the automatic route. The automatic route means where the foreign investor or the Indian company does not require any prior permission or approval from the Reserve Bank of India or the Government of India.

Earlier FDI regime permitted 49% FDI participation in the equity of a company under automatic route. FDI above 49% was permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and 'state-of-art' technology in the country.

Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

International trade is not a type of direct foreign investment. International Trade refers to the exchange of products and services from one country to another.

The Reserve Bank of India regulates Foreign Exchange Activities under the Approval/ Government Route.

Which of the following best describes foreign direct investment (FDI)? A firm's direct investment in production and/or service activities abroad.

Which of the following is the main benefit that FDI provides to the host country? ›

It increases national sovereignty. Which of the following is one of the main benefits that FDI provides to the home country? The home country's balance of payments benefits from the inward flow of foreign earnings.

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Computer hardware and software sector in India received the highest share in FDIs amounting to over 14 billion U.S. dollars in fiscal year 2022.

The computer software and hardware sector attracted the highest inflows during the first six months of this fiscal. It was followed by services, trading, chemicals, automobile and construction (infrastructure) activities. The country has registered its highest-ever FDI inflows of $84.84 billion in 2021-22.

Singapore is ranked one FDI provider to India. The small island nation has invested $15.9 billion in FY22 which is accounted for 27 per cent of India's total FDI received. USA is India's second biggest investor with FDI of $10.5 billion, with 18 per cent of total FDI.

The United States is the top destination of inward foreign direct investment. Source: IMF Data, Coordinated Direct Investment Survey.

India continues to be an attractive destination for foreign investment, ranking as the world's seventh-largest recipient of FDI in 2021. FDI is regulated primarily by India's Department of Promotion of Industry and International Trade (DPIIT), under its Foreign Exchange Management Act regime (FEMA Regime).

Who are the Top Recipients? India's Statistics: India received the highest annual FDI inflows of USD 84,835 million in FY 21-22, overtaking last year's FDI by USD 2.87 billion. In 2021, FDI inflows increased from USD 74,391 million in FY 19-20 to USD 81,973 million in FY 20-21.

The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York (BEA).

Which country is the leading source of FDI in the United States? ›

In 2021, no country had a higher foreign direct investment (FDI) position in the United States than Japan, followed by the Netherlands and Canada. At that time, Japan had over 690 billion U.S. dollars invested in the United States.

1. Warren Buffett. As one of the world's wealthiest investors, Warren Buffett almost needs no introduction. He's CEO and chairman of Berkshire Hathaway, a $665 billion conglomerate that acts as the holding company for Buffett's investments, both its wholly-owned companies and its stocks.

BlackRock

BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022.

The United States took the leadership position as the largest recipient of foreign direct investment in 2019 and consolidated that position in 2020, mainly driven by higher direct investments from Japan, Germany, and the Netherlands.