As per the Economic Survey, 2023, which of the following statements describe(s) the trend of Foreign Direct Investment in India?
- It has decreased due to the less participation of the private sector.
- It has increased compared to the prepandemic levels.
- It has increased rapidly without decreasing in any Financial Year after the telecom sector was entirely reformed.
- It has decreased due to a weak global economic situation.
Select the correct answer using the codes given below.
- AOption (a)
Only 1 and 3
- BOption (b)
2 and 4
- COption (c)
1, 2 and 3
- DOption (d)
Only 4
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Correct answer
Only 4
Why this answer is correct
The correct answer is Only 4.
Key Points
- The Economic Survey 2023 indicates that the trend of FDI in India is expected to rebound. During the first half of the fiscal year, Singapore emerged as the top investor, followed by Mauritius, the UAE, the USA, the Netherlands, and Japan. This suggests a positive trajectory for FDI inflows, contrary to the statement that it has decreased due to less private sector participation. Hence statement 1 is incorrect.
- Latest data released by RBI in the monthly bulletin showed that during the previous financial year, after adjusting for repatriation and disinvestment by foreign investors, direct inflows were 27% lower at $41.6 billion.
- It has increased compared to the prepandemic levels. Hence statement 2 is incorrect.
- As per the Economic Survey 2022-23, the Indian economy is expected to grow at 7% (in real terms) for the year ending March 2023, following an 8.7% growth in the previous financial year.
- The Economic Survey 2023 suggests a positive trajectory for FDI inflows, contrary to the statement that it has increased rapidly without decreasing in any financial year after the telecom sector was entirely reformed.. Hence statement 3 is incorrect.
- Global FDI collapsed in 2020,due to the pandemic, the recent Russia Ukraine War, and Trade war are also one reasons. So weak global situation was one of the reasons for decrease in FDI. Hence statement 4 is correct.$