Question : What was the main purpose of allowing foreign direct investment (FDI) in India?
Option 1: Enhancing employment opportunities
Option 2: Increasing government revenue
Option 3: Promoting sustainable development
Option 4: Attracting advanced technology
Correct Answer: Attracting advanced technology
Solution : The correct answer is (d) Attracting advanced technology
One of the primary purposes of allowing foreign direct investment (FDI) in India was to attract advanced technology. By allowing foreign companies to invest in India, the government aimed to bring in new technologies, expertise, and managerial practices that could contribute to the country's economic development.
Foreign companies often bring advanced technologies and know-how that may not be readily available domestically. This transfer of technology can help enhance productivity, improve the quality of goods and services, and promote innovation in various sectors of the Indian economy.
Additionally, attracting FDI can have positive spillover effects on other areas of the economy, such as employment opportunities, government revenue, and sustainable development. While these factors are also important considerations, the primary purpose of allowing FDI was to tap into advanced technologies and knowledge that foreign investors can bring to India, thereby boosting the country's industrial capabilities and competitiveness.
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Question : Foreign investment is known by which name in India?
Option 1: SME (Small and Medium-sized Enterprises)
Option 2: MDI (Management Development Institute)
Option 3: FDI (Foreign Direct Investment)
Option 4: CII (Confederation of Indian Industry)
Question : In India, special economic zones were established to enhance:
Option 1: Free trade
Option 2: Foreign Investment
Option 3: Employment
Option 4: Technology Development
Question : The demand for reservation by Backward Castes in India is primarily aimed at:
Option 1: Increasing foreign investment
Option 2: Promoting religious harmony
Option 3: Achieving social and economic equity
Option 4: Enhancing technological skills
Question : The 1991 economic policy in India aimed to address:
Option 1: Increasing government control in the economy
Option 2: High inflation and fiscal deficit
Option 3: Excessive privatization of public enterprises
Option 4: Declining foreign direct investment (FDI)
Question : Which of the following is not a measure to reduce rural poverty in India?
Option 1: Increasing agricultural productivity
Option 2: Promoting non-farm employment opportunities
Option 3: Enhancing access to credit facilities for farmers
Option 4: Privatization of public sector enterprises
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