Question : Which sector witnessed the largest inflow of foreign direct investment (FDI) after the 1991 economic policy?
Option 1: Manufacturing
Option 2: Agriculture
Option 3: Services
Option 4: Infrastructure
Correct Answer: Services
Solution : The correct answer is (c) Services.
The liberalization measures and economic reforms opened up opportunities in the services sector, including areas such as information technology, telecommunications, banking and financial services, business process outsourcing (BPO), and other knowledge-intensive services. These sectors attracted significant foreign investments due to the availability of skilled manpower, cost competitiveness, and the growing global demand for services.
Question : The 1991 economic policy allowed for automatic approval of foreign direct investment (FDI) in which sector?
Option 1: Banking
Option 3: Telecommunications
Option 4: Defense
Question : What was the main objective of financial sector reforms in the 1991 economic policy?
Option 1: Encouraging foreign direct investment (FDI)
Option 2: Strengthening the banking sector
Option 3: Promoting rural credit
Option 4: Controlling inflation
Question : Which industry was delicensed and allowed for automatic approval of foreign direct investment (FDI) in the 1991 economic policy?
Option 1: Telecom
Option 2: Aviation
Option 3: Banking
Option 4: Information technology
Question : What is the full form of FDI?
Option 1: Foreign Direct Input
Option 2: Foreign Direct Investment
Option 3: Fiscal Direct Investment
Option 4: Fiscal Direct Input
Question : The 1991 economic policy allowed for the entry of foreign investment in which sector?
Option 1: Education
Option 2: Media and entertainment
Option 3: Defense
Option 4: Agriculture
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