UPSC Prelims 2001 · General Studies

Question 85: Economy and Social Development

The largest share of Foreign Direct Investment (1997-2000) went to

aFood and food product sector

bEngineering sector

cElectronics and electric equipment sector

dService sector

AnswerThe answer is (b).

The key says the engineering sector received the largest share of foreign direct investment from 1997 to 2000 among the sectors listed. Engineering here covers machinery, electrical equipment, transport and similar industries. Food products, electronics and the service sector took smaller shares. Remember that FDI in the late 1990s went largely into capital-goods industries, power and telecommunications rather than food processing.

Why each option is right or wrong

(a) Food products took a smaller share.
(b) Right as per the key: the engineering sector.
(c) Electronics and electrical equipment took a smaller share in the key.
(d) The service sector took a smaller share in the key.

Worth knowing: Sector groupings differ between sources, so the ranking depends on how engineering, electronics and services are classified.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.