UPSC Prelims 2004 · General Studies
Question 23: Economy and Social Development
In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?
AnswerThe answer is (d).
Among the options, telecommunications drew the largest FDI inflows in the decade after liberalisation, as foreign investors entered basic and cellular services alongside Indian companies. Chemicals other than fertilizers and food processing attracted much less. 'Services' is a broad heading rather than one industry, and the key treats telecommunication as the leading sector.
Why each option is right or wrong
- (a) Chemicals other than fertilizers drew a small share of inflows.
- (b) A broad heading; the key treats telecommunication as the leading sector.
- (c) Food processing drew a small share of inflows.
- (d) Correct: telecommunication attracted the highest FDI among these.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2004, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.