Foreign investment — UPSC Prelims PYQs
10 questions in this bank come from Foreign investment, spanning UPSC Prelims papers from 2011 to 2021. Every question here carries all four options, the correct answer and a full explanation.
It has appeared in 6 of the last 16 papers, most heavily in 2020 with 3 questions. That makes it an occasional area rather than a fixture.
The themes examined most often within it are Foreign Direct Investment (6), Foreign Financial Management (2), Investment Measures (2), agriculture's economic role (1) and Currency denomination of external debt (1). Those counts are of questions in which the theme is examined, not merely mentioned.
Between them they draw on 10 distinct themes, so this is a broader area than a single revision note can cover. That is 0.7% of the 1433 questions in the bank — useful for deciding how much revision time it deserves.
It has come up more often lately — roughly 1.4 questions a year across the last five papers, against 0.5 before that.
It was not examined in 10 of those papers. Each question below links to its full explanation and to related questions on the same theme from other years, so a weak area can be worked through in one pass rather than hunted for paper by paper.
UPSC Prelims 20211 question
UPSC Prelims 20203 questions
- Economy
With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below:
- Economy
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
- Economy
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not depending on short-term foreign borrowings 2. Opening up to more foreign banks 3. Maintaining full capital account convertibility Select the correct answer using the code given below:
UPSC Prelims 20192 questions
- Economy
Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
- Economy
Consider the following statements: 1. Most of India’s external debt is owed by governmental entities. 2. All of India’s external debt is denominated in US dollars. Which of the statements given above is/are correct?
UPSC Prelims 20171 question
UPSC Prelims 20121 question
UPSC Prelims 20112 questions
- Economy
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
- Economy
Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable policies which attract greater FDI and more funds from FIIs. Which of the above action(s) can help in reducing the current account deficit?