Question

Which of the following sectors attracted highest Foreign Direct Investment (FDI) during the last decade?
1. Telecom
2. Power
3. Agriculture
4. Retail

Answer 1

Correct Answer - Option 1 : Telecom

The correct answer is Telecom.

• Telecom sectors attracted the highest Foreign Direct Investment (FDI) during the last decade.​

• When foreign companies are directly involved in the day-to-day operations of another country by taking control of ownership in a business entity, it is known as foreign direct investment.
  • Foreign direct investment is an important monetary source for India's economic development.
  • FDI attracts not only money but also knowledge, skill, technology
  • FDI takes place in open economies that have skilled workforce and growth potential.
  • India attracted FDI inflows of $27.37 billion during the first four months (April-July) in 2020-2021.
  • Karnataka is the top recipient with a 45% share in FDI equity inflows as of July 2021, followed by Maharashtra and Delhi.

Sector	FDI allowed (India as per the year 2020 in %)
Telecom	100 (Automatic up to 49 and above 49 under government route)
Power Exchanges	49 (Automatic)
Agriculture	100 (Automatic)