Composite cap on Foreign Investment - General Economics & Indian Economy

Q.  Consider the following statements about composite cap on Foreign Investment.

1. Under the new policy, FDI, foreign portfolio investment and investments by non-resident Indians would be clubbed together under a composite cap.
2. It is applicable to banks and defense companies.
3. FPI investment can go up to 49% if it does not transfer control from Indians to foreigners.

Which of the above statements is/are correct?
- Published on 11 Jul 15

a. 1,2
b. 2,3
c. 1,3
d. All

ANSWER: All
 
Composite caps have been suggested for agriculture, manufacturing, airports, real estate, telecom and other sectors. It is not applicable to banks and defense companies.

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