FDI - GS question based on India Year Book

1)   From which country FDI is not allowed in India?

1) China
2) Bangladesh
3) Pakistan
4) USA

a. Only 3
b. Only 2 and 3
c. Only 1, 2 and 3
d. None of the above
Answer  Explanation 

ANSWER: None of the above

In the last three years, FDI from Pakistan too is being allowed under the Government route, in sectors/activities other than defense, space and atomic energy.

2)   Which of the following statement / s is / are correct with regards to FDI policy changes?

1) Foreign Airlines are not allowed to make foreign investment in air transport services owing to national security reasons.
2) FDI in telecom sector is recently approved upto 100% and in defense sector upto 49%.

a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Only 2

Foreign Airlines are now allowed to make foreign investment upto 49%, in scheduled and non-scheduled air transport services. FDI of 51%, under government approval in multi-brand retail is allowed. FDI in Railway infrastructure is recently approved upto 100%.