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UPSC Prelims 2024 Paper-I 📅 16 Jun, 2024

Which of the following are typically included in Foreign Direct Investment (FDI)?
1. Reinvested earnings of foreign companies in India
2. Equity capital of foreign investors
3. Foreign currency non-resident (FCNR) deposits

Select the correct answer using the code given below:

A
1 and 2 only
B
2 and 3 only
C
1 and 3 only
D
1, 2 and 3
Result Summary
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APEDIA

UPSC Prelims
2024 • 16 Jun, 2024 • Paper-I
Which of the following are typically included in Foreign Direct Investment (FDI)?
1. Reinvested earnings of foreign companies in India
2. Equity capital of foreign investors
3. Foreign currency non-resident (FCNR) deposits

Select the correct answer using the code given below:
Correct Answer
1 and 2 only
Economy: Investment Models.Context: FDI components.Details: Foreign Direct Investment (FDI) generally consists of three components: equity capital, reinvested e......
💡 Analysis & Explanation
Economy
Investment Models.
Context
FDI components.
Details
Foreign Direct Investment (FDI) generally consists of three components: equity capital, reinvested earnings, and intra-company loans. Therefore, 1 and 2 are correct. Foreign currency non-resident (FCNR) deposits belong to the category of NRI deposits/debt creating inflows and are not considered FDI.