Economics · Economy
Analyze the following statements regarding the key instruments and policy components used by India to manage Foreign Investment (FDI/FPI): Statement I: The Foreign Contribution Regulation Act (FCRA) primarily governs the receipt of Foreign Portfolio Investment (FPI) into Indian corporate debt and equity markets. Statement II: The Automatic Route for FDI signifies that the foreign investor must obtain prior clearance from the Reserve Bank of India (RBI) before making an investment. Statement III: The Foreign Investment Promotion Board (FIPB), which was the single-window approval agency for Government Route FDI, was abolished in 2017 to enhance the Ease of Doing Business. Statement IV: The concept of Sectoral Caps for FDI is a crucial policy tool used by the Government of India to regulate sensitive domestic sectors. Which of the above statements are factually correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only Statement II and Statement IV
- 2Only Statement I, Statement II, and Statement III
- 3Only Statement III and Statement IV✓
- 4Only Statement I and Statement II
Correct answer
Only Statement III and Statement IV
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