Q: 3 (IAS/2012)
question_subject:
Economics
question_exam:
IAS
stats:
0,230,210,95,38,77,230
keywords:
{'foreign direct investment': [0, 0, 2, 7], 'foreign equity holding': [0, 0, 0, 1], 'foreign companies': [0, 1, 0, 1], 'indian companies': [0, 1, 0, 2], 'portfolio investment': [0, 1, 0, 2], 'subsidiaries': [0, 0, 0, 1], 'companies': [0, 0, 0, 1], 'india': [8, 1, 7, 13]}
The correct answer is option 1, 2 and 3 only.
Option 1 is correct because subsidiaries of foreign companies in India involve the direct ownership and control of a company by a foreign entity.
Option 2 is correct because majority foreign equity holding in Indian companies involves direct investment of foreign capital in Indian companies.
Option 3 is correct because companies exclusively financed by foreign companies are directly owned and controlled by foreign entities.
Option 4, portfolio investment, refers to indirect investment through the purchase of stocks or bonds, and does not involve direct ownership or control of a company, so it does not include Foreign Direct Investment (FDI).