Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India 2. Majority foreign equity holding in Indian companies 3. Companies exclusively financed by foreign companies 4. Portfolio investment Se

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Submitted by examrobotsa on

Q: 3 (IAS/2012)
Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Select the correct answer using the codes given below :

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).