In the last one decade, which one among the following sectors has attr...
In the last one decade, telecommunication has attracted the highest foreign direct investment inflows into India.
In the last one decade, which one among the following sectors has attr...
The correct answer is option 'D' - Telecommunication.
Explanation:
Foreign Direct Investment (FDI) refers to the investment made by a foreign company or individual in the business or assets of a company in another country. FDI plays a crucial role in boosting the economic growth and development of a country.
In the last decade, India has witnessed a significant increase in foreign direct investment inflows. Among the various sectors, the telecommunication sector has attracted the highest FDI inflows. Let's understand why the telecommunication sector is the top choice for foreign investors in India.
1. Rapid Growth and Potential: The telecommunication sector in India has experienced rapid growth in recent years. With the advent of smartphones and the internet, there has been a surge in demand for telecom services. This growth potential makes the sector attractive for foreign investors.
2. Increasing Mobile Penetration: India has one of the largest telecom markets in the world with a massive mobile subscriber base. The increasing mobile penetration rate and rising demand for data services present lucrative opportunities for investment in the telecommunication sector.
3. Government Initiatives: The Indian government has introduced various initiatives and policies to promote investment in the telecommunication sector. Initiatives like Digital India and Make in India have created a favorable investment climate for foreign companies.
4. Liberalization of Policies: The liberalization of policies related to the telecommunication sector has encouraged foreign investment. The government has relaxed FDI norms, allowing up to 100% FDI in telecom services, including infrastructure providers, mobile virtual network operators, and manufacturing of telecom equipment.
5. Technological Advancements: The telecommunication sector is constantly evolving with technological advancements like 5G, Internet of Things (IoT), and Artificial Intelligence (AI). These advancements provide opportunities for investors to capitalize on the growing demand for advanced telecom services.
6. Competitive Landscape: The telecommunication sector in India is highly competitive, with multiple players vying for market share. This competition has led to increased investment in infrastructure, network expansion, and the introduction of innovative services.
In conclusion, the telecommunication sector has attracted the highest foreign direct investment inflows into India in the last decade due to its rapid growth, increasing mobile penetration, government initiatives, liberalization of policies, technological advancements, and competitive landscape.