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India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility. Which of the recent moves indicate the above statement?
  1. Easing of external commercial borrowing.
  2. Introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions.
  3. Increasing the foreign portfolio investment limits in the Indian debt markets.
  4. Allowing outbound FDI by Indian incorporated entities.
Select the correct answer code:
  • a)
    1, 2, 3 
  • b)
    1, 3, 4 
  • c)
    2, 3, 4 
  • d)
    1, 2, 3, 4
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
India has come a long way in liberating the capital account transactio...
India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility.
Some of the recent moves include increasing the foreign portfolio investment limits in the Indian debt markets, introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions and the easing of the external commercial borrowing framework by relaxing end-user restrictions. Inward FDI is allowed in most sectors, and outbound FDI by Indian incorporated entities is allowed as a multiple of their net worth.
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India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility. Which of the recent moves indicate the above statement? Easing of external commercial borrowing. Introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions. Increasing the foreign portfolio investment limits in the Indian debt markets. Allowing outbound FDI by Indian incorporated entities.Select the correct answer code:a)1, 2, 3b)1, 3, 4c)2, 3, 4d)1, 2, 3, 4Correct answer is option 'D'. Can you explain this answer?
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