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With reference to the Foreign Direct Investment (FDI), consider the following statements:
1. It is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.
2. In Government-approval route the government's approval is mandatory and the company will have to file an application through Foreign Investment Facilitation Portal.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the Foreign Direct Investment (FDI), consider the fo...
The Foreign Direct Investment into India is continuously increasing since 2014-15. In the last seven financial years, over 443 US billion dollars’ worth of FDI inflows have come into the country.
  • Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.
  • With FDI, foreign companies are directly involved with day-to-day operations in the other country.
  • FDI enters in India through either of the two routes:
  • Automatic route
    • The non-resident or Indian company does not require prior nod of the RBI or government of India for FDI.
  • Government-approval route
    • The government's approval is mandatory and the company will have to file an application through Foreign Investment Facilitation Portal.
Hence both statements are correct.
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With reference to the Foreign Direct Investment (FDI), consider the following statements:1. It is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.2. In Government-approval route the governments approval is mandatory and the company will have to file an application through Foreign Investment Facilitation Portal.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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