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Which of the following States of India received the highest Foreign Direct Investment (FDI) equity flow during April to September 2022?
- a)Gujarat
- b)Karnataka
- c)Tripura
- d)More than one of the above
- e)None of the above
Correct answer is option 'B'. Can you explain this answer?
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Which of the following States of India received the highest Foreign Di...
The correct answer is Karnataka.
Key Points
Foreign Direct Investment (FDI):
- A Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.
- FDI lets an investor purchase a direct business interest in a foreign country.
- Apart from being a critical driver of economic growth, FDI has been a major non-debt financial resource for the economic development of India.
- Components:
- Equity capital: It is the foreign direct investor’s purchase of shares of an enterprise in a country other than its own.
- Reinvested earnings: These comprise the direct investors’ share of earnings not distributed as dividends by affiliates, or earnings not remitted to the direct investor.
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), India's cumulative FDI inflow stood at US$ 871.01 billion between April 2000-Sept 2022; this was mainly due to the government's efforts to improve the ease of doing business and relax FDI norms.
- The state that received the highest FDI during this period were:
- 1st - Karnataka at US$ 22.07 billion,
- 2nd - Maharashtra (US$ 15.43 billion),
- 3rd - Delhi (US$ 8.18 billion),
- 4th - Gujarat (US$ 2.70 billion) and
- 5th - Haryana (US$ 2.79 billion). Hence, option 2 is correct.
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Which of the following States of India received the highest Foreign Direct Investment (FDI) equity flow during April to September 2022?a)Gujaratb)Karnatakac)Tripurad)More than one of the abovee)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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