Indian Economy·MCQ Practice

FDI Policy and Trends — MCQ Practice

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Version 1Updated 5 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

With reference to India's FDI policy, consider the following statements: 1. Press Note 3 of 2020 requires government approval for all investments from countries sharing land borders with India 2. Defense sector allows 74% FDI under automatic route 3. Single-brand retail permits 100% FDI with mandatory local sourcing requirements 4. Coal mining sector prohibits foreign investment completely Which of the statements given above are correct?

Q2easy

Which of the following best describes the difference between FDI and FPI in India?

Q3hard

Consider the following sectors and their FDI limits: 1. Insurance - 74% 2. Defense - 49% 3. Multi-brand retail - 51% 4. Banking - 74% Which of the above combinations are correctly matched?

Q4medium

The Foreign Investment Facilitation Portal (FIFP) is primarily used for:

Q5medium

Which of the following statements about India's FDI policy evolution is most accurate?

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