Overseas Investment by Indians — Prelims Questions

With reference to overseas investment by Indians, consider the following statements: 1. Under the automatic route, Indian companies can invest up to 400% of their net worth without prior RBI approval. 2. The Liberalized Remittance Scheme allows individuals to remit up to USD 300,000 per financial year. 3. Investments in defense sector abroad require government approval regardless of the amount. 4. Step-down subsidiaries can be established only through wholly owned foreign subsidiaries. Which of the statements given above are correct?

Which of the following best describes the primary difference between Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI)?

Consider the following regarding the Liberalized Remittance Scheme (LRS): 1. It covers both current and capital account transactions. 2. The annual limit is calculated on a calendar year basis. 3. Unused limit can be carried forward to the next year. 4. Investments under LRS are exempt from tax implications in India. Which of the above statements is/are correct?

Which of the following sectors typically require approval route for overseas investment by Indian companies?

With reference to recent changes in overseas investment policy, consider the following: 1. Enhanced due diligence is required for investments in countries sharing land borders with India. 2. Cryptocurrency-related investments abroad are completely prohibited. 3. Green finance investments receive preferential treatment under automatic route. 4. COVID-19 recovery measures included flexible repayment schedules for overseas borrowings. Which of the statements given above are correct?