Indian & World Geography·MCQ Practice

Foreign Investment — MCQ Practice

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Version 1Updated 8 Mar 2026

Interactive MCQ Practice

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

Q1medium

Which of the following statements regarding Foreign Direct Investment (FDI) in India is/are correct? 1. 100% FDI is allowed under the automatic route in the manufacturing sector. 2. FDI in the 'Lottery Business' is prohibited. 3. Foreign Portfolio Investment (FPI) is considered a component of FDI. Select the correct answer using the code given below:

Q2easy

Consider the following statements regarding the 'Automatic Route' for Foreign Direct Investment (FDI) in India: 1. It requires prior approval from the Reserve Bank of India (RBI). 2. It is available for all sectors, including those with national security implications. 3. Investors only need to notify the RBI post-investment. Which of the statements given above is/are correct?

Q3easy

Which of the following bodies is primarily responsible for formulating and implementing the Foreign Direct Investment (FDI) policy in India?

Q4medium

With reference to Foreign Portfolio Investors (FPIs) in India, consider the following statements: 1. FPIs can invest in both equity and debt markets. 2. The SEBI (Foreign Portfolio Investors) Regulations, 2019, merged the FII and QFI categories into the FPI framework. 3. FPIs are primarily regulated by the Reserve Bank of India (RBI). Which of the statements given above is/are correct?

Q5hard

Which of the following is NOT a prohibited sector for Foreign Direct Investment (FDI) in India?

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