- 07/03/2019 at 8:27 am #1308117EduGorillaKeymasterSelect Question Language :
Direction: Read the passage carefully and answer the questions that follow. Certain words are printed in bold to help you locate them while answering some of these.
Paragraph 1: Foreign direct investment (FDI) is the major monetary source for economic development in India. Foreign companies invest directly in fast-growing private Indian businesses to take benefits of cheaper wages and changing business environment in India. It was Manmohan Singh and P. V. Narasimha Rao who brought FDI in India, which subsequently generated more than one crore jobs. According to the Financial Times, in 2015 India overtook China and the US as the top destination for the Foreign Direct Investment. In the first half of 2015, India attracted investment of $31 billion compared to $28 billion and $27 billion of China and the US respectively. The Government of India has amended FDI policy to increase FDI inflow. In 2014, the government increased the foreign investment upper limit from 26% to 49% in the insurance sector. It also launched Make in India initiative in September 2014 under which FDI policy for 25 sectors was liberalized further.
Paragraph 2: Make in India, a type of Swadeshi movement covering 25 sectors of the economy, was launched by the Government of India in 2014 to encourage companies to manufacture their products in India. As per the current policy, 100% FDI is permitted in all the 25 sectors, except for space (74%), defense (49%) and news media (26%). Japan and India announced a US$12 billion Japan-India Make-in-India Special Finance Facility fund. After the launch, India received ₹16.40 lakh crore (US$260 billion) worth of investment commitments and investment inquiries worth ₹1.5 lakh crore (US$23 billion) between September 2014 to February 2016. As a result, India emerged as the top destination globally in 2015 for foreign direct investment (FDI), surpassing the USA and China, with US$63 billion FDI.
Paragraph 3: The “Make in India” initiative was launched on 25 September 2014 with the objective of job creation and skill enhancement in 25 sectors of the economy, by improving the quality standards and minimising the impact on the environment, to attract capital and technological investment in India. India jumped to 100th place out of 190 countries in the World Bank’s 2017 ease of doing business index, from 130th in 2016. In February 2017, the government appointed the United Nations Development Programme (UNDP) and the National Productivity Council to “to sensitize actual users and get their feedback on various reform measures”. As a result, now there is competition among the states of India to improve their current ranking on the ease of doing the business index.
Which of the following states the reason for the huge investments that were made in India after the launch of the ‘Make in India’ initiative?
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- The manufacturing of the products is to be done by Indian companies
- The products were made only for the domestic market
- The manufacturing process is to be completed in India
- All of the above
- None of these
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