Acme Ai
A
अ
Question No. 253Interactive Test Mode
00:00
+2-0.66

Q253. Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

Consider the following:

  1. Foreign currency convertible bonds
  2. Foreign institutional investment with certain conditions
  3. Global depository receipts
  4. Non-resident external deposits

Which of the above can be included in Foreign Direct Investments?

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2021 • Indian Economy

Correct Answer: Option (A) — 1, 2 and 3

Concept & Option Breakdown

Standard Reference Verified
  • 1, 2, and 3 are included: FCCBs and GDRs are equity-linked instruments that can be converted into equity shares, thereby constituting FDI. Under Indian regulations, if foreign portfolio/institutional investment (FII/FPI) in an Indian company exceeds 10% of the post-issue paid-up equity, it is reclassified as FDI.
  • 4 is excluded: Non-Resident External (NRE) deposits are bank deposits and debt/portfolio flows, not direct equity or managerial ownership in enterprises, hence excluded from FDI.
Reviewed by Avinash Sir & Acme AI Research Team

Practice Full-Length & Sectional Prelims Mocks on this Interface

50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.

Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2021 (Q253)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (A) — 1, 2 and 3

Related & Repeated Prelims PYQs (53)

Questions from other UPSC Prelims years testing the same or closely linked concept.

View Cluster in 3D Graph
2012 • Q27492% Match

Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India. 2. Majority foreign equity holding in In

Indian Economy • Indian Economic Planning & GrowthSolve
2020 • Q30786% Match

With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (a) It is the investment through capita

Indian Economy • Indian Economic Planning & GrowthSolve
2013 • Q27285% Match

Which of the following constitute a Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the cor

Indian Economy • Indian Economic Planning & GrowthSolve
2010 • Q24285% Match

In the context of governance, consider the following: 1. Encouraging Foreign Direct Investment inflows 2. Privatization of higher educational Institutions 3. Do

Indian Economy • Fiscal Policy & Public FinanceSolve
2013 • Q27384% Match

Which one of the following groups of items is included in India’s foreign-exchange reserves?

Indian Economy • Indian Economic Planning & GrowthSolve
2014 • Q27184% Match

With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of i

Indian Economy • Indian Economic Planning & GrowthSolve
2012 • Q13284% Match

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

Indian Economy • Indian Economic Planning & GrowthSolve
2011 • Q27984% Match

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best

Indian Economy • Indian Economic Planning & GrowthSolve
2017 • Q1584% Match

Which of the following has/have occurred in India after its liberalisation of economic policies in 1991? 1. The share of agriculture in GDP increased enormously

Indian Economy • Indian Economic Planning & GrowthSolve
1997 • Q21184% Match

The sum of which of the following constitutes Broad Money in India? 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks 4. Oth

Indian Economy • Banking & Financial SystemSolve
2022 • Q30483% Match

Which of the following activities constitute a real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics

Indian Economy • Indian Economic Planning & GrowthSolve
2015 • Q18283% Match

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

Indian Economy • Indian Economic Planning & GrowthSolve
2020 • Q12783% Match

With reference to the Indian economy, consider the following statements: 1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Dep

Indian Economy • Indian Economic Planning & GrowthSolve
2002 • Q31783% Match

Global capital flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experien

Indian Economy • External Sector & TradeSolve
2022 • Q25183% Match

Consider the following statements: 1. Tight monetary policy of the US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest

Indian Economy • Indian Economic Planning & GrowthSolve
2010 • Q13583% Match

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements: 1. The assets in the National

Indian Economy • Fiscal Policy & Public FinanceSolve
2024 • Q13983% Match

Consider the following statements: 1. In India , Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of Indi

Indian Economy • Banking & Financial SystemSolve
2002 • Q24582% Match

With reference to the Indian Public Finance, consider the following statements: 1. External liabilities reported in the Union Budget are based on historical exc

Indian Economy • Fiscal Policy & Public FinanceSolve
2001 • Q13782% Match

Consider the following: 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are components(s) of internal debt?

Indian Economy • Fiscal Policy & Public FinanceSolve
2002 • Q20582% Match

Consider the following: 1. Currency with the public 2. Demand deposits with banks 3. Time deposits with banks Which of these are included in Broad Money(M3) in

Indian Economy • Indian Economic Planning & GrowthSolve
2009 • Q21982% Match

Consider the following: 1. Fringe Benefit Tax 2. Interest Tax 3. Securities Transaction Tax Which of the above is/are Direct Tax/Taxes?

Indian Economy • Fiscal Policy & Public FinanceSolve
2011 • Q27782% Match

Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

Indian Economy • Indian Economic Planning & GrowthSolve
2016 • Q12982% Match

What is/are the purpose/purposes of the Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? 1. To bring the idle gold lying with Indian ho

Indian Economy • Indian Economic Planning & GrowthSolve
2000 • Q28582% Match

Consider the following statements: The Indian rupee is fully convertible: 1. in respect of Current Account of Balance of payment 2. in respect of Capital Accoun

Indian Economy • Indian Economic Planning & GrowthSolve
2001 • Q9282% Match

Consider the following organisations: 1. International Bank for Reconstruction and Development 2. International Finance Corporation 3. International Fund for Ag

General Knowledge (1995-2010) • MiscellaneousSolve
2010 • Q31082% Match

Which of the following is/are treated as artificial currency?

Indian Economy • Indian Economic Planning & GrowthSolve
2023 • Q30181% Match

Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market How many of the above are included in cap

Indian Economy • Indian Economic Planning & GrowthSolve
2016 • Q23481% Match

Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machiner

Indian Economy • Indian Economic Planning & GrowthSolve
1996 • Q34681% Match

Consider the following statements : Most international agencies which fund Development Progr-amme in India on intergovernmental bilateral agreements, mainly pro

Indian Economy • Indian Economic Planning & GrowthSolve
2002 • Q28381% Match

Consider the following statements: Full convertibility of the rupee may mean: 1. Its free float with the international currencies 2. Its direct exchange with an

Indian Economy • Indian Economic Planning & GrowthSolve
2001 • Q22281% Match

Consider the following taxes: 1. Corporation tax 2. Customs duty 3. Wealth tax 4. Excise duty Which of these is/are indirect taxes?

Indian Economy • Fiscal Policy & Public FinanceSolve
2007 • Q31281% Match

Participatory Notes (PNs) are associated with which one of the following? (a) Consolidated Fund of India (b) Foreign Institutional Investors (c) United Nations

Indian Economy • Indian Economic Planning & GrowthSolve
2012 • Q27581% Match

Consider the following statements: The price of any currency in international market is decided by the 1. World Bank 2. Demand for goods/services provided by th

Indian Economy • Indian Economic Planning & GrowthSolve
2020 • Q23081% Match

In the context of the Indian economy, non-financial debt includes which of the following? 1. Housing loans owed by households 2. Amounts outstanding on credit c

Indian Economy • Indian Economic Planning & GrowthSolve
2021 • Q30681% Match

With reference to India, consider the following statements: 1. Retail investors through Demat account can invest in ‘Treasury Bills’ and ‘Government of India De

Indian Economy • Indian Economic Planning & GrowthSolve
2022 • Q21281% Match

Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?

Indian Economy • Fiscal Policy & Public FinanceSolve
2010 • Q30981% Match

With reference to India, consider the following: 1. Nationalization of Banks 2. Formation of Regional Rural Banks 3. Adoption of villages by Bank Branches Which

Indian Economy • Banking & Financial SystemSolve
2010 • Q13681% Match

A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like the UK and France. Why?

Indian Economy • Indian Economic Planning & GrowthSolve
2013 • Q19181% Match

Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The corre

Indian Economy • Indian Economic Planning & GrowthSolve
2020 • Q3781% Match

In India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops. 2

Indian Economy • Agriculture & Rural EconomySolve
2019 • Q25781% Match

Consider the following statements: 1. Most of India’s external debt is owed by governmental entities. 2. All of India’s external debt is denominated in US dolla

Indian Economy • Indian Economic Planning & GrowthSolve
2022 • Q14581% Match

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Indian Economy • Banking & Financial SystemSolve
2003 • Q44081% Match

With reference to Government of India’s decision regarding Foreign Direct Investment (FDI) during the year 2001-02 consider the following statements: 1. Out of

General Knowledge (1995-2010) • MiscellaneousSolve
2024 • Q29880% Match

Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments? (a) 1 only

Indian Economy • Indian Economic Planning & GrowthSolve
2018 • Q32280% Match

Consider the following statements: Human capital formation as a concept is better explained in terms of a process which enables: 1. Individuals of a country to

Indian Economy • Indian Economic Planning & GrowthSolve
2003 • Q43080% Match

Consider the following statements: 1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 percent of the paid up capita

General Knowledge (1995-2010) • MiscellaneousSolve
1997 • Q24880% Match

Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the p

Indian Economy • Fiscal Policy & Public FinanceSolve
2014 • Q27080% Match

With reference to the Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries an

Indian Economy • Indian Economic Planning & GrowthSolve
2020 • Q7480% Match

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreig

Indian Economy • Industry & InfrastructureSolve
1998 • Q29380% Match

Consider the following statements : The price of any currency in international market is decided by the: 1. World Bank 2. Demand for goods/services provided by

Indian Economy • Indian Economic Planning & GrowthSolve
2013 • Q30280% Match

Who among the following constitute the National Development Council? 1. The Prime Minister 2. The Chairman, Finance Commission 3. Ministers of the Union Cabinet

Polity • Constitution & AmendmentsSolve
2011 • Q19780% Match

Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services

Indian Economy • Banking & Financial SystemSolve
1996 • Q38480% Match

Hawala transactions relate to payments:

Indian Economy • Indian Economic Planning & GrowthSolve

More PYQs from Indian Economy (Indian Economic Planning & Growth)

Master the Indian Economy syllabus cluster by practicing these related previous year questions.

View All Indian Economy PYQs
2022 • Q249Indian Economic Planning & Growth

“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?

Indian EconomyPractice
2022 • Q250Indian Economic Planning & Growth

With reference to the Indian economy, consider the following statements: 1. An increase in Nominal Effective Exchange Rate (NEER) indicates the apprec

Indian EconomyPractice
2021 • Q252Indian Economic Planning & Growth

Consider the following statements: The effect of the devaluation of a currency is that it necessarily: 1. Improves the competitiveness of domestic exp

Indian EconomyPractice
2020 • Q254Indian Economic Planning & Growth

With reference to the international trade of India at present, which of the following statements is/are correct? 1. India’s merchandise exports are le

Indian EconomyPractice
2019 • Q255Indian Economic Planning & Growth

With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements: 1. AIIB has more than 80 member nations. 2. India is

Indian EconomyPractice
2019 • Q256Indian Economic Planning & Growth

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign curr

Indian EconomyPractice
2019 • Q258Indian Economic Planning & Growth

Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods

Indian EconomyPractice
2018 • Q259Indian Economic Planning & Growth

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to:

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 2021 Q253

What is the official answer for UPSC Prelims 2021 GS Paper I Question 253 (Indian Economy)?

The official UPSC answer key for this 2021 Indian Economy (Indian Economic Planning & Growth) question is Option (A): "1, 2 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2021 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

Beyond Previous Year Questions

Structured Prelims Practice & Mentorship

Pair previous year question analysis with full-length simulated mock tests and 1-on-1 faculty guidance.

APT 2027 • 50 Prelims Tests17% OFF

Acme Prelims Test Series (APT)

Built to eliminate 1/3rd negative marking losses and 50–50 option traps through structured simulation and NCERT-backed keys.

  • 50 High-Yield Tests: Subject Sectionals, Current Affairs, CSAT Paper II & Full-Length Simulators
  • 1/3rd Penalty & Trap Analytics: Identify whether marks are lost to over-attempting or conceptual gaps
  • Option-by-Option NCERT Keys: Detailed distractor analysis and elimination logic for every question
  • Custom PDF-to-Mock Generator: Convert your revision notes or current affairs PDFs into practice tests
Complete 50-Test Package
₹1,493₹1,799• Valid till Prelims 2027
1-on-1 Personal MentorshipCapped at 10 Seats

1-on-1 UPSC Mentorship with Avinash Sir

Weekly 1-on-1 strategy reviews, daily study accountability, and personalized MCQ attempt audits with an experienced UPSC mentor.

  • Weekly 1-on-1 Sessions: Direct mentorship with Avinash Sir (Former Plutus IAS Mentor, UPSC & UPPCS Mains Written)
  • APT 50-Test Series Included: Full Prelims GS1 & CSAT test series bundled at no additional cost
  • Mock Attempt & Elimination Audit: Question-by-question review to calibrate your risk and attempt accuracy
  • Prelims & Integrated Tracks: Available as dedicated Prelims mentorship or end-to-end Prelims + Mains guidance
Prelims & Integrated Tracks
17% OFF• Includes APT 50-Test Series