Acme Ai
A
अ
Question No. 274Interactive Test Mode
00:00
+2-0.66

Q274. Which of the following would include Foreign Direct Investment in India? 1. Subsidiaries of foreign companies in India. 2. Majority foreign equity holding in Indian companies. 3. Companies exclusively financed by foreign companies. 4. Portfolio investment. Select the correct answer using the codes given below:

Which of the following would include Foreign Direct Investment in India?

  1. Subsidiaries of foreign companies in India.
  2. Majority foreign equity holding in Indian companies.
  3. Companies exclusively financed by foreign companies.
  4. Portfolio investment. Select the correct answer using the codes given below:
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 2012 • Indian Economy

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

Concept & Option Breakdown

Standard Reference Verified

Statements 1, 2, and 3 are correct: FDI involves lasting management interest and controlling influence, including establishing subsidiaries, holding majority equity (>10% or >50%), or establishing fully financed entities. Statement 4 is incorrect: Portfolio investment involves non-controlling, liquid investments in equity/debt instruments and is categorized separately as Foreign Portfolio Investment (FPI/FII).

Elimination Heuristic & Exam Approach

FDI and Portfolio Investment are mutually exclusive categories of foreign investment. Eliminating 4 leaves option (d).

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 2012 (Q274)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — 1, 2 and 3 only

Related & Repeated Prelims PYQs (23)

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

View Cluster in 3D Graph
2021 • Q25392% Match

Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipts 4. Non-r

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
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 • Q21183% 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
2012 • Q13283% 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
2020 • Q30783% 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
2010 • Q24282% 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
2002 • Q31782% 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
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
2011 • Q27781% 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 • 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
2002 • Q20581% 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
2010 • Q13581% 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
2013 • Q27381% Match

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

Indian Economy • Indian Economic Planning & GrowthSolve
1997 • Q24881% 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
2022 • Q30481% 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
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
2011 • Q27981% 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
2014 • Q27180% 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
2003 • Q44080% 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
2002 • Q28380% 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
2022 • Q21280% 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
1996 • Q34680% 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

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
2016 • Q77Indian Economic Planning & Growth

What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? 1. Promoting mineral exploration activities in mineral-rich districts 2.

Indian EconomyPractice
2016 • Q178Indian Economic Planning & Growth

What is/are the purpose/purposes of the Marginal Cost of the Fund-Based Lending Rate (MCLR) announced by RBI? 1. These guidelines help improve the tra

Indian EconomyPractice
2015 • Q78Indian Economic Planning & Growth

With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? 1. It is a Public

Indian EconomyPractice
2015 • Q179Indian Economic Planning & Growth

‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for:

Indian EconomyPractice
2015 • Q180Indian Economic Planning & Growth

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

Indian EconomyPractice
2015 • Q181Indian Economic Planning & Growth

‘Basel III Accord’ or simply ‘Basel III’ often seen in the new, seeks to:

Indian EconomyPractice
2015 • Q182Indian Economic Planning & Growth

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 i

Indian EconomyPractice
2015 • Q266Indian Economic Planning & Growth

With reference to Indian economy, consider the following statements: 1. The rate of growth of Real Gross Domestic Product has steadily increased in th

Indian EconomyPractice

Frequently Asked Questions — UPSC Prelims 2012 Q274

What is the official answer for UPSC Prelims 2012 GS Paper I Question 274 (Indian Economy)?

The official UPSC answer key for this 2012 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "1, 2 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2012 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?

FDI and Portfolio Investment are mutually exclusive categories of foreign investment. Eliminating 4 leaves option (d).

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