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GS Paper IUPSC Prelims 2022
Industry & Infrastructure
Question No. 72Interactive Test Mode
00:00
+2-0.66

Q72. With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?

  1. They can sell their own goods in addition to offering their platforms as market-places.
  2. The degree to which they can own big sellers on their platforms is limited.

Select the correct answer using the code given below:

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2022 • Indian Economy

Correct Answer: Option (B) — 2 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is incorrect: India's FDI policy allows 100% FDI under automatic route in marketplace model of e-commerce, but 0% FDI is permitted in inventory-based models. Marketplace entities cannot sell their own inventory.
  • Statement 2 is correct: The FDI policy puts curbs on e-commerce platforms holding equity stakes or controlling inventory of sellers operating on their platforms.
Elimination Heuristic & Exam Approach

India strictly forbids FDI-funded platforms from adopting an inventory-led model (selling directly), preserving the space for domestic retailers/MSMEs.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2022 (Q72)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Industry & Infrastructure
Official Answer KeyOption (B) — 2 only

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Frequently Asked Questions — UPSC Prelims 2022 Q72

What is the official answer for UPSC Prelims 2022 GS Paper I Question 72 (Indian Economy)?

The official UPSC answer key for this 2022 Indian Economy (Industry & Infrastructure) question is Option (B): "2 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2022 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Industry & Infrastructure". You can explore all repeated questions from Industry & Infrastructure 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 Industry & Infrastructure UPSC Prelims question using option elimination?

India strictly forbids FDIfunded platforms from adopting an inventoryled model (selling directly), preserving the space for domestic retailers/MSMEs.

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