Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — Both 1 and 2
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is correct: When the Indian government opened the tea plantation sector up to 100% FDI in 2001-02, it stipulated that the foreign entity must divest 33% of its equity to an Indian partner within four years.
- Statement 2 is correct: In 2002, the government allowed 26% FDI in print media dealing with news and current affairs, with the prerequisite that the single largest Indian shareholder must hold a stake greater than 26% to preserve domestic management control.
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