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Question No. 440Interactive Test Mode
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Q440. 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 the 100% FDI allowed by India in the tea sector the foreign firm would have to disinvest 33% of the equity in favour of an Indian partner within four years 2. Regarding the FDI in print media in India, the single largest Indian shareholders should have a holding higher than 26% Which of these statements is/are correct?

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 the 100% FDI allowed by India in the tea sector the foreign firm would have to disinvest 33% of the equity in favour of an Indian partner within four years
  2. Regarding the FDI in print media in India, the single largest Indian shareholders should have a holding higher than 26% Which of these statements is/are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2003 • General Knowledge (1995-2010)

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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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2003 (Q440)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicGeneral Knowledge (1995-2010) → Miscellaneous
Official Answer KeyOption (C) — Both 1 and 2

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Frequently Asked Questions — UPSC Prelims 2003 Q440

What is the official answer for UPSC Prelims 2003 GS Paper I Question 440 (General Knowledge (1995-2010))?

The official UPSC answer key for this 2003 General Knowledge (1995-2010) (Miscellaneous) question is Option (C): "Both 1 and 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2003 question belong to?

This question belongs to GS Paper I under the subject "General Knowledge (1995-2010)" and micro-topic "Miscellaneous". You can explore all repeated questions from Miscellaneous 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 Miscellaneous UPSC Prelims question using option elimination?

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

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