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With reference to Government of India’s decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements

With reference to Government of India’s decisions regarding Foreign Direct Investment (FDI) during the year 2001-02, consider the following statements:
1. Out of the 100% FDI allowed by India in a 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 shareholder should have a holding higher than 26%.
Which of these statements is/are correct?

(a)

Only 1

(b)

Only 2

(c)

Both 1 and 2

(d)

Neither 1 nor 2

Answer:

(c)

Moderate

Explanation

Both statements about FDI in the tea sector and print media are correct. Hence, (c) is correct.