question_answer

Which sector has received maximum FDI during 2014 -15?

A)  Service

B)  Telecommunication

C)  Computer software and hardware

D)  Infrastructure

Correct Answer: A

Solution :

[a] Despite the government's efforts to increase investments in the manufacturing sector to boost its growth, services sector still continues to attract most, foreign direct investment (FDI). Out of the total FDI inflows of 31 billion received during April-March 2014-15, the services sector accounted for almost 17 per cent of the cumulative inflows. During April-March 2014-2015, the services sector received foreign capital to the tune3.25 billion compared to 2.22 billion in the corresponding period of 2013-2014, according to data by the Department of Industrial Policy and Promotion (DIPP) under ministry of commerce and industry. The services sector consists of financial, banking, insurance, non-financial/business, outsourcing, R&D, courier, technology testing and analysis. The services sector was followed by construction development, telecommunications, computer software and hardware and drugs and pharmaceuticals. The ranking is done in terms of the share of these sectors in the country's total FDI. Sectors such as telecommunications, automobile industry and computer software and hardware received FDI worth of 2.89 billion, 2.57 billion and 2.20 billion respectively.