List I List II Nature of Business Activity FDI Permitted under Automatic Route A. Trading in Transferable Development Rights (TDR) I. 49% B. Multi-Brand Retail Trading II. Prohibited C. Satellite (Establishment and Operations) III. 51% D. Petroleum Refining (by PSUs) IV. 100%
Chose the correct answer from the option given below:
FDI in Trading Transferable Development Rights (TDR)
Foreign Direct Investment (FDI) in the trading of Transferable Development Rights (TDR) is generally Prohibited under Indian regulations.
Correct Match: A - II
FDI in Multi-Brand Retail Trading
Multi-Brand Retail Trading allows Foreign Direct Investment (FDI) up to 51%. This is typically permitted under the government approval route, not the fully automatic route.
Correct Match: B - III
FDI in Satellite Establishment and Operations
Establishing and operating satellites is an area where Foreign Direct Investment (FDI) is permitted up to 100% via the automatic route, subject to specific licensing and security conditions.
Correct Match: C - IV
FDI in Petroleum Refining (by PSUs)
For Petroleum Refining activities specifically undertaken by Public Sector Undertakings (PSUs), Foreign Direct Investment (FDI) is permitted up to 49% through the automatic route.
Correct Match: D - I
FDI Activity Matching Summary
| Activity (List I) | FDI Limit (List II) |
| A. Trading in TDR | II. Prohibited |
| B. Multi-Brand Retail Trading | III. 51% |
| C. Satellite (Establishment & Operations) | IV. 100% |
| D. Petroleum Refining (by PSUs) | I. 49% |
Important Questions from Business Environment and International Business
G20 Summit (2023) Proposed which Economic corridor including shipping and rail lines?
- According to eclectic theory of foreign direct investment, foreign direct investment will occur under which of the following conditions when they are to be uniquely combined?
A. Ownership
B. Location
C. Market power
D. Internationalization
E. Vertical integration
Choose the most appropriate answer from the options given below : Which statement best captures the difference between FDI and FPI ?
- Match List - I with List - II.Choose the correct answer from the options given below:
List - I List - II A. Greenfield Investment I. Direct Investment overseas aimed to sell the output of a firm's domestic production process B. Foreign Portfolio Investment II. Overseas investment to acquire existing facilities C. Forward Vertical FDI III. Overseas investment to create new facilities from the ground up D. Brownfield Investment IV. Investment in foreign financial instruments such as foreign stock, government bonds etc. - A possible cost of FDI to the host country is:
